From Mobile Internet to the Connected World
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1 From Mobile Internet to the Connected World Kenneth Fredriksen CEO Huawei Sweden
2 Huawei at a Glance 180,000 Employees 80, No. 70 No. 83 R&D employee s Countries R&D Institutes & Centers Interbrand's Top 100 Best Global Brands Fortune Global 500
3 Company Growth Unit: US$ billion Exchange rate (on Dec. 31, 2017) Early stage Developing domestic market Global expansion ICT convergence Multiple business lines 92,5 billion USD Carrier: US$45.7 billion Consumer: US$36.4 billion Enterprise: US$8.4 billion 华为整体 Huawei Group 华为泛网络 Huawei Carrier and 华为终端 Huawei Consumer Huawei Enterprise
4 Leading ICT Products, Solutions, and Services Hundreds of millions of consumers Global carriers Global enterprises, industries Global cloud users Consumer Products & Services A brand loved by global consumers Carrier Products & Services Best strategic partner for carriers Enterprise Products & Services Enabler and preferred partner for digital transformation Cloud Products & Services An open, reliable cloud platform Top 2 in smartphone market share 70%+ of revenues from global top 50 carriers Serving global industries/ large enterprises Fast growth, reliable and secure services for customers 15.8% 29% 197 companies in Fortune Global companies in Fortune Global cloud services in 14 categories 50+ solutions Global August 2018 China June 2018
5 Sustained Strategic Investment is Tomorrow's Competitive Edge ~15% Approximately 15% of sales revenue is invested in R&D to enhance competitiveness and to drive progress in industry and technology. Over the past ten years ( ), total R&D investment exceeded CNY billion or US$60.6 billion Future: Annual investment of US$10 20 billion; over 80,000 R&D employees US$ billion Sustained investment in research to explore future technologies for an intelligent world
6 Huawei Sweden Overview in R&D offices 4 sales & service offices 3 Business Areas Carrier Consumer Enterprise +600 employees and 80% are recruited locally +300 employees engaged in R&D Cooperation with all operators 4G/2G network for Telenor & Tele 2 3G network for Telenor & 3 Fixed/IP networks with Telia, ComHem, IPonly
7 The road to 0
8 5G will be Key Enabler of the 4 th Industrial Revolution Industrial Revolution 1 st 2 nd 3 rd 4 th 18 th Century 19 th Century 20 th Century 21 th Century Tipping Point Steam Engine Electricity Computer Internet of Everything Transformed Industries ALL Industries
9 5G Will Enhance the Mobile Internet and Empower IoT Enhance the Mobile Internet Empower IoT Consumers Verticals Carriers Ubiquitous connections Consistent experience Accessible, shared 5G infrastructure Real-time, on-demand network services Easy deployment and O&M Business agility to enable new business models
10 Five mega trends of mobile services
11 Key 5G Capabilities embb Enhanced Mobile Broadband Gbps 3D Video, UHD Screen Smart Home/Building Work and play in the cloud Augmented reality Smart City Future IMT Industry automation Mission critical applications Self driving car mmtc Massive Machine Type Communications urllc Ultra-reliable and Low-latency Communications
12 xmbps 2/3/4G Voice & Data Centric People to People Less Varity of Services One Size Fits All Up to 10Gbps Throughput Up to 1M Connections/km 2 1ms Latency 5G Application Centric Everything Connected Wide Varity of Services Tailored services for Specific Demands 80% Traffic fulfills 20% Use Cases 80/20 Pareto Rule Long Tail Use Cases with extreme requirements emerging Long Tail Long Tail Use Cases will be Key Driving Force of 5G Long Tail Theory
13 5G Latency Throughput Connections Mobility Network Architecture 1 ms E2E Latency 10Gbps Per Connection 1,000K Connections Per Km2 500km/h High-speed Railway Slicing Ability Required GAP 30~50x 16x 100x 1.5x NFV/SDN LTE 30~50ms 600Mbps 10K 350Km/h Inflexible
14 The road to Technology Requirements
15 5G Needs Cross Industry E2E Integration Test 4G IoT Test Core 5G E2E Test Applications S1 Interface RAN E2E Integration Uu Interface UE Multiple Industries
16 UP Application Field Developer 8K/Holographic Video Network Slice UP CP RAT Configure Session/Mobile/Policy Consumer Autonomous Driving Network Slice UP CP CP Unified Control Plane CDN/Cach GW UP e Multi-Application User Plane Partner DC Operator IOT Network Slice UP DC DC One Infrastructure, Multiple Network Slices Industry Defined Network Slicing Service oriented cloud-formation Internet architectural operation
17 The road to Industry Update Standards, Spectrum and Roadmaps
18 5G Standard Progress Update Rel-14 Rel-15 Rel-16 NSA NR SA NR Full IMT-2020 NR Phase1 Phase2 Global Launch Phase 1 Phase 2 NR Framework Waveform & Channel Coding Frame Structure, Numerology Native MIMO Flexible Duplex Others: urllc Architecture NR/LTE Co-existing UL&DL Decoupling CU-DU Split NSA / SA NR Improvement New Multiple Access embb Sub6G Enhancement Self-Backhaul Vertical Digitalization urllc Enhancement mmtc D2D V2X Unlicensed
19 5G Spectrum Progress: C-band, 700MHz and mmwave H1 H2 H1 H2 C-Band (3.5G&3.7G) UK ES FR IT DE NO CZ RO HU SK LT LV FI AT HU SI SE DK GR PL 700MHz DE FR AT UK IT FI IS DK SE NO HU SI RO PL mmwave HU SE PL AT
20 5G Terminal Roadmap Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Balong 5G01 Balong 5000 Kirin 980 Chipset SDX50 XMM8060 SDM855 Exynos 9820 Smartphone Mate 30/30 Pro New iphone Galaxy S CPE 5G CPE1.0 (C-Band/1.8/2.1/2.6) (NSA) 5G CPE2.0 (C-Band/700/800/900M/1.8/2.1/2.6) (NSA & SA)
21 Global Rhythm of 5G Commercialization embb/fwa 3.5G/28G Technology Validation Network Deployment Commercial Use FWA/eMBB 28G/39GHz Technology Validation Deplyment/ Pre-commercial Commercial Use embb 4.5G/28G Technology Validation Solution Test/ IoDT Sites Deployment Commercial Use embb 700M/3.5G Technology Validation Solution Test/ IoDT Pre Commercial Use Commercial Use embb 3.5G Technology Validation Scale Test Pre Commercial Use Scale Commercial Use embb 3.5G Technology Validation Pre Commercial Use Scale Commercial Use
22 Global 5G Status Snapshot July G Launches and Planned Launches 6 operators in 6 countries claim they have launched 5G networks Operator Elisa Zain Ooredoo Ooredoo STC Etisalat Country Estonia and Finland Kuwait Kuwait Qatar Saudi Arabia United Arab Emirates 66 operators in 37 countries have intentions of making 5G available from 2018 onwards Source: GSA Report, July 2018
23 The road to Turning User Cases into Business Cases
24 The Intelligent Revolution Will Profoundly Impact Every Person, Home and Organization Persons Supporting special needs to live a normal life: Guide helmets for the visually impaired Helping people acquire special capabilities: Multi-language communication, AI cameras 90% of smart device users will use intelligent personal assistants Homes At-home services: Healthcare robots, education robots Home everywhere: Holographic communication, smart home 12% of homes will use intelligent service robots Organizations Personalization at scale: Customized Harley- Davidson manufacturing Smart government: Safe City, smart government services 86% of enterprises will use AI Data source: Huawei GlV 2025
25 ICT Enables Transformation into Digital Economy National Digital Economy Strategies GDP: 1% (for every 20% increase in ICT Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia investment) Productivity: 20% (by 2025) Industry 4.0 Advanced Manufacturing 2.0 Internet Plus Connected devices: 100 billion (2025) ICT innovation drives inclusive growth and Nigeria National Broadband Strategy Colombia Live Digital Connected Argentina sustainable development. 170 countries have launched national ICT development plans Source: ITU Sources: Boston Consulting Group, Huawei GCI
26 China: Aim to be the leadership in 5G Era ~5 Cities Field testing 10+ cities trial 100+ site per city Pre-commercial Large scale commercial Lab testing Field testing 10+ cities trial 100+ site per city Pre-commercial Commercial in big city Lab testing Key technologies research Step2: Solution testing 10+ cities trial 100+ site per city Phase1: Technology testing Step3:System testing Pre-commercial Commercial in big city Phase2: Product testing Large scale networking
27 Fixed Wireless Access for Home Broadband Target & Existing Gap 5G Home Access X Gbps Throughput Target: By % Households > 100Mbps Households > 30Mbps(%) Target: By M Households > 100Mbps Households > 100Mbps(million) Fast TTM & ROI 37% 25.40% 24% 4.60% 12.20% 45% Major use case for 5G early deployment Target Source: Broadband Europe Strategy 2015/ FCC 2016, DESI 2017
28
29 Germany: Set focus on opening public infrastructure as part of 5G strategy German government s 5G Strategy for Germany Facilitate fiber connection to each base station Promote the use of passive carrier infrastructure for the construction of 5G cells: traffic lights and street lights, can be cost-efficient for the expansion of pico cells Public buildings, street furniture, guard rails, trench covers Support network rollout - Maintain health protection: optimization of licensing and decision-making processes at the municipal and national levels examine whether there is a need to adjust applicable distance controls for antenna locations
30 5G Industry Use Cases under development Drone Connected Car Smart Factory Ultra Density Network SIG set up in 2017 Addressable Market (bn$) Mining Agriculture Media and Ent. Transport Enable more application: 250Mbps UL, 99.99% reliability, City safe Connected Car 2017H2 Near Future Launch Assisted Driving 4G : Assisted 5G : Autonomous Building Strategy Standardization User Case Deployment 2014~ ~ ~ 4.38 KM 2 300K People/Day 10Gbps Pavilions 100Mbps Everywhere *UDN: ultra density network 2017 Shanghai MWC Use Cases Guide Helmet Home Service Robot Connected Drones Smart Manufacture 5G Autonomous Driving
31 Key Success Factors of 5G Flourishing Eco-system New Services & New Market to explore new business opportunities Technology innovation enables service and business model innovations Mature Industry Chain Global unified standard to be the foundation of scale effect to facilitate the industry prosperity and development
32 Exploring 5G New Business Opportunities Drone Cloud VR/AR Mobile 4K Video Digital Factory V2X Industry Partners
33 Building an Open, Collaborative and Win-Win Ecosystem Industry Alliance Business Alliance Open Source Communities Developer + 5G Vertical Industry Accelerator / Automotive Accelerator in Munich Public Cloud Safe City Industry 4.0 Device/Network/Cloud Huawei Developer Enablement Plan $1B in next 5 years Growing Business Community Incubating the industry Success Collaboration New Player
34 Shared Success with Global Partners via Openness and Innovation Universities About 100 universities and thousands of researchers work with the Huawei Innovation Research Program (HIRP). HIRP invests around CNY 300 million every year, and has supported thousands of postgraduate students. OpenLabs Huawei has established 13 OpenLabs worldwide. Suzhou, Munich, Mexico City, Singapore, and Dubai labs support our customers in specific vertical sectors. OpenLabs are centers for joint innovation, development, and testing, and serve as experience centers for customers and partners. Joint Innovation Centers 36 joint innovation centers with global carriers, enterprises, and partners Patents Huawei holds 74,307 patents; 64,091 applications in China and 48,758 in other countries; signed dozens of crosslicensing agreements with major vendors & IPR owners since Pays US$300 million in patent royalties per year. Standards Member of 360+ standards bodies; 300+ key positions.
35 HUAWEI Vision and Mission Bring digital to every person, home and organization for a fully connected, intelligent world. 35
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