Info Trans 2010 The Future of Railway communications

Info. Trans 2010 The Future of Railway communications Detlef Hoffmann Regional Sales Director St. Petersburg, 28 th October 2010 © Nokia Siemens Networks

Railway operators require absolutely safe and reliable communication infrastructure Passengers demand • Fast & secure train connections • Punctuality • Reliable & transparent information – and all this at reasonable costs Railway challenges • Improve traveling experience - increase passenger numbers and revenues • Increase freight capacity and revenues • Ensure safety of passengers and staff • Reduce operational costs to be profitable • Build a mission-critical communication platform • Manage the transformation from circuitswitched to all-IP packet environment Our railway customers settle for nothing less than 99. 999% carrier-grade reliability © Nokia Siemens Networks

How Nokia Siemens Networks can help GSM-Railway ensures safe and reliable operations for trains • Improve interoperability, enhance safety, and reduce costs with a single, streamlined and future oriented digital radio system • Support greater signaling, safety and security demands of high-speed travel (ERTMS*) • Transmit Railway applications via GPRS More bandwidth with Broadband on trains • Enable a wide range of broadband applications in trains • Provide real-time services for train personal and passengers • Complement GSM-R as basis for a comprehensive railway communications solution *) ERTMS: European Rail Traffic Management System © Nokia Siemens Networks Variety of Railway applications • Increase attractiveness of train travel to generate more revenues • Improve security through remote security monitoring • Offer an unlimited range of Internetbased information, news, and entertainment services

Old communication systems: Expensive to maintain, not interoperable Paging Track to train radio Shunting radio Automatic train control Tunnel radio Vehicle mounted radio Operation & maintenance radio © Nokia Siemens Networks

GSM-Railway: One integrated and standardized solution GSM-R © Nokia Siemens Networks

Interoperable railway functionality on one standard platform: GSM-R from Railway Industry Group GSM-R Valueadded services EIRENE functionality GSM enhancements for railways (by ETSI) • Dynamic group communication • SMS to functional numbers • Advanced dispatcher solutions • Functional & location-dependent addressing • High-priority call confirmations • High-speed: 500 km/h • Voice Group Call Service • Voice Broadcast Service • Enhanced Multi-Level Precedence & Pre-emption • All functionalities can be used with GSM-R ETSI GSM functionality © Nokia Siemens Networks

Who is the GSM-R Industry Group ? GSM-R Industry Group, founded in 2001 and has currently 9 Industry members • GSM-R Infrastructure • GSM-R Mobile Stations • GSM-R Dispatcher Systems. . . dedicated to support GSM-R: 4 all hands meetings per year plus numerous specialist & authority meetings, workshops, feasibility studies etc 7 © Nokia Siemens Networks

The GSM-R market leader: 27 contracts in 19 countries Australia Belgium China Denmark Finland Germany Greece India Italy Libya The Netherlands Norway Portugal Saudi Arabia Spain Sweden Switzerland Tunisia Turkey © Nokia Siemens Networks Do. T Victoria Infrabel/SNCB Ministry of Railways China Railway SCC high speed lines Banedanmark Finnish Transport Agency Deutsche Bahn ERGA OSE NR (Northern Railway) ECR (East Central Railway) NCR (North Central Railway) NFR (North Frontier Railways) Rete Ferroviaria Italiana SIRTI Highspeed Libyan Railways Pro Rail HSL Zuid Jernbaneverket REFER Saudi Railways Organisation North-south mineral line ADIF (GIF/RENFE) Ministry of Transportation Trafikverket SBB SNCFT TCDD Nokia Siemens Networks: Outstanding competence as a railway supplier

11 Nokia Siemens Networks GSM-R references countries in Europe Sweden 7. 500 km Germany Belgium Netherlands 3. 000 km End-to-end supplier via KPN-joint venture incl. infrastructure (MSC, radio NW, terminals) Switzerland 3. 200 km End-to-end network supplier incl. infrastructure (MSC, radio NW, terminals) Finland Norway 3. 000 km End-to-end supplier incl. infrastructure (MSC, radio NW, terminals, disp. system) Norway End-to-end supplier incl. infrastructure (MSC, radio NW, terminals, disp. system) End-to-end supplier incl. infrastructure (MSC, radio NW, terminals), full managed services Spain HSL+ ext lines Sweden End-to-end network supplier incl. infrastructure (MSC, radio NW, terminals) Belgium 3. 000 km Denmark Finland 5. 000 km Italy 7. 500 km End-to-end supplier incl. infrastructure (MSC, radio NW, terminals) End-to-end network MV integration on Roma Napoli HSL incl. infrastructure (MSC, radio NW, terminals) Switzerland Netherlands Portugal © Nokia Siemens Networks Spain Italy Greece

8 Nokia Siemens Networks GSM-R countries outside Central Europe Australia • Do. T Victoria Melbourne China • 5 projects & 2 high speed lines India • 4 commercial projects Libya • 1 commercial project Russia • GSM-R pilot Saudi Arabia • SRO & North-south mineral line Tunisia • Phase 1 GSM-R project Turkey • 1 commercial project © Nokia Siemens Networks

© Nokia Siemens Networks

Train control systems - ETCS level 2 configuration on GSM-R phones & cab radio GSM-R antenna RBC European vital computer Eurobalise © Nokia Siemens Networks ETCS antenna Eurobalise Interlocking

Reduce average delays per train: GSM-R with ETCS level 2 Average delay per train Seconds • No safety failures or incidents • Massive learning effect: SBB-internal processes and procedures • Widespread acceptance by drivers and dispatchers • Important knowledge and insights gained for continued ETCS processes Source: Bombardier, results of pilot study in Switzerland © Nokia Siemens Networks

Benefit from the capacity improvements of GSM-R with ETCS Calculated capacities for high-speed lines [%] Increase of capacity (ETCS level 1 = 100%) Level 1 with second infill balise Source: UIC Report, ERTMS Annual Conference, 2007 © Nokia Siemens Networks Level 2 with optimized block sections Level 3

Solve your business challenges and achieve environmental benefits Broad band on Trains © Nokia Siemens Networks

New services, new devices & data flat rates multiply capacity needs Bandwidth-hungry applications go mobile Worldwide mobile traffic [Exa. Byte/month] 2. 5 Handheld data traffic 2. 0 Smartphones Laptops & netbooks Wireless routers Wi. Fi 1. 5 HSPA 50 TB • Many devices • Mobile usage • Always-on © Nokia Siemens Networks • Portable usage • High data volume • High processing capacity • Semi-permanent usage • Highest data volume • Shared connection Laptop data traffic 1. 0 0. 5 Voice traffic 2008 2009 2010 2011 2012 2013 2014 2015 Source: analyst reports and internal research

Turnkey solution for Broadband on trains with seamless connectivity Internet Satellite Network Operations Center Flash-OFDM Wi. MAX LTE GSM/GPRS WLAN/ Wi. Fi UMTS/ HSDPA Multi-link endpoint router Internet onboard server/ main rack Secondary rack 19” Dynamic wireless distribution system (WDS) WLAN 802. 11 b/g Main coach © Nokia Siemens Networks Secondary coaches user

Railway applications help you to master these challenges WLAN/VPN to passengers** Entertainment** (video, audio, gaming) Advertising** Increase revenue Ensure security Railway Applications Cargo & object tracking*** Application based on *) GSM-R; **) Broadband on trains; ***) both © Nokia Siemens Networks Real-time passenger information** Passenger counting*** Train control systems ETCS level 2* CCTV video surveillance*** Online ticket sales & seat reservations** Energy metering*** Improve efficiency Train diagnostics & monitoring*** Fleet network management***

Thalys high speed train passengers enjoy broadband Internet Specific challenges • High speed lines 320 km/h => connectivity • Content/marketing for 4 countries • Regulations in 4 countries “The vast experience of the consortium providing the internet solution was a major asset for the project and Thalys international. The consortium offered the best of both worlds – a great technical solution and a sound financial proposal. ” Thalys © Nokia Siemens Networks

Velaro RUS project customized according customer needs and Russian certification standards St. Petersburg – Moscow – Nizhny Novgorod • Basic order: 8 trains equipped with GSM backhaul • Optional: System integration with satellite backhaul • On-site delivery in only 3 months – commercial since Dec. 2009 St. Petersburg Moscow Nizhny Novgorod © Nokia Siemens Networks

Solve your business challenges and achieve environmental benefits The future Evolution of GSM-R © Nokia Siemens Networks

Main drivers for LTE in public markets Exploding traffic Stagnating voice revenues Significant Cost pressure • Network complexity • Service provisioning • Subscriber churn • Spectrum cost Mobile Internet dominating application LTE as new broadband technology with strong demand by public operators. © Nokia Siemens Networks

Main drivers for a Next Generation Railway Communication System Technologic evolution Broadband applications • Leveraging the 3 GPP eco system Following the 3 GPP path to continuously benefit from most successful communication system, guaranteeing interworking and global roaming. Railways should use LTE successor technology for their GSM networks (skipping UMTS). • Increasing use of data applications and new operational services requires efficient networks • Surveillance, passenger services. • LTE offers more than changing the radio i/f. Operational improvements © Nokia Siemens Networks • Simplified network structure, advanced configuration and supervision technology (e. g. SON - Self Organizing Networks) • Automation reduces human faults, • Self healing networks, speed-up maintenance.

Simplified network structure, advanced configuration & supervision, e. g. SON (Self Organizing Networks) Self-healing • Automated preventive corrections • Minimized network outages Quality Self-optimization • Optimal use of capacity • Maximized availability Self-configuration • Automated BTS/e. NB deployments • Faster roll-out © Nokia Siemens Networks OPEX

Railway operators benefit from the evolution in public networks 3 GPP evolution 1995 2000 2005 2010 2015 2020 2025 2 G – GSM, GPRS, EDGE 3 G – UMTS, HSPA (skipped for railways) LTE Railways GSM-R based on mature GSM products & technology EIRENE , UNISIG, 3 GPP Development Standardization & Verification Pilot, IOT LTE for railways © Nokia Siemens Networks

GSM-R from Nokia Siemens Networks: The fast track to efficient railway communications Experience obtained from 27 GSM-R projects, including turnkey and network operations Strong commitment to GSM-R with long-term evolution and environmental vision Best-in-class products, R&D, and production facilities Active participation in European and international railway standardization © Nokia Siemens Networks Number 1 “One-stop-shopping” with e 2 e ability Strategic cooperation with local partners for necessary services and products

Solve your business challenges and achieve environmental benefits Thank You for your attention ! © Nokia Siemens Networks