© CHINAUNICOM

Zhang, Yong

China Unicom Network Technology Research Institute, President

© CHINAUNICOM

China Unicom Transformation to Internetization

China Unicom

Network Technology Research Institute

Zhang, Yong President

2018 June

4.6 5.5 6.8 25% 28%

38%

0%

20%

40%

0.0

5.0

10.0

201709 201711 201803

Unlimited data plan permeabil ity vs. DOU

4G DOU (GB) Percentage of unlimit data plan user

• The mobile data and internet traffic of users will be 48EB per month by 2021 (1EB=1000TB)

• The CAGR of mobile data and internet traffic reached 46% in 2016-2021

The Trend of Digital Age：Voice->Data->Digital life

• The mobile voice call time decreases year by year, vs. WeChat voice

increases rapidly

• The China Unicom unlimited user DOU will reach 16GB by 2019

7.20111.183

16.46424.22

34.382

48.27

0

20

40

60

2016 2017 2018 2019 2020 2021

EB P

ER M

ON

TH

Mobile data and internet traff ic 2016-2021

Source：2017 Cisco VNI

28386.79 28102.920 26895.900

1022

5981.184

15045.360

0

10000

20000

30000

2015 2016 2017

CALL

TIM

E

Voice cal l t ime between mobile vs. WeChat voice (100 mil l ion minutes)

Source：MIIT & Wechat Reports

-2.6% -1.4% -4.3%

151.5%

485.2%

• Digital Service：the delay of AR/VR will be as low as 5ms，the bandwidth will reach about 9.5Gbps

Enterprises On-cloud in Digital Age：Cloud & Network Integration

Enterprise Services On-Cloud Rate

40% 85%

2020年 2025年

Source: Gartner

Games

Office Apps

E-commerce platform

SaaS vertical APPs distributed in multi-clouds.

Industrial manufacture华为云

• Enterprise digital transformation drives the demand of cloud, and the multi-cloud will be the main form in the future.

• The enterprises on-cloud present multi-touch points and diversification. Integration of cloud network is the breakthrough point of operators.

Quick fulfillment

All-in-one

Network visualizationmanagement

Localization service

Elastic extensionresources

Cooperation of cloud & network

Number of UEs （including IoT）

Peak rate of UEs

End-to-End Delay

Service Fulfillment Time

Challenges for Operators in Digital Age

X 100+（ A billion ->Hundreds of billions）

X 100+（100Mbps->10Gbps）

~ ms（50ms->within

10ms）

~ minutes（Months->Minutes）

Innovation in digital age: Cross-border & Cooperation

Traditional industries

New manufacturingNew manufacturingGEM| SiemensPredix | MindSphereGEM| SiemensPredix | MindSphere

New manufacturingGEM| SiemensPredix | MindSphere

New RetailNew RetailAmazonNo cash desk store

AmazonNo cash desk store

New RetailAmazonNo cash desk store

New fintechNew fintechAlipayCash-free parkingsave 80% of your time.

AlipayCash-free parkingsave 80% of your time.

New fintechAlipayCash-free parkingsave 80% of your time.

Positioning of China Unicom in the

industrial ecology?

Internal Drive: Red Sea to New Blue Ocean

External Drive: Big Data/Cloud/Mobile Internet/IoT

Which links and areas should be

prioritized and in which ways?

Breaking Through Capability Boundary: From Digitization to Intelligence

Breaking Through Business Boundary: Building a New Ecology

TelecomOperatorsTelecom

OperatorsTelecom

Operators

Competition & Cooperation

Coorperation

OTTOTT

OTT goes offline, retail, home and vertical industries

OTT goes offline, retail, home and vertical industries

OTT

OTT goes offline, retail, home and vertical industries

Complex ecosystem relationships

Digital Expansion

Connection, Cloud &VPN

New channels, new businesses and new types of cooperationdocomo

Drones and sensors improve the qualityof rice paddies.

T-Systems – High Performance Computing Cloud

Breakthrough business boundaries through joint creation

Breaking Through Capability Boundary through Intelligence

Merging with Internet Genes, and Creating “5-New" China Unicom• Nurturing robust Internet new genes• Exploring and improving the new governance of company's mixed-ownership

reform• Making Efforts to accelerate Internet new operations• Focusing on enhancing innovation and developing new momentum• Building a new ecosystem of outreach and internal communication

Rapid developing and on-line, rapid iteration, failure tolerance

Equality & OpennessEqual & open atmospheredecentralization, de-concentration

Focus on ValueEmphasize the creation, evaluation and distribution of Value

Agility & EfficiencyFlat structure, full authorization,IT supports process intensification & simplification

Embrace ChangesTechnology innovation drives strong atmosphere of innovation and entrepreneurship

Put Customers FirstUser-oriented, experience first &making product perfectQuick Trial & Failure Tolerance

Mixed-ownership

reform

China Unicom Introduces Strategic Investors & Builds a Common Development Community

Internet Genes

Network Transformation Initiatives in China Unicom

Simplicity Agility Intelligence Opening

Simplify Network equipment

Simplify Network Organization

Simplify Network Structure

On-demand

Elasticity

Self-service

Intelligent Network

Intelligent Service

Intelligent Product

Network Capacity Opening

Service Product Opening

One point access, serving the whole country

CUBE-Net 2.0+: A Simple, Agile, Intelligent & Open Network

IP+Optical network bearing plane

ApplicationComponentApplication Layer

③Cloud Service Access

Data-oriented Network（DoN）

Cloud Interconnection

Cloud DC+AI

Cloud DC+AI

Cloud DC+AI

Cloud DC+AI

②Ubiquitous-broadband Access

NaaS

Virtual Network

Resource Mgmt

Network Control

Cloud Service

……

④Cloud-enabledNetwork Service Platform

Service Collaboration and Orchestration

①Ultra-Broadband Elastic Pipeline

User-oriented Network（UoN）

MANaggregation

Mobile backhaul

DegionalDC+AI

Ubi

quito

us

Acce

ss

Fixed broadband

Wireless broadband

Mobile broadband

ApplicationComponent

BasicNE

API API

East-West Integration

East-West Integration

Southbound Control

Northbound Openness

Internet-oriented Network（IoN）

AI Reasoning and Analysis Platform

AI Training Platform

AI Model Injection

Big Data Analysis

Edge DC

Regional DC+AI

ApplicationComponent

To build a simple, agile, intelligent, & open CUBE-Net 2.0+ network with SDN/NFV and AI technologies and etc.

2015：CUBE-Net 2.0 -> 2018：CUBE-Net 2.0+（AI）

Simplify Equipment: hardware standardization & platform unification

第 10页

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

White Box

Leaf-Spine Fabric

White Box

White Box

SDN Layer

BBUs(Multi-RATs)

PONOLT MACs

EnterpriseMetro Ethernet

Virtualization Layer

Traditional network hardware and software platforms are various from different manufactures.

New networks adopt COTS server to realize the standardization of hardware. Software platforms are the virtualization,cloudification & unification.

To simplify network

equipment

Simplify Network: Build the simplest 4G+5G network & accelerate the migration of 2G users

3G

4G

2G

Data Service Bearer Network

Voice and Low-speed Data Service

Bearer Network

Voice Service Bearer

Network

Now: 2/3/4G

4G（VoLTE）

5GData Service

Bearer Network

All-service Base Network

Target：4/5G Collaboration

To simplify network

organization

Simplify Architecture: Reduce network hierarchy & Improve operation efficiency

Virtualization LayerCompute Storage Network

MME MME

Virtualization LayerCompute Storage Network

SGW PGW

Virtualization LayerCompute Storage Network

SGW PGW

Zone

Local Local

Next-generation OSS

Packet Switched Domain Bearer Network

Packet Switched Domain Bearer Network

MME S/PGW MME S/PGW

IP Bearer

Local network

Local network

Local network

Local network

prefecture-level

Provincial-level

Top-level OSS

Provincial-level OSS Provincial-level OSS

Traditional Network: Three-level, management by administrative

division

New Network:Hierarchical deployment by service

attribute, Intensive management and operation

Province A

Simplify Network

Architecture

Province B

Network Agility: Achieving flexible, self-service in all-in-oneReleasing potential

Cost-effective VPN

New growthSmart Service VPN + Cloud+ App

Quick opening

BoD

Flexible billing

Self-management

SLA visible

All-in-one

Reconstructnetworks

Reconstructprocesses

Network agility

Process Automation

Bandwidth adjustable &

flexible BillingFulfillment

automatically

Self-service network

managementintegration & automatically

Cloud network integration e-

commercial orderE-Commerce

order

Cloud service automatically

fulfillmentRoadmap

Year 2018 Year 2019~~

SDN smart line: Internet-based service experience

Product Agility: cloud & network integration, multi-cloud inter-connection

China Unicom Public Cloud

Industry Cloud

Private Cloud

Cloud broadband

Cloud networking

Cloud VPN Multi-Cloud networking

WO Cloud

Ali-Cloud

Tencent Cloud

Intelligence: AI-enabled intelligent & efficient network

Self-healing Self-optimizationAutomation Autonomy

Network intelligence

Agile, efficient & intelligent network capabilities

Service intelligence

Product intelligence

O&M efficiency, better resource utilization &

user experience

AI-based services & capabilities for

customers

Enabling AI and exploiting the potential in the network

UC 1: Fully automated network planning and design

UC 2: Smart network O&M platform

Automatically generating planning plans, drawing papers and calculating workload statistics according to route surveys, & automatically associating budgets

• Automatic planning and

simulation

• Digital design and drawing

• Full investment & management

Automatic planning

and simulation

Drawing papers automatically

Alarm association rules mining Alarm recognition processing

Alarm association rules knowledge DB

• Excavating and analyzing

alarm data associations

• Locating root alarms and

compressing alarms

Designing and developing alarm correlation analysis systems/modules in TN systems to improve the efficiency of operation and troubleshooting

Opening：Building a fully open network

China Unicom Network Capability Open Architecture

• Capability opening: one-level service portal, one point access, serving the whole country

Loose-coupled manner with capability open layer/service capabilitylayer/infrastructure layer separation architecture

• Customer service: open to all kinds of government and enterprise, Internet, vertical industry, and etc.

• Business Capability: implement and improve in stages, and realize platform construction

• Infrastructure: various types of infrastructure networks meet centralized and unified control requirements

Building an ecosystem for win-win cooperation together

Attitude: the partner is

the customer, the

customer is the basis

Manner: resources and

capabilities complement

each other

Objective: to achieve

common development,

& create an smart life

Cloud & Network integration

Smart Appliance

AI opening

MEC

5G-V2X

P2P CDN

© CHINAUNICOM

Deepen the transformation to Internetization,

Realize an all-win cooperation in digital age！