Ericsson Community Power Overview 2010-03-17 Ericsson mobile POWER Growing communities Konstantinos Tzingakis Ericsson Sub-Saharan Africa Director: Innovations

Ericsson Community Power Overview 2010-03-17 Agenda HISTORY & BACKROUND COMMUNITY POWER CONCEPT SOLUTION OVERVIEW SUMMARY

Achieving the Millennium Development Goals Ericsson Community Power Overview 2010-03-17 Background Achieving the Millennium Development Goals ICT Key Focus Areas Combat Climate Change Eradicate Provety Drive Economic Recovery Slide owner: Communication for All Latest update: 5, May 2009 Best before date: 31, Oct 2009 Key message: MDG Goal The UN and global policy agenda puts ICT at the core of social and economic development as it is one of the few possibilities to reach people on a broad scale. Unique partnerships can yield surprising results Expanding telecom benefits society and the bottom line We are proud to lead the telecoms sector in exploring how ICT can contribute to meeting basic human needs. We do this through the development of tailored applications enabling access to healthcare, education and the establishment of livelihood relevant to consumer needs. Ericsson has committed to help achieve the Millennium Development Goals, which fight poverty, support human rights and promote environmental sustainability.

Reaching the next billion looking beyond the phone Ericsson Community Power Overview 2010-03-17 Reaching the next billion looking beyond the phone Addressable market vs telecom spending Sources: GSM Association, Ericsson estimates High growth markets / low income segments will cater for 80% of future subscriber growth Demand is also strong for tools helping operators to reach low spending users. Margins are small in this segment and new business models are required to decrease OPEX and CAPEX. Services must be offered in small quantities to meet a sachet consumption pattern. Deploying Rural networks is not enough

Ericsson Community Power Overview Communication for all Ericsson Community Power Overview 2010-03-17 Ericsson and the Millennium Villages Empowerment through communications Initially: 79 villages are grouped into 10 village clusters in Africa: Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda. Slide owner: Communication for All (Monika Byléhn) Latest update: 25 September 2007 Best before date: 30 December 2007 Key message: Partnership for social & economic development Ericsson will provide connectivity to the Millennium Villages. Its partnership with The Earth Institute is designed to bring mobile communication and the Internet to what the UN call “the poorest of the poor”. The Millennium Villages project is a community-led initiative that aims to lift rural African communities out of the extreme poverty that traps hundreds of millions of people throughout the continent. Currently working with 79 villages of approximately 5,000 people per village, the project is tackling challenges related to agriculture, health, education, infrastructure, gender equality, business development and other vital issues. The Millennium Villages project is a partnership between The Earth Institute, Millennium Promise and the United Nations Development Programme (UNDP). The integration of information and communications technology plays a critical role in ending the cycle of poverty. Around the world, mobile technologies are proving to be important tools in expediting information sharing and creating pockets of entrepreneurial enterprise among poor, rural communities. At the same time, they also enhance and boost existing systems in education, health care and business. As basic interventions are achieving success in the Millennium Villages, communications technologies can help take the fight against poverty a step further. Recently added: 2 additional cluster in Liberia and 1 in Malawi, Total of 500,000 people. Fostering economic growth and development Commercial in confidence 5

Ericsson’s Millennium Village Commitment Communication for all Ericsson Community Power Overview 2010-03-17 Ericsson’s Millennium Village Commitment In partnership with our customers in Africa: Provide mobile communication and Internet in 12 village clusters in 12 countries Rollout GSM and 3G network infrastructure Deliver mobile phones and solar village chargers Develop and deliver key applications in Healthcare Education Agriculture Micro Finance & Small Business Infrastructure and Power In partnership with our customers in Africa: Provide mobile communication and Internet to 400,000 people in 10 African countries Rollout GSM and 3G network infrastructure in each village Deliver mobile phones and solar village chargers Develop and deliver applications in areas like health, education, agriculture and infrastructure, to meet the needs of the villages Commercial in confidence 6

Ericsson Community Power Overview 2010-03-17 Agenda HISTORY & BACKROUND COMMUNITY POWER CONCEPT SOLUTION OVERVIEW SUMMARY

Technology Concept Site Solution Ericsson Community Power Overview 2010-03-17 Technology Concept Site Solution Wind generation (low wind speed) Solar generation Battery back-up Internal diesel generator with tank Intelligent self-learning power management

Dertu Kenya WIND, Solar, Applications… Ericsson Community Power Overview 2010-03-17 Dertu Kenya WIND, Solar, Applications…

Solar Chargers the business of power Ericsson Community Power Overview 2010-03-17 Solar Chargers the business of power Micro business

CONCEPT Making in practical Ericsson Community Power Overview 2010-03-17 CONCEPT Making in practical Excess power generated at BTS sites can be made available to villages in close proximity of the BTS sites Operators are able to charge for the usage of excess power The solution uses standard mobile messaging and communication methods to enable a specific power outlet Subscriber checks to see if there is excess power available. If excess power is available, the subscriber sends a message to transfer funds for power usage. Power outlet is enabled and subscriber may consume power for a specific amount of time or volume SAMPLE USE CASES Mobile phone charging booth Street & House Lighting Agriculture (Cooling systems & Water pumps) Lighting & Socket power for schools & churches Radio & TV (including broadcast stations)

Ericsson Community Power Overview 2010-03-17 Agenda HISTORY & BACKROUND COMMUNITY POWER CONCEPT SOLUTION OVERVIEW SUMMARY

Solution overview What could it look like? Ericsson Community Power Overview 2010-03-17 Solution overview What could it look like?

Solution overview THE POWER OF EVOLUTION Ericsson Community Power Overview 2010-03-17 Solution overview THE POWER OF EVOLUTION To Partner or Not To Partner? Small Start, Big Vision Simple Uses Cases Battery Charging and Lighting Medium Expansion Community TV and Radio Pumps, Clinics, Schools Large Scale Household and Business Distributed Village Grids National Integration Integration into National / Existing Grids Backup and Load Sharing

Solution overview WHAT SHOULD IT DO? Ericsson Community Power Overview 2010-03-17 Solution overview WHAT SHOULD IT DO? Access Control and Regulation Secure Access Provisioning Prioritisation Billing Direct Mobile Integration Vouchers (including reseller options) Dynamic Tariffs Time of day Available Power Demand Source Configuration and Monitoring Centralised Control, Distributed Access External and 3PP facilitation Partner and Consumer Communications Reporting (status, utilization, carbon reduction, etc.)

Ericsson Community Power Overview 2010-03-17 Agenda HISTORY & BACKROUND COMMUNITY POWER CONCEPT SOLUTION OVERVIEW SUMMARY

Ericsson Community Power Overview 2010-03-17 summary Power Stimulates Growth Start Today Use Existing Sites Start Small & Evolve Multiple Business Models Choose the Right Partners Communication and Power are Key Economic Drivers Deploy the Right Technology Scalability Flexibility Ease of Use

Ericsson Community Power Overview 2010-03-17