HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential
www.huawei.com
Yu Cheng DongPresident European Region, Huawei Technologies
Unified Mobile AccessThe Future of Mobile Broadband Internet
HUAWEI TECHNOLOGIES CO., LTD. Page 2Huawei Confidential
Global Mobile Industry Growth & Demand –Unprecedented Scale, Extraordinary Revenue
Wireline Capex Wireless Capex % Wireless Capex
55%54%53%52%50%48%
32%
37%
0
50
100
150
200
250
300
2000 2001 2002 2003 2004 2005 2006 20070.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0% 63%60%58%59%59%52%
32%
36%
0
200
400
600
800
1000
1200
2000 2001 2002 2003 2004 2005 2006 20070.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Wireline Revenue Wireless Revenue % Wireless Revenue
As a percentage of global CAPEX, the proportion of wireless is growingAs a percentage of global revenue, the proportion of wireless service is also increasing
HUAWEI TECHNOLOGIES CO., LTD. Page 3Huawei Confidential
GSM a great success WCDMA proving itself WiMAX pushed in LTE coming soonTechnology renewal faster than ever, frequency severely shortened from 10~15 to 3~5 yearsIt’s harder and harder to prove itself for each technology
Can the Mobile Success History Be Repeated?
CAPEX
05
1015202530354045
2000 2001 2002 2003 2004 2005 2006 2007
GSM CDMA WCDMA WiMAX
Subscribers
0
500
1000
1500
2000
2500
3000
3500
2000 2001 2002 2003 2004 2005 2006 2007
GSM CDMA WCDMA WiMAX
HUAWEI TECHNOLOGIES CO., LTD. Page 4Huawei Confidential
Operators Challenges
Regulatory
Pressures on Revenues Pressures on TCO
Competitive Energy
Service Bandwidthand QoS
Service Battle
TV? VoIP?
Free HotSpot?
Music? Social NW?
An ever increasing focus on cost-reduction, differentiation and customer retention.
Source: Gas and Electricity Market Statistics, EC, 2007
Development of the average price of one kWh for industrial electricity consumption, EU-15 (1997=100) - based on prices in EUR
HUAWEI TECHNOLOGIES CO., LTD. Page 5Huawei Confidential
2017?
GSM phase-out
2009?
900 upgrade launch
2G will be phased-out one day
UMTS/LTE900 Deployment
Traffic over 2G is reducingYear
GSM access
Obsolescence GSM900/1800
Mobile Broadbandnational wide coverage
as legacy 2G
On-field 2G BTSequipments becomes
obsolete
HSPA, HSPA+ and LTE deployment
Only U/L in 900Mhz
2010?
LTE launch
Investment Cycle Extends Beyond TechnologyMobile Access Evolution considerations
HUAWEI TECHNOLOGIES CO., LTD. Page 6Huawei Confidential
LimitedService
Capability
Limited GSMEvolution
High Power Consumption
Aging and poor performance legacy equipment induce complexity in the network and impact user experience
Legacy equipment consumes high power adding extra burden on energy resources
Additional footprint required for capacity expansions / introduction of new technology Footprint& site construction costs - expensive
No evolution capabilities to new features or technologiesEquipment support discontinued
Large Footprint
Main Challenges of Legacy 2G/3G Networks
SeparateNetworks
High CAPEX and OPEXSeparate OMC
HUAWEI TECHNOLOGIES CO., LTD. Page 7Huawei Confidential
2G BSS
3G RAN
Unified 2G/3G CN
2G OMC2G OMC 3G OMC3G OMC
Single RAN
Unified 2G/3G CN
Single OMCSingle OMC
Pre 2007 – Core Network Convergence Post 2008 – Total Network Convergence
Unified Mobile Access
Co-GSM/UMTS operators
Leading UMTS operators
Co-CDMA/GSM/UMTS operators
Unified UMTS and LTE network
Unified GSM UMTS and LTE network
Unified CDMA, GSM, UMTS, LTE networkCDMA + GSM (as Reliance), UMTS + CDMA (as PCCW), CDMA + LTE (as Verizon)
GSM/UMTS co-site, co-cabinet, co-module
Support smooth hardware evolution to LTE
Convergent NMS
Convergent RAN
HUAWEI TECHNOLOGIES CO., LTD. Page 8Huawei Confidential
BSC
RNC
BTS / Node B
Unified Mobile Access: Convergent Platform
BSC/RNC
GSM
GSM
UMTS
GSM+UMTS
BSC/RNC
GSM
GSM+UMTS
BSC/RNC
GSM
GSM
GSM
GSM
Software Upgrade
Software Upgrade
UMTS
UMTS
1 Unified BTS replaces 3 traditional BTS
UMTS/LTE
UMTS/LTE
Adapt to handset technology mix Reduce investment risk
HUAWEI TECHNOLOGIES CO., LTD. Page 9Huawei Confidential
Unified Mobile Access: Flexible IP Transport
BSC
TransmissionNetwork
Data network based Iub IP transmission
solution
TDM based Iub IP transmission solution
MSTP based Iub IP transmission
solution
TDM/xDSL based Iub IP transmission
solution
TDM/Data based Iub IP transmission solution
Hybrid IP SolutionMSTP
TDM
Data
xDSL
Packet network
E1/Optical transmission network
IP everywhere reduces Transmission costs and enables Mobile Broadband
Flexible solution needed for Smooth Evolution
HUAWEI TECHNOLOGIES CO., LTD. Page 10Huawei Confidential
Power savings
Strong environment compatibility Cold air
Hot air
Green Cabinets
80%+ power savings in equipment room over typical S4/4/4
High efficiency PA:Intelligent PA management
High efficiency PA ASIC
Self-adaptability design:Intelligent direct cooling
Ventilate pellicle
Extended 10 degrees to reduce equipment room cooling facilities time
Unified Mobile Access: Green design
1600W950W
500W
07 Industry 07 Huawei 08 Huawei
40 %70 %
Typical GSM S4/4/4 configuration
HUAWEI TECHNOLOGIES CO., LTD. Page 11Huawei Confidential
Software defined
GSM
LTE
UMTSBTS
=
+=
=
Phase I Phase II Phase IIISoft migration
Hardware Software Mode
WiMAX=UMTS
LTE
GSM
UMTS
GSM
GSM
GSM
GSM
GSM
GSM
UMTS
WiMAX
LTE
Unified Mobile Access: Ensuring the Future Today
Our Industry and Regulators Must Work Together to Establish New, More Relaxed Regulations that Ensure
Evolution and Savings for Operators Worldwide
HUAWEI TECHNOLOGIES CO., LTD. Page 12Huawei Confidential
LTEWiMAX
UMTSHSPA+
GSMModernize
Be Ready
Evolve
Unified Mobile Access…for your customers needs
Thank youwww.huawei.com
Copyright©2008 Huawei Technologies Co., Ltd. All Rights Reserved. The information contained in this document is for reference purpose only, and is subject to
change or withdrawal according to specific customer requirements and conditions.