1. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Sizer – Future Innovation - February 2013 Page 1 Context Aware Resource Allocation Use of Context Information to improve the quality of Experience for consumers through intelligent traffic management. Context: Is application in foreground or background? Result: Support up to 60% more Smartphones than classic LTE schedulers Result: Reduces capacity loss by a factor of 2 due to dropped videos Context: User mobility, cellular coverage, and video parameters. A C B LTE Baseline CARA AC B

2. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Sizer – Future Innovation - February 2013 Page 2 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Need for Neutral Host A majority of broadband wireless usage is indoors in homes, enterprises, or shared public spaces. In enterprises and shared public spaces, a neutral host solution is essential. Use of unlicensed solutions are viable, if they can meet user expectations of quality. New innovations are required to create licensed band solutions.

3. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Sizer – Future Innovation - February 2013 Page 3 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 100Mbps to every residence and small cell AP Support different deployment scenarios (consolidated or distributed) Unbundling of providers and services Multi-media and cloud enablement Low cost (and low power if it helps low cost) XG-PON ONU P2P Eth. Neighborhood/ Basement GPON ONU ALU FWL G.fast CPE copper ALU WiFi 50-100 meters fiber wireless >100 Mbps sustained >1 Gbps peak? G.fast DSLAM FWL P2MP EPOC ALU WiFi cable ALU lightRadi ALU lightRado Consolidated CO <20 km<40 (100) km Distributed CO XG-PON OLT Virtual Waveband Service for unbundling GPON OLT NG- PON2 MM Converged Backhaul/Connection

4. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Sizer – Future Innovation - February 2013 Page 4 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. The Access/Wireless Data Storm is placing significant challenges in access systems. New and novel approaches are needed to address the expectation of My Information, Anytime, Anywhere, with a high quality of experience. Full integration of all available technologies and all spectrum resources will be required. Significant challenges in deployment of the large number of small cells is driving innovation in backhaul and business models. Convergence of wireless and wireline access systems is required to provide cost effective solutions. SUMMARY