IoT and the Digital Divide
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1 IoT and the Digital Divide Achieving Higher Speed, Lower Latency and High Degree of Reliability Xiao Binbing Country Manager, Huawei Denmark.
2 Contents Company Overview Industry Trends The road towards higher connectivity Page 2
3 Huawei at a Glance 228 Ranking in the Fortune Global 500 ~170,000 Employees 170+ Countries A Global Leader of ICT Solutions 31 Joint innovation centers 16 R&D centers 76,000 R&D employees Page 3
4 Today, Huawei is a leading ICT company Who is Huawei A leading global ICT solutions provider A Fortune Global 500 company, ranking 228 in 2015 Top 100 Best Global Brands Market Progress US$46.5B (DKK 308 Mia) revenue in 2014 Serving 1/3 of the world's population Employees 170,000+ employees worldwide 45% or 76,000+ employees within R&D LinkedIn World's 100 Most InDemand Employers Business Areas Carrier: serving 45 of the world's top 50 carriers, Enterprise: serving more than 100 global top 500 companies Consumer: raising brand awareness to 65% *The final data announced will be based on the audit by KPMG. Page 4
5 Globalized Resource Deployment and Localized Business Operations Netherlands Silicon Valley Toronto Ottawa Germany Hungary Romania China Mexico Bahrain UAE India Malaysia Huawei headquarters Accounting shared service center Bidding center Supply center & hub R&D center Training center Technical support center Brazil Argentina Mauritius Operations in 170+ countries; 170,000+ employees comprised of 160+ nationalities worldwide; 75% localization rate. Huawei's global value chain allows smooth capability transfer across the globe, develops and retains talent in local countries, and creates jobs and economic opportunities. Page 5
6 Innovating Based on Customer Needs and Leading Technologies CNY Billion 40.8 Invest heavily in R&D on an ongoing basis. R&D investment accounts for about 10% of 31.6 annual revenue. R&D investment over the past decade: CNY190+ billion Attach equal importance to technological innovation based on customer needs and long-term scientific research Combine the technological innovations of the US, Europe, and Japan with China's R&D advantages. Build a first-class R&D system that keeps pace with industry trends and quickly delivers innovative, high-quality offerings. Page 6
7 Huawei in Denmark 250 employees, 20 nationalities 100 new jobs created Established in offices including 1 Network Operation Center 2.7 Billion DKK Investment over the next 6 year 2.2 Billion DKK Procurement over the next 6 years Page 7
8 Building one of the world s most modern mobile networks Together with TDC, Huawei has deployed a nationwide 4G network It provides 99% of the Danes with high-speed internet access. Swap of equipment on 3,600 masts The goal to build Denmark's best mobile network, measured by user experience, was reached. The network has in April 2015 been announced to be the best mobile network by The Technological Institute of Denmark. Furthermore, in June 2015 OpenSignal announced it to be the fastest network in the world. Page 8
9 Contents Company Overview Industry Trends The road towards higher connectivity Page 9
10 ICT Enables the Fourth Industrial Revolution Intelligentization Intelligentization App App App 5G Cloud IoT Big Data Everything is connected Mechanization Electrification Automation Everything is intelligent Following mechanization, electrification, and automation, we have reached the doorstep of the fourth industrial revolution Intelligentization. Intelligence is embedded into everything including business processes. ICT technologies such as mobility, cloud, Big Data, and IoT form the foundation of intelligentization. Page 10
11 ICT Is Pivotal to National Competitiveness ICT strategies of developed countries and regions Developing countries implement ICT strategies Europe Horizon 2020 Singapore Smart Nation Australia National Broadband Network National broadband strategies of Malaysia and Thailand ICT strategy of Cameroon and Rwanda Digital Agenda of Mexico Digital Agenda of Chile National information society plan of Argentina Computers for All program of Brazil ICT has become a core national competency. Developed countries are pushing ICT advancements further, such as Singapore's Smart Nation plan and Germany's Industry 4.0. Developing countries are stepping up efforts to implement their ICT strategies, including those for national broadband, e-government, and e-education. For each GCI* percentage point increase the GDP per capita increases 1.4~1.9 percent. GCI: Huawei Global Connectivity Index Page 11
12 ICT Energizes Enterprise Production Systems and Provides Smart Functions to Boost Efficiency and Innovation ICT is fully integrated with vertical industries and energizes enterprise infrastructure, smart products, and customer platforms. Manufacturing Procurement Office HR Marketing R&D Logistics & Warehousing ICT transforms enterprises' information, logistics, Finance Education Manufacturing Energy and capital flows to bring significant efficiency gains and innovative business models. These include the C2B2C model that relies on Retail Healthcare Transport Agriculture customization and the C2(B)2C model that depends on the sharing economy. Page 12
13 ROADS has Become a New User Experience Benchmark Real-time On-demand All-online DIY Social Work, health, entertainment, consumption, communication, payment ICT infrastructure: Faster, broader Scenario-based: Timely, on-demand Real-time content: Responsive, easy to share Smart devices: Multi-screen, diverse Page 13
14 New Technologies Power up ICT Innovation Graphene Nanotechnology Quantum computing & communications New energy New batteries Robotics/AI Genetics & biotechnology Self-driving Page 14
15 A Better Connected World is Coming and Connectivity is Becoming a New Normal people 4 billion new Internet users cities 27 cities will house more than 10 million people devices connectivity To billion smartphones in use 100 billion connections content 1.7G data usage per person per day usage USD 3 trillion mobile payments Page 15
16 Contents Company Overview Industry Trends The road towards higher connectivity Page 16
17 Page 17
18 4.5G Paves the Road to 5G Maximize ROI of 4G Stimulate demand for 5G Extend market leadership from 4G to 5G Page 18
19 LTE Evolution to Mbps user thp 1K connections / cell 50ms E2E Latency 1Gbps user thp 100K connections / cell 10ms E2E Latency 10Gbps user thp 1million connections / cell 1ms E2E Latency (first commercial) G 4.5G 5G Page 19
20 Example: New Business Expansion VR & AR ciot - Smart metering UAV - Drone Aircraft Wearable devices ublox module Neul chipset Smart meters Gbps Speed 100k con./cell 10ms latency Page 20
21 All Industries can benefit Public safety Smart City Government Power Transportation Finance Education Media & Entertainment ISP Page 21
22 Leading 5G Innovation through investments and partnerships Driving force of 5G: mobile Internet Broad and seamless coverage 100 billion connections Superfast data speeds in hotspots Smart sensors 10 Gbit/s data rate Driving force of 5G: IoT (new scenarios) Low latency, high reliability 8K ultra-hd video Low power consumption Massive connections 1 ms latency Self-driving Collaborate with industry players to jointly define 5G standards. Participate in EU projects; co-establish the 5G Innovation Centre (5GIC) in the UK; conduct joint research with over 20 top universities; lead efforts to research and design radio link technology for 5G air interfaces in the METIS Project. Invest heavily in 5G at least US$600 million by By 2015, Huawei had established 10 5G research labs with over 500 5G experts. Page 22
23 Thank you Copyright 2015 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. Page 23
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