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

2. 2 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 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. 3 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 0nce you have the basic idea you can go to town … Now do something orthogonal … Add the existing stuff … +

4. 4 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. What is Driving Innovation in Wireless? Global Internet Traffic Growth 1997178% 1998124% 1999128% 2000195% 2001133% Global Mobile Data Traffic Growth 2008156% 2009140% 2010159% 2011 (estimate)131% 2012 (estimate)113% Cisco VNI Global Mobile Data Traffic Forecast 2010-2015; 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. 5 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 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. 6 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. Traffic growth equates to base station growth Calculated Base Station Requirements in a Tier 1 City - 500 1,000 1,500 2,000 2,500 20112012201320142015 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. 7 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 3 Technologies 5 Bands What’s Next? City planners resist more antennas

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

9. 9 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 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. 10 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. A new ‘Lego’-Brick as a building block for every need Small Cell Macrocell upgrade Metro Innovative Designs

11. 11 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 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. 12 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. Alcatel-Lucent unveils ground-breaking mobile technology The cube building block Simpler, Lighter... Enabling Cloud-like Networks New Baseband Processing Assets

13. 13 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. The Future: Making antennas invisible On a façadeOn a poleOn a lamppostIn a bus stop

14. 14 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. 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)

15. www.alcatel-lucent.com