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An all communicating world

An all communicating world. Innovation and Sustainability IN TIMES OF CRISIS. Bengt Wattenstr ö m Director Business Development. Seville, May 2009. Ericsson history - 133 years of leadership. 1876 Ericsson founded by Lars Magnus E. 1892 First sales to China

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An all communicating world

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  1. An all communicating world Innovation and Sustainability IN TIMES OF CRISIS Bengt Wattenström Director Business Development Seville, May 2009

  2. Ericsson history - 133 years of leadership 1876 Ericsson founded by Lars Magnus E. 1892 First sales to China 1900 95% of sales outside Sweden 1905 Operator and manufacturing in Mexico 1923 Manual to automatic 1968 Electro mechanics to computer control 1981 Fixed to mobile 1991 GSM/2G introduced 2001 3G introduced 2005 3G/HSPA, Mobile broadband introduced 2008 First 4G/LTE call demonstrated

  3. The vision • Present in more than 175 countries • Global leader in Telecommunications • 77,000 employees • 19,000 in Research and Development • 30,000 in Global Services • Sales 27 billion USD The prime driver in an all communicating world

  4. Climate, health & povertyrealities Global policy Financial crisis Public opinion Sustainability becoming business critical Business requirements Our management system and processes work – risks and opportunities are addressed Sustainability becomes part of core business, not an add on We can deliver solutions that beat competition, are profitable, and contribute to sustainability

  5. TelecommunicationsAn engine in development of society • CO2 must be cut by at least half by 2050 - while economy triples • Change in lifestyle not enough – innovation & technology key Industry Society Consumers Growth & sustainability can go hand in hand – with smart infrastucture

  6. Sustainability defined • What we mean by Sustainability = the triple bottom line. • Economic prosperity. Our direct economic contributions to society, and the indirect contribution that telecommunications makes to social and economic development. • Social equity. Communications is a basic human right and should be available to all. • Environmental performance. Our own performance, and how it can help our customers to minimize their impact, and how we can help to create a more carbon lean economy.

  7. Life-cycle approach (LCA) Scope: Our products life cycle Supply chain Manufacturing & office sites Transports Raw materials & chemicals Use phase Products energy consumption Offices & stores Vehicle fleet Ericsson Transports Office & manufacturing sites Business travel End of life Recycling of metals Collection/Treatment Landfill Resource depletion

  8. Some of our CR and Sustainability partners

  9. CO2 per subscriber: Ericsson networks 200 AMPS 150 Annual CO2 /subscriber [kg] 100 GSM WCDMA 50 25 Year 1985 1990 1995 2000 2005 2010 • Mobile Subscription now 25 kg CO2 per year – Same as driving car for 1h

  10. Understanding ICT’s carbon footprint • ICT responsible for 2% of global CO2 emissions ICT’s share of world economy is about 7% (Revenues/GDP) Mobile telecom is only about 0.2% of CO2 but 1.6% of GDP How can we reduce our own sector emissions? • ICT key to reduce the other 98% of CO2 emissions The enabling effect How can we help reduce other sector emissions?

  11. Innovation and technological improvements address the 0.2% 80% energy efficiency improvement in 3G portfolio 2001-2008 Green Site Solutions Village Solar Charger Ericsson Tower Tube

  12. CO2 emissions:How ICT can help reduce CO2 overall emissions If we reduce our emissions ICT can help reduce emissions 15-35% Annual Emissions Target area 2050 (~50-80% reduction)

  13. Sustainability offerings • Smart Grid Consulting Smart Grid Consulting helps utility companies cut through the myriad of AMI & AMM (Smart Metering) solutions available • Environment & Sustainability Strategic advice on impact of environmental & social issues on business development Energy consumption analysis & prioritisation, benefit analysis and business Casing • Product Dematerialisation Promotion of travel replacement, Dematerialization, Combined measures • Transport & Logistics Supply Chain / Logistics Diagnostic, Evaluation and Strategy • Data Centre Efficiency Evaluate energy of existing facilities, storage environment and utilisation efficiency and thermal conditions • Life Cycle management “Cradle to grave” analysis of network/mobile phone and operator activities • Ecology management Safe handling of infrastructure waste from operators • Ericsson Efficient Energy Solution Complete solution of alternate and renewable power including energy optimizationand power saving features.

  14. Smart metering • Energy “Internet” • Digital society • Smart business • Facility management • Monitor & control 15-35 % • Virtual presence • Smart transport ICT contribution potential Global Carbon Emission 2007 26% Energy supply 19% Industry 8% Buildings 13% Travel & transport 17% Forestry 14% Agriculture Waste 3% 49 billion ton Source: IPCC

  15. Solutions for the Sustainable City The City The Block Transport SolutionsSolutions For Utilities Surveillance systems Health Care systems Care of the elderlyMeetings with many participants The House The House Hold Video conferenceCallcenters Hosting of business support systems E-learning PC-support Datastorage & backup Alert SystemsCar pool system YOU Monitoring of:Water & Energy Consumption Light Fire Alarm Intrusion detector Digital Key system Remote Control of homeMonitoring of: Energy Cons.Light Digital keysVideo on Demand M-Wallet Travel Planner CO2 calculatorEco-life guidence M-Health

  16. Healthcare, Care of the Elderly • Analysis Equipment- Glucose • Pulse • Carbon dioxide • Sensors • - EKG • Temperature • Pain Voice controlled Remote control Example of Service: Alarm watch Camera Hospital related Polyclinics Specialists Home Care Relatives Movement- sensors

  17. Mobilebroadband closes the digital divide Over 400,000 people in the Millennium Villages throughout rural Africa Mobile communication and Internet to 12 village clusters in 10 countries: Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda. 18 villages and 15 towns provided internet services using HSPA

  18. Challenges and conclusions • Challenges • Lack of cross-industry collaboration • Behavioural changes • Translating hype to facts and figures • Policy areas, innovation and incentives • Intra-sectoral changes will not be enough (i.e., only addresses the 2%) • Need incentives for industry to work cross sectorally – research, technical innovation, tangible solutions • Governments need to do more to make the ”e’s” and the ”m’s” happen. Examples could include: • Structural funds – shift from railways and roads to ICT • Harmonize technologies – economies of scale and affordability • Encourage standardization - key to volume and keeping prices down

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