www.zte.com.cn Managed Services Value Appreciates Profession

www.zte.com.cn Managed Services Value Appreciates Profession

Overview Working closely with you, ZTE determines and applies effective methods for reducing and controlling capital and operational expenses. In the telecom industry, intense competition and complicated network operation and management put great pressure on operators. To achieve sustainable enterprise development in a rapidly changing market environment, operators must adapt business and management changes in both high-growth markets and developing markets for management efficiency improvement and cost reduction. ZTE Managed Services helps operators deal with operation and maintenance challenges caused by technology updates and network convergence, develop core business, improve operation efficiency, network quality and user experience, and achieve cost reduction and revenue growth. 02 03

OPEX Saving and Efficiency Improvement Network Assurance and Improved Customer Experience Create Value Increasingly Focusing on Core Business Less Time to Launch New Services Benefits ZTE Managed Services is a trusted long-term solution that allows operators to focus on core business and market share. In close cooperation with operators, this solution intends to keep and improve network availability and reliability, maintain high network quality, and improve end-user satisfaction. The following is a summary of benefits of ZTE Managed Services solution. Network Assurance and Improved Customer Experience With considerable experience and professional competence, the team responsible for the Managed Services solution is capable of meeting the needs of operators for network assurance, improving network performance with prompt response, handling faults without service interruption, and supporting continuous service and Focusing on Core Business Operators become aware that it is vital to change focus from technology to customer and service. Routine network operation, although still very important, should not be considered as the core competency of an operator. By choosing Managed Services and outsourcing operation and maintenance, operators can be relieved from complicated technical Less Time to Launch New Services Operators can mobilize resources to meet the network and service growth requirements. Lack of experience may prevent quick launch of new services due to rapidly changing market and technology. ZTE Managed Services help operators adapt to new technologies. Operators will be benefited from quickly launching new services and sharing Create Value Increasingly After long-term cooperation with operators, ZTE can profoundly understand local market and the challenges faced by the operators, and develop more targeted solutions that help the operators to create more value. On the one hand, ZTE provides operation and maintenance intelligence and improves operation and maintenance efficiency by implementing OPEX Saving and Efficiency Improvement ZTE provides centralized network management and innovated field maintenance management to avoid potential risks and reduce costs. Furthermore, ZTE supports organization and workflow optimization based on the actual operation conditions. The optimization reduces unnecessary and overlapping positions, and thus improves customer experience oriented network issues and focus on the core competence ZTE s global expertise and leading standardization processes, and integrating operation efficiency and shortens the optimization. All these capabilities help such as strategies, marketing & sales, technologies. and deploying advanced operation tools. incident escalation process. operators enhance end-user satisfaction. customer care, and billing. ZTE will deal On the other hand, ZTE help operators with all technical issues for the operators. design sound business development strategies to achieve revenue growth through long-term tracking and analysis of the market and end users. 04 05

Telecom Network Enterprise/Government Network ZTE Managed Services Solution Business Operation Consultancy Customer Experience Management Stable Effective Controllable Advanced Service New Service Launch Consultancy Service Provisioning Management Service Quality Management Network NOC Operation Field Maintenance Performance Management Spare Parts Management CPE Management Energy Management OSS Integration and Transformation IT System Management ZTE Managed Services is a solution that can be tailored to meet different requirements from customers. Through the large number of projects around the worlds, ZTE have established the advanced delivery capability, accumulated rich experience in network operation and maintenance, HR transfer, asset management, contract management and other operation management capability. In addition, new technologies and tools, such as CEM and SQM, are applied in the solution to improve delivery quality and help operators develop more business opportunities and create more value. Network Operation and Maintenance ZTE provides traditional Network Operation and Maintenance services for various technologies (CDMA, GSM, UMTS, LTE, FTTx, and IPTV), such as NOC Operation, Field Maintenance, Performance Management, Spare Parts Management, and CPE Management. In order to improve operation and maintenance efficiency and reduce the cost, ZTE extends the outsourcing model to support network equipment maintenance. The extended services include Energy Management, IT Managed Services, and OSS Integration and Transformation. By using these services, operators are released from network operation and maintenance to focus on their core businesses. Service Operation Management With the growth of data services, operators focus more on service KQI than network KPI, and service quality management becomes more important. ZTE supports effective monitoring, analysis, and optimization to improve the quality of services. Meanwhile, necessary support is available for launching and provisioning new services, assisting operators expand their businesses. Business Operation Support ZTE can monitor and analyze customer experience indicators and find the causes that affect customer experience based on a large amount of key service performance data and user data from different dimensions. The business operation support prevents customer churn and profit decrease and achieves better business operation for operators. Z T E c a n p r o v i d e c o n s t r u c t i v e suggestions for business operation in the local market of operators based on the analysis results, and help operators design business development and expansion strategies and plans. 06 07

Cooperation with morn than 3,000 Local Service Partners 400 350 300 250 200 150 100 50 0 Our Advantages Southeast Asia Asia and Pacific Russia South Asia North Africa South Africa Middle East Middle-West Africa India East Europe West Europe North America North Europe South America Global Delivery Experience ZTE has won more than 125 global Managed Services contracts, covering 160,000 sites and 140,000,000 subscribers of 45 operators and more than 132,000 kilometers of OFC maintenance, set up 14 regional service platforms serving over 100 countries and regions around the world, and secured abundant O&M resources. ZTE is able to provide the most competitive customized O&M services for customers around the world through global distribution of resources and efficient organizational management. Strategic Partnerships ZTE has more than 3,000 certified service partners in the whole world. The partners come from various industries, such as logistics, network buildup and construction, equipment installation and commissioning, operation and maintenance, and consultancy support. ZTE builds up partnerships with leading logistic companies. Poland Polkomtel Austria H3G Europe Saudi Arabia Atheeb Saudi Arabia STC Saudi Arabia Zain CIS Uzbekistan UCELL Tajikistan TKMobile Indonesia HCPT Nepal Ncell Pakistan Telenor Pakistan CMPark Pakistan Moblink Malaysia Digi India Aircel/MTS/TTSL Canada PMI Venezuela CADAFE Colombia Comcel Colombia Telefonica Chile Telefonica Middle East China Asia North America Africa South America Egypt Etisalat Ghana GLO MTN Nigeria/Swaziland Kenya Orange Telkom South Africa Cell C Angola Mundo Startel China Mobile China Unicom 8 9

Professional Service Tool Set Service Unified Interface Platform &Comprehensive report Present CEMC SLA SQM Resource CM/SA RM PMS FMS E-Flow WFMS B2B ESB ITNMS NE, NMS, Probe IT TT & WFMS ZTE Service Tool Set is a set of special tools covering all network services and resources and different phases, from service provisioning to service assurance. ZTE Managed Services and ZTE Service Tool Set can be combined to ensure smooth, easy, and efficient routine operation. Resource management, service activation, and workforce management supports the provisioning of end-toend services. Unified fault management, performance management, integrated IT network management, and electronic operation & maintenance flow (E-Flow) support comprehensive Multi-Technology Multi-Vendor (MTMV) network management and electronic operation & maintenance works. Customer Experience Management Center (CEMC) and Service Quality Management (SQM) tools are used to upgrade operation & maintenance features from the network layer to the business, service, and customer layer. All network operation & maintenance tools can be accessed, centralized, and integrated through the Portal. Service Level Agreement (SLA) presents network indicators, business indicators, and operation & maintenance indicators for unified management, and supports statistics and visualization of network quality and operation &maintenance actions. Enterprise Service Bus (ESB) supports integrating the service tool set with the existing tools of other vendors. 10 11

Transition period HR Solution Critical Successful Factors Comply Law Closely Partnership Respect Individual Seamless Transition TUPE Customer Care for Hearts & Minds Transfer Plan Local Labour Law Incumbent MSV Business as Labour Union/ Usual (BAU) Work Council Risk Mitigation Post-Transition period In order to meet the requirements of customers, ZTE provides the whole set of HR solution for Diversity Channels HR Planning Reasonable Transformation Design Corresponding Training MS project. It includes HR transfer, Organization Transformation, Performance Management and etc. According to the best practice, we think these factors as following pictures are very important Recruiting Training System Knowledge Management Matched to Career Path during different period. During Transition period, if there is need to transfer employee, we focus on local law, setting up the closely partnership, how to respect transferred employee and Critical Incidents detailed transition plan; during operation period, Inputs to Training & we provide effective ways to Human Resource Better / Match Reward Allocation Management corresponding our MS strategy. Employee Relationship Reward System Performance Big Family Evaluation Culture Harmonization Multi-national Working Environment 12 13

Global Network Operation Centers Global Network Operation Center in Delhi, India Global Network Operation Center in Budapest, Hungary GNOC The Global Network Operation Centre (GNOC) in Delhi, India is the largest NOC of ZTE outside with ZTE Global Customer Support Center (GCSC) in China and Local Customer Support Center (LCSC) in to telecom operators in India with the aim of reducing their total operation and maintenance costs, including the On M a y 2 n d, 2 0 1 2, Z T E l a u n c h e d a n e w G l o b a l Network Operation Center a fault handing center, a network performance optimization center, a call center, and a spare part management partners in Europe. With the rapid market expansion, ZTE increases investments in Europe. The GNOC is a China, which remotely manages and Delhi, India to enhance cooperation following three key services: (GNOC) in Budapest, Hungary, which and repair center. new investment about ten million Euros. monitors services for Indian telecom between ZTE and telecom operators. is intended to improve management ZTE, having a subsidiary in Hungary, operators. ZTE has invested over US $4 These three centers serve as backup Utility Network Management System quality for telecom operators and T h e n e w G N O C, w h i c h c a n b e chose Budapest as the location of the million dollars to set up the GNOC. The to each other. Deployed with the (UNMS) supports personalized expand delivery capacity in Europe expanded to 600 square meters, can GNOC due to good humanities and GNOC establishment is an important latest ZTE equipment and advanced service management depending on for ZTE. Based on the new GNOC, accommodate 100 technicians and natural environment of the city. part of ZTE s global strategy and the technologies, the GNOC provides a the needs of different operators. ZTE provides European telecom experts. It is capable of managing GNOC becomes a showcase of ZTE s excellent engineering capabilities. Spreading over 15,000 square feet, the GNOC is located in Gurgaon and has 200 employees, including 80% local employees. The GNOC is integrated unified management platform that helps Indian telecom operators reduce their Total Cost of Ownership (TCO). Tata Teleservices is the first operator to use the services provided by the GNOC. The GNOC provides various services Resource Management System ( R M S ) m a n a g e s n e t w o r k a n d business resources effectively. Electronic Operation & Maintenance System (EOMS) supports effective duty management. operators with high speed, qualityguaranteed, and efficient management services. The new GNOC, providing a comprehensive management service solution, consists of a customer service center, a network monitor center, up to 40,000 network elements, and supervising and managing almost all types of elements in fixed networks and mobile networks. ZTE has lots of projects and great 14 15

Reference Cases On March 2010, H3G Austria chose ZTE as its partner to deploy a high-performance and future-proof mobile broadband network. The swap of 4080 base station sites and the reconstruction of transmission and core networks were required in addition to six years of managed services. ZTE Managed Services solution provides corrective maintenance, preventive maintenance, change management, spare parts management, performance m a n a g e m e n t, c o n f i g u r a t i o n management, quality management, and expert technical support. During the swapping of H3G base station sites, large amounts of third-party base stations were replaced, and the existing auxiliary devices are reused, including power supplies, towers, air conditioners, shelters, relay nodes, S D H h u b s i t e s a n d m i c r o w a v e equipment. H3G ZTE Competitor 1 Competitor 2 Competitor 3 After ZTE completed the network deployment and took over the network operation and maintenance, the monthly SLA level exceeds 99%. One year later, the network KPIs were significantly improved due to ZTE s professional operation and maintenance. At the end of November 2011, Europe s largest telecommunications publication, Connect, organized a formal test on the mobile networks of eleven operators, covering various aspects such as download speed, upload Fig 1. H3G mobile network ranked first in the Connect network test 2011&2012 speed, and user experience. H3G network won the top position. H3G Austria s average rate was greater Austria was not only the fastest than that of the second-fastest network, it also achieved a score network. On September 2012, of 476 out of a possible 500 in Connect organized another test customer evaluations of overall on all networks in Austria. The test network performance, said Connect results showed that H3G Austria editor Bernd Theiss. 16 17

On April 2011, ZTE announced it had secured an exclusive three-year Managed Services project with Nepal s Ncell which is part of TeliaSonera, a leading European telecommunication company. The contract includes Managed Services for Ncell s existing network as well as all the main equipment and accessory facilities of the BTS and Node B sites for the next three years. It will include site maintenance, management of equipment from multiple vendors (including Ericsson/HUAWEI/NSN/ Ceragon/Harris/Emerson/Delta) and OPEX optimization. About Ncell: Ncell is No.1 mobile operator in Nepal with over 8 million subscriptions, covering all the 75 administrative districts and about 90 percent of Nepal s population In October 2010, Ncell launched mobile data services in the world s highest location in the Mount Everest area Improved network efficiency -> Better service assurance Global MS standardization and experience lead to MS process optimization and efficiency improvement 1st, 2nd MS & 3rd line MSS collaboration brings productivity improvement and higher response of network Faults ZTE MS Solution and Customer Benefits: SPOC -> Simplified network management Network Performance Management -> Stable and improved network quality Improved infrastructure management -> At least 15% OPEX Saving for Ncell Since 2011, Ncell has had the best mobile network quality in Nepal confirmed by third party surveys and tests. From http://www.teliasonera.com Operator Time Market Position Market Share 2010 2 42% 2011 1 49% 2012 1 53% 18 19