ZTE G-Partner Energy Service.

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2 About Us Experienced in researches on network energy solutions for many years, the ZTE energy service team focuses on network energy consultation, analysis, design, planning, optimization, visual &control, even provides a full-process integrated energy solution covering the whole energy chain. The ZTE energy service team considers itself as a partner of the customers for a sustainable and green development that will bring a win-win future to both parties. About This Brochure ZTE G-Partner Energy Service Promotion Brochure is a marketing promotion document that describes the definition, service range, service object, and service content of the energy service for the internal and external customers. This brochure briefly focuses on the concept of the energy service. For the detailed business mode, technical content or solution delivery methods, please contact the brochure provider, Contact with: [email protected]. 2 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 3

3 Network Energy Challenges Facing the Enterprises As one of the biggest part of the OPEX that a telecom operator has to cover, the expense of network energy restricts enterprise competitiveness. With the coming of large data era, the network scale becomes increasingly huge and complicated. Because basic network energy equipment is the heart of network energy, delicacy will reduce the OPEX efficiently. Total MNO Network OPEX Distribution 10% Energy Others 9% 30% O&M Site Rental/Lease 36% Backhaul Lease 15% Telecom Operator OPEX Pie Chart, *Source from DETECON Analysis Challenge of Network Energy Management In the telecom network system, usually, less importance is attached to the network energy than it deserves. This results in network energy that is not planned systematically or in a unified way. Increasingly scattered construction and operation of the network energy keep the OPEX at a high level and also becomes a potential safety problem to the future network expansion Insufficient consultation and analysis before investment Insufficient systemical planning in construction Insufficient optimization in operation Insufficient scientific process guarantee in Figure 2-Panoramic View of Network Energy Management Challenges 4 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 5

4 Challenge of Network Energy Management In the energy efficiency matrix, a network energy life cycle consists of production, transformation, transmission, and consumption. Therefore, the challenge of network energy life cycle can be divided into two parts: the challenge of energy supply and the challenge of energy conservation. Electric Consumption Transmit Transfor Produce ZTE Energy Efficiency Structure Figure 3-ZTE Energy Efficiency Matrix Challenge of Energy Supply In an area with insufficient mains supply, usually, the telecom operator uses diesel generators to supply power. This costly method brings the following difficulties to enterprises: High cost of fuel High expense for buying and maintaining the diesel generators Complicated and uncontrollable process of the fuel recharge Inevitable fuel pilferage Air and noise pollution Insufficient mains supply No mains supply along a road No mains supply in the countryside No mains supply in a remote island Frequent power failure of mains supply Unstable mains supply Seaonal power shortage High power cost Figure 4-Difficult Power Supply Scenarios Diagram 6 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 7

5 Challenge of Energy Conservation The increase of energy efficiency cannot be realized by a single solution. We should use an overall closed terminal-to-terminal service solution which covers from process to the use of highly efficient equipment. As an effective method, energy is increasingly accepted worldwide by telecom operators. The challenge that the telecom operators face in network energy conservation is also the industrial challenge in the development of energy. Energy Conservation Challenge in Daily Operation: Insufficient importance is attached to the PLM and to the investment on energy conservation to reduce the TCO. Management service contracts only cover O&M but rarely cover energy conservation. Lack of an integrated conservation solution for the telecommunications network Lack of an effective means or a tool to calculate and analyze energy consumption Lack of cooperation experience in the EPC between the operators and equipment suppliers Energy Conservation Challenge in Special Scenarios: Use of batteries in extreme weather Indoor stations restricted by space in the case of insufficient conditions for outdoor base stations Difficult technical and logical control of mixed batteries Energy supply in a hidden place where long-term, safe and effective power supply is required Energy conservation in a base station Energy conservation in an equipment room Shelter Base station aitconditioner Precision airconditioner Power supply UPS Batteries Power distribution Generator Figure 5-Energy Consumption of Key Equipment in Telecom Network Diagram 8 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 9

6 Network Energy Consultation and Assessment Service This service is divided into two parts: network energy development consultation and network energy application assessment. This service provides customers with a professional and comprehensive network energy development proposal from the point of view of a third party. Network energy application assessment Network energy development consultation Figure 7-Network Energy Consultation and Assessment Service Diagram With technology advantages and rich experience, we provide customers with leading network energy consultation and assessment methods and professional network energy tools: Consultation on the network energy construction evolution path Consultation on network energy optimization Assessment on network energy investment Assessment on network energy applications ZTE Energy Service Overview Network Energy Design and Planning Service The ZTE energy service whose service process and content are designed in accordance with PDCA cycle is a comprehensive and sustainable network energy solution to reduce the OPEX for the customers. In accordance with the network energy development stage and actual application scenarios, the ZTE energy service can be divided into four parts, and the service process of each part is managed and controlled in a closed-loop manner: Network energy consultation and assessment service Network energy design and planning service Network energy optimization service Network energy service Network energy design and planning are important to the whole network energy safety and network operation consumption. Either to create a new network or optimize an old network, ZTE provides customers with a comprehensive and professional network energy design and planning: Design and planning of energy supply for a base station Design and planning of energy storage Design and planning of a thermodynamic model Design and planning of base station safety Analysis and diagnosis Optimization Effectiveness tracking Continuous improvement Figure 6-Energy Service Process Diagram 10 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 11

7 Network Energy Optimization Service Network Energy Management Service Network optimization is to reduce network energy consumption and the TCO. Based on different network energy application challenges, the network energy application scenario can be divided into four parts: network energy production, network energy transformation, environmental assistance, and network energy storage, to which ZTE provides various optimization services: Network energy is consumed during operation, and therefore network energy is sustainable. As the nerve center of the network energy service, the network energy is based on the ZTE self-developed energy consumption platform which can be divided into and control. This platform is used to adjust the network energy. Plan of mixed power supply in a base station Energy production Energy transformation Plan of energy efficiency increasing Energy Management Energy Control Energy storage Environmental assistance Layer-1 Management on site Layer-2 Concentration Management ZTE Network Energy Visual Management Energy Production Supervision Energy Consumption Supervision Plan of mixed energy storage Plan of temperature control optimization Layer-3 Remote Management Energy Consumption Statistics Report Figure 8-Network Energy Service Diagram Figure 9-Network Energy Management Service Process Diagram 12 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 13

8 Benefits Brought by the Network Energy Service The ZTE network energy service is designed to reduce the telecom OPEX. The benefits brought by this service vary as the actual configurations and service plans are different. Based on the past project experiences, the network energy service could proximately reduce the OPEX by 8% to 43% in different scenarios. It will definitely bring customers common benefits although the actual OPEX ZTE Energy Service Business Overview reduction rate could be different. Fuel cost saving 15-70% CP cost saving 3-12% With great financial support, ZTE provides many energy service business modes for customers: Customer investment mode Payment based on power consumption mode Cooling cost saving 23-49% Maintenance saving 15-70% Network energy full mode Energy conservation benefit payment mode Energy conservation benefit sharing mode Energy conservation guarantee mode Management saving 8-34% CAPEX saving 10-45% Chinese Government Plant Save KPI Control Plan Optimize Analysis Estimate Figure 10-OPEX Reduced by the Network Energy Service Reduce the network OPEX 8-43% Direct Benefit Commercial finance institution Project Finance Non-bank institution More stable power supply Lower operation cost Less fuel consumption Safer power use Multilateral financial association Less carbon emission More friendly environment Less presure More importance attached to network quality Indirect Benefit Figure 11-ZTE Financial Partners Diagram Figure 11-Common Benefits Brought by the Network Energy Service 14 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 15

9 Global Case By September, 2012, 83 network energy service projects have been successfully delivered around the world, in which electricity energy efficiency of 68,000 equipment has been increased, and new energy has been used by over 70 operators in 40 countries. Optimized 10,000 sites in China Improve system efficiency by 6% Save 3,000,000 USD energy cost per year Optimized 200 sites in Pakistan Save fuel by 3,000,000L/year Save maintenance by 80% Optimized 750 sites in Telefonica Improve system efficiency by 14% Save electricity by 2760,000kWH/year Why Select Us Global Service Platform With more than 20 years of experience, ZTE has developed a global service network and global service resources to firmly support the network energy service. 6 sales and service regions with 107 branches all over the world 9 logistics hubs and 14 training centers 1 global customer support center, 7 regional customer support centers, and 45 local customer support centers A project team consisting of 68 SPDs, 151 PDs, 970 SPMs, and 1621 PMs Network energy research team consisting of over 300 staff with more than 140 patents in dynamic, electrical, and electronic fields North America, Western Europe, Eastern Europe Paris (France) Commonwealth of Independent States, Asia Pacific, Shen Zhen (China) China Beijing (China) Figure 12-Typical ZTE Network Energy Service Case Study South America, Mexico, Central America Madrid (Spain) Middle East, North Africa, South Africa Dubai (United Arab Emirates) India Figure 13-ZTE Global Sale and Service Agencies and Branches 16 ZTE G-Partner Energy Service ZTE G-Partner Energy Service 17

10 Mature Delivery Model ZTE provides a mature delivery model featured in unified interfaces, centralized, and integrated delivery. Through the Single Point of Contact (SPOC), customers can send ZTE service requests and learn about service progress and quality. With sophisticated process and automated tools, ZTE integrates internal and external resources to provide customers with worryfree experience on integrated service. Qualified Service Management System As one of the first enterprises that have passed the ISO20000 and ISO9001 certifications, ZTE has officially ranked itself in the top international enterprises in terms of competency and quality. ZTE has a full-life-cycle service support platform featured in customer, demand, research and design, contract, purchasing, customer support, asset, knowledge, and quality. ITIL/IS BASED SERVICE QUALITY MANAGEMENT SYSTEM Target customers Service experience Customer Personnel SLA Service station Service website Service manager Satisfaction investigation Remote support On-site support Expert support Spare parts support KPI Communication on site Customer GCSC ZTE GCSC O&M assurance Service system Server Storage Backup Database Application Service optimization Technology Process Service tools (monitoring and O&M ) Event Problem Change Availability Service process Service station SLA Spare parts Emergency Service report Service Knowledge Project Service switching Project plan Quality Service system Security Desktop Engineer support on site Local service center Local logistic hub Optimal IT practice Instruction theories IS020000/IS0900A/ITIL/PMI Figure 14- ZTE Network Energy Service Delivery Model Diagram Figure 15- ZTE Service Management System Based on ISO ZTE G-Partner Energy Service ZTE G-Partner Energy Service 19

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