NOKIA FUTURE X

Network Evolution – MINTEL

Wilson Cardoso (Ph.D)

Chief of Solutions Officer – Latin America

1 © 2017 Nokia
2 © 2018 Nokia
Today…

3 © 2018 Nokia
We’re developing
disruptive innovations
for the next phase
of human existence

4 © 2018 Nokia
We’re interfacing
physical and digital
realms to automate
life and create time

5 © 2018 Nokia
Automation of everything –
the next technological revolution

Pervasive digital-physical Transforms economy and Fundamental digital needs

systems drive life and society and creates time demand radically new

1 2 3
business automation network architecture

6 © 2018 Nokia
Megatrends are changing the world

Network, Internet Augmented Human Social & trust Digitalization

compute of Things intelligence & machine economics & ecosystems
& storage interaction
Broadband every- Connectivity for Human assistance Virtual and Sharing economy Digitalization
where, distributed a trillion things and task automation augmented reality, and digital currencies of operations
cloud, near infinite at machine scale reshaping how we making trust and expanding into
storage interact with security essential consumer and
machines biology

7 © 2017 Nokia
The next decade…

8 © 2018 Nokia
Network demands…

Seemingly infinite Imperceptible latency Global-local alliance

network capacity to will matter as much Next level productivity,
support ubiquitous VR as bandwidth convenience,
and entertainment

100x >1ms
9 © 2018 Nokia
 The Future X Network - the radically new architecture

Digital Value Dynamic

7 Web, Enterprise 8
Platforms & Vertical apps Data Security
External data sources • New trust framework
• Ecosystem sharing
Augmented
6 • Mass edge monitoring
Cognition Systems
Analytics Machine
learning
Open APIs
Management &
Orchestration
Programmable
5 SDN NFV
Network OS Dynamic customer Dynamic network Multi-operator
services optimization federation

4 Universal
Adaptive Core Access agnostic Modular, decomposed Common
converged core network functions data layer

Short
Autonomously Core waves
optimized coverage cloud & wires
& capacity Long
Software- fibers
defined

Converged
0 Emerging Devices 1 Massive Scale 2 Converged 3 Smart Network Node
& Sensors Access Edge Cloud Fabric

10 © 2017 Nokia
…is evolving quickly

11 © 2018 Nokia
2.5x
capacity breakthrough
for massive undersea
cable transmission

12 © 2018 Nokia
 Neural networks that
act as a sixth sense
and fit into the smallest of
personal and household devices

13 © 2018 Nokia
10 Gbps
Ground-breaking
symmetrical data over
copper and coax lines

14 © 2018 Nokia
An instrumented skin
for continuous
in-body diagnostics

15 © 2018 Nokia
 Game-changing
edge cloud
technology
provides hi-res VR
with no network impact

16 © 2018 Nokia
10x
bandwidth for future 5G
small cells with millimetre
wave antenna arrays

17 © 2018 Nokia
5x
decreased storage needs
using advanced video
transcoding technology

18 © 2018 Nokia
19 © 2018 Nokia
Smartphone is the life hub for media,
social interactions & services
As attention is shifting from TV and fixed internet to mobile and smartphone integrates
always more services, e.g. mobile money, virtual assistant, etc.
Percentage point change in Percentage of time spent
% time spent US (2011-2015) % in media US (2016)

TV / Radio / Print Fixed Internet

Mobile Mobile TV Print

Source: KPCB Internet Trends 2016 & 2017

20 © 2018 Nokia
Internet & mobile users continues to grow, but harder to gain
new users in developed markets due to high penetration

Global evolution of mobile subscribers

Million
of users
16%
CAGR • 90% of new subscribers by
2020 will come from
developing markets,
reaching 7.4bn mobile
connections worldwide
• China leads market in size
and India & LAT lead
56% smartphone growth with
CAGR
9% CAGR (‘16-’20)
• MEA drives mobile data
growth (71% CAGR,
followed by APAC & CE)

Adoption
rate 4% 6% 8% 13% 20% 28% 37% 44% 50% 55% 59% 62% 65%

Source: GSMA, 451 Research

21 © 2018 Nokia
Current planned technologies and strategies can only partially
address the opportunity gap
Technology delivery capacity mapped to daily
data consumption needs up to 2020 Exabytes
7,7 per day

1,5 Unmet demand

‘Connectivity
Gap’ 0,2 Planned tech + alternate business models
0,9 3G + LTE (4G) and small cells

4,3 Wi-Fi

2014 2015 2016 2017 2018 2019 2020

Source: Nokia Bell Labs

22 © 2018 Nokia
Source: Nokia Bell Labs
Operators announce 5G anticipation to 2018-19
This demand anticipation is coming manly from US and Asian countries
Operators are announcing plan updates 5G adoption rate anticipation

Anticipation
?

2018 2019 2020

Source: Press clipping

23 © 2018 Nokia
5G market will start with enhanced mobile broadband
Nokia market view and derived engagement

Enhanced mobile broadband market starts

High capacity and coverage Two market segments
Ultra high capacity
<6 GHz High capacity and coverage
Extreme • Megacity capacity densification
>6GHz Mobile • 3 to 6GHz ~100MHz BW
Broadband • Dense urban grid
2018 2019 2020 2021

Ultra high capacity

Machine markets will start 2022+ • Ultra dense use cases
• Need for coverage layer and Massive Critical • cm/mmWave
low cost devices machine machine • Short range, LOS preferable
• Verticals not expected to be early communication communication
adopters for 5G (low expertise)
• Earlier trials to test technology and define business models

24 © 2018 Nokia Public

Consumers are massively adopting big data consumption
habits driven by video driving exponential data growth
Projected increase in data analyzed
in the coming decade
Zettabyte High
per year Growth
9,9 ZB
Exabyte
per year 240

160
~x10
factor

15 ZB

2015 2020 Low

Growth Assumes 100% of all
2,5 ZB new IoT and video
Assumes 20% of all new
(IoT and video
2011 2013 2015 2017 2019 2021 2023 2025

Notes: 1024 Gigabytes = 1 Terabyte, 1024 Terabytes = 1 Petabyte, 1024 Petabytes = 1 Exabyte, 1024 Exabytes = 1 Zettabyte, 1024 Z ettabytes = 1 Yottabyte
Source: Nokia Bell Labs; Tubular Insights
25 © 2018 Nokia
Consumers take connectivity for granted…
and expect it for free
IP Voice & messaging, Wi-Fi offload with most of consumption on home Wi-Fi or hotspots
Traditional paid services are ... as free or low cost
finding it hard to justify service alternatives set consumer
premium…
Content & media price expectation
Content & media In 2015, operators lost
8% of voice minutes to
services services IP voice apps
Data Free unlicensed spectrum
Paid license Paid voice, msg & services only (2.4GHz, 5GHz)
spectrum data services Cheap adhoc networks IP voice & messaging
(Wi-FI, etc.) app users will represent
1/3 of all mobile users in
Structured 2020
networks
(xG /
Fixed))

(1) Other Top Services

Source: Ovum; Team Analysis
‘Heavy’ ‘Light’
26 © 2018 Nokia model model
Enterprises & Governments look up to cloud & IoT for cost
reduction, new tailored customer services and
faster time-to-market
Has the perception on Cloud security improved to allow ‘crossing the chasm’?
Cloud based technology adoption curve

Competitive Education
advantage eHealth
Digitization

Reduce debt & ‘me too’

re-ignite growth
Productivity (e-gov) Time-to-market
(ex. startups)
Defense / security

Early Early Late Laggards

Innovators
adopters majority majority
Chasm due to
security concerns
Enterprise trends Public sector trends
27 © 2018 Nokia
Public + Private clouds spend approaching
Traditional Data center’s
Reaching $36b in 2016 and 50% in 2020
IT infrastructure spend breakdown (Global)
%

$36b

Private Cloud

Public Cloud

Traditional data center

Source: IDC Worldwide Quarterly Cloud IT Infrastructure Tracker; Gartner; CloudHealth estimates
28 © 2018 Nokia
Clouds are also evolving
Four main trends
New Methods of
Software Delivery
APIs / Browser Extensions…
creating new wave of
capabilities (+ companies) for
both companies and end
users
29 © 2018 Nokia
Containers /
Microservices
Simplify software
development process /
improve consistency between
testing & production
environments / reduce
complexity of managing &
updating apps due to modular
approach
Elastic Analytical
Databases
Likes of Google BigQuery /
Snowflake / AWS Redshift
Spectrum nearly
infinitely scalable / usage
based + have minimal
maintenance requirements
Edge
Computing
Pushing compute away from
centralized nodes & closer to
sources of data, addresses
many IT challenges when
running data-centric
workloads in cloud, reduces
latency / can have security +
compliance benefits
With the reduction of IT processing & storage costs,
enterprises are accelerating their digitalization efforts

Enterprises Digital

People Social

Process Data Analytics Mobile &

Cloud

30 © 2018 Nokia
By increasing the number of Enterprise applications …
vulnerabilities increase and recent past shows severity of the
attacks is also increasing
Spam, phishing, malware, virus, ransomware, etc.
Number in volume of attacks increases… … also the percentage of
(using spam as proxy) malicious attack increased

Source: AntiPhishing Working Group Phishing Activity Trends Report - Q4 2016; IBM X-Force Threat Intelligence Index 2017
31 © 2018 Nokia
Facing slow down in subscriber acquisition & persisting challenges
in data monetization, operators need to seek other revenue
sources…
Operator’s revenue growth … and explore growth levers, plus …..driving the need to seek other
is slowing down… optimize COGS but with limited revenue sources
success 3
Increase • Device/OS
1 • Connectivity
• Connect the consumer
unconnected ‘share-of- • Content/App
Grow • Roaming (soft SIM, wallet’ • Banking/Payment
1,8%
CAGR revenues multiSIM) • TV/media
• Increase Broadband
4
usage (incl. Cloud &
Increase • IT integration
Enterprise)
enterprise • Cloud provider
‘share-of- • Etc.
2 wallet
Optimize • Operational efficiencies
costs • Gain scale 5
New • Mobile Ad
revenue • Banking
models

Source: Nokia 2016Q2 market forecast

32 © 2018 Nokia
 Network data monetization
Challenge: Finding new revenue streams faster

1) Movement patterns 2) Real business insights 3) Easily available

based on Bell Labs ML algorithms, to help operators answer real-life always-on for retail,
enriched with other data sources business questions from verticals transportation, advertising &
tourism
Points of sale
Where to build new bridges
Office Favorite
routes How to optimize bus routes

How to validate a shop location

Home
Favorite
holiday
Where to focus advertising
spots
Social media Store benchmark with competition
Demographic
data
Crowd Insights Crowd Insights Crowd Insights

40% higher local shopping mall traffic

33 © 2018 Nokia
Attention Points for
Ecuador
based on
Future X…..

34 © 2018 Nokia Confidential

 Point 1: Massive Scale Access – 5 G Introduction

35 © 2017
2018 Nokia
How 5G can be implemented….
Area: +/- 1 km2
Maximal number of connected users in the area:
1,200
Sites: 3 Macro Sites
Optical Fiber: 6.0 km (backhaul)

LTE Spectrum available:

20 MHZ @ 1700 MHz
15 MHz @ 1900 MHz

Total spectrum: 35 MHz

Traffic per site: 35 MHz x 1.85 bps/Hz/cell x 3 cell
Traffic per site: 0.194 Gbps

Min. traffic per user: 0.194Gbps / 400 = 0,485 Mbps

36 © 2017 Nokia
First movement do 5G  3.5 GHz over the existing Macro Layers

Radio and Antenna Characteristics

• Supported 3GPP TDD band n41:
▪ UL and DL 2496 MHz – 2690 MHz
• Integrated antenna with 128 antenna elements, +/-45 degree cross polarized, 8 columns, 8 rows
• Max occupied BW: 60 MHz in Full-Panel mode, 120 MHz in Split-Panel mode

NR feature support
• NR carrier bandwidths supported: 20, 40, 50, 60 MHz
• Split-Panel mode supports concurrent operation NR + LTE with 8 MIMO layers per technology

Others Characteristics
• Supported Technologies: 5G NR and concurrent operation with LTE TDD

5G 3500
mMIMO High rates with
LTE AWS 1700 MHz grid

37 © Nokia 2017
How 5G can be implemented….
Area: +/- 1 km2
Maximal number of connected users in the area:
1,200
Sites: 3 Macro Sites
Optical Fiber: 6.0 km (backhaul)

Spectrum available:
20 MHZ @ 1700 MHz
15 MHz @ 1900 MHz
50 MHz @ 3500 MHz

Total spectrum: 35 MHz @ LTE

Traffic per site: 35 MHz x 1.85 bps/Hz/cell x 3 cell
Traffic 5G: 50 MHz x 8 bps/Hz/cell x 3 cells

Min. traffic per user: 0.194Gbps / 400 = 3,485 Mbps

38 © 2017 Nokia
Second movement: adding band n257 (28 GHz) to the network

AEUD AEUE
• 5G RF Unit with an integrated beamforming antenna
• 180° sector (AEUD) and omni 360° site solutions (AEUD + AEUE)
• Analog beamforming
• Operating bandwidth: 26.5 GHz … 29.5 GHz
• Instantaneous bandwidth: 800 MHz
• Occupied bandwidth 1400 MHz
• Carrier bandwidth: 50/100/200/400 MHz
AEUD
• Number of carriers: up to 8 AEUE
• DL/UL modulation schemes up to 256 QAM /64 QAM
• Number of TX / RX layers/ports per carrier: 2 or 4 • IP65 -40 … 55 °C
• Number of MIMO streams / beams: 2 • 10 kg (AEUD), 5 kg (AEUE)
• Total EIRP (typical): 51 dBm • 10.5 L (AEUD), 5 L (AEUE)
• forced cooling with fan for AEUD.
Convection cooling w/o fan for AEUE
• DC or AC power
Note: Subject to change according to 3GGP 5G specifications and product optimization

39 © Nokia 2017
Unlimited capacity to the network….
Area: +/- 1 km2
Maximal number of connected users in the area:
1,200
Sites: 3 Macro Sites + 5 NR per Macro
Optical Fiber: 6.5 km (backhaul)
7.8 km (fronthaul)

Spectrum available:
20 MHZ @ 1700 MHz
15 MHz @ 1900 MHz
50 MHz @ 3500 MHz
800 MHz @ 28 GHz
:
Traffic LTE: 35 MHz x 1.85 bps/Hz/cell x 3 cells
Traffic 5G: 50 MHz x 8 bps/Hz/cell x 3 cells
Traffic 5G: 800 MHz x 8 bps/Hz/cell x 5 cells @ 28 GHz
Traffic per site : 300 Gbps

Min. traffic per user: 83,4 Mbps

40 © 2017 Nokia
A new business dimension with 5G

83.4

Minimum throughput per

connected user at peak +1,344%
moment [Mbps]

0.4 3.4

LTE LTE + 3.5 GHz LTE + 3,5 GHz +28 GHz

41 © 2017 Nokia
The planning challenge behind anyhaul

Residential Businesses Cell sites

+ Phase synchronization for 5G + 25 Gbps interfaces for additional MIMO 5G layers +…….

42 © 2017 Nokia
 Point 2: Smart Network Fabric

43 © 2017
2018 Nokia
The Age of Digital Transformation

Increased Productive New

Reliability Gains Business
Models

44 © 2018 Nokia Nokia - Confidential

Essential perspective: the 3 limits

1 We are reaching the limit of New industrial, infra

consumer value creation
& enterprise value
We are reaching the limit of
2
current networks (due to New distributed
physics)
architecture
We are reaching the limit of TCO
3 due to operational complexity New automated
solution

45 © 2018 Nokia
Smart Communications Infrastructure
Driving Forces
Broad adoption
of Cloud

Enable smart infrastructure and services

Applications in
the Cloud

Mission critical automation and optimization

Internet of
Things

46 © 2018 Nokia
Adoption of Key Technologies
Transformation Journey

Segment Insight-driven
SDN automated
Routing
networking

47 © 2018 Nokia
The Need for Automation
Create and manage services more rapidly

Hours Seconds
& days & minutes

Improve planning cycles

Easier to adapt to changes

Faster response to threats

48 © 2018 Nokia
 Point 3: Converged Edge Cloud

49 © 2018 Nokia
Pushing the limits to reach the next level
Addressing capacity demand while driving down latency

Max.
Latency Efficient capacity
Extreme CENTRALIZED
Mobile
Broadband DATA CENTERS

Massive Critical
machine machine
communication communication Low latency &
efficient transport
Throughput Min. EDGE DATA CENTERS
2005 2010 2015 2020 t

50 © Nokia 2018
A compact data center with a base station from factor
No need for additional radio sites for edge data center HW

AirFrame open edge server

Adding compute
capabilities to a base
station site

Reuse existing site

solutions

AirScale base station

51 © 2018 Nokia
 Edge Cloud - The new node of ‘RAN of the future’

Control plane functions,

Hardware acceleration for Workload-optimized GPP
applications and content
advanced signal processing for high-performance
delivery can use general
and terabit throughput user plane components
purpose cloud computing

A target
architecture
for the Edge
Cloud,
all fiber in,
all fiber out,
converged
across
residential,
enterprise,
fixed and
mobile.

52 © 2018 Nokia
 Point 4: IoT and Digital Enterprise

53 © 2017
2018 Nokia
Industrial IoT
Do we believe in the vertical opportunity?

Connected Connected Connected

Yes, we do! Industries cities safety

with following assumptions:

• Business critical systems requires high

reliability - Customers willing to pay
more

• Lower latency needed – customer willing

to pay more

• Demand could become higher than Connected Connected Connected

supply in the vertical segment utilities health automotive

54 © Nokia 2017
 IoT value is driven by connection growth and additional services

33.98
500 1.0 40

€ /month/connection, 2025
€/month/connection

€/month/connection
35

0.8
Mn

30

6.33
25
0.81
0 0.6 0
Connectio Connection Connection
2015 2020 2025 2015 2020 2025
n Only and , Platform,
High ARPC (e.g.Telemedicine) Platform and App
# of Cellular/LPWA Connections Average ARPC
Average Revenue per Connection/Month Low ARPC (e.g. Vehicle Diagnostics)

Connections grow to 330M in While ARPC varies by application, There is additional value available
2025, and ARPC stabilizes the value per connection declines beyond the IoT connection

Note: Includes cellular and LPWA connections.

55 © 2017 Nokia Source: Machina Research, 2017, Nokia Corporate Strategy 2018
Where’s the value?

AUTOMATED
OPTIMIZATION
Take the best action.
Value curve from data to action
PRESCRIPTIVE
MODELS
Which action is best?

PREDICTIVE
MODELS
What will happen?
DIAGNOSTIC
BASIC BUSINESS ANALYSES
Why/when/where did
REPORTING INTELLIGENCE it happen?
Collating information W hat happened?

56 © 2018 Nokia
Nokia IoT Software Platform Overview

Visualization and
Action Tools
Insight and action + + +
delivered anytime,
anywhere, to anyone Mobile Apps SI Viewer M2M VR & AR

Logic Layer Advanced Business Application Collaboration

Analytics Insight Logic
Intelligence, machine Messaging
learning algorithms Machine Insight into Business rules and backbone,
Learning operations, systems, use-case specific notifications
assets functionality

Data Integration
and Correlation
Seamless integration
with internal and
external systems Enterprise Data Operational Data External Data

57 © 2018 Nokia
Hub Optimization Outbound trailers Geofence

Advanced analytics: Logistics optimization

Increase peak season hub capacity

• Machine learning analytics and real-time
visualization
• Automate assignments to optimize workforce Inbound doors Outbound doors
volume allocation
• Automate trailer door assignments to
continuously optimize hub balance
Geofence Inbound trailers

Central Control Manager Yard management system Workforce

and Yard Clerk Hub systems availability
Sortation systems system

58 © 2018 Nokia
 Energy Management Solutions
What You Get
Predictive analytics, including risk scores and
survival curves, covering numerous varieties of
assets across 18 classes of conducting assets and
16 classes of non- conducting assets
Modeling and analyzing assets and asset
classes within a manufacturer’s portfolio, including
what-if analysis
Asset investment planning, including sustained
capital planning
Real-time and historical views of all data,
powered by a patented spatial-temporal-nodal
engine
Seamless integration and correlation of data
from major asset management systems (IBM
Maximo, SAP EAM) with other IT, operational, and
external data
Easy-to-understand operational formats
highlight important data through maps, charts, and
other visualization
59 © 2018 Nokia
How It Helps You
More accurate long-term operational and
financial planning based on asset life span, risk
expectations, and completeness of and confidence
in data
Simpler, data-driven rate case and investment
justifications based on true assessment of asset
risk
Capital efficiency that optimizes spending while
driving down risk
Clear and actionable insight into what, where, why
and when something has happened or might
happen, to improve safety, reliability, and
regulatory compliance
Reduced risk of asset failure, leading to lower
liability and higher reliability
Faster, simpler decision-making for effective
planning
 Point 5: Digital Enterprise

60 ©©
Nokia
20182018
Nokia
 Perspective: Next industrial revolution driven by 6 megatrends

Ubiquitous Network, Industrial Robotics

Compute & Storage 1 Drone
Control Applied into:
Augmented Manufacturing Factories
Intelligence 2 Autonomous Vehicles
Hybrid/Converting Mills
Borders & Ports
Control Systems Oil & Gas
Internet of Things
3 Electrical Power Industry
Process Industries Plants
Distribution Warehouses
Human & Machine
Interaction 4 AR/VR Sensor Networks
Health Delivery Hospitals & Labs
Mining surface and underground
Transport Venues
Social & Trust Public Venues
Economics 5 Military and other government Bases
Water Utility
Next Level Build on “infinite etc
Digitization 6 connectivity”

Mega trends lead to ‘digital automation’ building blocks which can be applied in various industries
61 © 2016 Nokia Confidential
Private LTE business models & end2end architecture
CAPEX (Autonomous) or As a Service (AaS) public network slice LTE model

1 Enterprise “own” autonomous LTE network operating

in unlicensed or lightly licensed spectrum
2 Part of a CSP public LTE network can be leased for
a specific enterprise, their requirements and locations

Enterprise campus Operator (CSP) private LTE AaS network model

Enterprise
LTE small cells
LAN/internet
Operator core network

Control signal
+ non LAN traffic
MEC
Local breakout
LTE + Wi-Fi small cells function

Edge cloud value Enterprise premises or HQ

enhancing applications
Wi-Fi AP Core Network
Enterprise self-
service portal All traffic
Enterprise
LAN/Apps

Autonomous private LTE model

62 © Nokia 2018
Solution: The essential technical offer
Digital Automation edge and regional cloud
• Multi-tenant
Optimized unlicensed (MulteFire) or
shared multi-spectrum access network
• Optimized network slice per vertical, per service Global cloud management
2 •
•
Guaranteed data privacy / security
Cognitive analytics & DVP environments
• Open APIs to other DVPs
Global integrated control for inter- 3
site orchestration, resiliency, and
optimization and maintenance

Mission critical private

1 wireless network Global cloud
• Robust dual/multi-connectivity
• Hardened, highly reliable systems
• Unbreakable security
Dynamically reconfigurable
Highly optimized metro access network
access points

Local digital automation edge

cloud hosted on premises
(option)

short sensor/automation
loops

Essential technical solution for disruptive ‘Digital Automation as a Service’ offer

63 © Nokia 2018
Confidential
 Point 6: Customer Care

64 © 2018 Nokia
 Omnichannel customer care platform
Key Characteristics
Any touchpoint

1. Common orchestration for all

devices, all services, across all
channels
Assisted Self Field Proactive
2. Multi-device customer interaction
Care Care care Care
using their preferred device- a
smartphone, a tablet, a laptop or
even a TV
Any device

3. Contextual multi-channel support

across agents, self-care, AI
powered bots and field service

4. Heuristics and machine learning to

provide insights and proactive
recommendations
Any service

5. SaaS for savings between 1/3 and

½ the cost of deployment on
Mobile Video Broadband Voice premises & leveraging cloud’s
economies of scale

6565 © Nokia
© 2017
2017
Nokia
 AT&T uses SMP to simplify customer interactions
“Work Flow Engine brings together 19 systems into one integrated flow that
walks a technician through the proper installation or repair steps, using a
consistent yet customized approach for the job at hand.” – AT&T Universal Care Workflow/SMP
One process over any device with one
experience using a common
infrastructure to manage services
with effortless customer experience

• Transforming how AT&T

Operations does it’s day-to-day
business (2014 Annual Report)

• 1.6B transactions per month

• >1B OPEX savings by end of 2016

• Agile Dev Ops Business model

• 370+ API’s across 125 Applications

2014 Investor Annual report:

http://www.att.com/Investor/ATT_Annual/2014/work_flow_engine.html

6666 © Nokia
© 2017
2017
Nokia Confidential
 Point 7: Network Slicing

67 © 2017
2018 Nokia
Delivering the technology to slice the network
Leveraging machine learning and AI in automation

User Webscale Automation VPNs with

slices deployment and self- SLA termination
optimization points

68 © Nokia 2017 Nokia Internal Use

DSP revenue opportunity enabled by network slicing

4X in revenue potential due to Future X network

$2 Trillion

$694B New services

delivery and value
creation via dynamic
$157B Contextual slice management,
services, intelligent slicing,
$187B storage &
Value added
edge hosted partner ecosystem
application
$309B Digital value & analytics
vertical enablement, and
$575B platforms services
specific
applications automation
hosting &
Ubiquitous service
secure digital creation
connectivity
services

Verticals market current Verticals revenue potential

spend on connectivity with Future X (2028)

69 © 2017 Nokia Source: Bell Labs Consulting Confidential

 Fully automated network slicing across RAN, core and transport is required
Most economic way to deliver the highly diverse customer needs

Automated and AI enhanced

# of Slices / TCO
FlowOne Service Orchestrator +30%
From any network to CloudBand

my dedicated network Cloud Status quo

native

Any-
haul
-32%
Automation
Manually sliced Partly Full e2e
Single- & Zero-touch manual automation

Instead of Time to Optimal

10 slices on market resource
same infra utilization
Multi-touch
1 Mio Minutes any time
70 © 2018 Nokia Nokia Internal use
 Hamburg Port: first 5G network slicing trial in large industrial environment

Challenges by 2025 5G Smart Sea Port Focus on 3 use cases with immediate results
AR
8000 Hectare
18 Mio containers/year Operations support at water- Improved harbor operations,
gates or construction sites experience and security
Several 10K trucks/day
Traffic light management:
5G slicing to connect to mgmt.
Better traffic flow
Self driving/flying Mgmt.

vehicles (public, private, enterprise)

Mobile sensors Improved pollution control

100,000+ sensors

Nokia AirScale radio access Slice-aware scheduler & core Life cycle management
and cloud packet core network to enable slices for network slices

5MHz FDD Carrier at 713/768, i.e., UL@713-723 / DL@768-778

71 © Nokia 2017 Nokia Internal Use

 Challenges facing network slicing implementation

Standardization Net neutrality Business models

are unclear
. Network slicing could IP access service providers Who pays for the
. lead to fragmentation must treat all traffic additional infrastructure
across network & equally, regardless of investment?
platform technology. origin, recipient and
data type. It cannot How can services
End to end throttle data from providers monetize the
standardization certain sites. new digital service
is required opportunities?

72 © Nokia 2017
5G network slicing as part of the 5G Future X Architecture
Nokia’s Future X architecture means that e2e 5G solutions provide the network performance and ideal
characteristics for everyone, simultaneously
Intelligent
Powerful
Efficient
Flexible

Digital Value Platforms

Nokia Bell Labs
innovation in action
Augmented Cognition Systems 5G Future X
Programmable Network OS
Universal Adaptive Core
Short
Autonomously waves
optimized coverage & wires
& capacity Long
Software- fibers
defined

Converged
Emerging Devices Massive Scale Converged Smart Network Node
& Sensors Access Edge Cloud Fabric

73 © Nokia 2017 Nokia Internal Use

 Point 8: Video Solution

74 © 2017
2018 Nokia
E2E video market
End-user drives the Video experience

Customer expectations for 2020 Video

Multiscreen Resolution Personalized

75 © Nokia 2017
Fundamental needs

Seemingly infinite capacity Imperceptible latency

100x capacity growth Millisecond latency for networks

in <10 years and new “human” services

76 © Nokia 2017
Key architecture domains for Video Evolution

Massive scale access Converged edge cloud Modular video platform

The creation of ultra- The emergence of the edge Modular video platform
small and ultra-close cloud for low latency and augmented by advanced
access nodes high performance network capabilities

Consumer Content

Intelligence moves Video apps move

back into the network to the edge

77 © Nokia 2017