1 © Nokia Siemens Networks R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: Customer confidential Liquid Radio – making waves in the future of communications Orlin Nedialkov April 2012, Sofia

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 2 © Nokia Siemens Networks Customer confidential How to offer the network capacity efficiently for the big regular moves? Summer Spring, Autumn, Winter

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 3 © Nokia Siemens Networks Customer confidential How to bring capacity to the places where heavy user are? Voice and basic data Suburban, rural, small city Hot spots Business district, airport

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 4 © Nokia Siemens Networks Customer confidential Nokia Siemens Networks answer - Liquid Net: unleashing the broadband opportunities of existing networks What Unleashes frozen network capacity into a reservoir of resources that can flow to fulfill unpredictable demand Why Higher network utilization: Up to 65% capacity gain in radio cells Lower operating costs: Up to 15% core network savings through automation Superior customer experience: Streaming optimization can halve video standstills Business potential: Increase revenues by up to 10% with temporary broadband upgrade How Self-aware and self-adapting Software-defined applications on multi-purpose hardware Inter-linked architecture Evolutionary

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 5 © Nokia Siemens Networks Customer confidential Win new revenue Leverage technology advances Location and context The business context: four broadband challenges in an increasingly dynamic world How to deliver a compelling and profitable customer experience? Time Revenue Hardware Software Hardware Unpredictable data growth Time Data volume

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 6 © Nokia Siemens Networks Customer confidential Demand is unpredictable Sudden peaks Users Content Core Radio Up to 80% idle capacityUp to 50% idle capacity Different times, various locations Time12am City Suburbs Residential

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 7 © Nokia Siemens Networks Customer confidential Liquid content and traffic management for superior customer experience and new revenues Liquid Net comprises solution components in all network domains Liquid Net Liquid Core Core Virtualization SON for Core Liquid Transport Flexible Optics IP Transport Integration Intelligent Control Liquid Radio Baseband Pooling Single RAN Flexi MR Antenna Unified and SON-enabled HetNet Intelligent Broadband Management Integrated QoS and Content Delivery Network Liquid resource allocation for flexibility and enhanced efficiency

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 8 Copyright © Nokia Siemens Networks 2012 Customer Confidential Liquid Radio - The solution

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 9 © Nokia Siemens Networks Customer confidential Liquid Radio: Redefining base station-based architecture Liquid RadioConventional Radio Fragmented radio access One size fits all architecture Static cells Coordinating macro and small cell layers Flexible sharing of resources Automated multi-radio beam forming Unified and SON- enabled HetNet Baseband Pooling Single RAN Active Antenna System

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 10 © Nokia Siemens Networks Customer confidential Excess Bandwidth Demand in 20 Km² business or downtown area (GB/hour/Km²) over average bandwidth demand Liquid Radio: Demand is like a wave in modern networks Hotspot demand is rapidly outpacing the ability to add capacity Network coverage Capacity demand at a given time Busy hour Source: iGR, 2012

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 11 © Nokia Siemens Networks Customer confidential Liquid Radio: Key elements and whats new Unified and SON-enabled Heterogeneous Networks Small cells strategy SON for small cells SON for HetNet Baseband pooling Small Cells Baseband pool Flexi Zone: new small cell architecture Macro Cells Single RAN - Active Antenna Systems SON for AAS: automated beam forming for dynamic cells based on time of day or demand Cell 1 Cell 2

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 12 © Nokia Siemens Networks Customer confidential Active Antenna with beam forming Active Antenna System Automation Liquid Radio: World-first vertical sectorization Flexi Multiradio Antenna System Vertical beam steering for best user experience Lowest TCO – 35% saving 65% more capacity 30% more coverage at same time Compact, power efficient, easy to deploy Radio cells defined by software (on/off)

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 13 © Nokia Siemens Networks Customer confidential Liquid Radio: Baseband Pooling - static capacity becomes fluid and adaptive The challenges... The ebb and flow of demand leaves capacity stranded in conventionally dimensioned networks 2G, 3G, LTE and LTE-A coexist in the same sites Introducing small cells addresses just one aspect of congestion – fronthaul, backhaul and core need to be considered too Signal quality does not equal throughput and thus QoS/QoE LTE HSPA+ GSM LTE-A

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 14 © Nokia Siemens Networks Customer confidential FronthaulRadio Baseband Liquid Radio: Going fluid from todays architecture Onsite and off-site baseband pooling CentralizedRAN DistributedRAN BB RF Short distance Long distance BB RF BB Multiradio and software defined hardware platform Small Cells: Flexi Zone Macro Cell: Proof of Concept Base station A baseband pool for each base station, with baseband shared across sectors and radio technologies A baseband pool serves several connected baseband units that dynamically serve several remote RRUs

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 15 © Nokia Siemens Networks Customer confidential Liquid Radio: Unified and SON-enabled Heterogeneous Networks The challenges... High complexity Multi-RAT, multi-layer, multi-vendor Thousand of multiple variables Increasing level of expertise required by systems demands more human interaction Introduction of smaller cells into already complex network environment Capacity in the right technology layer Challenging interoperability

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 16 © Nokia Siemens Networks Customer confidential Small Cells Liquid Radio: Unique 360 degrees strategy and portfolio SON for Radio SON for Core SON Small cells volume Macro Base Station Macro Modernize, upgrade, refarm and squeeze spectrum AAS Enhance coverage In-building Rural Capacity offload Hot Zone Hotspot

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 17 © Nokia Siemens Networks Customer confidential Liquid Radio: A complete and unified portfolio Flexi Lite BTS Micro / pico Full capacity Small outline Flexi BTS Macro Proven Cost-effective Flexi Zone Pico cluster Innovative Flexible 3G Femto Femtocell Fully standardized Fully scalable In-building Solutions Mature products Expert services Managed services – Consulting services SWLANC Wi-Fi Offload Seamless integration Capacity relief Packet CoreBackhaulOSS / SON

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 18 © Nokia Siemens Networks Customer confidential Liquid Radio: GSM Software Suite Making network resources fluid for multiradio re-farming Capacity demand is like a wave in radio networks GSM HSPA / LTE Add more RF units, split BTS sites, create micro layers HW More bandwidth for 3G HSPA / LTE One more carrier for GSM with limited spectrum More RF power for 3G HSPA / LTE SW Activate Liquid Radio GSM Software Suite GSM Software suite Liquid Radio GSM Software Suite features: Flexible MCPA Tx power pooling Orthogonal Sub-channel (OSC) Smart Resource Adaptation (SRA) Dynamic Frequency and Channel Allocation (DFCA) Precise Paging (PP) Key financial benefits: 20% lower Total Cost of Ownership (TCO) 30% more GSM spectrum can be allocated to 3G HSPA/LTE Key operational benefits Same GSM service in reduced spectrum Fluidity of multi-radio resources Doubled 3G HSPA/LTE data throughput with less hardware Easier spectrum re-farming to 3G HSPA/LTE

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 19 Copyright © Nokia Siemens Networks 2012 Customer Confidential Liquid Core - The solution

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 20 Copyright © Nokia Siemens Networks 2012 Customer Confidential Liquid Core: The two pillars Legacy hardware COTS ATCA hardware Other multi-purpose hardware Core applications Resources balanced as traffic needs change Extreme hardware efficiency Extreme flexibility Balanced traffic and services loading: Highest core investment utilization Reduced operational costs Improved service stability Core Virtualization Any core software application on: COTS ATCA Ultimately, other generic multi- purpose hardware SON for Core Automated network management: Flexible resource allocation for different core applications Traffic distribution across multiple instances of the same core application Automation Virtualization layer

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 21 Copyright © Nokia Siemens Networks 2012 Customer Confidential Same hardware for all core applications One application software for legacy, COTS ATCA and ultimately other multi-purpose generic hardware Flexible capacity adaptation to meet traffic needs Less hardware – reduced investment, lower implementation costs Liquid Core: Core Virtualization - multiple applications on multi- purpose hardware

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 22 Copyright © Nokia Siemens Networks 2012 Customer Confidential SON for Core self-optimizes and self-configures core networks key operational processes, e.g. by automated traffic load balancing optimized transport capacity distribution SON for Core evolves to automated management for allocating resources from a virtualized core to different core applications SON for Core self-optimizes and self-configures core networks key operational processes, e.g. by automated traffic load balancing optimized transport capacity distribution SON for Core evolves to automated management for allocating resources from a virtualized core to different core applications Proactively detect, analyze and react to changes in traffic demand and network conditions Prevents bottlenecks and traffic loss Highest utilization of investments Higher operational efficiency Improved network stability Liquid Core: Intelligent SON network management automation expands to core SON for Core Flexi NS Flexi NG PCS500 MGW MSS

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 23 Copyright © Nokia Siemens Networks 2012 Customer Confidential Liquid Core: Clear and substantial benefits 50% lower service introduction costs Up to 80% smaller footprint Up to 65% lower energy costs From 2G and 3G data to LTE, re-use 100% of hardware investments (re- use GGSN/SGSN hardware) From CS voice to VoLTE, re-use all open MSS hardware to reduce new investments by 50% Up to 75% lower site costs

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 24 Copyright © Nokia Siemens Networks 2012 Customer Confidential Liquid Transport - The solution

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 25 Copyright © Nokia Siemens Networks 2012 Customer Confidential Intelligent Broadband Management Minimized latency e2e QoS support Liquid Transport: A world of requirements on transport Liquid Core High capacity, high availability backbone Flexible capacity Liquid Radio High capacity connectivity to every base station Fast shifting of capacity How to make transport liquid? What would it have to do?

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 26 Copyright © Nokia Siemens Networks 2012 Customer Confidential Flexible Optics Zero-constraint optical networking Liquid Transport: Intelligent flow of traffic across network layers Transport control Intelligent control Perfect connectivity services Optimized service setup (MPLS & GMPLS, PCE) End-to-end Quality of Service and SLA assurance End-to-end IP partner integration Multi-Layer Integration Multi-Layer Optimization Software-configurable bandwidth and reach Flexible switching: Colorless - directionless - contentionless - gridless Next Generation Optical Access Sub-Lambda grooming and switching: OTN and MPLS-TP IP Optics IP Transport Integration Multi-dimensional network integration

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 27 Copyright © Nokia Siemens Networks 2012 Customer Confidential Flexible Optics Zero-constraint optical networking Cost effective packet transport and quick service provisioning Software definable bandwidth from 1G to 100G+ Flexible optical and electronic switching Multi-reach from access to longhaul Software defined, multi-purpose hardware Inter-linked Evolutionary Liquid Transport: Flexible Optics

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 28 Copyright © Nokia Siemens Networks 2012 Customer Confidential IP Transport Integration Multi-dimensional network integration Minimized risk Improved scalability Optimized user experience Maximum efficiency Multi-Layer Optimization Multi-layer integration IP Integration Software defined, multi-purpose hardware Inter-linked Evolutionary Self-aware Self-adapting Liquid Transport: IP Transport Integration

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 29 Copyright © Nokia Siemens Networks 2012 Customer Confidential Intelligent Control Perfect connectivity services Reduced TCO Assured customer experience On-demand capacity Service availability in seconds End-to-end service quality assurance Service creation and modification Software defined Evolutionary Self-aware Self-adapting Liquid Transport: Intelligent Control

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 30 Copyright © Nokia Siemens Networks 2012 Customer Confidential Total Expertise CEM 2.0 With Liquid Net we innovate todays network to meet the forthcoming broadband wave Unleash frozen network capacity Fluidly adapt to meet unpredictable broadband demand Enhanced network capital and operational efficiency Superior customer experience and new revenues Liquid Net

R 255 G 204 B 0 R 255 G 130 B 0 R 127 G 16 B 162 R 163 G 166 B 173 R 104 G 113 B 122 R 234 G 234 B 234 R 170 G 15 B 30 R 0 G 0 B 0 R 255 G 255 B 255 Supporting colors: R 60 G 170 B 0 Primary colors: 31 © Nokia Siemens Networks Customer confidential Thank you