Networks

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Networks

• Overview presentation

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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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In a nutshell

• 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

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Networks at the heart of Nokias strategy
Drive consumer mobile multimedia
Expand mobile voice
Networks
Bring extended mobility to enterprise
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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 worlds 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

• 2004 Industry first 3GPP Rel4 architecture for
  cost savings in circuit switched voice
• 2004 Industry first commercial end-to-end 3GPP
  IP Multimedia Subsystem
• 2003 First with Push to talk over Cellular
  network products
• 2002 J-Phone launched the worlds first 3GPP
  compliant commercial 3G network with Nokia
• 2001 World's first Multimedia Messaging Service
  Center
• 2001 World's first 3G WCDMA voice call on
  commercial 3GPP system
• 2000 World's first GPRS inter-operator roaming
• 1999 World's first triple-mode (GSM, EDGE,
  WCDMA) base station
• 1999 World's first WCDMA phone call through
  public switched telephone network
• 1998 World's first High Speed Circuit Switched
  Data Network (HSCSD)
• 1997 World's first four TETRA networks ordered
  from Nokia
• 1997 World's first GSM dual band base station
• 1993 World's first Short Message Service Center
  into commercial use in a Nokia Network
• 1991 World's first GSM call made in Radiolinja's
  network, supplied by Nokia
• 1982 Europe's first digital exchange, the DX 200
• 1981 Nokia's first delivery of NMT 450 base
  stations
• 1969 Nokia's first delivery of digital
  transmission system
• 1967 Nokia's first generation of manual radio
  telephone systems

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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
• RD 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 RD, logistics
  and services

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Key figures 2004
2003 EUR
2004 EUR
Net sales (million)
6 367
5 620
Operating profit (million)
878
-219
Operating margin ()
13,8
-3,9
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Networks Strategic Intent
The worlds leading enabler of mobility
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Networks businesses have distinctive drivers
Customers
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Distinctive but interconnected strategies
Customers
Core
Radio
Win with Nokia end-to-end solutions
Drive business leadership in technology, scale
and cost
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Our strategies drive for
Growth
Leadership
Profitability
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GSM/EDGE/WCDMA the truly global mobile
technology family
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Key trends in the environmentTowards the 2
billion milestone
millions
2 billion in 2006!
2,000
1,800
1,600
Mobile phone subscriptions globally
1,400
1,200
1,000
Current global penetration 24
800
600
400
200
Source Nokia
0
2006 e
1992
1993
1994
1995
1996
1997
1998
1999
2000
2002
2001
2003
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Close to 16 million WCDMA subscribers to December
2004

• By far the highest growth rate of any mobile
  technology today 800 CAGR
• Faster subscriber growth than in GSM in its early
  days
• After slow start, growth now driven by mature
  technology, more attractive terminal selection,
  competitive services offerings and better WCDMA
  network coverage

WCDMA subscribers
20 000 000
15 000 000
10 000 000
5 000 000
0
Jun-02
Jun-03
Jun-04
Mar-02
Mar-03
Mar-04
Sep-02
Sep-03
Sep-04
Dec-02
Dec-03
Dec-04
Etisalat
3 Australia
TeliaSonera SE
Mobitel
Cellcom
MTC VF
VF ES
3 Hong Kong
Telefonica ES
3 Denmark
VF IT
3 Sweden
TIM IT
mobilkom
VF DE
3 Austria
T-Mobile DE
Source EMC database, TCA Japan, press
(12.01.2005)
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Mobile Data Services Are Here
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Potential of new mobile services
Over one billion paying mobile customersform a
tremendous potentialfor new and innovative
mobile services
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Service evolution opens large number of
opportunities
Person-to-person services
Real time video sharing
Content-to-person services
Push-to-talk
video messaging
photo and audio messaging
Business services
Full Internet browsing experience, high-value
videos
Enhanced browsing, versatile applications
Short videos
Improved performance and usability for SMEs
Basic applications
Basic browsing, rich terminal personalization
Messaging and mobile e-mail
Secure corporate connectivity
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Communications is becoming richer
Seamless voice
Push to talk
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
Business data services 4
Other data services 2
Other data services 1
Entertainment Media 10
P-to-p messaging 8
P-to-p messaging 10
2003 Total Revenue 400bn
2008 Total Revenue 635bn
Voice and other calls 88
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
Source Nokia November 2004
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Global Mobile Services ARPU Voice / Data split
Source Nokia Mobile Service Forecast November
2004
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The new mobility is here

• WCDMA New 3G mobile multimedia service
  capabilities
• 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
• 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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The essentials for mobile multimedia come together
Terminals Services
MIDI ringtones
Interactive applications
Photo and audio MMS
Video MMS
Presence
Downloadable applications
Video streaming
Push-to-talk
Mobile browsing
GPRS EDGE WCDMA 3G
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The essentials for mobile multimedia come together
Terminals Services
MIDI ringtones
Interactive applications
Photo and audio MMS
Video MMS
Presence
Downloadable applications
Video streaming
Push-to-talk
Mobile browsing
Core network
MMS Center
Terminal Management Server
SMS Center
Presence Server
PoC Server
Delivery Server
WAP Gateway
IP Multimedia Subsystem
Intelligent Content Delivery
Packet core
GPRS EDGE WCDMA 3G
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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 RD
• 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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