The 5G Network PlatformWorldwide Uptake and new Use Cases

Jan Soderstrom Ph.D.V.P. Head of Technology Office Silicon Valley

Ericsson Internal | 2018-02-21

Forecast highlights, Ericsson Mobility Report

1.9bn1.9 billion 5G subscriptions in 2024

Mobile subscription by technology (billion)Rapid uptake of 5G

Mobile subscriptions by region and technology (percent)Driven mainly by US and NE Asia, followed by Western Europe

Source: Ericsson Mobility Report June 2019

Ericsson Internal | 2018-02-21

Forecast for Internet of Things connections

Cellular IoT growing fast

Cellular IoT connections per region (billions)Ericsson Mobility Report June 2019 and Jan 2019

Source: Ericsson Mobility Report June 2019

Ericsson Internal | 2018-02-21

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5G (2018) LTE (2009)

5G subscription take-up is expected to be faster than 4G

1.9BIn 2024 , 5G subscriptions will have reached 1.9B subscriptions globally

Global subscriptions first years of deployment (million)

5G

4G

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2018 2024

Mobile subscriptions by technology

CDMA GSM/EDGE

WCDMA/HSPA LTE

5G

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2018 2019 2020 2021 2022 2023 2024

Mobile subscription growth (Million)

Mobile subscriptions

North America in Ericsson Mobility Report

104%Mobile subscription penetration

385 Million mobile subscriptions

(+2 Million in Q1)

Ericsson 5G Consumer Potential – US snapshot

0%

20%

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80%

100%

120%

Metropolitan areas

Inconsistency of 4G speeds

Every time Most of the times

Rather often Ocassionaly

Rarely Never

Can't say

0%

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60%

Need for 5G hot zones

5G hot zone need

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120%

US All

Consumer familiarity with 5G in the US

Very familiar Basic Knowledge

Just heard of Never heard of

Ericsson Internal | 2018-02-21

5G – Capacity Enhancement in 3 dimensions

Flexible and scalablelayer 1 design

Advanced antenna technologies

Energy efficiency and forward compatibility

Ultra-Lean design

Zzz

— Minimum amount of broadcasted transmissions— Enables usage of advanced (e.g. massive-MIMO)

antenna systems— Facilitates very dense deployments by reduced

“always-on” interference

— OFDM with flexible numerology— Filtering and shaping by digital

processing— Support for various spectrum

allocation schemes

— Beam-formed transmission— Massive MIMO / Multi-User MIMO— Distributed MIMOPerformance / capacity

Allocated spectrum

Number of sites

Allocatedspectrum

Spectralefficiency

Numberof sites

Capacitycube

Spectrum efficiency

Ericsson Internal | 2018-02-21

5G subscriber uptake, South Korea

271,686

784,215

1,911,705

2,500,000

30-Apr 30-May 30-Jun 30-Jul 21-Aug

SKT

KT

LGU+

Total

Source: Ministry of Science and IT Korea [Until July]2.5M as of 21th, Aug is from market estimation

5G Subscriber uptake

Samsung Galaxy S10 5G

— The first 5G smartphone

— Launched on April 3

— Samsung chip and 3GPP 15.3 based, 15.4 upgrade started on mid of May

— Price : 1,230USD(256GB), 1,371USD(512GB)

Samsung Galaxy Note 10

— Unpack on August 7th

— Commercial launch on August 23rd

— 6.3” 1,240 USD, 6.8” (256GB) 1,390 USD, 6.8” (512GB) 1,490 USD

LGE ThinQ V50 5G

— Qualcomm chip and 3GPP 15.4 based

— Launched on May 10

— Price : 1,056USD(128GB)

Aug 22. “SK becomes first telco to hit 1 million 5G subscribers, as uptake in Korea surges”“SK said that uptake for 5G services was currently twice as fast as it had experienced when it launched LTE services. Uptake is being driven primarily by online gaming and content streaming services, which are booming in Korea.”https://www.totaltele.com/503668/SK-becomes-first-telco-to-hit-1-million-5G-subscribers-as-uptake-in-Korea-surges

est.

Ericsson Internal | 2018-02-21

“5G promises (and delivers) much faster speeds”Source: 5G First Look South Korea, RootMetrics® by HIS Markit

— Measurements on Korean networks

— Device used:

— LG V50 ThinQ 5G

— Dates of testing:

— June 28 – July 6, 2019

— Peak data rates exceeding 600 Mbps in all networks

— Average data rates increased by 2.5 - 4.4 times

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Operator A Operator B Operator C

5G Peak 5G Median non 5G median

2.6x

4.4x

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Measured down link data rates

Ericsson Internal | 2018-02-21

South Korea- LTE vs. 5G Traffic

Source: Ministry of Science and IT Korea [July]

8,571 9,243 9,145 9,721

22,946

18,711

23,988 24,661

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Monthly Traffic volume per subscriber (Mbyte)

LTE 5GSKT ”5G Cluster”

KT FITT360

— https://5g.kt.com/display/olhsPlan.do?plnDispNo=1245

— 5G Wearable 360 camera

https://youtu.be/eZMTvxnnodE?list=PL_WCuvyChN3jvnHEmuxdisW1jznKIlFQM

SKT 5GX VR Pack Gear— https://www.tworld.co.kr/

poc/html/product/5gmkt_life_4.html?tab=2

Jan Soderstrom | A | 2019-05-16 | XR and cloud gaming over 5G – happening now | | Page 11

Consumer lab global survey on 5G use cases

“Advantages of 5G include improved speed, lower latency, increased capacity and greater flexibility. The question is, will consumers eventually pay for these?”

— Consumer Labs report on 5G https://www.ericsson.com/assets/local/trends-and-insights/consumer-insights/reports/5g-consumer-potential-report.pdf

Value creation with 5G - our focus areas

Enhanced Mobile Broadband

Fixed Wireless Access

$ 200-600 b Industrial digitalization

$ 950-1,100 bCapacity

cost per bitperformance

$ 50-100 bUnderserved home & SME

markets

Massive IoT

CriticalIoT

Broadband IoT

Industrial AutomationIoT

Cellular IOT

Ericsson Internal | 2018-02-21

Cellular IoT evolution and segments

Low cost devices, low energySmall data volumesMassive numbers

Industrial protocolsTime Sensitive NetworksPrecise indoor positioning

High throughputLow latencyLarge data volume

Ultra reliabilityUltra low latencyVery high availability

NB-IoT + Cat-M1 (LTE and NR) LTE + NR NR NR

Massive IoT

CriticalIoT

Broadband IoT

Industrial AutomationIoT

Commercial – Growth Early pilots & standardization

Asset management

Fleet Management

AutomotiveC-ITS

VR/AR

Drones/UAV Smart Grid Automation

Collaborative robotics

Traffic Safety& Control

Advanced Automation

& Control

SmartMetering

1 3 7 0

One network – multiple use cases and industries

Ericsson Internal | 2018-02-21

Our global architecture

Global sitesDevices / Local NW

National sitesDistributed sitesAccess sites

Transport

Management & Monetization

Applications

Cloud and data infrastructure

Sustainable Mobile Reliable & Resilient Secure Innovative

Access, Mobility, Network applications

Ericsson Internal | 2018-02-21

A connected innovation platform

Values for users

Function and characteristics

Predictable connectivity Global reachabilityScalable processing

Embedded intelligence Inherent security & privacy

Cost efficient

High efficient, multi purpose mobile radio access

Zero-touch management and orchestration

Virtualized core, distributed cloud and network slicing

Massive MIMO & Beamforming Artificial Intelligence & Machine learning

Hardware Root of Trust

Cloud nativeIntent driven

Performance orchestrationKey technologies

Addressed users

Ericsson Internal | 2018-02-21

Welcome to Ericsson D-Fifteen

https://www.ericsson.com/en/about-us/experience-centers/d-fifteen

Ericsson D-Fifteen - our new 5G-connected co-creation and innovation center in Santa Clara California. A home for creating ground-breaking design to deliver solutions

in real-time.

D-15 Labs - Our 5G Lab where ecosystem partners can co-create, design and test their consumer and industry

solutions on real 5G. Focused on 5G, Edge Compute, IoT and Network Slicing.

Let’s redefine the next generation of everything, together.

Commercial in confidence

Smart Phone Lab ~2010

Device enablement ~2013

D15 Labs 20195G for Industries ~2015

D15 Labs in Santa Clara – Built on a proven history Now co-creation on 5G

Research ~2008

4th

Industrial

Revolution

• Phone

manufacturers

• App developers

• Smart watches

• Smart speakers

• Non-SIM, eSIM,

WiFi devices

+ many more

• Industries

• Cloud players

• Start-ups

• Operators

• Device makers

• App Developers

• Universites

• ..

D15Labs, the 5G Network Platform lab environment inSanta Clara

Ericsson Internal | 2018-02-21

Ericsson Industry 4.0 engagements

SKF5G enabled manufacturing - Gothenburg ER- Manufacturing operations- Connected machine, Dots, 5G core, cloud services

ERICSSON MANUFACTURING

- Tallinn, supply

- Radio manufacturing

- VR/ AR tests

FIELDLAB CAMPIONE

- Rijen

- Condition based

maintenance

AMBRA & AGNICO EAGLE

Connected mine

- Dedicated industrial

network for mine

HONEYWELL &

GENERAL ELECTRIC

5GI2

- Santa Clara, USA

- 5G & edge computing

TELEFONOCA

Industry 4.o private NW

- Telefonica global address

industries with private networks

Ericsson manufacturing

- Nanjing, Supply

- Radio manufacturing

- Automation/ robotics

TELSTRA

Connected mine

- Telstra Australia

- Enabling small scale

network and capability

CHINA MOBILE

NB IoT and predictive

- Nanjing

- Connected screwdrivers

COMALI

Smart manufacturing

- Italy, ER

- 5G for Europe

- Lab testing

SCANIA

Smart Production lab

- Industry connect testing

- Ecosystem development

ÅF

Industry 4.0 transformation

- ÅF partnership to address

SME and SI for industry 4.0

AUDI

Connected Production

- 5G lab and cloud

- P-Labs in Gaimersheim robots

ABB

5G Industry 4.0 Lab

- Västerås ER

- Robot remote control

- Haptic feedback

Industrial Mobile

- Industrial 5G/ LTE

- Industrial IoT

- Precise localization

ERICSSON

5G Factory

- Kista, supply

- Test facility filter 5G

- Experience opportunity

KOI

Coordinated Industry

Communication

- Aachen ER

- Low latency and high reliability

CENTER CONNECTED INDUSTRYIndustry 4.0 Lab- Aachen - EV vehicles- Radio, core- 10,000 visitors per year

OSRAM

Campus network

- DT, Ericsson & Osram

- Connect AGVs with dedicated

networks

AUTOMOTIVE PRODUCTION

- eGo factory Germany being

connected with dedicated network

Ericsson Research Ericsson Supply Regional or Business area initiative

BOLIDEN

Industrial Mobile

- Industrial 5G/ LTE

- Industrial IoT

- Precise localization

Ericsson Internal | 2018-02-21

— Edge Compute 5G Gaming

— 5G VR with split rendering

— 5G Enterprise AR

— 5G Enterprise IT

— Smart watches, Speakers, Digital Assistants

— Cellular IOT and Smart logistics

— Cellular IOT and Oil & Gas

— Drones and UAVs - LTE & 5G

D-15 Labs project examples

D15 Contact form: https://www.ericsson.com/en/about-us/experience-centers/d-fifteen

Ericsson Internal | 2018-02-21

Ericsson 5G network deployments-publicly announced together with customers, September 2019

Fixed Wireless Access

Mobile Broadband

Initial use cases

First Smartphone -form factor deviceNR interoperability

All geographies Supporting all early 5G commercial networks

All main NR frequency bandsContracted for high bands, mid bands, low bands

Interoperability with all key device chipsets partners

Covering RAN, core, management & orchestration

25 publiclyannounced contracts

19 live networkson 4 continents

ElisaLive

Source: Ericsson and GSA