Research in Nokia Networks TKK T109 5410 Technology

Outline • Personal background & Research interests • Research in Nokia Networks • Strategy

Curriculum Vitae • Nokia Networks 1994 • Career path: • SW engineer SDL, C

4 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Innovation Process – a new view: Open Innovation 5 © 2005 Nokia TKK 1095410

Demand Curve (C. Shapiro & H. R. Varian, 1999) 6 © 2005 Nokia TKK

The Long Tail (C. Anderson, 2004) 7 © 2005 Nokia TKK 1095410 Nokia YRaivio

Links • Host Identity Protocol (HIP) – http: //www. ietf. org/html. charters/hip-charter. html •

Research in Nokia Networks 9 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006

Nokia structure Horizontal Groups Business Groups Customer and Market Operations Technology Platforms Mobile Phones

Networks organization as of 1 July 2006 North America Latin America APAC China CEMEA

Strategy & Technology mission Strategy & Technology’s mission is to add Nokia and customer

What do we do in Strategy & Technology? • Run NET-wide strategies & strategy

Research roles NRC S&T NET BUs • Time to market, Long Short • Technology

Network Systems Research – part of the S&T NSR drives renewal through systems research

What do we do in NSR? • NSR is a part of technology unit

Nokia Siemens Networks 17 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10

A new industry leader • Creation of major “top three” telecom company • Nokia’s

A new leader with scale to win Carrier Business, 2005 Revenues (€ Bn) 18

Some issues • Transaction subject to clearance by antitrust authorities (from EU ~13. 11.

Conclusions • Telecommunications industry has big challenges ahead • Bit pipe is becoming commodity

Thank You! Any Questions? 22 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006

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Research in Nokia Networks TKK T-109. 5410 Technology Management in the Telecommunications Industry October 17 th, 2006 Yrjö Raivio Principal System Specialist yrjo. raivio@nokia. com 1 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Outline • Personal background & Research interests • Research in Nokia Networks • Strategy & Technology (S&T) • Network Systems Research (NSR) • Nokia Siemens Networks • Conclusions 2 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Curriculum Vitae • Nokia Networks 1994 • Career path: • SW engineer SDL, C • Research Engineer Word • Research Manager Word, PPT • Sr Research Manager PPT, Excel • Principal Specialist Excel • MSc from TKK/EE 1995 • Postgraduate studies in TKK/CS from 01/2005 onwards 3 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Links • Host Identity Protocol (HIP) – http: //www. ietf. org/html. charters/hip-charter. html • Internet Indirect Infrastructure (I 3) – http: //i 3. cs. berkeley. edu/ • P 2 P - Distributed Hash Table (DHT) – http: //cis. poly. edu/~ross/papers/P 2 Ptutorial. Infocom. pdf • WEB Services - http: //www. hiit. fi/fuego/fc/ • Copyright vs. copyleft - http: //www. soberit. hut. fi/T-76. 5753/suomi/ (in Finnish) • Open Source Software - http: //www. coss. fi/fi/ • Innovation management -http: //www. tuta. hut. fi/studies/Courses_and_schedules/Isib/TU 91. 2005/TU-91. 2005. php • Internet business - http: //www. soberit. hut. fi/T-86. 5300/ • Internationalization - http: //www. sbl. tkk. fi/kv-klinikka/ (in Finnish) • Research Seminar on Telecom Business – http: //www. tml. tkk. fi/Opinnot/T-109. 7510/ 8 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Nokia structure Horizontal Groups Business Groups Customer and Market Operations Technology Platforms Mobile Phones Multimedia Enterprise Solutions Brand design Developer support Research and venturing Business infrastructure Corporate Functions 10 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR Networks

Networks organization as of 1 July 2006 North America Latin America APAC China CEMEA WE Customer & Market Operations Delivery Operations Core Networks Radio Networks / S Beresford-Wylie Services F&C; Strategy and Technology Unit; Quality; Legal; HR; Communications. 11 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR Vodafone

Strategy & Technology mission Strategy & Technology’s mission is to add Nokia and customer value by driving • NET strategic renewal • World-class system competence • Efficient support operations in increasing dialogue with customers. 12 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

What do we do in Strategy & Technology? • Run NET-wide strategies & strategy initiatives • Ensure access to new technologies and competitive E 2 E-system functionalities • Drive new business initiatives • Provide efficient support for NET product creation and team operations • Drive standards, regulation, IPR and environmental initiatives IPR Research 13 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR Standardization

Research roles NRC S&T NET BUs • Time to market, Long Short • Technology risk, Higher Lower • Business risk, Higher Lower • Weight varies due to business situation • R-milestones, B-milestones, E-milestones 14 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Network Systems Research – part of the S&T NSR drives renewal through systems research in order to strengthen Nokia Network’s position in its current business, and to expand into new business areas Mainstream research in current Business areas 15 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR Scouting and new research topics

What do we do in NSR? • NSR is a part of technology unit in NET/S&T organization focusing to network systems research • Our research is related to radio and core networks, and operation and automation • We do scouting for new technologies, research on new and disruptive ideas, research on mainstreams technologies and create content to standardization • We have cooperation with external organizations (universities, research institutes, operators’ R&D centers, …) • We have close cooperation with NRC and with Nokia Business Units • Our customers are e. g. product programs and management, road mapping, marketing, … 16 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

A new industry leader • Creation of major “top three” telecom company • Nokia’s Networks Business Group • Siemens’ operator/carrier related business for fixed and mobile • Company name: Nokia Siemens Networks • 50 -50 partnership • Shared vision and values • Appointed CEO Simon Beresford-Wylie • Appointed CFO Peter Schönhofer • Operational headquarters in Helsinki, Finland (registered in the Netherlands) • Finalization of the contract and regulatory approvals expected by year-end 2006 • The financial results of Nokia Siemens Networks will be consolidated by Nokia 18 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

A new leader with scale to win Carrier Business, 2005 Revenues (€ Bn) 18 16 17. 2 16. 2 15. 8 14 12 10 8 6. 7 6 5. 1 4. 6 3. 6 4 2 0 Alcatel & Ericsson & Nokia Lucent* Marconi Siemens Networks** Nortel Cisco NEC * Excludes Thales and enterprise business ** Unaudited calendarised numbers 19 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR Motorola Huawei

Some issues • Transaction subject to clearance by antitrust authorities (from EU ~13. 11. 06) • Cost synergies of primarily from • • • elimination of overlapping functions consolidation and better utilization of sales and marketing organizations reduction of overhead costs sourcing benefits greater efficiencies in R&D • 10 -15% adjustment estimated over the next four years out of the initial combined employee base of 60, 000 20 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

Conclusions • Telecommunications industry has big challenges ahead • Bit pipe is becoming commodity – radical thinking needed • Open Innovation must be taken seriously • Customer relations are an advantage • Research gives an excellent background for the career • “Research career” = C, C++, Word, PPT, Excel • Do not forget post graduate studies 21 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006 -10 -17 / YR

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