From Mobile Internet to the

Connected World

CEO Huawei Sweden

2018.10.02

Kenneth Fredriksen

Huawei at a Glance

180,000

Employees

14 80,000 No. 70 170+ No. 83 R&D

Institutes &

Centers

R&D

employee

s

Interbrand's Top

100 Best Global

Brands

Countries Fortune

Global 500

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100

200

300

400

500

600

700

800

900

1000

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华为整体 华为泛网络 华为终端

ICT convergence

Multiple

business lines

2010–2017

1987–1992 Early stage

27.2

Unit: US$ billion

92,5

billion

USD

Company Growth

1.91

2000–2010 Global expansion

1992–2000 Developing domestic

market

Huawei Group

Huawei Carrier and

Huawei Enterprise

Huawei Consumer

100

90

80

70

60

50

40

30

20

10

• Carrier: US$45.7 billion

• Consumer: US$36.4

billion

• Enterprise: US$8.4

billion

•Exchange rate 6.5222

(on Dec. 31, 2017).

Fortune Global

500

197 companies in

Global

August 2018

70%+ of revenues

from global top 50 carriers

China

June 2018

29% 15.8%

Hundreds of millions of consumers

Consumer

Products & Services

A brand loved by global

consumers

Global carriers

Carrier

Products & Services

Best strategic partner for

carriers

Global enterprises, industries

Enterprise

Products & Services

Enabler and preferred partner

for digital transformation

Leading ICT Products, Solutions, and Services

Cloud

Products & Services

An open, reliable cloud platform

Global cloud users

99 cloud

services in

14

categories

50+

solutions

Top 2 in smartphone market share Serving global industries/

large enterprises

Fast growth, reliable and secure

services for customers

45 companies in

Fortune Global

100

Sustained Strategic Investment is Tomorrow's

Competitive Edge

Approximately 15% of sales

revenue is invested in R&D to enhance

competitiveness and to drive progress

in industry and technology.

Over the past ten years (2008–2017),

total R&D investment exceeded

CNY 390.4 billion or

US$60.6 billion

Future: Annual investment of

US$10–20 billion; over

80,000 R&D employees.

~15%

Sustained investment in research to

explore future technologies for an

intelligent world

US$ billion

1.64 2. 1

2. 67

3.74

4. 77 5. 20

2008 2009 2010 2011 2012 2013

9.25

6. 61

2014 2015

11.0

2016

2017

13.8

Huawei Sweden Overview in 2018

+600 employees

and 80% are recruited locally

+300 employees

engaged in R&D

3 Business Areas Carrier

Consumer

Enterprise

Cooperation

with all operators

4G/2G network for

Telenor & Tele 2

3G network for

Telenor & 3

Fixed/IP networks with Telia,

ComHem, IPonly

4 R&D offices

4 sales & service

offices

0

The road to

5G will be Key Enabler of the 4th Industrial Revolution

Tipping

Point

18th Century 19th Century 20th Century 21th Century

Steam Engine Electricity Computer Internet of

Everything

Industrial

Revolution

Transformed

Industries

1st 2nd 3rd 4th

… … … …

ALL Industries

5G Will Enhance the

Mobile Internet and Empower IoT

Empower IoT

Consumers

•Ubiquitous connections

•Consistent experience

Verticals

•Accessible, shared 5G infrastructure

•Real-time, on-demand network services

•Easy deployment and O&M

•Business agility to enable new business

models

Carriers

Enhance the Mobile

Internet

Five mega trends of mobile services

mMTC

Massive Machine Type

Communications

uRLLC

Ultra-reliable and Low-latency

Communications

Future IMT

Gbps

eMBB

Enhanced Mobile

Broadband

3D Video, UHD Screen

Work and play in the cloud

Augmented reality

Industry automation

Mission critical

applications

Self driving car

Smart

Home/Building

Smart City

Key 5G Capabilities

Long Tail Use Cases will be Key Driving Force of 5G

80/20 Long

Tail

• Voice & Data Centric

• People to People

• Less Varity of Services

• One Size Fits All

2/3/4G

xMbps • Application Centric

• Everything Connected

• Wide Varity of Services

• Tailored services for Specific

Demands

5G

1ms

Latency

Up to

10Gbps

Throughput

Up to 1M

Connections/km

2

80% Traffic fulfills 20% Use Cases Long Tail Use Cases with extreme

requirements emerging

Pareto

Rule

Long Tail

Theory

Network

Architecture

Slicing Ability

Required

Connections

1,000K Connections

Per Km2

Mobility

500km/h

High-speed

Railway

Throughput

10Gbps

Per

Connection

Latency

1 ms

E2E

Latency

5G

600Mbps 10K 350Km/h 30~50ms Inflexible

LTE

GA

P 30~50x 16x 100x 1.5x NFV/SDN

The road to

Technology Requirements

5G Needs Cross Industry E2E Integration Test

Core

RAN

UE

S1 Interface

4G IoT Test

Uu Interface

5G E2E Test

…

…

E2E

Integration

Multiple Industries

Applications

Autonomous Driving

Network Slice

8K/Holographic

Video Network

Slice

IOT Network

Slice

UP

CP UP

CP

UP

CP

UP

Operator

Partner

Consumer

Developer

Industry Defined Network Slicing

One Infrastructure, Multiple Network Slices

Application Field

Unified Control Plane

RAT

Configure Session/Mobile/Policy

Multi-Application User Plane

DC

Service oriented cloud-formation Internet architectural operation

DC

DC

GW UP CDN/Cach

e

The road to

Industry Update Standards, Spectrum and Roadmaps

2016 2018 2019 2020 2017

Global

Launch

Rel-14 Rel-15 Rel-16

NSA NR Full IMT-2020 NR SA NR

Phase1 Phase2

Phase 1

NR Framework

• Waveform & Channel Coding

• Frame Structure, Numerology

• Native MIMO

• Flexible Duplex

Architecture

• NR/LTE Co-existing

• UL&DL Decoupling

• CU-DU Split

• NSA / SA

Phase 2

NR Improvement

• New Multiple Access

• eMBB Sub6G Enhancement

• Self-Backhaul

Vertical Digitalization

• uRLLC Enhancement

• mMTC

• D2D

• V2X

• Unlicensed

5G Standard Progress Update

Others: uRLLC

5G Spectrum Progress: C-band, 700MHz and mmWave

2018 2019 2020+

H1 H2 H1 H2

C-Band (3.5G&3.7G)

UK ES DE FR IT

FI DK SE PL AT GR NO CZ RO HU SK LT LV

FI IS DK NO SE RO PL

AT

HU

DE FR

700MHz

mmWave

SE PL AT

UK IT

HU

HU

SI

SI

5G Terminal Roadmap

Smartphone

2018

Q2 Q3 Q4

2019

Q2 Q3 Q4 Q1 Q1 Q4

5G CPE1.0

(C-Band/1.8/2.1/2.6)

(NSA)

2017

Chipset

CPE 5G CPE2.0

(C-Band/700/800/900M/1.8/2.1/2.6)

(NSA & SA)

Galaxy S

New iPhone

Mate 30/30 Pro

Balong 5G01 Balong 5000

SDM855

XMM8060

Exynos 9820

Kirin 980

SDX50

2018 2019 2020 2017

Solution Test/

IoDT

Pre Commercial Use

Pre Commercial Use Scale Commercial Use Scale Test

• FWA/eMBB

• 28G/39GHz

• eMBB/FWA

• 3.5G/28G

• eMBB

• 4.5G/28G

• eMBB

• 700M/3.5G

• eMBB

• 3.5G

Technology Validation Network Deployment Commercial Use

Deplyment/

Pre-commercial

Sites Deployment Solution Test/

IoDT

Pre Commercial

Use

Scale Commercial Use • eMBB

• 3.5G

Technology

Validation

Technology Validation

Technology Validation

Technology Validation

Technology Validation

Commercial Use

Commercial Use

Commercial Use

Global Rhythm of 5G Commercialization

Source: GSA Report, July 2018

Operator Country

Elisa Estonia and Finland

Zain Kuwait

Ooredoo Kuwait

Ooredoo Qatar

STC Saudi Arabia

Etisalat United Arab Emirates

Global 5G Status – Snapshot July 2018

• 6 operators in 6 countries claim

they have launched 5G networks

• 66 operators in 37 countries

have intentions of making 5G

available from 2018 onwards

5G Launches and Planned Launches

The road to

Turning User Cases

into

Business Cases

The Intelligent Revolution Will Profoundly Impact Every Person, Home

and Organization

• Supporting special needs to live a normal

life: Guide helmets for the visually impaired

• Helping people acquire special capabilities:

Multi-language communication, AI cameras

• 90% of smart device users will use intelligent

personal assistants

• At-home services: Healthcare robots,

education robots

• Home everywhere: Holographic

communication, smart home

• 12% of homes will use intelligent service

robots

• Personalization at scale: Customized Harley-

Davidson manufacturing

• Smart government: Safe City, smart

government services

• 86% of enterprises will use AI

Data source: Huawei GlV 2025

Homes Organizations Persons

National Digital Economy Strategies

• GDP: 1% ↑ (for every 20% increase in ICT

investment)

• Productivity: 20% ↑ (by 2025)

• Connected devices: 100 billion (2025)

• ICT innovation drives inclusive growth and

sustainable development.

ICT Enables Transformation into Digital Economy

Sources: Boston Consulting Group, Huawei GCI

170 countries have launched national ICT

development plans

Industry 4.0 Internet Plus Advanced Manufacturing 2.0

Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia

Nigeria National

Broadband Strategy

Colombia Live Digital Connected Argentina

Source: ITU

Step2: Solution testing

Step3:System testing

China: Aim to be the leadership in 5G Era

2017 2018 2019 2020

• 4~5 Cities

• Field testing

• Lab testing

• Field testing

• Lab testing

• Key technologies

research

• 10+ cities trial

• 100+ site per city

• 10+ cities trial

• 100+ site per city

• 10+ cities trial

• 100+ site per city

• Pre-commercial

• Pre-commercial

• Pre-commercial

• Large scale commercial

• Commercial in big city

• Commercial in big city

Phase1: Technology testing Phase2: Product testing

Large scale networking

Fixed Wireless Access for Home Broadband

5G Home Access

X Gbps Throughput

Fast TTM & ROI

Major use case for 5G

early deployment

Target & Existing Gap

Target: By 2020 50%

Households > 100Mbps

4.60%

25.40% 24% 12.20%

37% 45%

Households > 30Mbps(%)

Source: Broadband Europe Strategy 2015/ FCC 2016， DESI 2017

Target: By 2020 100M

Households > 100Mbps

17.7

100.0

2016 2020 Target

Households > 100Mbps(million)

Germany: Set focus on opening public infrastructure as part of 5G strategy

German government’s

“5G Strategy for Germany”

• Facilitate fiber connection to each base station

• Promote the use of passive carrier infrastructure for the construction of

5G cells:

• traffic lights and street lights, can be cost-efficient for the expansion

of pico cells

• Public buildings, street furniture, guard rails, trench covers

• Support network rollout - Maintain health protection:

• optimization of licensing and decision-making processes at the

municipal and national levels

• examine whether there is a need to adjust applicable distance controls

for antenna locations

5G Industry Use Cases under development

5G : Autonomous

Launch Assisted Driving

2017H2

Near Future

4G : Assisted

*UDN: ultra density network

2017 Shanghai MWC Use Cases

Guide Helmet Connected Drones Home Service Robot Smart Manufacture 5G Autonomous Driving

4.38 KM2 300K People/Day

100Mbps Everywhere

10Gbps

Pavilions

SIG set up

in 2017

Connected Car

Drone Connected Car Smart Factory Ultra Density Network

2020~

Building Strategy

2017~2019

2014~2017

Deployment

Standardization User Case

43 105

324 63 88

68 130

452

Mining

Agriculture

Media and Ent.

Transport

Addressable Market (bn$)

Enable more

application: 250Mbps UL,

99.99% reliability,

City safe…

Key Success Factors of 5G Flourishing Eco-system

to be the foundation of

scale effect

Global unified

standard

to facilitate the industry

prosperity and development

Mature Industry Chain

to explore new

business opportunities

New Services &

New Market enables service and business

model innovations

Technology

innovation

Exploring 5G New Business Opportunities

186+ Industry Partners Mobile 4K Video

Cloud VR/AR Drone

Digital Factory V2X

……

Industry

Alliance

Business

Alliance

Open Source

Communities Developer

5G Vertical Industry Accelerator /

Automotive Accelerator in Munich

+

Industry 4.0 Public Cloud

Safe City Device/Network/Cloud

$1B in

next 5

years

Huawei Developer

Enablement Plan

Growing

the industry

Business

Success

Community

Collaboration

Incubating

New Player

Building an Open, Collaborative and Win-Win Ecosystem

Shared Success with Global Partners via Openness

and Innovation

About 100 universities and thousands of researchers work

with the Huawei Innovation Research Program (HIRP). HIRP

invests around CNY 300 million every year, and has

supported thousands of postgraduate students.

Member of 360+ standards bodies;

300+ key positions.

Universities

Standards Joint Innovation Centers Patents

OpenLabs

Huawei has established 13 OpenLabs worldwide.

Suzhou, Munich, Mexico City, Singapore, and Dubai

labs support our customers in specific vertical sectors.

OpenLabs are centers for joint innovation,

development, and testing, and serve as experience

centers for customers and partners.

36 joint innovation centers with global

carriers, enterprises, and partners

Huawei holds 74,307 patents; 64,091

applications in China and 48,758 in other

countries; signed dozens of cross-

licensing agreements with major vendors &

IPR owners since 2001. Pays US$300

million in patent royalties per year.

35

Bring digital to every person, home and organization for a

fully connected, intelligent world.

HUAWEI

Vision and Mission