The Connected Possibilities of Mobile Broadband...applications and augmented reality, cloud computing, Near-In this White Paper, Huawei describes the connected world; a technology

The Connected Possibilitiesof Mobile Broadband

Copyright © Huawei Technologies Co., Ltd. 2012. All rights reserved.

Trademark Notice

General Disclaimer

, HUAWEI, and are trademarks or registered trademarks of Huawei Technologies Co., Ltd.Other trademarks, product, service and company names mentioned are the property of their respective owners.

The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

No part of this document may be reproduced or transmitted in any form or by any means without prior written consent of Huawei Technologies Co., Ltd.

HUAWEI WHITE PAPER

FEBRUARY 2012

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Contents

1. A Changing World ............................................3

1.1 Mobile is Changing User Behaviour ................3

1.2 The Smartphone is Connecting People to the World ............................................4

1.3 Services and Apps are Changing People’s Lifestyles .............................................5

2. Mobile Broadband as a Business Enabler .......5

2.1 Mass Market Opportunities .............................6

2.2 Enterprise Opportunities ...................................6

2.3 Vertical Opportunities .......................................7

3. Innovative Technologies Enabling the New Possibilities ......................................................8

3.1 Faster and More Efficient Networks ...............8

3.2 More Revenues from Operational Excellence ........................................................ 10

4. Conclusion ....................................................... 11

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1. A Changing WorldIn the next 24 hours, 180,000 people will move to a metropolis. For the first time in history, more people now live in cities than in the countryside. The transformation is associated with increased migration and mobility, and at the same time, it is changing the relationship between humans and digital technology.

1.1 Mobile is Changing User BehaviourConsumers are continuously and dynamically adapting to the social context they are in, and are increasingly using new technologies in line with the lifestyle they have adopted and this will become even

more fundamental. The connected world, particularly the Internet, has significantly changed consumer behaviour and this is only the beginning. Consumers increasingly spend more time reading digital rather than print versions of newspapers and magazines. E-commerce is also growing much more rapidly than in-store sales. In regions such as Europe and North America, more than half of the population is currently buying goods online. • Mobilerules. Global mobile

subscribers overtook fixed subscribers in 2002. Sales of Internet-enabled mobile phones now exceed desktop computer sales. Mobile Internet usage will

overtake desktop Internet usage by 2014 (see fig. 1).

• Broadbandisaright. The convergence of both mobile broadband and the Internet will undoubtedly expose consumers to additional needs and more changes in their consumption behaviour. Consumers will no longer see the mobile phone as a communications device but will treat it more like a personal assistant that enables access to relevant information whenever and wherever it is needed. In this context, today’s mobile phone is becoming such an important aspect of the user’s daily life that it has moved from being a mere technological object to a key social object capable of influencing consumption behaviour in an all-pervasive way.

• Experienceistheking. To accommodate this behavioural change and to take the mobile user experience to unprecedented levels, new technologies have emerged. To name a few: geo-location, out-building and in-building navigation, HTML5, contextual applications and augmented reality, cloud computing, Near-

In this White Paper, Huawei describes the connected world; a technology vision for the next decade where mobile digital technologies have the potential to empower everyone regardless of who they are or wherever they may be located.

In a world increasingly characterized by migration and mobility, it is paramount that nobody is left behind. Digital nomads and remote workers currently attract much of the attention but the connected world will only become a reality when our industry digitally empowers new arrivals in a 20 million megapolis like Mumbai or small farmers and artisans in peripheral rural regions. These will be the tipping points.

To support the connected world, technologies will have to be multi-purpose, multi-standard and inclusive. A vast web of virtual relationships and digital interactions between people and things will require flexible, distributed broadband technologies as a backbone and cloud infrastructure, intelligent networks and multiple layers of IT and support systems binding everything together.

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Fig. 1: The impact of mobile Internet on user consumption behaviours

Source: Informa Telecoms & Media. © Informa UK Limited 2012. All rights reserved

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Field Communications (NFC), and ad-hoc connectivity such as Digital Living Network Alliance (DLNA)-defined guidelines, the High Definition Multimedia Interface (HDMI), voice and sensory-based recognition, Unified Communications (UC), and M2M. The combination of these technologies will undoubtedly revolutionize the way mobile services are offered.

1.2 The Smartphone is Connecting People to the WorldNew technologies are arriving in the smartphone segment first and these devices generally possess the most powerful hardware footprint, including the fastest processors and most advanced features. Today these devices have more computational power than the largest computers a generation ago. The majority of smartphones have now sought to include an intuitive UI, advanced multimedia and Internet-friendly features. This has helped increase their appeal to the consumer audience, making them the fastest growing segment of the mobile phone market.

• Moreandmorepopular. Today more than 700 million consumers are enjoying the use of smartphones and this is only the beginning. While it took a decade for smartphones to reach the half billion users mark, it will take only two years for these devices to be used by 1 billion consumers and another two years to cross the 2 billion barrier. The number of smartphone users is forecast to exceed the 2 billion mark

by 2016, which will represent almost 40% of total mobile subscribers worldwide.

• Moreandmoretypes. The ubiquity of wireless connectivity and economies of scale will give rise to a wide range of new devices (see fig. 2). A growing requirement for faster connection speeds has given rise to a range of electronics goods that offer broadband data transfer, from mobile handsets to laptops to consumer electronics. In the fixed-line world, this has been the case in many markets for years and it is now progressively materializing in the wireless world, benefitting from the emergence of mobile broadband technologies such as HSPA+ and LTE. Given their data-centric nature, tablets and other consumer electronics devices will increasingly contribute to data revenues. Total sales of tablets are expected to exceed 300 million by 2016. It is estimated that by 2016, 700 million tablets will be in the hands of consumers, in addition to over 2 billion smartphones, and some 250 million e-readers.

TABLETS

Screen size (inches)0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Productsegments

Multimedia (consumption)– (ARM-based)

PC (productivity) – (x86-based)

Handsets/ smartphones

E-readers Notebooks

Dongles/USB/MiFi

Pocketable(mobile)

* *

*

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Smartbooks

Netbooks

Fig. 2: Ubiquity of wireless connectivity giving rise to a broad range of new

device types


2016664,889

Total revenues

2011 336,035

Fig. 3: Global mobile applications and services revenues


Revenues pa (US$ mil.) 2011 2016

SMS/MMS 127,181 156,284

Email/IM 22,630 51,607

Music 11,383 15,438

Games+ 7,492 28,200

Images 2,725 4,559

TV and video 1,103 3,854

Mobile Internet 111,215 235,291

Portable Internet 42,493 92,252

Location-based services 1,109 4,390

Social Networking 807 2,023

Mobile payments & banking 3,938 36,869

Applications store 2,477 25,504

E-publications 1,481 8,616

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1.3 Services and Apps are Changing People’s Lifestyles The era of smartphones and touch-screen interfaces has turned the mobile content and services market upside down and mobility has emerged as the motor for change and innovation in the Internet and the global entertainment industries.• Trafficconsumptionis

necessary. For the operator, mobile broadband has developed in a relatively short period of time as the second or third largest revenue stream after voice and rivalling SMS. On a global basis, mobile Internet revenues overtook SMS in 2011 and there is plenty more to come. Mobile Internet end-user revenues were US$111 billion in 2011, according to analysts, a figure that will grow by 16% to reach US$235 billion in 2016 (see fig. 3). Mobile broadband revenues from portable users – people using laptops or tablets – will rise from US$42 billion to US$92 billion at the slightly faster rate of 17% per year over the same period.

• Videomakeslifebetter. Traffic will grow exponentially and video will be a major driver of this growth. Many operators are now reporting that streaming video is already generating up to 50% of total traffic (see fig. 4).

2. Mobile Broadband as a Business Enabler"The future is already here – it's just not evenly distributed"

William Gibson, 2003

Communications has moved beyond voice in a remarkably short period of time. ‘Conversation’ is an increasingly poor word to

describe the expanded scope of communication in the digital world as fig. 5 illustrates. The emerging world supports acute awareness and diverse connections. As part of this, technologies are knowledge centric: They aim to connect people and the objects in their lives for useful purpose. As a consequence, the mobile ecosystem will need to radically expand with new partnerships to enable it to encompass a wide range of everyday digital interactions.

Mobile broadband has already turned into a major revenue stream and has become an indispensible part of our lives. However, this is only half of the story, as data traffic’s growth has also been impressive and will continue to grow at a rapid rate, with an exponential increase anticipated over the next five years. In a connected world, traffic volumes will increase yet further, not just because of the appetite for smart device-driven mobile connectivity but also because of a whole new layer of ‘everything-everyone-everywhere’ interactions.

Digital interaction is a more relevant term for the emerging connected world, and must demonstrate three core characteristics:

201639,343,193

Total data traffic

2011 3,885,023

Fig. 4: Global mobile consumer data traffic by application, 2011 and 2016


Data traffic (MB mil.) 2011 2016

SMS/MMS 3,819 8,613

Email/IM 154,746 461,412

Music 134,127 1,525,170

Games+ 194,350 2,342,882

Images 1,126 3,546

TV and video 272,149 5,986,223

Mobile Internet 266,069 3,562,927

Portable Internet 2,516,359 22,309,310

Location-based services 11,123 127,491

Social Networking 159,969 1,510,667

Mobile payments & banking 34 296

Applications store 138,359 1,053,610

E-publications 32,796 451,046

Things-to-things

Many-to-things

One-to-thing

Many-to-many

One-to-many

One-to-one

Con

vers

atio

ns

Fig 5: The expanded scope of digital interactions in the connected world


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• UltraBroadband: The mobile network will need to provide enough bandwidth to support any apps, including HD or 3D video, without creating a bottleneck. It will be the defining challenge for the capability of the mobile network.

• UbiquitousConnectivity: Everyone and everything can be connected to this digital world through a ubiquitous mobile network. It will significantly change peoples’ lifestyles and their world by supporting intelligence and mobility everywhere. And value is created as the connected mesh multiplies.

• ZeroWaiting: This is the expectation that high-quality user experience and highly efficient digital interaction will be delivered with minimal delay. Business value will come from the user experience.

A new factor that is absolutely central to the evolution of this rapidly-evolving information age is the user experience. The multiple exchanges and interactions that are enabled by ubiquitous connectivity cannot and will not thrive if the user experience is not adequately addressed. Technologies must be multi-purpose and inclusive, whatever an individual’s place in society and wherever they may be located.

2.1 Mass Market Opportunities We may have already come a long way but there are many factors that will influence how quickly the connected world takes shape and what future form it takes. Technology clearly remains central, but there are plenty of political, economic and social factors which will influence the technology choices

made as well as reflect the views of infrastructure stakeholders. Some of these include the following:• Licensefees: A more nurturing

approach to communications is emerging and policy-makers and regulators are becoming increasingly supportive. 3G involved multi-billion-dollar upfront license fees but now and in the future governments will accept much lower payment for mobile broadband spectrum because they appreciate the importance of ubiquitous coverage and the added value this delivers for society.

• Mandatedinvestment: Other examples of this nurturing approach include technology-related government initiatives in areas such as smart metering and eCall – a European crash notification service scheduled for 2015 – which create new digital interactions and revenue streams.

• Smartsustainablecities: The idea of smart buildings and smart cities is not a new one from the point of view of technology but there is now growing public and private sector interest in investing in critical infrastructure or collaborative projects focussed

on smart cities, partly driven by environmental and energy-related pricing issues.

• Collaborativeworking: Collaborative working methods will have a strong influence on the digital world whether it is interaction between remote workers, virtual organizations or distributed work groups – or, for that matter, collaborative robots (Cobots).

• Athirstforsimplicity: Consumers and businesses are hungry for the benefits a digital world will bring but they want it to be delivered in a way that simplifies their life rather than complicating it.

• Servicenottechnology: The democratization of both mobile broadband and the Internet will change behaviour with consumers increasingly seeing the mobile phone as a personal assistant enabling different types of exchange and interaction with the world whenever and wherever it is needed. This holds equally true for other types of connected devices and objects.

2.2 Enterprise OpportunitiesIn this digital world, it is likely that we’ll use the same connected devices to manage our personal and

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North AmericaAsia PacificWestern EuropeEastern Europe & CIS

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Fig. 6: Numbers of operators ramping up cloud service provision


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professional lives. Consumerization of the enterprise – where consumer technology finds legitimate use in business – is no longer a discussion point, but a fact.

Dual-persona smartphones, mobile device management and, not least, personal clouds are part of an expanded catalogue of services now on offer to enterprises – from the very smallest to the very largest – and their employees.

Offering secure, on-demand access to enterprises’ digital assets is becoming a prerequisite, as cloud computing disrupts traditional buying patterns for enterprise ICT. But the shift to at-will, opex-driven purchasing models is expanding the addressable enterprise wallet share to the benefit of operators. Worldwide, 130 operators now offer cloud services (see fig. 6). And in 2011 alone, operators launched 170 new cloud services and invested more than US$13 billion in cloud infrastructure. A quarter of a million square meters of data centre space are now under construction to support operators’ cloud operations.

A major overhaul of operators’ enterprise portfolios is underway. Operators’ connectivity-centric service portfolios were stagnant before the arrival of mobile broadband. Certainly, there was a will to deliver better, cheaper connectivity, but few revolutionary ideas about how businesses could work smarter. Today, mobile broadband is a catalyst on two levels: it is reinventing existing enterprise services and creating entirely new opportunities.

Take unified communications and collaboration (UC&C), targeted for years at so-called knowledge

workers, largely sited in an office, when the wider enterprise universe is populated with more than office-bound knowledge workers. With exchange and interaction being enabled by via mobile broadband, all workers can now gain productivity benefits from UC&C – whether they’re working on a pipeline, in a power station or from a police car.

2.3 Vertical Opportunities Vertical industry ICT – as distinct from generic enterprise ICT – is an exciting new frontier for operators. This means the creation of services customized for a particular industry, although they may use applications and technologies in common use. According to a recent survey, nine out of 10 operators believe that services for connected verticals can grow their top-line revenues, and they are reorganizing to target them.

Globally, connected verticals activities are legion: Smart grids, connected trains, digital oil fields, m-health and m-government projects are multiplying. Mobile broadband coupled with cloud computing and M2M are the key technologies in play. The diversity of vertical sectors (see fig. 7) is stretching operators’ technology and go-to-market skills but

also provides an opportunity for operators to offer well-targeted enterprise services. Clever use of cross-industry standards and platforms will be important if economies of scale are to be achieved.

In the last two to three years, M2M has emerged as a potential game-changer for the mobile industry and will be another driver of the connected world. This coincides with the adoption of the term ‘Internet-of-things’ – the idea that the Internet becomes much more than something that is accessed from the computer.

Smart cities and smart devices offer some of the most exciting opportunities in M2M. Transport and utilities are two of the central tenets to the smart city concept and both will use wireless technology. There are already 50 million smart meters in the world today, a figure which analysts expect to grow seven-fold by 2016.

Transportation also holds huge potential for wireless connectivity. Fleet management is an established M2M application but intelligent transport systems and connected cars will, in the longer term, become much bigger markets.

% of respondents0 5 10 15 20 25 30 35 40 45 50

AgricultureOther

PharmaceuticalsAutomotive

TransportationPublic sector/public safety

Media/broadcastHealth

Financial servicesEnergy & utilities

7.79.911.5

22.539.0

42.342.9

44.545.1

47.3

Fig. 7: Which verticals are actively targeted?

Note: April 2011 vertical markets global survey involving 182 telecoms-industry respondentsSource: Informa Telecoms & Media. © Informa UK Limited 2012. All rights reserved

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Most M2M applications up to now have mainly involved the exchange of small amounts of data, albeit often in large numbers. However, new higher-bandwidth applications are beginning to emerge, particularly where operators have launched LTE networks. In Scandinavia, there has been some interest from journalists using LTE networks for live video broadcasts as an alternative to satellite links. The healthcare and retail sectors also hold rich potential for the use of video-based applications. The growing use and availability of high-definition video and concepts such as augmented reality also have extreme relevance and applicability to M2M markets even though their initial application is likely to be in the consumer sector.

3. Innovative Technologies Enabling the New PossibilitiesThe growth in data traffic is placing unprecedented demands on today’s mobile networks. Advances in radio access technology are already delivering on the promise of increased network capacity, higher speeds and more efficient use of spectrum, providing an improved user experience but also fuelling

the growth cycle of ever more sophisticated devices and data-rich applications.

New technologies will be required to enable faster, more efficient networks as well as support new revenue streams. Given the right tools, an ultra mobile broadband environment is achievable.

3.1 Faster and More Efficient NetworksContinued evolution in the RAN and in traditional network bottleneck areas such as backhaul will be accompanied by a number of technical innovations that will help mobile operators to further enhance network performance, coverage and quality, with innovations including small low-cost radio cells, SONs and cloud RAN: • LTE: By the end of 2011, 49 LTE

networks had launched around the world, and a further 346 are planned to launch before end-2016 (see fig. 8).

• LTE-A: Meanwhile, mobile operators have already started discussing LTE-Advanced, many before deploying LTE themselves. A large reason for these discussions is that LTE-Advanced will enable carrier

aggregation, the use of discrete parts of spectrum in the same LTE-Advanced network. Also, the majority of operators own fragmented spectrum assets, and LTE-Advanced has the potential to make use of them. LTE-Advanced is the first technology to unify spectrum across many different bands and so will allow mobile broadband without restrictions. In addition to improved peak data rate and spectrum flexibility, LTE-Advanced will support spectrum aggregation, heterogeneous networks and co-operative communications.

• SingleRAN: As they evolve their networks towards LTE and LTE-Advanced, a growing number of mobile operators are migrating to a single RAN. This allows them to support multiple radio access technologies on a single base station platform, so developing an improved cost structure for future mobile broadband growth while ensuring continued support for legacy technologies. A single RAN platform allows mobile operators to make more efficient use of spectrum resources, and to consolidate in areas such as backhaul, helping speed the migration towards an all-IP transport network.

• Smallcell: The fast traffic growth mentioned earlier is not evenly distributed, traffic increases at even higher rates in peak traffic areas. Spectrum has to be re-used more intensively by making use of technologies with higher spectrum efficiency, cell splitting and small cells that make more efficient use of spectrum. The addition of small cells creates a new network architecture and new

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Fig. 8 Planned LTE network launches by region to 2016


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demands on operations. Small cells boost capacity where it is really needed whether it is in peak traffic areas or at the cell edge. By coordinating spectrum between macro and small cells, capacity can be increased by more than 100% per added small cell in the assigned spectrum band.

• SON: Simplified installation and set-up will mean that small cells can be quickly and easily deployed to provide infill coverage or to target hotspots, with self-organizing network (SON) capabilities automatically handling everything from neighbour cell relations to cell-load management and smart handover between the small cell and macro networks

• Cloud-RAN: Another innovation is the introduction of the Cloud-RAN, whereby the baseband processing function of the BTS is separated from the radio and antenna unit by the creation of baseband ‘pools’. These can then serve potentially hundreds of low-cost radio cell sites that can be flexibly and strategically deployed by the mobile operator for optimum coverage and capacity.

• Backhaul: The provision of adequate and flexible backhaul will be crucial for the success of small cells and an important concern for mobile operators. Those with access to fibre will benefit from its virtually unlimited bandwidth, whereas greater flexibility can be provided by traditional point-to-point or point-to-multipoint microwave systems.

• HetNet: In future, a diverse range of small cell and macrocell architectures supporting multiple radio

access technologies will be required to address the varying levels of demand and coverage requirements in mobile networks. This range of cells will co-exist in a heterogeneous network environment, fully integrated and managed by sophisticated radio planning. Many mobile operators have already embraced small cells through their growing use of wireless LANs and femtocells, as a means of offloading data traffic from the cellular network or extending coverage. In the heterogeneous network, SON support in a multi-vendor small-cell environment will be crucial.

• Spectrumutilization: Mobile operators are currently investing in networks and technologies that utilize their most precious resource: spectrum. Spectral efficiency is increasing with LTE and LTE-Advanced which allows operators to service more users with the same amount of spectrum. Infrastructure technologies, including software upgradable base stations and platforms that are future-proof can further alleviate operator concerns for future spectrum utilization.

• Newspectrum: With significant amounts of TDD spectrum available around the world, TD-LTE is rapidly gaining ground on FDD and will be used extensively for LTE in a number of countries, representing as much as 40% of the global addressable market for LTE by 2016. Frequency allocation is fragmented (see fig. 9). Without convergence, mobile operators, network equipment vendors and device vendors won’t be able to achieve economies of scale to stimulate and support grassroots network usage. Spectrum fragmentation and shortages will add to technology costs and the dream of global roaming will not be easily realized if spectrum is not harmonized.

• Multi-banddevice: The task facing device manufacturers is to address the proliferation of spectrum bands for LTE. As the technology matures and operators gain visibility on what bands they are likely to support, it will become easier for device vendors to integrate support for additional bands. The growing maturity of MIMO and the introduction of adaptively tuneable antennas will facilitate the integration of multiple bands

Major regions including Western Europe and North America have already earmarked around 500-600MHz of spectrum in the bands shown, but other markets lag behind with barely 200MHz or less.

2600FDD: 15%2300TDD: 15%

2100FDD: 12%

1900TDD: 10%1900FDD: 1%

1800FDD: 7%900FDD: 3%

800FDD: 12%

700FDD: 11%

2600TDD: 14%

Fig. 9: Spectrum Soup: LTE connections by frequency band by 2016


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into small form-factor devices such as mobile phones, with an optimal number of perhaps eight bands for an LTE device to ensure global roaming across popular spectrum bands.

3.2 More Revenues from Operational Excellence As operators continue to deploy faster and denser networks, their need for new revenue streams is now becoming a critical priority. There are currently several trends in the market, ranging from operator-branded services powered by IMS to partnerships with Web-based service providers (OTT players) to provide services to satisfy end users’ requests. Furthermore, operators are seeking ways to monetize existing networks and spectrum more efficiently by deploying next-generation access technologies that take advantage of faster computing platforms.

The technologies available currently to operators to increase revenues can be segmented in two main categories: technologies for new revenues and technologies for more efficient monetization of existing networks (see fig. 10).

• PCC: In the core network, operators can use policy-based management (through the Policy Charging and Rules Function – PCRF) as one of the tools to create new pricing plans based on services or tiers. Particularly interesting service plans are based on social media services, notably Facebook or Twitter, where operators can monetize occasional or low-ARPU data users by offering them low-cost, unlimited access to either of these services. Also, the more traditional tiered plans may depend on volume, time or even speed of access.

• SDPsandIMS-basedservices:In the services layer, operators can use several technologies to launch their own services. These technologies include IMS, Rich Communications Suite (RCS) and HD voice, which is expected to offer higher-quality telephony services. Service Delivery Platforms (SDPs) are also widely used today to power operator-branded content portals, especially in developing markets where operators have a very large subscriber base. SDPs are also starting to be

increasingly used to consolidate service creation and control for multinational operators, even across several continents.

• APIpolicy: Operators have the opportunity to attract new revenue streams by opening APIs to third parties, primarily for enterprise services. The mobile operator can become a matchmaker between Independent Software Vendors (ISVs) and enterprise customers and SMEs and become relevant in a market which was previously not addressable. Operator APIs are interesting since the mobile operator holds subscriber data that are not available to any other company in the value chain and can utilize this data to provide value for both end users and upstream partners. Mobile operator partnerships with OTT companies (including Skype, Spotify and Facebook) have been very well accepted in the market and have helped to reduce churn while providing a good user experience.

• Newbusinessmodels: Moreover, 4G networks are packet-based and more suited towards data and Web services, giving a better advantage to mobile operators to launch new services and partnerships to maintain an enhanced user experience. Operators have much to gain from partnering and cooperating in order to make the best use of their own assets and others (see fig. 11). This is something that will be essential for success in the changing world.

• OSS/BSS: Whether it be LTE, LTE-Advanced or high-speed IP-based network infrastructure, all will require a new generation of IT support systems to help foster a renewed focus on user

Third party

ServiceBSS

Cloud-based ITAPIs

Network layers Operational excellenceNew revenues

Vertical markets

New kinds of devices

Policies for:Service plansTiered plans

Policies for:Traffic management

LTELTE-advanced

Saas/PaaSCEM

Core

Access

Fig. 10: Technologies for new revenues and operational excellence


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experience, business intelligence and innovative ways of dealing with network congestion. Managing multiple services is becoming increasingly complicated as it involves a wide range of OSS/BSS, IT and network elements. Service management will need to be delivered in a holistic and end-to-end fashion if operators are to provide an integrated service experience. Joining varied sources of user data with analytical tools will also be needed to help operators

manage the experience of their customers and provide a customer-centric view of what is going on.

• Cloud-basedservices: Full advantage will also need to be taken of cloud-based services. Telecoms operators are already building, buying or partnering on a massive scale in order to support cloud-based services, with 80% of investments and acquisitions involving data-centre infrastructure. Cloud services create major opportunities for operators to

empower their customers given that cloud computing depends on a combination of both IT and telecoms expertise. Network reach, control and complex service-management capabilities will all need to be delivered if cloud services are to function effectively. However, partnering will remain important, with SaaS relationships playing a strong role as well as links with infrastructure and professional services vendors. It can sometimes be forgotten that operators’ cloud-enablement services come in two categories: not only go-to-market services that facilitate the launch of cloud services but also operational services which use the cloud’s operational model to manage the operators’ own services. Operational service will allow operators to exploit the cloud to improve their own operations, including, for example, cloud-based M2M service management and cloud-based billing. It is a good balance of all the above strategies which will help cloud services go mainstream and empower the connected world described in this White Paper.

MVNOs andwholesale

Operator competencies• Connectivity• Information• Intelligence• Retailing• Branding• Billing• Trust• CRM

Operator’s network platform

CE manaufacturers

OTT players

Governments

Consumer brands

B2B2C

B2C

Dire

ct c

usto

mer

s

Indirect customers/users

C2B, C2C B2C

B2B

Vertical sectors• Automotive• Healthcare• Education• Energy

Fig. 11: Flexibility & cooperation is the name of the game


• Themobilebroadbandindustrywillcreatenewpossibilitiesforpeople,dramaticallyimprovingnotjusttheirquality of life but also their productivity at work. The three core characteristics of the connected world – Ultra Broadband, Ubiquitous Connectivity and Zero Waiting – will underpin and support the emerging mobile broadband world.

• Userexperienceisanotherkeyfactorthatwillbeabsolutelycentraltothisconnectedworld,supportingcustomer retention and building business value. To deliver an optimum User Experience in a world of limited wireless resources will require both continuous improvement processes and recognition that something which is merely good is not good enough.

• Mobilebroadbandwillneedtoberedefinedintermsofthebusinessopportunitiesitcreatesratherthanjust the technology challenges it solves. In the context of ICT transformation, Technology Innovation and Business Model Innovation will need to work hand in hand.

4. Conclusion

AcknowledgementData and forecasts quoted in the White Paper are all sourced from Informa Telecoms & Media unless otherwise stated.

The Connected Possibilitiesof Mobile Broadband

Copyright © Huawei Technologies Co., Ltd. 2012. All rights reserved.

Trademark Notice

General Disclaimer

, HUAWEI, and are trademarks or registered trademarks of Huawei Technologies Co., Ltd.Other trademarks, product, service and company names mentioned are the property of their respective owners.

The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

No part of this document may be reproduced or transmitted in any form or by any means without prior written consent of Huawei Technologies Co., Ltd.

HUAWEI WHITE PAPER

FEBRUARY 2012

Documents

The Connected Possibilities of Mobile Broadband...applications and augmented reality, cloud computing, Near-In this White Paper, Huawei describes the connected world; a technology