1. «Worldwide ICT Development Experience» International ICT Round Table | June 24 Uzbekistan, Tashkent Paul Scanlan President, Business and Network Consulting PaulMichaelScanlan@huawei.com

2. HUAWEI TECHNOLOGIES CO., LTD. The World is changing… West -> East …Industry to Information … Several trends will influence Strategy… Climate Change, Rapid Innovation Post 2015 MDGs … SMART will change our business… SMART Cities, Transport, Energy etc. … New Business Models are essential… Collaboration, Alignment, Agreement … Mobile Internet Internet of things Advanced robotics 3-D printing Cloud technology Automation of knowledge Advanced materials Autonomous vehicles

3. HUAWEI TECHNOLOGIES CO., LTD. Economic Social Environmental SMART Living Inclusive Growth Energy Access End Poverty Growth Limits Climate Change Peak Oil 2020 Global Policy Direction Global Policy Direction Post 2015 Millennium Development Goals Digital Inclusion 2020 Technology for next 1-2 bln Sustainable Growth Food Security Collaboration Governance Safe Resilient Cities UN Climate Change Paris 2015 Improved Education Network 2020 5G IoT/ M2M SDN/ NFV SMART networking SMART Services SMART Connectivity Resource efficiency Resource management Resilience and security Resilient Infrastructure Transportation Buildings Healthcare Water Waste Education Energy Technology Homes Smart New Business Models Improved Business Value New Marketing Propositions Support Market Trends Enhanced Value Proposition Emerging Opportunities Cloud Services Virtualisation – Data, Control, Management & Services Plane Sustainable Growth

4. HUAWEI TECHNOLOGIES CO., LTD. Next 20 years will see emergence of a profound synergy between digital and physical worlds DigitalWorld Online Service e-Marketing e-Commerce Virtual Manufacturing Physical World User Service Provider Manufacturer Infrastructure Provider Government

5. HUAWEI TECHNOLOGIES CO., LTD. Stringent demands for real time communications Massive traffic growth and high density demand Wide variety and variability of services consumed Technological Progress Ultra-reliable Communications New use cases M2M, Internet of Things Interconnected Services Broadband Everywhere MIMO

6. HUAWEI TECHNOLOGIES CO., LTD. Internet of EverythingSocial InternetConnected Communications Previous 100 YearsPast 20 YearsNext 10+ Years CT IT SoftCOM = Software Defined + TeleCOM SoftCOM Connected Possibilities Smart Cities, Governance, Healthcare, Water, Lighting, Buildings, Transport, Education, Grids and Economics etc. $7.1 Trillion in 2020 IDC

7. HUAWEI TECHNOLOGIES CO., LTD. Network 2020 Resource Management Circular Economy Energy Management Multi-Trillion $ Opportunity Smart City $1.62 Trillion Globally in 2020 Rural Environment Open Agile COTS Programmable Scalable Virtualised Managed Automated Smart Transportation $104Bn Global Smart Buildings $21.9Bn Smart Healthcare Trillion- Dollar Smart Water Market worth $3.3Bn Global Smart Waste $705Bn Smart Education $344Bn Smart Energy Market worth $400Bn Global Smart Technology $60Bn Smart Homes $47Bn The digital age will transform the nature of industries

8. HUAWEI TECHNOLOGIES CO., LTD. APPLICATIONS, MANAGEMENT, ORCHASTRATION AND CONTROL SDN NFV CLOUD MSA - Multi Stream Aggregation MCA - Multi-RAT Carrier Aggregation ICTnomics - (ICT + Economics) the integration of ICT into a wide range of industries LTE network cooperation Higher Energy Efficiency ， Lower Cost Infrastructure ， RapidTTM ， Scalable ， OPEN M2M / IoT 10 x Battery Life 50-500bln devices Low Latency 1-5ms 10-100 x User connections Accelerated adaptation to customer demands Improved resource availability and usage efficiency Customization of network resources service-aware networking Programmability Resource abstraction Layers 0-3 Virtual Application Orchestration & Automation Layers 4-7 SMART City M2M, IoT, IIoT, WoT, CoT Faster network business cycles Acceleration of innovation Rapid Service Development 5G 10 x Battery Life 50-500bln devices Low Latency 1-5ms 10-100 x User connections 5G CLOUD

9. HUAWEI TECHNOLOGIES CO., LTD.

11. 5Green Sensors Resilient Integrated Traceable 3D Printing Connected Localised Sustainable Cloud Based Software Defined Networks Internet of Everything 2020 and beyondBuilding resilient and sustainable solutions Addressing Climate Change and Global Warming Smart Cities Living in the Cloud Smart Citizen Collaboration Smart Grid Smart Education Smart Healthcare Technology Environment Economy Society ICT New accounting methods/Environmental Economics Circular Economy/Genuine Progress Indicator Index of sustainable economic welfare Reduce - Inform Recycle - InspireReuse - Involve

12. HUAWEI TECHNOLOGIES CO., LTD. Broadband to 90% of the rural population Broadband to 55% of households Decrease of 30% Gas emission by ICT sector ICT environment conducive to innovation

13. HUAWEI TECHNOLOGIES CO., LTD. Information acquire Transport Working Shopping Make Payment Social Contact Advertising Learning Low cost Fast Convenience

14. HUAWEI TECHNOLOGIES CO., LTD. No digital-core Additional Digital Disruption (Mobile internet, IoT …) Current use of digital technologies (industrial automation control…) Source: Deloitte

15. HUAWEI TECHNOLOGIES CO., LTD. Broadband Connects & Enables Everything Lives Traffic Education e-Commerce Security Productivity Economics Employment Healthcare Energy Competitiveness

16. HUAWEI TECHNOLOGIES CO., LTD. LeadershipInvestmentPromotion  e-Government service as the promoter for broadband diffusion especially in remote/rural areas  Stimulus policy for economic disadvantage people & rural area  Human capital and e-skill development to promote ICT adoption and eliminate e- illiteracy  Promote ICT application across industry to realize digital economy NBN  Government-led national development initiatives  Mandating digital inclusion and universal coverage  Favor network openness promoting fair and service-based competition  Government intervention on tariff to reduce broadband threshold  Tier bandwidth supply by demand and service cost. Urban > 10Mbps; Rural > 2Mbps  Public-Private Partnership, incumbent involvement, fast deployment, cost saving  Direct Government financial involvement to offset high CAPEX requirement  Hybrid access technology leverage fixed and wireless technologies to achieve investment efficiency  Collaborative infrastructure construction to reduce CAPEX

17. HUAWEI TECHNOLOGIES CO., LTD. e-Tourism Government Hotline e-Registration Department Collaboration Public Security e-Educatione-Payment e-Customs e-Park Emergency Command Smart Traffic Document Exchange Management Civilian Service Government e-Portal e-Health e-Taxation e-Licensing

18. HUAWEI TECHNOLOGIES CO., LTD. “Innovation Economy: Paving the Way to Prosperity" --- DATO’ SRI MOHD NAJIB TUN ABDUL RAZAK Prime Minister of Malaysia GDP Per Capita Change Malaysia National broadband Initiative was launched from 2009 Source: Malaysia USP report, World bank Netbook Subsidy Increase Internet Access Point Connect Remote Village HSBB BBGP 10+ Mbps 2+ Mbps Supply Demand Internet Penetration Rate World financial crisis

19. HUAWEI TECHNOLOGIES CO., LTD. 10 % Increase of Broadband 1.38 % Increase of GDP 3%3% Increase of Employment Rate 3.6 % Increase of Productivity Zhao Houlin Secretary-General, ITU

20. HUAWEI TECHNOLOGIES CO., LTD. Whole 166 countries AVG IDI = 4,77 Uzbekistan has occupied 115 th place globally in terms of ICT Development Index IDI = 3,40 Fixed Broad Band Mobile Broad Band Use Index Access Index Subscriptions per 100 inhabitants < 2% < 22% < 7% 75% EGDI (E-GOV Development Index) - 2013 Uzbekistan ranked 100 globally with EGDI = 0,4695 The most critical factor is TII (Telecom Infra Index), which closely related with Broad Band development Measuring the Information Society Report 2014 | ITU E-GOVERNMENT SURVEY 2014 | UN IDI (ICT Development Index) - 2013 4% YoY 3,40 Uzbekistan

21. HUAWEI TECHNOLOGIES CO., LTD. Practical changes of people life quality, openness for enterprises People & Enterprises e-GOV Participation On-line services Data Openness Transparency Information Security Ensure safety Legal Framework IDI 4 % YoY Broadband Basement Technology enabler ICT Development Index Mindset change

22. HUAWEI TECHNOLOGIES CO., LTD. TurkeyICT 2013-2023$ 32 B - $ 160 B BelarusICT 2015-2019$ 1.2 B - $ 9 B KazakhstanICT 2013-2020$ 1 B – $ 8 B UzbekistanICT 2013-2020$ 1 B – $ 3 B GeorgiaICT 2014-2018$ 0.8 B - $ 6 B UkraineICT 2013-2018$ 0.6 B - $ 1.2 B AzerbaijanICT 2013-2020$ 0.3 B - $ 1.2 B Source: Country ICT report 2014 ICT ProgramICT Scale

23. HUAWEI TECHNOLOGIES CO., LTD. Infrastructure Deployment Infrastructure Expansion Utilization Expansion and Integration Stage Objective e-Gov Deployment of fundamental network Infrastructure  100% village with fiber connection  e-Government service on-line  Investment in e-Human Capital Expansion of broadband network coverage and Internet usage Integration of information resources, advanced utilization of knowledge and information Utilization of national knowledge resources; integration of nationwide information resources +10 e-Government initiatives: e- Custom, e-Education, e-Health, SmartCity, etc Target 2015-20172017-20192020 ~ 200G Internet Gateway 100G Backbone 25 % Fixed Broadband households penetration @8M average speed National GSM/UMTS Net National DataCenter 1T erra Internet Gateway Backbone 70 % Fixed Broadband households penetration @100M~1G avg speed 5G Network SmartHome, DigitalSocienty 1T erra 500G Internet Gateway Backbone 50 % Fixed Broadband households penetration @20M average speed National LTE + WiFi Net IDC based: B2B/B2C on-line 400G

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