Network Service Provider Transformation

Trends and the Enabling Technologies

Wing Kin Leung

CTO, Huawei Enterprise

May, 2016

2

Core Network Re-Architecture 1

Access Network Evolution 2

References 3

About Huawei 4

3

Core Network Re-Architecture: The “Four Trends”

DC Centric

Independent DC/DCI

SDN Enabled Backbone

Re-Architect via

NFV@Aggregraton &

NFV@Edge

+ Bandwidth Evolution

Cloud-based

Business

Cloud-based

Network

Telco

Cloud

Public Cloud

Telco Cloud

Enterprise Cloud

IOT, Big Data, 4K, Game, etc.

Cloud Service

Enterprise Cloud

Desktop

Personal Cloud

Desktop 4G/5G

Network Cloud

vCPE vEPC vCDN vBRAS

Web Service

Home

Enterprise 2G/3G

Core

Metro

Access

Architecture Changes

4

“DC-Centric”: Basis for Network Re-Architecture

•East-to-West Traffic explosion

•Matching DC location and vDC

•Less latency, synchronization

DC-Centric

&Intensive Control &TTM &Open &Cloud and Network Synergy &Agile &Resource Sharing

•4K, desktop cloud, 5G

•NFVI, cloud & network

synergy

Experience CO re-Arc

•Service classification

•Latency and bandwidth

•Cost

Efficiency 3 Layer DC

Interconnecting DCI

5

DC-Centric: 3-layer DC Layout

Principe of 3-layer DC Layout: Experience-based Circle and Function-based Circle

Super

DC

Super

DC

Large DC Large DC

Mini DC Mini DC Min DC Min DC

Core DC

Regional DC

Local DC

Province A Province B Region C

Metro A

Large DC

Metro A Metro B Metro C

30ms

50ms

100ms+

vCDN

Desk & Enterprise

&Network Cloud

Public Cloud

Service/Hosted

Cloud/Web

20KM

300KM

300+KM

1ms

Network

Application

Experience-based

Circle Function-based

Circle

Resource sharing,

centralized

deployment

Data Plane

NFVI

5G/IoT

Application Localization

latency-sensitive

services

Network: Control plane

6

Simplified: Less is More for DC Centric Model

Web Dominated

PE

CR

ME2

ME1

BRAS

Video Dominated

CR

CO

BNG

Less layer for more saving More aggregation for less cost

16:1 2:1

7

Independent DCI for DC Interconnecting

Region-DC

C-DC C-DC

Region-DC

Region-DC

Region DC Pool

DCI Core Node

DCI Core Node DCI Core Node

DCI Core Node

DCI

Access Node DCI

Access Node

Region-DC

DCI Access Layer

Region DC Pool

DCI Core Node

DCI Core Layer

New Requirements

•Core layer FULL MESH solve west-east traffic burst issue

•SDN-based RR+/PCE+ traffic optimization

•Higher Capacity，lower power consumption

•SDN-based CloudVPN Solution

•Match DC deployment principle (physical location) and traffic distribution

•Meet the real-time synchronization / disaster recovery needs

•East-west traffic bursts, difficult to predict changes

•Cloud inter-connection / cloud access / cloud leased line scenarios.

Region-DC

Driven Force

8

SDN for IP Bandwidth Optimization

Agile Controller

P

P

P DC 1

DC 3

PE 1

PE

DC 2

CE

CE

PE

CE

P

DC 4

PE

80%

10%

-Supports the GUI.

-Computes paths based on multiple constraints.

-Flexibly defines SLA.

-Controls users traffic in a refined way,

improving interconnected resource efficiency.

Intelligent traffic scheduling

•PCE -> PCE+

•RR+ as an option for Enterprise

9

SDN Enabled for the “2 Planes”

Optical

R

R

R R R

R R IP

MS-OTN

MS-OTN

MS-OTN MS-OTN

MS-OTN MS-OTN

IP PCE

T-SDN

IP + Optical

SDN Controller

IP Controller

Optical

Controller

•IP Layer Protection

•RIP

•OSPF

•Optical Layer Protection

• Optical ASON

• Electrical ASON

•SNCP

Resource Dynamic Allocation,

Service Orchestration & High Availability

• From 100G -> 400G/1T

• 20T+ OXC per Chassis/100T+ per Cluster • From OTN -> MS-OTN for Service Convergence

•T-SDN for IP/Optical Convergence

Optical Development DC Centric

DWDM

10

Optical Backbone Network Development：Beyond 100G

Flex OTN in 2015

400GE in 2016

400G

100GHz

Standard Processing

[July.2013, Chile]

Industry 1st 400G OTN

Commercial Application

25+ 400G Field Trial

Baudrate Baudrate

Nyquist FTN

FTN solution

400G

100G/

50GHz

400G

FTN: Faster than Nyquist 400G WDM start

Industry short haul 400G

2SC-PDM-16QAM@600km

Spectrum Width < Baud Rate

ULH / Single carrier 400G

1SC-PDM-16QAM@800km

2SC-PDM-QPSK@3000km 200G/

100GHz

Standard & Industry Mass Deployment Technology Innovation

11

IP Core Development--Big Data Era Demands 400G/1T+ IP Core

Perfect

Experie

nce

8K UH

4K SHD

FHD SD

New Service Drives Bandwidth Growth

high definition

high responsiveness

64K~4M: internet 10M: HD 300M: 8K UH 4M: SD

Bandwidth Assessment by IEEE

400G~1T

• Massive 100GE ports are being deployed worldwide.

• Declining per bit cost stimulates the deployment of

dense 100GE.

Cloud DC Cloud DC

Cloud DC

Excellent Poor

Cloud

Service A

Cloud

Gaming

Cloud

Service Z

Super Core

12

Challenges of VPN Provisioning

Delivering work orders to service

departments

1

day

Feedbacks from multi

departments.(IT&CT, multi-

vendor, multi-regional)

10

days

Summarizing results of the

analysis, getting E2E service

ready

4

days

Delivering work

orders to engineer

1

day

Waiting for engineer

schedule

5

days

On site service

installation

1

day

Delivering work

orders to engineer

1

day

Waiting for

engineer schedule

5

days

On site service

checking

1

day

Ordering a VPN

service at office

1

day

Workflow

Details

Tenant ordering

CPE install CPE delivery Fiber checking

1 day 15 days 7 days 7 days

Provisioning

Time

(Operator B)

Solution unrelated preconditions ：

Fibers ready

CPE delivered

Challenges Multi-vendor devices management

IT & CT resources orchestration

Multi-domain resources process

No tenant portal Need on-site service Need on-site service

E2E service getting ready

（MPLS, IP VPN..）

Device configuration and

service provisioning

Service monitoring and

customer signoff

30 days

13

Leveraging SDN for Provisioning: From Days to Minutes

Delivering work orders to service

departments

1

day

Feedbacks from multi

departments.(IT&CT, multi-

vendor, multi-regional)

10

days

Summarizing results of the

analysis, getting E2E service

ready

4

days

Delivering work

orders to engineer

1

day

Waiting for engineer

schedule

5

days

On site service

installation

1

day

Delivering work

orders to engineer

1

day

Waiting for

engineer schedule

5

days

On site service

checking

1

day

Ordering a VPN

service at office

1

day

Workflow

Details

Tenant ordering

CPE install CPE delivery Fiber checking

1 day 15 days 7 days 7 days

Provisioning

Time

(Operator B)

Solution unrelated preconditions ：

Fibers ready

CPE delivered

Challenges Multi-vendor devices management

IT & CT resources orchestration

Multi-domain resources process

No tenant portal Need on-site service Need on-site service

E2E service getting ready

（MPLS, IP VPN..）

Device configuration and

service provisioning

Service monitoring and

customer signoff

30 days

14

NFV technology drives next generation networks

NG PoP to achieve FMC

Network function virtualization Network 2020

SDN/NFV enabled network

architecture to achieve device

reconstruction and cloud-based

network function Domain2.0

POP re-architecture with NFV

cloud-based, unified resources

NG network

New Operations

Centralized control, flexible scheduling,

Maximum utilization of resources

Benefits

New Architecture

Software, virtualization, programmability

New Services

Open & agile, on-demand service

NFV leads to network cloudification, promoting an intensive and efficient network

15

POP Re-architecture: the 1st step of NFV

Unified bearer network

Higher service capabilities

Challenges

100K+ FBB users

100K+ MBB users

100+ enterprise tenants

POP：N1

AT&T: 62% CO reduction

Less CO sites POP Re-architecture with NFV：

• Virtualization: BRAS, VAS, CPE to be Centralized control

• Unified deployment of VNE: to promote POP transition to DC

• Unified cloud resources ：universal bearer of ICT resources

NFV Roadmap

Commercial

value

Difficulty to implement

OLT

High

Low

High Low

VAS

IP CORE

IMS EPC

OTN

Control

Service

CPE

CDN

BRAS Bearer

Cloudified Architecture

VM resource sharing

Resource flexible allocation

16

CloudEdge：POP Re-architecture with NFV

Flexible allocation of resources

& intensive control

To enable auto service provisioning To promote smooth network

evolution

Enterprise (vE-CPE) Cloud value-added service Cloud Edge GW(decouple

NFVI) Residential (vBNG)

Residential

• vBNG

• vCDN

Enterprise

• Firewall

• Anti-Virus

• IDS/IPS

• vE-CPE…

UE INT

ER

NE

T

Residential

OLT Residential

Enterprise

POP

CloudEdge GW

vE-CPE vBNG

NFVI

VAS

VNFM

Netmatrix

VIM SNC U2000

APP/Portal

IP

Backbone

17

Control Point Sinked to Edge for Cost Saving

Low Cost：Save leased line fee Easy OAM：Fast TTM, No Broadcast Storm14

10K×50×4Mbps ＝

200Gbps 100×50×4Mbps ＝

2Gbps

User N × channel × BW

PP

PoE

PP

PoE

CO N × channel × BW

BRAS

miniBNG miniBNG

L3

VLAN add in all CO sites VLAN add only Local CO

L2

VLAN100

VLAN100

VLAN100

New User

VLAN100

New User

miniBNG

BRAS

miniBNG

18

Re-Architecture via NFV also @Customer

All network functions on Premise with multiple

devices :

Management;

L2 functions(DHCP/Switching/etc.); Routing

Firewall; WOC

Thin CPE Thin CPE

PE

PE

IP CORE

PE

Traditional CPE

Internet

NFVI-

POP

PE

ICT Gateway

A. CPE@Customer

Premise

B. CPE@CO C. CPE @Customer DC

Branch Branch

CloudCPE deployed at

various locations

CloudCPE

Branch

Branch Firewall WOC

All network functions on Premise with

One devices :

L2 functions(DHCP/Switching/etc.)

Routing; Firewall; WOC

Network functions gradually to the

cloud :

Centralized automation management

Firewall/IPS/etc.

Network functions to the cloud :

Centralized automation management

DHCP/NAT/Routing/etc.

Firewall/IPS/etc.

①

②

③

④

CloudCPE

CloudCPE

Centralized Corporate IT

Infrastructure

19

NFV@Customer Premise enables ICT-in-a-Box

Switch Voice

gateway Firewall Router Computing

unit

Storage

resourc

e

Mail server Video

accellerator

Extended from Networking to Computing and …

Virtualization via NFV AR Hardware Platform (x86 & ARM)

Linux

KVM

Virtual

Machine

Linux

Guest OS

Virtual

Machine

Windows

Guest OS VRP Android

Linux

Applications Windows

Applications

Android

Applications

Linux

Applications

APPS @Edge Software Architecture

20

Industrial IoT as the New Market for Access

NVF@Edge plus Hardware Specialization

Adapted to Application Requirements

• Capacity

• Type of uplinks/downlinks (Ethernet, xDSL, WiFi,

GPRS/3G/4G, PLC, Zigbee, RS232/485, etc.)

• Number of uplinks/downlinks

• Indoor vs. Outdoor (Office used vs. industrial Platform）

• Type of CPUs (ARM, x86)

• Operating Systems (KVM, Android)

• Special accessories (Video Surveillance, Video/Audio

Output, USB, etc.)

NFV/Virtualization available

With optional User Applications loaded

Choice of Hardware

21

Integrated Solution with Cloud, SDN & NFV

For Zero-Touch Service Orchestration, Deployment & Management

Application

Software

Warehouse Switch Voice

gateway Firewall Router Computing

unit

Storage

resource Mail server Video

accellerator

Extended from Networking to Computing and …

Resource

Management

Via SDN

Resource

Virtualization

Via NFV

System

Software

Warehouse

Intelligent Gateway with APPS

on Different Form Factors Cloud based Data Center SDN Controller

22

Core Network Re-Architecture 1

Access Network Evolution 2

References 3

About Huawei 4

23

From Pipe to User Experience

4K/8K Video

Smart Home

HD Voice 1M

10M

100M

1G

Gigaband

U-vMOS

HTR

ROADS

e-Payment

24

From Broadband to Gigaband

Redefine Broadband

25M

300M

Redefine Ultrafast

Broadband

300M-1G

Gigaband world

is coming

Bandwidth

Coverage

Experience

~1Gbps

~90% coverage

25

Faster than Faster

Copper

FTTH

Moblie

WIFI

NG OLT IP + Optical / Fiber Backbone/DCI

1T/2T 100G/400G 10G/WDM-PON

ETTx

1. xDSL: SuperVector/G.fast

2. Fiber: 10G PON / TWDM-PON / XG2-PON

3. Coax: DOCSIS 3.0 / DOCSIS 3.1, towards Distributed

4. Wifi: 2.4G@11a.b.g / 5G@11ac, from Wave 1 to 2

5. Ethernet: 1/2.5Gbps to Desktop, 10/25/40Gbps to Server,

40G/100G as Backbone

1. IP: 100G/card ->400G /card->2T Router

2. Optical: 100G OTN->400G OTN -> 1T OTN

3. System: 25T+ /rack -> 50T+/rack -> All-Optical

SDN / NFV Enabled

@Giga

26

Innovations Drive Giga Access

• Giga Fiber: GPON => 10G PON(XG(S)-PON) => 40G TWDM PON

• Giga Copper: Vectoring => G.fast

• Giga Coax: DOCSIS3.0 => DOCSIS3.1

1G

100M

10M

ADSL2+ DOCSIS3.0

Vectoring

GPON

10G PON

802.11ac

DOCSIS3.1

G.fast

40G TWPON

100Mbps

1Gbps

5GBB

10Gbps

27

PON Evolution：GPON->10GPON->40GPON

GPON

2.5G/1.25G

100~200G TWDM PON

4*25G or 8*25G

2007 commercial 2012 commercial standard：2016.H1

commercial: ~2018

standard：>2017

XGS-PON

10G/10G

Standard：2016.Q1

Trial in 2016.5, commercial in

2016.H2

40~80G TWDM PON

4~8ch/10G for 1ch

XG-PON

10G/2.5G

100M~1G/user 10G+/user

28

Implementation Considerations @Aggregation

Large Aggregator

• Non-blocking all 4K/8K users online

• High capacity and distributed structure

• U-vMOS to monitor video QOS

Ultra Broadband

• 10G PON, TWDM PON, WDM PON

• GE/10GE, and 100GE in future

• Any media access aggregator

Efficient management

• Virtual access for different ISP

• Centralized management

• Support SDN/NETCONF in future

GPON

XG-PON

TWDM PON

Home

Office

Move

RRU

NG-OLT MA5800

ISP1

ISP2

ISP3

Office

TWDM PON

FTTH

FTTD

FTTB

FTTC

D-CCAP

20km 5km

Copper Fiber

• Exchange closure with wider fiber coverage

• Common NG-OLT for all FTTx solutions

29

Implementation Considerations @Line Card

XG-PON XGS-PON TWDM-PON Flexible NG-PON

All in One On-demand Protect Invest

3 in 1:

XG-PON : 10G/2.5G

XGS-PON : 10G/10G

TWDM PON :

4λ*10G/10G

3-in-1 Flexible NG-PON allows for Migration

30

Summary: Gigaband Telecom Network Towards ROADS

Metro Backbone

Access

Cloud CO Cloud Edge APP/Service

Edge DC Core DC

Telco OS

Time Delay Driven Cost Driven Bandwidth Driven

CO DC

Copper

Fiber

Mobile

WIFI

ETTx

Ultra-Fast

Giga Fiber / Copper / LTE / Wi-Fi

E2E IP+Optical 100G Beyond

Simplified

No Congestion, Lower Concentration Ratio

Legacy Consolidation, Flattened Hierarchy

Agile

SDN / NFV Enabled

Telco OS

31

Summary: E2E Visual O&M of U-vMOS: uTraffic + IPFPM

CR ONT OLT AGG BNG

Lv2 CDN

CR/HTR

Lv1 CDN

STB

U-vMOS

U-vMOS Monitoring Center: Real-time monitoring of U-vMOS

uTraffic: Restore low U-vMOS user path, deploy IP FPM based on real traffic

IP FPM: Locating problem hop by hop by the result of port traffic, latency and packet loss

1

2

3

U-vMOS Monitoring

Center

uTraffic

32

Market leader with End-to-End & All Access Solutions

BRAS RADIUS

IP Core Router

OLT HSI

NMS

North Bound

interface

Service Management

Platform

Service Provisioning

System

notice

IPTV

phone

HSI

ONT

Modem DSLAM

ONU

E1/GE

Splitter

LTE

RSP CPE NSP

ODN

voice

video

Datacenter

Splitter

HSI

phone ONU CM

Coax

AC

Mobile devices POE

Residential

area FTTH

Copper

Speed

acceleration

CMTS

Ethernet

/WIFI

LTE

All types

Of

Access

End-to-End

Intelligent

@Edge

IoT

All Access

33

T-SDN based WDM/OTN Product Family of Different Sizes

From Backbone to Metro, E2E WDM/OTN

OSN 1800 II/V OSN 1800 V/8800 OSN 8800/9800

CPE

3-Play

Splitter

WiFi

CR/MGW/RNC AR/BNG

T-SDN Controller

Storage,

Video

From Small to Large

34

SDN Ready IP Product Portfolio – Router/BRAS

NE5000E B2B/Cluster

CX600-X3

NE40E-X3

ME60-X3

CX600-X8

NE40E-X8

ME60-X8

CX600-X16

NE40E-X16

ME60-X16 CX600-X2-M16

300 mm

IP Platform

CX600-X1-M4

Converged IP/MPLS

Backbone

FMC Metro: CX600/NE40E Services Access

SA

Softswitch

Internet

Headend

GGSN

DSLAM

/FTTx

LSW

/E-FTTx

CSG Mobile

MSC Server

Firewall SingleMetro

Smart CO NPE

Triple Play (Residential)

VPN (Business)

SR

BRAS

Agg

Agg

RNC/BSC RSG

Core: NE5000E

Unified Mgmt., Visualized OAM (U2000, uTraffic)

S-POP: NE40E/ME60

CX600-X2-M8

CX600-X16A

NE40E-X16A NE5000E-X16A NE5000E-X16

ATN950C

ATN905

ATN910C

10GE/40GE Uplink 480G/Chassis 480G/Slot 1T/Slot, Scale to 2T/Slot 2+8 Cluster

ATN980B

From Small to Large

35

Switch Portfolio For Metro Ethernet – MAN plus Access

Specification S12700 S9700 S7700 S6700 S5700

Slot Bandwidth 640G 480Gbps 320Gbps - -

Port Density 576*10GE / 96*40GE /

24*100G

480*10GE/

96*40GE

480*10GE/

24*40GE

48*10GE + 4 *

40GE

GE up to 96

10GE up to 12

GE Access LSW 10GE Aggregation LSW T-bit Core LSW Agile Switch

Large Bandwidth：10G/40G/100G evolution Large entry：1M MAC,3M IPv4 FIB High Reliability：50ms ERPS/SEP

From Small to Large

36

Access Product Portfolios: Full Access of Different Sizes

MA5800-X17

MA5800-X7

Distributed architecture

200G /slot

GPON/10GPON/TWDM PON

HG8010H

1 x GE

HG8245H

2xPOTS+4xGE+

Wi-Fi

2xPOTS+4xGE+

1xRF+Wi-Fi

2xPOTS+4xGE+

2.4G/5G Wi-Fi

HG8247H HG8245Q

HN8245Q (10G PON ONT)

2xPOTS+4xGE+ 2.4G/5G Wi-Fi

FTTH OLT MA5600T

MA5603T

MA5608T

GPON/10GPON

Giga WiFi

Giga Copper

Giga Fiber

OLT BNG ODN

Gig Coax

Unified Architecture

Gigaband@AnyMedia

Copper (FTTB/C+DSL)

2U;192 Vectoring

MA5616 MA5623

1U; 48 Vectoring

MA5811S-DE16

16* G.Fast

Coax (FTTB/C+cable) MA5633

1. 32DS(1.6G)*8US(320M)

2. 32DS*10US @ D3.0

+ 2*192MHz@D3.1+2*96MHz@D3.1

37

Passive Optical Line (POL) for Campus Network The new market for PON

AgilePOL

Dual backhaul protection

Flattened layer

Point to multiple point passive

fiber splitter

1G/10G ONU plug&play

Multi-service access

Riser Closet

Data Center Core

Switch

LAN Switching

Aggregation

switch

Access

switch

ONU

OLT

POL Highlights

38

Driving CMTS to D-CCAP (Distributed Converged Cable Access Platform)

TV

STB

PC

TX

RX

CM

…

…

D-CCAP

OLT

CMC(coaxial media converter)

• CMTS module • Fiber Node • WDM • EQAM

IP

CATV

Central Site

CATV

VOD TS

IP

US

DS DATA

EQAM

CMTS

Co

mb

iner

CMTS

TV

STB

PC CM

…

…

WDM WDM

Fiber Node

EDFA&WDM

Remote Site

Central Site Remote Site

GPON/10GPON/

40PON

Fiber Coax

Splitter

CATV 1550 nm

US 1310nm

DS 1490nm 1:N

39

Enabled by In-House Solar Chipset

40/32 nm

1.6 w/G

96M Gate

• Four chips: eTM 3.0, NP 3.0,

SF2.0, and TM3.0

eTM3.0 NP3.0 SF2.0 TM(FIC)3.0

65/45 nm

4 w/G

40M Gate

• Four chips: ASE2.0, NP2.0,

SF2.0, and TM(FIC)2.0

ASE2.0 NP2.0 SF2.0 TM(FIC)2.0

130 nm

• Four chips: FIC1.0, PP1.0,

SF1.0, and TM1.0

FIC1.0 PP1.0 SF1.0 TM1.0

16 nm

0.5 w/G

200M Gate

• Three chips: NP5.0, TM5.0,

and SF5.0

R&D in 1999 and launching

in 2004

R&D in 2005 and launching in

2009 R&D in 2009 and launching

in 2012

R&D in 2012 and launching

in 2015

Time

More than 3 million chips are delivered.

Solar3.0 240G NP

Solar2.0 50G NP

Solar1.0 20G ASIC

Solar5.0 1T NP

40

Same in Optical: Investment on Silicon Photonics Chipset

Silicon Photonics chipset

(Alpha Sample)

Separated

Optical

Component

Light Source Guide Light Modulator

Photo-detection

2009.1

Master core Tech. of

integrated light source

Master core Tech. of

process compatibility

Master SiNx core Tech. &

thin silicon platform

2010.6

Master core Tech. of

submicron lithography

Beta sample of

silicon component

2014.6 Single channel silicon

component

Commercial

~2016

2015

2011.9

2013.8 Multi channel silicon

component

Commercial

High Integration

•70% space saving

Low Power, Low Cost

•60% power saving，40% cost saving

41

And the Industry-leading Network Operating System - VRP

2004 2006 2010 2012 2013

Centralized architecture

IPv4 service

SDN

Higher security

Open-flow

NFV

Open interface

Modular OS

10M Routing

Carrier-class HA

IP/MPLS Full Service

VRP V1 VRP V3 VRP V5 VRP V8 Pipe OS

Focus on innovation for 17 years

Multi-core& process

Intelligent resilience distribution

Unlimited routing

Equip. virtualization

Zero loss packet

Distributed architecture

Million routing

IPv4/IPv6 dual service

42

Core Network Re-Architecture 1

Access Network Evolution 2

References 3

About Huawei 4

43

Core Network Re-Architecture 1

Access Network Evolution 2

References 3

About Huawei 4

44

Company with Global Footprints

• 16 R&D centers, 79000+ R&D employees

• Global 1st largest patent applicant under WIPO in 2014

• 170,000+ employees with 160+ nationalities worldwide

• 15 Regional Headquarters, operations in 140+ countries

▲

▲

▲

▲

▲

Argentina Mauritius

Malaysia

Romania

China

■ ■

■

■

■

India

Hungary

Brazil

Mexico

■

Holland

UAE

■

◆

◆

◆

◆

Bahrain

Germany

R&D center

Huawei Headquarters

Technical support center

Accounting share center ▲

Supply center & Hub ■

Training center

Biding center (Planning) ◆

45

Company with Long Term Sustainable Growth

• Leading global ICT

solutions provider, ranked

228th in the Fortune Global

500 list for its sales revenue

in 2015

• 2/3 of revenue from global

market

• All three Business Groups,

Carrier, Enterprise &

Consumer, with Visible

Growth, Cross Leveraging

• Main contributor of industry

standards Huawei Technologies releases an annual report with consolidated financial statements

audited by KPMG. — From Huawei annual report audited by KPMG

81.8B >35% YoY

10

30

0

20

40

80

50

60

2016

2011

32.4B

2012

35.4B 39.5B

70

2014 2013

2015

Sales revenue (billion USD)

60.8B ~37.1% YoY

America

China

EMEA

Asia

Pac

Other

42.5%

32.4%

12.8%

9.9%

2.5%

37.8%

35%

14.7%

10.7%

46.5B 20.6% YoY

1.8%

46

Leading in Global Carrier Business Market & Technologies

Well Accepted by Operators Worldwide

Top 45 of 50 Market share of major products

Source: Dell'Oro, Infonetics, and Ovum

24%

RAN

No.2

21%

No.2

IP router

44%

No.1

Broadband access

21%

WDM

No.1

47

Huawei in Poland: Contribution to the local ICT Market

In 2008, Huawei implemented the 1st

TDD/FDD LTE 1800Mhz project in the

world in Poland.

In 2012-2014, Huawei won DWDM with

Polkomtel, Orange , Exatel,GTS in Poland

Thanks to the innovative technologies,

Polish consumers could get better services,

and faster access to internet.

Huawei is cooperating with many major

operators in Poland, Providing the latest ICT

solutions to the market.

In 2010, started to deploy Broadband

access network with Orange in Poland.

In 2013, Huawei finished 1st single carrier 400G

test in the world with Exatel .

In 2011, Huawei won Orange + T-mobile

wireless JV project, has deployed over

8000 sites in Poland.

In 2004, Huawei start

promotion in Poland

In 2006-2007, Sign Strategy contract with P4.

Win Orange CDMA and UMTS PROJECT

In 2015, Huawei made breakthrough in

P4,TMPL,PLK and Orange in IT area.First Test

of SDN in Polkomtel

In 2016, Huawei signed the DSLAM

frame contract with Netia

48

Solutions beyond Networking: E2E with Modular Approach

From Fix to Mobility

Safe City

Hosted SME

Media &

Broadcasting

Digital Train

Banking

Industry

Specific

AMI

From CT to ICT

From Managed CPE/

Security LAN/Voice/

WiFi to Managed User

Applications

Connected

Corporate Cloud Service Provider (CSP)

Co-Location

Hosting

Private/Public Cloud

SaaS/AaaS

On Demand Data Center

IaaS/STaaS/UCaaS/VCaaS/VDI/BYOD/etc.

From IT to Industry Specific IoT

Customization & Adaption via PaaS

Access Network

Branch: from Connection to APPS Network Service Driven Data Center Service Driven

Core Network

Plus

-Mobile Driven

-Specific Hardware Design

Plus

-Industry Specific Interfaces

-Specific Hardware Design

Managed Service Provider (MSP)

49

Success through Commit

R&D investment Standards and patents

Membership in 300+ international standards

organizations such as IEEE-SA、ETSI、

WFA、TMF、OpenStack、Linaro、OASIS

and CCSA

280+ positions in international standards

organizations

5,400 standards-related manuscripts in 2015

Standards

52,550 patent applications in China; 30,613

patent applications outside f China.

50,377 patent applications granted (by Dec

31, 2015). Patents

0

5%

10%

15%

9.7% 9.7% 11.6% 13%

2009 2010 2011 2012

14%

2013

USD $9.18 billion in 2015

79,000 R&D employees

16 R&D centers

Continuous increase in percentage of R&D

investment to total sales revenue

14.2%

2014

2015

15.1%

50

Engagement & Contribution to WDM/OTN Standard and Industry

OTN/WDM

45+ ITU-T proposals

9+ OIF PLL drafts

5+ IEEE drafts

2+ CCSA drafts

2007, 1st 10G/40G OTN

2011, 1st 100G OTN

2013, 1st 400G OTN

2015, Flex OTN:G709

Until 2014.11 Until 2015

1 ITU-T proposals

16 RFCs, 20+ WG drafts

2007, 1st WDM ASON

product

2008, 1st OTN ASON

product

2015 OSNR moniter :

G.697

Contributed 16+ standard

proposals

OTU4 for 100G in G.872

PDM-BPSK

OPFDM-RZ-DQPSK

RZ-DQPSK /Flex OTN

100G Tx EVM

Contributed 6+ standard

proposals

ODUflex in G.Hao

ODU3e2 in G.sup43

10GE LAN in ODU2e

ODU0/GMP in G.709

Amd 3

17 special report,

Including 4 Invited Talk

Chair of SG11 SDN WP(ITU)

Chair of Migration WG(ONF)

Stateful PCE(TSDN)(IETF WG)

Carrier WG Req. (OIF)

G.CSO(ITU)

Until

2014.11

ITU-T G.798.1

MS-OTN

T-SDN

Until 2015

100G& Beyond

ASON/ GMPLS

51

Leading In Access Standards Contribution

Fiber

Copper

Cable

Y2015 No.1 Contribution in ITU-

T Access Area

59

35

23

14 10

5

Submmited proposals

Accepted proposals

Huawei

A

ZTE+Adtran

Q4aChair

ALU

legacy DSL

maintain

ALU

PLOAM

BCM

Line test

Qualcomm

G.Fast

Huawei

Les Brown

Frank Effenberger Luo Yuanqiu

Q2 Chair

Huawei

XG-PON

Huawei, ALU, ZTE

NG-PON2

Huawei, ALU, NSN

G.Multi

Huawei, NTT

XGS-PON

Huawei, CTC , Adtran

Dekun Liu

Generic OMCI

Huawei, ALU

Lin Wei

IEEE802.3 Cablelabs

Duane Remein

Standards director

Chief editor 802.3bn

Hesham ElBakoury

Senior HFC system engineer

Cablelabs contributor

Participate in most of CableLabs projects：DOCSIS3.1, EPOC, DPoP, DCA, C-DOCSIS, SDN/NFV

SCTE

Jack Moran

SCTE Committee Chair

Huawei Cable team leader

52

Leveraging Talents Worldwide

Munich

San Diego

Silicon Valley

Dallas

Ottawa Paris

Moscow

Headquarters

Milan

Sweden

Shenzhen

Beijing

Shanghai Chengdu

Xi An Nanjing

Bangalore

Hangzhou Wuhan

Turkey New Jersey

Chicago

Next Generation Internet,

Chips, and Software

FMC, Fixed

Network

Microwave

Wireless &

Network

Wireless &

Device Advanced

manufacturing

Next Generation

Wireless

San

Diego, USA

Dallas Texas,

USA

Moscow,

Russia

Bangalore,

India

Munich,

Germany

Stockholm/

Gothenburg,

Sweden

Paris,

France

Milan,

Italy

Mathematical

Modeling

Component

Sourcing Tokyo

53

Engineering plus Scientific Research

Industry cooperation

Build market pie

Customer cooperation

Prototype

Technology leadership

Customer trial

Business oriented

Industry cooperation

Customer oriented

Innovation Standards Products/Solutions

Now -1 years -2 years -3 years -4 years -5 years

Basic

Research

Applied

Research

Advance

Development

Pre

Development

Commercial

Products

& Solutions Customers

•Requirements

•Strategies

Huawei

•Strategies

•Visions

Cu

sto

mer S

atis

factio

n 2012 Lab BG/BU R&D

Now -1 years -2 years -3 years -4 years -5 years

54

Summary

Engineering plus scientific

research

Solid R&D commitment

with 79,000+ R&D staffs &

>50,000 patents granted

Full range of competitive

products & Solutions

Well recognized by

market with proven result

Over taking on emerging

technologies

Continuing strength our

support to end users &

partners

A better

Technology

partner

THANK YOU

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.