Day 1 C2C Summit July 2016 - Huawei- Building the NBN for National ICT

1. Building the NBN for National ICT
July 19th 2016. Pretoria
Nigel Bruin
e: nigel.bruin@huawei.com
linkedin.com/in/nigelbruin

2. 2
1st
3rd
2nd
Mechanization
Electrification
Automation
Internet of
Things
Industry applications
based on Big Data
4thIntelligentization
+
Data Algorithm
Broadband = socio-economic development

3. 3
Fast-changing world
Electric EconomyConnected Cars Smart Vehicles
Autonomous vehicles
worth £51 billion / year
in social & economic
value by 2030
Jan – Mar 2016, 30%
of new cellular
connections were
cars
April 2016, Japan has
more electric
charging stations
than petrol stations
Business Models
During Jan – Jun
2016, Uber completed
1billion rides

4. 4
Connect 2020: Drive households BB fast-growingHouseholds: 779M connected, 992M unconnected
10.7%
36.3%
40.3%
60.1%
60.0%
82.1%
6.7%
34.1%
46.4%
81.3%
Africa
APAC
Arab States
CIS
The Americas
Europe
LDCs
Developing
World
Developed
Percentage of households with Internet access
60%
households
90%
rural
population
30%
ITU:
Connect 2020
Decrease
CO2
More than 300M households will be connected by 2020
148
Countries with National Broadband Plans
About 1B Households are Unconnected

5. 5
Africa
Internet in Africa: Demand vs. Supply
82.1
60
60.1
40.3
39
10.7
81.3
46.4
34.1
6.7
Europe
Americas
CIS
Arab States
Asia Pac.
Africa
Developed
World
Developing
LDCs
77.6
66
59.9
37
36.9
20.7
82.2
43.4
35.3
9.5
29.6
18
13.6
3.7
8.9
0.5
29
10.8
7.1
0.5
People using the Internet (%) Fixed BB Subscriptions (per 100 ppl)Households with Internet Access (%)

6. 6
Africa’s generation opportunity
Voice Web Video
Connected Cars
Massive IoT
AR/VR
150Mbps
1Gbps
10Gbps
50ms
10ms
High Speed
Railway
Tele-operation
1ms
100B
30B
School
Hospital
Home
1 Gbps FTTH 10 Gbps FTTH TWDM PONADSLDial Up
2G 3G
4G
4.5G
5G
0  1
Deploy latest
gigabit access

7. 7
Broadband embedded into National Strategies…
Verticals
+ Internet
Entertainment
Industry &
Manufacturing
Transportation
Banking
& Finance
e-Commerce
& Retail
Agriculture Smart Grid
Health
Education
Restaurant
&Travel
Internetization
42
85*
47
72
USA：Advanced
Manufacturing
Brazil: “Branden
Info Tech”Plan
China: National
Broadband
Korea: K-ICT
Malaysia
Smart Country
44
71
Germany/EU:
DAE2020
Nigeria: National
Broadband Strategy
31
* Figures from GCI 2015 ( Global Connection Index)
ITU 2020 Target
100%
50%
60%
40%
-- Infonetics Research
1Gbps
50Mbps(Common Cities)
(Developed Cities)1Gbps
(50%)100Mbps
(VDF/etc.)
Giga Access Plan
Digital Europe 2020 China NBN 2020
National broadband plan or strategy
Households in developing world
Internet penetration in developing world
of the respondents plan to offer Gbps broadband access by
2017

8. 8
Job Creation
10% increase in digitization
unemployment rate decrease 0.8%
Environmental
BB reduces greenhouse gas
emissions 5%
Reduce energy consumption and
business travel costs
GDP growth
For every 10% increase in digitization
GDP per capita increase by 0.6%
Better Lifestyle
Every 10% increase in digitization
Better Life Index increased 1.29%
National Competitiveness
For every 10% increase in digitization,
innovation index increases 6.4%
Smart
ICT
Source: Huawei Consulting Analysis
Pressure to build the Digital Economy

9. 9
e-Public Services
Government
Convenient
e-Government
NBN Network e-Tourism
Government Hotline
e-Registration
Department Collaboration
Public Security
e-Educatione-Payment
e-Customs
e-Park
Emergency Command
Smart Traffic
Document Exchange Management
Civilian Service
Government e-Portal
e-Healthe-Taxation
e-Licensing

10. 10
Friendly Policy &
Regulations
Infrastructure
Synergy
Innovative
Tools & Solutions
£1.2B subsidy for rural BB
"Fiber from the home"
20% Cost Saved
"From Burial to Aerial"
14% ODN CAPEX Saved
Road
Railway
Crude oil
Natural gas
Electricity
Motorway
8000 km Fiber Network
Product Innovation
Mini OLT, Dual mode ONT…
Engineering Innovation
Micro-trench, Fibre Blown…
Management Innovation
Standard Operating Procedure,
Subcontractor Training…
"Telco first“
as ICT new Target, break LLU in 76 cities
Investment
Stimulation
Cost
Reduction
Egypt
Grant new fixed license
Activate stagnant market
Poland
Government Leadership
UK
China
Spain

11. 11
Foundation
A
R
P
U
Values
Revenue Growth Engines & Key Concerns
2. Cloud 3.IoT
MBB
FBB Voice + Data
>>>
Smart HomeSmart City
Experience
Cost
Concerns
Partnerships

12. 12
CO ONT
Homes Connected
High Cost of Civil Works
FDT / Closure
Low Efficiency = Labor Cost
DP
Source: XXX FTTH project in Africa, 456USD / HP
Operator “T”
Only 6% HC Success Rate
 Hard to enter the home
 Lack of technician & useful tools
 Non-standard Engineering Procedures
Homes Passed
Managing costs is key to greater take-up
62.6%
26.0%
11.4%
Civil Works Project Management Materials

13. 13
3~4km 2~3km
Low Density
Last Mile Rental
Land Privately Owned
Engineering Installation
Challenges to finish the last fibre mile
Rural / Semi-rural Scenarios
30
90
180
xDSL FTTx/VD FTTH
(days)
Time to Deploy
Commercial Viability of Coverage by Technology
NetPresentValue(NPV)(Euros*000)
LTE FirstFTTx First
0% 20% 40% 60% 80% 100%
Population Coverage
Cost to Deploy
FTTH FTTC
LTE
Government
Stimulus Point

14. 14
Rural
Sub-urban
Dense Urban
Data Source: ITU
（Household
Density）
38.3% 36% 35% 26% 23.5% 14.4% 11.5% 11% 10% 4.5% 4% 2.6% 1.4% 1.3% 1.2% 1.1% 0.4% 0.2%
Norway Germany Canada Australia Italy China UAE Brazil Saudi Oman Algeria Sri Lanka Kuwait Philippines Indonesia India Cote d’lvoire Nigeria
Speed Up Subs Increase
Fast TTM
Shorten ROI
WTTx & FBB = Broadband Development
Philippine Globe: WTTx+ MBB CMCC Jilin: WTTx + MBB Canada Xplornet:WTTx in Rural Etisalat : FTTx + WTTx
Brazil SkyTv: WTTx for MSO Nigeria Swift: WTTx for ISP Greece Intracom: WTTx NBN Saudi STC: 4.5G in WTTx
Many Reference Cases

15. 15
Policies: 6 proven ways to develop NBN
FAVOURED PPP MODEL
Attract Private Sector
Participation
STATE FUNDED SUBSIDY
Financial Subsidy on CAPEX
Investment.
Digital divide.
DEMAND STIMULUS
MEASURES
Promote Broadband Utilization
ENCOURAGE COST
REDUCTION
Network Sharing,
CLEAR BROADBAND
POLICIES
Guiding broadband Objectives
and NBN Rollout Plan
MANDATE OPEN ACCESS
State intervention to Promote
Competition

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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.
Nigel Bruin
e: nigel.bruin@huawei.com
linkedin.com/in/nigelbruin