47pt

Whole Network IP Era is Coming

Aug 20, 2007

www.huawei.com

HUAWEI TECHNOLOGIES Co., Ltd.

Huawei Confidential

Agenda

l l l

ALL IP Mobile World is coming IP Trend and Huawei Strategy Accompany You into IP World

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Huawei Confidential

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Future Mobile Network Overview For better experience

Applications

GSM/EDGE
Voice

TD-SCDMA
Video

Cafe

Working

Office

Watching TV

CDMA
Subway Learning

WCDMA
Game
Home Driving

MTV

Wi-Fi
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Messaging
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WiMAX

New Business Model Bring New Challenges

Value changes: Voice to Content
60 A R P U (E u ro p e r S u b .) 50 40 30 20 10 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Voice Data

Convergence: Single Network, All Services

ISPs ICPs Multi-Play Service M & I Platform ICT Service IT Platform ASPs SWP

MM Comm. Platform

Backbone MSE Metro Fixed Access

At Home At Park

Mobile Access
Walking On Car

Broadband: More Transmission Requirement

1995 2000 2005 2010+
WCDMA Evolution

Ubiquitous Coverage: Seamless Mobility

OF

DM

/M IM O

/AA

WCDMA GSM CDMA2K 1G (Analog) IS95 2.4GHz WLAN 5.8GHz WLAN

CDMA2K Evolution

802.16e WiMAX 802.16d WiMAX

~14.4kbps

144kbps

384kbps

50Mbps

100Mbps

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Long-Term Network Arch. & Key Techs

GLL Generic Link Layer OSL-- Overlay Support Layer NRAL- Network Resource Abstraction Layer TS Traffic Shaper FSC Protocol Specific Control P&DM -- Process & Decision Marking QM&SM Queue Mng. & Stream Mng.
CCS- Common Control Space MARM Multi Access Resource Mng. SSLONC Service Specific Overlay Network Control SSDS-Service Support & Delivery Space NCA Network Capability Abstraction SEE Service Execution Environment SCE Service Collaboration Environment SME Service Management Environment

NCA

SEE

SCE

SME

Service Support and Delivery Space

ISPs ICPs

Multi-Play Service

ICT Service

ASPs SW

MARM

Session SSLONC Mobility

SDP-Service Delivery Platform DB IMS NASS RACS Backbone S-POP Metro S-POP

Common Control Space

TS

FC&A

P&D M QM&SM

Network Resource Abstraction Layer

OSL Overlay Support Layer
OSL OSL LanSW OSL xWDM Router

Fixed Access Copper Fiber Terminals

Mobile Access Wireless

GLL Generic Link Layer

GLL WLAN GLL Wimax GLL 3G/4G

Long-Term Network Arch. & Key Techs. ALL IP is the key

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 5

ALL IP Mobile World is coming

Success story: Simplified and reliable core network (TMSC and VMSC) over IP for CMCC

BSC/RNC

IP

Mobility
Data
IPTV

CS
Video

PS

BTS/Node B

TriplePlay Video VoIP Comm.

IMS
From 2004 Core Network Over IP

From 2006 Radio Network Over IP

Success story: HSPA over IP, decreasing transmission cost up to 95% for eMobile in Japan

Voice

From 2000 Services over IP

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Leading Operators Are On The Way

Evolution TCO Saving

Deploying Mobile Softswitch Solution, including multiservice IP transport since 2006. Deploy its IP-RAN optimization solution for TMEs GSM and UMTS networks. since 2006.

FMC Increase Revenue

Leader of FMC, treat IP as corporation strategy. Decided to swap legacy MSC with Softswitch worldwide in 2 years, and plans migration to IP bearer since 2008. Deployed massive Softswitch in GSM network since 2004 ( Worlds First ), and start to migrate form TDM to IP bearer. Dedicate in Abis IP transmission, plans migration to IP bearer since 2008 Deploy Softswitch in 2G CN in USA with large scale Deployed the really converged solution supports fixed and mobile network simultaneously since 2006

Evolution Network Simplify

FMC TCO Saving

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Huawei Confidential

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Agenda

l l l

ALL IP Mobile World is coming IP Trend and Huawei Strategy Accompany You into IP World

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

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Challenges Everything is changing

VoIP results in the breakdown of price system and voice is becoming a gift of new applications (such as e-BiZ).

IP era
Content & Apps. VoicewebGamee-Biz etc

Huge new Market. But It is occupied by ISP such as YahooEbayGoogle etcoperators are bypassed.

Bandwidth is increasing, but maybe no revenue because of 80-90% P2P traffic (BT, Edonkey etc).

3
Bearer Network Access Network Terminals

Price is decreasing at 20% per year because of the technology development.

Intelligent terminals lead to the independence of terminals from network. Operators lost the control of terminals and applications.

With the development of IT and IP, operators will face challenge from services, network,
value chain and business model etc.
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 9

Voice Softswitch and IMS Co-exist & Convergence

IP era
Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals
n Trial For VAS 2G Switch 3G Switch IP Softswitch TISPAN AGCF VoIMS In Mobile Mobile AGCF

IMS

Softswitch
VoBB VAS

Time 2006 2010

2006 2010: Hybrid network

n n n

Large scale softswitch replace legacy switch for efficient delivery of voice services IMS provides toolbox for rich multimedia and converged services Convergence begins at core network towards ALL IP Fully converged core network becomes a reality accompanied with widespread SIP/IMS enabled terminals
Huawei Confidential Page 10

Beyond 2010: Unified network

n

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Voice Huawei Powerful ALL IP Softswitch & IMS Solution

IP era
OAM AS HSS9820 (HLR/SHLR/HSS) MSoftx3000 (Mobile Softswitch)

Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals
n

Softx3000 (Fixed Softswitch)

CSC3300 (CSCF/BGCF)

IP Core
UMG8900 (IM-MGW)

Mobile

Huawei Strategy
n n n

Fixed and mobile convergent core network, Unified platform for Softswitch, IMS Core, HLR, SHLR, HSS Softswtich smoothly migrates to IMS QoS enabled architecture and IP networking solutions Mobile Softswitch: No.1 Global Market Share, serving 280M+ subs in 60 countries
Huawei Confidential Page 11

Extensive experiences
n

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Service Multi platforms Cooperation & Convergent

IP era
Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals
Unified User Profile
Media & Info. Platform
Based on SDP

Online Gaming/IPTV/Portal Multi-Play Services

Multi-Media Comm. Platform

Based on IMS

Multi-Media Comm.

IT Service Platform
Based on SDP

Online IT Services

ICT Services

Create a win-win business environment for all participants including CP,SP, Carriers and consumers Carriers would manage user management and control user experience, handle the billing and business value sharing and lead the service operation All services are based on IP platform & architecture
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 12

Bearer Network Packet-oriented & Carrier-Class

IP era
Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals

NG-WDM

CEMTN VS ETN

Distributed Router

E2E Network Mngt.

n n n n n

NG-WDM Packet-Oriented Optical Network; CE (Carrier-Class Ethernet) Huge flow and high reliability data transport; Distributed Router Reliability and low cost of All services & huge switch capability; E2E Network Mngt. Managed & Operational IP Network; Working with Industrial giant on ALL-IP revolution;
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 13

RAN 4 Key Issues of ALL IP RAN

IP era
Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals

IP fabric Platform can provide both large capacity and low cost
Transport Platform
ALL IP

IP interface and transport can provide high Throughput and low cost

Arch.

Service

Service & Application models are changing from CT to IT

Flat Architecture is more efficient for ALL IP era

n n

All radio access network are changing to IP rapidly, including GSM; The most distinct benefits of IP RAN are High Performance, Low TCO, and Smooth Evolution.

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IP Platform IP BSC/RNC Ensures Mighty Capability

Transport Platform
ALL IP

Huawei New Generation RNC 6810 -- Worlds first IP fabric RNC

Arch.

Service

ALL IP switch: Both in board level and subrack level

IP

ATM

Interface Module

IP Fabric GBSC/CBSC/RNC IP Fabric GBTS/CBTS/NodeB / WiMAX BTS

n

IP Switch Platform IP Switch Platform

User Plane Module Manage ment Module

Signalling Module

Huaweis new generation GBSC/CBSC/RNC are all IP Fabric. When HSPA&EVDO comes, IP fabric RNC/CBSC with large throughput is more urgent. Huaweis new generation GBTS/CBTS/NodeB/WiMAX BTS are co-platform. All BTS support IP core, IP interface, Clock over IP, IP concentrator Huaweis common and powerful platform strategy will ensure smooth evolution
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 15

IP Transport Flexible IP Transport for Fast & Economic Deployment

Huawei Iub IP Solution -- In July 2006world's first Full IP-based RAN for eMobile.
Transport Platform
ALL IP

Arch.

TDM
E1/Optical transmission network

TDM based Iub IP transmission solution

Service

Abis /Iub IP A/ Iu/ Iur IP QoS Clock over IP

n n n Packet network

MSTP

MSTP based Iub IP transmission solution

Hybrid IP Solution
TDM/Data based Iub IP transmission solution

Data xDSL

Data network based Iub IP transmission solution

TDM/xDSL based Iub IP transmission solution

IP transport are more and more urgent, especially in Abis/Iub interface; Key problem1QoS: Be ensured by Huaweis mature MPLS & Diffserv technology; Key problem2Synchronization: Huawei Clock over IP solution;
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 16

Flat Architecture Flat Architecture Ensure IP Efficiency.

Huawei UMTS AP Solution
Transport Platform
ALL IP

PSTN

Arch.

Service

MSC/MGW Flat Arch. Distributed RNC UMTS AP

UE AP

Access
(IP transmission)

AG GGSN CS traffic Internet traffic PS traffic

Internet

Application Server

n n n

Huawei is ardent in architecture optimization for ALL IP; Huaweis innovative UMTS AP solution is a positive attempt to improve IP efficiency; Huawei is active in GERAN/LTE/NGMN/UMB/WiMAX standard organization;
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 17

IP Service Deep Packet Inspect for Service Control

Service Awareness Solution
Transport Platform
ALL IP NGSNNG-Service Network

Arch. Business

Service Management Platform

CRM CRM

ERP ERP

Service

Billing Billing

Service Service User data control User data control Resource Session Resource Session Control Control Control Control

Service Control Platform

SP/CP

VoIP
IP Network IP Network

DPI QoS Mobile TV

Family

Access Access Optical Transport Optical Transport

Customer

Cash Flow

Information Flow

n n n

Accommodate abundant services; Distinguish different services; Control user experience, handle the billing and business value chain
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 18

Terminals Terminals will be the master of future network

IP era
Terminal SP/CP Network Provider Future value chain Value

Content & Apps. Voice webGamee-Biz etc Bearer Network Access Network Terminals

Terminal

Network Provider

Traditional SP/CP value chain

Values are transferred to terminals and services. The traditional value chain of "Operator + Vendor" is being challenged. Huaweis FWT ( Fix wireless terminal )No.1 marketing share in Global Market now Huaweis DatacardNo.1 marketing share in Global Market in 2007
HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 19

n n

Agenda

l l l

ALL IP Mobile World is coming IP Trend and Huawei Strategy Accompany You into IP World

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Huawei Confidential

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ALL IP Hard but Have to

This man is confused recently

VS
100+ news papers u 50+ TV u 20+ journals
u

Internet Services ? ?

But stock value is only one-third of Google.

n n

Value is migrating rapidly, ALL-IP is the key to the new world; Step into IP World is not easy:
n n n

Operator need to change mind in IP world Strategy, Business Model, Service Operator need a reliable partner Ability, Attention, Experience, Innovation Always focus on the control of value chain Both Short-term & Long-term

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Huawei Taking Mobile Network to IP

Leading All IP Solutions

IP over all RAN interfaces

RAN Transmission Iub over IP Iu over IP Iur over IP

Long term accumulation

Core Network
Software& Application Network

Leading commercial applications

Optical Network Datacom Network

Performance test

ASICs and Shared Platform

Huaweis Long-term Strategy Mobile,

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

FMC, ALL IP
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Huawei GSM/UMTS CN Strategy and Roadmap

~ CS5.0 Capacity Capacity
MSS: 2.7M BHCA (1.8M subscribers) MGW: 45K Erl HLR 4M SIGTRAN IP/TDM Transport IP CAC with BW

CS6.0/6.1
HLR 30M

CS7.0
MSS: 4.8M BHCA (3.2M subscribers)

CS8.0

CS9.0 ~

IP Networking IP Networking

IP based Iu-cs IP over E1 IP CAC with QoS

IPv6/IPv4 dual stack IP based A/Ater RTP Multiplexing IPTN

Reliability Reliability

Dual Homing Flex A/Iu interface CAMEL 3 Independent VIG Network Sharing

Load control in Mc-IF N+1 Optimization MSC Pool MSC Server Pool CAMEL 4 Announce on IMSI WB-AMR SCCAMEL WB-AMR+ SMMI CCBS VGCS ngHLR SIP-I at Nc Built-in MGCF/IMMGW Built-in VIG

Services Services

Access Class Barring and Overload Protection Multimedia Priority Service 3GPP/WiFi/WiMAX Interworking CAMEL Trunk Triggering GERAN Iu mode OCS based Charging

CNAP Super Charge Multimedia Private Card Presentation

Evolution Evolution

2G/3G Unified CN MGCF/IM-MGW for trial

SIP-I to NGN Open Mc (MGW)

Sharing IMS Service capability

2006Q2 2006Q2

2007Q1/2007Q3 2007Q1/2007Q3

2008Q1 2008Q1

2009Q1 2009Q1
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2010Q1 ~ 2010Q1 ~

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Huawei GSM Strategy and Roadmap

Performance solution
TBF Dynamic PDCH Priority Intra-BSC NACC AMR eMLPP + HR Flex Abis Interference detection QoS (Streaming) Voice enhance Multiple signaling point 2M signaling Antenna hopping
Synchronized Site

SAIC SGSN in pool DFCA Hub IP BTS

Multi-TBF PS handover Local switch BSC

WB-AMR

Capacity solution

AMR enhance

8PSK speech

Coverage Solution

T/R Diversity ICC PBT Concentric Cell enhance

Antenna hopping ICC enhance

SAIC

IP solution

Gb over IP

Abis over IP Ater over IP Combined MGW/TC

QoS (Conversional)

Evolution

GPRS EDGE 2G/3G handover

2G/3G dual mode BTS

DTM

2G/3G handover based on service

2G/3G RRM GERAN (Iu-CS, Iu-PS)

FLO

Ready BSS6.0

2007/H1 BSS6.1

2007/H2 BSS7.0

2008/H1 BSS7.1

2008/H2 BSS8.0

2009BSS9.0

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Huawei UTRAN Strategy and Roadmap

Mobile TV
CMB CMB / MBMS MBMS

PA/Carrier

40W DHT 2Carriers

60W DHT 4Carriers A-Doherty

Extend band

UTMS1700/18 00/1900/850

UMTS900

AWS

ALL IP

Iub Hybrid IP

Iu/Iur IP

Iub IP(Clock over IP) VoIP over HSPA

ALL IP Enhance VoIP Enhance

Flat ALL IP Architecture

Site Form

iDBS

UMTS AP Pico NodeB

Evolution

HSDPA Phase2

HSUPA Phase1

HSUPA Phase2

HSPA QoS Enhance E-RAKE MIMO(2 antennas)

E-HSPA LTE Trial MIMO(4 antenna)

2006
RAN 5.1 (06.Q4) RAN 6.0 (07.Q1)

2007
RAN 6.1 (07.Q3) RAN 10.0 (08.Q1)

2008

2009
RAN 11.0 (09.Q1)

2010
RAN 12.0 (10.Q1)

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Thank you
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