© Copyright Ericsson AB All rights reserved1 Coverage Solutions IBS

© Copyright Ericsson AB All rights reserved2 In-Building in the News

© Copyright Ericsson AB All rights reserved3 Drivers of In-Building Deployments  End-users expect wireless service indoors –40 to 70% calls placed In-Building –“X-Files” Effect  Capture more traffic –Increase ARPU –Value Added Services  Better network performance –High Data Rates –Essential for 3G –Free up macro capacity  New revenue streams –Data services for GPRS/EDGE and CDMA/WCDMA

© Copyright Ericsson AB All rights reserved4 Obstacles of In-Building Deployments (Carrier Perspective)  Calculating Cost/Benefit –Bucket of voice and data minutes –“New adds” drives business case –Who pays?  Coverage –Some coverage from outdoor system  Control –Exclusive access –Customers want lower communication costs (like landline pricing) but also want a equal access system (neutral host)

© Copyright Ericsson AB All rights reserved5 Why are In-Building Solutions so Important? (Industry View) According to a study of 16,800 wireless users released in July 2003 by J.D. Power and Associates, 40 percent of wireless calls are placed indoors. Of these, 48 percent are conducted at home, 21 percent at work and 31 percent inside other structures, such as a shopping mall. The same study finds that the dropped or disconnected calls are the biggest bugbear for 32 percent of users, with static or interference a close second with 29 percent nuisance rating. Signals Ahead, April, 2005 Unstrung Insider, February 2004 While in-building coverage has played a far more limited role in this drive to improve service quality in years past, the increased emphasis on data services in next generation networks, as well as renewed focus on the lucrative enterprise market, is forcing wireless carriers to reassess this market. ABI Research, In-Building Wireless Systems 2004

© Copyright Ericsson AB All rights reserved6 Why are In-Building Solutions so Important? (Ericsson’s View) In a UMTS network…the addition of in-building systems has the potential to increase network capacity up to 400 percent. Moreover, cost per subscriber, including the cost of the in-building system, can be reduced 67% Launch of in-building cell Traffic per cell (Erlang) Significant new traffic In-Building cell traffic Time Macro cell traffic Experience shows that an investment in Ericsson In- building Solutions usually pays for itself within 12 to 24 months. For a wireless office solution, the payback time can be as short as a few months Capacity is power independent In GSM: Coverage depend on RF power, sensitivity and C/I Capacity determined by number of channels used Power is Capacity !!! In WCDMA: Coverage/capacity inter- dependent in the downlink Indoor users consume more of the resources*

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 UMTS Case Study

© Copyright Ericsson AB All rights reserved8  Each Operator has their own antenna systems at or above rooftop level  Good outdoor and in-vehicle coverage  Coverage into building not guaranteed  Macro sites difficult to acquire in historic centers or in environmentally sensitive areas  Minimum one base station per site  Typical cell range : 1 – 10 km (0.6 to 6 miles) Typical Macro Coverage Layer

© Copyright Ericsson AB All rights reserved9 Indoor coverage probability from macro network HSDPA (5 codes+16QAM) Site to site: 800m 60x120m 45x45m Pr { DL>384 kbps/sub } Low load Pr { DL>1 Mbps/sub } Low load 83% 69% 92% 99,5%

© Copyright Ericsson AB All rights reserved10 Indoor coverage probability from macro network HSDPA (5 codes+16QAM) Site to site: 800m 60x120m 45x45m Pr { DL>384 kbps/sub } High load 93% 85% Pr { DL>384 kbps/sub } Low load 92% 99,5%

© Copyright Ericsson AB All rights reserved11 Indoor WCDMA coverage macro network Summary Even with site-to-site distances of 800m in the macro network, WCDMA uplink coverage will not be complete in larger buildings Even at low loads and close site-to-site distances, it will be difficult to guarantee good coverage for high bit-rate services (> 1 Mbps) on the downlink, especially in larger buildings At high loads, it will be difficult to guarantee good coverage even at moderate bit-rates (> 384 kbps), especially in larger buildings.

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 In-Building Market

© Copyright Ericsson AB All rights reserved13 Target In-Building Venues  Most In-Building Installations target the following venues: –Airports and Subways –Shopping Malls –Hospitals –Enterprises  Can be Single Operator or Multi- Carrier Systems  Owner participationship varies (case by case)  Many venues require a converged system (Cellular Voice and 802.x technology)

© Copyright Ericsson AB All rights reserved14 In-Building Solution Types REMOTE UNIT RBS Fiber cable Active DAS TX/R Level 3 Level 2 Level 1 Level 0 Passive DAS

© Copyright Ericsson AB All rights reserved15 In-Building Solution Types  No power supply required  Can cover up to large buildings  Excellent reliability  No integrated alarm and supervision  Capacity independent (RF power provided by RBS/Repeater)  Full band  Active components  Power supply required  Integrated alarm and supervision function  Band limited  Ideal for large buildings or campuses  Coverage dependent on capacity  Can be used with low power RF source  Flexible to expand coverage Passive DAS Active DAS

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 LGC Wireless Andrew ADC Powerwave Spotwave RadioFrame ip.access EMS Northstar MacTech Goodman WFI InCode LCC BCI Mobile Access Nortel Nokia Siemens Lucent Product and Service Vendors Services Base Station/Repeaters In-Building Solutions –Supplier Landscape Products Andrew InnerWireless JCI Kathrein Mars

© Copyright Ericsson AB All rights reserved17 Current and Projected Deployment Costs Source: ABI Research, In-Building Wireless Systems 2004

© Copyright Ericsson AB All rights reserved18 Current and Projected Deployments Source: ABI Research, In-Building Wireless Systems 2004

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 Product Portfolio Overview

© Copyright Ericsson AB All rights reserved20 Ericsson IBS Philosophy  Every building is unique  A broad and flexible portfolio gives most cost effective solution  From a mobile network perspective, the in-building site is just another site  One product or solution does not fit all building types

© Copyright Ericsson AB All rights reserved21 Solution Offering Overview  Antenna Systems - Passive coaxial - Fiber optical - Radiating cable - Hybrid Solution  Radio Base Stations - IP Backhaul Transmission - main/Remote Units  WLAN and DAS integration  Multi-Operator combining box  Enterprise solutions - Network based - PBX based  A complete service portfolio  Training

© Copyright Ericsson AB All rights reserved22 0 Passive Coaxial Cable DAS Solution RBS/BDA The RF signal from the base station/BDA is distributed throughout the system Antennas Coaxial cables Splitters/Tappers Combining Box

© Copyright Ericsson AB All rights reserved23  Supports all wireless bands from 800 MHz to 2500 MHz  Excellent reliability  Cost efficient  380 MHz support in roadmap –Public safety  Supports up to large buildings Passive Distributed Antenna System

© Copyright Ericsson AB All rights reserved24 Active Fiber Cable DAS Solution RF signals from the RBS/BDA are converted to an optical signal and transported to the Remote Units. The Remote Unit converts the signal back to RF that are distributed via a small coaxial system. Remote Unit Master Unit Fiber Passive system Local Interface RBS/BDA Remote Unit

© Copyright Ericsson AB All rights reserved25  Available for all cellular bands from 800 MHz to 2500 MHz  Single-, Dual- and Triple-band versions  Varying output power for optimized performance/cost  Interconnect link for remote local interface  Combines with passive distribution  Outdoor versions Fiber Optic Distributed Antenna System

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 Business Case Considerations

© Copyright Ericsson AB All rights reserved27 Example of In-Building Solution Impact New traffic portion: 78% Building characteristics 4-storey building System characteristics 35 antennas RBS 2202 Areas covered: Basement car park Ground floor 1st to 3rd floor Erlang Time Shopping mall (I) Macro cells Indoor cell Total traffic

© Copyright Ericsson AB All rights reserved28 Example Traffic and Revenue  For Operator’s using fixed tariffing (”bucket of minutes”), increased traffic is not a business concern unless –There is substantial roaming traffic (national/international)  Most Revenue calculations based on ”New Adds” but should also include Value Added Services Impact, Churn and Performance improvements

© Copyright Ericsson AB All rights reserved29 Example CAPEX and OPEX Many different financial arrangements can be used to lower or spread-out the initial and on-going costs incurred

© Copyright Ericsson AB All rights reserved30 Example Return of Investment Based on a long MTBF rate (min of 20 years), most installed DAS systems will provide reliable service well beyond the initial investment period. Furthermore, since DAS systems are technology transparency, little or no cost is required to upgrade for new technologies

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 Solution Portfolio Overview

© Copyright Ericsson AB All rights reserved32 In-Building Services portfolio  Project Management  RF design  Implementation engineering  Installation  Integration and verification  Acceptance testing  Optimization  Operation and maintenance  Business Consulting  Customized services  Engineering documentation  Training

© Copyright Ericsson AB All rights reserved33 Business Support

© Copyright Ericsson AB All rights reserved34 In-Building Implementation Process 1. Input Data 2. Preliminary Design 3. Site survey and test measurements 4. Design proposal 7. Acceptance Test 5. Implementation 6. Integration and Commissioning

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 In-Building Tools

© Copyright Ericsson AB All rights reserved36 TEMS Light TEMS Pocket TEMS Transmitter TEMS Light TEMS Transmitter Case TEMS Transmitter TEMS Pocket IBS Tools Ericsson IBS tools help delivery projects efficiently with high quality

© Copyright Ericsson AB All rights reserved37 Process Efficiency Approach- Quotation Tool

© Copyright Ericsson AB All rights reservedFirst Quarter Report April 2004 In-Building Reference Project

© Copyright Ericsson AB All rights reserved39 Taipei Financial Center, Taiwan  World Tallest Building (508m/1667ft)  101 floors above ground, 5 below ground  Shopping area from B1 to 6 floor open to public in November 2003  Tower block from 7 floor to 90 floor mainly offices for banking and trading  Observatory point at 101 floor, open to public on 1st January 2005  All floors to be in operation by Mid 2005  World fastest lifts, 1008m/3307ft per minute World tallest building

© Copyright Ericsson AB All rights reserved40 Solution overview Total of 8 Cells - 4 passive - 4 active Passive solution - Ericsson Tripleband combining box - A Bandpass filter for each GSM900 RBS preventing interference from the CDMA800 Tx. - A 10 MHz guardband between the CDMA800 and the GSM900 Active solution -CDMA 800/GSM900/ GSM1800/ WCDMA Lift coverage - Remote units installed above the lift car

© Copyright Ericsson AB All rights reserved41 Coverage area 4 Million ft 2 Total coaxial cable length: 164,040 ft Total optical fiber cable: 65,616 ft (using Ericsson Ribbonet solution) Number of omni-directional antenna: 800 Number of directional antenna: 400 Tripleband Remote Units: 184 CDMA800 Remote Units: 123 Taipei Financial Center in numbers