We Aspire To Be The Best Partner For Telcos -Carrier ... · Self-Configuration, Optimization, Maintenance ... CBS, Mobile Money l OSS & Professional Service: Fulfillment, ... Huawei

HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

TEN YEARS OF CONNECTING EUROPE

Huawei Industry Analyst Summit – Europe 2011

Edward ZhouVP of Marketing, HUAWEI Europe

We Aspire To Be The Best Partner For Telcos- Carrier Network Business

http://www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 2

Content

We See

We Provide

We Deliver

We Improve

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3

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We See the Challenge: Struggling in Difficult Era

Telecom Growth Lags Economy 09/10 Telecom Revenue Trends 09/10

The OTT Challenge Increasing OPEX

l Applications (eg Facebook /Twitter) eroding SMS revenues

-4

-2

0

2

4

D E E S F R I T U K

GDP Telecom

DE ES FR IT UK l 2010 No growth in Western Europe

Mobile FixedVodafone UK -6.8% 0%Telefonica Spain -6.3% -4.6%Telecom Italia Italy -10.5% -4.2%

-5%

0%

5%

10%

15%

1Q10 2Q10 3Q10 4Q10 1Q11

Decline In SMS Traffic 2

l The imperative to reduce Opex.

55

60

65

70

1 2 3 4 52007 2008 2009 2010 2011

Perc

ent

Rev

enue

Sources: 1 Company annual reports, 2 KPN , 3 Vodafone.

3


We See the Opportunity: Seizing the Broadband

Western European IP Traffic Growth Western Europe Mobile Data Growth

Continued Growth Of Video Data ARPU have exceeded 50% of aggregation ARPU

Western European IP Traffic Forecast 2010 - 2015 : CAGR 32%1

0

20

40

60

80

2008 2009 2010

PB /M

ont

h

Mobile Data Volumes Doubling Year on Year1

0

50

100

150

一三五七九十一三五七九十一三五七

CAGR 37%

Mill

ions

Req

uest

s

2009 2010 2011

BBC iPlayer 6.7% UK Internet Traffic

UK Video Traffic Growing21964 the founder of Panasonic said:“In the future, each family will have at least 10 motors” - now we have.

2010 Masayoshi Son of Softbank said :

“In the future, each family will have at least 10 mobile internet devices.” SoftBank annual report

52.4%

Aggregation ARPU

Voice ARPU

Data ARPU

reversal

Data ARPU overtook voice ARPU

Sources: 1 Gartner, 2 BBCC Stats


We See the Change: Leading the Transformation

Operational TransformationReduce cost by collaborative operation, outsourcing etc. Disposal of non core assets and uncontrolled shares.

Service TransformationExplore new services, new business model, and develop new areas•Telefonica’s 7 verticals Strategy: Cloud, Security, App...•DT Strategy: Mobile Internet, M2M, Cloud Computing, ICT.

Network TransformationMobile broadband: Best network for smartALL IP: Optimization/transformation for E2E network architectureBroadband centric IT system transformation and network integration.


We Aspire To Be the Best Partner for Telcos

l We See the Challenge: Struggling in Difficult Era

l We See the Opportunity: Seizing the Broadband

l We See the Change:Leading the Transformation

lWe provide a comprehensive E2E solution portfolio

lWe deliver good services

lWe improve our customer engagement


Content

We See

We Provide a Comprehensive E2E Solution Portfolio

We Deliver

We Improve

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2

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We Are Going to Reorganize Our Solution Portfolio According to the Dynamics

Network Product Line

Wireless Product Line

Core Network Product Line

Software & Application Product line

PS CS, etc.

Wireless Network Solution

Software & Core network Solution

Professional Service Solution

1. We separate the packet switching from Core Network Product Line

2. We merge PS products into Wireless Product Line as new Wireless Network Solution, in order to provide E2E MBB solution to improve the end user experience

3. We merge CS and etc. into Software & Application Product Line as new Software & Core Network Solution, in order to support the business transformation and improve the operational efficiency

4. We set up the independent Professional Service Solution for OPEX saving

Network Solution

5. We setup the Network Solution focus on the FBB solution, also to support the All IP network transformation


Wireless Network Solution: Best E2E QoE and TCO saving

Giga SiteMulti mode; Multi band; Multi sector

SingleRAN SingleEPC

E2E End User Experience Assurance

E2E CAPEX Saving

E2E OSS for Improved Efficiency and OPEX Saving

Small CellMicro; Pico; Femto

Single SONSelf-Configuration, Optimization, Maintenance

ConvergenceAll pack switching technologies

Advanced Platform

Synergy with RadioTo improve the user experiences

12/15 Top networks in West Europe choose Huawei SingleRAN for refarming and modernization.

From G/U to LTE ,T-Mobile Leads MBB by using SingleEPC in 8European Countries.


Network Solution: U2Net (Ubiquitous & Ultra Broadband Network)

Ubiquitous 100M Access

SingleFAN SingleMetro SingleBackbone

NLV (Node Level Vectoring): >100M on DSL

10GPON and beyond: Smooth evolution without changing ODN

Single Platform for Fiber and Copper

Enhanced BNG l CDN Synergyl DPI l IPSec

FMC Metro l LTE ready IP RANl Hybrid/IP MW

OTN: Coherent 100G

200G Line Card

IP + Optical Synergy

Multi-chassis Router l B2Bl ISHE

E2E Management System, Simply OA&M

E2E IPv6 Ready

Broke through 23 Major Operators in Western Europe with NO.1 market share

All the solutions entered Major Operators in Western Europe , Access & WDM domain rank NO.1, Carrier IP & IPMW with rapid growth

Ultra Broadband Pipe


Software & Core Network Solution: Business Transformation and Revenue Increase

Consumer Servicesl Personal: RCSe, RBTl Home: IPTV, Hybrid TV, DTV, MTVl Platform: SDP, NGIN, VGS

Carrier Enterprise Servicesl Enterprise Communication: Mobile office,

eConference, IPCC BPOl Enterprise Application Integration: eCity, eTraffic, IVS

Service Transformation for Revenue Increase

Best infrastructure for Cost Saving

SingleCorel Transit (LDI/CMN/IP-IP GW )l IMS, VoLTEl CS & Voice

Improved Operational Efficiency for Business Transformation

SingleCDNl Application agnostic infrastructure l Compatibility with major media

delivery solutions

SingleSDBl UPCC, UIM, SDM

SingleCloudl NG Datacenter Solutionl New Applications, e.g.

Virtual Desktop

BSS & OSSl Customer Relationship: CRM, KIOSK, BI, CSP, Customer Carel Revenue Management: Billing, OCS, CBS, Mobile Moneyl OSS & Professional Service: Fulfillment, Assurance, Inventory, SIl BSS & Professional Service: NGBSS MS/SI, Mediation, PRM, Provisioning, ESB


Professional Service Solution: Deliver E.O.T excellent service

To Reduce TTM, OPEX & CAPEX To Reduce OPEX & Improve End User Experience

To Assist Your Transformation Learning Services

Network Integration Services

Mobile Network Integration Solutions

Infrastructure Rollout (Design, Deployment)

Network Assurance Solutions

Experience Enhancement Solutions

Managed Services Solutions

Assurance & Managed Services

Operation (Readiness, Assurance)

Fixed Network Integration Solutions

Data CenterSolutions

SiteSolutions

Knowledge Transformation Huawei Certification Competence Consulting

Learning Services


Content

We See

We Provide

We Deliver Good Services

We Improve

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3

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We have Established Localized Rollout & Maintenance Network

l 3 Technical Assistance Centers with 7x24 Guarantee service (UK, Romania and Spain) & 3 Network Operation Centers (Romania, Spain and UK)

l 3 Competence and Resource Centers (Germany, Italy and Romania)

l 3 Logistic Centers (Netherlands-Amsterdam, Hungary-Pecs, Hungary-Komarom) & 2 Supply Centers (Hungary-Pecs, Hungary-Komarom)

l 9 Training Centers with multi-Language (France, UK, Germany, Italy, Spain, Belgium, Poland, Romania and Czech Republic)

l 41 country spare part centers and 95 field service locations

l Over 430 certified service partners, 6200 + qualified engineers from partners

Network Operation CenterRomania

Technical Support CenterUK

Training CenterItaly

Supply CenterHungary

Training center

Technical assistant center &Network Operation Centers

Competence & Resource center

Logistic center & supply center


We Are Changing Our Maintenance Model

Customer-Centric Maintenance Organization

Customer Account based

Germany maintenance

Core NW team

Wireless team

Transmission Team

•Multi-Product•More dedication

Country and Product line Based

0

20

40

60

Y2010 Y2011

Amount of Incident (times)

95%

46%

98.70%

68%

0%20%

40%

60%80%

100%

120%

FRT OFR

Y2010 Y2011SLA Fulfillment

FRT: Fix Response Time

OFR: Overdue Problem Report Fix Responsiveness

40%


Content

We See

We Provide

We Deliver

We Improve Our Customer Engagement

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We Focus on Customers’ Satisfaction Through Streamlined Process

Customers’ strategy and challenges

To generate and nurture leads base on customers’ strategy and challenges, by early engagement with customers.

In the tender process, the solution and delivery team will quality the opportunity and get customers’ buy-in, then provide the best solution according to the requirements, till the contract signed.

Manage Lead Manage Opportunity Manage Contract Execution

After the contract signed, the team will check and confirm contract to ensure complete and accurate customers engagement for fulfillment, till the customers’ satisfaction achieved.

Lead To Cash Process Flow1

Customers’ Satisfaction

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We Are Building the CC3 Team to Structure Our Customer Engagement

Wireless account

Solution A Delivery A

Wireline account

Solution B

Delivery B

Service account

Software account

Solution D

Delivery D

Customer

Delivery CSolution C

1. AR, supervising the whole process and customer relationship, interface with CXO and procurement department

2. SR , responsible for solution development, mainly interface with CTO /CMO/CSO and technical department

3. FR , responsible for fulfillment, mainly interface with CTO/operation department

CC3: Customer Centric Triangle

AR(Account Responsible)

FR(Fulfillment Responsible)

SR(Solution Responsible)

Manage Lead Manage Opportunity Manage Contract Execution


We Are Building Strategy and Consulting Competence to Face Challenges Together with Our Customer

l From Selling to Customers’ Business Success

l Early Engagement with Higher Level, and Broader Level

l Setting Up a UK based Business Consulting Competency

Centre

l With the Commercial and Technical Breadth to Deliver

Business and Strategic Consulting Value to Customers

l Through best practice insight and knowledge share (Joint

SCSC, CTO Dialogue and Quarterly CXO summits)

StrategyAlignment

Biz Planning & Consulting

Network Planning& Consulting

Solution & Product &Technology


We Aspire To Be the Best Partner for Telcos

Leadership from Customer-Centric Innovation

Comprehensive E2E Portfolio Good Services Right Customer Engagement

l Wireless networkl Networkl Carrier Software & Core

Networkl Professional Service

l Well established platforml Quick roll outl High quality services

l LTC Processl CC3l Consultancy

Thank youwww.huawei.com

TEN YEARS OF CONNECTING EUROPE

Copyright©2011 Huawei Technologies Co., Ltd. All Rights Reserved.The information in this document may contain predictive statements including, without limitation, statements regarding the future financialand operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results anddevelopments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided forreference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

http://www.huawei.com

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We Aspire To Be The Best Partner For Telcos -Carrier ... · Self-Configuration, Optimization, Maintenance ... CBS, Mobile Money l OSS & Professional Service: Fulfillment, ... Huawei