Tap into New Growth with Intelligent

Connectivity

Digital Transformation and 5G

Adam Lane | Senior Director, Public Affairs

1

Bring digital to every person, home and organization for

a fully connected, intelligent world.

Vision and Mission

Huawei at a Glance

180,000Employees

1480,000

No. 68 in170+

No. 72 in the

R&D institutes /

labs/centersR&D employees

Interbrand's Top 100

Best Global BrandsCountries

Fortune Global 500

Focusing on Smart Devices, Connectivity, Computing, and Cloud; Providing

Products and Solutions for Three Customer Groups

Global carriersHundreds of millions of consumersGlobal enterprises,

governments, and industries

Consumer

Products & ServicesIconic global technology brand

Carrier

Products & ServicesBest strategic partner for carriers

Enterprise

Products & ServicesEnabler and preferred partner

for digital transformation

Cloud

Products & ServicesCloud partner with reliable,

trusted, evolvable services

Storage and servers

Data center

Private cloud

Enterprise EI

AI platforms

Big data analytics

Cloud services

Video surveillance

Enterprise

communications

Network energy

Info

rma

tio

n D

istr

ibu

tion

&

Pre

se

nta

tio

n

Info

rma

tion P

roce

ssin

g &

Sto

rag

e

Information Learning and Inference

Smart devices Connection Computing and cloud

Information Transmission

+Intelligent

Smartphone

Wearables

Smart home devices

Vehicle-mounted terminals

Life services for all scenarios

Wireless networks

Fixed networks

Core networks

Operation support systems

Intelligent O&M

Enterprise networks

IoT networks

21 Years of Huawei in Kenya

Chin

SGR

Communications System

Intelligent Transportation

System

7 Smart Traffic Lights for

KURA

Huawei ranke

East Africa Training center.

23 ICT Academies

nationwide

Chines

RuralStar

Delivering Mobile Broadband

for 2/3rd less for Safaricom

PDTP

Award for Supporting

Innovation

Improving Safety with

Safaricom for National Police

Service

NOFBI connected 312

buildings, 11,549 employees

400 employees; 2,000+ jobs

created per year. More than

100 internships per year

Drivers Behind Continuous Growth

Strategic direction30 years of sustained focus on

Pipe Strategy: ICT infrastructure

Core

Values

Sustained investment

in R&D to drive breakthroughs

Value-driven system

that shares value to maximize

value creation

Huawei Core Values

Stay customer-centricCreating value for customers is the only way for Huawei

to guarantee its value. Our success depends on our

customers' success.

Inspire dedicationA reasonable, effective value assessment and sharing

system inspires employees to create greater value for

the company.

PersevereCustomer expectations are rising, and our industry is

evolving. Whether or not we can continue to survive

depends on our ability to persevere with long-term

focus.

Grow by reflectionReflection leads to continuous improvement, prepares

us for external challenges, and prevents inaction.

Corporate Governance Structure: An Employee Owned Company

Board of DirectorsExecutive Committee

Supervisory Board

Human Resources

CommitteeFinance Committee

Strategy & Development

CommitteeAudit Committee

Shareholders' Meeting

Human Resources FinanceCorporate

Development Strategy Marketing Quality, BP & IT

Group Functions

Regional Organization (Regions and Representative Offices)

Carrier

BG

Enterprise

BG

Consumer

BG

CEO/Rotating CEOs

2012 Laboratories

Supply Chain, Purchase, Manufacturing

Huawei Internal Service

Huawei University

Independent Auditor

Cyber Security &User Privacy Protection

Huawei Leadership Mgmt Dept PR&GR Legal Affairs Ethics & Compliance

Products &

Solutions

Internal Audit

Cloud

BU

4th Industrial Revolution: Technological Advances Driving Global Development

1st Industrial Revolution 2nd Industrial Revolution 3rd Industrial Revolution 4th Industrial Revolution

Steam engine Electricity Information technology Intelligent technology

Sustainability New growth of digital economy

Upgrade to smart city

Digital transformation of industries

Better consumer experience

Scenario-specific solutions

Global macro trends

We Are Entering an Intelligent World

Artificial

intelligenceBroadband Cloud computingData center IoTBig data

Digital twin

Digital survivalTemperature, space, and touch

Sense of smell, hearing, and vision

Ubiquitous connection, wide connections,

multiple connections, and deep connections

All Things Sensing All Things Connected All Things IntelligentSensing the physical world,

mapping it to digital signalsData goes online to power machine intelligence Big data and AI power new applications

ICT infrastructure will be the foundation of the intelligent world

Society: ICT Drives Sustainable Development

ICT is a leading indicator of sustainability

(90% correlation)

Good Health and

well-being

Industry, Innovation

and InfrastructureSustainable city

and communityClimate action

Quality education Gender Equality

0

1

2

3

4

5

6

7

8

9

10

0

50

100

150

200

ICT

Sco

reSD

G S

core

Front runnersAdoptersStarters

ICT helps countries achieve the UN

Sustainable Development Goals (SDGs)

Countries: 170+ Countries Have Digital Strategies. Digital Economy Is the New

Growth Model

Russia: Digital

Economy Strategy

China: Digital China,

Broadband China,

Internet+

Japan: White Paper on

Manufacturing

Industries

South Korea:

Manufacturing Industry

Innovation 3.0

India: "Made in India"

and "Digital India" for

the future

Singapore: Smart Nation 2025

Thailand 4.0

Digital Malaysia

Australia: Digital

Economy Strategy

UK: Digital economy

strategy 2015-2018

Canada: Digital

Canada 150

US: Strategy for

American Leadership in

Advanced

Manufacturing,

Industrial Internet

Germany: Industry 4.0,

Digital Strategy 2025

Brazil: Efficient Brazil

Strategy

Saudi Arabia: "Vision

2030" supports digital

economy growth

Over 170 countries worldwide have published a national digital strategy (ITU)

• 20% ↑ in ICT investment = 1% ↑ in GDP

• ICT investment returns 6.7x non-ICT

• Digital economy growing 2.5x faster than

world economy

Huawei’s Global Connectivity Index (GCI) maps a country’s

transformation into a digital economy

Traditional Economy Digital Economy

The GCI provides a comprehensive and objective assessment of a

country’s connectivity from both a national and business perspective,

and assesses the current status, future trends and challenges

associated with digital transformation. It quantifies the value generated

by connectivity for a country’s transformation into a digital economy

serving as a reference for regional and national policy makers.

94 Countries 97% GDP 87% PopulationStrong ICT infrastructure improves the quality of economic

growth.

A one-point increase in GCI

does the following for your economy

1 ptIncrease in GCI

2.1%Competitiveness

Innovation

2.2%

Productivity

2.3%

12

DEMAND EXPERIENCE POTENTIALSUPPLY

IOT IoT Investment IoT Installed Base IoT Experience IoT Potential

BIG DATA Big Data Investment Analytics Data Creation Big Data Experience Big Data Potential

CLOUD Cloud Investment Cloud Migration Cloud Experience Cloud Potential

DATA CENTERS Data Centre Investment Data Centre Equipment Data Centre Experience Data Centre Potential

BROADBAND Fiber Optic/4G Coverage Broadband Subscriptions BB Affordability / BB

Download SpeedBroadband Potential

5 T

ec

hn

olo

gy E

na

ble

rs

Fundamental:e.g. ICT laws, Application, e-Government, R&D etc.

GCI Methodology Matrix: 4 Economic Pillars by 5 Technology

Enablers GCI Scoring Model

A country’s evaluation is based on 40 indicators based on the 4 economic pillars & 5 technology enablers 13

Digital Economy Heat map

Average GDP Per Capita: US$3,700

GCI score: 20-34

20 35 56 85

ADOPTERS FRONTRUNNERSSTARTERS

These countries are in the early stage of ICT infrastructure

build-out. Their focus is on increasing ICT supply to give more

people access to the Digital Economy.

Average GDP Per Capita: US$16,300

GCI score: 35-55

Nations in this cluster experience the biggest GDP

growth from ICT Infrastructure. Their focus is on

increasing ICT demand to facilitate industry digitization

and high-quality economic growth.

Average GDP Per Capita: US$54,100

GCI score: 56-85

These nations are mainly developed economies. They

continually boost user experience, and use Big Data and

IoT to develop a smarter and more efficient society.

14

81 Pakistan 25

82 Bangladesh 24

83 Mozambique 24

84 Zambia 24

85 Ethiopia 23

86 Angola 23

87 Malawi 23

88 Swaziland 22

89 Sierra Leone 22

90 Lesotho 22

91 Madagascar 21

92 Liberia 21

93 Comoros 20

94 Burundi 20

60 Jordan 34

61 Egypt 34

62 Lebanon 34

63 Vietnam 34

64 India 33

65 Venezuela 33

66 Indonesia 33

67 Morocco 33

68 Algeria 32

69 Ecuador 31

70 Ghana 29

71 Kenya 29

72 Nigeria 29

73 Botswana 29

74 Namibia 29

75 Zimbabwe 28

76 Rwanda 27

77 Paraguay 26

78 Tanzania 25

79 Uganda 25

41 Saudi Arabia 44

42 Belarus 44

43 Bulgaria 44

44 Brazil 43

45 Kazakhstan 42

46 Mexico 42

47 Oman 42

48 South Africa 42

49 Ukraine 41

50 Uruguay 41

51 Thailand 40

52 Mauritius 40

53 Turkey 39

54 Serbia 39

55 Columbia 39

56 Argentina 38

37 Peru 37

58 Seychelles 36

59 Philippines 35

21 Spain 55

22 Estonia 54

23 UAE 53

24 Lithuania 52

25 Portugal 52

26 Solvenia 51

27 China 51

28 Italy 50

29 Czech Republic 50

30 Hungary 49

31 Slovakia 49

32 Malaysia 48

33 Chile 48

34 Croatia 46

35 Greece 46

36 Russia 46

37 Kuwait 45

38 Poland 45

39 Romania 45

40 Bahrain 45

1 United States 78

2 Singapore 75

3 Sweden 73

4 Switzerland 71

5 United Kingdom 70

6 Finland 68

7 Denmark 68

8 Netherlands 67

9 Norway 65

10 Japan 65

11 South Korea 64

12 Australia 64

13 Germany 63

14 Luxemborg 63

15 Ireland 62

16 New Zealand 62

17 Canada 62

18 Belgium 61

19 France 61

20 Austria 60

Country 2018 Rankings

ADOPTERS SCOREFRONTRUNNERS SCORE STARTERS SCOREADOPTERS SCORE

80 Bolivia 25

STARTERS SCORE

15

The “Matthew Effect” – the digital divide becomes a digital chasm

GCI score

+2.8

+5.2

Starters

Adopters

Frontrunners

+6.0

26.629.4

40.0

45.2

60.166.1

20 30 40 50 60 70 80

2018 S-curve

2015 S-curve

Average scores 2015

Score change

An expansion of the S-curve (GCI score vs. GDP) shows widening inequality between Starters, Adopters & Frontrunners

Average scores 2018

STARTERS ADOPTERS FRONTRUNNERS

Economy

16

Inequality among the three clusters remains a prominent issue for key indicators

ICT investment

per GDP

IT workforce

per capita

IoT installed

base per capita

App downloads

per capita

Mobile broadband

subscriptions

per capita

2% 0.8%2

21 80%

5%2.8%

9

38116%

Starters and Adopters

in SSA

Frontrunners

Economy

17

Intelligent Connectivity enables industry transformation which

will shape a US$23 trillion digital economy by 2025

2.9

1.50.9

1.7

5.0

6.4

0.5

3.0

1.1

Government

ServicesRetail Transport Finance ManufactureICT Utilities Others

Professional

services

Industry

Intelligent Connectivity

18

20 20 21 2122 22 22 22

23 24 2425 25

2728 29 29 29 29 29

36

40

42

15

20

25

30

35

40

45

0

20

40

60

80

100

120

140

160

180

GCI 2018 Scoring Comparison: SSA Countries

Supply Demand Experience Potential GCI Score

12345678912 11 101516 14 13171819202223 21GCI Rank

Countries within SSA, in particular, are concentrated at the start of

the digital journey - only SA, Mauritius & Seychelles have reached Adopter development stage

All of the countries in SSA have to make concerted efforts to improve the supply dimension, expanding rollout of basic connectivity

infrastructure to more parts of the country, or at least the economic corridors/zones of activities. At the same time, focus on the

Demand pillar has to be increased to ensure end users access and are able to use the newly deployed services while will ultimately

improve other, more advanced pillars like Experience & Potential. 19

GCI 2018 key findings for Sub Saharan African

region

True impact of ICT on economic growth is still to be realized and balance struck

between social spending now and ICT Investment with benefits realizable in the

mid to long term future

Economic

Impact

Transformation of different traditional and nontraditional economic sectors is slow

despite stagnating or slowing sectorial growth, yet ICT is key to delivering value in

new ways in existing industries

Industry

Impact

To tap into the inherent value of technology and ICT particularly for its people and

businesses, countries must establish and complete the foundations including

ubiquitous Broadband, Government Data Centers and cloud technologies.Technology

Impact

20

Industries: Industries Are Entering a Cycle of Digitization, Presenting New

Opportunities

• Industries are entering the cycle of digitization. All enterprises face the same problem: How can they adapt and

flourish as their industry goes digital?

As technology continues to advance, technological changes may become more frequent and industry lifecycles shorter

1780 1845 1896 1945 1985 2040?2007-11

1. Steam engines/

Textiles

2. Internal combustion

engines/Railways

3. Electrification/

Automobiles

4. Oil/Airplanes

5. Digitization/ICT

Watt's engine,

spinning jenny

Next

30 years

Digital opportunities 2025

Source: Huawei GIV 2025

1.7 trillion

5.0 trillion

ICT

1.5 trillion

Retail

Finance

0.5 trillion

Utilities

2.9trillionSocial&Personal Services

6.4 trillion

Manufacturing

1.1trillion

Others

3.0trillion

ProfessionalServices

0.9 trillion

Transportation

Cities: Digital Platform Integrates Full Stack of Technologies into an Intelligent

OS That Supports Successful Digital Transformation

Smart transportPublic safety Smart city Smart campus

Ecosyste

m

part

ners

Customer

value

AI

Smart city applicationsPublic safety

applications

Smart transport

applications

Smart campus

applications

Op

era

tio

ns &

se

cu

rity

Cloud (private/public/hybrid)

Data integration Service synergy Agile innovation

FTTx/WTTx Wi-Fi Campus networks IoTEnterprise wireless

networkConnect

Sense Industrial sensors Industrial devices Intelligent cameras …

Digital Platform

Big dataIoTVideo Converged

communicationsGIS …

Integrated intelligence

Data flows free

Shared resources

Efficiency up

Integrated new ICT

Ongoing optimization

Seamless evolution

New ICT capabilities

Industry partners

Industry expertise

Incubating new apps

Industry innovation

Businesses: ICT Supports Digitization of Businesses, AI Drives Upgrade to

Intelligence

x100

x1000

x10000

x10

Business Value

Adoption Speed40 years 20 years 5–10 years

Support

systems

Operations

systems

Decision-

making

systems Low-level

High-level

Front Desk,

Office… UC&C…

Version Control

Production Monitoring

CRM, ERP

Lights-out Manufacturing

Autonomous Logistics

UAV Delivery

Tactical Planning

Branding Strategy

Risk Identification &

MitigationFinancial Diagnostics

+ Intelligence

Next 10 Years: Companies Will Be the Primary Users of Cloud

• The next 3 to 5 years will be a critical period for

enterprises migrating to the cloud.

• In the next decade, more and more industries and

enterprises will "grow with cloud" as they adopt

cloud technology. Cloud computing will become a

basic technology for every industry in the era of

Cloud 2.0.

• By 2025, all enterprise IT solutions will be cloud-

based, and 85% of enterprise applications will be

on the cloud.

• Core enterprise applications, AI and IoT will be the

major drivers for customers migrating to the public

could in Cloud 2.0. Data analytics and intelligent

transformation will be the strongest driver for

enterprises migrating to the cloud.

• Full-stack capabilities of cloud + AI are key

elements for selecting cloud services.

Business MindsetTechnology

Cloud 1.0: Born in Cloud Cloud 2.0: Growing with Cloud

Rise of industry clouds:

Companies drive cloud

Intelligent

manufacturing Intelligent grid

Intelligent

healthcare

Intelligent

transport

...

Internet companies led

the first wave

AI Will Transform Every Industry

Computing powerData center and cloud

investment

Labeled DataIoT installed base and

analytics data creation

AlgorithmsSoftware developers

and AI investment

AI readiness

"AI + Industry" will generate new

ecosystems and new business models.

More established industries will benefit

the most from AI.

Public

utilities Education Healthcare Media Pharma Logistics Finance

Insurance Retail Manufacturing Telecom Oil & gas Agriculture

Emerging Technologies Drive Digital Growth While Bringing New Challenges to

Cyber Security and Privacy Protection

New technologies New opportunities New challenges

Mobile networks and sensors help us

achieve high-density interconnection.

Cloudification enables resource sharing

and service platforms transform from

closed platform to open platforms.

AI and big data power in-depth mining

of information.

The traditional protection boundary

becomes more and more blurred.

Data processing is more complex and risk

of data leaks is increasing.

The attack surface is larger and

vulnerabilities are increasing.

Cloud SDN/NFV AI

5G IoT

Huawei's Digital Transformation: Leading the Industry in Efficiency and

Customer Satisfaction

Huawei's digital transformation journey

Digital Vision

R&D Sales OfficeSupply Service Finance Envm't Admin …

Customers

(B2B)Employees

(B2E)

Suppliers

(B2S)

Partners

(B2P)

Consumers

(B2C)P

Innovation Demand Supply Workplace

Application as a Service

Shared data foundation

ICT infrastructure

Cloud

Digital transformation drives more efficient customer service, supply chain, product

management, processes, and organizations. Huawei has realized the ROADS

experience internally, and leads the industry in terms of efficiency & customer

satisfaction.

Over the past 30 years, Huawei has built a wide array of IT

systems, such as ERP and CRM. These systems made

management and reporting possible, but they did not lock in

sustainable growth. IT systems formed data islands that

blocked information flow. High-value data was not shared, and

its value was lost.

In 2016, Huawei realized that it must digitally transform itself

for better development in the future. The company decided to

realize ROADS experience internally, and set its sights on

leading the industry in terms of efficiency and customer

satisfaction. (ROADS: Real-time, On-demand, All-Online, DIY, Social)

Huawei's goals for digital transformation

ROADS experience

Digital transformation

5G is in reachA Closer Look at 5G Infrastructure, Progresses and Policies

28

Key Usage Scenarios Drive for 5G

Enhanced Mobile Broadband

5G connections will go beyond human beings’ communications, and will enable intelligent internet of things in the future. Next

generation of telecommunication technologies will be adopted by a wider range of industries and sectors.

4K/8K UHD

VideoAR & VR Cloud Gaming Enhanced Mobile Media Home Broadband

& TV

In-venue Wireless

Broadband

In-car

Operations

Ultra-reliable Low Latency Communications

Ultra-reliable applicationsSelf-driving VehiclesIndustrial Automation Remote Manufacturing/Surgery

Source: Recommendation ITU-R M.2083

eMBB

10 Gbps

mMTC

1 million connections/km2

URLLC

1 ms

Massive Machine type Communications

Smart Homes/Buildings Energy & Utilities Smart Agriculture Logistics Smart City

29

5G-based Fixed-Wireless Access can Provide Gigabit Broadband to Homes

FWA

Stage 1: FWA User Improvement Stage 2: Enhanced Home APP Stage 3: In-venue Ecosystem Exploring

• Broadband + 4K + VR • Home Cloud, Home Security • Smart Home, Wireless Health/ Education, etc

Home Security Home Health

Home Entertainment

Home Management Home Automation

Data

VR

Camera

LTE-A 5G

Protect

interactConnect

SMARTHOME

IPTV

5G will provide an attractive alternative to complement existing provisioning of gigabit home broadband. Close cooperation

between the telecom operator and the service creator will help to improve chances of success in the market.

SMARTHOME

30

Enhanced Mobile Broadband Brings New Experience of Quality

5G will carry the heavily loaded data transmission required for VR/AR graphics, industrial video for machine monitoring, live

stream etc., where large amounts of media and data will need to be supported for uplink or/and downlink communications.

Tactile Internet 4K/8K, UHD Video HD Augmented RealitySports Stadiums Virtual Reality

Speed DL UL

Speed experienced by users 100 Mbps 50 Mbps

Peak rate 20 Gbps 10 Gbps

Peak spectral efficiency 30 bps/Hz 15 bps/Hz

Sources: ITU-R, Minimum requirements for IMT-2020, Huawei

Resolution 2D 3D

4K ~25Mbps ~50Mbps

8K ~100Mbps ~200Mbps

eMBB

3G

4G

1 Mbps

10-20 Mbps

100-200 Mbps

Cloud Gaming

Cloud PC

Cloud VR/AR/MR…

31

e.g. Enhanced Mobile Broadband Empowering VR/AR Services Cloudified

Cloud AR/VR

Content

providerChipsetHMD

Rendering &

Cloudification

Online

storeNetwork

• HTC Vive

• Oculus Rift

• PSVR

• Microsoft

Video Game Education Industries

• Whaley

• iQiyi

• Migu

• 3Dbobo

• VeeR

• Youku

• Tencent

• Letinvr

……

• V-Sensory

• NineD

• OneShow

• Enjoy Future

• Kukrgame

• Battle Times

• Achiact

• UBISOFT

……

• Idealens

• Cylon

• FlyVR

• Vrschool

• ChocEnglish

• HeiVR

• Elernity

……

• Tourism

(NineD)

• Medical

(OneShow)

• Retail(JD)

• Social

(BeanVR)

• Mfr. (GDI)

• Realty.(Shadow

Factory)

……

50+ top VR

industrial partners

2 Cloud VR Openlabs

(Shanghai/Shenzhen)

12 Cloud VR

scenarios

Cellphone based

PC based All in one

• HBD

• Google

Daydream

• Pico Neo /

Goblin

• DPVR M2

• 3Glasses

• PiMax 4K

• Oculus Go

remote experiencetourism, live streaming,

remote maintenance, etc.

simulative realityrole preparation, simulation, etc.

augmented realityholograms, training, etc.

visual realitymedia, entertainment, etc.

shared realityvideo calls, design collaboration, etc.

hyper realityVR assisted surgery,

human-machine interaction, immersive service, etc

Ecosystem

Steam

VIVEPORT

Oculus Home

Sony PSVR

Cyber Cloud

NVIDIA

HTC(TBD)

Telcos & Huawei Qualcomm

32

Latency

Bandwidth

≤100 ms

≤20 ms

≤3 Mbps ≤15 Mbps

consecutive small packets

Patient location, Wireless infusion, Wireless monitoring

video & audio + medical image

Wireless specialist diagnosis, Emergency rescue, Surgery teaching, Robot/mobile inspection

video & audio + medical images + Haptic feedback

Remote robotic ultrasonic/endoscopy/surgery

AI+ vehicle to provide mobile medical diagnosis & treatment

Video-assistedmedical diagnosis

Data collection, monitoring, and analysis

Source: Huawei, Wireless Healthcare White Paper

5G Potential Usage in Wireless Healthcare

Concerning medical video services, 5G provides suffitient bandwidth to support multi-channel HD videos and VR/AR in

healthcare. As for medical operations, 5G supports remote sense of touch and eye tracking.

Medical monitoring & nursing

Medical diagnosis & guidance

Remote operation & control

Smart Healthcare

33

First Movers Exploring 5G Use Cases

NextGen mobile user experience Gigabit broadband to the home

5G 4K IPTVSouth Korea LG U+

5G hologram video callJapan NTT DOCOMO

5G 4K UHD streamingChina Mobile

5G Live AR/VRDeutsche Telekom

5G VR Sports LiveKT

automated drivingGerman Aerospace Center (DLR)

5G remote drivingChina Mobile, SAIC

5G remote drivingVodafone, University of Surrey, Technical University of Munich

5G smart driving busChina Telecom, Shenzhen Bus Group, BYD, Haylion

5G ball balancing robotFesto

3.5 GHz CPE + drones for VR live streamingSouth Korea LG U+

5G Cloud VRHuawei

Digital industrial ecosystemsFuture corporate networks

5G can provide high-speed enhanced

mobile broadband and related services

such as VR, AR.

5G can provide gigabit speeds and

better infotainment services to

homes.

5G can provide high-speed and

high-reliability networks to improve

productivity and reduce costs.

5G will provide an ecosystem that

brings multiple solution providers

together.

eMBB URLLC/mMTC

34

5G Drives New Era of Technology Innovation

5G is composed of LTE evolution and NR innovations to improve spectrum efficiency and enable multiple services.

Air interface

New waveform F-OFDM

New channel coding Polar, LDPC

New high order modulation DL 1024QAM，UL256QAM

New frame structure self-contain, short slot, slot aggregation

Soft AI

New physical signal

flexible numerologies

CRS Free, new DM-RS

35

Evolutional Path to 5G: Non Stand Alone/Stand Alone Architecture i.e. mixed 4G/5G

and pure 5G

Taking a Rational Look at 5G from Industry’s Perspective

Strategy

2017 2018 2019 2020 2025

EU early deployment 5G at least in 1 city of MS all urban areas and along main paths

UK auction, e2e 5G trial testbed spokes commercial use high quality coverage

Germany auction the conditions for the rollout having 5G connectivity

France trials and pilots freeing up of bands, first devices frequency allocation coverage of main routes

Japan system trial securing frequency bands achievement of 5G services

Korea test projects, band distribution commercial use national coverage additional 4.4 GHz(2026)

Canada test projects test projects auction

Australia 3.6GHz auction new spectrum management framework

• Making 5G a success for Europe

• Position Europe as the global lead market for 5G

• Be a global leader in 5G and creating aworld-leading digital economy that works for everyone

• Making Germany a lead market for 5G applications

• Making 5G a priority for France

• Be home to the world’s first 5G applications in industrial sectors

• Supporting 5G realizationfor 2020 and beyond

• Creation of a super-connected, data- and service-centered network environment

• Provision of 5G network with high performmance

5G for Europe:

An Action Plan

Mid- to Long-Term Master Planin Preparation forthe Intelligent Information Society

36

e.g. European 5G Framework

Strategy

EU has been focused on “Giga Society” and “Industrial Digitalization”, with key actions such as coordinated/synchronized

introduction of 5G, joint R&D programme, regulatory certainty and updates as well as international cooperation.

New Gigabit broadband targets for 2025>=100 Mb/s(up to 1 Gb/s) access for all EU households

Connectivity Package

5G Action Plan for Europefully commercial 5G services in Europe by the end of 2020

European Electronic Communications Code“5G-ready” review of the telecom framework

R&D since 20135G PPP

Sectorial initiatives

Transport, etc.C-ITS Strategy, etc.

Alignment of 5G

objectives and

schedule across

EU

Radio spectrum

Dense networks

Technology

standards

Business

innovation

(demand side)

• Venture capital to foster innovation

• Public sector as a primary user

• Industrial engagement ('focus group') on joint trials ('trial roadmaps') and ecosystem development with 'verticals'

• Basic standards by end 2019

• Broad approach: network access and core

• Based on industry experiments involving vertical sectors

(5G-PPP role)

• Roll-out goals for fibre deployment (backhaul) • Administrative best practice for small cells

• Common authorisation models (>24 GHz)

• Band identification ('pioneer' bands and beyond)

• Common timetable to meet connectivity targets (2020 &

2025)

• National 5G roadmaps (in broadband plans)

• '5G-ready' cities; support for field tests

5G Coordination

Source：5G for Europe: An Action Plan, 2017

37

Strategy

Recommendations on Strategy

Aspiration

Roadmap

Making spectrum available in a timely manner

Reviewing existing telecommunications regulatory arrangements to ensure they are fit-for-purpose for the future

Stimulating the experiment and demonstration to promote the taken-up of technology(coverage, penetration, etc.)

Streamlining arrangements to allow the carriers to deploy infrastructure by timetable

Actively engaging in the international standardization process

Task & Tool

Spectrum

Resourceful Policy Decretory Policy Participant Initiative Economic Incentive

It’s dedicated to settle down the targets, leverage existing resources, unlock bottlenecks, ease the procedures and provide the

certainty for investment over the long term.

Approval Limits

Easing Obligation

Interdepartmental management

Data sharing

Platform for dialogue

Platform for cooperation

Funding for R&D&I, USF

PPP

Tax deduction & exemption

38

How 5G will Influence Economies

Economy

2020 2021 2022 2023 2024 2025

8%

17%

22%

25%

29%

34%

Global 5G coverage and adoption

5G connections(billions)

Populationcoverage

Source：GSMA Intelligence

0.1

0.3

0.5

0.8

1.1

Contribution of 5G to Canadian Economy

Source：Accenture strategy, fuel for innovation, Canada’s Path in the Race to 5G

Global 5G value chain output and employment in 2035

Gross output $719B

Employment 3.4M

United States

Gross output $120B

Employment 963K

Korea

Gross output $492B

Employment 2.1M

Japan

Gross output $76B

Employment 605K

United Kingdom

Gross output $202B

Employment 1.2M

Germany

Gross output $85B

Employment 396K

France

Source：IHS, The 5G economy: How 5G technology will contribute to the global economy

5G’s productivity benefit on real Australian GDP per capita in 2050

Shorter benefitLagged rollout

Shorter benefitQuick rollout

longer benefitLagged rollout

longer benefitQuick rollout

Source：Australian Government, Impacts of 5G on productivity and economic growth

Per

person

by 2050$1,900 $7,600$2,700 $8,400

39

Industries with More Intensive Telecom Use could be the Biggest Initial Users of 5G

Economy

Source：BCAR estimates derived from ABS Input-Output data for 2014-15 (Cat. No. 5209.0.55.001

eMBB is the clearest potential 5G use case in early deployments and will support the delivery of high-definition video, immersive

communication and smart city services, under laid by capacity, latency, MEC, virtualized networks and network slicing.

Home broadband and TV

AR & VR

Cloud gaming

Enhanced mobile media (advertising, video, music, etc.)

In-car entertainment

Haptics

In-venue media

5G Early Applications from Enhanced Mobile Broadband

Source：Ovum, How 5G will transform the business of media & entertainment

Priority Use Cases in Early 5G Deployments

74%

21%

5%

Enhanced mobile broadband

Massive IoT 4G NB IoT and eMTC from the start

Ultra-reliable communications (critical services, etc.)Less priority due to uncertainty and trade-off with ROI

Source：GSMA, CEO 5G survey, 2016

40

Prospects for Potential Influences of 5G Applications

Economy

IndustryEnhanced

Mobile Broadband

Massive Internet

of Things

Mission Critical

Services

5G-enabled output

(2016$, M)

Percent of industryoutput

Agriculture,forestry,fishing 510 6.4%

Arts, Entertainment 65 3.5%

Construction 742 4.7%

Education 277 3.5%

Financial, insurance 676 4.6%

Health, social work 119 2.3%

Hospitality 562 4.8%

Info, communications 1421 11.5%

Manufacturing 3364 4.2%

Mining, quarrying 249 4.1%

Professional service 623 3.7%

Public service 1066 6.5%

Real estate activities 400 2.4%

Transport, storage 659 5.6%

Utilities 273 4.5%

Wholesale, retail 1294 3.4%

All industry sectors 4400 3600 4300 12300 AVE: 4.6%

When taking into account the economic activity supported in other sectors of the economy, the total economic output enabled

globally by 5G by 2035 is estimated as $12.3 trillion.

Source：IHS, The 5G economy: How 5G technology will contribute to the global economy

No impact High impact

e.g. the impacts of mobile broadband and 5G in UK

“A report, by Development Economics for

O2, predicts that national 5G infrastructure

will directly contribute an additional 7

billion a year to the UK economy by 2026,

with an additional 3 billion per annum

through indirect impacts through the supply

chain.”

Direct impact

Indirect impact

Induced impact

Associated with the operators undertaking the investment.

Associated with the operators supply chains, in terms of businesses from which they purchase goods or services, and in turn the supply chains of those businesses.

Induced impacts associated with increased employment and economic activity, which then generates higher spending by both consumers and businesses.

41

Combination of Frequency Bands for 5G Usage

Spectrum

To address diversified requirements from the envisioned 5G usage scenarios, 5G needs access to high, medium and low

frequencies, e.g. 3300-3800 MHz, 700 MHz, 24.25-29.5 GHz and 37-43.5 GHz, etc..

eMBB

eMBB, URLLC, mMTC(wide-area but no deep

coverage)

mMTC, eMBB, URLLC

High Frequencies

Addressing specific use cases

requiring extremely high data rates

Medium Frequencies

Best compromise between capacity

and coverage

Low Frequencies

Wide-area and deep indoor coverage

Above 6 GHz

800 MHz assignments

(contiguous)

2 - 6 GHz

100 MHz assignments

(contiguous)

Below 2 GHz

42

Recommendations on Spectrum

Spectrum

Regulatory frameworks need to support the 5G technology innovation. Technology neutrality will be critical for

smooth introduction of latest technologies and services in existing and new bands. Regulatory masks should be

revised to support the statistical nature of massive MIMO antenna systems.

100 MHz per operator will be needed to make the most benefits of the 3400-3800 MHz spectrum.

Contiguous spectrum is recommended to prevent its fragmentation and scarcity.

A combination of high, medium and low bands is required to address a wide range of usage scenarios and

requirements.

Exclusive national licences have been a key underpinning of the phenomenal success of mobile services.

It’s critical to ensure affordable access to spectrum for 5G. Auctions represent a fair regime by providing a rational

market value of dedicated exclusive spectrum to users who value it the most; therefore auctions:

- should be designed to stimulate spectrum usage

- should be designed to maximise benefit for society

- should be designed to stimulate investments in infrastructure

1234

5

6

43

Fits for the Purpose for 5G Networks Roll-out - Access to Utility Poles, etc.

We recommend that governments and public sector organizations push for sharing of public infrastructures with network carriers

(e.g. sidewalks, street lights, roofs of public buildings) so that they can build 5G base stations more efficiently.

eMBB Service: High Peak-to-Average

Ratio

Pole Site Eliminates Gaps of User

Experience

Easy Deployment on Site

Room Limitation in

Dense Urban70%

Buildings under

Poor Coverage560Mln

Room Limitation Leads to Poor Coverage in Dense

Gbps

100 Mbps1000 X

THR

TimeBusy Hour Idle Hour

Mbps

C Band

200MHz BW / 200W, 64TRX

Eliminate the Gaps of Gbps

Pole siteMacro site Macro site

3.5G AAU

64T64R

55%

Volume

23%

Weight

4GAntenna+RRU

Main Pole +

Secondary PoleOverlay Dual poles

4G:RRU+Antenna

5G AAU

Parapet

5G AAU

4G:RRU+Antenna

Infrastructure

44

5G Innovation & Cooperation with the Operators

5G RAN5G Transport 5G Device5G Core

BBUC-Band mmWave 5G CPE

5G chipset

5G smartphone

…50+Operators

test & trial

Telus | FWA

2017.06 NTT DOCOMO | URLLC

2017.11

LGU+ | IPTV

2017.10

DT | Live AR/VR

2017.10

Vodafone | Mobility

2017.10

Launch since

2019

>305G Commercial

Contracts

45

5G Evolution of Key Lengths

UERAN

Core

network

RRC/UP cipher

(2G-64Bit/3G&4G-128 Bit)4G NAS cipher

(128 Bit)

Summit, the supercomputer

The 2/3/4G key is 64/128 bit

• Summit is by far the most advanced supercomputer for use at Oak

Ridge National Laboratory, US.

• Only a small number national laboratories run supercomputers.

Security is guaranteed even for 2G, 3G, or 4G networks.

UEgNB

5GC

RRC/UP cipher

(128/256 bit)NAS cipher

(128/256 bit)

128 bit X seconds

Future quantum computer

256 bit Trillion years

5G keys can be enhanced to 256 bit Standard organizations start research and discussion

* The concept of quantum computers was put forward in the 1980s. So

far, no one quantum computer has really come out of the lab. There is

no real quantum computer now.

64 bit 3–4 seconds

128 bit Trillion years

46

5G Providing Security Isolation and Slicing Technologies to Isolate Services & FunctionsHardware isolationSoftware isolation

Operations

securityDeployment

securityBearer

network

5GC

Carrie

r

Serv

ice

pro

vid

ers

VR/AR 4K/8K

3G/4G

eMBB

URLLC

eMTC

Service

provider

A

Service

provider

B

Service

provider

C

5G

Telco

Service

provider

D

Service

provider

E

Service

provider

F

Service

provider

GFW FW

47

5G NSA: No Fundamental Differences Exist between 4G and 5G Architecture

5G Core and RAN are Separated

As an Important Contributor to Industry Standards, Huawei Works with Industry

Partners to Set Security Standards

Board member Leads proposal drafting of 4

working groups; chairs DOTS

and I2NSF working group

Major contributor to

SA3, driving 5G

security

standardization

No. 1 contributor to

NFV Security Group

Board member

Executive corporate

member

As of August 2018, Huawei had submitted 335 security proposals in collaboration with industry partners, with 168 accepted, ranking first globally.

306 of these proposals were 5G security proposals with 144 accepted, ranking first globally.

48

Food Security

Establish agro-processing zones and

support SMEs

Improve irrigation

Private investment in

large-scale farming

Post-harvest technologies

reduce waste, e.g. coldchain

Credit for farmers and

SMEs

Local fertilizers and feed (and waive import

duties)

Affordable power for SMEs

Transport Infrastructure

ICT Infrastructure for farmers to get knowledge

and market information

ICT can support

ICT can drive

Key:

Big Four Plan

PRESIDENT KENYATTA SAID DIGITAL TECHNOLOGY WILL SUPPORT EFFORTS TO INCREASE FOOD SECURITY BY PLAYING A KEY ROLE

IN AGRICULTURAL VALUE CHAINS THROUGH BETTER ACCESS TO INPUTS, MORE RELIABLE WEATHER AND CROP INFORMATION, TRACKING OF COUNTERFEIT INPUTS, MORE TRANSPARENT ACCESS TO MARKETS AND FAIR PRICING.

ICT opportunities: Government Suggestion:

ICT for farmers to get knowledge /market information

Ensure MBB coverage, low-cost access to smart devices, ICT skills and suitable content for all farmers and aggregators/agricultural extension officers in all villages for farmers to access knowledge, credit and market information.

Smart logistics (IoT) Use smart logistics/coldchain to reduce post-harvest losses and enhance distribution/export markets to increase farmers’ income

Smart irrigation (IoT) e.g. water, field sensors Use IoT in irrigation, rivers, water sources to reduce water wastage & improve yields

Animal tracking (IoT) Use IoT to track and monitor the location and health of animals to reduce loss/theft and increase productivity

Affordable Healthcare

Funding for healthcare insurance

Improve efficiency and

quality of public health

Attract private investment

and partnerships

Increase NHIF sign-ups,

including using ICT and Agents

Digitization of NHIF to

reduce costs

E-health for low-cost service delivery

ICT can support

ICT can drive

Key:

ICT opportunities: Suggestion:

Devices, servers, connectivity, HMIS software and LAN for 4,000+ public facilities to efficiently provide care and NHIF services

Connect all health facilities, provide IT and HMIS for efficient delivery of care and services (reduce health budget & increase revenue)

Telemedicine and video library to provide remote consultations & live/recorded trainings Use ICT in KMTC and facilities for health worker training & patient care

Devices for 95,000 community health volunteers to sign-up NHIF and give health info Enable all CHVs to promote healthcare and recruit NHIF

Data center and Big Data platform for eHealth Hubs and Radiology Hubs Collect and analyze data for improved healthcare services, NHIF management, health resources management and delivery

Wi-fi, health content (apps, games, videos), devices at facilities and rural MBB coverage Enable citizens to get health information and prevent illness

Smart logistics and asset tracking (IoT) Use IoT in KEMSA and MEDS to improve efficiency and ensure reach rural areas. Use in facility fridges for remote monitoring of cold-chain.

Digitization of NHIF Improve efficiency of NHIF by upgrading ICT systems

Big Four Plan

PRESIDENT KENYATTA SAID TECHNOLOGY WILL SUPPORT AFFORDABLE HEALTHCARE BY DRIVING ACCESS TO INFORMATION,

BETTER FINANCING, STRONGER TRAINING FOR HEALTH WORKERS, AND, ULTIMATELY, BROADER ACCESS TO SERVICES.

Manufacturing

Incentives and policy for

manufacturers

Industrial zones and

parks

Attract private investment

and partnerships

Warehousing, logistics and

coldchain

Support and finance

entrepreneurs and SMEs

Increase exports

Strengthen innovation ecosystem

ICT can support

ICT can drive

Key:

ICT opportunities: Suggestion:

Konza for BPO Provide connectivity, data center and devices in Konza to grow BPO industry

ICT for individuals, schools, TVET and community centers

Provide connectivity, devices, content at all educational and community centers to facilitate e-learning and online jobs as part of Ajira to upskills manufacturing workers

Smart logistics (IoT) Use smart logistics to grow distribution/export/e-commerce to increase SME income

Smart campus Provide connectivity and ensure safety of industrial parks so they can grow

Funds, mentors, PR for innovators Support and promote local software developers/apps so they can generate income

ICT training and internships Build advanced ICT skills to increase ICT jobs

Big Four Plan

Affordable Housing

Make public land available

for housing

Funding and incentives for

affordable housing

Modern technology & methods to reduce costs

Easy and fast permitting

ICT can support

ICT can drive

Key:

ICT opportunities: Suggestion:

Fiber to all homes Policy: all new housing to be fiber-ready to enable residents to get online work. Require all estates to provide a community center with ICT.

Digitization of land records and expansion of Huduma Centers/access points

Create Digitization Office in ICT Authority (Ministries should pay; ICT Authority should give Quality service) to improve government services

Public Wi-fi and devices in community centers/cyber cafes

Policy requiring estates to provide free wi-fi/cyber cafes or Ajira program to provide, for residents so they can get online work

Safe Community (cameras, lights, ITS) Build digital police Station and safe community for thriving communities

Linkedin/job portal Portal with verified certificates and feedback on employers and employees to facilitate easier hiring of quality staff and as formal workers

Big Four Plan

Public Goals and Budget Statement for Big Four Emphasize 6 Other Enablers

Huawei’s Vision for Kenya

• Agriculture: use of sensors, big data and drones to increase yields and market efficiency leading to increase incomes, more food security and less food wastage.

• Education: use of video-on-demand, live video, and real-time testing enabling higher quality teaching, more personalized content, and better feedback for student and teacher performances.

• Energy: use of sensors, meters and more efficient transformers to monitor performance, reduce loss of electricity in power lines and more revenue from customers enabling reductions in power generation and investments in additional power generation.

• Environment: use of sensors, drones and big data to more efficiently monitor environmental degradation, human, animal and nature’s activities, and thus prevent environmental damage.

• Health: use of digital devices to provide preventative healthcare, remote monitoring and diagnosis, and to collect data to improve government resource allocation, disease monitoring and patient treatment improving public health.

• Security: use of sensors, surveillance and big data to improve prevention and prosecution of crime improving public safety.

• Transport: use of sensors, cameras and big data to improve traffic and public transport planning, management and control reducing infrastructure investments and environmental impacts.

• Water: use of sensors and meters to monitor availability, flows, transfers, reduce leakage and generate more revenue from customers enabling less usage of water and investments in protecting water sources.

Copyright©2018 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.

Thank you

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