Small Cell Forum MWC 2017 Sponsor Presentation: Huawei

1. Small Cell Industry Insight &
Experience Sharing

2. Huawei Technologies Co. ,Ltd| 2
8Mbps
2K
20Mbps
4K
175Mbps
VR
½ Screen
~1.05Gbps
Panoramic
2D VR
2.1Gbps
Panoramic
3D VR
upgraded service
AR VR2K/4K video
average 10 times traffic growth by 2020
70% from video
Source: GSMA & Huawei X LAB, Q4 2016
Mobile audio
Mobile video
Mobile file sharing
Mobile web/data
Exabyte per month
10
20
30
40
2014 2015 2016 2017 2018 2019 2020
0
70%
3.4EB
5.6EB
9.2EB
14.8EB
22EB
22EB
Insight 1: upgrade service drives mobile traffic to explode

3. Huawei Technologies Co. ,Ltd| 3
rich dedicated data packages boosting high
traffic in indoor
407
3433
Before After
Traffic(GByte)
Tencent & MNO U’s data package lead indoor traffic increasing
7X
Source : Sichuan. China 2016.12
Insight 2: urgent to improve indoor coverage and capacity
Event LocationAPP
New package base on
73.6
82.5
90.8 94.5 95.5 96.2
21.3 20.6 19.7 18.3 16.9 15
2011 2012 2013 2014 2015 2016
mobile user ratio telephone user ratio
66.5%
Weak coverage
at indoor
Weak coverage (RSRP<-105dBm)
Normal(RSRP>-105dBm)
16000 LTE Macro sites
Fix-line phone shrinking accelerate indoor
coverage process
Macro is not enough for
indoor mobile voice
Fix-line phone shrinking
mobile growing
in residential
Huawei X LAB, Q4 2016

4. Huawei Technologies Co. ,Ltd| 4
Insight 3: indoor digitalization has been industry consensus
Operators Analysts
Partners
Industry
Consensus
90%+
of new indoor sites preferred
pRRU
Source : M operator China
World wide landmark building choose
LampSite
Small Cell Industry Roundtable
Align industry Direction
Indoor small cell shipments
is booming
66.3
281.7
572.4
924.5
1,432.5
2,153.8
3053
2014 2015 2016 2017 2018 2019 2020
*Source: Dell’oro
23x
More partners join in indoor
digitalization ecosystem
建飞科技
Traditional
venders

5. Huawei Technologies Co. ,Ltd| 5
Insight 4: early bird deploying, early success obtaining
Unleash the traffic
Marina Bay Sands Hotel
Singapore
1 1
11x
16
x
Daily
Traffic
Average
Throughput
LampSiteDAS
Daily Busy Hour
16X increase
Improve ROI
Beijing. China Unicom
China
1.7X as DAS
2.8 2.9
4.2 3.8
8.2
3.9 4.1
1.3
1.8
3.4 3.3 3.4
2.2 2.5
DAS LampSite
year
Reduce complaint
Kunming Airport
China
0 complaint
7%
0%
complaint rate
Promote branding
value
Source: Huawei X Lab, 2016

6. Insight 5: MBB value-added service start from indoor
6 Applications
Public
service
Mall
Hall
Stadium
retail shop
Transportation
Hospital
College
Office
Security
defense
Disaster
handling
Map
application
Behavior
analysis
Business
Operation
8 Scenarios
CMCC： 500+ buildings，12 k㎡，serve 3m people /
day ,by 2016
15000
Shopping Mall
1665
Airport
2250
Railway Station
12400
Stadium
66600
Hospital
…
Shopping MallMobile Operator
• more member
• more revenue
• no rental fee
• extra service revenue
OTT Player
Smart shopping mall @ Wuxi city
Smart
Source: Huawei X Lab, 2016

7. Insight 6: digitalization is the unique road of indoor MBB to 5G
10 50403020 60 8070 90
6
GHz
3
pathloss(dB)
2.6GHZ
28GHZ
39GHZ
25dB
30dB
More path loss in 5G high band
High band with low penetration for indoor DAS: can not evolve to 5G
Signal Source
RF cable
Coupler
Antenna
x
x
> 3GHz
4T4R/8T8R
5GDAS
Huawei Technologies Co. ,Ltd| 4
Source: Huawei X Lab, 2016

8. 40%
32%
28%
no
environment fusion
no
tranmission
no space
& load bearing
Huawei Technologies Co. ,Ltd| 8
macro site
low band
small cell
high band
X Gbps
X Gbps
bus station
pole site
small cell
Diversified small cell site ready for 5G
small cell
Insight 7: outdoor small cell is a must for agile site
Source : Huawei X Lab,2016
Increasing macro site to be more difficult
EMF to be the challenge in capacity extension
Source: Huawei X Lab, 2016
Hard to extend to 3 carriers
<40%
Macro
sites
Green EMF
Total TX Power/Sector <600W
Easy site acquisition
On pole On wall

9. Huawei Technologies Co. ,Ltd| 9
Indoor Digitalization
LampSite
Focus on
small enterprise scenarios
(area < 5000 m2)
Small OfficeCoffee Shop
Pico
Focus on
large & medium scenarios
(area > 5000 m2)
Transport
hub
Stadium Shopping
Mall
High-end
Office/hotel
Huawei indoor small cell solution portfolio overview

10. Huawei Technologies Co. ,Ltd| 16
Excellent User experience Smooth evolution
Easy O&M
OSSpRRU
RHUB
Cat5E/6
BBU
Fiber
Cell splitting
Value-added service enabler
positioning precision push
flow analysis marketing evaluation
Drive MBB industry upgrade with indoor digitalization
5GLAA
0 congestion 0 complaint unleash traffic
1Gbps 5G

11. Get Ultimate User Experience
Gbps
Gbps
Gbps
Gbps
Gbps
Gbps
Norway
UAE
China
Singapore
Gbps
Thailand
Gbps
Gbps
Gbps
Gbps
virtual 4T4R 256QAM4CC CA
Gbps become operators’ brand Smooth evolution
VR 2K/4K
England
Malaysia
Indonesia
South Africa
Mexico
Switzerland
Netherlands
Gbps
Gbps experience: new standard for in-building system
Huawei Technologies Co. ,Ltd| 15
User experience

12. 28
15 10
80
M(DAS) T(Macro) U(Macro) U(LampSite)
2014.10
beijing capital airport, the biggest airport in Asia
1.7mi m2: 6500+pRRUs @ 3 operators
operator U: competition drive
poor experience
2016.01 2016.07
operator M: efficiency drive
2years only finish T2 terminal @ DAS
6 months deploy 1900 pRRUs T1&T3 terminal
2
0.5
DAS LampSite
75%8x
operator T: capacity drive
traffic suppressed by outdoor Macro only
267
485
before after
Throughput (GB)
2x
Mbps
Huawei Technologies Co. ,Ltd| 37
Beijing capital airport: all of 3 operators choose LampSite

13. china national stadium ，
the biggest stadium in china，90000 seats capacity
new business model
special package
1.5 $ = 1.5GB
challenges
420,000 congestion
only in 1 concert with DAS
2014 wang feng concert
0 congestion @ LampSite
49.5%
99.9%
DAS LampSite
2x
cultivate user behavior
78.3
346
DAS LampSite
Data traffic(GB)
5x
connection success rate increase increase revenue
1000 user *1.5 $=1500$/event
1500$*100 events=150000$/year
Huawei Technologies Co. ,Ltd| 39
LampSite help operator increase user experience & build new biz

14. Smart shopping mall in Wuxi coastal city
Benefit for proprietor Benefit for operator
Mall
LampSite & Service Anchor
smart mall solution
APP
operator
Data monetization:
¥X0,000 per year for data
¥X00,000 total for APP
service
Easy site acquisition:
no rental fee
Business mode
2017 new year
promotion
16.8% 44.4%
VIP Visit time
OTT service

15. Smart metro station in Chengdu
help Chengdu Metro optimize the traffic management
Station traffic
monitoring
Line traffic
monitoring
Station traffic
forecasting
Line traffic
forecasting
Rail traffic monitoring
Line load Vehicle load rate
outside at rush
hourStation facilities
load
Railway operation evaluation
Site property
determination
OD between
stations
OD in different
population
Temporal
distribution of trip
Rail passenger characteristics
heavy traffic
forewarning
Forewarning
publish
Forecasting
disposal
Response plan
management
Rail traffic forewarning
⑤
①
②
③
I II III
④
crowd grooming
heavy traffic, peak hour
history traffic analysis &
forecasting
forewarning
methods
making plans by
alarming level
Service Anchor

16. OperatorA
BTS
OperatorB
BTS
OperatorC
BTS
DCU/RHUB DRH
DRH leaky cable
LampSite 3.0equipment room
tunnel
platform
LampSite + SingleDAS is the best mate for metro scenario
equipment room
RX
DCU
OperatorA
GSM
UMTS
LTE
GSM
UMTS
LTE
tunnel
DRH
OperatorB
leaky cable
RF cable
Huawei Technologies Co. ,Ltd| 32

17. Huawei Technologies Co. ,Ltd| 41
Macro
BTS3911B
POWER
router
POE
4G CPE
site survey
1~2 hours
installation
20 minutes
PnP
10 minutes
fast deployment
*Peru operator x
BTS3911B with CPE backhaul help operator fast deployment

18. commercial street
residential area tourist spot
CBD Suburb
(blind spot/hot spot)
weak coverage hotspot
hotspot
x Mbps
anytime, anywhere
Huawei Technologies Co. ,Ltd| 45
Outdoor small cell top 5 hot scenarios

19. Huawei Technologies Co. ,Ltd| 48
pole site solution for more scenarios
BTS3912E for pole site scenario
BTS3912E
2x10W 8L
single band
FDD LTE: 1.8G
UMTS&FDD LTE: 2.1G(TBD)
BTS3912E: “ 0 ” footprint pole site

20. dense area, Thailand
commercial street CBD tourist spot
single-mode/band
UMTS 2.1G
multi-mode & multi-band
UMTS 2.1G + LTE 1.8G
2015
BTS3911E for UMTS hotspot
and weak coverage
2017
1.8G LTE will be deployed
for CA
smooth evolution with 30% TCO saving
reuse poweroptical backhaulmulti-sector
lamp / electrical pole site
better experience with UMTS Micro
DL peak speed
17.28Mbps
UP peak speed
4.81Mbps
Huawei Technologies Co. ,Ltd| 20
Multi-band & mode for smooth evolution in Thailand

21. Huawei Technologies Co. ,Ltd| 21
The traffic improves 8 times in 1 year
0
10
20
30
40
50
0
5000
10000
15000
20000
DL Traffic site
~800%
Total traffic No. of Micro site
Netherlands. Amsterdam
Commercial street: small cell improve 8 times traffic for VDF NL
Camouflage and integration solution Easy and fast installation
Micro
friendly Outdoor Small Cell Site
• Average DL traffic: 400-500Gbits/site per month
• The traffic improves 20% per month
On-Load is obvious after Micro deployment

22. Huawei Technologies Co. ,Ltd| 22
80% new sites is smallcell
15H2
（*39/2787）
Saving investment
＜3year
ROI
+50%
Networking
efficiency
-50%
Site rental
1%
17%
80%
16H1
（*783/3957）
16H2
（*2217/555）
*the ratio between SmallCell and Macro site
increase performance
Complaints
ratio
RSRP
-65.17dBm
SINR
22.15 dB
-21%
Download
speed
74.43Mbps
*Date from 20 residential areas
3000+ book RRU lighting Harbin excellent residential network
+30% +97%
+53%

23. Before
Erl
After
167
186
+11.2%
daily Erl(one site)
Before
Mbytes
After
31,496
37,257
+18.3%
daily DL traffic
unleashed user potential demand
installation position coverage area
Bangladesh, urban village
98.97%5.05%
RSCP> -95dBm Area Ratio
Huawei Technologies Co. ,Ltd| 23
Unleash urban village potential user demand

25. MANY THANKS !
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Huawei Technologies Co. ,Ltd| 25