Generate growth in Asia Pacific

with Intelligent Connectivity

Edward Zhou

Huawei Technologizes

A revolutionary shift is happening in the way the world works,

with economies across the planet going digital fast

156 countries have released national

ICT development master plan

Industry 4.0 Internet PlusAdvanced Manufacturing 2.0

Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia

Nigeria NationalBroadband Strategy

Colombia Live Digital Connected Argentina

Countries are setting policies to encourage ICT investmentThe Global GDP forecast 2017

Source: IMFSource: ITU

2.8

2.7

2.5

3.0 3.1

3.02.9

2.0

2.2

2.4

2.6

2.8

3.0

3.2

2014 2015 2016 2017 2018 2019 2020

%Global GDP Growth Rate

100M

Tech Example: RuralStar

New rural users will be covered

In 2018, in more than 20 countries

Best Innovation for Emerging Market

“RuralStar ticks all the emerging

markets benefit boxes”

TCO 70%

TTM 80%

CO2emitted 30%

Connectivity plays a

key role in all 17

SDGs

Good Health And Well-Being

Quality Education

Gender Equality

Affordable And Clean Energy

Industry, Innovation And Infrastructure

Sustainable Cities And Communities

• Mobile health

• Digitalized medical records

• Digital education

• Training for women in coding

• Wireless network access

• Massive open online courses

• Big data for renewable energy

• Smart grids

• IoT for manufacturing

• Cloud

• E-government

• NB-IoT and connected sensor

At the same time, ICT’s positioned to be the enabler, to accelerate

the achievement of UN’s sustainable development goals

A country's hierarchy of digital needs

Digital brainDigital brain

Industrial digitizationIndustrial digitization

Security assuranceSecurity assurance

InfrastructureInfrastructure

ICT SUPPLY CHAIN

ECOSYSTEM

GCI：Mapping 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 that

connectivity generates for a country’s transformation into a digital economy, and serves as a reference for regional and national policy

makers.

79 Countries 95% GDP 84% Population

GCI methodology matrix: 4 economic pillars by 5 technology

enablers

SUPPLY DEMAND EXPERIENCE POTENTIAL

Fundamental : e.g ICT laws, application, e-Government, R&D �

GCI Scoring Model

IOT

BIG DATA

CLOUD

DATA CENTERS

BROADBAND

5 T

ech

En

ab

lers

Strong 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%

Economy

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$16,300GCI 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$54,100GCI 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.

Most countries have embarked on the road to a digital economy,

many AP countries are at Adopters stages

Starters Adopters Frontrunners

110K

70K

60K

50K

40K

30K

20K

10K

0

80K

90K

110K

100K

15 25 35 40 45 50 55 60 65 70 75 803020

GCI 2018 score

Avg

. N

om

ina

l G

DP

pe

r C

ap

ita

20

17

Ethiopia

ParaguayBotswana

Argentina

Philippines

Belarus

Brazil

Bahrain Greece

Malaysia

Estonia

China

PortugalItaly

United Arab Emirates

Luxembourg

IrelandNorway

Switzerland

United States

SingaporeSweden

DenmarkAustralia

Germany

France Japan United Kingdom

Finland

South Korea

Economy

ThailandVietnam

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 the widening inequality between Starters, Adopters, and Frontrunners

Average scores 2018

STARTERS ADOPTERS FRONTRUNNERS

Economy

Imperatives for Digital Transformation Planning

ICT Infrastructure

Industry and

Enterprise

ICT Talent

Governments: Continuously enhance investment in digital infrastructure,

especially the expansion of broadband coverage, and the adoption of cloud

technology to ensure fair competition and inclusive growth in their own

economies throughout the global digitization process

Economies: Integrate digital infrastructure development with local industry

strengths to expedite industry upgrades and enable major industries to move

up along the value chain, and encourage innovation as well as bolster the

competitiveness of their major industries and enterprises

Governments: Work with scholars, technology providers, as well as education

and labor departments to ensure that digital resources are more widely and

readily accessible. Improve the digital knowhow of specific subsets of the

workforce, and cultivate a group of exceptional talent that is well positioned to

meet future needs

Prioritized policy recommendations

For Starters

FOCUS AREAS

ICT Infrastructure

Priorities in 2018

Focus on improving network

connectivity (e.g. 4G and

backhaul)

Industry and

Company Priorities Focus on e-Commerce

and social media etc.

Workforce

PrioritiesFocus on e-work such as

online sales

For Adopters

FOCUS AREAS

ICT Infrastructure

Priorities in 2018

Focus on 4.5G IoT and

data centers

Industry and

Company Priorities Focus on cloud and

big data to build

foundation for AI

Workforce

PrioritiesFocus on big data

education

For Frontrunners

FOCUS AREAS

ICT Infrastructure

Priorities in 2018

Focus on IoT, 5G and

ultra-fast broadband

roll out

Industry and

Company PrioritiesFocus on increasing

investment in AI and

analytics

Workforce

PrioritiesFocus on education

curriculum that prepares workers

for an AI-enabled future

e.g. Help to Build the Thai 4.0 ecosystem

OpenLab Innovation Talents

Huawei Infrastructure: Chipset, Base Station, IoT

800+ visits to OpenLab Bangkok

200+times of communication

with Thai enterprises

80+ISVs cooperation

25firms use OpenLab for joint

solution development

Huawei OpenLab Bangkok

Talent plans

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.

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