Coverage Solutions IBS Copyright Ericsson AB 2005 All

In-Building in the News © Copyright Ericsson AB 2005. All rights reserved 2

Drivers of In-Building Deployments § End-users expect wireless service indoors – 40 to 70% calls placed In-Building – “X-Files” Effect § Capture more traffic – Increase ARPU – Value Added Services § Better network performance – High Data Rates – Essential for 3 G – Free up macro capacity § New revenue streams – Data services for GPRS/EDGE and CDMA/WCDMA © Copyright Ericsson AB 2005. All rights reserved 3

Obstacles of In-Building Deployments (Carrier Perspective) § Calculating Cost/Benefit – Bucket of voice and data minutes – “New adds” drives business case – Who pays? § Coverage – Some coverage from outdoor system § Control – Exclusive access – Customers want lower communication costs (like landline pricing) but also want a equal access system (neutral host) © Copyright Ericsson AB 2005. All rights reserved 4

Why are In-Building Solutions so Important? (Industry View) While in-building coverage has played a far more limited role in this drive to improve service quality in years past, the increased emphasis on data services in next generation networks, as well as renewed focus on the lucrative enterprise market, is forcing wireless carriers to reassess this market. ABI Research, In-Building Wireless Systems 2004 Signals Ahead , April, 2005 According to a study of 16, 800 wireless users released in July 2003 by J. D. Power and Associates, 40 percent of wireless calls are placed indoors. Of these, 48 percent are conducted at home, 21 percent at work and 31 percent inside other structures , such as a shopping mall. The same study finds that the dropped or disconnected calls are the biggest bugbear for 32 percent of users, with static or interference a close second with 29 percent nuisance rating. Unstrung Insider, February 2004 © Copyright Ericsson AB 2005. All rights reserved 5

Why are In-Building Solutions so Important? (Ericsson’s View) In a UMTS network…the addition of in-building systems has the potential to increase network capacity up to 400 percent. Moreover, cost per subscriber, including the cost of the in-building system, can be reduced 67% In GSM: Capacity is power independent In WCDMA: Power is Capacity !!! • Coverage depend on RF • Coverage/capacity interdependent in the downlink power, sensitivity and C/I • Indoor users consume • Capacity determined by more of the resources* number of channels used © Copyright Ericsson AB 2005. All rights reserved Traffic per cell (Erlang) Significant new traffic In-Building cell traffic Macro cell traffic Launch of in-building cell Time Experience shows that an investment in Ericsson Inbuilding Solutions usually pays for itself within 12 to 24 months. For a wireless office solution, the payback time can be as short as a few months 6

UMTS Case Study © Copyright Ericsson AB 2004. All rights reserved First Quarter Report

Typical Macro Coverage Layer § Each Operator has their own antenna systems at or above rooftop level § Good outdoor and in-vehicle coverage § Coverage into building not guaranteed § Macro sites difficult to acquire in historic centers or in environmentally sensitive areas § Minimum one base station per site § Typical cell range : 1 – 10 km (0. 6 to 6 miles) © Copyright Ericsson AB 2005. All rights reserved 8

Indoor coverage probability from macro network HSDPA (5 codes+16 QAM) Site to site: 800 m Pr { DL>1 Mbps/sub } Low load Pr { DL>384 kbps/sub } Low load 99, 5% 83% 45 x 45 m 92% 69% 60 x 120 m © Copyright Ericsson AB 2005. All rights reserved 9

Indoor coverage probability from macro network HSDPA (5 codes+16 QAM) Site to site: 800 m Pr { DL>384 kbps/sub } High load Pr { DL>384 kbps/sub } Low load 99, 5% 93% 45 x 45 m 92% 85% 60 x 120 m © Copyright Ericsson AB 2005. All rights reserved 10

Indoor WCDMA coverage macro network Summary • Even with site-to-site distances of 800 m in the macro network, WCDMA uplink coverage will not be complete in larger buildings • Even at low loads and close site-to-site distances, it will be difficult to guarantee good coverage for high bit-rate services (> 1 Mbps) on the downlink, especially in larger buildings • At high loads, it will be difficult to guarantee good coverage even at moderate bit-rates (> 384 kbps), especially in larger buildings. © Copyright Ericsson AB 2005. All rights reserved 11

In-Building Market © Copyright Ericsson AB 2004. All rights reserved First Quarter Report April

Target In-Building Venues § Most In-Building Installations target the following venues: – – Airports and Subways Shopping Malls Hospitals Enterprises § Can be Single Operator or Multi. Carrier Systems § Owner participationship varies (case by case) § Many venues require a converged system (Cellular Voice and 802. x technology) © Copyright Ericsson AB 2005. All rights reserved 13

In-Building Solution Types Active DAS RBS Fiber cable REMOTE UNIT Passive DAS TX/R Level

In-Building Solution Types Passive DAS Active DAS § § § No power supply required Can cover up to large buildings Excellent reliability No integrated alarm and supervision Capacity independent § Full band § § (RF power provided by RBS/Repeater) © Copyright Ericsson AB 2005. All rights reserved § § § Active components Power supply required Integrated alarm and supervision function Band limited Ideal for large buildings or campuses Coverage dependent on capacity Can be used with low power RF source Flexible to expand coverage 15

In-Building Solutions –Supplier Landscape Products Services Mars Kathrein Inner. Wireless Mac. Tech LGC Wireless LCC Andrew ADC EMS BCI Northstar In. Code Goodman WFI Mobile Access Powerwave Base Station/Repeaters Product and Service Vendors Nokia Inner. Wireless Andrew Lucent Siemens ip. access JCI Radio. Frame Spotwave Nortel © Copyright Ericsson AB 2004. All rights reserved First Quarter Report April 2004

Current and Projected Deployment Costs Source: ABI Research, In-Building Wireless Systems 2004 © Copyright

Current and Projected Deployments Source: ABI Research, In-Building Wireless Systems 2004 © Copyright Ericsson

Product Portfolio Overview © Copyright Ericsson AB 2004. All rights reserved First Quarter Report

Ericsson IBS Philosophy § Every building is unique § A broad and flexible portfolio gives most cost effective solution § From a mobile network perspective, the in-building site is just another site § One product or solution does not fit all building types © Copyright Ericsson AB 2005. All rights reserved 20

Solution Offering Overview § Antenna Systems - Passive coaxial - Fiber optical - Radiating cable - Hybrid Solution § Radio Base Stations - IP Backhaul Transmission - main/Remote Units § WLAN and DAS integration § Multi-Operator combining box § Enterprise solutions - Network based - PBX based § A complete service portfolio § Training © Copyright Ericsson AB 2005. All rights reserved 21

Passive Coaxial Cable DAS Solution 0 Splitters/Tappers Antennas Coaxial cables RBS/BDA Combining Box The RF signal from the base station/BDA is distributed throughout the system © Copyright Ericsson AB 2005. All rights reserved 22

Passive Distributed Antenna System § Supports all wireless bands from 800 MHz to 2500 MHz § Excellent reliability § Cost efficient § 380 MHz support in roadmap – Public safety § Supports up to large buildings © Copyright Ericsson AB 2005. All rights reserved 23

Active Fiber Cable DAS Solution Remote Unit Fiber Remote Unit Master Unit Local Interface Passive system RBS/BDA RF signals from the RBS/BDA are converted to an optical signal and transported to the Remote Units. The Remote Unit converts the signal back to RF that are distributed via a small coaxial system. © Copyright Ericsson AB 2005. All rights reserved 24

Fiber Optic Distributed Antenna System § Available for all cellular bands from 800 MHz to 2500 MHz § Single-, Dual- and Triple-band versions § Varying output power for optimized performance/cost § Interconnect link for remote local interface § Combines with passive distribution § Outdoor versions © Copyright Ericsson AB 2005. All rights reserved 25

Business Case Considerations © Copyright Ericsson AB 2004. All rights reserved First Quarter Report

Example of In-Building Solution Impact Shopping mall (I) New traffic portion: 78% Building characteristics • 4 -storey building 25 20 • 35 antennas • RBS 2202 Areas covered: Erlang System characteristics 15 10 5 0 Time • Basement car park • Ground floor • 1 st to 3 rd floor © Copyright Ericsson AB 2005. All rights reserved Total traffic Indoor cell Macro cells 27

Example Traffic and Revenue § For Operator’s using fixed tariffing (”bucket of minutes”), increased traffic is not a business concern unless – There is substantial roaming traffic (national/international) § Most Revenue calculations based on ”New Adds” but should also include Value Added Services Impact, Churn and Performance improvements © Copyright Ericsson AB 2005. All rights reserved 28

Example CAPEX and OPEX Many different financial arrangements can be used to lower or

Example Return of Investment Based on a long MTBF rate (min of 20 years), most installed DAS systems will provide reliable service well beyond the initial investment period. Furthermore, since DAS systems are technology transparency, little or no cost is required to upgrade for new technologies © Copyright Ericsson AB 2005. All rights reserved 30

Solution Portfolio Overview © Copyright Ericsson AB 2004. All rights reserved First Quarter Report

In-Building Services portfolio § § § Project Management RF design Implementation engineering Installation Integration and verification Acceptance testing Optimization Operation and maintenance Business Consulting Customized services Engineering documentation Training © Copyright Ericsson AB 2005. All rights reserved 32

Business Support © Copyright Ericsson AB 2005. All rights reserved 33

In-Building Implementation Process 1. Input Data 5. Implementation 7. Acceptance Test 6. Integration and Commissioning 2. Preliminary Design 3. Site survey and test measurements © Copyright Ericsson AB 2005. All rights reserved 4. Design proposal 34

In-Building Tools © Copyright Ericsson AB 2004. All rights reserved First Quarter Report April

IBS Tools Ericsson IBS tools help delivery projects efficiently with high quality TEMS Pocket TEMS Transmitter TEMS Light TEMS Pocket TEMS Transmitter Case © Copyright Ericsson AB 2005. All rights reserved TEMS Transmitter TEMS Light 36

Process Efficiency Approach. Quotation Tool © Copyright Ericsson AB 2005. All rights reserved 37

In-Building Reference Project © Copyright Ericsson AB 2004. All rights reserved First Quarter Report

Taipei Financial Center, Taiwan § World Tallest Building (508 m/1667 ft) § 101 floors above ground, 5 below ground § Shopping area from B 1 to 6 floor open to public in November 2003 § Tower block from 7 floor to 90 floor mainly offices for banking and trading § Observatory point at 101 floor, open to public on 1 st January 2005 § All floors to be in operation by Mid 2005 § World fastest lifts, 1008 m/3307 ft per minute World tallest building © Copyright Ericsson AB 2005. All rights reserved 39

Solution overview • Total of 8 Cells - 4 passive - 4 active • Passive solution - Ericsson Tripleband combining box - A Bandpass filter for each GSM 900 RBS preventing interference from the CDMA 800 Tx. - A 10 MHz guardband between the CDMA 800 and the GSM 900 • Active solution -CDMA 800/GSM 900/ GSM 1800/ WCDMA • Lift coverage - Remote units installed above the lift car © Copyright Ericsson AB 2005. All rights reserved 40

Taipei Financial Center in numbers • Coverage area 4 Million ft 2 • Total coaxial cable length: 164, 040 ft • Total optical fiber cable: 65, 616 ft (using Ericsson Ribbonet solution) • Number of omni-directional antenna: 800 • Number of directional antenna: 400 • Tripleband Remote Units: 184 • CDMA 800 Remote Units: 123 © Copyright Ericsson AB 2005. All rights reserved 41