Ericsson: Latam Insights - We Enable Change-Makers

OCTOBER 2015

We enable change-makers in the Networked Society

LATAMINSIGHTS

2 INSIGHTS: REGION LATIN AMERICA AND CARIBBEAN OCTOBER 2015

WELCOME

enabling growth and innovation

All around us, we see how connectivity is an essential tool in our everyday lives. As we believe this is fundamental, we keep on dedicating time and resources to develop the Networked Society.

Ericsson is driving the 5G technology development, along with partners and leading operators, to strengthen the network capabilities in mobile broadband, Internet of Things and media delivery, as well as to support all the industries that are transforming as we speak. Such changes may go so far as to actually redefine the industries themselves, such as transportation to mobility, retail to exchange, and education to learning.

In our latest Latam Insights brochure, we take a look at some of our regional projects, alongside highlights from the latest ConsumerLab reports. In addition, we share the consumer and market trends currently driving the transformation journey.

I hope that you will enjoy reading this brochure. I or any other Ericsson representative would be happy to engage in a further discussion about these topics.

Regards,Sergio Quiroga da CunhaHead of Ericsson Region Latin America and Caribbean

The key enablers of growth and innovation come not from the physical assets and infrastructures themselves, but from the people, platforms and insights that are leveraged to reinvent them. We define these new assets in six key areas:

DATA - OWN, SHARED AND OPEN

Big Data that is collected and analyzed from practically every aspect of life has tremendous potential to improve decision-making. As we continue to harness this data—whether it’s owned, shared or open—it will continue to become a powerful resource.

THINGS - CONNECTED AND INTELLIGENT

We are now entering a reality where billions of digitally connected objects arethe equivalent of raw materials for much more dynamic products. They are in turn enhanced by a wealth of new services that improve product performance and achieve new levels of efficiency.

USERS - PARTICIPATING AND ACTIVE

In world defined by greater transparency and distribution of power, people will continue to become active contributors to the networks and communities in which they participate. This will lead to new forms of co-creation where products and services become more relevant and users are viewed as a vital asset for any public or private organization.

CAPABILITIES - AVAILABLE AND ON-DEMAND

Starting a global business today requires little more than an idea, a user base and a network of collaborators. Funding can be crowd-sourced; factories can be rented and specialized skills, work spaces and digital infrastructures scale as needed. As a result, many more barriers to market entry and global scale will be lowered.

DIGITALIZATION - EXPONENTIAL AND UBIQUITOUS

PLATFORMS - ECONOMICS AND SCALE

Technology platforms are transforming the idea of a product or service by opening up entire business processes to customers, developers, and partners to add value. This not only reduces transaction costs but has the potential to become an economic force with a logic of its own.

As digital assets rise in importance, and become a primary source of business value, we will see business processes become faster, more relevant and cost-efficient. As processes and products become digitalized, organizations are increasingly adaptable to a changing environment, enabling increased innovation, strengthened decision making and value creation.

software for iot

3 3INSIGHTS: REGION LATIN AMERICA AND CARIBBEAN OCTOBER 2015

Over the last few years a major shift in connectivity has been gaining speed; we have moved away from a laptop era and into a fully mobile era, where we connect to our friends, family, and colleagues through multiple devices and where business transactions are often made over the cellular network. The resulting influx of devices, users, and applications trying to access the network can result in poor indoor coverage and performance.

To support these changes in connectivity, Ericsson is pushing performance further by adding capacity and functionality with software-only upgrades. Ericsson IoT Networks Software 16B delivers reduced device costs, extended battery life and improved indoor coverage.

Cellular networks already cover 90 percent of the world’s population, but a number of roadblocks to supporting mass-market adoption of IoT have remained. Ericsson is addressing these challenges with Ericsson IoT Network Software 16B, a targeted new suite of software upgrades and ecosystem advances that will accelerate the uptake of IoT for the benefit of both industry and consumers.

Ericsson’s new IoT Networks Software 16B delivers:

Reduced IoT device cost: The new software supports LTE Category 0 with half-duplex operation in FDD, which effectively limits functionality and capability to those specifically required for IoT applications, such as large-scale sensor and smart meter deployments. This reduced complexity cuts device cost by 60 percent compared to Category 4.

Extended battery life: 10-year battery life is one of the goals for 5G, and Ericsson is introducing two new software upgrades for energy efficiency that achieve that goal on today’s IoT devices. Device Power-saving Mode for LTE & GSM is a new device power-saving capability that introduces a deep sleep state, while Extended Discontinuous Reception (DRX) for GSM extends the sleep cycles in inactive mode.

Improved indoor coverage: Extended coverage software for GSM delivers a 20 dB improvement leading to a seven-fold extension in the range of low-rate applications. This enables the usage of IoT applications in remote locations and deep within buildings underground.

ERICSSON networks

DELIVERING REDUCED IOT DEVICE COSTS, EXTENDED BATTERY LIFE AND IMPROVED INDOOR COVERAGE


A NEW CLOUD Scan the QR codeto learn how

Ericsson Cloud is powering the digital

industrialization of modern business

The Industrialization Cycle

Telecom operator situationThanks to Ericsson’s global presence, we see that most telecom operators are experiencing a relatively flat scenario for fixed business. At the same time, mobile market growth in users and data services is compensating for the declining SMS and voice services to the extent that numbers are still in the black. The question is, for how long? The action is clear: new income flows and a reduction in OPEX and CAPEX are needed. The mass market service evolution trend is oriented toward an extensive use of broadband and mobility. Enterprise segment evolution is focused on economic aspects, changing communications, mobility, data centers and cloud/SDN (with security as a top priority).

74% of all large businesses today are concerned about the integrity and safety of their data in the cloud. Can you trust the data? Can you be sure your business is secure?

Today, the answers to these questions are not reassuring: to reap the benefits of cloud, you are forced to trade speed for risk. But it doesn’t have to be that way. What if there was a cloud that is not only fast, flexible and automate-able but also secure, safe and governable: offering true data integrity, and respecting the data sovereignty laws of each country it operates within?

Using our combined strengths in network, data, and compute solutions, Ericsson is now building that cloud: a cloud with integrity for business-critical applications. A cloud that is real-time ready, and tailored to your needs. A cloud with known performance. Ericsson has a long history in providing and managing hardware, software, and services for the world’s most demanding communications infrastructure. Now we’re bringing that experience, knowledge, and power to the cloud.

POWERING THE DIGITAL INDUSTRIALIZATION OF MODERN BUSINESS

Source: Cloud Security Alliance, “Cloud Adoptions Practices & Priorities Survey report” (2015)

Today’s organizations operate in a business climate of breakneck speed and continuous change. Ericsson Cloud System enables businesses to transform their IT operations so that they can respond to these changing market forces faster, and deliver customer value more effectively, all while containing costs to be more competitive. We call this digital industrialization. It’s a continuous cycle that organizations can use to turn IT infrastructure from a cost into an asset: standardizing on one set of technologies and economics, across facilities, hardware, software, and operations; consolidating data-centers; abstracting functionality; automating operations; and governing it all to ensure security, integrity, and compliance.

You need to Standardize to deal with technologies, and drive a one-facility hardware, software, operations and economic strategy for continuous improvement. Then you Combine in order to consolidate to drive the highest possible occupancy, utilization and density, with CAPEX benefits. Abstract and gain accessibility to complete programmability of all functionality and capabilities. Modularize and abstract at the right layers. Automate provides OPEX and agility for all uses and desires. There are no interactions that require a human. Finally you govern, so you gain security, performance, scalability, quality, economics (cost and value), compliance, security.

consumerlab insights

Scan the QR codeto see these

and more ConsumerLab Insights

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Consumers demonstrate a high interest in connected home services: more than six out of ten respondents are highly interested in connected home services in Chile

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Safety and control drive interest in connected homes

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Five out of ten are interested in an integrated home solution that consolidates several connected home service categories; home security, health and wellness, and energy and utilities are the three categories with the highest level of interest and need

CONNECTED

HOME

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Commuters perceive commuting time as unproductive, dull and long – Brazilians spend 2.1hours commuting per day

> 85 percent of public transport commuters in São Paulo use internet to be more productive during the journey

> 34 percent of metro travelers in Brazil agree that a lack of connectivity is a barrier to not use even more this transport mode

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Today, people estimate they spend 5.3 hours per week watching streamed TV series, programs and movies on-demand

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25 percent of “cord nevers” are already paying for OTT content services, indicating a willingness to pay for subscription TV, albeit with a different bundle approach

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Millennials prefer the mobile screen: those aged 16-34 spend 52 percent of all their video viewing time on a smartphone, tablet or laptop

TV & MEDIA2015

WI-FICALLING

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Wi-Fi calling offers extended coverage in areas where communication was originally not possible. In Brazil, only one out of four are satisfied with voice call coverage and reliability

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When travelling, 83 percent of Brazilians actively seek Wi-Fi wherever available; 26 percent switch their phones off and 60 percent make over six voice calls out of every ten using over-the-top (OTT) communication applications


DYNAMICCOMMUTE

THE VOICE OF THE CONSUMER

8 connected home categories

The increase in watching on-demandTV series and movies

Why users find Wi-Fi calling appealing

Average time spent commuting each day (hours)

> 81 % of consumers in Chile expect 24/7 phone support the top requirement in regards to customer/tech support for an Integrated Connected Home Solution

> International smartphone travelers are positive towards Wi-Fi calling, as it is a convenient way to lessen the reliance on OTT communication apps, and facilitate more communication

> Globally One third of travelers are already aware of the Wi-Fi calling feature. 7 out of 10 find it appealing and 5 out of 10 will use it if made available

> Linear viewing is linked to age: 80 percent of 60–69 year olds say they watch linear TV on a daily basis, while only 60 percent of teenagers (those aged 16–19) do so

OSS/BSS DRIVING TRANSFORMATION

Entel Chile’s Digital Telco Transformation will position the operator for speed, efficiency and success, enabled with a broad range of OSS/BSS solutions from Ericsson and its partners.

STRENGTHENING IT SERVICESIN LATAM

In August, Ericsson acquired the assets of Icon Americas, adding 250 services professionals and boosting Ericsson’s service portfolio in Latin America.


At Ericsson, we pride ourselves on our history of innovation and technology leadership. Below you will find examples of where we have really pushed the boundaries, working to meet the evolving needs of our customers throughout Latin America and the Caribbean.

FOSTERING URBAN MOBILITY WITH VOLVO BUS

Volvo Bus Latin America and Ericssonto customize Volvo's ITS4Mobility intelligent transport system to increase efficiency of urban transportation systems and contribute to enhanced mobility.

CONNECTED VEHICLE CLOUD WINS 2015 LTE AWARD

Winning in the category of Most Innovative LTE Application, Ericsson’s Connected Vehicle Cloud was highlighted for achieving innovation in the global LTE industry during the LTE World Summit.

KEY EVENT EXPERIENCE FUELSSOCIAL MEDIA SATISFACTION

During the 2014 football world cup, Ericsson’s Key Event Experience allowed 3.4 million fans to share their passion on social media via mobile networks that performed under pressure.

35,000 granted patents

USD 34 billionnet sales 2013

25,000 R&D employees

64,000 service professionals

ERICSSON AT A GLANCEEricsson is the driving force behind the Networked Society, and a world-leading provider of communications technology and services. Our long-term relationships with all major telecom operators in the world allow people, businesses and societies to fulfill their potential and create a more sustainable future.

118,000 employees

180countries with customers

USD 5 billioninvested in R&D annually

#1 LTE market sharein the world’s 100 largest cities

37,000 granted patents

USD 33 billionnet sales 2014

1 billion subscribers served by networks for which we provide managed services

25,000 R&D employees

2.5 billion subscribers supported by us

#1 > MOBILE INFRASTRUCTURE> OSS/BSS > SERVICES> TV PLATFORMS AND DELIVERY

65,000 services professionals

USD 1 billionin R&D in 15+ years

9,000service professionals

26countries with Ericsson offices

123 yearsUSD employees

11,500 in Latin America

REGIONALLY:

GLOBALLY:

ERICSSON TO BRING 5G TO BRAZIL

As part of enabling Brazil's digital agenda, Ericsson together with América Móvil will bring the first 5G test system to Brazil during 2016.

LATAM FIRST WITH LTE-A

Ericsson and Entel Chile demonstrateLatin America's first data transmissionusing LTE-Advanced CarrierAggregation with speeds up to250Mbps.

SMALL CELLS BOOST INDOOR COVERAGE

TIM Brazil and Claro Puerto Rico subscribers to get improved indoor quality and user experience via Ericsson Radio Dot System.

We approach your transformation from three perspectives:

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establishing consistent interaction with your customers across all channels;

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gaining understanding through one single view of your customers; and

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helping you reinvent your operational model for greater agility, and to drive network and IT convergence.

EricssonLatinAmericaEricssonBR

EricssonLatamEricssonBrazil

@EricssonLatam@EricssonBR@EricssonCarib

EricssonLatinAmerica EricssonLatinAmerica EricssonLatinAmerica

DIGITAL TELCO TRANSFORMATIONACCELERATES DIGITALIZATION

Operators have provided the foundation for the Networked Society, building networks that will soon connect 50 billion devices.

The next step? Achieving the agility you need to meet society’s new demands and expectations, and doing it profitably. Moving from a telco to an ICT company, and from a service provider to an experience provider. Three key components define what it means to become a digital telco:

1. Change the way you interact with your customers.

2. Introduce advanced analytics to better understand your customer.

3. Fundamentally reinvent how you do business.

Ericsson can help you define a digital telco strategy based on your strategic objectives, and then plan, build and deploy the capabilities you need to compete in the digitalized marketplace.


The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.

EricssonSE-126 25 Stockholm, SwedenTelephone +46 10 719 00 00www.ericsson.com

GFTE-15:000342 Uen © Ericsson AB 2015

Ericsson is the driving force behind the Networked Society – a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure – especially in mobility, broadband and the cloud – are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions – and our customers – stay in front.

Ericsson is present in Latin America since 1896, when an agreement was reached in Colombia for its first equipment delivery in the region. In early 1900, Ericsson increased its presence in Latin America by signing trade agreements in Argentina, Brazil and Mexico. Today, Ericsson has operations in 56 countries in South America, Central America, Mexico and the Caribbean, which represent one of the regions in which Ericsson owns a complete set of facilities, integrated by a Production Unit, a Center for Research and Development (R&D), as well as a Training Center.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.