EnTelPCSBig3GS C f l i th R GiSucCesfulintheReGion

GSMLAMiami,June2010F i O h AFranciscoOchoaA

Agenda

About EntelPCS 3G Services in the Region Why move towards LTE?

C l ti Conclutions

2

Ab t E t lPCSAbout EntelPCS

3

General Information

Chile, 90%+ mobile penetration16 Mill 16+ Mill pop.

Entel PCS 6+ Mill Subs 1900 MHz GSM Since 1998 HSDPA 3.6 Mbps since Dec 2006 LTE Trial from December 2009 to March 2010

4

Network Elements

2006 2007 2008 2009 2010

ENTELPCS 2006 TO 2010(Acummulative Values)2006 2007 2008 2009 2010

RBS 1746 2304 3254 3700 3748BSC 22 28 33 36 38MSC-S 3 8 9 9 9MGW 3 11 18 22 24HLR 4 4 5 5 5

2G

2006 2007 2008 2009 2010NODE B 0 253 736 1623 3026

186%

290%220%

RNC 0 1 14 23 25Exp. RNC 0 0 6 12 16

CHE 0 16.192 108.928 285.952 390.208

3G

186%

Capacity (Gbps) 0 0,4 1 3,2 8,6250%

320%268%

Growth Factors

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Subscribers, Traffics and Sites

Abonados BAM

71.968600.000

700.000 HS 3G GPRS/EDGE

Abonados Voz

7.476.679

7 500 000

8.000.000

582.74380.186300.000

400.000

500.000

A

b

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s

B

A

M

6.260.616

6.813.316

6 000 000

6.500.000

7.000.000

7.500.000

A

b

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n

a

d

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s

58 veces

33%

67.832

233.59170.390

10.14934.261

-

100.000

200.000

2007 2008 2009 2010

A

5.613.320

5.000.000

5.500.000

6.000.000

2007 2008 2009 2010

Intensidad de Trfico en BH

75.000

80.000

3,50

4,00Trafico Voz BH [Erlangs]Trfico Datos BH [Gbps]

Distribucin de sitios 3.7483.702

3.2562637

3 000

4.000

s

Sitios 2G Sitios 3G Adicionales 3G

62 5%

Distribucin de sitios 3.7483.702

3.2562637

3 000

4.000

s

Sitios 2G Sitios 3G Adicionales 3G

62 5%

50.000

55.000

60.000

65.000

70.000

E

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s

1,00

1,50

2,00

2,50

3,00

G

b

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12 veces

2.306

1.748

580

1171

1.000

2.000

3.000

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9,4 veces

62,5%

70%2G/3G

2.306

1.748

580

1171

1.000

2.000

3.000

C

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9,4 veces

62,5%

70%2G/3G

40.000

45.000

2006 2007 2008 2009 20100,00

0,5059

253580

120

- 2006 2007 2008 2009 2010

/

59253

580

120

- 2006 2007 2008 2009 2010

/

6

EntelPCS Competitors

3G2G

Access Network

3G2G

Access Network

3G2G

Access Network

3G2G

Access Network

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3G Services: DL= 14 Mbps, UL=5,8 Mbps

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3G Servers: Node B (Start Up & Current Configuration)

Configuration 2006 1Raxb64 + 1 HSTX1516 user, 5 code

Configuration 2007 1Raxb128 + 1 HSTX4532 user, 10 code

Configuration 2008 2Raxb128 + 1 HSTX4532 se 10 code EUL32 user, 10 code, EUL

Configuration 2009 3Raxb128 + 1 HSTX6064 user, 15 code, EUL

Transmisin(HSTX)

Recepcin(RAXB)

Cdigos HSDPAEULEUL

Cdigos HSDPAEUL

Usuarios HSDPACE R99 DL CE R99 UL

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3G KPI :Troughput User HSDPA

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3G KPI : HSDPA Accesibility.

Network Value Evolution

29

253035

17

8

16

4

05

10152025

4 5 6 7 8

#

C

e

l

d

a

s

% Celdas OK Primario 91,28%% Celdas OK Secundario 90,76%

4 5 6 7 8

# S em anas pres entes en rank ing c ons ec ut ivas

7 37

10

60

80

100

120

d

a

s

101 105 89 80

0

20

40

60

#

C

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20 21 22 23

PRIMARIO SECUNDARIO

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Umbral Segmento Primario 98% Segmento Secundario 98%

3G Powerful Backbone IP

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3G N t k i th R i3G Network in the Region

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Mobile wireless outlook

HSDPA Deployment mainly in 850 MHz and 1900 MHz in band VenezuelaGSM / CDMA850 MHz / 900 MHz /1900 MHz3G EVDO & UMTS, First 3G

3G HSDPA Deployment in South America

2006 Chile1H 2007 Argentina2H 2007 Brazil, Paraguay, Uruguay

900MHz network in L.A.

2008 Peru, Colombia, Ecuador, Bolivia

HSDPA users in the regionBrazilGSM / CDMA / 3G HSDPA (850/2100)850 MHz / 900 MHz / 1800

HSDPA users in the region

0 40 %231 17%22 1296 682Bolivia

2,99 %207,92%1.510.627490.598Argentina

% TotalGROWTH %Q2 2010Q2 2009HSDPA

0 40 %231 17%22 1296 682Bolivia

2,99 %207,92%1.510.627490.598Argentina

% TotalGROWTH %Q2 2010Q2 2009HSDPA

850 MHz / 900 MHz / 1800 MHz

4,09 %254,28%1.695.411478.555Colombia

5,41 %212,18%1.004.355321.726Chile

3,95 %302,57%7.403.8591.839.167Brazil

0,40 %231,17%22.1296.682Bolivia

4,09 %254,28%1.695.411478.555Colombia

5,41 %212,18%1.004.355321.726Chile

3,95 %302,57%7.403.8591.839.167Brazil

0,40 %231,17%22.1296.682Bolivia

2,32 %94,51%73.48637.781Uruguay

0,60 %208,96%126.09440.813Peru

0,71 % 294,85%43.98611.140Paraguay

2,32 %94,51%73.48637.781Uruguay

0,60 %208,96%126.09440.813Peru

0,71 % 294,85%43.98611.140Paraguay

14Source: Wireless Intelligence, Infocentre GSM

Wh t d LTE?Why move towards LTE?

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Coverage and price, satellite case (Chile)

Rapid uptake of

Number of TV subscribers, Chile

satellite services

Price reduction of STB

Recent reduction in

26%

Recent reduction in monthly fare and prepaid satellite (25 USD)

5 %

)

Satellite in triple packs

The Satellite case proves that nationwide coverage with a wireless service, a lower price point and subsidized terminal can attract new segments.

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Broadband penetration, Chilean case

Almost Half of the households have access toInternet

Mobile Internet had a great user growth inMobile Internet had a great user growth in2010 (200%+) and is having a averagemonthly growth of 13% (VS 1% of Fixed)

Source: Chilean Telecoms Regulator (SUBTEL)

20010 estimate

Internet penetration per Household Income

However the broadband service is present mainly in the higher income households (V and IV in the graphic)

V: Higher Income

I: Lower Income

Source: SUBTEL

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Source: SUBTEL

South America Broadband / Households

Fi l dCompared with USA and Western

Broadband Household Penetration by country

Canada

France

United Kingdom

Finalndp

European countries, the broadband per household penetration is very low

Also the average broadband speed in S th A i i l th th

Chil

Italy

Austria

United StatesSouth America is lower than other regions. 69% of the connections are below 1 Mbps of speed

Venezuela

Brazil

Argentina

Chile

South America average broadband speeds

0% 20% 40% 60% 80% 100%

Peru

Colombia

35%

31%Lower than 512 kbps

512 Kbps - 1 Mbps

More Than 1 Mbps

broadband speeds

Source: CIA WF, Fitch, OECD, IDC34%

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34%

Technical characteristics of LTE

Better indoor coverage with OFDM than WCDMA?

More than 30% of Actual 3G users have fixed indoor behavior

Higher throughput and higher overall capacity?

Massive use of Internet in mobile handsets and video portals in mobile broadband will pcreate congestion in urban areas

A new technology in fresh spectrum?

The uptake in the number of connected devices and traffic is higher than the capacity t GSM t t d HSPAto move GSM spectrum towards HSPA

Harmonized spectrum and worldwide adoption will mean economies of scale in terminals to smaller operators?

This is the main difference with Wimax, the possibility of a truly global economy ofThis is the main difference with Wimax, the possibility of a truly global economy of scale in terminals and networks

New interconnected devices and LTE in every machine?

Mayor operators are seeing LTE as a opportunity for new devices, M2M, smart meters, etc. this could drive several tangible services to improve the country lifestyle (ie, health)

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Conclutions

We need move towards LTE because we need more capacity for the users.

All people want the maximum available data speed rate even for the current service like a newspaper in the webcurrent service like a newspaper in the web.

LTE will make sense if covers new segments or if deliver cheaper capacity than current options for broadband service.

For LTE is need carry out a high speed transport network project, otherwise could reduce the LTE scope only to highly dense area.

Latam internet penetration is very low in comparison with U S A andLatam internet penetration is very low in comparison with U.S.A. and Europe, so the broadband service have a very big opportunity in the Region.

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Thank youThank you

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