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Pattern of Communications and the Demand for Connectivity Social Networks

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					pattern of communications and
The demand for connectivity


Connectivity. Devices. Media. Social Networks. Always
connected. Individuality. Listening to the customer.
Agenda

                              Major Trends



                      Connectivity & Devices



                         Apps & Social Media



                             The Experience


         Ericsson Internal    2                2009-09-30
Strong drivers for new services

                                            Marketing
                                                                         Friends or
                                                                        others use it
   Convenience




 Curiosity
                                                                            Best option
                                                                           at the moment



                                                   ”I browse the mobile Internet for example when II
                                                    ”I browse the mobile Internet for example when
                                                   am bored. It can be when II wait for someone,
                                                    am bored. It can be when wait for someone,
             Time to kill                          when II go to the toilet or when II have a smoke.
                                                    when go to the toilet or when have a smoke.
                                                   You know, sometimes it is not that exciting to
                                                    You know, sometimes it is not that exciting to
                                                   look at a faraway mountain while smoking.”
                                                    look at a faraway mountain while smoking.”
                                                                           Male Professional, 30 years
                                                                            Male Professional, 30 years


                    Ericsson Internal   3                                          2009-09-30
       High consumption of multimedia
                             Recession-proof:
                             Match.com posted in
                             2008 the strongest
                             Q4 results of the                                                                              World of Warcraft, the
                             past 7 years                                                                                   subscription-based
                                                                                                                            online game, has more
                                                                                                                            than 11 million players

    The chinese community
    QQ has 450 million active
    users. This is roughly the
    population of European
    Union

                                                                                                                                    Twitter has been
                                                                                                                                    called ”The SMS of
                       Every minute, 10                                                                                             Internet” and was the
                       hours of videos is                                                                                           fastest growing
                       uploaded to YouTube                                                                                          community site in
Sources: NYTimes (Feb 2009),YouTube Website (July 2009), Blizzard (Nov 2008), Nielsen.com (March 2009), Tencent, Inc (July 2009     March 2009


                                               Ericsson Internal          4                                                               2009-09-30
    MySpace & MSN stopped growing
    Facebook is the new Social Network Site star

               Year 2007                                                                           Year 2009
   Currently use      Have used before                 Plan to use                Aware of service                     Don’t know service

        Facebook was opened on September
                                             48%Facebook
         26, 2006 to everyone of ages 13 and Facebook                                   48%
             older with a valid e-mail address.


                                         31%           MySpace
                                                      MySpace                     34%



                                                      MSN/Live
                                              15%     MSN Spaces 17%
                                                       Spaces



                                54%                   mixi      mixi                          63%


100 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%                             0%     10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
 %
                                                    Sample: Advanced internet users ages 15-39 , Nov 2006 (ConsumerLab Web Communication Life) and Dec 2008




                          Ericsson Internal     5                                                                         2009-09-30
   Is YouTube a monopoly?
   Google Video and iTunes struggling to compete in video sharing

              Year 2007                                                                          Year 2009
   Currently use     Have used before                    Plan to use              Aware of service                 Don’t know service



                                   45%                  Youtube
                                                         YouTube                                   72%




                                            23%         Google Video
                                                        Google Video              21%




                                            24%          Apple iTunes
                                                        Apple iTunes              18%



100 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%                                    0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
 %                                                                                                                    %
                                            Sample: Advanced internet users ages 15-39 , Nov 2006 (ConsumerLab Web Communication Life) and Dec 2008




                        Ericsson Internal         6                                                                  2009-09-30
        Power of devices
               Watch for mobile                                            Its about high-speed
                                                                           mobile connectivity.
             devices, Camcorder
            Technology – beyond                                           More than 1500 devices
              traditional camera                                         (phones, cameras, media
                                                                           players, PCs, routers,
                                                                            femtocells, etc) are
                                                                          already HSPA-enabled




                                                                             The usage of
             Mobile device                                                mobile phones for
               will be the                                                   payment and
              primary tool                                                ticketing via NFC
             for accessing                                                      will be
              web by 2020                                                 commonplace by
                                                                           2020 with mass
                                                                             deployments
                                                                            starting 2013
Sources: Internal Ericsson 2020 Study (April 2009),
ABI Research (Q4 2008), GSMA (Aug 2009)




                                                 Ericsson Internal   7          2009-09-30
Broadband Market Forecast
North America
                                                Broadband Subscribers

             350,000

             300,000

             250,000
                                                                                   Other (e.g. FWA, Wimax, satellite)
 Thousands




             200,000                                                               Mobile broadband
                                                                                   FTTH/B
             150,000                                                               Cable modem
                                                                                   DSL

             100,000

               50,000

                  -
                      2006 2007 2008 2009 2010 2011 2012 2013 2014

                                                                    Source: Ovum Broadband forecast pack: 2009–14, June 2009

             Fixed Access is Churning to Higher Speed, Mobile Broadband is Organic Growth
                            Ericsson Internal     8                                              2009-09-30
     Mobile Operator revenue growth CHALLENGE

                                                                                                      n
                                                                                                    io                   y
                                                                                                 at          s        etr
                                                                                              to
                                                                                                m         ud        m
                                                                                                       lo        ele
                         Enterprise & Device driven                                         Au & C
                         Enterprise & Device driven                                        m
                                                                                             e
                                                                                               ps       rs
                                                                                                              ,T
                                   “thousands of verticals”
                                   “thousands of verticals”                             H o Ap       Ca
                                                                                                  M,           l ec.
                                                                                               M2          er E
                                                                                                       sum
                                                                                                   Co n

                                                          Market inflection                                         ules
                100% Population Penetration                                                   Embedded Mod
      Devices




                                                                                     Personal Devices
                           Communication driven
                           Communication driven                                            Or
                                     “Single vertical”
                                     “Single vertical”                                   People


                                                                                                                             Time
                                                                      Now     2012                                 2020
Illustrative Purposes Only

                                       50 Billion Connected Devices by 2020
                                      Ericsson Internal      9                                                 2009-09-30
Agenda

                              Major Trends



                      Connectivity & Devices



                            Social Media
                         Apps & Social Media



                             The Experience


         Ericsson Internal    10               2009-09-30
                   Subscriptions per Technology
                                                              Subscriptions by Technology   US Market
                   180,000                                                  CDMA Growth
                                                                               Slows

                   160,000                                                                      HSPA Growth
                                                                                                 Continues

                   140,000



                   120,000                                                                           GSM/GPRS [000]
                                                                                                     GSM/EDGE [000]
S scrip n (000s)




                                                                                                     CDMA 1X [000]
                   100,000                                                                           CDMA 1X (WLL) [000]
       tio s




                                                                                                     CDMA2000 (EV/3X) [000]
                                                                            c                        CDMA2000 (EV/3X-WLL) [000]
                    80,000                                                                           UMTS [000]
 ub




                                                                                                     HSPA [000]
                                                                                                     Mobile WiMAX [000]
                    60,000                                                                           LTE [000]


                    40,000

                                                                                               LTE Taking Off
                    20,000



                        0
                             2005A 2006A 2007A 2008A 2009E 2010E 2011E 2012E 2013E 2014E
                                                                                                          Source: Pyramid Q209


                                    Mobile Growth Continues Beyond Saturation
                                          Ericsson Internal        11                                              2009-09-30
Power of devices
50 Billion connections by 2020


                   Phone +
                                                                                      Media Phone
                  Camcorder


                                                                                                   Hi-Resolution
        Flexible
        Displays


                                                                                                    Projector
                                                                                                   capabilities
         3D,
     Holography

                                                                                                   Solar cells,
                                                                                                   fuel cells…
           Multi-
          Access



                 Embedded                                                          Wearable
                  security                                                         devices
Sources: ABI research, Ericsson 2020 Study (April 2009)




                                                          Ericsson Internal   12      2009-09-30
   Devices communication and media
   Most common communication services (weekly basis)

                                                                                         Calls – 32%
                                                                                         E-mail – 54%
             Calls – 8%                                                                  IM – 46%                              Calls – 95%
             E-mail – 10%                                                                Community – 40%                       E-mail – 25%
             IM – 9%                                                  Subnotebook:
                                                                      ~629 pictures                                            IM – 17%
             Community – 9%                                           ~593 music files                                         Community – 12%
                                                                      ~136 movies                                              SMS – 84%
                                      iPod:                           ~43 game titles
                                      ~200 pictures                                                                            Photos – 41%
                                      ~1042 music files                                                        Mobile phone:
                                      ~44 movies                                                               ~103 pictures
                                      ~21 game titles                                                          ~112 music files
                                                                                                               ~19 movies/clips
                                                                                                               ~14 game titles

Calls – 24%
E-mail – 84%
IM – 64%
Community – 58%   Laptop PC:
                  ~1333 pictures                                                                                                   Calls – 95%
                  ~1497 music files                                                                                                E-mail – 78%
                  ~102 movies
                  ~55 game titles
                                                                                                                                   IM – 54%
                                                                                                                                   Community – 51%
                                                                                                                                   SMS – 90%
                                                                                                                                   Photos – 59%
                                                                                                                 iPhone:
                                                               Calls – 5%        MP3/media player:               ~200 pictures
      Calls – 8%           Portable game device:
                                                               E-mail – 5%       ~94 pictures                    ~460 music files
                           ~73 pictures
      E-mail – 8%          ~131 music files                    IM – 5%           ~375 music files                ~21 movies/clips
      IM – 9%                                                                    ~22 movies/clips                ~15 game titles
                           ~25 movies                          Community – 5%    ~12 game titles
      Community – 9%       ~25 game titles
                                                                          Sample: 10648 advanced internet users in 10 countries, ages 15-59 , Dec 2008




                                      Ericsson Internal   13                                                                 2009-09-30
       Wireless handsets steady growth
                                                                            World Mobile Device Forecast By Category


                                          2500



                                          2000                                                                         Mobile Consumer
                                                                                                                       Electronics
                    Millions of Devices




                                                                                                                       Cellular Wireless
                                          1500                                                                         Modems

                                                                                                                       Ultra-Mobile Devices

                                          1000
                                                                                                                       Wireless Handsets


                                           500




                                             0
                                                 2007        2008           2009        2010   2011   2012   2013
Source: ABI Research 2Q08




                                                        Ericsson Internal          14                                           2009-09-30
Drill Down
                                                           World Mobile Device Forecast
                      2500.00
                                                                                                    Mobile Digital
                                                                                                    Camcorder
                                                                                                    Mobile Digital Still
                                                                                                    Camera
                                                                                                    Mobile Video Player
                      2000.00                                                                       Mobile Audio Player

                                                                                                    Mobile Gaming Console

                                                                                                    3G Wi-Fi Router
Millions of Devices




                      1500.00                                                                       USB Modem

                                                                                                    Internal Modem

                                                                                                    PCMCIA Card

                                                                                                    Ultra-Mobile PC
                      1000.00
                                                                                                    MID

                                                                                                    Smartphone

                                                                                                    Enhanced Phone
                       500.00
                                                                                                    Low-End

                                                                                                    Ultra Low-End


                         0.00                                                                      Source: ABI Research 2Q08
                                2007   2008                2009        2010   2011   2012   2013




                                       Ericsson Internal          15                                       2009-09-30
       Device Type impact on data growth
                                                    Mobile Network Data Traffic By Device Type North America

                                       6,000.0

                                       5,000.0
                 Petabytes (1000 GB)




                                                                                                                                                  Consumer
                                       4,000.0
                                                                                                                                                  Electronics (PB)
                                                                                                                                                  Embedded
                                       3,000.0
                                                                                                                                                  Computing (PB)
                                                                                                                                                  Modems and
                                       2,000.0                                                                                                    Routers (PB)
                                                                                                                                                  Handsets (PB)
                                       1,000.0


                                           0.0
                                             2008      2009              2010         2011              2012             2013              2014


ABI Research: Mobile Data Traffic Analysis The Impact of Subscribers, Devices, and Wireless Protocols on Mobile Data Generation and Consumption




                 Although Smaller % in Numbers, Embedded Computing Drives Data Growth
                                                     Ericsson Internal      17                                                                     2009-09-30
     Mobile Data Growth Dominated by Web/OTT + Video


                                               Mobile Network Data Traffic by Traffic Type North America
                                                                                          Video and Internet Dominate
                            6,000.0                                                       Optimization Strategies Important

                            5,000.0
      Petabytes (1000 GB)




                            4,000.0                                                                                     Web/Internet (PB)
                                                                                                                        VoIP (PB)
                                                                                                                             *
                            3,000.0                                                                                     Video Streaming/TV (PB)
                                                                                                                        P2P (PB)
                                                                                                                             *
                            2,000.0                                                                                     Audio Streaming (PB)


                            1,000.0


                                0.0
                                  2008       2009            2010         2011   2012   2013             2014

                                                                                               * Mobile P2P and VoIP do not register on this scale

ABI Research 2009



                                         Near-term Need to Address OTT and Video Solution Strategies
                                                 Ericsson Internal   18                                                     2009-09-30
   This is just the beginning . . .



PEOPLE WILL DEMAND MORE



            TECHNOLOGY WILL RESPOND
Ericsson Internal   20   2009-09-30
Agenda

                              Major Trends
                              Major Trends


                      Connectivity & Devices
                      Connectivity & Devices


                         Apps & Social Media



                             The Experience


         Ericsson Internal    21               2009-09-30
Changing Norms




 “if I've been to sleep and don’t have at least four
messages when I wake up, I feel no one loves me”
            Ericsson Internal   22         2009-09-30
Changing Norms




   “If I don’t want to use the computer at home and it is
 important I check Orkut or send e-mails from the mobile
when I am out. I don’t go to Cyber cafés any longer. When I
  have a net connection on my mobile why should I go?”
              Ericsson Internal   23            2009-09-30
Connectivity a “a need for life”
›   Alone means ’not connected’
›   Technology & connection taken for granted
›   Social connectivity totally personalized

     1 More of people’s social and practical life is mediated using internet based services
     2 Consumers need social connection to their peers in the real world and through technology
     3 Consumers need practical/life supporting connectivity to brands, government, and community




                      Ericsson Internal   24                                       2009-09-30
The changing web…
Internet has changed from being “information to people centric”




               Ericsson Internal   25                2009-09-30
Communication pattern
Traditional pattern in USA, UK, Germany




                                          The mobile is more
                                          important for the inner
                                          circle (close relations)
                                          IM communication
                                          involves people in further
                                          out circles, but is mainly
                                          used for the two inner
                                          circles
                                          Email is mainly used for
                                          communication with
                                          people within the Sporadic
                                          and Distant/formal
                                          categories




               Ericsson Internal   26             2009-09-30
Communication pattern
Changed pattern in USA, UK, Germany

                                        Social Networks
                                             Small investment to maintain a
                                             large number of contacts
                                             Offline became a strength
                                        IM
                                             Social networks have taken
                                             over much of the
                                             communication previously
                                             carried out via IM (mainly
                                             distant contacts)
                                             IM is now used more for the
                                             inner circles
                                        Mobile
                                             The mobile is still mainly used
                                             for communication with close
                                             contacts. But is becoming
                                             more frequently used for text
                                             message communication with
                                             sporadic and formal contacts
                                        Blogs
                                             Blogs involve the inner circle
                                             sometimes the second circle
                                             (although some blogs are
                                             more public).




               Ericsson Internal   27                  2009-09-30
Individualization and Fragmentation

›   Individualization of products, content and services
›   A consequence of this is fragmentation of products and services




     Communication                         Media



                  Ericsson Internal   28                     2009-09-30
Be on Social Networks or lose your friends!




› Social networks act as a starting point for other activities on Internet
› It has become essential, especially for youth, to have relationships with others
  using Internet social networks
› More important than ever for individuals to keep updated on what is happening
  within their networks, also when not at home



 Provides opportunities for development of more advanced mobile phone services!
                    Ericsson Internal   29                           2009-09-30
The ‘Digital Appearance’




        Ericsson Internal   30   2009-09-30
Drivers for communities




        Ericsson Internal   31   2009-09-30
Ericsson Internal   32   2009-09-30
   Mobile Social Networking Growth UP
56.9+ million consumers
accessed the web via
mobile device in July
2009, up from 42.5
million a year earlier--a
34% year-over-year leap




                                                                                                 Source: Nielsen Q209

       Prepare for Large Shifts in Data Consumptions and Mobile Services Tied to Cross Adoption of Services

                            Ericsson Internal   33                                       2009-09-30
Engaging the consumer

› Harder competition
› Create close relationship with your customers
› Engage consumers as a part of the experience




             Ericsson Internal   34               2009-09-30
    iPhone and the App store




›    The appeal is in the process, not in the components
›    It’s simple and it works

                                                  Ericsson ConsumerLab - Collaborative Applications Study 2008/2009

                   Ericsson Internal   35                                       2009-09-30
         OPERATOR Services Revenue – North America
                                                                Mobile
                                                 © Copyright 2009 Yankee Group Research, Inc. All rights reserved.
              160,000                                           Voice


              140,000                                                                                                       Telco Consumer Messaging    5
                               Fixed                                                                                        Revenue
                               Voice                                                                                        Switched Access Revenue     2
              120,000                                                                                                       Mobile Phone Voice Revenue 1

                                                                                                                            Mobile Music Market Revenue
              100,000
                                                                                                                            Mobile Gaming Market Revenue
USD Million




                                                           Digital
                                                                                                                            Analog/Basic TV Revenue     4
               80,000                                      Cable
                                                                                                                            Digital Cable TV Revenue    3

               60,000                                                                                                       Mobile Video/TV Market Revenue

                                                                                                                            Basic Infotainment Market
                                                                             Analog                                         Revenue
               40,000                                                        or Basic                                       Total M-Commerce Revenue
                                                                                TV
                                                                                                                            Ringtone Market Revenue
               20,000
                                                                                                                            Mobile Graphics Market
                             Telco                                                                                          Revenue
                           Messaging                                                                                        Cable Broadband Head-End Port
                   0                                                                                                        Revenue

                        2007       2008               2009                Internet,2011
                                                                       2010                              2012        2013
                                                                           OTT, Social
                                                                             Nets



                                       Ericsson Internal          36                                                            2009-09-30
Mobile Services Revenue North America
(Remove messaging from the chart)
               3,500                                                                                                          160,000


                                                                                                                              140,000                                                     Telco Consumer Messaging
                                                                                                                                                                                          Revenue
                                                                                                                                                                                          Switched Access Revenue

                                                                                                                              120,000                                                     Mobile Phone Voice Revenue

                                                                                                                                                                                          Mobile Music Market Revenue
                                                                                                                              100,000
                                                                                                                                                                                          Mobile Gaming Market Revenue




                                                                                                                USD Million
                                                                                                                                                                                          Analog/Basic TV Revenue


               3,000                                                                                                           80,000


                                                                                                                               60,000
                                                                                                                                                                                          Digital Cable TV Revenue

                                                                                                                                                                                          Mobile Video/TV Market Revenue

                                                                                                                                                                                          Basic Infotainment Market
                                                                                                                                                                                          Revenue
                                                                                                                               40,000                                                     Total M-Commerce Revenue

                                                                                                                                                                                          Ringtone Market Revenue
                                                                                                                               20,000
                                                                                                                                                                                          Mobile Graphics Market
                                                                                                                                                                                          Revenue
                                                                                                                                                                                          Cable Broadband Head-End Port
                                                                                                                                   0                                                      Revenue


               2,500                                                                                                                    2007    2008   2009   2010   2011   2012   2013




                                                                                                                Mobile Music Market
                                                                                                                Revenue
 USD Million




               2,000
                                                                                                                Mobile Gaming Market
                                                                                                                Revenue

               1,500                                                                                            Mobile*Video/TV Market
                                                                                                                Revenue
                                                                                                                Basic Infotainment
               1,000                                                                                            Market Revenue
                                                                                                                Total M-Commerce
                                                                                                                Revenue
                500                                                                                             Ringtone Market
                                                                                                                Revenue
                                                                                                                Mobile Graphics Market
                  0                                                                                             Revenue
                           2007            2008            2009              2010          2011   2012   2013
                       © Copyright 1997-2009 Yankee Group Research, Inc. All rights reserved.




                                       TV and OTT/Internet Apps Dominate the Rest
                                             Ericsson Internal          37                                                                     2009-09-30
   Top performing SMS campaigns


Crossover



Crossover




            Coming from a wide variety of sources and genres       Source: Nielsen Q209




                Ericsson Internal   38                     2009-09-30
Interest in Future Mobile Services
                                                            US Total

                    Positioning Service (Like Gps)                                                39%

          Automatic Mobile Phone Backup Service                                             36%

                                  Current Availability                                  34%

                       Access To Home Computer                                   31%

Sharing Pictures/Live Videos/Video Telephone Calls                              30%

                                  Instant Product Info                         29%

                                                   Email                       29%

                                  Information Search                       28%

                                                Mobile TV                  28%

                    Mobile Browsing of The Internet                      26%

                           Small Payment Service                         26%

                      Tickets In Your Mobile Phone                       26%

            Storage/Saving Of Material On Network                        26%

        Access to Instant messaging e.g.MSN Chat                   20%

   Access to communities e.g. Facebook, Myspace                 19%

                                     Access To Blogs         17%
                                                                               Source: Global Infocom study 2008


  Highlights demand for mobile extensions of the familiar PC experiences
                            Ericsson Internal        39                              2009-09-30
Mobile Cloud computing – North America
                    Mobile Cloud Application Revenues, by Application Category - North America

        8,000.



        7,000.



        6,000.



        5,000.
                                                                                                      Utilities
                                                                                                      Social Networking
 MUSD




        4,000.                                                                                        Search
                                                                                                      Productivity
                                                                                                      Games
        3,000.


        2,000.



        1,000.



             .
             2008     2009                   2010        2011   2012          2013          2014




                         Ericsson Internal          40                                             2009-09-30
CHANGING LANDSCAPE
All 3 screens still growing




                                                              Large Usage, but small # of minutes
                                                              Large Usage, but small # of minutes




                                                               Small but growing
                                                               Small but growing




          Overall 3-screen viewing time is increasing,
          watching video on the internet is exploding




  Web TV and video content delivery drives new data subscription/usage models
                    Ericsson Internal   41                           2009-09-30
HULU EFFECT
› commScore: 77% of internet users viewed videos online in March 2009
    – 14.5 billion videos
    – 5.5 hours per month
› YouTube most popular, 99M users, 5.9B videos viewed in March
› 380 million videos viewed on HULU in March 2009
› HULU has 5% of all minutes of video viewed online, but 2.6% of videos viewed
    – HULU is keeping users viewing longer



                                                                                     • HULU is rapidly gaining
                                                                                       reach across the internet
                                                                                       population
                                                                                     • Popular on PC, but laptop,
                                                                                       netbooks emerging
                                                                                     • Screen quality on
                                                                                       smartphones will enable
                                                                                       growth


  http://internal.ericsson.com/page/hub_inside/sales/bic/sources/heavy_reading.jsp


Online Video Viewing Will Continue to Be a BIG Issue for Customers
                                Ericsson Internal     42                                                 2009-09-30
 OTT Video growth across all networks




Plus the YouTubes of the world

80% of iPhone mobile data is video download
                  Ericsson Internal   43      2009-09-30
OTT favorite applications requirements

          330kbps video+64kbps       Voice        10-64kbps
          voice
          10min, 100MB-1GB           Video        Clips 480-700kbps
          storage                                 HQ/SDTV 1Mbps
          150kbps                                 HD 2.5Mbps -7Mbps
                                     Video call   350kbps
          General Clip 480-700kbps
          HQ 1Mbps
                                     Audio        150kbps
          HQ 2.5Mbps                 Broadcast
          Video 500kbps 728kbps      M2M          control    0.1 kbps
          SDTV 910kbps                            POS          1 kbps
          HD7Mbps                                 telematics 10 kbps
          Video 384kbps
          Voice 10kbps-64kbps




       Not all the OTT apps are data rate hungry !
          Ericsson Internal   44                      2009-09-30
 Device Screen impact on Data rates




                                                                                DSL - Fiber
                                                    HSPA - LTE
            3G - HSPA


Mobile TV                                                                                Fixed IPTV



H.264 /     H.264 /              H.264 /         H.264 /     H.264 /   H.264 /           H.264 /
MPEG-4      MPEG-4               MPEG-4          MPEG-4      MPEG-4    MPEG-4-           MPEG-4
AVC         AVC                  AVC             AVC         AVC       AVC               AVC

64 kb/s     128 kb/s             256 kb/s        512 kb/s    1 Mb/s    2 Mb/s            8 Mb/s
QVGA        QVGA                 QVGA            VGA         VGA       SDTV              HDTV
            QCIF
      There are opportunities in mobile based on device and/or bandwidth limits
                       Ericsson Internal    45                                     2009-09-30
   Video GETS SOCIAL




                3% of video viewers age
                50-64 pay to access or
                download video on line.




Application Innovation Is Also Driving Video Consumption….These Drive Network Utilization
                       Ericsson Internal   46                           2009-09-30
                       Broadband video viewing trends
Chart 1-4
Viewing Screen for Broadband Video
World Market: 2004 to 2013
                    900,000

                                         PC
                    800,000
                                         TV
                    700,000
                                              *
                                         Portable/Mobile                                                 Chart 1-3
                    600,000                                                                              Total Broadband Video Views by Model (Pay, Free, Ad-Supported
                                                                                                         World Market: 2004 to 2013
 Users (Millions)




                    500,000                                                                                                          900,000

                    400,000                                                                                                          800,000
                                                                                                                                                          Ad (Millions)
                    300,000                                                                                                          700,000
                                                                                                                                                          Pay (Millions)




                                                                                                          Videos Viewed (Millions)
                    200,000
                                                                                                                                     600,000
                                                                                                                                                          Free (Millions)
                    100,000                                                                                                          500,000

                         0
                                                                                                                                     400,000
                         2004     2005   2006     2007     2008   2009      2010   2011    2012   2013

Source: ABI Research                                                                                                                 300,000

                                                                                                                                     200,000

                                                                                                                                     100,000
                              * - TV in this context is a smart Television
                              connected directly to Web Video sources                                                                     0
                                                                                                                                          2004   2005   2006    2007        2008   2009   2010    2011   2012   2013

                                                                                                         Source: ABI Research


                                     Video On PC grows to 4X mobile users
                       Video Length, Quality & Capacity Drives The Continued Speed Race
                                                             Ericsson Internal        47                                                                                             2009-09-30
  Web to TV




Televisions and STV Connected Directly to Web Sources Will Emerge and Could
      Cause Some Disruptions in the Fixed BB as Well as TV Bus Models
                  Ericsson Internal   48                     2009-09-30
LTE applications
                            End-to-end Video and Internet Apps are extremely important
                            End-to-end Video and Internet Apps are extremely important




  LTE Business Case Device Roadmap – July 2009

Traditional Applications Move Forward into LTE, Video and Internet Most Important

                     Ericsson Internal   49                                  2009-09-30
Agenda

                              Major Trends
                              Major Trends


                      Connectivity & Devices
                      Connectivity & Devices



                              Social Media



                             The Experience


         Ericsson Internal    50               2009-09-30
Rich Communication Services (RCS)
 What Ericsson is doing in Social
                                                                 Rich
                                                              Communication
                                                                 Suite
    Social
  Media Portal




                                                                         Active
                                                                        Address
                                            Making                       Book
       Messaging                           Networks
•Driving Initiatives
           In                               Social
•Delivering Products
          One
•Delivering ”Experiences”                             Interactive
•Exploring new business models                           Video


                  Ericsson Internal   52                            2009-09-30
Tools start in the web2.0 domain




        Ericsson Internal   53   2009-09-30
What’s Ericsson Doing in TV Experience?
Converting trends into growth
opportunities
       Trend                            Impact                 Strategies
                                                                Indivdiualize, Cost
                                                                 Indivdiualize, Cost
                                     More digital creation
                                     More digital creation    Options, Speed, Enable
                                                              Options, Speed, Enable
     Power of Consumers
     Power of Consumers                                         Apps & Innovation
                                      and consumption
                                      and consumption            Apps & Innovation
                                                                 Prepare for Video
                                                                  Prepare for Video

                                                                 Multimedia Content
                                                                 Multimedia Content
                                     More relevant and
                                     More relevant and
      Power of Internet
      Power of Internet                                              Social Nets
                                                                     Social Nets
                                     speedy offerings
                                      speedy offerings
                                                                     Advertising
                                                                     Advertising


                                                               Speed, M2M, Vertical
                                                               Speed, M2M, Vertical
                                   More TV/video and more
                                   More TV/video and more        Markets, Plan for
     Power of Technology
     Power of Technology                 user choice             Markets, Plan for
                                         user choice               Bandwidth
                                                                    Bandwidth

                                                            Home ,, Mobile,& Embedded
                                                            Home Mobile,& Embedded
                                   More screens and storage
                                   More screens and storage   Always-On Integrated
                                                              Always-On Integrated
      Power of Devices
      Power of Devices                                              Experience
                                                                    Experience
                                          to manage
                                           to manage
                                                               Connected Lifestyle
                                                               Connected Lifestyle




          Ericsson Internal   55                                        2009-09-30

				
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posted:9/30/2010
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Description: Connectivity. Devices. Media. Social Networks. Always connected. Individuality. Listening to the customer.
Sergio Fernandes Sergio Fernandes
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