3 KEYs for Ultra-Broadband Development: "C-E-O"

Lim Chee Siong

CMO, Huawei South Pacific Region

cslim@huawei.com

2

2

UBB Broadband Development Map = （BB Total Subscriber *Average Bandwidth）/ Population

Connect

Content

Cloud

Population Dividend

Video Dividend

Digital Dividend

Source: ITU, AKAMAI

3 Dividends in Ultra-Broadband Development

( Cost Reduction )

( ARPU Increase )

( Bandwidth on-Demand )

3

3

1.1 Billion unconnected households

150+ Countries with National Broadband Plan

Connect 2020

70% Penetration by 2020Broadband China

71% Coverage in urban by 2019

55% Broadband to Households

Indonesia Broadband Plan

4

4

Cost is the KEY for Deeper Penetration

South AfricaChina

Cost Penetration Cost Penetration

200 $ 28.9% 1350 $ 0.06%

The average home-connected Cost and Penetration of FTTH

Source: MIIT Source: Huawei iLab

5

5

How to Lower the Cost…

Friendly Policy &

Regulations

Infrastructure

Synergy

Innovative

Tools & Solutions

Source: Huawei iLab

£1.2B subsidy for rural BB

"Fiber from the home"20% Cost Saved

"From Burial to Aerial"

14% ODN CAPEX Saved

Road

Railway

Crude oil

Natural gas

Electricity

Motorway

8000 km Fiber Network

Product InnovationMini OLT, Dual mode ONT…

Engineering InnovationMicro-trench, Fibre Blown…

Management InnovationStandard Operating Procedure,

Subcontractor Training…

"Telco first“ as ICT new Target, break LLU in 76 cities

Investment

Encourage

Cost

Reduction

Egypt

Grant new fixed licenseActivate stagnant market

Poland

6

6

4K Everywhere,

with Telcos Racing to Launch

Waves of Telcos Launching 4K Video Service

80’ 4KTV

<=2000 €

2015 2016 2017 2018

60% TV

is 4K500+4K Video

860+4K channel

2013

2014

2015

2016

United States

Korea & Japan

China

Europe

( OTT + Premium Content )

( FTTH + Policy )

( FTTH + 4K TV/STB )

( Competition + Live sports )

Korea’s 4K: BTV, 2013

Japan’s 4K: BTV, June. 2014

7

7

: Benchmarking Video User Experience

QualityContent

Interactionloading

Viewplaying

“0” Distortion “0” Waiting “0” Impairment

Kick off G.vidmos in ITU-T ( ITU&Huawei )

= f（sQuality, sInteraction, sView ）U-vMOS

Bad

1

Excellent

5

Good

4

Poor

2

Fair

3

Source: Huawei iLab

No Distortion Little Distortion

No influence

Distortion

Little influence

Distortion

Influence

Distortion

Much influence

Video Experience Quantified into 5 grades

sQuality sInteraction sView

8

8

: Take a Glance at Cities Around the World

Shenzhen

China

Moscow

Russia

Mumbai

India

Karachi

Pakistan

Sydney

Australia

Singapore

Singapore

Cape Town

South Africa

Rio de Janeiro

Brazil

Paris

France

Seoul

South Korea

>3.5

3~3.5

<3

9

9

4K is Game Changer with Experience the Differentiator

High BW E2E ≥ 50M*n

Low Delay E2E ≤ 20ms

Low PLRE2E < 10-6

OTT: Cloud-Terminal Synergy Only

Telco: Cloud-Pipe-Terminal Synergy

4K Content

4K Content

Network KPI for 4K video

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

2014 2015 2016 2017 2018 2019

4K Video Traffic (E Bytes / Month)

China Telecom SC（4K） =

OTT YK（HD） =

10

10

Looking Forward, VR is About to Take Off…

Facebook press conference by VR VR content made easyDevice widely available

Gear 360 Camera

• 200+ games and social VR apps

Connected VR demands ultra-high speed (>750Mbps), and ultra-low latency (<10ms)

• 20k+ 360-degree videos uploaded to Facebook

11

11

Telcos Expanding Cloud

Service

Connectivity Service Provider ICT Service Provider

Leased Line

Datacenter

Cloud

Application

Global Operators

2015, 82% New APPs in Cloud

12

12

B2B will be Rebuilt by Cloud

“ We sell boxes and services in

the past, while capabilities and

platforms in the future. ”

“ In the future 20 years,

enterprise IT service will be the

biggest opportunity. ”

Cloud leads

Enterprise’s LAN to

Telco’s WAN

13

13

On-demand can Fill the TTM Gap in Cloud Business

PAN-EU/Terastream

( DT )

CUBE-NET

( China Unicom)

Network 2020

( AM )

CO 2020

( TI)

Domain 2.0

( AT&T)

NovoNet 2020

( China Mobile)

Network 2020

( ET)

Essential 2020

( Orange)

Tenant ordering

CPE install

CPE delivery

E2E service getting

ready

Device configuration and

service provisioning

Service monitoring and

customer signoff

Fiber checking1 day

15 days

7 days

7 daysPreconditions

• Fibers ready

• CPE delivered

~30 days

5~10 minutes

On Demand3 days

Telcos launched Plans for On-Demand Network

14

14Source: ITU, AKAMAI

UBB Broadband Development Map = （BB Total Subscriber *Average Bandwidth）/ Population

Connect

Content

Cloud

Population Dividend

Video Dividend

Digital Dividend

Cost

Experience

On-demand

Summary: Addressing C-E-O Issues, Achieving UBB Success

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