24 March 2008

Security: Confidential

Huawei Local Call Local Switching Solution
www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD.

Agenda

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Huawei Local Call Local Switching Madre de Dios Business Case Proposal

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HUAWEI TECHNOLOGIES CO., LTD.

Page 2

. Page 3 . LTD.1 2 3 Local Call Local Switching HUAWEI TECHNOLOGIES CO.

Page 4 .The new GSM market ü GSM users continues to increase steadily and competition grows fiercely ü Most operators are spending much more time and money trying to expand their network capacity Most newly-added GSM users are ü low-end users. which results in a steadily decreasing ARPU ü In order to increase revenues.. operators are eagerly seeking effective ways to reduce TCO while at the same time ensuring service quality HUAWEI TECHNOLOGIES CO. LTD.

key to lowering the TCO Page 5 .. thus transmission becomes a big challenge ü TCO model for rural areas has the satellite transmission cost as a large portion of the total costs. therefore any savings that can be made in terms of the transmission cost is also a HUAWEI TECHNOLOGIES CO. LTD.Satellite Transmission is the Key ü As GSM penetration has almost reached the saturation point in most developed areas. GSM is now expanding in rural areas ü Satellite transmission equipment required for deploying a mobile network constitutes a very large investment.

Enhance Voice Quality. HUAWEI TECHNOLOGIES CO. less BER of multi-hop Micro-wave transmission network. LTD. Page 6 .Reducing the Transmission costs MSC Server MGW/TC MSC Server MGW/TC BSC BSC BTS Typical GSM Network BSC/BTS Local Call Local Switching Description Description • • Enable connect to any MSC with standard A interface without changing current NSS Enable connect to any MSC with standard A interface without changing current NSS Benefit Benefit •• •• •• Saving Ater/Abis transmission Saving Ater/Abis transmission Saving TC resource(DSP processing power) Saving TC resource(DSP processing power) Enhance Voice Quality. less BER of multi-hop Micro-wave transmission network..

. Page 7 . LTD.1 2 3 Madre de Dios HUAWEI TECHNOLOGIES CO.

Current Scenario All the calls occupy Satellite Transmission resources Iñapari BTS Iberia La Pastora Maldonado BSC Madre de Dios .

Huawei Scenario Only not local calls occupy Satellite Transmission resources Iñapari HW BTS Iberia local-calls local-calls La Pastora Maldonado HW BSC local-calls local-calls Madre de Dios .

LTD..80% 19. Therefore for the case of Madre de Dios we would be more conservative and assume the Movistar Local calls percentage of TRX Number per BTS BTS La Pastora Iberia Iñapari Maldonado TOTAL = TRX 9 6 4 6 25 60% HUAWEI TECHNOLOGIES CO. Page 10 .Saving Calculation (1/4) Traffic Model for Madre de Dios Region Traffic Total Movistar-Movistar Local Other Erlangs 120 97 23 Percentage 100% 80. the Local traffic per region is around 40% in average.2% Satellite Bandwidth per BTS BTS La Pastora Iberia Iñapari Maldonado TOTAL = Time Slots 32 8 8 16 64 Note: According to Huawei experience.

50% 3.. Page 11 .20% 100% BTS origen Iñapari Iñapari BTS destino Iñapari Otros Total calls 8521 0 8521 % 100% 0% 100% HUAWEI TECHNOLOGIES CO.Saving Calculation (2/4) Local Traffic in Madre de Dios for each BTS in a normal day BTS origen Maldonado Maldonado BTS destino Maldonado Otros Total calls 13240 474 13714 % 96.50% 100% BTS origen Iberia Iberia BTS destino Iberia Otros Total calls 1581 0 1581 % 100% 0% 100% BTS origen La Pastora La Pastora BTS destino La Pastora Otros Total calls 8477 561 9038 % 93.80% 6. LTD.

6 x 1 x 8 = 4.965 x 16 = 9. LTD.8 time slots (60% Saving) Saving) (56% La Pastora = 0.6 x 0. Page 12 .26 time slots (58% Iberia = 0.938 x 32 = 18 time slots Iñapari = 0.6 x 1 x 8 = 4.Saving Calculation (3/4) To determine the number of BTS we calculate as follows: time slots saved as local traffic in each Percentage of Local Traffic in Madre de Dios BTS X Percentage of Local Traffic in each x Total Number of Time Solts Maldonado = 0..6 x 0.8 time slots (60% Saving) Saving) HUAWEI TECHNOLOGIES CO.

200 TOTAL Estimated Saving per Year = USD $ 115.Saving Calculation (4/4) To determine the annual amount each BTS we calculate as follows: of money saved as local traffic in Number of Time Slots saved X Price of Time Slot per month X 12 $ 29. LTD.200 USD $ 59. Page 13 ..500 HUAWEI TECHNOLOGIES CO.700 Maldonado = 9 x 275 x 12=USD Iberia = 4 x 275 x 12 = USD $ 13.400 La Pastora = 18 x 275 x 12 = Iñapari = 4 x 275 x 12 = USD $ 13.

Page 14 . LTD..1 2 3 Huawei Proposal HUAWEI TECHNOLOGIES CO.

Page 15 .Huawei Comprehensive BSS Portfolio 12 TRX per cabinet 12 TRX per cabinet 6 TRX per cabinet 2 TRX per cabinet BTS3012AE BTS3012 Indoor macro BTS •Dense urban •Urban Outdoor macro BTS •Urban •Suburban •Hotspot BTS3006C BTS3002E Outdoor Mini BTS •Rural area •Hotspot •Inaccessible geographies BSC6000 All-IP platform BSC HUAWEI TECHNOLOGIES CO.. LTD.

Performance Enhanced Outdoor BTS3012AE Outdoor Macro BTS3012AE Working Frequency Bands: 850MHz. 80W (49. STM-1 Up to 4 hours backup without additional battery cabinet 1700(H)*1000(W) *880(D) GERAN hardware ready. The protection level reaches IP55 43012AE Temperature Range -40~55 ℃ 390kg (S444) HUAWEI TECHNOLOGIES CO.78dBm) GMSK. 1900MHz Maximum Configuration: Output Power of TRX: 12 TRXs per cabinet 60W (47. Page 16 . LTD. 1800MHz. smooth evolution to 3G 4The BTS3012AE cabinet fulfils the requirements of IEC 529.5dBm for TCH/FS in normal temperature Coverage Capability: Transmission Interfaces: Transmitting diversity/ PBT/ 4-way Receiving diversity E1..9dBm) with PBT Static receiving sensitivity: -112. 900MHz.

2 cab.2340K BHCA. 2 cab. 7/8 footprint saving HUAWEI TECHNOLOGIES CO. reduce BSC site. 12K Erl Traditional BSC Benefit: Benefit: vLarge capacity. tremendous cost saving vSupports E1 and STM-1 interfances vSupports E1 and STM-1 interfances vEasy expansion for large capacity up to 2048TRX vEasy expansion for large capacity up to 2048TRX v2048 TRX Half Rate. 7/8 footprint saving vWith TC. high tolerance for traffic-peak vWith TC. 9K Erl 2200(H x 600(W) x 800 D) BSC6000 Full configuration (2 cabinets with TC ): 2048 TRX.BSC6000 Large Capacity and Site Saving Single Cabinet: 1536 TRX. for 2048TRX configure. tremendous cost saving vLarge capacity. high tolerance for traffic-peak v2048 TRX Half Rate.. LTD. for 2048TRX configure. 1800K BHCA. Page 17 . reduce BSC site.

PCU installation in Lima • BTS delivered in TM Warehouse • Huawei IOT services HUAWEI TECHNOLOGIES CO. Page 18 .. TC.Proposed Scenario Equipment : • 40 Macro Outdoor BTS 3012AE (3/3/3 TRX) + LCLS Feature • 01 BSC (500 TRX) + TC + PCU Time estimated for the equipment to arrive in Lima: • 45 days Services Included: • BSC. LTD.

5 0 1 41. LTD.5 500 207.5 1660 1500 1245 1000 830 622.. Page 19 .5 2075 50 Number of BTS 01 BTS = 9 TRX HUAWEI TECHNOLOGIES CO.Annual Saving per Satellite BTS + LCLS US$ 1000 2500 2000 1867.5 1452.5 5 10 15 20 25 30 35 40 45 415 1037.

.A GSM Base Station at the top of World * Huawei has been selected by China Mobile to install a new generation GSM Base Station on Mount Everest. The base station will provide mobile network coverage for the Beijing 2008 Olympic HUAWEI plans to reach the summit in time for the Olympic Games. Page 20 will be positioned at an altitude of 6. LTD. The base station Torch Relay Team thatTECHNOLOGIES CO.500 meters .

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