1 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

April 2011

COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

Alcatel-Lucent Unveils

Ground-breaking Mobile Technology

Promises Simpler, Lighter Networks Multi-Billion Euro Savings in Infrastructure and Power Costs Addresses Major Elements of Global Digital Divide

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THE INDUSTRY HAS MOBILE DATA MOMENTUM

SMARTPHONE DENSITY
32x increase per km2 by 2015

INTERNET OVER MOBILE

70% of mobile data by 2014

Source: Bell Labs analysis

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RESULTING IN MASSIVE TRAFFIC GROWTH

From a select urban study on bandwidth consumption Forecast consumption by device type
Worldwide Aggregate Mobile Traffic
Pbytes/month
7,000 6,000 5,000 4,000 3,000
iPhone Android Other Blackberry Air Card

30x growth over 5 years!

2,000 1,000 0 2010 2011 2012 2013 2014 2015

Feature phones Dongle/tablets Smartphones

80%-85% of packet switched calls

are originated from Smartphones

40% of 3G devices are Smartphones

Source: Alcatel-Lucent measurements using 9900 WNG within live networks and Bell Labs analysis
5 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

TRAFFIC GROWTH = BASE STATION GROWTH

Calculated Base Station Requirements in a Tier 1 City
2,500

Base stations required

2,000 1,500 1,000 500 0 2011

2012
Based on Downlink BW

2013
Based on Uplink BW

2014
Based on Erlangs

2015
Based on Signaling

More energy, more space, more maintenance

Source: Bell Labs synthesis of real network data with industry growth forecasts
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3 TECHNOLOGIES 5 BANDS WHATS NEXT?

City planners resist more antennas

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BASE STATION DESIGNS WILL NOT SUSTAIN DEMAND

ANTENNAS AND AMPLIFIERS

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Baseband Processing

A RADICAL NEW APPROACH IS NEEDED

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Single, Scalable, Agnostic

platform

offering Deployment Flexibility & Investment Protection New, Powerful , Wideband Antenna that antenna proliferation for the lowest cost per bit,
cleaner & mass market friendly , .

and a

reduces

That is greener, and up to 2x

the macro capacity

10 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

ALCATEL-LUCENT: GROUND-BREAKING MOBILE TECHNOLOGY

NEW ANTENNA AND RF ASSETS NEW BASEBAND PROCESSING ASSETS

Simpler, lighter... enabling cloud-like networks

11 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

THE FUTURE: MAKING ANTENNAS INVISIBLE

On a faade

On a pole

On a lamppost

In a bus stop

12 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

RADICALLY CHANGING NETWORK DESIGN

Today Tomorrow

Lighter sites
13 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

INTRODUCING A NEW PRODUCT FAMILY

lightRadio Wideband Active Array Antenna lightRadio Multiband Remote Radio Head lightRadio Metrocell lightRadio Baseband Processing lightRadio Controller Common management (5620 SAM)
Alcatel-Lucent light Radio Cube

Key Enablers
Bell Labs innovations in RF components Baseband system-on-a-chip (SoC) Bell Labs advanced CPRI compression Network MiMO/CoMP leadership End-to-end IP design and management

Multiband RRH

BBU SoC

Co-created with operators

14 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

WHY IS LIGHTRADIO DIFFERENT?

Todays RAN
Monolithic boxes and boards Dynamic components distributed in the network

Design
One for One Three in One
2G / 3G / 4G

Versatility

2G 3G 4G

Deployment

Conventional

Conventional or Cloud

15 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

WIDEBAND ACTIVE ARRAY ANTENNA CREATING INVISIBLE ANTENNAS - FIRST OF ITS KIND

3 bands

Radome

1st Use - Smart Network Antenna Panel (SNAP)

Multiband/technology
- Converged RAN compatible - Per band power management - Reduces # of antennas required/site

Higher reliability
- Loss of single element does not impact entire band (FRU)

Beam forming
- Reduces interference - Puts power where its needed

Reduced Site Costs, Better Coverage

16 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

MULTIBAND REMOTE RADIO HEAD COMPACT, GREEN

Industry-first Product Announcement
- Dual band supporting multiple technologies - Software Defined Radio-on-a-chip design - Fully compatible with Converged RAN
Dual Band Antenna

Same size and weight as todays single band RRH

- Less mass and wind loading

Multiband RRH

Technology Advancement
- Advanced RF circuit design
- Advanced digital pre-distortion algorithms - State of the art amplifiers
MB-RRH

Dual band RRH in a single band package

17 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

SMALL CELLS ADDING METRO CAPACITY

Outdoor Deployment
- 50mW to 500mW per element (8 elements panel) - Fully digital antenna beam forming (3GPP R8-R10 compatible) - Providing 60%-80% indoor coverage at 64 QAM (measured) - Many backhaul options (GPON, microwave, etc.)

Lowering the cost per bit

- Higher gain and lower transmitted power - High average spectral efficiency (4 to 6 bits/s/Hz)
18

Flexible and progressive RF coverage Adding capacity where its needed

COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

CONTROLLER BRINGING ALL CONTROL FUNCTIONS TOGETHER

Open platform
- Based on ATCAv2 - Can be ported to blade server

Applications are virtualized to conserve resources

- W-CDMA RNC - GSM BSC - Small Cells Gateway - Wi-Fi gateway

Highly scalable
- Add processing as-needed

19 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

BASEBAND PROCESSING INTEGRATED AND FULLY PROGRAMMABLE

Employs system-on-a-chip design
- SoC supports 2G, 3G and 4G processing
TM

Deployment Flexibility and Investment Protection

- Conventional, clustering, or pooling

Stepwise evolution toward pooling

- Step 1: clustering
- No BBUs at BTS site fewer truck rolls

1U Design

- Step 2: pooling
- load balancing saves up to 15% processing

- Step 3:Coordinated Multi-Site Processing

- Advanced features e.g. CoMP, ICIC
Up to 2x data capacity

High density BBU design

Multi-technology, agnostic platform with deployment flexibility

20 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

CENTRALIZED BASEBAND PROCESSING TRANSPORT BELL LABS INNOVATION CPRI COMPRESSION 3X

Point-to-Point fiber
One fiber per WB-AAA
40km

CPRI over Dark Fiber

CPRI over CWDM, PON

Point-to-Point wavelength
Compatible with CWDM/DWDM (as sub , typically up to eight WB-AAAs per fiber)

40km

Overlay of residential PON infrastructure

Making centralized baseband practical

21 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

END-TO-END VALUE PROPOSITION

Virtual BTS
Technology agnostic Active Antennas and MB-RRH RF in all bands 700-2600 MHz SoC-based BBU (2G/3G/LTE)
Wideband active antenna arrays with any baseband Conventional BBU IP IP

Flexible and scalable Different deployment options (conventional, clustered or pooled) Virtualization and processing aggregation

Metrocell All - in - one: Baseband integrated in radio head Macrocell IP IP mobile backhaul IP

IP

Virtual control
IP

Controllers

Ultra compact Near Zero footprint BTS New generation cabinets

Multi - band remote radio head with any baseband RF only sites

Wireless packet core

CPRI over fiber

Centralized baseband

Processing Optimization Virtualization of applications Standardization on open platforms Supporting multiple technologies and multiple topologies

Converged Service Aware Management

Convergence
Wireline and Wireless Network Convergence Integration with broadband Small Cells Integration with Optics (WDM, PON) and xDSL IP Convergence Consistent IP service quality and management between Wireless and Wireline

22 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

DRAMATIC IMPACT ON OPERATIONAL EXPENSES THE IMPACT OF POOLING AND CLUSTERING

66% 60% 51%

Site rental

Civil works

Power consumption Legacy Single RAN

lightRadio Product family

Source: Bell Labs analysis
23

COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

TOTAL COST OF OWNERSHIP CUT BY HALF

A natural evolution toward lowering the cost per bit
3G only 0% 2011 2012 2013 2014

25%

3G+
-22% -27% -27%

LTE introduced Small Cells and LTE combined

Small Cells introduced

-33%

50%
TCO reduction

-51%
lightRadio

Up to 55% savings in urban areas

Source: Based on Bell Labs analysis using Wireless Strategy Optimizer modeling 20 mil. urban pop. and traffic forecasts
24 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

ALCATEL-LUCENT SERVICES SUPPORT

STRATEGIC PLANNING CONSULTING KEY BENEFITS Quantify financial benefits of deploying new approach Define migration strategy from current 2G/3G networks KEY BENEFITS Advanced traffic monitoring and traffic forecast Radio planning, optimal baseband pooling Mobile backhaul strengthening (Compressed CPRI transport) KEY BENEFITS Seamless integration in common OAM solution Integration with added value applications and services KEY BENEFITS Build, Operate and Manage new RAN product family

E2E NETWORK DESIGN AND OPTIMIZATION

OSS/BSS INTEGRATION

MANAGED SERVICES

A complete service portfolio to ensure success

25 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

TIMELINE FOR DELIVERY

Virtual RAN
Telco in GPP & IT servers Controller Cloud

Complete Family
Multitechno lightRadio BBU (SoC) Dynamic BBU Pooling Additional AAA and Metrocell variants

First Commercial Products

Multitechno LightRadio Wideband AAA and Multiband RRH New Controller platform for 2G, 3G, Small Cells Common OAM

Foundation and Trials

Active Antenna trials with LightRadio Cube Metrocell trials UltraCompact LightRadio BBU

2011

2012

2013

2014

2015+

A step roadmap approach delivery every six months

26 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

INTERCEPT POINTS FOR MANY OPERATORS

Starting from 2G/3G Macro

Renovate and/or add 3G

Reduce OPEX via WB-AAA Add LTE

Reduce OPEX further with lightRadio BBU. Prepare for capacity increase and LTE-A

2G/3G

Converged RAN

Converged RAN + WB-AAA

Light Radio WB-AAA + BBU*

BBU clustering
WB-AAA extends coverage, increases # of bands Add Localized Capacity

LTEAdvanced >Rel10 2x macro capacity the cost/bit

Lower OPEX, Higher QOE

Common 2G / 3G & Small cells controller

Starting from Small Cells Offload or LTE Overlay

Small Cells (3G or LTE)

Small Cells LTE & 3G adding WB-AAA

WB-AAA extends to Macro LTE

Common BBU across Small Cells and Macro (unified maintenance, sparing, training

*Note: Single O&M (5620 SAM), SoC-based BBU, ATCAv2-based controller (macro/micro/small cells), and WB-AAA with 1800-260 0MHz capability
27 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

KEY TAKEAWAYS
Alcatel-Lucents lightRadio for converged 2G/3G/LTE Radio Networks
- Data Capacity will reach a limit in every network. lightRadio extends the life of the network through a flexible, graceful approach.

A new solution for wireless networks that evolves data capacity as need arises
- An evolution that solve todays problems and evolve to higher capacity at less cost:
- Products that reduce the number of items on the tower Wideband AAA and Multiband RRH - Baseband Deployment flexibility that includes Conventional, in the RF, or Centralized - Software Defined Baseband, simultaneously 3G & 4G on one card and be changed through SW - A path forward to 2x the capacity* at a lower cost/bit through Centralized Baseband approach

- Bell Labs Innovations

- lightRadio Cube, CPRI 3x Compression, Network MIMO, Baseband SOC Algorithm

A total solution including 2G, 3G, 4G, and Small Cells managed as one, and putting data capacity where its needed.

*compared to LTE, Rel8, 20 MHz, 2x2 Antenna Config

28 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

www.alcatel-lucent.com

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30 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

31 COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.