1 © NOKIA NET_general.ppt/January 2005/PTa Networks Overview presentation

2 © NOKIA NET_general.ppt/January 2005/PTa Contents Networks in a nutshell Key facts and figures Nokia firsts Strategic intent GSM/EDGE/WCDMA family of technologies Mobile data services are here

3 © NOKIA NET_general.ppt/January 2005/PTa In a nutshell Net sales EUR 6.3 billion, personnel 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

4 © NOKIA NET_general.ppt/January 2005/PTa Expand mobile voice Drive consumer mobile multimedia Bring extended mobility to enterprise Networks – at the heart of Nokia’s strategy Networks

5 © NOKIA NET_general.ppt/January 2005/PTa Our customers …. and many others

6 © NOKIA NET_general.ppt/January 2005/PTa 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 world’s 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

7 © NOKIA NET_general.ppt/January 2005/PTa Innovator in communication technology 2004Industry first 3GPP Rel4 architecture for cost savings in circuit switched voice 2004Industry first commercial end-to-end 3GPP IP Multimedia Subsystem 2003First with Push to talk over Cellular network products 2002J-Phone launched the world’s 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 1991World's first GSM call made in Radiolinja's network, supplied by Nokia 1982Europe's first digital exchange, the DX 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

8 © NOKIA NET_general.ppt/January 2005/PTa Dedicated team serving customers globally About 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 R&D 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 R&D, logistics and services

9 © NOKIA NET_general.ppt/January 2005/PTa Key figures 2004 Net sales (million) Operating profit (million) Operating margin (%) 2004 EUR , EUR ,9

10 © NOKIA NET_general.ppt/January 2005/PTa Networks Strategic Intent The world’s leading enabler of mobility

11 © NOKIA NET_general.ppt/January 2005/PTa Networks businesses have distinctive drivers Customers Operators focus on operational flexibility and cost Multivendor capability required Services Requires end-to-end solution capability Enables service convergence Not only mobile play Core GSM/EDGE remains a leading technology, WCDMA ramps up Focus on efficient network roll- outs and operations Multi-radio emerges Radio

12 © NOKIA NET_general.ppt/January 2005/PTa Distinctive but interconnected strategies Grow by extending offering to multivendor and managed services Services Win with Nokia end-to-end solutions Drive business leadership in technology, scale and cost CoreRadio Customers

13 © NOKIA NET_general.ppt/January 2005/PTa Our strategies drive for Growth Leadership Profitability

14 © NOKIA NET_general.ppt/January 2005/PTa GSM/EDGE/WCDM A – the truly global mobile technology family

15 © NOKIA NET_general.ppt/January 2005/PTa Key trends in the environment Towards the 2 billion milestone 2006 e Source: Nokia , ,200 1,400 1,600 1,800 2,000 2 billion in 2006! Current global penetration 24 % 2003 Mobile phone subscriptions globally millions

16 © NOKIA NET_general.ppt/January 2005/PTa Close to 16 million WCDMA subscribers to December 2004 Source: EMC database, TCA Japan, press ( ) 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 TeliaSonera SE Cellcom VF ES Telefonica ES VF IT TIM IT VF DE T-Mobile DE Etisalat Mobitel MTC VF 3 Hong Kong 3 Denmark 3 Sweden mobilkom 3 Austria 3 Australia 3 Italy 3 UK VF KK NTT Docomo WCDMA subscribers Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04

17 © NOKIA NET_general.ppt/January 2005/PTa Mobile Data Services Are Here

18 © NOKIA NET_general.ppt/January 2005/PTa Potential of new mobile services Over one billion paying mobile customers form a tremendous potential for new and innovative mobile services

19 © NOKIA NET_general.ppt/January 2005/PTa Business services Business services Basic browsing, rich terminal personalization photo and audio messaging video messaging Secure corporate connectivity Push-to-talk Full Internet browsing experience, high-value videos Real time video sharing Person-to-person services Person-to-person services Content-to-person services Content-to-person services Basic applications Enhanced browsing, versatile applications Short videos Messaging and mobile Improved performance and usability for SMEs Service evolution opens large number of opportunities

20 © NOKIA NET_general.ppt/January 2005/PTa Multimedia messaging between mobile and PC Real Time Video Sharing from mobile phone to PC Rich Media Delivery Interactive on line gaming with PC and mobile Rich Call Mobile meeting with PC and mobile terminals Push to talk Browse Internet Access Corporate Systems & Share Pictures, Music, Video Seamless voice Communications is becoming richer

21 © NOKIA NET_general.ppt/January 2005/PTa 2003 Total Revenue: €400bn Global Mobile Service Revenues Growth in Mobile Services Market between 2003 and 2008: CAGR 10% of which: Voice and other calls CAGR 5% and data services CAGR 30% Source: Nokia November 2004 November 2004 forecast of mobile services 2008 Total Revenue: €635bn “Other data services” includes Transaction Services and Advertising Entertainment & Media 3% Other data services 1% P-to-p messaging 8% Voice and other calls 88% Voice and other calls 74% P-to-p messaging 10% Entertainment & Media 10% Business data services 4% Other data services 2%

22 © NOKIA NET_general.ppt/January 2005/PTa Global Mobile Services ARPU – Voice / Data split Source: Nokia Mobile Service Forecast November 2004 Monthly ARPU = Total Market revenues for Year / Average subscriber base for year / 12 Monthly ARPU = Total Market revenues for Year / Average subscriber base for year / 12

23 © NOKIA NET_general.ppt/January 2005/PTa 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

24 © NOKIA NET_general.ppt/January 2005/PTa Video MMS Mobile browsing Presence Video streaming Push-to-talk Interactive applications Downloadable applications Photo and audio MMS MIDI ringtones The essentials for mobile multimedia come together Terminals & Services GPRSEDGE & WCDMA 3G

25 © NOKIA NET_general.ppt/January 2005/PTa Video MMS Mobile browsing Presence Video streaming Push-to-talk IP Multimedia Subsystem Interactive applications Downloadable applications Intelligent Content Delivery Photo and audio MMS MMS Center Delivery Server Presence Server PoC Server WAP Gateway MIDI ringtones The essentials for mobile multimedia come together Terminals & Services Core network Packet core Terminal Management Server SMS Center GPRSEDGE & WCDMA 3G

26 © NOKIA NET_general.ppt/January 2005/PTa 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 R&D 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

27 © NOKIA NET_general.ppt/January 2005/PTa