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From 2G to 5G Opportunities Challenges Dr. Mohamed Madkour VP of Global Wireless Marketing Head of Demand Generation

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Telecom Industry Value is Shifting

70 countries one million rides a day

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New Gen Stimulates Data Service

New Entry Revolutionizes Lifestyle

New Services Upgrade Experience

New Network Requires Densification and all Cloudification

New Tech Creates Possibilities

Five New Trends to Transformation

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Experience is at the heart of these moves

…

HD Voice: MOS 4.0 VR Games: 175Mbps HD Video: 8Mbps Hologram: 4.6Gbps

… Big 4G Super 4.5G Ultra 5G

2001 2010 2016 2020

Ubiquitous Coverage

Broadband Access

All-Connected World

Gbps Experience

Basic 3G

Interactive Visual Audio

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

20

19

2020

Milli

on c

onne

ctio

ns

2G

44% 45%

9%

37% 24%

56% 51% 66% 69%

30% 24%

27%

45%

40%

33% 42% 32% 29% 26% 31%

64%

18% 36%

10% 7% 3% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Percentage of Connections (2017Q1)

Source: GSMA

Mobile Users

User Development for Different Generations

3G

4G

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Global Cellular Traffic Keeps Growing Fast

7x increase in last 5 years

47% CAGR

50% generated in Asia

Africa will witness the fastest traffic growth

Source: OVUM

0

50000

100000

150000

200000

250000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Global Cellular Traffic (PB/Year)

47% CAGR

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Cellular Voice & Data Revenue & ARPU

0

200

400

600

800

1000

1200

1400

billio

n $

Total

Voice

Data

Global Cellular Revenues USD Bn

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Voice ARPU

Source: Informa, GSMA

Voice & Data ARPU USD (2017Q1)

2,000,000+

500 2008

100,000 2009

2014 1,000,000

Today

5,000,000+

Explosive growth of mobile apps for people and things

A wild world of mobile applications

All services will be delivered through mobile applications

Key drivers

Mobile Networks

Sensors Man-machine Interfaces

Cloud Computing Big Data & AI

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Tech Evolution Brings Unprecedented Possibilities

2G 3G 4G eMBB

mMTC

URLLC

URLLC: Ultra Reliable Low Latency eMBB: Enhanced Mobile Broadband mMTC: Massive Machine Type Communication

Video Verticals Household

Break into Vide

o

Communication Entertainment Vertical

$700+ billion

Source: Ovum, Gartner, IHS, Huawei MI

23% Time

60% Traffic

Head into

Households

Need access 1.3 billion

300 million Need speed

Payback Period

WTTx fixed broadband 2 years 8 years

Go vertical

Wide-area IoT

Public safety Connected vehicles

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Unprecedented Opportunities Ahead

Smart Transportation

$25Bn

Smart Building $55Bn

Smart Energy $151Bn

Smart Water $15Bn

Smart Homes $71Bn

AR/VR $182Bn

Remote Control $91Bn

Internet $652 Bn

Video $1066 Bn

Vocie ~ $100 Bn

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Challenges Services

Requirements

Network Requirements

More Spectrum

More Sites

Investment Efficiency

Business Model

Diversification ROADS Experience

Complexity All Cloud

Quick Release Neutrality

Denser and more capable Site ecosys

Resources utilization Unlock more capabilities

Ecosystem Scale

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Triple-E Enabling Digital Transformation

5G Oriented Evolution

B2C Video B2B LTE Enabling

Mobile Cloud ERA

Maximize Network Value

Maximize Operation Efficiency

B2H WBB

Business Expansion

Maximize Efficiency

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Government role is instrumental for better ICT

Operators

People Network on own expenditure

New lifestyle & business

Government

License fee & Tax

Tax

Policy to increase

sites number

Release more

spectrum

Neutral for higher efficiency

2G 3G

4G 5G

Education and digital

awareness

Mobilize more

services

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