1 March 24, 2011 Smartphones Can Assist Efficient Use of Network Resources Ömer Mubarek Senior Member of Technical Staff Advanced Technology, Research in Motion, Ltd.

2 Overview of Network Capacity Crunch Average smartphone usage doubled in * Global mobile data traffic will increase 26-fold between 2010 and * Mobile video traffic will exceed 50% of total mobile data traffic in 2011 reaching two-thirds by * Video user consumes 15 times more bandwidth compared to web user. ** A high-def YouTube video at 2Mbps: as much bandwidth as 200 voice calls. ** YouTube videos delivered to mobile devices tripled in 2010, reaching 200 Million views per day. * AT&T reports 30-fold growth in traffic from 3Q 2009 to 3Q Telecom Italia 15-fold from 2007 to * Sources: * Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, ** Mobile Broadband Capacity Constraints and the Need for Optimization, Rysavy Research

Capacity Will Run Out Soon Note – Data are based on an operator’s busy market 3 Source: Mobile Broadband Capacity Constraints and the Need for Optimization, Rysavy Research

4 Strategies Extensive Methods Introduction of new spectrum New cell sites / spectrum reuse Offloading data to WiFi and Femtocells New technologies which are spectrally more efficient than current ones (WiMax, LTE and Evolved EDGE) Intensive Method – Efficient use of capacity Handsets can assist Lower network cost Greater number of users supported in the same amount of spectrum Lower monthly bills for usage-based models Reduced radio resources signaling between handset and network

RIM Infrastructure Optimizations Utilization of highly optimized protocols and methods of compression, trans-coding and rendering Benefits for carriers from spectral efficiencies: better capacity utilization reduced capital expenditure requirements on wireless infrastructure, For the end customer, spectral efficiency can result in reduced latency, better battery life, and lower-cost data plans and roaming charges Sample comparison results from two experiments for and web 5

6 Efficiency Superior text compression algorithms twice as efficient as common approaches as GZIP Efficient file viewers user can view only portions of the file without downloading the whole file x8.4 x9.6 x1.7 x5.9 x1.9 x8.8 x8.3 x6.3 x1.5 x7.2 x6.2 x1.5 Comparison with competition Text only: up to 9.6 times w/ Image: up to 8.8 times w/ PDF: up to 1.9 times

7 Web Efficiency Includes Web browsing as well as 3 rd Party apps (Facebook, Twitter, etc) Advanced image compression algorithms: more efficient than JPEG and GIF image compression Device type-specific trans-coding Users can specify image quality – original image quality is unnecessarily high in many cases BB x 1.8 BB x 1.5

8 Video Trans-coding Smartphone screen resolution is smaller than a monitor If transmitted video resolution is higher than device display resolution, the extra bytes are wasted Appropriate trans-coding adjusted to device screen improve efficiency dramatically. Content designed for PC monitor Handheld requires only this much for the same user experience Rest of the transmitted bytes are wasted

9 Using Technology with higher Spectral Efficiency LTE Infrastructure upgrade to LTE  LTE capable handsets [Spectral Efficiency] LTE ≈ 2 x [Spectral Efficiency] HSPA or EVDO Evolved EDGE Increased spectral efficiency using higher order modulations [Spectral Efficiency] EGPRS2-A ≈ 1.7 x [Spectral Efficiency] EDGE DL throughput further improved - doubled - by introducing a second receiver on the device EDGEEGPRS2-A FeatureSingle Carrier Higher Order Modulations Downlink Single Carrier Higher Order Modulations Downlink Dual Carrier Modulation GMSK and 8PSK UL, DL: GMSK,8PSK, 16QAM DL: 32 QAM Max throughput 296 kbps492 kbps 982 kbps

There are today > 4B GSM/EDGE users worldwide approximately 0.5B WCDMA/HSPA users Even in mature 3G networks it is not cost-effective to provide coverage outside urban centers EDGE/Evolved EDGE needed for low cost service continuity 10 3G/4G Network with Complementary 2.xG Support Purple = GSM/EDGE Yellow = WCDMA/HSPA Source: Map from GSMA (2009)

11 Why Does RIM Pursue Evolved EDGE? Seamless fallback Seamless fallback from 3G to 2G Introduced in Rel 7 of 3GPP – most recent 2G technology Complementary to 3G – not a competitor Evolved EDGE 3G / 4G Throughput EDGE GPRS Seamless fallback from 3G to 2.5G

12 Summary Network operators are working hard to increase capacity to match highly growing demand for mobile data Handsets can assist networks by using the available resources more efficiently Aggressive compression and trans-coding algorithms can reduce network resource consumption dramatically while delivering same user experience. It is essential to use high spectral efficiency technologies both for 4G as well as 2G Network efficiency is further increased by reducing radio resources signaling between handset and network.

13 THANK YOU