1) The document discusses trends in the telecommunications industry as networks transition from voice-centric to data-centric. 2) It analyzes how networks have evolved from focusing on human-to-human communication to also enabling human-to-machine and machine-to-machine communication. 3) The author proposes that telecom companies transform their business models and roles to thrive in the new ecosystem as both traffic and value are generated.

1. Telco in M-­ICT Era
Xiao Ming
ZTE Corporation
31 August, 2015

2. © ZTE Corpor ation. All rights r es erved.
Before
Telephony
Today
Datraffic
Future
M@ICT
Insight of trends -­ In general
Voice goes mobile
from fixed network
Main traffic float in the
network is voice
Main goal is human to
human communication
Mobile network goes
broadband
Main traffic float in the
network is data
Enterprise application
goes to mobile network
Goal is to achieve H2H
plus H2M
Ubiquitous connection
based on human and
enterprise extends to
machine, even robot and
creature, anytime and
anywhere
Goal is to achieve H2H,
H2M and M2M
Voice@Mobile BB@Mobile BB@Ubiquitous

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Insight of trends -­ Operator
0
50000
100000
150000
200000
2014 2015 2016 2017 2018 2019
Global
traffic
forecast
2014
-­‐ 2019
Mobile
Data
Managed
IP
Fix
internet
Total
Traffic
Challenge and Choice
Challenge
Slow revenue growth, the traffic
increase do not bring additional revenue
Choice option
Voice goes over IP, and is charged as
traffic.
Flexible charge strategy by scenario or
time quantum, etc.
Innovation service encompasses
Machine and Big Data
Ensure the network can evolve flexibly.
2514
4163
6751
10650
16124
24221
0
5000
10000
15000
20000
25000
30000
2014 2015 2016 2017 2018 2019
Mobile
Data
traffic
2014
-­‐ 2019
Mobile
Data
Unit : P byte

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Challenge and opportunity of G&E
Opportunities
Improve productivity and administration efficiency with ICT technology
Challenges
Lack of IT infrastructure or high cost of upgrading.
Absence of efficient e-­process, low operation efficiency.
Amount of Isolated internal information centers, information can’t be shared nor
can there be any interaction between internal function units.
Strategy options
Upgrade and optimize existing intranet and make the intranet go mobile through
ICT technology.
Improve efficiency, reduce cost.
Insight of trends -­ Government & Enterprise

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Why Internet+
Combine traditional industry with internet so it will
develop faster than before. Productivity and quality
of life of human beings will be improved
Internet+ and Traditional Industries
Relationship is not opposed to each other.
Traditional does not mean conservative or
stagnant. Traditional industry is the basis of
human civilization.
Internet+
Insight of trends -­ Perspective on Internet+
Internet+
Service
Conventional
Industry
Energy
Finance
Service
Logistic
E-­commerce
Transport
Innovation
Manufacture
Agriculture
Focus on

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Traffic generates value
The world is like the human body. A Network acts like blood vessels while
Traffic stands for blood itself
Data is generated everyday and everywhere, it would be valuable by flowing
reasonably and legally
Opportunity and Challenge
Big data brings convenience and efficiency to enterprise and consumer
At the same time, there will be a few challenges, such as how to protect privacy
and what kind of data can be commercialized. It depends on the policy and
balance of regulation
Insight  of  trends  - Perspective  on  Big  Data

7. © ZTE Corpor ation. All rights r es erved.
From value chain to ecosystem
Before: voice is principal source of revenue.
Operator plays a key-­role in the value chain,
business model is simple.
Today: internet service providers play an active
role in the traffic era and, together with
operators and business ecosphere, enhance
the value chain.
Trends: need open mind to construct an open
and healthy ecosphere together with the
different roles within the ecosystem
Content
provider
ICT
Vendor
System
Integrator
Network
Operator
Enterprise
&
Consumer
Mobile
Device
Vendor
Service
Provider
Insight of trends -­ Redefine the business role

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Market
competition
Technology
R&D
Decision
Customer
Demand
Their union promotes innovation
Without a healthy network, innovation of mobile
internet is beyond reach
Technology restrictions of the infrastructure
network are well known to follow principles, such
as Shannon Theory and Moore´s Law
Insight of trends -­ Technology restrictions
Internet and Infrastructure network

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[Basic law] Shannon Theory
The Shannon-­Hartley theorem calculates the maximum rate
at which information can be transmitted over the
communications channel of a specified bandwidth in the
presence of noise.
Moore’s Law
"Moore's Law" is the observation that, over the history of
computing hardware, the number of transistors in a dense
integrated circuit has doubled approximately every 18-­24
months.
Moore announced this observation in 1965
Claude Shannon
1916-­2001
Gordon Moore
Insight of trends -­ Basic principle and law

10. © ZTE Corporation. All rights reserved
10
Corporation Strategy
Become a Distinguished Global Leader in the M-­ICT Era
Enrich people’s life Help Government and
Enterprise improve
efficiency and upgrading
Help operators transforme
and let the flow create
multi-­dimensional value
Corporate Vision: become a distinguished global leader in the M-­ICT era.
Enabler@MICT helps operators transform, Improve Gov. & Enterprise’s operation efficiency
and consumer’s quality of life
Corporate Mission: spare no efforts in providing cool, green, and open ICT
solution worldwide. Win-­win with our partners and share a safe, open, and
reciprocal platform

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Evolution and transformation
Existing network should evolve along with the
established industry technology path, keeping
focus on:
o Wireless: Pre 5G and 5G
o Wireline: NGPON/400G
o Cloud Computer : RCS/CDN/NG BOSS
The network should be more elastic and flexible,
due to the network traffic change from voice to
data .The future network should be redefined
quickly and efficiently. SDN/NFV is the evolution
path of legacy networks.
Network
Evolution
R&D
Technology
Value
Chain
Network
Transform
NW
Business
Service
Business
Model
Corporation Strategy -­ Network transformation

12. © ZTE Corporation. All rights reserved
12
Architecture from
inflexible to elastic
Service
Barrier
Service Chain
Core IPMetro IP
NFVI
Backhaul
Access
MANOCP1
TC/TF Service Chain
CP5
NFVI
TC/TF
CP4
Service Chain
CP6
NFVI
MANO
SDN-­C
TF
…
Border
DC
Region
DC
Ceneral
DC
Metro optical Backbone optical
MANO
SDN-­CSDN-­C
CP2 CP3
Management
Internet2/3G
4G
Enterprise
Home
wifi
Person
5G
NaaS DaaSBaaS
vDC2
vDC1
vDC3
MICT OSTM
MICT Orchestrator
Corporation Strategy -­ Network transformation

13. © ZTE Corpor ation. All rights r es erved.
Government Market
From Smart City 1.0 to 2.0
Help them modernize with leading IT and CT
technology, improve efficiency and administration
ability
Key feature of Smart city 2.0 is cloud, network
and map
Enterprise Market
Focusing on Key industries
Focuses on key industries: energy, transportation,
public utilities, finance and internet. Provides
cutting-­edge and competitive ICT products,
solutions, and services
Infrastructure
Network
Service
Provider
System
Integratation
Network
operation
G&E
Business
Delivery
Support
Business
Model
Corporation Strategy-­G&E Focusing

14. © ZTE Corpor ation. All rights r es erved.
Innovation
Focus on innovation of key features and design,
evolve from product-­oriented to customer oriented,
grow and partner with end-­user
Channels and Premium devices
Increase income from channel. Steadily increase the
number of partners and stores.
Aims to boost shipments of premium devices and
Mid-­high end phones
Branding transformation
Accelerate our Business to Consumer (B to C) brand
transformation strategy
Corporation Strategy -­ Mobile device innovation

15. © ZTE Corpor ation. All rights r es erved.
Service Transformation
From product-­focus to network-­focus, Improve
the capability to optimize the entire network
performance and E2E user experience
Restructure the organization of the service
teams at corporate level, optimize service
delivery and project management processes.
More investment in service tools and platforms
Enhanced service feature planning in the
lifecycle management of product team
University
PDT
Research &
Innovation
Centers
GNOC
Professional
services
GSSC
GCSC
Corporation Strategy -­ Service transformation

16. © ZTE Corporation. All rights reserved
16
Corporation Strategy -­ Big Data Strategy
Platform open to enable data
sharing and floating
Business model innovation
value chain integration
Big Data Platform
Telco
Provider
G&E
Explorer
Network Marketing
Monetization
Smart City Finance
Application convergence to
make Big Data applicable
SDN
Health
Transportation
Business Model Innovation
Integrator
Practitioner
Energy
…
Open Cooperation Innovation

17. © ZTE Corporation. All rights reserved
17
Massive
MIMO
UDN
Ultra Dense
Networking
MUSA
Multi-­User
Shared Access
Focus on Practical 5G
Technologies and Lead
5G Commercial Progress
Build Flexible & Efficient
Network as enabler for
M-­ICT
SLA
Soft Link
Adapter
SDA
Soft Defined
Air interface
SNA
Soft Network
Architecture
High Performance Flexible Network
Innovation on 5G

18. © ZTE Corporation. All rights reserved
18
Smart City
The open and
shared Urban
Operation Center is
the foundation of
city intelligent
applications
Public Safety
Big Data analysis ,
intelligent video
analysis
Wireless
Government
Wireless
government network
deployed in large
cities such as
Beijing, Shanghai,
Tianjin
Wireless
Charging
Wireless charging
solution for
automobiles reduces
cost
Rail Transit
LTE-­R to support
railway wireless
services with train
speed up to 500
km/h
ATG Broadband
Air to ground
broadband provides
wireless network
services for passengers
Innovation on G&E solution

19. © ZTE Corpor ation. All rights r es erved.
Innovation on mobile devices
NUBIA Z9 AXON
World's first metal
handset body with
leatherette trim
World’s first
frameless Smartphone
First voice-­interactive Smartphone
First commercialized EPR technology
First Smart Ring
First Chinese corporation to sponsor
and partner with NBA
First use of CAT6 chipset
Voice-­ and gesture-­control technologies will be a major part of ZTE “smarter”
smartphone strategy.
Other innovations include eye and voice pattern recognition

20. © ZTE Corpor ation. All rights r es erved.
Accelerate innovation by CGO Lab
Network
Architecture
Information
security
M2M &
others
Mobile
Internet
CGO Lab Incubator
(platform/finance/incentive support)
Corporation Strategy and Investment
Committee
Project
approval
Project
R&D
P&S
operation
Opportunity
Evaluation
CGO Lab
CGO Lab established in
2014. Reports to Corporation
Strategy and Investment
Committee. Accelerate internal
innovation with a dedicated
management team.
Main innovation direction:
Network architecture, mobile
internet, information security,
M2M, etc. Budget and incentive
policy individually approved by
CSIC

21. M@ICT+
Summary
MICT era means unlimited
possibility by connecting everyone
and everything
ZTE will keep on innovating in the
existing business in order to
achieve sustainable growth with
our customer and partner
worldwide
Besides that ,we invest and support
emerging business models to
secure future growth

22. MICT+
Let’s make possibility together