Jose luis ayala Director government relations for latin america Ericsson

700 MHZ impact on Latin America’s Mobile Broadband

THE Networked Society

Security

Management

Sustainability

Network Cloud

Services Devices

Wireless Connectivity is key

9 billion subscriptions by 2018

140% PENETRATION in latam

by 2018

900 m SUBSCRIPTIONS in latam

by 2018

3 GB

0.6 GB

0.45 GB

11 GB

2.7 GB

1.9 GB

2012 2018

Data traffic times 12 by 2018

Mobile Traffic Voice and Data

Mobile data traffic is expected to continue the trend of doubling each year

Data Consumption per device and month

SMARTPHONES FLOODING MARKETS

50% OF PHONES

SOLD IN q1 WERE SMARTPHONES

4,5 B

0,8 B

1,2 B

0,3 B

17% OF SMARTPHONE

penetration in latam

Subscriptions with cellular connection

video: half of data traffic in 2018

2012 2018

Video is the largest segment of data traffic in mobile networks expected to grow by around 60% annually until the end of 2018.

Technologies evolution

Mobile subscriptions by Technology and Region

2012 2018

Latin America will experience a technology shift ahead, by 2018, WCDMA/HSPA will be the dominant technology (~70%), however GSM/EDGE-only subscriptions will still have significant presence (~20%) and, LTE will reach ~10%

Latin America

Latin America

Network evolution example Driven by spectrum availability

GSM / Edge-only

WCDMA / HSPA

LTE Step 1: GSM & HSPA in existing bands today

850 1900

700

Step 2: Introduction of HSPA Dual carrier + LTE in new band

Step 3: Expand LTE Coverage and capacity in new bands

1700 2100

2600

New Coverage and Capacity bands are needed to introduce LTE today, and in the future

Coverage Capacity

Application coverage

@

SMS 10 Mbps 1

Mbps 0.1 Mbps

“App Coverage” – the area where my app works as I expect”

≈ 50%

≈ 5%

≈ 30%

≈ 15%

Heterogeneous Networks

Improve Densify

Add

Improve

Dense urban Sub-urban Urban Rural

Improve Densify

Traffic density

IMPROVE

ADD

DENSIFY

Site distribution in a typical European country

How To provide APP coverage

MEA Base: 2100 Future: 900, 1800 & 2600 2013+: CEPT800 & APT700

APAC Base: 2100, 900 & 850 Future: 1800, 2300 & 2600 2013+: APT700

Japan Base: 2100, 1700, JP850 Future: 1500, 900 & APT700

Europa Base: 2100 & 900 Future: 2600, 1800 & CEPT800

North America Base: 850, 1900, US700 & AWS Future: 2600

spectrum Available for imt per region

Out of a total 1177 MHz of identified spectrum in ITU RR, on average, ~ 1000 MHz available for licensing in each Region

Latin America Base: 850/900, 1800/1900, 2100 2013+: 1.7/2.1, 2500, 700 Future: 600, E850, 2.3, 1.5, & 3.5

Latam Spectrum availability july 2013

Source: Ericsson

• The lack of enough spectrum in the region is the major threat for massive MBB adoption

• Another challenge is the slow spectrum release process (i.e., typically between 6 – 10 yrs. from start)

529

380

240

440

192 180 179 178 170 170 170

120 110 118

260 262

Avai

labl

e S

pect

rum

per

Ban

d (M

Hz)

-

Nat

ionw

ide

Aver

age

292

digital dividend Advantages for latam

› Cost-efficient alternative for expanding Mobile Broadband services

› Improved Indoor penetration

› Large block of spectrum allows competitive market development

5

Num

ber o

f Site

s re

quire

d (n

orm

aliz

ed)

4.5

4

3.5

3

2.5

2

1.5

1 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600

Frequency (MHz)

LTE 700 requires ¼ sites than higher bands

UHF 34 33 36 35 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 37 58 57 60 59 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 61 66 65 68 67 62 63 64 69

470 MHz 698 MHz 806 MHz

2 3 4 5 6 7 8 9 10 11 12 13 VHF 54 174 MHz 72 76 88 MHz 216 MHz

614 MHz

DD DD 2.0

512 MHz

Latam: 5 countries already licensed it, 2 countries in process to, and 4 planning to

Latam: 9 countries already allocated to mobile service on a

primary basis

global atribution uhf band july, 2013

Australia April 16, 2013

Mexico

New Zealand Q3-2013

Chile Q3-2013

Ecuador Licensed!

Taiwan Sep, 2013 Colombia

Brazil 2015

Japan Licensed!

Venezuela

Unknown or spectrum band conditions under development

Licensed or intends to implement the 790 – 862 MHz band [3GPP Band 20] Licensed or intends to implement the US700 arrangement [3GPP Bands 12, 13, 14, 17]

Licensed or intends to implement the APT700 band plan [3GPP Band 28 ]

Other spectrum band arrangement

Embargo countries

Panama

› RLAM will experience an explosive mobile traffic growth by 2015 – 2020

› Operators will use different technology alternatives to cope with traffic demands

› Releasing harmonized spectrum will continue being key for competitive market development

› Digital Dividend will help increase Mobile Broadband adoption everywhere, with competitive and accessible prices

conclusions

Ericsson mobility report

www.ericsson.com/ericsson-mobility-report

Please address further inquiries to: Jose Luis Ayala jose.ayala@ericsson.com and Linkedin