Ultra-broadband Achieving Connect 2020 Targets Through Innovations in ICT. Huawei Technologies Co. LTD

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1 Ultra-broadband Achieving Connect 2020 Targets Through Innovations in ICT Huawei Technologies Co. LTD

2 Better and full connectivity is trend From Unconnected to Connected From Under-Connected to Better Connected From Human Connected to All Connected 390 Million Households to be connected by 2020 Redefine broadband: 25Mbps 34% households' connection speed below 10Mbps; 1.5 Billion People to be connected by 2020 Giga Home subscribers must reach up to 58.5% by Günther H. Oettinger Safe City, Shenzhen 205 Cameras/ More Connected More Traffic IoT (Massive Connected )

3 Broadband As Infrastructure is New Driver for Economy Like water, roads, rail, and electricity before it, broadband is of fundamental importance to the social and economic development of all nations. 148 Connect ITU, Broadband Commission 55% 90% 30% 5% GNI/M Household access to the Internet Rural population covered by broadband Gas emission decreased Broadband cost upper threshold Nations release broadband strategies and plans Innovation efficiency 15x +10% FBB penetration rate Gas emission -5% GDP +1.3% Production efficiency +5-10% Employment +2-3% Source: Impact of broadband on the economy, ITU

4 FMC 3.0, Innovations for the Diversified Broadband Network FBB + MBB + Connectivity + Content + Cloud FMC 3.0 Cloud as Default Serve enterprises with agility On-demand Network is the key More innovative digital services FBB + MBB + Connectivity + Content FMC 2.0 Experience Focus Video as new growth engine Experience is the key Broader range of video services FBB + MBB + Connectivity FMC 1.0 Connectivity First Coverage with cost efficiency Moving towards Gigaband Connecting everything (FBB + MBB + IoT)

5 Network Strategy Data Center centric Network + Cloud Telco OS STB Access Cloud CO Metro Cloud Edge Backbone APP/Service ONT CO DC Edge DC Core DC Ultra-Fast Giga Fiber / Copper / Coax / Wi-Fi E2E IP+Optical 400G/2T Simplified No Congestion, Lower Concentration Ratio Legacy Consolidation, Flattened Hierarchy Agile SDN / NFV Enabled Telco OS (IES + BES + Big Data)

6 Fuel Growth of Connectivity in Smarter Ways Sustainable PON Evolution Accelerate Industrialization with Multi-mode PON Chipset. Unify 100G PON Standard Realize Potential of Legacy Media Giga Copper: G.fast /NG.fast Giga Coax: Docsis 3.1 Improve FTTH ROI Effective Roll-out and High Efficient O&M: SmartCAPEX Wireless and wire line synergy Power utility synergy Expand to IoT Edge Computing IoT for Smart Industry Smart Home

7 Optical Fiber Ultra Capacity Access Fiber for Gigabits to Home/SMEs Central Office End Users OLT MA5800 GPON XG(S)-PON TWDM-PON 2.5G 10G 4*10G GPON ONU XG-PON ONU XGS-PON ONU TWDM-PON ONU Home 100M Home 1G~10G Business 1G~10G Business 1G~10G 10/40G-PON All in one TWDM-PON ONU Mobile 1G~10G High integrated broadband solution based on fiber Future proof solution for 10~20 years Flexible 10/40G-PON XG-PON XGS-PON TWDM-PON

8 Copper Ultra-fast Copper Raise the value of legacy COPPER G.Fast & SuperVector FTTC Solution FTTS Solution FTTD Solution Industry Unique 48/96 lines G.fast SuperVector Improve FTTB/C Speed 2-3 Times 1st Vectoring Deployment 96-port G.fast 48-port G.fast 384-port SuperVector 192-port SuperVector

9 COAX Coax upgraded for Gigabit by D-CCAP based on DOCSIS 3.1 Coax could be an alter way to Gigabit broadband EMS CMC controller 10G GPON OLT WDM 10G DOCSIS 3.1 CMC AMP Cable Modem Giga Fiber PON DOCSIS 3.1 Cable Modem DOCSIS 3.1/D3.0 to reach 5Gbps OSS ac 4*4 and n 4*4 Wi-Fi CATV TX Giga USB for 3G/LGT Backup Challenge: High Bandwidth Benefits: First launched giga service D-CCAP save fiber 70% Challenge: No CO space Benefits: 80% HUB space saved 30% TCO reduction Challenge: separately network Benefits: One platform for fiber&coax IP TV migration Challenge: Competition from Telco Benefits: 1G Symmetric Service 4K TV Ready

10 WTTx as Another Option of Connectivity Radio Site 4G/4.5G WTTx: Wireless To The Site Fast Coverage Low Bandwidth Evolve to FTTx in long term Philippine : WTTx + FTTx Mixed Sri Lanka Dialog: WTTx boosting Broadband

11 Microwave + Mini-OLT: Fast coverage for saving digging work Solution: Microwave + Mini-OLT CO GE/10GE Microwave GE/10GE Mini-OLT PON Metro Ethernet Mini-OLT 1Gbps by Traditional IP MW PON 10Gbps by SDB MW Fast Delivery Sufficient Bandwidth TCO Saving 85% Civil works decrease from 1-6 months to 1-2 weeks 0 site construction, sharing outdoor cabinet with Mini-OLT 1Gbps by Traditional IP MW 10Gbps by SDB MW 5 years TCO saving up to 85%, ROI from 25 months to 8 months (Greece OTE)

12 All Cloud Network Transformation Phases VNF Virtualization VNF Hardware and software decoupled Common hardware and enhanced utilization Decoupled Edge DC App logic Cloudification Database App logic Load Balance Regional DC App Logic Center DC Orchestration Cloudification with orchestrator 3-tier cloudified architecture, data separated from the logic layer, Stateless service processing Multi-vendor Automation by orchestrator Cloud Native Micro Service On-Demand Slicing Microservice-oriented Light-weight virtualization (e.g. container) E2E automation Programmable & slicing

13 All-Cloud Cloud Network: On demand network for SMEs Video IoT Industry Business Driven AWS 100% Resource utilization improved Network Capabilities Openness Platform Network Capabilities Orchestrator Agile Controller Conn. Mgmt. Sub. Mgmt. Security 3 rd APP Auto Planning & Provisioning Months Days Fast time to market PaaS OLT IaaS Experience Driven MSE CR 10 x Operational efficiency improved CSG E2E Slicing Network Tech. Driven to Business Driven Open Enriched business

14 Continuous Technology Innovations All-IP Network E2E 400G (IP & OTN) 1T Line Card (Router) OXC SingleFAN SingleMetro G.Fast DOCSIS 3.1 Gigaband All-Cloud Network 14

15 Huawei: Global R&D and NIC Contribute Cutting-Edge Technologies Russia Santa Clara Dallas Toronto New Jersey Ireland France Germany Italy Beijing Xi an Shanghai Hangzhou Chengdu Japan Shenzhen R&D Center NIC ,000+ Major different R&D centers for specific key technologies Network Innovation Center (NIC) with our Telco partners Talented R&D colleagues serve 45 of the world s top 50 telecom operators.

16 Shaping Industry Direction EC-IoT Joined 170+ standard & open source organizations All Cloud Video Holding 180+ key positions in IETF,ITU-T, ETSI Broadband 14,795 patents granted 4K Play Optical Open Network Operating System IP Co-establish IETF ISG-mWT to drive the millimeter industry Co-establish Edge Computing Consortium to drive the EC-IoT industry Released the first industrial Gigaband network development whitepaper.. Establish U-vMOS standard for measuring video experience. Microwave Promote 400GE Super Port standardization and commercialization.

17 Thank you Copyright 2016 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.

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