Succeed Through Partnership

Huawei Business Focus - “Customer success above all. Without our customers, we are nothing”

Globally Ø  2013 rev $38.5B, 16% CAGR Ø  Continue to expand product portfolio Ø  Huawei #1 infrastructure vendor

leading in market share, momentum, and top scores in service and support. Infonetics 2013

US Telecom Industry Ø  25% of industry profits come from US*

*CNNMoney

Infone&cs  2013:  Telecomm  Equipment  Vendor  Scorecard  

2009-­‐2012  Audited  by  KPMG

0 5

10 15 20 25 30 35 40

2009 2010 2011 2012 2013

Revenue ($US B)

$32.4 B �$27.6B �

$21.5 B �

$35.4 B �$38.5 B �

9% YoY �

Challenges Ahead

Ø  Revenue challenges from T1 activities •  T1 subscriber acquisition wars •  Increasing move to prepaid •  T1 roaming revenue threats

Ø  Wireless data driving up costs •  Data demand increasing exponentially •  OPEX is not decreasing - backhaul •  Device subsidy cost increasingly critical

Ø  Universal Service Fund being phased out, federal budget cut pressures – small carriers must become self sustaining

n Stand Still! I'

STAND  STILL  –  I’M  FREEZING!  

Succeed Through Partnership

Ø Multiple bands/ technologies to increase roaming revenue

Ø  Share resources to increase revenue/decrease cost

Ø Deploy leading technology solutions to reduce costs

Together  We  Can!  

By working together, we are more likely to succeed in an increasingly challenging environment

Nemont Success Story Ø  Utilizes Huawei industry leading multi-

band/multi-technology SingleRAN BTS Ø  Common N-EMS – M2000 Ø  Support of CDMA/UMTS/GSM/LTE

all on one network

PDSN   AAA  

MSCe  

M2000  

UMG  BSC  

CDMA/UMTS/GSM/LTE  RAN  

MME/SGSN  

S/P  GW/GGSN  

HLR  

HSS/HLR  

CDMA  Core  

LTE/UMTS/GSM  Core  

UMTS/GSM  MSS  UMTS/GSM  UMG  

Ø  Enhancing multi-technology coverage in high-cost rural area's in an efficient and cost effective manner

Ø  Enables roaming revenue from any operator

United Wireless Hosted Core Solution

Ø  Managed by an experienced/ profitable operator

Ø  Lower CapEx – S/P GW only Ø  Localized data traffic avoids

additional backhaul costs Ø  Logically independent network Ø  Easy migration to full EPC

Simple/affordable recurring cost Ø  $400/site/mo

Local S/P GW

Remote Hosted Partner

VPN Ctrl Link HSS

MME/CG

M2000

United Hosting Core

Site Router

Local Bearer

Signaling/Billing

Leading Tower Top Solutions Huawei tower top electronic benefits: •  Gain of 2-3 dB for increased coverage and capacity

•  Capital savings (coax, radios, sites) and increased revenue

(improved coverage, reduced churn, reduced roaming costs)

•  Optional AAS provides extra 0.7dB gain, beam forming,

higher order MIMO

It’s All About Reliability: •  More than 2M RRUs shipped (4Q13)

•  Failure rate is less than 1%

•  3% site visits vs 18%*, $354k annual savings

*Assumes 3% ARR/module, 3 sectors, 2 modules in competing AAS, $4k OPEX to replace, 500 site network

Multi-band antennas, optional AAS

Industry Leading Technology Solutions Wideband AAU - 365MHz IBW: From SDR to SDB

Ø  Ultra-wideband •  AWS - PCS

Ø  Better Performance •  4T4R •  Power sharing across bands AAS

4-Mode SW Defined BBU Eliminates Bottlenecks

TDD BB Processing L FDD TDD GSM UMTS

Baseband Processing

Easy MacroTM: Boosting Capacity in Urban Areas

Ø Mini AAU •  2T2R

•  AWS - PCS

Blade BBU/Power

LampSite: IBS Network Enhancing Indoor Experience

pRRU

pRRU

pRRU rHUB BBU Service Anchor

API

Ø  Ultra high throughput supporting multiple technologies

Huawei SimpleCore WBB Network Solution EMS

Transmission Network PORTAL

Portal

BRAS

AAA

Softswitch

eRelay

RRN

SME Home

FE FE

Profile B

CPE MiFi

FE WiFi

Cost effective solutions: Ø  Site/Small Cell Backhaul Ø  Enterprise Access Ø  Residential access

•  NLOS, PtMP, •  Large Capacity, 240Mbps DL/ 150Mbps UL

@20MHz, S111 •  Layer2 Networking

•  Lower cost OTS LTE TDD CPE •  Layer2 Networking

RRN

Services – Partnering for Success

80.00

77.50

77.50

82.50

82.50

73.64

70.00

73.33

76.67

75.00

0 20 40 60 80 100

Technical  Support

Understanding  of  your  network  and  business  

processes

Technical  problem  resolution  (conformance  

to  SLA)

Obtaining  of  product  manuals

Quality  &  effectiveness  of  product  training

Technical  Support

Huawei

Competitor

Ø  Customer partnership based Service Solutions •  Differentiators: Flexibility, Fast Deployment, High

Quality •  Service fees significantly benefit from

SingleNetwork architecture •  25+ wireless networks deployed on time

exceeding KPI’s

Ø  Feedback driven Customer Support •  Beyond KPIs, SLAs, and contract commitments •  Responsiveness, competence, awareness of

challenges •  Small carriers are Huawei’s focus

Key Takeaways

Ø  Focusing on business is a winning long term strategy

Ø Only through developing a partnership can we ensure long term success for our customers and ourselves

Ø Multiple innovative commercial, technical, and service solutions are available to improve your customer’s experience, increase revenue, and decrease costs…more to come