3 KEYs for UltraBroadband Development CEO Lim Chee
3 KEYs for Ultra-Broadband Development: "C-E-O" Lim Chee Siong CMO, Huawei South Pacific Region cslim@huawei. com
3 Dividends in Ultra-Broadband Development Cloud ( Bandwidth on-Demand ) Digital Dividend ( ARPU Increase ) Content Video Dividend ( Cost Reduction ) Connect Population Dividend 2 2 Source: ITU, AKAMAI UBB Broadband Development Map = （BB Total Subscriber *Average Bandwidth）/ Population
Population Dividend 1. 1 Billion unconnected households 3 3 150+ Countries with National Broadband Plan Connect 2020 55% Broadband to Households Broadband China 70% Penetration by 2020 Indonesia Broadband Plan 71% Coverage in urban by 2019
Cost is the KEY for Deeper Penetration China 200 $ Cost South Africa 28. 9% Penetration Source: MIIT 4 4 1350 $ Cost 0. 06% Penetration Source: Huawei i. Lab The average home-connected Cost and Penetration of FTTH
How to Lower the Cost… Investment Encourage Grant new fixed license "Telco first“ Activate stagnant market as ICT new Target, break LLU in 76 cities Egypt Poland Friendly Policy & Regulations Infrastructure Synergy Innovative Tools & Solutions £ 1. 2 B subsidy for rural BB Cost Reduction 5 5 Product Innovation ü 14% ODN CAPEX Saved "Fiber from the home" Electricity 20% Cost Saved Motorway "From Burial to Aerial" Road Mini OLT, Dual mode ONT… Engineering Innovation Railway Crude oil Natural gas ü 8000 km Fiber Network Micro-trench, Fibre Blown… Management Innovation Standard Operating Procedure, Subcontractor Training… Source: Huawei i. Lab
Waves of Telcos Launching 4 K Video Service Video Dividend 4 K United States ( OTT + Premium Content ) 2013 Everywhere, with Telcos Racing to Launch Korea & Japan ( FTTH + Policy ) 2014 China 80’ 4 KTV <=2000 € 60% 2015 2016 is 4 K TV 500+ 860+ 4 K Video 4 K channel 2017 2018 ( FTTH + 4 K TV/STB ) 2015 Europe ( Competition + Live sports ) 2016 6 6 Korea’s 4 K: BTV, 2013 Japan’s 4 K: BTV, June. 2014
: Benchmarking Video User Experience U-v. MOS = f（s. Quality, s. Interaction, s. View ） Kick off G. vidmos in ITU-T ( ITU&Huawei ) Quality Content Interactio n Video Experience Quantified into 5 grades View playing s. Quality loading s. Interaction s. View “ 0” Distortion “ 0” Waiting “ 0” Impairment Excellent Good Fair Poor Bad 5 4 3 2 1 No Distortion Little Distortion No influence Little influence Influence Much influence Source: Huawei i. Lab 7 7
: Take a Glance at Cities Around the World Paris France Moscow Russia Seoul South Korea Karachi Pakistan Cape Town South Africa 8 8 Rio de Janeiro Brazil Shenzhen China Mumbai India Singapore Sydney Australia >3. 5 3~3. 5 <3
4 K is Game Changer with Experience the Differentiator OTT: Cloud-Terminal Synergy Only 4 K Video Traffic (E Bytes / Month) 20. 00 18. 00 16. 00 14. 00 12. 00 10. 00 8. 00 6. 00 4. 00 2. 00 0. 00 OTT YK（HD） . 5% R G A C 4 K Content 2 14 2015 2016 2017 2018 2019 Telco: Cloud-Pipe-Terminal Synergy China Telecom SC（4 K） High BW Low Delay Low PLR E 2 E ≥ 50 M*n E 2 E ≤ 20 ms E 2 E < 10 -6 Network KPI for 4 K video 9 9 = = 4 K Content
Looking Forward, VR is About to Take Off… • 200+ games and social VR apps • 20 k+ 360 -degree videos uploaded to Facebook Gear 360 Camera Facebook press conference by VR Device widely available VR content made easy Connected VR demands ultra-high speed (>750 Mbps), and ultra-low latency (<10 ms) 10 10
Digital Dividend Cloud Service Telcos Expanding Application Cloud Datacenter Global Operators Leased Line Connectivity Service Provider 2015, 82% New APPs in Cloud 11 11 ICT Service Provider
B 2 B will be Rebuilt by Cloud leads Enterprise’s LAN to Telco’s WAN 12 12 “ We sell boxes and services in “ In the future 20 years, the past, while capabilities and enterprise IT service will be the platforms in the future. ” biggest opportunity. ”
On-demand can Fill the TTM Gap in Cloud Business Telcos launched Plans for On-Demand Network 1 day Tenant ordering Fiber checking ~30 days 15 days E 2 E service getting ready CPE install 7 days Device configuration and service provisioning CPE delivery Service monitoring and customer signoff Preconditions • Fibers ready • CPE delivered 7 days PAN-EU/Terastream Domain 2. 0 ( DT ) ( AT&T) Network 2020 ( AM ) ( ET) CUBE-NET Novo. Net 2020 ( China Unicom) ( China Mobile) CO 2020 Essential 2020 ( TI) ( Orange) On Demand 3 days 5~10 minutes 13 13
Summary: Addressing C-E-O Issues, Achieving UBB Success Cloud On-demand Digital Dividend Content Experience Video Dividend Connect Cost Population Dividend 14 14 Source: ITU, AKAMAI UBB Broadband Development Map = （BB Total Subscriber *Average Bandwidth）/ Population
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