HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Serving Customer Experience with Mobile BroadbandCEO Summit – 16-17 May 2011

Henrik HansenVP Marketing, Middle East Region

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

The business challenge for the Middle East Telco’s

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HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

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HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

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This is my Smart World ….. …..

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Everything goes Internet – Internet goes everywhere

And … We Can Expect the Unexpected Devices!

Not only use of video, music and

news over the mobile internet

Numerous other ways to use MBB than

we

can imagine

Many more types of devices will

develop and

new business opportunities will

emerge

MBB will be in more mobile equipment

such as

cameras and Car-Infotainment systems

Dozen of competitors are in the

process of

launching new devices in vertical

markets

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201x

2010 10x 20x 100x

Devices Apps & Services

Network Traffic

HSPA

QoS

HSPA+

LTE

IP Backhaul

FMC100G

FTTX

MDO

Mobile broadband growth creates challenges

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Ms Mary Manyfriends

Hrs per day

Volume

Video and gaming (2Mbps)

5 50GB

Browsing, music, radio(100kbps)

7 10GB

Voice, text, mail etc(<20kbps)

4 0.5GB

TOTAL (GB/mth)

>60 GB

Mr Busyman Peter Gamer

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What road do we take to deliver the experience ….

… and still being profitable?

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1. Provide coverage and capacity as needed, where needed, for enhanced customer experience, while keeping ROI manageable

Nation wide

Th

rou

gh

pu

t

High speedContinuous coverageMobility

Super high speed Super high coverage Hotspot

Extra high speedFamily/Office coverageFixed usage/mobile experience Rich content & media service

High Speed InternetAccess Anywhere Mobile or Nomadic

Metro ZoneUrban Zone

Suburban Area@ Home@ Office

Countryside

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2. Spectrum management becomes crucial for delivering customer experience, 900 and 2100 are continued main spectrum for 2G and 3G

• 2500/2600 MHz LTE for MBB metro/home zone capacity and urban network offload

• 2100 MHz 3G, HSPA, voice/video and data services in urban areas (mobility)

• 1800 MHz GSM capacity, refarms to LTE when capacity needs are required

• 900MHz GSM for 2G devices and 3G for voice and data capacity • 700/800MHz LTE for national coverage

L-2600 (20 MHz)

U-900 (5 MHz)G-900 (>5 MHz)

Nation wide

Th

rou

gh

pu

t

L-800 (10 MHz)

U-2100 (5-15 MHz)G-1800 (~20 MHz) => LTE

Off loadHigh capacity

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Region Operator Time

North America Clearwire 2012+

Australia Vividwireless 2012+

North Europe Datame 2012+

Malaysia P1/YTL 2012+

Wimax Operators’ proposition

Most WiMAX operators plan upgrade network to LTE TDD after 2012. Test & Trials are held in 2011

All main players are involved to develop the converged LTE TDD / FDD eco-system

Huawei integrated solution in SingleRAN accommodates for smooth transition

LTE is the most spectrum efficient standard with higher data security anda simpler network architecture than previous standards ….

Long Term Evolution

LTE2.6GHz NEW! LTE

WiMAX 2.3/2.5GHz LTE

UMTS 2.1GHz UMTS+

LTE

GSM 1800MHz LTE

GSM 900MHz

GSM+UMTS

LTE 800MHz NEW! LTE

Era of transformation

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3. “Smart Device, Simple World” is about selecting the devices that suite customers and aligning network capacities to customers’ experience

MBB / Handset

Industry / Enterprise Device

Connected Home Solution

AppsTMS

Online update

Smart DeviceSimple World

Simple to operate

Simple to connect

Simple to use

Smart Device

Hosting CenterDSM / Hispace

Providing simple connectivity to the majority of devices

available on the network will

tremendously enhance revenue potential

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Entry-middle level Smartphone is the key driver for both revenue and profit

Non-Smartphone

High-Premium Smartphone

Entry-middle level Smartphone

Large Screen

Usage SAC & SRC Profit

Highest LowestSAC – Subscriber Acquisition CostSRC – Subscriber Retention Cost

4. Smartphone strategy with the right MBB data packaging is key to manage return on investment

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5. Subscriptions and service packaging also key to monetize MBB

High QualitySpecific Delivery

Network Intelligence and Resource Mgmt

Service Specific Subscription & Packaging

Terminals

Service, Content etc

P2P

Bandwidthas Paid for

Featuresas Paid for

At Times Paid for

Priorities as paid

for

= adaptation to situation and user

We must build a system that can deliver new services, timely and with expected quality. Provide customer value for money and make the customer willing to pay

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For MBB, the aim must be to provide the best customer experience …. told by the customers ….. Award Winning Network for Data!

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Meeting the future with confidence

4 Billion new Smart phones

10 Billion newSmart devices

Millions of newapplications

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Huawei is the main supplier for MBB in Middle East In regional 3G market, Huawei has more than 60% 3G market share. In new license market, Huawei is the best choice. Since 2007, almost all new license

operators More than 30% of WiMax operators chose Huawei

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Pioneering SingleRAN LTE Across the Globe

1st commercial LTE, 2009

SingleRAN to expand LTE & modernizing GU network 2011

The largest modernization of SingleRAN GUL in Europe

1st LTE 800Mhz

SingleRAN GL commercial network in Germany

1st SingleRAN GL 900MHz

1st LTE RAN Sharing

World’s 1st LTE 1800Mhz & TDD commercial network in Poland

As of Q1 2011: 100+ SingleRAN commercial networksAll support evolution to LTE, 30+ have LTE service dates scheduled

Break-through SingleRAN GUL in Australia

SingleRAN LTE Middle East

1st SingleRAN WiMAX/LTE dual mode network

2009 2010H1 2010H2 2011H1

SingleRAN LTE network deployment & GSM modernization in Germany

Thank youwww.huawei.com

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