1. www.huawei.com Preparing for the Future Technology Trends - LTE Focus - Ihab Ghattas Assistant president Middle East Region

2. HUAWEI TECHNOLOGIES CO., LTD. Page 2 2.LTE in the Industry 1.Future Technologies 3.LTE Deployment Strategy Contents

3. HUAWEI TECHNOLOGIES CO., LTD. Page 3 1.Future Technologies

4. HUAWEI TECHNOLOGIES CO., LTD. Page 4 Mobile Broadband Technologies are Emerging OFDM, All-IP, MIMO & AAS are the key technologies of new & future wireless standards

5. HISILICON SEMICONDUCTOR HUAWEI TECHNOLOGIES CO., LTD. Page 5 Mobile Broadband Evolution 200520062007200 8 2009201020112012 or later LTE DL: ~384Kbps UL: ~384Kbps DL: ~14.4Mbps UL: ~5.76Mbps DL: ~42Mbps UL: ~11Mbps DL: ~141Mbps UL: ~50Mbps HSPA+ ~ 100 ms ~70 ms ~45 ms ~15ms 3G-WCDMA HSPA Increasing BandwidthDecreasing Latency

6. HUAWEI TECHNOLOGIES CO., LTD. Page 6 LTE offers considerable Efficiency gains compared to other network types Technology Basic W-CDMA HSPA (2x5MHz) LTE (2x5MHz) Monthly downlink traffic230TB (5MHz) 500 TB1800 TB Typical cost per Megabyte at max. use of the network (Downlink) EUR 0.06EUR 0.03EUR 0.01 Modeled for a 10 000 base-station network deployment [Source: Analysys Research - Global Mobile Broadband: Market potential for 3G LTE, Jan.2008]

7. HUAWEI TECHNOLOGIES CO., LTD. Page 7 Capacity of typical LTE, HSDPA, HSPA+ and W-CDMA networks to carry TV content [Source: Analysys Research - Global Mobile Broadband: Market potential for 3G LTE, Jan.2008]

8. HUAWEI TECHNOLOGIES CO., LTD. Page 8 Main Future Competition – LTE & WiMAX RNC CN NodeB aGW eNodeB It’s an evolution & revolution from HSPA to LTE How to protect existing investment through smooth upgrade? LTEWiMAX Competition LTE is 2 years later than WiMAX wave1 (performance comparable to HSPA), furious competition IP transmission network SAE GW Large amount of IP transmission resource is necessary for LTE & WiMAX

9. HUAWEI TECHNOLOGIES CO., LTD. Page 9 2.LTE in the industry

10. HUAWEI TECHNOLOGIES CO., LTD. Page 10 LTE Subscribers & Revenue Growth Forecast Subscribers (Million) Services contribution to Revenue Revenues (EUR Billion) [Source: Analysys Research - Global Mobile Broadband: Market potential for 3G LTE, Jan.2008]

11. HUAWEI TECHNOLOGIES CO., LTD. Page 11 The Opinion about LTE in the Industry (Research Companies) Nearly 300,000 LTE Base Transceiver Stations will be installed by 2014, according to a study from ABI Research in Jul 2007. Network operators will invest a total of almost $18 billion in LTE capital infrastructure over the period to 2014. LTE is the edge tool of FMC, and LTE will act as the leader of the mobile communication, keep the competitive ability of UMTS in the next 10 years.

12. HUAWEI TECHNOLOGIES CO., LTD. Page 12 The Opinion about LTE in the Industry (Operators) Promoter and Steady supporter of LTE AT&T says its next-generation roadmap leads to LTE, though it's evaluating the use of WiMAX technology for backhaul. But they haven’t excluded the possibility of WiMAX technology at this point.— Jun 2007 NTT DoCoMo Announced to start LTE test since Jul 2007, which plan to release commercial network in 2009, and hope LTE can smoothly evolve to 4G in 2011~2012 Most GSM operators believe GSM->WCDMA/HSPA-> LTE is the right choice. But some operators such as Sprint Nextel 、 Clearwire and Sistema (Russia) still hope to deploy WiMAX for the mobile broadband solution

13. HUAWEI TECHNOLOGIES CO., LTD. Page 13 LTE/SAE Technology Life Cycle LTE (Long Term Evolution), a 3GPP concept, defines a long-term evolution for radio access technology. SAE (System Architecture Evolution), a 3GPP concept, defines a long-term evolution for core network. LTE and SAE have been approached independently, however by enhancing each other, they are no more separable today. 2006 2007 2009 20102015 2008 Initial study completed Standard aimed to be finalized Trial start Commercial deployment start Year Mass deployment Standard aimed to be developed Source: 3GPP &UMTS-Forum

14. HUAWEI TECHNOLOGIES CO., LTD. Page 14 3.LTE Deployment Strategy

15. HUAWEI TECHNOLOGIES CO., LTD. Page 15 LTE Roll Out Strategies by Scenario For such operators who prefer LTE to UMTS R99+HSPA LTE UMTS Hot spot /Dense Urban Urban /Sub Urban Rural For such operators with heavy UMTS investment LTE  For those operators with heavy UMTS investment, LTE can be deployed as a complement at hot spots for higher capacity and better user experience.  For those operators with less or no UMTS investment; who prefer LTE, LTE can be deployed at wide area together with UMTS network. R99+HSPA HSPA LTE HSPA

16. HUAWEI TECHNOLOGIES CO., LTD. Page 16 Huawei LTE Deployment Timeline Prototype 1 L1&L2 Functionality 1 st Commercial Small Scale network 3rd Commercial Enhanced Commercial network Prototype 2 L3 Functionality 2 nd Commercial Commercial network June 2010 June 2011 Nov. 2007 Dec 2008 June 2008 June 2009 Prototype SAE architecture Pre-standard SAE interfaces 1 st Commercial Small Scale network 2nd Commercial Mass Deployment

17. HISILICON SEMICONDUCTOR HUAWEI TECHNOLOGIES CO., LTD. Page 17 Huawei and the LTE Industry Main contributor to 3GPP LTE / SAE 280+ LTE contributions 220+SAE contributions LTE/SAE Trial Initiative Huawei is a sponsor of NGMN Alliance and participates actively in on-going projects of NGMN Alliance Huawei has become an official party of LSTI on 28th August 2007. Huawei has become an official member of LSTI Steering Board Playing a Key Role in International LTE Organizations

18. HUAWEI TECHNOLOGIES CO., LTD. Page 18 Huawei – A leader in Future Technology

19. Thank you www.huawei.com Copyright©2008 Huawei Technologies Co., Ltd. All Rights Reserved. The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions.