1. Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson believes in an all communicating world where telecommunication is affordable for all

2. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Source: The Economist - March 10, 2005 On March 14 United Nations launched a Digital Solidarity Fund

3. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Some facts... In the next 5 years, another 1B subscribers are forecasted in the GSM networks, whereof BRIC (Brazil, Russia, India and China) cater for over 400 Million. Source: EMC and UN statistics end 2004 People in poor countries spend a larger proportion of their income on telecommunications than those in rich ones. Source: The Economist, March 2005 A developing country which had 10 more mobile phones per 100 population between 1996 and 2003 would have enjoyed per capita GDP growth that was 0,59 percent higher than an otherwise identical country. Source: London Business School, 2005 A mobile network costs 50% less per connection than fixed lines and can be rolled out appreciably faster. Source: Vodafone Policy Paper, March 2005 97% of the population in the villages investigated knew about mobile telephony and 50% had used mobile phones. In contrast, 76% did not know what a computer is and only 3% had used one. Source: Socio-economic study in Tanzania by UNDP/SIDA, autumn 2004

4. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Reaching 3 billion users… 1 billion 2 billion 6 billion Users Usage Increase Usage Increase Penetration

5. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 … with end-user spend of only 3,5 USD per month! 05001 0001 5002 0002 5003 0003 5004 000 10 6,7 5 3,3 Potential subscribers USD/ month mobile spend 2008 2004 Millions of users Current penetration

6. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Can you achieve – High margins with low ARPU? Profitability with low tariffs? Profitability with pre-paid?

7. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Yes – Low ARPU with healthy margins! Source:Merril Lynch – Global Wireless Matrix 3Q2004

8. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Yes – Low tariffs with healthy profitability! Source:Merril Lynch – Global Wireless Matrix 3Q2004

9. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Yes – Pre-paid with healthy profitability! Source:Merril Lynch – Global Wireless Matrix 3Q2004

10. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Low ARPU markets can have high margins! Low tariffs do not have to hurt profitability! Pre-paid does not necessarily lead to low profits! It is how well the business is managed that matters! Yes!

11. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Market potential - an estimate of the potential (Source: World Resource Institute) 680 million households in 20 emerging markets making less than US$ 6000 anually / household Total households annual earning, US$ 2 trillion Willingness to spend 5% on telecom connectivity (excluding applications & enterprise) Total annual potential market, more than US$ 100 billion. Huge market potential in emerging markets

12. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 The power of mobile telephony Mobile phones substitute for fixed phones in poor countries, but complement fixed lines in rich countries Mobile phones are lower cost and far quicker to roll out than fixed lines Higher mobile penetration leads to higher GDP Access to mobile communication saves travel time etc

13. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Market characteristics Mobile the only phone Cash economies Initially willing to share subscription (or pay per use) Lack of basic utility and communication infrastructure in rural areas Business is good for development and development is good for business Ian Johnson, World Bank, Vice President Sustainable Development. Traffic based... And subscriber based

14. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Areas to address when extending access to more users Phones Infrastructure Applications Customer handling New business models Financing Regulation and taxation

15. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 The phone! Evolution from shared phones to individual phones Village phone Family phone Personal phone

16. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Targeted applications are needed 4 priority areas identified Healthcare information campaigns treatment Education information sharing Internet access Mobile banking money transfer mobile wallet B2B trading pricing / market info hiring

17. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Technology Leapfrogging Developing markets are not hindered by high levels of fixed investment therefore operators can leapfrog directly to new technologies and this is happening (WiMAX, EDGE, GPRS, 3G, WLAN etc) Operators in many emerging markets are providing advanced services within months of their introduction in the developed world.

18. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Population in GSM Markets without coverage Population with GSM coverage, but no subscription GSM Subscribers 2,200 2,600 1,400 Non GSM Markets World population 6.4B GSM provides global coverage Cost efficient coverage Optimized entry solutions Scalability Cost efficient capacity New services Improve quality Sources: EMC and UN Q1 2005

19. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Sharing of infrastructure among operators Revenue Coverage Savings Shared Networks Other examples of sharing: Roads Airports Other infrastructure Other examples of sharing: Roads Airports Other infrastructure Core network Transmission Radio network Network Mgt Core network Transmission Radio network Network Mgt

20. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Network Operator 1Operator 2 Operator 3 Network Operator 1 Operator 2 Operator 3 Network Consumers Network Operator 1Operator 2 Operator 3 Operator 1 Operator 2 Operator 3 Consumers 3% penetration 20% penetration Benefits with shared networks

21. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 The transmission challenge Trade-off between capacity and distance Satellite more cost-efficient Microwave more cost-efficient Normal mobile network (for surface coverage)

22. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Outsourcing of operations - rightsizing capacity Traditional purchasing Managed Capacity Time Customer demand Over capacity Under capacity Over capacity Under capacity

23. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Evolution towards more advanced services Adding data to the existing voice network URBANSUB-URBANRURAL Add data : Introduce GPRS Network capabilities Voice: GSM (existing nation-wide coverage) Increase data speeds : Upgrade of existing GSM/GPRS to EDGE

24. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Cost for data alternatives Edge is cheapest if aiming at national deployment Edge WiMAX Number of users CAPEX (in MSEK) CPE cost around 300 USD No CPE cost, as EDGE will be built in to all phones in the future Note that this graph is only illustrative, and does not give any exact indications

25. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 The challenge with WiMAX BC In emerging markets, how many computers are there within a radius of 20 km? 20 km GSM gives universal access WiMAX adds capabilities to regions where the digital divide is already bridged

26. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005 Conclusion Fixed networks will not be built out for voice services in emerging markets. Mobile networks will be the dominant infrastructure. Cost-efficient infrastructure, useful applications and low cost terminals are needed. New business models may be needed to overcome hurdles for operators to target low-spending users Voice and SMS services will be the initial services, but data capabilities can easily be added to this infrastructure when needed

27. Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example. Logotype as sender Headline 40 pt Sub-headline 24 pt Text 24 pt Marrakech, September 19th 2005