Network | Terminal | Spectrum | Standard | Competence

1 What is 5G ?

2 Socioeconomic Impact of 5G
CONTENTS
3 Is 5G Ready Now ?

4 Supportive Policies for 5G

 1 What is 5G ?

2 Socioeconomic Impact of 5G
CONTENTS
3 Is 5G Ready Now ?

4 Supportive Policies for 5G

 The world of communication is changing…
Previous 100 Years Last 20 Years Next 5 -10 Years
Connected Social Internet Internet of Everything
Communications

Mobile
Internet
Cloud Automation
technology of knowledge

Advanced 3-D printing

robotics

Advanced Autonomous
materials vehicles
Internet of
things

4 Huawei Confidential
 The evolution of wireless communication networks

1980s 1990s 2000s 2010s 2020s

1G 2G 3G 4G 5G

Analog Digital Rudimentary Faster MBB An Universal

Voice Voice, SMS Mobile Data Video Internet Connectivity

AMPS D-AMPS WCDMA LTE 5G

TACS GSM, CDMA CDMA2000 LTE-Advanced 5.5G
TD-SCDMA Gigabit LTE
HSPA+, EV-DO

5 Huawei Confidential
 Key performance specifications of 5G network

1. Low Latency
Delivering latency as low as
1ms
10x 2. Connection Density
Enabling more efficient signaling
for IoT connectivity
100x

3. Experienced throughput
Bringing more uniform, multi-Gbps
peak rates
100x 4. Spectrum Efficiency
Achieving even more bits per Hz with
advanced antenna technologies
3x

5. Traffic Capacity
Driving network hyper-densification
with more small cell everywhere
100x 6. Network Efficiency
Optimizing network energy 100x
consumption with more efficient processing
6 Huawei Confidential
 5G capability requirements defined by 3GPP
3GPP Standardization Targets for 5G NR Requirements of Different Services

Peak Data Rate User Experienced

DL: 20Gbps Data Rate Peak Data Rate User Experienced
UL: 10Gbps DL: 100Mbps Data Rate
UL: 50Mbps eMBB
enhanced Mobile
5G NR Broadband
Area Traffic Spectrum Spectrum
Capacity Efficiency Area Traffic
Capacity Efficiency
10Mbps/m2 3x
LTE-A

Network Mobility Network

Energy Energy Mobility
500km/h
Efficiency Efficiency
100X(ITU)
uRLLC
mMTC ultra-Reliable and Low-latency
massive Machine Type Communication
Connection Latency
Density
Communication Connection Latency
Control Plane: 10ms
Density
1M devices/km2 User Plane eMBB: 4ms
User Plane uRLLC: 0.5ms

7
Source: 3GPP TR 38.913
Huawei Confidential
 NSA reduce initial investment, SA ensure performance
NSA Architecture SA Architecture

4G 5G NSA 5G SA
5G data transmitted
4G Core Network 4G Core Network 5G Core Network
via 4G core network

4G BTS 4G BTS 5G BTS 5G BTS

4G+5G
4G Terminal Multi-mode terminal 5G Terminal

• 5G NSA architecture leverage existing 4G architecture • 5G SA based on service-oriented architecture

• The NR air interface enable data dual connectivity (4G+5G) • Enable on-demand network slicing for various industry services
• Low initial investment suitable for developing country • Suitable for developed market addressed on optimal performance

8 Huawei Confidential
 1 What is 5G ?

2 Socioeconomic Impact of 5G
CONTENTS
3 Is 5G Ready Now ?

4 Supportive Policies for 5G

 5G is the driving force of digital economy
5G + Vertical Industry
Business Industrial Cross-border
Innovation Transformation ecommerce E-government Improve production, efficiency, cost
structure for industry transformation in
manufacture, agriculture, healthcare,
transportation, finance sectors…

Big data Cloud AI Blockchain

5G + Emerging ICT Technology
Create innovative business solution
Ultra-High Extremely Massive and business model for the 4th
bandwidth low latency connections Industry Revolution

Internet of Everything by 5G

Digital Infrastructure

Innovative ICT Supportive Industrial

Technology Policy Ecosystem

10 Huawei Confidential
 5G has become national strategy for economy growth
5G will contribute $2.2 trillion to the global 5G leaders gear up spectrum assignment
economy over the next 15 years with supportive policies

UK national 5G strategy with ₤1.1 billion

investment in 5G digital infrastructure in 2017

Agriculture & Germany national 5G strategy coordinated

Mining the share of public infrastructure to support
Europe 5G network deployment in 2017
ICT & Trade
Manufacturing
& Utilities State Council issued the 5G National Goals and
Commercial Plan signed by Prime Minister Li
National Strategy 2016-2020 mandated the
acceleration of 5G development and
Public China commercialization
Services
Korea MSIP launched 5G National Strategy
with $1.43 billion investment in 2015
Professional &
Government reviewed the Tax Reduction and
Financial Services Exemption Control Act and provided 2~3% tax
Korea reduction for 5G network investment
Source: The mobile economy 2019, GSMA

11 Huawei Confidential
 5G has become national strategy for economy growth
5G will contribute $890 billion to Asia Pacific 5G leaders gear up spectrum assignment
economy over the next 15 years with supportive policies

UK national 5G strategy with ₤1.1 billion

Agriculture investment in 5G digital infrastructure in 2017
& Mining
Germany national 5G strategy coordinated
Public the share of public infrastructure to support
Europe 5G network deployment in 2017
Services
Manufacturing
& Utilities State Council issued the 5G National Goals and
Commercial Plan signed by Prime Minister Li
ICT & National Strategy 2016-2020 mandated the
Trade acceleration of 5G development and
China commercialization

Korea MSIP launched 5G National Strategy

with $1.43 billion investment in 2015

Professional & Government reviewed the Tax Reduction and

Exemption Control Act and provided 2~3% tax
Financial Services Korea reduction for 5G network investment
Source: The mobile economy 2019, GSMA

12 Huawei Confidential
 5G makes great contribution to user, home and industry
2C: 5G-enhanced user experience 2H: 5G FWA provide affordable home 2B: 5G-enabled digital transformation
gear up suppressed data demand connection to FBB underserved area benefit all industry sectors

DT @ Seoul

5G Enterprise Line 5G Campus 5G Public Security

Terminal：V50S
NSA ：20/24 cells
Distance ：150m 5G Transportation 5G Port 5G Manufactory

Impact of 5G by industry sector

Unit: $ Bn

Source: Ovum & Huawei MI Source: IHS report

13 Huawei Confidential
 1 What is 5G ?

2 Socioeconomic Impact of 5G
CONTENTS
3 Is 5G Ready Now ?

4 Supportive Policies for 5G

Standard
5G standardization has already settled
2017 2018
… R15
Release frozen in June
5G Basic Version
eMBB Capability Enhancement
• M-MIMO Enhancement: eMBB
capability largely improved by
codebook enhancement and
performance improvement,
especially FDD MM
• Mobility Enhancement: Zero
interruption in handovers and
independent CoMP scheduling
• Super Uplink Enhancement: Uplink
time division mode can be
transmitted at any time. The 2Tx and
1Tx carriers can be dynamically
switched between carriers
• DSS Enhancement: NR bandwidth
sharing and avoidance of LTE-NR
intra frequency interference
15 Huawei Confidential
2019 2020
R16
Release frozen in March
eMTC + uRLLC Enhancement
Extension to Vertical Industry
• Enhanced URLLC Capability: define
air interface delay by 0.5ms to 1ms
and 9-9s reliability
• 5G+TSN: TSN configuration mapped
to 5G system. Enable 5G and TSN to
be bridged in the additional
adaptation conversion unit
• NPN Non-public Network: create
dedicated network by network
slicing or independent deployment
• NR Positioning: enable positioning
accuracy by 3 meters indoor and 10
meters outdoor
• eMTC Facilitation: NB-IoT was
included in 5G standard without any
change on RAN
2021
R17
Deepen on Vertical Industry
OT+ICT Convergence
• NR-Lite: wearable, Industrial
sensors and IoT
• Centimeter-level accuracy in
location positioning
• NR V2X Enhancement: extend NR
Sidelink direct communication
application scenarios to public
safety and emergency services
• Spectrum Availability Expansion:
unlicensed spectrum and 52.6GHz
above spectrum availability
• Industrial IoT Enhancement
• More Flexible IAB
• None Terrestrial Network NR
support satellite communications
Standard

eMBB is the initial 5G commercial scenario

5G NR capability requirement by 3GPP 1ST Wave 2018~ 2ND Wave 2020~

20 Gbit/s 100Mbps
Peak data rate User experienced Digital Intelligent
data rate
world with world with
ultra All Thing
10Mbps/m2 eMBB 3x experience connected
Traffic Capacity Spectrum
efficiency

Enhanced Ultra-reliable + Low-latency

Mobile Internet Massive connection

100x 500km/hr
Energy Mobility
efficiency
mMTC URLLC

DL: 50-100Mbps DL: N*100Mbps DL: 1 Gbit/s

1 Million 0.5ms UL: 5-10Mbps UL: 50Mbps UL: 100Mbps
connection/km2 Latency
E2E: <40ms E2E: <10ms E2E: <5ms
RSRP: >-110dBm RSRP: >-90dBm RSRP: >-80dBm
16 Huawei Confidential
Spectrum

All bands evolve to 5G by TDD+FDD collaboration

T
700M + Mid-bands are mainstream of 5G spectrum

600MHz 4
700MHz 27

800MHz 2

900MHz 2 +80%
1.8GHz
2.1GHz
2.3GHz
2.6GHz (B7) 5
9
15
22
mid-band

F
2.6GHz (B38) 5

C
Collaboration of TDD and FDD for better coverage
2.6GHz (N41) 9 and high throughput 5G target network

3.5GHz 87 Sub 3GHz as coverage layer for fast deployment

3.8GHz 7 C-band + MIMO as primary capacity layer
9 mmWave as complementary layer for FWA, hotspot
4.9GHz
mmW 20

17 Huawei Confidential
Terminal

Maturity of 5G chipset & terminal promote 5G ecosystem

559 devices by 108 vendors, 60% commercially launched Number of 5G devices increased 17x, 2019-2020

Smart Phone 600 559

519
492
233 / 278 available 500 444
401
400 364
317
CPE Device 280 296
300 253
35 / 108 available 172 183
199 200 208
200 129
90 100
Industry Module 100 64
33 46 48
25 / 72 available 0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Hotspots
16 / 26 available 5G available device by features 5G Device by IMT bands

1.4%
Industrial Router/Gateway/Modem 5.2% Phones
1.6%
11 / 29 available Hospots
FWA CPE
12.9%
Industrial routers
9 Laptop, 8 Tablet, 29 Other 5.2% 49.7% 79.2% support sub-6GHz
Modules
Devices (including drone, head-
19.3% Laptops 19.3% support mmWave
mounted display, robots, snap-on
dongle/adapter, switch, TV, USB Tablets 15.4% support mmWave
& Sub-6G
terminal, dongle, modem, camera) Others *Based on 83% of announced
4.7%
Source: GSA, Dec ,2020 devices

18 Huawei Confidential
Terminal

Growth of affordable 5G smartphone promote 5G adoption

5G smartphone shipment in China accounted 60% in 2020 China 5G smartphone shipment grow explosively in next 5 years

50 80% 1800
1567
120%
1332
70% 1600 92% 95% 98%
40 93% 100%
60% 1400 85% 1185
30 50% 1200 80%
40% 1000 838
20 53% 60%
30% 800
20% 600 509 40%
10
10% 400
0 0% 170 20%
200
0 0%
2020 2021 2022 2023 2024 2025

Overall SP Shipment 5G SP Shipment 5G Ratio 5G Smartphone Shipment Ratio

The high-and-mid-end 5G smartphone are the majority Explosive growth of 5G smartphone enlarge global 5G adoption

120% RMB 4500 50%

5G SP Shipment 43.1%
4000
100% 5000+ 5G SP Users 40%
3500
33.3%
80% 3000~5000 3000 5G User Penetration
30%
2500
60% 1500~3000 23.8%
2000
40% 20%
1000~1500 1500 15.3%
20% 1000 8.0% 10%
0~1000 500 3.1%
0% 0.3%
0 0%
Jan,2020 Dec,2020 Dec.2021 2019 2020 2021 2022 2023 2024 2025

19 Huawei Confidential
Network

5G is marching toward large-scale commercialization

5G Commercial Network 5G Device 5G Subscriber

140 networks 559 Devices

+200 million
1 million sites $150 lowest price

18x 17x 200x

8 33 < 1 million

2019Q1 2020e 2019Q1 2020e 2019Q1 2020e

5G 2 years 5G 2 years 5G 2 years

4G 5 years 4G 4 years 4G 5 years

20 Huawei Confidential
Network

140 operators in 59 countries launched commercial 5G

412 operators in 131 countries already invested in 5G test, trial, pilots and scale-deployment

Europe (71) Asia-Pacific (27)

+1,000 sites @ 20+ operators 5G Elite Network, the first wave
27, 19% Coverage + Experience, the 2nd wave
FDD NR > TDD NR
2.6G + 700M national coverage in Thailand
4G in rapid pace, 5G FDD NR for
brand in East Europe Urban Coverage + FWA in Philippines
71, 51% 16, 11% Asia
Start 5G in Eurasia in 2021 3.5G HKT/CMHK, 4.9G MM, FWA in HK
ME
30% 5G Penetration by 2023 in Northern America C-band 1st, Sub3G 2nd, start 5G in Malaysia
18, 13%
and West Europe
Africa 3.5G in capital first for branding, Cambodia
30% 5G Penetration by 2025 in East Europe, 8, 6%
Russia and Turkey EU 2.6G/3.5G in big cities, Sri Lanka

Africa (8) Middle East (16)

N.& Latin America (18)
5G users 100K in 2020, 600K in 2021, South Africa 390K 5G FWA users in Middle East by 2020e
FDD NR before C-Band 350G 5G FWA DOU, 1.7x of 4G WTTX
C-band rain/Vodacom, C-band/2.1G/700M/mmW
MTN Urban Coverage in 2022~2023 toC&toH are two wheels to drive 5G development
700,800M in 2021e, 2.3/2.6/3.5 temporary spectrum Chile, Peru 1st wave, toH & toB Spectrum, Policy, Massive MIMO success DNA

Source: GSA, Jan, 2021

21 Huawei Confidential
Network

Low bit cost + better experience trigger 5G DOU increase

KOREA: 5G low bit cost unleash pent-up traffic demand CHINA: 5G traffic 2x of 4G in 2020

40
30% 34.27 4G DOU 5G DOU 25.4

30 27.00 16.9 1.7x

19 2x
20
2x 12.5
11
3x 11.38 7.7
10 4G
3.58 5G
0
Ordinary Unlimited CMCC CTCC CUCC

ME: 5G FWA DOU 1.7x of 4G in 2020 5G DOU increased by 20% in 2020

600 563 25
WTTx Dou(GB)
20.34
FWA Dou(GB) 412 20
400
255.5
319
245 265 285 15 23.8%
220
150 178 8.94 5G penetration
200 10
5 by 2023
5
3.9
0
2.33
STC Zain STC Zain Ooredoo 0
Saudi Kuwait 2018 2019 2020 2021 2023

22 Huawei Confidential
 5G-2C

eMBB will be the core business in 5G early stage

Personal Cloud in-car Video Indoor
UHDV CloudVR FWA
Desktop Infotainment Surveillance location

4K VOD/LIVE/Social Panorama VR Live 4K Video MEGA EYES Smart mall

2018 Winter Olympics China Telecom

Capture spectrum

2016 Q4
Remote maintenance Smart Pavilion

28 GHz
Smartphones Clairvoyance 39 GHz

Personal UGC Cloud VR/AR supporting Win10 Monitor Platform

Personal Cloud 2017 Q4
China Mobile
Desktop in 2017 Live map update Smart subway
Release WTTx

2019
Switch to3GPP

• 5G enable smartphone, smart car for personal cloud desktop & infotainment • Wireless surveillance will be 1st wave for vertical market
• UL capacity & throughput is important for UGC & video surveillance • Hotspot digitalization enable the monetization of indoor location service

23 Huawei Confidential
5G-2H

5G FWA subs fast grow supported by matured ecosystem

50+ operators choose FWA as first use case Zain KSA 5G FWA subscribers rapid growth

FWA Users
120000 112,000

100000 90,000
Zain, Saudi VDF, Germany Elisa, Finland Globe, Philippines
80000
60000 46,000
31,000
40000
20000 8,700
0
VDF, UK VIVA, Kuwait VDF, Qatar 3, UK 0
2019.10.5 2019.11.30 2020.2.26 2020.7.6 2020.11.1 2021.1.1

34 commercial CPE with affordable price

Average speed 250Mbps
120 10+ Vendors Launched 5G CPEs DL Throughput(Mbps）
102
300 271 276 278
100 264
84 251 256
250 234 242 243 228
80 220
61 201
60 CPE 1.0 CPE X CPE Pro CPE Win（mmW） 200
40
34
150
16
20 9
100
0
2020.1 2020.6 2021.1 GoSun Tozed Changhong MitraStar Askey

Announced Commercialized 5G CPE $150 available

24 Huawei Confidential
5G-2B

5G capability enhancement drive industry apps maturity

High
Exploration Stage (~2019)
5G Technology Dependency
Explosive Development Stage (2022~)
Initial Stage (2020-2021)
Holographic communication
Smart Campus Smart Healthcare Telesurgery
Smart Grid Autonomous driving, Machine Vision Advanced telemedicine diagnosis
AGV, VR repair video

Smart Port surveillance, inspection Wireless Industrial Cameras Smart Transport

Smart Grid
Smart Logistics Differential protection L4/L5 autopilot
Autopilot Smart Mining Drone transportation Industrial Sensors distribution automation
Remote control
Smart Campus Smart Transport
Remote Smart Security Smart Transport Fleet orchestration
Control Drone inspection/AI identification L3 + autopilot Feeder automation
Mobile video law enforcement
Wireless AGV
VR/MR Smart Education
Smart Healthcare
AR/VR teaching Wireless PLC
Hospital care robot
Drone Smart Healthcare
Telemedicine, remote diagnosis,
mobile inspection

Photo-grade video High bandwidth + low latency industrial applications

Smart Transport
Video surveillance, AI identification

Surveillance video Media Live Broadcasting

Large-bandwidth industry applications

Apps in vertical industry

Low

Fast Slow
Commercial Time (Technology Maturity x Network Maturity)
25 Huawei Confidential
 1 What is 5G ?

2 Socioeconomic Impact of 5G
CONTENTS
3 Is 5G Ready Now ?

4 Supportive Policies for 5G

Policy-led

Clear national 5G strategy support industry transformation

27 Huawei Confidential
Coverage

Mandate coverage and speed for efficient deployment

• At least 100 Mbit/s for at least 98% households in each
Population federal state by 2022

• At least 100 Mbit/s and a maximum latency of 10ms for all

federal roads with connectivity function levels 0 or 1 by
Roads
Roads 2022, all other federal roads 2024
• At least 50 Mbit/s for all state roads by 2024…
• At least 50 Mbit/s for seaports and the inland waterways
Waterways core network by 2024
• At least 100 Mbit/s for rail routes with more than 2,000
Waterways
passengers daily by 2022, at least 50 Mbit/s for all other rail
Railways routes by 2024
• 1000 5G base stations by 2022
• Operation of 500 base stations with a transmission rate of
Sites at least 100 Mbit/s in white spots
Railways

28 Huawei Confidential
Coverage

Compulsory No. of deployed BTS as coverage obligation

Mandate minimum # of BTS based on spectrum category
Country: Korea 1 • Mandate a total number of 106,000 stations for 700/2100/2600MHz
Year of Issue: 2016 and 1800/2600MHz spectrum categories individually (2016)
Frequency Band: 700MHz, 2100MHz, 1800MHz, • The total number of 150,000 stations, including small cells and
2600MHz repeaters in the LTE nationwide network for licensees of 3.5GHz
and 100,000 equipment-based stations for 28GHz licensees (2018)
Year of Issue: 2018
Specify the compulsory deployment ratio by year basis
Frequency Band: 3.5GHz (280MHz), 28GHz (2400MHz), 2 • Licensee of 700/2100/2600MHz has to complete 15%, 45%, 55%, 65%
2680MHz in total of committed # of BTS in the first 4 years of license awarded;
Licensee of 1.8/2.6GHz a 10%, 25%, 35% 40% completion rate (2016)
• Licensees of 3.5GHz obligate to complete 15% & 30% of committed
Keynotes # of stations within 3 and 5 years respectively; a 10% completion
 Mandate the minimum number of BTS in different rate for licensee of 28GHz within 3 years (2018 auction)
spectrum baskets that licensees have to deploy • For 5G boost, the obligation to deploy a network for auction in 2016
before license expired can be done as deployment of 5G (28 GHz band)

 Specify the compulsory deployment ratio for the

first 5 years
 Impose spectrum cap on bidders to prevent
frequency monopoly
 Impose infrastructure sharing obligation on 3 Impose spectrum cap to prevent frequency monopoly
essential facilities of market dominant and
public facility from utility companies Encourage collaborative construction by sharing
4 • Essential facilities owned by KT should be shared to other operators
Source: http://itu-apt.org/28-GHz-Indiay-5G-Spectrum-Workshop/docs/cho.pdf • Public facilities such as electric pipeline, optical cable, street light &
29 Huawei Confidential traffic structure should be opened for mobile network construction
Spectrum

Spectrum supportive policies by usage status

Supportive Policy
mmWave 5G NR supplement NR
~1000M New spectrum assignment
4 Spectrum refarming (recall)
3500MHz
5G NR preference NR
~300M
2600MHz
LTE LTE
190M 290MHz in total 5G
New spectrum assignment
2300MHz
3 LTE capacity layer/ Spectrum refarming (recall)
5G coverage layer LTE LTE
100M 5G

2100MHz
UMTS UMTS UMT/LTE
2x60M LTE 5G
Technology neutrality
1800MHz GSM GSM GSM
LTE
340MHz in total Remaining spectrum assignment
2x75M
1 2G/3G/4G Spectrum refarming (contiguous)
fundamental
900MHz GSM GSM GSM
UMTS UMTS/LTE network
2x35M

700/800MHz 120MHz in total New spectrum assignment

2 LTE LTE
2x60M 5G Spectrum refarming (recall)
LTE/5G coverage layer

1990 2000 2010 2020 2030~

30 Huawei Confidential
Spectrum

100MHz contiguous spectrum for investment efficiency

Minimum 100MHz contiguous spectrum@operator 2.3/2.6GHz could be complemented with C-band

2.6G
3.3-3.6G 100~200MHz@MNO
4.8-5.0G 2.3GHz operator
100MHz (unpaired/TDD) @
B40/N40
3.4-3.6G 2300 2400
100MHz@MNO
3.6-3.8G

2.6/2.3G
3.7-4.1G 100~200MHz@MNO
4.5-4.6G
2.6GHz 190MHz (unpaired/TDD)
B41/N41
3.4-3.7G 80~100MHz@MNO
2500 2690
@ 1~2 operator
2.6G
3.5G +100MHz@Version/AT&T
3.7-4.2G
31 Huawei Confidential
Spectrum Fee

Spectrum cost is financial burden deterring investment

Accumulated spectrum cost reach the peak Lump-sum spectrum payment deter investment

Network investment as % of revenue

800MHz auction

5G ·····
Annual amortization

4G ·····
Source: Elisa Annual Report

3G ····· Spectrum payment largely enlarge debt

Spectrum auction
2000 2010 2020

Germany UK
• 3G/4G/5G total cost: €66Bn • 3G/4G/5G total cost: ₤ 66Bn
• Annual Amortization: €3.3Bn • Annual Amortization: ₤1.3Bn
Source: GSMA Intelligence Source: Vodafone Annual Report

32 Huawei Confidential
Spectrum Fee

Traditional “smash-and-grab” auction delay investment

• Introduce new entrant. 700MHz FDD (block A1+ A2)
and 26GHz (D1) reserved for new applicant C-band price 2.8x of Korea, the world record
C-Band Price/Mhz（€）
• High reserve price to relieve national financial crisis of Italy. 22,657,125
A €2.5 billion of reserve price for 700MHz, 3.7GHz and
26GHz in 2018 is close to 65% of the final auction price of
2011
8,119,764
5,878,332
• Unlimited auction made the world record of the highest
2,188,500
spectrum auction price. 15 round auctions in 20 days uplift
C-band price to €4.3 billion and a total price of €6.55 billion Italy UK Spain Korea
• Huge financial impact for applicant. Total spectrum expense
of TI accounts for 3.2 folds of its cumulative wireless
Spectrum Price Per MHz, Italy（€）
CAPEX in last 17 years, which forced TI sold the majority
share of its subsidiary, Persidera for spectrum payment 49,371,667

• Deferred payment for huge auction price. Government and

34,033,456
operator negotiated a deferred payment by 5 years
22,657,125
Comment: Irrational multi-round auctions enrich country 15,900,000
treasury but boost up spectrum expense and serious chop 3,437,977
off operator’s network investment and sacrifice the public 163,693
policy on universal coverage obligation 700 800 1800 2600 C-band mmWave
33 Huawei Confidential
Spectrum Fee

Amortized payment accelerate 5G network investment

Amortized payment releases MNO’s financial burden Spectrum assignment by large contiguous frequency

700MHz (UL) 10 MHz 10 MHz 10 MHz 5 MHz 10 MHz

718 MHz 748MHz

TDD 2600 MHz 100 MHz 90 MHz

1 Annual Fee 2500 MHz 2690 MHz
UAE China KSA
26 GHz 800 MHz 1200 MHz 400MHz 200MHz
24.3 GHz 25.2GHz 27.0 GHz

TRUE DTAC TOT AIS CAT

Auction Fee Spain Ireland Thailand

2 by Installment Deferred + installment payment for 2.6GHz auction
15% 15% 15% 15% 15% 15%
Italy Finland Korea
10%

0 0 0
Auction Fee
UK Australia 1 2 3 4 5 6 7 8 9 10
3 By Lump-sum
Down
Year
Payment payment payment holiday 7-year installment period
Germany Switzerland
Source: https://www.bangkokpost.com/tech/1737227/regulator-seeking-5g-strategy-committee
34 Huawei Confidential
Spectrum Fee

Reducing annual usage fee accelerate network deployment

• Spectrum charged by annual usage fee and 5G spectrum assignment
sharply reduce the annual fee of frequency
above 3000MHz to attract investment (2018)
40M UL 40M DL
• Spectrum assigned to 3+1 operators including one new
700MHz LTE+5G LTE+5G
entrant from broadcasting sector 703 743 758 798

• Usage fee exemption and discount for the first 6 years 2.3GHz 20M 50M/LTE 20M
to accelerate 5G deployment (indoor)
1-3 year: usage fee exemption 2300 2320 2370 2390

4-6 year: charged by 25%, 50%, 75% respectively Band41: TDD

After 6 year: 100% usage fee 2.6GHz 100M/5G 60M/LTE TDD 4/5G Golden
Spectrum
2515 2675
2G/3G/4G/5G spectrum annual fee
Frequency Original Price Price Reduced 3.3GHz 100M/5G (indoor) (TBD)
<960MHz ¥17 mill/MHz/yr 3300 3400

960-2300MHz 15 mill/MHz/yr
3.5GHz 5G: 100MHz
100M/5G 100M/5G
2300-2690MHz 12 mill/MHz/yr
3400 3500 3600
3000-4000MHz 8 mill/MHz/yr 5 mill/MHz/yr
CBN spectrum yet to
4000-6000MHz 8 mill/MHz/yr 3 mill/MHz/yr 4.9GHz 100M/5G 60M/5G be approved by MIIT
Above 6000MHz 8 mill/MHz/yr 0.5 mill/MHz/yr 4800 4900 4960

35 Huawei Confidential
Deployment

Infrastructure sharing and easy site acquisition

Infrastructure sharing and co-deployment
• Open public infrastructure, e.g., traffic
lights, traffic signs, street furniture…
• Co-use of public passive infrastructure
for fiber deployment
Easy site acquisition by application exemption
Government amended specification
that allows application exemption
for pole sites with height < 15
meters

• Co-deployment of fiber within the

framework of public road construction
Public infrastructure openness and sharing
• Single minister for digital infrastructure
management
• Sharing public infrastructure, masts, poles,
ducts, power supplies, fiber alongside railways
• Local government engagement. Sharing local
government assets and infrastructure, e.g.
lands, buildings, roads, street furniture and
coordinating other public buildings such as
school and hospitals
Open lamp pole for free 5G deployment
70,000+ free lamp poles for 5G deployment by
Vancouver Municipality
Other site acquisition policies
• Accelerating site installation by open access to lamp
poles and rooftops across city
• Quick approval for mass site acquisition if NMO’s
network deployment plan in line with the approved
network proposal

36 Huawei Confidential
Deployment

Mandate site sharing & easy approval for batch acquisition

Allow site
 New site location
approved by new agency deployment
 Three operators share site before approval  Stacked equipment looks
location from each other not beautiful by saving
cost and deployment time
 Site acquisition completed in 1 month
 A single site can be obtained in 7 days

Mandate site No site

location sharing landscaping
requirement

Quick Site Acquisition

 90% of urban site on
rooftop
in Batches  Enable site deployment
near settlements
 5G site co-located  People gather and chat
with existing 4G site around the base station
Less impact on
5G overlaid on
 Annual rental: ~$2000 electromagnetic
existing 4G site
 Site acquisition cost: $264 radiation

Low site rental,

acquisition cost

37 Huawei Confidential
Thank you. 把数字世界带入每个人、每个家庭、
每个组织，构建万物互联的智能世界。
Bring digital to every person, home and
organization for a fully connected,
intelligent world.

Copyright© 2018 Huawei Technologies Co., Ltd.

All Rights Reserved.

THANK YOU The information in this document may contain predictive

statements including, without limitation, statements regarding
the future financial and operating results, future product
portfolio, new technology, etc. There are a number of factors that
could cause actual results and developments to differ materially
from those expressed or implied in the predictive statements.
Therefore, such information is provided for reference purpose
only and constitutes neither an offer nor an acceptance. Huawei
may change the information at any time without notice.