PowerPoint

Small Cell 2020Fu HongjunVice President , Huawei Small Cell Product lineFebruary 232016

2x MBB Users

3 Billion6.7 Billion2.5x CIoT 400 Million1 Billion100x Speed

10Mbps1Gbps

new MBB Ecosystem

Open Platform for new service

MBB 2020 Bringing Opportunities & ChallengesMassive vertical market connection

OpportunityChallenge

3.54bLTE3.23bUMTSYear 2020

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20142015

201625+ Commercial

100+ Planned2020: 80%+ Voice on VoLTE

iPhone 6SGalaxy Note 3Huawei Mate S

Huawei P8Galaxy S6Voice & Video SimultaneouslyHD VoiceMOS4.0Touch to Talk500ms Setup

Best Voice Quality

Mature Eco-System

VoLTE Basic Service in MBB Era

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Mobile Video is Leading Point of W1 Operator

51%41%70%

51%51%LTE produces 5 times the 3G video trafficHD Video Require much Thicker NetworkNew Benchmark

200kbpsHigh Speed

BasicBroadband

Advanced Broadband

Redefined Broadband

19962008201120142015HD Video : Drive Force of MBB768kbps4 Mbps10 Mbps25MbpsSource: LG U +

#HD = High Definition

W1 = Wave 1

LGU+ +4

Source: Huawei mLab2014-2020, Smartphone Resolution1%83%42+2K ResolutionHuaweiMate8 & P8LG G4S6/Edge

2K Screen Becoming the MainstreamFrom: Statistics PortalMillion7x5x1.3Billion1.9BilloinSmartphone shipmentPC shipmentTV shipmentSmartphone: the Fastest Growing Screen High End Smartphone Drive Mobile Data Growth

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Spectrum Released

Spectrum RequiredAPTCEPTASMGATUCITEL(NA)CITEL(LA)USAChinaBrazilSaudiUKS. Africa

500 MHz GAP

SourceITU; Huawei mLab, 2014Q2720370687550790630550640370704410360Huge Spectrum Gap for Dual-HD ServiceUnlicensed Spectrum is Strong Supplement to Licensed Spectrum

UHF-Band(470~694/8): Universal Coverage and M2M ConnectionL-Band(1427-1518): Gold Band for MBB Access and RoamingC-Band(3300-5000): Key for Global MBB Rapid Growing TrafficTarget: To Achieve >500MHz New Spectrum for each Region

Segments (4 Mbps Expected!

Video sharing is driving mobile data growthVideo1000020000300004000020142015201620172018201920200

Mobile audioMobile videoMobile file sharingMobile web/data

BBU RHUB pRRU

OSS

Cat5E/6FiberVSEfficiency DriveBusiness DriveSimple network, easy deploymentE2E, visualized O&MEnterprise

Open Platform With 3rd APPNew market opportunitypositioningprecision push

Passenger flow analysisLocal exchangeTrend 1: Drive MBB Industry Upgrade with Indoor Digitalization

27:1

Traffic increase0:7%Congestion with 90,000 peopleBeijing AirportChina National StadiumGuangxi Airport0:0.4MComplaint in VIP Area

# 3 vs 8 0 vs 7% 0 vs only XTraditional voice Indoor / Outdoor: traffic density / m2 3 times, and investment / m2 is 4 to 6 times, indoor ROI is poorThe MBB data continues to drive traffic density scissors indoor and outdoor expansion, so that indoor and outdoor contrast ROI improvement in 2015 was the turning point in developed markets

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Trend 2: Maximum Site Value with Single Box Supporting Multi-Band & RAT

GSM

UMTSMulti-Mode

Wi-Fi

FDD

TDD700M

Multi-Band...

2100M3.5Glicense and unlicensed

6 CC CAIBW 120MOBW 600M

high integration chipTCO of Micro Deployment Support New Technology for 1Gbps Site Cost SavingDoubleEfficiency

UMTSLTESingle band & Single RAT

UMTS+LTEMulti-band & Multi-RAT

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Unlicensed Bands on Wi-Fi

3GPP Bands on Small Cell

Mobile BackhaulOSSOSS

OSSSharedBackhaul

OSSBackhaulLAA

FTTX/ADSLetc

Separated Network

One BoxCellular + Wi-Fi5GHz Total~575MHz

Average Throughput 167% to Wi-Fi

Trend 3: Improve Spectrum Efficiency of Unlicensed Technology with Convergence

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VoiceDigital ServicesTraffic & Connection2016Time

Industry Scale

Industry TrendThe trend approach to digital services

*Future support

Digital ServiceVarious digital services happened indoor

Network OpennessEnable network for new value-added service

Digital footprint Analysis

Passenger flow AnalysisPrecise Ads Delivery

Indoor navigation

LampsitePico

Small Cell ControllerMicro*Micro*

Trend4: Build New Business Mode and Ecosystem with Small Cell

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CoordinatorConvergenceOpenness

Optimizing the Networking for massive deployment of Small CellEnhance the coordination of inter-RAT or intra-RAT to improve the user experienceTrend5: Massive Deployment Drive Evolution of ArchitectureGenerate new value for mobile operator via opening network for digital serviceSmall Cell Controller

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Best Small Cell PartnerBusinessInnovationLeading ProductAlly Ecosystem

Leading Commercial Deployment

UMTSTDDFDD

WIFI

Future EvolutionMulti BandMulti ModeDIY DeploymentEasy O&MCoordinate, Open

Site companyOperatorSP/ CPSite IntegratorSmall CellCrowd SourcingWin-win Industry Chain

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Copyright2015 Huawei Technologies Co., Ltd. All Rights Reserved.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. Thank you

Source: DellOro , 2015 (by revenue)

Largest Market Shares of Micro Cell 2015Largest Market Shares of LampSite(Including Pico) 2015No.1 Of Magic Quadrant for Small Cell Equipment(Gartner, 2015)

Leaders

ZTE

Cisco

Ericsson

ALU

NokiaAbility To ExecuteCompleteness Of VisionMWC 2015 BarcelonaBest Mobile Infrastructure

LTE Asia SingaporeBest Innovation in HetNet

Best MEC Use Case Idea MEC London

East Africa Com Cape TownBest Network Improvement

WINNERBest Mobile Infrastructure

Huawei Small Cell Leading Industry Development

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Trend 1drive MBB industry upgrade with indoor digitalizationTrend 2maximum site value with one box micro supporting multi-band & multi-ratTrend 3improve spectrum efficiency with convergence of licensed & unlicensed technologyTrend 4build new biz and ecosystem with small cellTrend 5drive evolution of network architecture due to deployment of massive Small Cell

Shopping Mall

OfficeVillageStadium

Street

MacroMacroFive Trends to Small Cell 2020

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