The Future of Railway communications

1. InfoTrans 2010 The Future of Railway communications Detlef Hoffmann Regional Sales Director St. Petersburg, 28th October 2010

2. 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 circuit-switched to all-IP packet environment Our railway customers settle for nothing less than 99.999% carrier-grade reliability

3. 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 Variety of Railway applications • 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 • Increase attractiveness of train travel to generate more revenues • Improve security through remote security monitoring • Offer an unlimited range of Internet-based information, news, and entertainment services *) ERTMS: European Rail Traffic Management System

4. Old communication systems: Expensive to maintain, not interoperable Trackto train radio Shuntingradio Paging Automatictrain control Tunnel radio Vehicle mountedradio Operation & maintenance radio

5. GSM-Railway: One integrated and standardized solution GSM-R

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

7. GSM-R Industry Group, founded in 2001 and has currently 9 Industry members Who is the GSM-R Industry Group ? • 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 etc 7

8. The GSM-R market leader: 27 contracts in 19 countries Nokia Siemens Networks:Outstanding competence as a railway supplier

9. Germany Belgium Switzerland Greece Spain 11 Nokia Siemens Networks GSM-R references countries in Europe Sweden 7.500 km End-to-end network supplier incl. infrastructure (MSC, radio NW, terminals) Finland 5.000 km End-to-end supplier incl. infrastructure (MSC, radio NW, terminals, disp. system) Denmark Sweden Norway Finland Norway 3.000 km End-to-end supplier incl. infrastructure (MSC, radio NW, terminals, disp. system) Netherlands 3.000 km End-to-end supplier via KPN-joint venture incl. infrastructure (MSC, radio NW, terminals) Belgium 3.000 km End-to-end network supplier incl. infrastructure (MSC, radio NW, terminals) Switzerland 3.200 km End-to-end supplier incl. infrastructure (MSC, radio NW, terminals), full managed services Netherlands Spain HSL+ ext lines End-to-end supplier incl. infrastructure (MSC, radio NW, terminals) Italy 7.500 km End-to-end network MV integration on Roma Napoli HSL incl. infrastructure (MSC, radio NW, terminals) Italy Portugal

10. 8 Nokia Siemens Networks GSM-R countries outside Central Europe • Australia • DoT 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

11. European major Rail lines overview

12. Eurobalise Eurobalise Train control systems - ETCS level 2 configuration on GSM-R GSM-R GSM-R phones& cab radio GSM-Rantenna Inter-locking RBC European vital computer ETCS antenna

13. 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

14. 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 Level 1 withsecondinfill balise Level 2 Level 2 withoptimizedblock sections Level 3 Source: UIC Report, ERTMS Annual Conference, 2007

15. Solve your business challenges and achieve environmental benefits Broad band on Trains

16. Laptops &netbooks • Portable usage • High data volume • High processing capacity • Many devices • Mobile usage • Always-on Smartphones New services, new devices & data flat rates multiply capacity needs Bandwidth-hungry applicationsgo mobile Worldwide mobile traffic [ExaByte/month] 2.5 Handhelddata traffic 2.0 Wireless routers • Semi-permanent usage • Highest data volume • Shared connection 1.5 Laptopdata traffic WiFi HSPA 1.0 50TB Voicetraffic 0.5 2008 2009 2010 2011 2012 2013 2014 2015 Source: analyst reports and internal research

17. Turnkey solution for Broadband on trains with seamless connectivity Internet Network Operations Center Flash-OFDMWiMAX LTE Satellite GSM/GPRS WLAN/ WiFi UMTS/HSDPA Multi-link endpoint router Internet onboard server/ main rack Secondary rack 19” Dynamic wireless distribution system (WDS) user WLAN 802.11b/g Secondary coaches Main coach

18. Railway applications help you to master these challenges Online ticket sales& seat reservations** WLAN/VPN to passengers** Real-time passengerinformation** Entertainment**(video, audio, gaming) Increaserevenue Advertising** Passenger counting*** Train control systemsETCS level 2* RailwayApplications Energy metering*** Ensuresecurity CCTV videosurveillance*** Improve efficiency Train diagnostics & monitoring*** Cargo & objecttracking*** Fleet networkmanagement*** Application based on *) GSM-R; **) Broadband on trains; ***) both

19. Thalys high speed train passengers enjoy broadband Internet • Specific challenges • High speed lines 320km/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

20. 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

21. Solve your business challenges and achieve environmental benefits The future Evolution of GSM-R

22. 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.

23. Main drivers for a Next Generation Railway Communication System • Leveraging the 3GPP eco systemFollowing the 3GPP 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). Technologic evolution • Increasing use of data applications and new operational services requires efficient networks • Surveillance, passenger services. • LTE offers more than changing the radio i/f. Broadband applications • Simplified network structure, advanced configuration and supervision technology (e.g. SON - Self Organizing Networks) • Automation reduces human faults, • Self healing networks, speed-up maintenance. Operational improvements

24. 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/eNB deployments • Faster roll-out OPEX

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

26. 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 “One-stop-shopping” with e2e ability Number 1 Active participation in European andinternational railway standardization Strategic cooperation with local partners for necessary services and products

27. Solve your business challenges and achieve environmental benefits Thank You for your attention !