Nokia Digital Deploy

Solution for TowerCo

Cellnex RfQ Lessons

1 © 2021 Nokia - Confidential –

Agenda

• TowerCo Market Context

• Pain Point
• Moving into the Services
• Nokia Digital Deploy
• Nokia Deploy Solutions
• AI and ML Deploy use cases

• Cellnex RFQ Lessons

• Group and Vision
• Cellnex RFQ Scope of Work
• Nokia Additional Service Proposal
• Conclusions and Lessons

2 © 2020 Nokia
 Tower Cos. Pain Points and Opportunity Analysis
Analysts identify operational complexity as the biggest hinderance to capture future growth opportunities
for Tower Cos.

Limited visibility Manual/ paper Growing OPEX & New Service

based complexity Opportunities
March 2020: The New Digital
Limited visibility on Inaccuracies and Multiple technologies Neutral Landscape for Tower Companies | BCG
infra evolution due to inefficiencies because and complexity, Ener hosting evolution
physical asset of complex, manual gy and operation cost with consolidation,
intensive operating and paper based site growing exponentially sharing and small cell
model data management. services

Business model Return on Asset Lack of New Technology

scalability Declining return on transformation Landscape
Asset intensive, physical assets with Human resource 5G vRAN/ ORAN, MEC
Digital business depreciation, intensive delivery open new Sept. 2018: TowerXchange - telecom tower industry
model to enable tool amortization and models, lack of possibilities for Tower Towerco business model diversification -
obsolescence TowerXchange – telecom tower industry
intensive economy of standardization for COs to expand value
scale MNC Tower Cos. chains

Nokia Digital Real-time visibility and First time right Quality with Complexity management with Customized Digital Deploy
transparency on Network advanced automation and real- AI, ML and AR tools solutions for neutral hosting,
Deploy
operations & evolution time collaboration for asset/operation managem HetNet etc.
ent
3 © 2021 Nokia
TowerCo Business Models
Moving into Services
Digital Transformation is one of the pillar to deliver more revenue with less cost
Risk or opportunity for Nokia Deploy services?

TowerCo - Core Business TowerCo - Asset Diversifications TowerCo - Migration into Services
(Tower) (Fiber & Small Cell) (NetCo-IoT-Smart Cities)

• Fiber to site, Metro rings

• Small cells & Macro-site as a service
• Tower co-location • Masts for small cells
Asset (MORAN or MOCN)
• Tower BTS • Urban infrastructure colocation rights • Data Centers for edge computing
for small cell
Services
Revenue Service • Power Optimization
• SA, CW, SE, CW and Rigging • Full TK solution including TI
s • DAS
• Small cells deployment & managt. • IoT module & network/solutions
Revenu • MSA Agreement for off-balance
• Roof-top rent location optimization • NetCo (5G & 4G) Neutral Host
e sheet under IFRS16

• Acquiring land • Partnerships with site/mast owners

• Long term agreements (for small cells) • Partnerships with data centre owners
Rents
• Site relocation & consolidation • Partnerships with dark-fiber • Partnerships with smart-cities
providers
Costs
efficency
• Asset Management System • Partnership with Field-operations • Partnerships with RAN and IoT
Operati • Remote Site Management player vendors
ons • Field Ops outsourcing –insourcing • Standardization and consolidation • Renewable solutions
optimization starting from Energy solutions • Preventive and 1st line maintenance

4 © 2020 Nokia
Nokia Digital Deploy can help TowerCo in the transformation journey

How….

1 2 3 4
Digitalization for full Manage growing complexity Digitization as a catalyst to Nokia Digital Deploy Global
transparency and real- by changing the way of develop new business Delivery Center to support
time infrastructure working. models TowerCo evolution &
(Digital twin) transformation

Nokia Digital Deploy can offer:

To obtain a comprehensive, real- To move faster on their digital Tower companies to expand their
• Real-time transparency and
time and transparent view of journey, companies must offerings with value creation in
control on infrastructure
infrastructure as is and evolution, transform their delivery models new growth business models:
evolution
including field activities progress with advanced automation with  Neutral Host (passive &
• A Team of thousand of
reporting. Fast, timely and the usage of drones, immersive active)
service experts, tools and
digitized access to accurate tower 360 camera and Lidar, enabling  Small-cell opportunities
data and site physical competencies available 24H
advanced collaboration with the  Edge Computing Services
configurations to support support of AI/ML/VR to manage • Customized Digital Deploy
collaboration. growing complexity.  Data Intelligence Services solutions for neutral host and
HetNet implementation

5 © 2021 Nokia

Confidential
Nokia Deploy Solution for Tawal
Nokia can help Tawal to Digital Trasformation….

Tawal Business Model TowerCo - Asset Diversifications TowerCo - Migration into Services
(Fiber & Small Cell) (5G IoT Smart Cities)

• Digital Site Walk – HW Recognition – 2D/3D Drawing

Nokia Solutions • TPA (Tilt, Plumb, Azimuth Antenna measurments)
• Digital Twin & Site Design Automation
with Unique
• Realtime Site supervision and Quality Audits for CW
Differentiation
• HetNet Sol: Digital Deploy with HER, SCORE & Design
for Tower Co. with ISP app
• NW Consolidation solution for Neutral Host

• Energy Solutions: Nokia Zero Footprint Rectifier &

Nokia Deploy Battery Solutions (FPRB, NILB, NOLB etc) • Active / Passive Antenna, DAS
Products with solutions for Nokia footprint
• All in one & other cabinet solutions (AIOC)
unique customer • Small cell Antenna
• Small Cell Energy Solutions
benefit
• Datacentre power solutions

• Digital Site Engineering Services

• Turnkey Services (e.g. Tawal)
Nokia Broader • Digital PM or Managed Deploy Services (e.g.
Services Focus for Tawal)
Tower Cos. • Small Cell, IBS/ DAS Implementation
services
• TI, Build & Modernization Services
AI & ML support effective, secure and sustainable digital deployment
Multiple Use Cases introduced
Automatic object identification for Real-time Defects Recognition Health & Safety PPE and Site
Technical Site Survey Hazard identification

Automatically evaluate
potential installation
defects

Provide immediate
response to field team on
pass/fail on specific
defects

AI/ML Algorithm can be adapted

Identifies Calculates to Customer-specific
equipment equipment check-points
and shows inventory
key specs

Reduced time to complete the site survey reports Faster & accurate completion of the checklist, ML/AI HSS verification support better HSS
since equipment is automatically identified reduces amount of site visits assurance and zero tolerance approach

7 © 2021 Nokia Confidential

Cellnex Digital Twin RFQ Lessons

8 © 2021 Nokia
Cellnex Group and Digital Twin Vision
Cellnex Vision is to invest in the Digital
Twin technologies to:

 Optimize and automate operational

processes
 Control and optimize assets
 Improve Customer relationships providing
Digital Twin platform accessibility,
 Increase sales, by easily detecting customer
needs
 Facilitating Material and Service
Procurement reducing the time-to-market
 Simplify communication between
stakeholders (i.e., landlords, customers)
virtual visits of sites, anytime and anywhere
 Anticipation and management of potential
Country 2022 2023 2024 2025 2026 problems
Spain 2.500 5.000 2.500  Optimize change implementation on real
UK 1.500 2.500 2.500 2.000 sites
Italy - 700 2.455 4.329 4.719  Evaluate any companies installed base, to
Switzerland - 500 1.000 1.000 1.000 integrate in the Cellnex portfolio
9 © 2022 Nokia
Cellnex Scope of work and Nokia Global and Local expertice
Cellnex requests: Nokia response:

 Modelling modules: Create a Revit Site Model  Modelling modules: comprehensive solution of
using inventory report and site inputs pre-defined Model sites + experience of GDC
provided by Customer. To be performed by a capabilities. Interest from Product Management
back-office service in a centralized way using to further develop and enhance this solution.
customer models

 Field Service modules: whenever inventory  Field Service modules: leveraging on partners
data are missing or inconsistent, site visit will and Nokia NDPd mobile App solution Nokia is able
be required to gather inventory and, where to fully satisfy customer requirements with best
required, static verification data in class speed and quality.
Onsite Survey
 Data Gathering Via Drone modules: whenever
there is the need to gather data via drone (for
instance the sizes, azimuth and tilt of the  Data Gathering Via Drone modules: long
antennas) experience with more than 5000 sites done in US
and Europe. Established collaboration with key
 Maintain & Update module: process of innovators on the market.
updating and maintaining the 3D models
 Maintain & Update module: leveraging on Global
Delivery Center capabilities and competence able
to fulfil customer requirements
10 © 2022 Nokia
Nokia Value added additional service proposal for Cellnex
• Services
• Site inventory checking and data mining
• Site design assessment and quality checks
• Site evolution, consolidation and standardization
• TowerCo designed solutions
• for combined energy system and power distribution, metering, battery storage and
pick hours optimization
• TowerCo antenna sharing
• Engineering consulting services

11 © 2022 Nokia
Conclusions and lessons after Spain and UK Cellnex RFQs
• Significant improvement reached for UK submission despite lower volumes and higher local cost
for data gathering due to higher local SPC and Static Verification requirement
• Better scope understanding gave possibility to optimize costs for UK submission from GDC point
of view. GDC is costing Inventory checking, while is under customer responsibility. Trial or POC of
the complete solution will be beneficial for better scope and cost tuning to be requested.
• Lack of TowerCo strategy delayed the Bid and no Bid decisions. Not clear why Nokia ?
• Nokia internal markup rules brought customer prices to no competitive level (far above market)
even for UK submission also after the feedback received from Spain where Nokia was 2 time more
expensive than the selected partner. To be verifies with Rafael who is the winner
• Nokia GDC Centralize Design solution can be a real competitive advance for TowerCo. Our
offering can be more optimize if extended to the Inventory checking, under customer
responsibility
• Global Site engineering portfolio will be enriched with this 3D site design. CoE is now looking how
to scale up their design capability using Photogrammetric combined with Autodesk Revit 3D
Modelling. C3 approval planned for P9 and available in Q1/23.

12 © 2022 Nokia
Back up slides

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Spain vs. UK Nokia response comparison
• Scope is the same except for Static verification requiring
Improvements in UK vs. Spain
in UK 2 certified riggers on site. In Spain we quote only 1
field engineer and 2nd was optional • PMS improvement – 27,4%
• 10k sites in Spain vs. 8,5k sites in UK
• PMS improvement volume wise – 14,6% (14
• UK RFQ documents much better prepared (more EUR per site), while UK SPC is higher then Spain
detailed explanation of scope, examples of input and
one
expected deliverables)
• Spain – leveraging on SubCo field activities (for 10% of • GDC TCO improvement volume wise – 38,88%
sites), while in UK – IRIS mode • GDC site base improvement – 28,09%
• PMS overhead: Spain – LDO, UK – IRIS. More lean (153EUR reduction in average per site)
organization in UK, since ROM provided by GDC
% Improvement UK vs. Spain Per site cost difference (improvement UK vs. Spain)

38,88% 37,16%
50,00% 27,43% 28,09% 26,08% € 640,32
14,62% 16,48% € 700,00
-11,94%
€ 600,00 € 544,40
0,00% € 473,35
PMS TCO PMS per GDC TCO GDC per Overall Overal Drone Field data Data € 500,00 € 391,45
site site case per site gathering Gathering € 400,00
-50,00%
+
Structural € 300,00 € 166,97
€ 152,95
-100,00% € 200,00 € 95,91
€ 81,89
€ 100,00 € 14,02
-150,00%
€ 0,00
-174,06% UK PMS Costs ES PMS Costs Absolute difference
-200,00%
PMS per site GDC per site Overal per site
14 © 2022 Nokia
Figures - costs
Absolute value cost improvement UK vs. Spain % Improvement UK vs. Spain
50,00% 27,43% 38,88% 37,16%
14,62% 16,48%
€ 6.403.165,04
€ 7.000.000,00 28,09% 26,08% -11,94%
€ 5.444.016,67 0,00%
€ 6.000.000,00

€ 5.000.000,00 € 4.023.442,22
-50,00%
€ 3.327.366,17
€ 4.000.000,00
€ 2.379.722,81
€ 3.000.000,00 € 2.116.650,50
-100,00%
€ 2.000.000,00 € 959.148,36
€ 696.076,05
€ 263.072,31
€ 1.000.000,00 -150,00%
€ 0,00
UK PMS Costs ES PMS Costs Absolute difference -174,06%
-200,00%
PMS TCO GDC TCO Overall case

UK vs. Spain site base difference

€ 3.000,00
€ 2.672,41
Main difference in data gathering
€ 2.500,00 between Spain and UK, and reason
€ 2.000,00 why costs in UK are higher is that:
€ 1.500,00 1. Spain – 1 person considered
€ 1.000,00
€ 923,66
€ 805,61
€ 975,10
irrespectively of activity on site
€ 544,40 € 640,32

€ 500,00 € 771,46
€ 901,80 2. UK – 2 rigging experts are
€ 95,91
€ 391,45 € 473,35 considered + higher daily SPC
€ 0,00 € 81,89
PMS per site GDC per site Overal per site Drone Field data gathering Data Gathering + rates.
Structural

UK Costs ES Costs
15 © 2022 Nokia
Figures - price
Total TCO UK vs. Spain Price Site base price UK vs. Spain

€ 10.514.953,20
€ 12.000.000,00 € 1.200,00 € 1.051,50
€ 8.916.372,60 € 891,64
€ 10.000.000,00 € 1.000,00
€ 823,81
€ 8.000.000,00 € 7.002.413,19 € 800,00 € 674,92
€ 5.736.820,37
€ 6.000.000,00 € 600,00

€ 4.000.000,00 € 1.598.580,60 € 400,00

€ 159,86
€ 148,89
€ 2.000.000,00 € 1.265.592,82 € 200,00

€ 0,00 € 0,00
PMS TCO GDC TCO Overall case PMS per site GDC per site Overal per site

UK Price ES Price UK Price ES Price

Site base % Improvement UK vs. Spain
Total TCO % view UK vs. Spain 30,00%
40,00%
35,66% 24,31%
33,41% 25,00%
35,00% 21,65%

30,00% 20,00%
25,00%
20,83%
15,00%
20,00%

15,00% 10,00%
6,86%
10,00%
5,00%
5,00%

0,00% 0,00%
16 © 2022 Nokia
PMS TCO GDC TCO Overall case PMS per site GDC per site Overal per site
Nokia strengths and opportunities

• Equipment Vendor
• Big player in the Telecommunication driving main standardization bodies
• Nokia Global delivery Center capability to support all the service solutions from the back office
• Service competence and capabilities and tools
• Radio and Transmission Network Planning
• Site Digitalization and site Modernization design
• Roll Out Management
• Supply chain and Material Management
• Quality Management
• Technical Support and Care operations
• Digitalization vision and tool automation , ML/AI use cases, API and Digimop capabilities
Nokia service solution for the TowerCo should be tailorized based on the TowerCo needs and maturity,

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Digitalization : Rethink Network Reinvent Deployment
Sustainability is the heart of what we do

Reduce carbon footprint with unnecessary Co2 Reduction

site visits
• Digital workflow orchestration platform
837 tons
• Digital applications
annually
Save paper with Digital Documentation
• Site survey using drones /video collaboration Rescue
platform
• Digital site survey reports 1300 trees
• Digital site design reports
annually

Less Person to Person contact via remote processes contributing to safe environment in
18 © 2020 Nokia
the current pandemic
Market trends CSPs and TowerCos

MNOs are under intense pressure to reduce costs, and this, combined with the rising
competition among towercos in many markets, is enabling them to make higher demands
on their infrastructure partners, not only for lower rental fees but higher SLA targets such
as guaranteed site uptime or power efficiency.
This will incentivise towercos to invest in the tools to predict and manage their sites,
power systems and fibre more intelligently
An example of such cooperation between Reliance Jio and Tower Vision in India. These
partners were assisted in setting up common data frameworks by being, in both cases,
new to the market, and therefore keen to use data intelligence to gain a competitive
edge, while also being unencumbered by legacy processes.

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TowerCo cost areas and trends
• Site Renting fee and infrastructure Cost
• Site inventory management
• Site evolution and infrastructure adaptation
• Space optimization with
• consolidation
• more outdoor
• all in one cabinet,
• zero footprint
• Power supply consolidation and energy efficiency and CO2 targets
• Maintenance cost
• with standardization,
• site supervision,
• preventive maintenance
• optimize, minimize site visits

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TowerCo go to market approach and investments

• Collect and align existing site information

• Inventory data base creation and data mining
• Standardize Digitalization and enhancing with 3d
Modelling
• Identify automation and ML/AI/VR solution
development and implementation
• Site consolidation and Operation optimization and
site visits
• Site evolution and Neutral Host evolution

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