September, 2012 Broadband development: benefits for economy and society Ulf pehrsson, vice president 11 September, 2012 Ericsson | September, 2012 | Page 1 Ericsson in Ukraine 1876 – Ericsson founded 1893 – First telephone switch to Kyiv 1995 – Representative Office in Kyiv 1996 – Supply of GSM network to Kyivstar 2002 – First to demonstrate live 3G in Ukraine 2004 – First to demonstrate live EDGE in Ukraine 2012 – More than 200 employees Approx. 50% of mobile calls in Ukraine are connected via Ericsson equipment Ericsson | September, 2012 | Page 2 Ericsson 1 September, 2012 Subscriber growth Ericsson | September, 2012 | Page 3 Mobile subscriptions 2008-2017 M2M to be added on top Harmonized spectrum is one key mass market enabler Ericsson | September, 2012 | Page 4 Ericsson 2 September, 2012 MBB Subscriptions M2M subscriptions not included Ericsson | September, 2012 | Page 5 Strong growth in mobile broadband M2M traffic to be added on top Source: Internal Ericsson Definitions: see note pages. DVB-H, Mobile WiMax, M2M and WiFi traffic not included This slide contains forward looking statements Ericsson | September, 2012 | Page 6 Ericsson 3 September, 2012 Towards the networked society 50 b. 5 b. 1 b. Ericsson | September, 2012 | Page 7 The networked society The Networked Society is a vision of the future, when anything that benefits from being connected will be connected. Hans Vestberg Ericsson | September, 2012 | Page 8 Ericsson 4 September, 2012 Technologies for The networked society + + Mobility Service aware Cloud Broadband Network Ericsson | September, 2012 | Page 9 Harmonized spectrum and technology standards Harmonized spectrum is key for development of public mobile broadband access as well as for industry to be able to successfully respond to national policy goals by providing standardized products economy of scale › Cross-border operation (between countries) › Global roaming capabilities › Interoperability choice and convenience harmonized spectrum › Easy cross-border coordination spectrum efficiency › Economy of scale (based on a mass market) › Efficient use of spectrum (also in border areas) standards Providing affordable services to all Ericsson | September, 2012 | Page 10 Ericsson 5 September, 2012 Impact on performance › 78% work more efficiently since they got Mobile Broadband › 45% managed to get more business opportunities or have been able to get jobs they could not get previously › 66% become more productive since they got mobile broadband Mobile Broadband boosts personal efficiency and has major impact on productivity Ericsson | September, 2012 | Page 11 Summary of broadband benefits +1000 bb users => +80 jobs +10 % points bb => +1% GDP + 2 x bb speed => + 0.3 % gdp Ericsson | September, 2012 | Page 12 Ericsson 6 September, 2012 Broadband benefits society Individuals, businesses, & governments INDUSTRIAL GROWTH SUSTAINABLE SOCIETY ENTERTAINMENT GOVERNMENT EFFICIENCY SOCIAL SECURITY AND SAFETY PERSONAL EFFICIENCY NEW BUSINESS OPPORTUNITIES Ericsson | September, 2012 | Page 13 Ericsson 7