Safer, Broadband, Digital
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1 Safer, Broadband, Digital >> Happier Latin America Enabled by ICT Qiu Heng President of Wireless Marketing Operation 1
2 Happiness is a chocolate bar free from illness rain after drought family together 1 How can we make LATAM people happier >> 2
3 Relation Between Happiness & Connectivity Reference indictors on Happiness and Connectivity GCI: Global Connectivity Index (ICT) HHI: Human Happiness Index every 10 point of GCI growth leads to avg. 5.0% increase in HHI Pakistan Bangladesh Nigeria Kenya Ghana Morocco Vietnam India Venezuela Indonesia Egypt Philippines Peru Colombia Thailand Turkey Mexico Brazil South Africa Romania Saudi Arabia Russia Poland Chile Malaysia China Italy Qatar Czech Republic United Arab Emirates Spain Canada Belgium New Zealand France Australia Germany Norway Japan Netherlands South Korea Denmark United Kingdom Switzerland Sweden Singapore United States 1 0 Source: GCI: Huawei GCI Whitepaper 2016 HHI: World Happiness Report 2016 UN Sustainable Development Solutions Network Earth Institute (University of Columbia) 3 2
4 Happiness is About Satisfying Human Needs Happier LATAM How ICT can help Vision actualization Selffreedom Self-esteem respect Industry upgrade More leisure time More wealth Digital LATAM Love/Belonging friendship, family, love Safety free from disaster & criminal, health Physiological needs air, water, food Higher personal experience Enrich home entertainment Enable SHO business Surveillance Environment monitoring e-health Broadband LATAM Safer LATAM 4 Maslow s hierarchy of needs 3
5 2 Towards a Happier Latin America Safer Latin America Broadband Latin America Digital Latin America 5
6 Safer LATAM Free From Disaster and Criminal Public Safety is a Basic National Responsibility Flooding 'worst in 50 years', as 150,000 flee in Paraguay, Argentina, Brazil and Uruguay MEXICAN TERROR ALERT (MAY 25, 2016): CIA Plotting Mass Attack in Mexico 6 5
7 Safer LATAM Free From Disaster and Criminal Surveillance and Trunking Reduce Risks Surveillance Trunking: Push 2 Talk + Push 2 Video 7 6
8 Safer Latin America Solution elte & LiTRA Dedicated & Operator Network Solution Dedicate Network Solution elte Operator Network Solution LiTRA Kenya 46% crime reduction 19% case reduction expected UK 8 7
9 Broadband LATAM Better Personal Experience Mobile HD-Video Enriches Communication & Entertainment Experience Faster Broadband = Better Experience Most LATAM countries mobile speed < 10Mbps 1Gbps Uruguay Peru 175Mbps VR 360º view Mbps 9.11 Mbps 8Mbps 20Mbps 4K VR ½ Screen Chile 8.77 Mbps Mexico 7.93 Mbps 4Mbps 2Mbps 1080p 720p 2K Guatemala 7.66 Mbps Brazil 7.43 Mbps Source: OpenSignal Q
10 Broadband LATAM Enrich Home Entertainment Let All Houses Connected Fixed broadband penetration in LATAM is ~9.2%, less than world average 11.2% MBB will greatly shorten the service online time Uruguay 26.27% Mexico 11.65% Fixed Broadband 3~5 years construction Peru 6.42% Bolivia 1.64% Mobile 3~6 BB months 10 Source: ITU database 9
11 Broadband LATAM Enable SME Business Broadband as Basis of Business Small & Medium-sized Enterprise (SME) is 99% of all enterprises LATAM & the Caribbean (in QTY.) E-Commerce 2015 global E-Commerce US$ 24 trillion 30% of global transactions 99.8% in Estimated E-Commerce growth rate of Latin America 20% from 2015~2018 Source: IDB (Inter-American Development Bank) Source: mlab, GCI report 11 10
12 Broadband Latin America Solution Gbps 4K Video Everywhere 4K video 20Mbps required Peak rate 150Mbps 1Gbps Cell capacity 40Mbps 200Mbps Cell edge 5Mbps 30Mbps Improve 4K capability 2x 4K channel per cell edge 10x 4K channel per cell edge 12 11
13 Broadband LATAM Solution Wireless to The X WTTx for Home Entertainment & SME Work Efficiency Yearly family income* ($) 12,000 8,000 LATAM 74mn household WTTx market space (representing 333M population) 2 Years Return Of Investment 4,000 1, % 20% 40% 60% population ratio 13 Source: Huawei MI based on Latin America Income Distribution, The World Bank 12
14 Digital LATAM Intelligent Society Converge Cyber & Physical World Physical Space Smart manufacturing Intelligent way of working Implement AI analysis 3D print preview VR AR simulate Cloud store Cyber Space Data collection Personalized ondemand production Smart automotive Mobile home and office VR facilitates SOHO work style Smart consumption Sharing economy, environment friendly 14 Source: Japan Society5.0, Keidanren Report 13
15 Digital LATAM Solution NB-IoT to 5G Start with NB-IoT, Fully Achieve in 5G Era NB-IoT (4.5G) AR/VR Driverless car AI Cloud computing Hologram Smart Parking Asset Tracking Smart Metering Robot 15 14
16 Digital LATAM Drives Economy Growth IoT & Big Data IoT Big data by 2025 Digital LATAM direct market by 2030 Digital LATAM big data impact to GDP 12.6% 55% Storage APPs Data analysis 15% $23.8 bn Sensor Device Integration 30% Network construction & operation Manufacturing Infrastructure Retail Health Logistics 15% 14% 11% 8% 33% $778 bn Energy saving, production increase, maintenance saving, process optimization 16 Source: mlab 15
17 Safer, Broadband, Digital LATAM Boost MBB Traffic Latin America Typical Data Traffic Model (Year 2020) 20 x data capacity = 2 x spectrum bandwidth 5 x spectrum efficiency 2 x site number (High Traffic Area) 13x 12x 16x 21x 20x 27x 22x 11x 17 30x 18x 12x 18x 17x 20x Source: mlab 25x 21x 10x 16
18 3 How government can help to achieve vision >> Release more spectrum Policy to increase site number 18
19 Release More Spectrum 300MHz in 2020 per mobile operator needed Candidate spectrum 1.4GHz 2.6GHz 3.3GHz 3.5/3.7GHz 120MHz in 2015 LATAM mobile operator average level 2.3GHz Source: mlab 19 18
20 LATEM Site Density is Far Behind Other Regions Korea/Japan EU AP Mexico Site Density (site / mn people) 1,200 1, Site Distance (meters) 130~ ~ ~ ~1,000 Connection/ Urban Site 20~28 10~25 18~37 33~70 Source: mlab 20 19
21 Open Public Facility for ICT Infrastructure Government can define site supply as mandatory utility for selected premises Metro Lamp Pole Airport Bus Station Open Premises Site Supply Power Water Gas All Plan at The Same Time Public Utility Source: China Shandong case 21 20
22 More Flexible Regulation, Faster Construction Sites in Scenic Spots Street Sites Regulation Optimized Allow site deployment along with the permission requesting to shorten the time span Reduce strictly EHS requirement to a reasonable and health level Source: Korea case EHS: Environment Health Safety 22 21
23 Vision Resources Requirement WRC07/12/15 Spectrum release & upgrade plan Safer LATAM Broadband LATAM Digital LATAM Site Facilities Open public facilities development Flexible regulations for site acquisition 23
24 24 Thank you
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