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Networks
Overview presentation
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© NOKIA
NET_general.ppt/January 2005/PTa
Contents
• Networks in a nutshell
• Key facts and figures
• Nokia firsts
• Strategic intent
• GSM/EDGE/WCDMA family of technologies
• Mobile data services are here
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© NOKIA
NET_general.ppt/January 2005/PTa
In a nutshell
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•
Net sales EUR 6.3 billion, personnel 16 600 in 2004
•
Leading provider of mobile and IP network infrastructure to mobile operators
and service providers
•
Focus on the GSM family of technologies: Leader in GSM, EDGE, GPRS and
WCDMA networks
•
World-class services for operators from network delivery, integration and
maintenance to end-to-end solutions for optimised network performance
•
Leader in TETRA networks for public safety and security
•
Strong player in the broadband access market
© NOKIA
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Networks – at the heart of Nokia’s strategy
Expand mobile
voice
Networks
Bring
extended
mobility to
enterprise
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NET_general.ppt/January 2005/PTa
Drive consumer
mobile
multimedia
Our customers
…. and many others
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Extensive track record
• Leader in GSM technology, with over 130 customers worldwide
• Leader in 3G with 45 public 3G references
• Leader in core network technology: around 80 GPRS networks delivered to
customers around the world, circuit switched networks serving over 200
million customers, leading the way in Push to talk over Cellular and other
new services
• One of the world’s leading suppliers of TETRA technology for public safety
and security sector
• Around 50 broadband systems customers
• Nokia has contracted operating services for 21 operators globally and
provided full turnkey implementations for 26 customers in 22 countries
• Multi-technology, multi-vendor network management system delivered to
around 300 customers
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Innovator in communication technology
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2004
Industry first 3GPP Rel4 architecture for cost savings in circuit switched voice
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2004
Industry first commercial end-to-end 3GPP IP Multimedia Subsystem
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2003
First with Push to talk over Cellular network products
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2002
J-Phone launched the world’s first 3GPP compliant commercial 3G network with Nokia
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2001
World's first Multimedia Messaging Service Center
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2001
World's first 3G WCDMA voice call on commercial 3GPP system
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2000
World's first GPRS inter-operator roaming
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1999
World's first triple-mode (GSM, EDGE, WCDMA) base station
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1999
World's first WCDMA phone call through public switched telephone network
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1998
World's first High Speed Circuit Switched Data Network (HSCSD)
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1997
World's first four TETRA networks ordered from Nokia
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1997
World's first GSM dual band base station
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1993
World's first Short Message Service Center into commercial use in a Nokia Network
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1991
World's first GSM call made in Radiolinja's network, supplied by Nokia
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1982
Europe's first digital exchange, the DX 200
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1981
Nokia's first delivery of NMT 450 base stations
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1969
Nokia's first delivery of digital transmission system
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1967
Nokia's first generation of manual radio telephone systems
© NOKIA
NET_general.ppt/January 2005/PTa
Dedicated team serving customers globally
• About 16 600 employees in 2004
• Dedicated Customer Account Teams, supported by regional organisations
for technology and marketing competencies
• Global network of professionals for network deployment, planning,
maintenance, optimisation, integration and operations
• R&D in Finland, the US, Germany, Hungary, China, the UK
• Manufacturing in Finland and China,
complemented by global manufacturing partners
• A global network of partners in R&D, logistics
and services
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Key figures 2004
2003
EUR
2004
EUR
5 620
6 367
Operating profit (million)
-219
878
Operating margin (%)
-3,9
13,8
Net sales (million)
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© NOKIA
NET_general.ppt/January 2005/PTa
Networks Strategic Intent
The world’s leading enabler of mobility
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Networks businesses have distinctive drivers
Services
• Operators focus on operational
flexibility and cost
• Multivendor capability required
Customers
Radio
• GSM/EDGE remains a leading
technology, WCDMA ramps up
• Focus on efficient network rollouts and operations
• Multi-radio emerges
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Core
• Requires end-to-end solution
capability
• Enables service convergence
• Not only mobile play
Distinctive but interconnected strategies
Services
Grow by extending offering to
multivendor and managed services
Customers
Radio
Drive business leadership in
technology, scale and cost
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Core
Win with Nokia
end-to-end solutions
Our strategies drive for
Growth
Leadership
Profitability
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GSM/EDGE/WCDM
A
– the truly global
mobile technology
family
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Key trends in the environment
Towards the 2 billion milestone
millions
2,000
2 billion
in 2006!
1,800
1,600
Mobile phone subscriptions globally
1,400
1,200
1,000
Current global
penetration 24 %
800
600
400
200
Source: Nokia
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0
1992
1993
1994
NET_general.ppt/January 2005/PTa
1995
1996
1997
1998
1999
2000
2001
2002 2003
2006 e
Close to 16 million WCDMA subscribers to
December 2004
15 000 000
10 000 000
5 000 000
TeliaSonera SE
Cellcom
VF ES
Telefonica ES
VF IT
TIM IT
VF DE
T-Mobile DE
Etisalat
Mobitel
MTC VF
3 Hong Kong
3 Denmark
3 Sweden
mobilkom
3 Austria
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NET_general.ppt/January 2005/PTa
Dec-04
Sep-04
3 Australia
3 Italy
3 UK
VF KK
NTT Docomo
Source: EMC database, TCA Japan, press (12.01.2005)
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Jun-04
Mar-04
Dec-03
Sep-03
Jun-03
Mar-03
Dec-02
0
Sep-02
• After slow start, growth
now driven by mature
technology, more
attractive terminal
selection, competitive
services offerings and
better WCDMA network
coverage
20 000 000
Jun-02
• Faster subscriber growth
than in GSM in its early
days
WCDMA subscribers
Mar-02
• By far the highest growth
rate of any mobile
technology today – 800%
CAGR
Mobile Data
Services Are Here
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Potential of new mobile services
Over one billion paying mobile customers
form a tremendous potential
for new and innovative mobile services
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Service evolution opens large number of
opportunities
Person-to-person
services
Real time
video sharing
Push-to-talk
photo and
audio
messaging
video
messaging
Basic
Basic browsing, applications
rich terminal
personalization
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Content-to-person
services
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Short
videos
Enhanced
browsing,
versatile
applications
Full Internet
browsing experience,
high-value videos
Secure
corporate
connectivity
Messaging
and mobile
e-mail
Business
services
Improved
performance
and usability for
SMEs
Communications is becoming richer
Seamless
Push to talk voice
Rich Call
Multimedia
messaging between
mobile and PC
Access Corporate
Systems & E-mail
Real Time Video
Sharing from mobile
phone to PC
Mobile meeting with PC
and mobile terminals
Browse
Internet
Interactive on line
gaming with PC and
mobile
Rich Media
Delivery
Share Pictures, Music, Video
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November 2004 forecast of mobile services
Global Mobile Service Revenues
Entertainment
& Media
3%
P-to-p
messaging
8%
Other
data
services
1%
2003
Entertainment
& Media
10%
P-to-p
messaging
10%
Voice and
other calls
88%
Total Revenue: €400bn
Business Other
data
data
services services
4%
2%
2008
Total Revenue: €635bn
Voice and
other calls
74%
Growth in Mobile Services Market between 2003 and 2008: CAGR 10%
of which:
Voice and other calls CAGR 5% and data services CAGR 30%
“Other data services” includes Transaction Services and Advertising
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Source: Nokia November 2004
Global Mobile Services ARPU – Voice / Data
split
40
€ / subscriber / month
35
30
25
Data
20
Voice
15
10
Monthly ARPU = Total Market
revenues for Year / Average
subscriber base for year / 12
5
0
2002
2003
2004
2005
2006
2007
2008
Source: Nokia Mobile Service Forecast November 2004
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The new mobility is here
WCDMA: New 3G mobile multimedia service capabilities
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Multitasking – simultaneous voice and data
Very high-speed corporate data access
High-quality video
Mobile video telephony
Enhanced user experience through faster response time
EDGE: Seamless coverage extension for reduced set of 3G services
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•
•
•
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High-speed corporate data access
Basic video or high-quality audio streaming
Video/audio clips
Enhanced user experience through faster response times
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NET_general.ppt/January 2005/PTa
The essentials for mobile multimedia come
together
Photo and
audio MMS
Mobile browsing
MIDI
ringtones
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Interactive
applications
Video MMS
Downloadable
applications
GPRS
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Terminals
& Services
Presence
Video
streaming
EDGE & WCDMA 3G
NET_general.ppt/January 2005/PTa
Push-to-talk
The essentials for mobile multimedia come
together
Photo and
audio MMS
Mobile browsing
MIDI
ringtones
Terminals
& Services
Presence
Downloadable
applications
Video
streaming
Terminal
SMS
MMS
Management
Center
Center
WAP
Delivery Server
Gateway
Server
Packet core
GPRS
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Interactive
applications
Video MMS
Push-to-talk
Core network
Presence
Server
Intelligent
Content Delivery
EDGE & WCDMA 3G
NET_general.ppt/January 2005/PTa
PoC
Server
IP Multimedia
Subsystem
Summary
• Networks is a strong number 2 in mobile networks globally
• Extensive track record with leading operators
• Strong product and solution portfolio
• Competent and committed employees
• Strong focus on R&D
• Networks focuses on the GSM family of technologies, the dominant
technology family globally
• The number of mobile subscribers is expected to reach 2 billion in 2006
• The existing subscriber base forms a strong potential for new and
innovative mobile services
• Nokia is at the forefront of technology development enabling the new
services
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© NOKIA
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