Day 1 C2C - Huawei: Acceleration Digitization to Build a Better Connected World

Accelerating Digitization to Build a

Better Connected World

July 19, 2016

HUAWEI TECHNOLOGIES CO., LTD. Page 2

Where there is vitality, there is the center of the world

140 Years Ago

Steel

Pittsburgh City

Automobile

Detroit City

70 Years Ago Digital information era

？


ICT is our new vitality, creating a decentralized world

Promotes global

sharing

Drives inter-disciplinary

innovation

Shatters the limits of

time and space

Distributed vitality creats a

decentralized world, bringing more

opportunities to the margins of

societyICT

4HUAWEI TECHNOLOGIES CO., LTD. Page 4

ICT investment

1% Increase in

GDP

Over

$11 Trillion

30%increasing

agricultural

crop yields

300 trillion liters of water

saving

Per year

25 billion

barrels of oil

saving per year

20%reduction of

global CO2e

emissions by

2030

ICT

ICT drives digital transformation

Source: WEF 2015, GCI 2016, GeSI

20%

=

in economic

benefits per year

by 2030

• China: Turnovers of e-commerce exceed CNY18 trillion,

bypassing the credit card stage and directly entering

the e-payment era, 12.7% of the total retail sales of

consumer goods

• Malaysia: MyTeksi enables mobile taxi booking and

goods delivery, mitigating traffic jams and enhancing

efficiency


Priorities for investing in technologies in 2016

Broadband Data center Cloud Big data IoT

Starters

Adopters

Frontrunners

Broadband stands out among the five key tech enablers

Source: Huawei CGI 2016


Synergy of Three Factors Drives ICT Development

Decrease

Price

Promote

Demand

• Voice, SNS, Web, Picture, Video

• City Safety, Education, Health, Media

• Electricity, Oil&Gas …

Supply• ICT investment/GDP

• Infrastructure

• Regulation and Policy

• ….

Experience • Broadband Download Speed

• Local Content Statistics

• Access Statistics of

International Export

• ….


IBP

Indonesia Broadband Plan

71% household at 20 Mbps

100% building at 1 Gbps

49% suburban household at 10 Mbps

by 2019

17 members, from various bodies to

promote the development of

broadband infrastructure with support

from the Indonesian government.

Signed by Indonesia‘s Ministers of

ICT, Public Works and Public

Housing, and Home Affairs to

accelerate optical fiber

infrastructure build-out

The Indonesia FTTH Association (IFA) supports national

broadband development to boost digital economy

IFA MoU

$21 billion


Malaysia: Using digital technologies to drive economic

transformation

-A key 2014 scheme for SMEs

granted up to 750 Ringgit for

cloud subscriptions to 1,800

SMEs.

-A strong cloud ecosystem has

been created for Malaysian ISVs

and data center providers.

The outlook for

data centers is

promising

Growth jumping by over

40% in the past three

years – over double

Asia Pacific’s

average of 16%.

Regulator allocated

the 2.6 GHz

frequency band to

four of the nation’s

mobile service

providers

Launched LTE

networks with peak

download speeds of

75 Mbps

Government has

rolled out multiple

initiatives to spur

cloud adoption


China: Going digital by increasing ICT demand

Going digital by increasing

ICT demand

Launched Broadband China strategy. By 2020:

• High-speed broadband to reach 98% of rural villages

• Urban broadband access to hit 50 Mbps while rural

access to reach 12 Mbps

• FTTH to deliver 1 Gbps speeds in its most modern cities

Launched the “Made in China 2025” strategy

• Incentive policies and investments focusing on cloud

services, Big Data analytics and IoT

• Encourage independent innovation of SMEs

Next step: a global manufacturing

center based on low carbon economy

IPTV

Media

Market

E-commerce


Singapore: Promoting applications to drive supply and

building a smart nation

Healthcare: 36 telehealth centers

SMEs: 5,000+ SMEs use iSPRINT

eGov: 400 government e-services (98%)

Education: 100% schools covered, 50

applications

Finance: Nationwide NFC payment,

30,000+ payment pointsSource: Huawei GCI2015

0.02%

0.01%

156

78.1

15.4

Global

544

Singapore

Cloud Service

Provider

Spending / GDP

IoT Spending per

Capita($)

Datacenter

Spending per

Capita($)


Government initiatives and industry competition drive the data centersector forward.

The UK: Using big data analytics and IoT to develop a smarter society

Driving change from

the top with IoT

£73 million (US$103 million) on Big Data research

over the next three years.

Tax exemption for 100 data centers on energy use

Government backed 40 UK tech companies to create a new open IoT

specification.

BT: intelligent monitoring of parking spaces and networked litter bins.

Start-ups：Isansys Lifecare -wireless sensor to monitor patients( £100,000

fund ); Unmade - feasibility research on on-demand clothing design.

Government and enterprises, especially telcos and IT service providers, have been active in rolling out new IoT services.


Government

Government Plays Important Role to Promote National Broadband

Funding Collaboration Standards and

Regulations

• Malaysia: Government

subsidy

• Cameroon: Commercial

loan

• European Union:

• China: Department of Housing

published mandatory

regulations on FTTH access

for new buildings

• US: "Dig Once", one trenching

within a certain time

• Kenya: shared

infrastructure, government

tax subsidies

• Sweden: allowing

electricity, gas and other

utility companies to build

fiber networks for rentHorizon 2020.


Rational Spectrum Planning is Important to MBB Development

For LTE spectrum

Carrier E(TOP1): 39.5MHz

Top Carrier in Singapore: 200MHz

For Capacity upgrade

Carrier E: spectrum fragmentation

LGU + : refarming, 4CC

For high & low spectrum combination

Carrier A: Lack of high-frequency

Softbank: full coverage

1. More Spectrum 2. Spectrum Concentration 3. Spectrum Efficiency

Rational Planning

Enhance

Connectivity

Improve

Experience

Industry level: Embrace opportunities and

transformation in a Better Connected World

Enable Vertical

Industries

Enable Access

Under All

Scenarios

Huawei accelerating digitization to build a Better Connected World


Innovation for A Better Tomorrow

10JICs & Labs

15,000Talents Development

$30BnR&D Investment Accum.

Making the world a better place through openness and collaboration

Openness,

Collaboration,

and Shared

Success

Industry Partners

Developers

Academia

Industry standards

organizations

Copyright©2015 Huawei Technologies Co., Ltd. All Rights Reserved.

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.

Thank youJoin us in

Building a Better Connected

World

Technology

Day 1 C2C - Huawei: Acceleration Digitization to Build a Better Connected World