Smart Caribbean Forum

Building a Better Connected World

March 22, 2017

HUAWEI TECHNOLOGIES CO., LTD. Page 2

ICT Is Pivotal to National Competitiveness

GCI: Huawei Global Connectivity Index

ICT has become a core national competency. Developed countries are pushing ICT advancements further, such as

Singapore's Smart Nation plan and Germany's Industry 4.0. Developing countries are stepping up efforts to

implement their ICT strategies, including those for national broadband, e-government, and e-education.

For each GCI* percentage point increase the GDP per capita increases 1.4~1.9 percent.

Productivity will increase 15 ~ 25%, Connectivity will reach to 100Bn in 2025

Developing countries

implement ICT strategies

National broadband strategies of

Malaysia and Thailand

ICT strategy of Cameroon and

Rwanda

Digital Agenda of Mexico

Digital Agenda of Chile

National information society plan of

Argentina

Computers for All program of Brazil

…

Europe Horizon 2020

Singapore Smart Nation

Australia National Broadband

Network

…

ICT strategies of developed

countries and regions

HUAWEI TECHNOLOGIES CO., LTD. Page 3

ICT Enables the Fourth Industrial Revolution

Following mechanization, electrification, and automation, we have reached the doorstep of the fourth industrial revolution

– Intelligentization. Intelligence is embedded into everything including business processes.

ICT technologies such as mobility, Cloud, Big Data, and IoT form the foundation of intelligentization.

Mechanization Electrification Automation

Intelligentization

Everything is intelligent

Everything is connected

5G Cloud Big DataIoT

App App App

New Business Processes

Office Automation

1980-1995

ICT Stage I

1995-2010

ICT Stage II

Core Part of Production Systems

2010-2025

ICT Stage III

New ICT Era Is Approaching…

HUAWEI TECHNOLOGIES CO., LTD. Page 5

Enter into the Shift Age…Everything is Digital

Internet +

++ Internet

Online Digital WorldVirtual World

OfflinePhysical World

Real World

BoundlessGlobal Village

Solve Problems with Internet Mindset

Improve Efficiency

Save Cost

A World with borders and

limited resources

Sharing economy

VS.

VS.

VS.

60 seconds

IT Cost:Big bank: RMB20-30Mid-&-Small: RMB100

2 hours or half day?

IT Cost: RMB 1

Global 500: Revenue Growth: 0.46%, EBITDA Growth: -14.7%

Traffic Jam

Application

and Services

ICT Infrastructure (Network + DC Infrastructure)

Basic Capability

service layer

E2E service orchestration

engine

Business Integration and End-End Process

O&M Tool Enterprise-oriented

Products

Consumer-oriented

ProductsOpen API

Pla

tfo

rm

La

ye

r

Ap

plic

atio

n

laye

r

Self-operated

Services

Third-party

Services

ROADS = Real-Time, On-Demand, All Online, DIY, Social

Big Data Suite

Collaborative Innovation

Business Agility

Enterprise User

(Administrator)Carrier Partners Consumer Enterprise User

(Employee)

New Ecosystem for Digitalization Transform

Digital Control Rules Loop

4 Main Streams

3

2

4

1 Online: User Stream

Online: Data Stream

Online: Money Stream

Offline: Goods Stream

HUAWEI TECHNOLOGIES CO., LTD. Page 7

Page 7

Digital Society Model Development

To facilitate sharing platforms

To facilitate communications

To access

entertainment

Video

Music

Gaming

…….

To access

information

News

Jobs

Sports

…….

To access

utilities

Gov’t services

Health

Education

…….

To engage

in business

e-Commerce

Banking

On-Line

Services

…….

Content foundation Stage

Network Effect Stage

Monetization Stage

Content Diversification Stage

1

2

3

4

Digital Content and Services Ecosystem Digital Ecosystem Maturity

HUAWEI TECHNOLOGIES CO., LTD. Page 8

Decrease

Price

Promote

Supply

Demand

Experience • ICT investment/GDP

• Infrastructure

• Regulation and Policy

• ….

• Broadband Download Speed

• Local Content Statistics

• Access Statistics of

International Export

• ….

• Voice , SNS , Web , Picture , Video

• City Safety , Education , Health , Media

• Electricity, Oil&Gas …

Synergy of Three Factors Drives ICT Development

HUAWEI TECHNOLOGIES CO., LTD. Page 9

Global Average

Cloud % of ICT budgets 0.7%

eCommerce per GDP 11.8%

App downloads per capita（number） 8

Fix broadband density (Subscription per 100

inhabitants)10.3

Mobile broadband density (Subscription per 100

inhabitants)37.2

Demand

Source: Huawei GCI 2015 , ITU-T(2015)

Demand has gradually become the main driving force of ICT development, especially for the

construction of data center, cloud and application

Industry Transformation

Service Innovation

Affordable & Digital Literacy

1

2

3

HUAWEI TECHNOLOGIES CO., LTD. Page 10

Encourage Vertical Industry to Digital Transformation

Ease of Doing Business, 1st for 7 consecutive years (2008–2014)

–The World Bank and International Finance Corporation

Source: Huawei GCI2015

Healthcare: 36 telehealth centers

SMEs: 5,000+ SMEs use iSPRINT

eGov: 400 government e-services (98%)

Education: 100% schools covered, 50

applications

Finance: Nationwide NFC payment,

30,000+ payment points

Singapore

0.02%

Global

0.01%

Cloud Service

Provider

Spending / GDP

Singapore

544

Global

156

IoT Spending per

Capita

Singapore

78.1

Global

15.4

Datacenter

Spending per

Capita

11HUAWEI TECHNOLOGIES CO., LTD. Page 11

Drive Service Innovation by Cloud&Big Data

Operation Efficiency

Contact group

Internal friends: 12

External friends: 8

Contacts: 65

APP

App preference: finance,

video

Favorite apps: Zaker,

Facebook, …

Warning

Deregistration rate

warnings: 8

Complaints: 6

KOI: warning

Basic features

Gender: male

Age: 38

Occupation: unknown

Terminal: smartphone (iPhone5)

Time features

Time preference: 10:00, 16:00

Weekend preference: none

Location features

Traveling: yes

Location: city

Activity city: Guangzhou,

Hongkong

Telecom features

Remaining contract validity period:

8 months

ARPU: 58 yuan

Traffic: 533 MB

Comprehensive value: level 4

Public Service Innovation

Business Innovation

HUAWEI TECHNOLOGIES CO., LTD. Page 12

Incentive Policies Enable Affordability and Digital Literacy

User Tax

Affordability & Digital Literacy

Skills Training

Internet Community

Source: National

Broadband initiatives

in Malaysia, 2010

-MYR3,000 sales tax

exemption on purchases

of computers every year

-MYR500/year tax

exemption when buying

MYR68/month broadband

services from 2010~2012

Training for government

officials, teachers, soldiers,

students, and prisoners.

- 246 community

broadband service

centers in the country

- Electronic counters in

105 aboriginal

neighborhoods

HUAWEI TECHNOLOGIES CO., LTD. Page 13

Experience Improves in Three Ways

Experience

Global Average

Average FBB internet speed(Mbps) 23.3

Average MBB internet speed(Mbps) 12.4

Customer service rating 4.18

Source: TeleGeography (2015)

User experience depends on the speed and content

Speed

Rich Content

Localization

1

2

3

HUAWEI TECHNOLOGIES CO., LTD. Page 14

Technology Evolution Enables Gbps Experience

4.5G Gbps

LTE-A

300Mbps

LTE

150Mbps

…

3G

Mbps

2G

Kbps

Fiber

Cable

Copper

GPON, 10GPON

DOCSIS3.0-800M

DOCSIS3.1-4G

VDSL-100M

Supervector-300M

G.fast-1G

VS

HUAWEI TECHNOLOGIES CO., LTD. Page 15

Expand Supply by Government Collaboration and Increase Investment

Supply

Global Average

ICT Spending per GDP 3.3%

Fiber to the Home (FTTH)

penetration %13

3G Coverage (population %) 82

Source: Huawei GCI 2015

Broadband has become a basic right and need. Increasing investment in infrastructure will

effectively promote the ICT development index.

Investment: public interest , ROI

Fiber: ROW, sharing

Spectrum: Cost, Planning

Site: Collaboration, sharing

1

2

3

4

HUAWEI TECHNOLOGIES CO., LTD. Page 16

Government

Promote National Broadband by Government

Funding Collaboration Standards and

Regulations

• Malaysia: Government

subsidy

• Cameroon: Commercial

loan

• China: Department of Housing

published mandatory

regulations on FTTH access

for new buildings

• US: "Dig Once", one trenching

within a certain time

• Kenya: shared

infrastructure, government

tax subsidies

• Sweden: allowing

electricity, gas and other

utility companies to build

fiber networks for rent

HUAWEI TECHNOLOGIES CO., LTD. Page 17

Five Technologies Facilitate ICT Development

Potential

1

2

3

4

5

Broadband

Data Center

Cloud

Big Data

Internet of

Things

18HUAWEI TECHNOLOGIES CO., LTD. Page 18

MobilityEnvironment

Nation Development Strategy

Governance Economy People Living

Talent FundingRegulation Technology

National Data Center(Cyber Security)Broadband

IOT PlatformCloud ComputingBig Data

M2M Network

Accelerate National ICT Development Strategy Realization

ICT Infrastructure

Copyright©2016 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.