Leading Profitable Mobile Broadband
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1 Leading Profitable Mobile Broadband - Huawei MBB Strategy 2011 Huawei Global Analyst Summit HUAWEI TECHNOLOGIES CO., LTD.
2 Agenda MBB market trends and challenges Leading profitable MBB eco-system
3 2010 mobile terminals sales have a significant impact on MBB Legend: 2010 shipments (million) 2009/2010 CAGR (%) 18mn* [+63%] 80mn [+23%] 302mn [+75%] 984mn [below +18.5%] 3.9mn* [N.A.] *) With cellular access 30% of smart devices sold in 2010 have an important impact on MBB! HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 3
4 MBB is becoming a major source of revenue in all regions USA (x3.2) West Europe (x4.4) $70B Sources: Huawei World Market MBB Facts & Statistics Q based on 2009/2010 press releases from Analysis Mason, Arthur D. Little, CTIA, CCS Insight, Chetan Sharma survey, Frost & Sullivan, Informa, OVUM, Pyramid Research; $22B*** ***) SMS revenue to be nearly half of all data revenue CALA (x4.5) $6.4B $1.4B $35B** **) Based on 5 Europe countries: France, Germany, Italy, Spain, UK $6.4B $8B** AME (x2.1) $3B APAC (x4.2) $50B $12B* *) Estimation based on key APAC countries situation e.g. in 2010 Japan experienced more revenue from MBB than voice It is expected that most of countries will follow Japan trend HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 4
5 Need to convert volume into value Note: Across >20 countries in Africa, APAC, Europe, LATAM, North America regions ~ 700TB $ $ $ $ $ $ ~ 300TB $ $ $ $ $ Source: Opera Mini mobile WEB browsing growth statistics [ ], Fact: Millions of data applications are flying across mobile networks Opportunity: The whole mobile industry and operators need to generate revenue from this mobile data traffic HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 5
6 Challenges in building a profitable MBB business Z End-users/Operators (Closed Relation) To understand consumers interests and needs To innovate for developing new business model ( value based pricing ) To tackle new mobile opportunities like mobile cloud computing Y Value/Bit (Revenue Creation) X To compete with OTT, content providers, handsets suppliers To avoid being bit pipe providers only USD/Bit (TCO Optimization) To invest more and more network capacity To deal with multiple networks To deliver the best QoE with minimum CAPEX/OPEX HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 6
7 Agenda MBB market trends and challenges Leading profitable MBB eco-system
8 Solution for building a profitable MBB business Non-SMS Data Revenue % 50% Focus: Users Experience & Network Efficiency 30% Focus: Users & Data Applications Ecosystem Development + AT&T VF Smart NTT 20% Focus: Network + Broad FT DT TEF Maxis 10% Bharti GP AM Single CU Globe Vivo Mobily ET MBB Subs. % 10% 20% 30% 50% HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 8
9 Single network To guarantee optimized TCO and smooth migration Networking Toolkit Box Multi-Antenna UMTS LTE GSM Multi-Carrier Multi-Access Standards Flat Architecture All-IP Transport SingleRAN SingleBackhaul SingleCore Self-Organizing Network Note: WiFi can be included into that multi-access scenario HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 9
10 Single network Huawei main choice of global operators Asia Pacific Europe MENA&CIS Latin America South Africa North America The 1 st vendor to provide convergent Single products Large scale rollout with 100+ commercial references HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 10
11 Broad network - Meet 500X traffic challenge 500X traffic growth till 2020 Traffic 500 X 2020 MBB user base will increase from 0.4 billion to 4 billion in the next 5 years Mobile Data Capacity prediction (CAGR=100%): 2011=1x 2012=2x 2020=500x Source: Huawei Analysis (2010) 500X Access 500X Backhaul 500X Core 10X Hetnet Solution 5X DC/MIMO/Re-farming 10X LTE/LTE-A 50X T3 Solution 10X IP MicroWave 50X Multiple Core CPU 10X Distributed Gateway The pipe shall not be the bottleneck of MBB growth HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 11
12 Broad network To leverage broad contents through Huawei intouch Partnership Program Registration & Account application App/Service Description Upload Download Dev Tool & Create Service Test & Approve intouch Online Gallery Operators Choose and Place Orders Launch with Huawei SDP Over 300 CP/SP partners worldwide North America Verisign SONY Warner Navteq TCS Europe Arenamobile Opera Jamba Index EMI Net-M Exit Games CIS, M Asia i-free Inform-mobile Asia Tencent Access Navitime JIG Netqin MobileExtreme Sina Acotel Waumovil Cyclelogic Yavox Takenet Latin America Starfish Leaf SGK Mobile Planet... Africa Rotana Info2cell Cadic Sodi Mobile-Zon Middle East HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 12
13 Broad network To build alliance for addressing data applications [ ] ebay deal to pre-load its mobile apps into phones sold by Telefonica UK. This is the 1 st mobile pre-load deal agreed by ebay anywhere in the world, and the 1 st time Telefonica has selected an app to make available to its customers [ ] Smart Philippines, the first global commercial WAC enabled app store. The platform provides opportunities for global developers to create, synchronize and sell applications using standard and open Application Programmable Interfaces (APIs). [ ] Telefonica and Microsoft setup a partnership to power applications development. In the short term, Telefonica BlueVia SDK will integrate its key APIs (e.g. SMS, MMS, advertising, users contextual information, etc.) with Microsoft's Visual Studio, Silverlight and.net Framework Proven capability to bring Apps/Content through 3rd party on local or international basis HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 13
14 Smart network - Beyond the dumb pipe to become profitable Profitable Manageable Visible Dumb pipe Triple-Win Policy & Charging API SGSN GGSN Network visibility PCC Big bandwidth DPI & SUR IP Backhaul, IPN Unified Multi-access Visible: Clear network visibility on users behavior & services behavior Manageable: Flexible policy & charging control, bandwidth use efficiency Profitable: Triple win business model with friendly API to 3 rd party providers HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 14
15 Smart network - To leverage mobile cloud computing capabilities 2 Dumb/Cloud device 1 Traditional handset Low data traffic & voice centric handsets Powerful GUI, tight interaction with networks & appl. 3 Smartphone Powerful GUI, embedded multimedia appl. Smart-phones 4 Laptop, notebook, tablet, PSP Heavy data centric terminals Operators MBB strategies need to be in line with mobile devices data and cloud capabilities HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 15
16 Huawei MBB solution to guarantee profitability Profitable MBB Business Single Unified platform across all technologies Broad Meeting capacity needs and developing a healthy data applications eco-system Smart E2E synergy to improve the network efficiency and the end-users experience Continuous customers-centric innovation HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 16
17 Huawei MBB investments 75+ Key roles held in standards organizations 10 Wireless R&D centers R&D engineers LTE/SAE 3GPP proposals 16 Joint mobile innovation centers HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 17
18 Thank you Copyright 2011 Huawei Technologies Co., Ltd. All Rights Reserved. The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions.
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