Convergence

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Convergence Shared Infrastructure A
Perspective By Gautam Sharma HUAWEI
TECHNOLOGIES
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I. Telecom Industry Evolution
Transformation II. Our Outlook Preparation
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Business Operation Models Face Transformation
How should operators and equipment suppliers
adapt to a more customer-focused business
operation model?
Service-focused
Network-focused
Customer-focused

• Network layout
• Technology updates
• Homogeneous services

• Service Marketing provisioning capability
• Customer Focus
• ARPU

• Converged network
• Converged services
• Industry chain re-structuring
• Integrated information services

The 21st century Network
Mid and late 80s
Mid and late 90s
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Change of Revenue Structure
Diverse contents services and their short
lifecycle makes time-to-market critical.

Content services for consumers
IT services for business users
Voice(Including mobile)
1980 Voice operation
2002 Transformation
2010 Non-voice operation
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• I. Industry Transformation
• II. Our Outlook
• Preparing for rapid service roll-out
• Preparing for network convergence and service
  transformation
• Preparing for value chain transfer
• Enabling sustainable growth

www.huawei.com
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Customer need quickly addressed through product
roadmap.
Marketing organization has shifted to the
frontier, whichallows customer needs to be
quickly transferred into a product roadmap
through CCM (customer commitment
management).ensures rapid roll-out of new
products and services.
Analyze and validate
Collect
Marketing
Customer
Taken into product roadmap
Follow-up and carry out
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RD Based on a Shared Platform
Constructing a speed, quality and cost
advantage, through modular structure,
standardization and sharing technology.
Uniform operation and maintenance platform
IPOptical platform
Fixed access platform
Wireless access platform
Service control platform
Intelligent network platform
Terminal service platform
Common software and hardware platform
Uniform engineering and material development
platform
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• I. Industry Transformation
• II. Our Preparation
• Preparing for rapid service roll-out
• Preparing for network convergence and service
  transformation
• Preparing for value chain transfer
• Enabling sustainable growth

www.huawei.com
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Future Network Architecture - Simplified
Key FeaturesConvergence, Mobile, Broadband,
Content Service
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Future Technologies Research
Establishing laboratories to research FMC, IMS,
WiMAX, IPTV, and other innovative technologies,
riding the future trend of network convergence
and service transformation.
Business Operation Support System
Personal App Platform
Single billing, multi services and tariff package
GSM/UMTS/ CDMA/WiMAX
Bearer Layer
Service POP
Mobile Access
Service Control

• Metro
• IP over WDM
• MPLS
• IPV4/IPV6

• BRAS
• GSN
• WSN
• MG

ICT Platform

• IMS core
• (CSCF/HSS/)

Fixed BB Access
xDSL /FTTx/ Cable/WLAN
Media App Platform
Operators Organization Support
Network oriented to customer oriented
FMC solution
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Protecting Customer Investment

• Smooth network evolution strategy to protect
  customers prior investment
• e.g. shared hardware platform of R4 and R5
• Shared network platform and flexible service
  extension to lower the cost for constructing and
  operating a new network
• e.g. GSM, WCDMA, CDMA and core networks of fixed
  network use the same hardware and software
  platform
• Maintaining heavy investment into RD of
  traditional products and continuing to optimize
  and lower costs.
• e.g. maintaining investment in GSM, access
  network, optical network, etc.

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Helping Customers Lower Operation Costs
Huawei rolls out fitting solutions based on
customers OPEX situation
UMTS OPEX(Average in Europe)
Huaweis OPEX-saving Solutions

• Power Supply Saving
• New Generation NodeB
• Rental Saving
• Distributed NodeB Solution Ultra-coverage
  Technology
• OM Saving
• Softswitch Architecture CN
• Large Capacity Products

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• I. Industry Transformation
• II. Huaweis Preparation
• Preparing for fast service roll-out
• Preparing for network convergence and service
  transformation
• Preparing for value chain transfer
• Enabling sustainable development

www.huawei.com
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Increasing Investment in Service Application and
Terminal
Providing abundant service applications and
terminals to help operators expand to the two
ends of the value chain.
IMPS
Web/WAP Surfing
Streaming
Service Applications
Mobile E-mail
LBS
MMS
M-RBT
Game
Terminals
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• I. Industry Transformation
• II. Huaweis Preparation
• Preparing for rapid service roll-out
• Preparing for network convergence and service
  transformation
• Preparing for value chain transfer
• Enabling sustainable development

www.huawei.com
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Continuous Growth

• Serving 28 of the worlds top 50 operators
• Strategic partner with BT, Vodafone, Telefonica,
  etc.

Contract Sales (USD1 billion)
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8.2
8
7
5.58
6
5
3.83
4
2.67
3
2
1
0
2002
2003
2005
2004
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Industry Position

• 3G
• World-leading wireless network supplier, 18
  commercial UMTS networks
• NGN
• No.1 in global VoIP market (Dittberner)
• Intelligent Network
• No. 1 in global market (21.6 of users)(Ovum)
• Optical Network
• No.1 in global LHMR DWDM market (Ovum-RHK)
• Access Network
• No.1 in global IP DSLAM market (Infonetics)
• No.1 in global MSAN market in 1H05 (Infonetics)
• Data Communication
• No.3 in worldwide service provider routers
  (Gartner)

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Full Audit by Key Operators

• Strategic Partnership Selection
• Auditing Concern Areas
• Management Systems
• Environmental
• Sourcing with Human Dignity
• Project Management
• Product Realisation
• Policy Strategy and Planning
• People
• Relationship Management
• Facilities
• Capacity
• Risk Management
• Qualification ( Auditing) Philosophy
• Strategy and Policy
• Process supporting
• Process Implementation
• Quality Control

• Completed Auditing Overview
• Motorola(2000-2003)
• BT (2003-2005)
• FT(2004)
• Vodafone(2005)
• O2 (2004)
• Cable and Wireless(2005)
• DT(2005)

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Enriching Life Through Communication