1 © Nokia G for people and things Key to the programmable world i Public

2 © Nokia G will change the world Public 10 years on battery 100 Mbps whenever needed Ultra reliability x more devices x more traffic M2M ultra low cost >10 Gbps peak data rates <1 ms radio latency Massive machine communication Extreme Mobile Broadband Critical machine communication

3 © Nokia 2016 The Simple Formula: 5G = R1+R2+R3+R4 Public

4 © Nokia 2016 Extreme mobile broadband Public Connectivity + XXL broadband Performance Virtual realityUHD video „ + “= content + tariffing / packaging Connected home 4k Video 8k Video beamer Real time work in cloud Advanced monitoring Virtual presence

5 © Nokia 2016 Unlocking new spectrum assets | Foundation for 5G Public Leveraging all bands, ranging from ~400MHz - 100GHz Pre-commercial 73GHz system, 15Gbps over 2GHz World’s 1st trials on shared spectrum access Spectrum Availability 400 MHz3 GHz30 GHz10 GHz90 GHz6 GHz cmWave mmWave Carrier BW Duplexing Cell size CoverageCapacity Different characteristics, licensing, sharing and usage schemes Leading METIS I & II spectrum work package 100 Mbps x10,000 x>10 Gbps<1 ms higher capacity and massive throughput  continuous coverage, high mobility and reliability

6 © Nokia 2016 Public Increasing synergies between Fixed and Mobile Investment needs drive convergence THE MOBILE OPERATOR PERSPECTIVE THE FIXED OPERATOR PERSPECTIVE Push OPEX down Push ARPU up Rapid bandwidth increase Technology Evolution More Diversified More Dense Metro & small cells Deep fiber penetration C-RAN, LTE-A, 5G MBH, Fronthaul, Midhaul, WiFi offload Explosive mobile traffic growth Gigabit Networks with up to 10 Gbps for residential users Vectoring, G.Fast TWDM-PON, R- CCAP FTTH, FTTN, FFTDp, FTTB, HFC Offer MBH over FTTx Deliver on the promise of 5G FTTN FTTH FTTB FTTdp FTTP Enterprise small cell Metro cell WiFi hot spot Home small cell 3G/4G Macro CPRI Fronthaul 5G

7 © Nokia 2016 Public From pre-standard products and trials to fully standardized 5G solution Extreme broadband to every home Fixed wireless access 1Gbps to the home 5Gbps capacity G ready BB to the home (pre-standard) 5G Ready Product Novel mobile experience for communities G extreme mobile BB (pre-standard) Field Trial Mobile wireless access 2018 Winter Games Full mobility 10Gbps peak 1ms radio latency Various bands supported Internet for people and things 2020 Interoperable 5G (3GPP compliant) Commercial Security and Privacy Pervasive 5G connectivity 2020 Games, EuroCup Full band support for extreme throughput & wide area coverage Unlicensed bands Dual connectivity with LTE 10Gbps peak commercial

8 © Nokia x coverage compared to current LTE New coding Repetition and power spectral density boosts Power saving Longer sleeping cycles* Less signaling for wakeup Power Save Mode Simplified modems Narrowband transmission Reduced transmit power Limited downlink transmission modes UE processing relaxations … Slim Radio | Low cost & power for massive machine type communication Public NB-IoT for small, infrequent & low cost data transfer Driving for availability in 3GPP Rel.13, 2016 Live trial with KT MWC 2015 First live demo on commercial Nokia FlexiZone and core >10 years Battery life with two AA batteries Very low device cost *) Extended Discontinuous Reception (DRX) +15~20 dB coverage 10 years xultra low

9 © Nokia 2016 Public 5G autonomous driving - world’s first Connected mobility will become a reality Autonomous cars, solely steered by 5G live network 1 ms latency and ultra reliability for fast moving vehicles 5G architecture for overall car traffic performance Up to 4 times more cars on existing roads possible Close to zero fatalities; 1 million lives saved 0 Personal time gain due to traffic optimization 1 hour day

10 © Nokia 2016 Public Future X Network: Latency Matters...

11 © Nokia years100 Mbps x10,000 xultra low>10 Gbps<1 ms Fast traffic forwarding | Enabling a new generation of latency critical services Public Lowest latency packet forwarding to UEs + Autonomous driving live demo Pioneer in Mobile Edge Computing Vehicle2Infra trial on German motorway Mission-critical services, e.g. in V2X or industrial applications Moving virtual networks Central cloud based> 50 ms latency Mobile Edge LTE  10 ms 5G Edge  2,5 ms 5G D2D  1 ms <1 ms 5G AP 5G AP2 5G AP Application server Mobile Edge cloud computing Native D2D Core Cloud RadioAggregationCoreUEs ETSI ISG Chair

12 © Nokia 2016 Future Network | Global – Local is the New Opportunity Public Think Global – Act Local Local Forces Low Latency & High Bandwidth Trusted Brand Relationship Personalization & Contextualization (with Privacy) Economies of (secure) Delivery Global Forces Ubiquitous Access to digital Content Brand Power Omniscient Perspective & Analytics Economies of Scale Control Content Cloud Connectivity

13 © Nokia 2016 How will operators make money from 5G? Public 1.Operators will charge subscribers or content providers a premium for 8K / 4K / Virtual reality connectivity – at least at first! 2.Massive connectivity will have security and trusted partner issues unless deeply controlled by operators. We believe operators will make money from providing the application hosting / analytics in a safe way for companies. Very limited OTT applications. Network slicing and information brokerage become key to an operator. 3.Critical communications will require a completely closed and controlled system and analytics environment – with mobile edge computing at the heart.

14 © Nokia 2016 Conclusions Public 5G will be characterised by 3 use cases: Ultra high broadband Massive connectivity Critical connectivity Whereas 2G, 3G, 4G and to a certain extent 5G ultra broadband have established OTT players as a driving force Massive connectivity and critical connectivity will be characterised by hosting / application business cases in a locked down and trusted system environment – through network slicing.

15 © Nokia 2016 i Public