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

What is the difference between Science and Innovation? A Lego brick A pile of 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 2 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011.

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

What is Driving Innovation in Wireless? Traffic growth and historic gains for wireless networks What is Driving Innovation in Wireless? Traffic growth and historic gains for wireless networks Global Internet Traffic Growth Global Mobile Data Traffic Growth 1997 178% 2008 156% 1998 124% 2009 140% 1999 128% 2010 159% 2000 195% 2011 (estimate) 131% 2001 133% 2012 (estimate) 113% Cisco VNI Global Mobile Data Traffic Forecast 2010 -2015 ; Feb 2011 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 26 x increase in capacity required by 2015 4 | 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 Where is the Wireless Traffic Growth Coming From? From a select urban study on bandwidth consumption Forecast consumption by device type Worldwide Aggregate Mobile Traffic § 80%-85% of packet switched calls are originated from Smartphones § 40% of 3 G devices are Smartphones 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 Source: Alcatel-Lucent measurements using 9900 WNG within live networks and Bell Labs analysis 5 | 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 Traffic growth equates to base station growth Calculated Base Station Requirements in a Tier 1 City 2, 500 Based on Downlink BW 2, 000 Based on Uplink BW Based on Erlangs Based on Signaling Base Stations Required 1, 500 1, 000 500 - 2011 2012 2013 2014 2015 More energy, more space, more maintenance Source: Bell Labs synthesis of real network data with industry growth forecasts 6 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011.

3 Technologies 5 Bands What’s Next? City planners resist more antennas 7 | LIGHT 3 Technologies 5 Bands What’s Next? City planners resist more antennas 7 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011.

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

Bell Labs thinking of a new way to build a BTS X X X Bell Labs thinking of a new way to build a BTS X X X X RF X X X X Remote Radio Head Active Antenna FEEDERS Move RF to antenna As flexible and modular as possible! Integration CPRI OR 9 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011.

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

One brick that contains everything ‘RF’… But: we don’t call it a brick, We 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 11 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011.

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

The Future: Making antennas invisible On a façade On a pole 13 | LIGHT The Future: Making antennas invisible On a façade On a pole 13 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. On a lamppost In a bus stop

Wideband Active Array Antenna Creating invisible antennas - First product of its kind 3 Wideband Active Array Antenna Creating invisible antennas - First product of its kind 3 bands Radome 1 st Use - Smart Network Antenna Panel (SNAP) Multiband/Technology § Converged RAN compatible § Per band power management § Reduces # of antennas required/site Reduced Site Costs, Better Coverage 14 | LIGHT RADIO | FEBRUARY 7 All rights reserved. Copyright © Alcatel-Lucent 2011. Higher reliability § Loss of single element does not impact entire band (FRU) Beam forming § Reduces interference § Puts power where it’s needed