June 9, 2011 MAKING INNOVATION WORK FOR YOU: WIRELESS DATA, SMALL CELLS

2 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent What is the difference between Science and Innovation? A Lego brick A pile of your basic Lego bricks Et voilà! A cubist post modernist miniature house design

3 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent nce you have the basic idea you can go to town … Now do something orthogonal … Add the existing stuff … +

4 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent What is Driving Innovation in Wireless? Global Internet Traffic Growth % % % % % Global Mobile Data Traffic Growth % % % 2011 (estimate)131% 2012 (estimate)113% Cisco VNI Global Mobile Data Traffic Forecast ; Feb2011 Transition to LTE will increase capacity through more spectrum and better spectral efficiency…but these gains cannot keep up with the increasing demand. Small cells will be a necessary part of the evolution to achieve the projected 26x increase in capacity required by 2015 Traffic growth and historic gains for wireless networks

5 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Where is the Wireless Traffic Growth Coming From? From a select urban study on bandwidth consumption Source: Alcatel-Lucent measurements using 9900 WNG within live networks and Bell Labs analysis Forecast consumption by device type  80%-85% of packet switched calls are originated from Smartphones  40% of 3G devices are Smartphones Worldwide Aggregate Mobile Traffic Innovation of another sort – improved end device utility is driving this growth We knew being mobile was good - historical growth in cellular voice But we always felt something was missing … a proper handset with data

6 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Traffic growth equates to base station growth Calculated Base Station Requirements in a Tier 1 City ,000 1,500 2,000 2, Base Stations Required Based on Downlink BW Based on Uplink BW Based on Erlangs Based on Signaling More energy, more space, more maintenance Source: Bell Labs synthesis of real network data with industry growth forecasts

7 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Technologies 5 Bands What’s Next? City planners resist more antennas

8 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Innovation and A radical new approach is needed … A new Lego brick 8 | February 2011 Copyright © 2011 Alcatel-Lucent. All rights reserved.

9 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Bell Labs thinking of a new way to build a BTS XXXXXXXXXXXXXX Remote Radio Head CPRI RF XXXXXXXXXXXXXX  CPRI Move RF to antenna FEEDERS Integration As flexible and modular as possible! OR Active Antenna

10 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent A new ‘Lego’-Brick as a building block for every need Small Cell Macrocell upgrade Metro Innovative Designs

11 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent One brick that contains everything ‘RF’… But: we don’t call it a brick, We call it a CUBE: Antenna PA RX Conversion Digital Interface

12 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Alcatel-Lucent unveils ground-breaking mobile technology The cube building block Simpler, Lighter... Enabling Cloud-like Networks New Baseband Processing Assets

13 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent The Future: Making antennas invisible On a façadeOn a poleOn a lamppostIn a bus stop

14 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent Wideband Active Array Antenna Creating invisible antennas - First product of its kind Multiband/Technology  Converged RAN compatible  Per band power management  Reduces # of antennas required/site Reduced Site Costs, Better Coverage Higher reliability  Loss of single element does not impact entire band (FRU) Beam forming  Reduces interference  Puts power where it’s needed Radome 3 bands 1 st Use - Smart Network Antenna Panel (SNAP)