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1 Improving digital infrastructure for a better connected 1

2 Economies across the globe are going digital fast The Global GDP forecast 2017 Economies are setting policies to encourage ICT investment Global GDP Growth Rate Digital Singapore Smart Nation Smart Digital Malaysia 2.4 Industry 4.0 Advanced Manufacturing 2.0 Digital Canada Source: IMF, percentage change (market exchange rates) Nigeria National Broadband Strategy Internet Plus 140 countries have developed national broadband plan strategy or policy - ITU Connected Argentina 2

3 Global Connectivity Index (GCI) evaluates economic digitization with 4 economic pillars, 5 tech enablers and 40 indicators GCI Research Model SUPPLY DEMAND EXPERIENCE POTENTIAL IOT BIG DATA CLOUD DATA CENTERS 5 Tech Enablers BROADBAND Fundamental : e.g ICT laws, application, e-government, R&D 40 indicators + 50 countries 3

4 Key finding 1: Strong digital infrastructure improves the quality of economic growth 2.1% 20% growth in ICT investment will increase a country s GDP by 1% 1pt Increase in GCI Increase in competitiveness 2.2% 2.3% Increase in productivity Increase in Innovation 4

5 Key finding 2: Digital transformation is accelerating 5% Global connectivity To 45.5 Smartphone Penetration GCI % GCI % Growth 18% GCI score 4G Coverage 13% 21% 61% From 43.4 Analytics Data Creation % 5

6 Key finding 3: Developing economies have huge opportunities APEC developing economies 2% 1% 10% 8% 66% APEC Developed economies ICT investment per GDP IT workforce 4G Coverage FTTH Coverage MBB penetration 5% 3% 65% 29% 113% 6

7 Key findings 4: Different focuses at different development stages 85K Starters Average US$3,000 GDP Focus on increasing ICT supply Adopters Average US$15,000 GDP Focus on increasing ICT demand Frontrunners Average US$50,000 GDP Focus on improving the experience of ICT users 55K Strongest Multiplier effect* Australia United States Singapore United Arab Emirates Canada 25K No.34 New Zealand Japan Spain South Korea NOMINAL GDP PER CAPITA 7 GCI 2016 SCORE Indonesia Philippines Vietnam Malaysia China

8 百万 A closer look at - Big progress in broadband Broadband Internet Subscribers Broadband performance Source: Thai Telecom Industry Database Mobile Broadband Subscriptions Smartphone penetration Average Apps downloads per Capita [e] 8

9 Supply and Potential can be enhanced S-D-E-P Dimensions Performance Potential Experience IT workforce per Capita R&D Expenditure per GDP Average ICT patents per million Capita Demand Supply Average ICT investment per GDP 4G coverage Average Big data investment per total IT spending 9

10 Invest in data centers and cloud computing Tech Enablers Performance Broadband Average 40 Smart Grid for IoT Data center By the year 2025 more than 85% of enterprise operations will take place in the cloud. Big data Cloud 10

11 Priorities for growing digital economy Policy, regulation, and incentives Government leadership Encourage investment Supportive policies Manpower and skills Attract digital talent Cultivate skilled ICT workforce Digital ecosystem Cross-domain cooperation Partner with the private sector 11

12 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.

13 13 Country ranking and performance GROW GAP IMPROVE ENABLER Frontrunners SCORE United States Singapore Sweden Switzerland United Kingdom Denmark South Korea Netherlands Japan Norway Australia Germany France New Zealand Canada Belgium Adopters SCORE Spain Portugal UAE Czech Republic Qatar Italy China Chile Malaysia Russia Adopters SCORE Poland Saudi Arabia Romania Brazil South Africa Mexico Colombia Turkey Argentina Peru Starters SCORE Philippines Egypt Venezuela Indonesia Morocco Vietnam India Algeria Kenya Ghana Nigeria Bangladesh Pakistan

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