Roberto Sabella Research & Innovation Manager

1. Research and Innovation in Ericsson Lab Italy Roberto SabellaResearch & Innovation Manager Ericsson Lab Italy

2. 128 years of success • 1876 Company founded by Lars Magnus Ericsson • 1878 From telegraph to telephone • First export order • 1894 Trademark registered • 1897 Manufacturing abroad • 1923 From manual to automatic • 1968 From electro mechanics to computer control • 1981 From fixed to mobile • 1991 From 1G analog to 2G digital mobile technology • 1998 Convergence of telecom and data in fixed/mobile networks • 1999 Evolution towards 3G and Mobile Internet • 2001 First 3G WCDMA call on public network (Vodafone) • World’s first live seamless handover WCDMA to GSM • WCDMA roll-out starts globally • Strong R&D commitment • Driving industry standards • Innovation through strategic partnerships • Stimulating third-party application development Ericsson is leader in Technology Innovation Market

3. …about the R&D

4. Ericsson R&D Centers • Main Centers: • Canada • Finland • Germany • Ireland • Italy • Netherlands • Spain • Sweden ( 4 main centers) • Supporting Centers: • Brazil • China • Denmark • Hungary • Japan • Norway • USA • Partners • ETK • IXG • Tieto Enator • Semcon • Teleca • Wipro • TCS

5. Ericsson Lab Italy – Main Figures 147 people Milan • 672 employees (May ’04) • Multi-technology design center • 3 centers: Milan, Rome, Pagani • Average age: 37 years (45% under 35 years) • Average professional seniority: 9 years • Women: 21% • University graduates: 82 % 312 people Rome Pagani 213 people

6. Service & Core Network Network Synch. Intelligent Network LIS SDH-Radio AXE User Plane Network Mgmt Wireline Access Packet/Circuit LMDS NB-Access ERI commitment in the TLC network

7. ERI main responsibilities • ERI is an Ericsson “Main Design Center” with the following responsibilities: • - In the transmission and transport business area • PDU Wireless Broadband Access • High Capacity Radio • Microwave Network Mgmt & Element Mgmt • - In the core network business area • AXE User Plane and Narrowband Access • Ericsson Network Synchronization Center – ENSC • AXE Application: Intelligent Network - IN SSF • Lawful Interception Solution - LIS

8. Rome Site - Anagninasince 1974 Competence: Competence center for TLC systems and network architectures based on several technologies (STM, ATM, Wireless, IP, Photonic switching) Global competence center for network synchronization Competence center for microelectronics: ASIC/FPGA, SoC (System on Chip), Opto-electronics, FW-DP and FW-DSP Competence center for SW architecture using C, C++, and Java languages Product Responsibility: Pool devices for network services, switching systems, clock and synchronization, both for circuit switched and packet platforms Inter-working Units between switching and transport nodes based on different technologies (STM-ATM, STM-IP) High-tech ASIC/SoC elements for 2G and 3G Radio Base Stations Point-to-multipoint Wireless Broadband Access applications (LMDS) Ericsson Lab Italy – Our Sites in Italy (1)

9. Salerno Site - Pagani since 1990 Competence: Competence for systems and network architectures related to Lawful Intercept Systems Center for SW design, development, test and certification of AXE based tlc systems Competence center for the development of Element and Sub-Network Managers designed with traditional (C and C++) and Internet (Java and HTML) languages ProductResponsibility: Intelligent Network Applications (Service Switching Function) Lawful Intercept Solution (LIS Program, LI Mediation Device and Access Point) AXE User Plane (devices) Network Manager for microwave and optical transmission systems Ericsson Lab Italy – Our Sites in Italy (2)

10. Milan Site - Vimodronesince 1998 Competence: Design center for microwave radio equipment MMIC technology competence center ProductResponsibility: Point-to-multipoint Wireless Broadband Access Systems (WBAS) Point-to-point high-capacity access systems (SDH Radio) Ericsson Lab Italy – Our Sites in Italy (3)

11. IP-Based New Generation Infrastructures Multimedia Technologies (Speech & Audio/Video Processing) Fixed Wireless Access Mobile Networks (3G & B3G) Areas of Advanced Research • Multi-service architecture • Traffic Engineering • NGN control plane • QoS in heterogeneous networks • Architecture, Protocols, and algorithms for new generation systems • Optimized solutions for backhauling of WLAN and UMTS • Advanced integrated technology for MMIC up to 40 GHz for low-cost/high-performance terminals. • Multimedia format adaptation • Multimedia processors and gateways • Transport of multimedia flows • Pre- & post- processing video techniques • Multi-access networks • IP multimedia subsystems • User defined service provisioning • Security

12. Current R&I Projects

13. Past Present Future Mobile Nets 1G Mobile Nets 2G Mobile Nets 2.5G Mobile Nets 3G Mobile Nets B3G Mobile Networks Evolution • End of ’80s • Analog communications • Low security • Voice services • Incompatibility among systems: • Among operators • Among countries • Frequency: 900 Mhz • TACS, AMPS, NMT • Years ’90s • Digital Communications • Introduction of authentication and cryptography • Voice and limited data services (SMS) • Roaming • Among operators • Among countries • Two frequencies: 900 e 1800 Mhz • GSM, CDMA, PDC • End ‘90s Early ’00s • Voice and data services • Introduction of IP • Data services (tens of Kbps) • Multimedia services (MMS, download streaming) • E-mail, Internet • New multimedia terminals (N-GAGE) • GPRS, EDGE • 2003 … • Introduction of WCDMA • Voice and enhanced multimedia services (up to 2Mbps) • Videotelefonia • Streaming • Introduction of IP Multimedia (flexibility) • New terminals (PDA-like phones) • UMTS, IMT2000 • 2010 … ? • Multi access • Always Best Connected • Wide Band (100 Mbps) • All-IP network • Enhanced services based on user profile, preferences, location • De-located wearable terminals • PAN: personal area networks (Interconnection of personal devices) • ……

14. CV Box Server CPL Application Platform Web Server Dial out Conference MRFC MRFP AAA Client AAA Server DHCP2 DHCP1 P-CSCF2 P-CSCF1 S-CSCF Web Server Video on Demand Streaming Server Proxy Cache PRESTO Server Nodes Presence Server HSS Visited Network 1 Visited Network 2

15. CV Box Server CPL Application Platform Web Server Dial out Conference MRFC MRFP AAA Client AAA Server DHCP2 DHCP1 P-CSCF2 P-CSCF1 S-CSCF Web Server Video on Demand Streaming Server Proxy Cache PRESTO Server Architecture Presence Server SIP SIP SIP DIAMETER SQL SIP HSS SQL SIP SIP SIP FTP SIP RTSP HTTP HTML SMIL HTTP HTML Applet RTP RTSP SIP SIP SIP RTP Visited Network 1 RTP Visited Network 2 RTP RTP TCP

16. UMTS G.723.1 H.263 H.323 G.723.1 H.263 PS AMR MPEG4 3G-324M G.711 H.261 H.320 CS GATEWAY Media Adaptation in Heterogeneous Environment Example: point to point (video telephony) TRANSCODING AMR MPEG4 G.711 H.261

17. UMTS CS/PS Flow Control GATEWAY Media Adaptation to Cope with Bandwidth variation Example: bandwidth adaptation during a videophone conversation TERMINAL CONGESTION! AMR MPEG4

18. NGI: Evolution Towards “All-IP” Scenario Quick introductionof services QoS Globalization Competition Responsiveness End-user behavior New Infocom World Paradigm Shift Flexible and service-indep. Infrastructure: All-IP, multi -service, - class Consolidation Flexibility Scalability Traffic Growth Mobility Internet Old Telecom World Convergence Designed essentially For telephone traffic Technology

19. Growth of Internet traffic New Generation Infrastructure Requirements Effective use of bandwidth is needed! Costs are rising faster than revenues adding bandwidth is slow and complex QoS level as provided by connection oriented technologies (e.g ATM) All services over IP (including real time services such as conversional)

20. Other IP/Multi-Service networks Media Gateways Other Telephony networks Wireless Wireline CATV Enterprise networks Multi-ServiceNetwork Multi-Service Network Concept Robust multi-service solutions for the backbone core and edge towards converged networks for: • Supporting Voice/ Data and Fixed/ Mobile on the same infrastructure • Conversational and real time applications with same QoS provided by telecom networks MPLS based Network Services

21. Foreseen traffic: Contracts&estimation Unpredictable traffic Different QoS provided TE System Developed in Our Lab Optimize resource use Path Provisioning Global routing More than nowadays CBR Dynamic routing Local (CBR) Recovery congestion avoidance by pre-emption & re-routing BW engineering

22. 2G 3G Air Cell Phone Wireless Interface BTS Laptop computer RNC Wired Network Applications of FWA Systems Core Network LMDS RT 3G Backhaul LMDS BS LMDS BS LMDS BS WLAN Backhaul LMDS RT AP WLAN Basic Service Set Broadband Access

23. Advanced and low cost integrated technology for MMIC up to 40 GHz • Customer premise equipment is a key issue for a wider diffusion of LMDS systems! • High performance radio equipment • Low cost • Tight module integration • Key devices (up to 40 GHz band) : • Highly linear power amplifiers • Low phase noise oscillator • Methodology: • Technology investigation ( GaAs, Si Ge, InP) • Circuit design • Devices characterization and modeling • Prototype development

24. Milano ERI in relation with Universities & Res. centers • Milano-Politecnico • Pavia • Bologna • Ferrara • Research Laboratories • CoRiTel/Roma • CoRiTel/Salerno • CoRiTel/Bologna • PoliEri • PisaTel • Pisa (Univ.,CNR,S.Anna) • L’Aquila • Roma-Tor Vergata • Roma-La Sapienza • Roma 3 Roma Pagani • Napoli • Salerno • Sannio

25. Relationships with Universities Competence: from knowledge to results University Ericsson Lab Italy People: from student to hi-tech professional Research act. in cooperation Joint res. lab CoRiTel

26. R&I Relevant Outcomes (last two years) Patents • 19 New Invention Disclosures • 12 First filing applications • 15 Subsequent filing application • 16 Issued patents Publications • 40 papers accepted for publication on international journals, • or magazines, or Conference Proceedings • A special issue has been guest edited on “Traffic Engineering • in New Generation Networks”, on IEEE Network (March 2003) • Intl conference being organized on NGI, supported by IEEE Com. Soc. Courses, Stages, Thesis • 4 Courses provided by ERI people to Universities • 30 Students graduated in 2003-2004 (5 years degree) • 10 Stages (3 years degree)