Industry Trends and 5G National Strategies

for Economic Recovery

Security Level:
COVID-19 has had a severe impact on Global Economies

1 2 3
Global shares take a hit More people seeking work Travel restrictions in > 100 countries

4 5 6
Oil price at 21 years low US oil price negative for 1st time Many advanced economies enter recession

2 Huawei Confidential
Global Covid-19 Pandemic, causing intense Policy, Finance & Societal Uncertainties
Global shares have been hit Impact: Strong policy control, increased exchange rate risks & high security risks

80+ Countries declared States of Emergency

Government policies • Boarder Closures: Italy, Spain, Czech, etc.
changes • Quarantine: Belgium, France, Switzerland, etc.
• Curfew: France in “a state of war”; Germany's ban on travel...

• Non-US Currency Devaluation (1 month): 15 currencies

Rising unemployment depreciated by 10%+ vs. US$, Colombian peso, Rouble 20%+
Financial
changes • US stocks circuit-broken 4 times, world crew oil prices slashed
to as low as US$25/barrel

• 5 Billion people start online life, network traffic grew rapidly:

Society China: IP +70%, Spanish: Wireless + 50%，VDF: Data +50%

changes • Epidemic accelerates 5G + Cloud + AI, social information &
digitalization will enter fast lane
Decline in flights globally

3 Huawei Confidential
Global Economy is in Recession, Strong Measures Can Avoid the Worst Economic Impact

The Global Economy is in Crisis Value transfer occurs in all industries & calls for new engine of Digital Economy

International organizations & OTT online

CInema Online
investment banks have Education
Cinema Real
continuously lowered their Estate VR/AR Real Remote
Estate 60B$
US Stock Market trigger circuit breaker 4 3B$3M$ Office
annual GDP indices. Times
Shopping Cloud
Morgan Stanley:
IMF:-0.2%
-2.1% Gymnasium Mall Computing Online
Decreased 85% Shopping
Goldman Sachs: - Merrill Lynch: 1.5T$
10B$0.7B$
1% -0.8%
catering
takeout Big
Citi: 1.2% Date: 24-03-20 European stocks down 1/3 150B$47B$ Data

Offline Online Online

Apartment
Renting Renting
• Investment bank forecast: Impact of Crisis is far beyond financial crisis in 2008, Continuous
sports
downward trend in economic indicators. equipment
Transportation
Industrial Insurance
• Global stock market fell by $20 trillion in three weeks as epidemic affected economic confidence. Robot

• In China, control of epidemic in East Asia heralds the dawn of economic recovery, also brings
production momentum for other countries to overcome epidemic.
Risk: Epidemic is rotating between northern & southern hemispheres.
Contactless business + Service as an example.
• 15-Trillion-dollar market shifting to different model
• Promote industry reshuffle, competition & greatly accelerate industry digitalization.
• Cloud computing, artificial intelligence, and big data are applied to life & production.
• Telemedicine, online education & other fields such as vehicles, houses & cinemas are changing rapidly.

Investing $1 in Digital Technologies, brings $20 to GDP High-speed fixed network, 5G network, cloud & IoT provide the digital foundation
Oxford Institute for Economic Research for economic growth & recovery
4
ITU: Redefine connectivity, appeal to governments to improve regulation & share experiences

UN
Vice-
ITU Secretary
Secretary Fabrizio
Zhao Hochschild-
Houlin Drummond

https://reg4covid.itu.int/
• On April 15, UN & ITU launched series of online seminars, viewpoint: The COVID-
19 crisis is causing a surge in global network traffic. Internet usage patterns have
REG4COVID：Global network resilience platform for community
changed, and "adequate connectivity" needs to be redefined.
operation, sharing global experience & initiatives, bringing together
• On April 21, WBG, ITU, GSMA, WEF & other governments organized high-level
innovative policies & regulatory measures.
dialogue meetings, >300 senior officials & business leaders attended meeting,
calling on ICT infrastructure to be related to "Death or Life".

Consumer Traffic Affordable

Protection Optimization Prices
《Global ICT Regulatory Outlook 2020》

G5 benchmark: “Gold standard" for cooperation between industry

regulators & policy makers globally, used to analyze maturity of modern
regulatory frameworks, from G1 to G5, gradually practiced in 193 countries Emergency Service Policy QOS
worldwide. Communication Experience

5
Beyond just Broadband, large-scale 5G supply expected in 2020: 170 networks to be deployed
globally, critical point of experience may not be reached yet

Commercial 5G Networks Number of Sites User Scale

3x 170 500, 3x 25x

56 1.5 million
10 million 250 million
000

2019 2020 2019 2020 2019 2020

Unit: 1000 sites

Enhance experience
14 60%
2020 planned x5 with improved coverage
5G construction 63 Commercialized 12 50%
2020 planned x5
5G/4G alignment ratio must be greater than 50% to
pace of global
10
prevent frequent fallback & switchover. 40%
operators 8
30%
80 6 22% 27%
Deployed 20%
4 2020 plan x3 18%
14%
2 2020 plan x2 10%

359 Investment 0 0%
S.
韩国 Korea China
中国 W. Europe
西欧 Middle
中东 East
Source: Summaries of public
Source: GSMA 5G Market Statistics (March 4, 2020) 2019年5G站数
5G Sites 2019 4G对齐率（2020预测）
5G as % of 4G sites information

6
Governments of various countries have issued a variety of policy tools to ensure that telco
networks play as the cornerstones in the combat against Covid-19

National Spectrum Tax Infrastructure Ecosystem

Milestone Policy Reduction Openness Innovation

National Milestone Temporary spectrum for Tax reduction to support Open ROW (right of way) & Support 5G+ Industry
Broadband Strategy traffic surge telcos greater access to site Innovation

• China: US$40 trillion • USA: Enhance coverage and • Japan: Large-scale tax • Italy: Support TIM‘s OpenFiber • South Korea: Invested 600
investment in new capacity cuts South Korea: 5G tax project & built national billion won to support 5G
infrastructure • Ireland: Release temp credit policy broadband. including 15 domains.
• South Korea: Urgently spectrum and expand • Thailand: Increase tax • Germany: DT launched “We
Adding 5G Investment spectrum usage scope. credits for businesses & hunt dead spots" initiative to
• Thailand: state subsidies • Saudi Arabia: 5–10 MHz individuals cover 100 white spots.
for carriers spectrum for each operator

Five Decisive Factors: MSTIE 7

 EU: Set up €540bn fund to restart economy, green & digital are the focus
EU: Restarting the Economy, Focusing on Green & Digitalization
• Von der Leyen: We now need to build a resilient,
green and digital Europe, and the European Green
Pact will be our driving force for the recovery.
• On 9 April, European Union finance ministers agreed
on package of 540 billion euros to address severe
Ursula von der Leyen economic impact of Covid-19 crisis & to lay
President of the European
Commission
groundwork for region's economic recovery.
TIM & EU's "Digital Risorgimento" to Build Digital Knowledge & Skills
Digital Risorgimento campaign initiated by TIM
Italy & European Commission
• 26 Players including Google, Cisco, Hewlett-
Packard Enterprise, & Huawei participated in
campaign with support of government.
• Initiative also supported by industry
associations, 3rd parties & key actors in social
innovation.
BEREC in Europe: Deregulation and Legalization of Data Sharing
• BEREC: Carriers authorized to take special traffic management measures, especially
to prevent coming network congestion & mitigate impact of special or temporary network
congestion, treated traffic of the same type equally.
• Giovanni Buttarelli, European Director of Data Protection: Data sharing to combat the
epidemic is legal.
• 8 European operators, including DT, Orange & Vodafone, agreed to share telephone
location data with European Commission to help measure coronavirus coverage.
• Italy, Spain, Russia, Ireland, Austria & Belgium provided temporary spectrum licenses
for operators.
Germany calls for legislation as home office becomes "the new normal"
• German Labor Minister Hubertus Heil: Employees should have the right to work at
home. A bill to make working from home a legal entitlement is planned for the fall.
"Employees who want to work at home, and the workplace allows them, should be able
to work at home, even after the epidemic is over," he said.
• An estimated 8 million people in 16 German oblasts, or 25% of country's workforce,
were working from home, well above the 12% prior to the outbreak.
[Accelerate the construction of stable and high-quality home broadband]
8
South Korea: Strength 5G as national strategy and the new growth engine

On April 8, at the 3rd "5G+ Strategy Committee", Cui

Jiying, Minister Information & Communications, said: Measure 1: Improve 5G Service Quality Measure 2: Cultivate 5G Strategic Industry
Indoor Quality, SA network, Low-priced terminals 650 billion won invested

"To fight COVID-19, the industry and the
government have decided to increase 5G
investment.”
"5G will become the new engine of national
economic growth”
Achievements: 5G users has exceeded 5.5 million,
Problem: Users are still dissatisfied with the quality,
especially indoors. when 5G signal is weak, users
can only switch to the LTE.
Improve 5G Service Quality
 Indoor quality: deploy 2000+ indoor sites,
such as subways, airports, stores, and small-
sized buildings.
 SA networking: promote the commercial use
of 5G SA network,
 5G terminals: provide consumers cheaper
terminals with more choices.
5G strategic industries include 15 fields, such
as next-generation smartphones, AR/VR, self-
driving cars, healthcare etc.
• Automotive field: Focus on developing "core
technology of fully automated driving"
• Intelligent Infrastructure :
 Drone 5G communications modules three
smart cities trail,
 AI-based emergency medical system.
 5G-based robot in logistics,
manufacturing, and public areas
 200 5G smart factories
• Wearable equipment: 15% market share
target

Impact of COVID-19 on the 5G Industry

"After COVID-19, activities such as remote office, home office, and contactless diagnosis and treatment will become
everyday life." "Actively expanding 5G investment and exploring contactless services will help us seize new economic
development opportunities." 9
 China: 5G leads new infrastructure, telcos increased 5G investment nearly 5 times

20 April 2020, National Development
& Reform Commission officially
defined concept of "New
Infrastructure" for the first time.
Information infrastructure Converged infrastructure
• Converged infrastructure
• New Generation IT Infrastructure by 5G, deeply apply technologies such
IoT, industrial Internet & satellite Internet, as Internet, big data & AI etc.
• New technology infrastructure • For examples: intelligent
represented by artificial intelligence, cloud transportation & smart energy
computing & blockchain, infrastructure.
Innovative infrastructure
• Public infrastructure to
support research,
technology & product
development.
• For example:infrastructure
for science & education

3 Carriers : 5G Investment (2019-2020) increases 5X

China Mobile China Telecom China Unicom 3 Operators & China Tower 1200 5
to invest 1,973 Billion 1000
1000
Existing 5G sites 60,000 sites 60,000 sites RMB, 5G sites will exceed 4
(by February 2020) 80,000 sites (including 20,000 for sharing) (including 20,000 for sharing)
800
600,000 end 2020
5G Subscribers 600 3
(by 2020 Q1) 31.72 million 16.61 million (Unpublished) 453
400 350
5G Budget in 2020 240 2
100 billion 45.3 billion 35 billion 200 93 79

5G sites Investment 0 1
300,000 sites in China Mobile China Telecom China Unicom
Plan in 2020 250,000 sharing sites
total
2019 5G invest. 2020 5G budget 2020 5G invest increase

10
New Infrastructure Construction, Foundation of National Transformation & Innovation

New infrastructure construction planning 5G innovation application accelerating project

Released 6th Mar 2020 Released 12th Mar 2020

• Intercity HSR
• Electric Vehicle Charging Station
Smart Manufacturing
• UHV Power Transmission
• Big-Data Center Smart Medical Smart Power Grid

• Industry internet 5G Smart Port

• Artificial Intelligence(AI) Related
• 5G Infrastructure Internet of Vehicles Smart Education

4k/8k live broadcast

7 Domains, ~ 48 trillion ￥ 7 Industries, accelerate 5G 2B Commercialization

11
Japan: 5G tax benefits encourage telcos to expand 5G investment
7 Apr 2020: Japan implement emergency economic measures totaling 108 Trillion Yen (US $ 1 Trillion) [20% of Japan's
GDP] 5G Tax Benefit Policy
2020 Scale of tax reduction Beneficiary

120 billion yen

(US$13.7 billion)
operator Device Manufact 5G LAN operator

Detail：15% of 5G investment exempted from corporate tax within two years Or 30% investment in depreciation to offset the tax

Expanding 5G Investment
"Beyond 5G Promotion Strategy Outline"
Major telecom carriers
Investment in 5G network
NTT docomo，KDDI，SoftBank Japan released "Beyond 5G Promotion
before 2024
Strategy Outline (Draft)" 8 April 2020
• Strategy will be finalized in June 2020.
1.6 trillion yen (US$183.1 billion) • Purpose is to boost Beyond 5G &
strengthen it’s competitiveness

12
Thailand: Accelerates 5G services, economic rescue becomes most driving force

5G Services Planed in Mid of 2020 Government Accelerates 5G Services

Ta Gong, NBTC General Secretary

“We hope that operators can accelerate to launch 5G services in
nationwide as soon as possible.“

Government considerations
Thailand's National Broadcasting & Telecommunications Commission • 5G will meet people's requirements
(NBTC) has set goal of launching 5G by 2020 • Helpful to rescue economy

5G service launched in Feb end

NBTC Special Resolution

• February 16: spectrum auction, raising US$3.2 billion 20-year National Strategy
May affect by COVID-19
• Feb 21: AIS pays and launched 5G services 1. Add 10 GB /person per month for 3 months, from spectrum
• Mar 16: TRUE pays and launched 5G services bidding fee
5G Expects More Opportunities
2. Fixed broadband Internet users get bandwidth acceleration &
capacity expansion.

13
Malaysia: Increase ICT investment to save economy and strengthen “Digital ASEAN Heart”
vision
Economic Supporting Package
• Total RM20 billion (US$4.58 billion) 27 Feb 2020
• 250 billion ringgit ($58 billion) in 27 Mar 2020
• Tax relief for hard industry.
Fiber Investment
Plans to implement
projects related to the
Minister of Communications and national fiber-optic and
Multimedia connectivity programme,
Saifuddin Abdullah
worth RM3 billion (US$690
million)
"Digital ASEAN heart"
“Malaysia‘s potential as the heart of
Digital ASEAN”
Malaysia Digital
Economy Corporation
(Note: MDEC is a state-owned institution responsible for industry & business digitalization
ICT Investment
Special free Internet Extra network Digital Financial
Services Investment Assistance
With the slogan "Nobody is Cooperated with MDEC &
US$92 million
behind the times," and MDEC National Bank of Malaysia
additional investment
will cooperate with carriers to to provide US$1 billion in
to increase network
provide free Internet services additional assistance to
coverage and SMEs in digitalization.
worth US$138 million to all
capabilities
people.
14
US: Temporary spectrum, financial support & relaxed regulations, premised keeping America
connected is saving lives
FCC initiates the “Keep American Connected”program & loosen restrictions [Keeping connection, saving life]

More than 700 companies & associations signed president's pledge:

Ajit Pai, FCC Chairman, announces:
• He called on Broadband providers to relax data usage limits in appropriate circumstances & take steps to
"Keep America Connected" program promote remote learning and telehealth
Given coronavirus pandemic & impact on American society, all companies commit to:
1. Not terminating service to any residential or small business customers because of their inability to pay their
bills due to the disruptions caused by the coronavirus pandemic;
2. Waiving any late fees that any residential or small business customers incur due to their economic
circumstances related to coronavirus pandemic;
Ajit Pai 3. and opening Wi-Fi hotspots to any American who needs them.
FCC Chairman

Grant temporary spectrum licenses and extend Funds support construction of Relax supervision policy & support home office
spectrum licenses telecommunication network
FCC grants telecoms operators additional temporary
• FCC announced a $100 million fund to help telecoms • FCC issued temporary waiver of its access arbitrage rules to
spectrum to help meet growing demand for Broadband
Inteliquent (telecommunications company that carries traffic for two of
during coronavirus. companies build networks. nation’s largest conference calling providers, Zoom Video
• T-Mobile: additional licensed 600 MHz spectrum; AT&T:AWS- Communications & Cisco WebEx).
• And a $200 million plan to bring telemedicine to American
4,AWS-3; Verizon: AWS-3, etc. • Absent today’s waiver from FCC’s Wireline Competition Bureau
• The license period of the 3650-3700 MHz frequency band is citizens. • Massive increase in conference calls made by American consumers
extended to October 17, 2020. using Zoom & WebEx to work/attend classes from home during COVID-
• [Coronavirus Aid, Relief, and Economic Security (CARES)
• Rural area: The licensed frequency band is 5.9 GHz and the 45 19 pandemic would likely result in Inteliquent being deemed an “access-
MHz spectrum is used for 60 days. Act], passed through Congress stimulating” carrier under FCC’s rules.
• Fire Department: New York City Fire Department authorized to
use T-band spectrum
[ Universal coverage is promoted by government ] [Telecom becoming more and more important] [ Policy matches with anti-epidemic measures]
15
US: All major telcos increase investment in 5G deployment

• In 2020, increase $500M in 5G network infrastructure deployment;

• Q1,2020 increased CAPEX to $5B for the expansion of 5G；（ Q4
• Since 2017, “$10B reduction” was executed, and all saving will be invested
2019 CAPEX was US $ 3.8 billion）
in 5G construction;
• In March 2020，3267 mmWave spectrums were captured at a cost of
• In April 2020, cost $1.6B to capture 4940 mmWave spectrums for double
$1.2B；
John Stankey Hans Vestberg the number of cities supported by “ultra broadband” plan;
• In 2019, “$6B cost-cutting” plan was launched, all saved fund will be
CEO of AT&T CEO of Verizon
invested in 5G and video services.

• As the fourth largest operator, will invest $500M for 5G deployment in 2020.
• Invest $40B in the next three yeas for 5G network; cover 97% of the US
• In March 2020, cost $200M captured 2651 mmwave spectrum;
population;
• Dish 5G network will be based on virtualization architecture, the goal is to
• In March 2020, $980M captured 2511 mmwave spectrums;
effectively control the cost of network deployment;
Mike Sievert • In next six years to increase the network capacity by 14 times; and the
CEO of T-Mobile average of 5G speed is 15X than LTE;

All US tier1 operators are still heading for 5G with huge investment in spite of difficulties
16
Brazil: Telecom industry is among pillars of "Economic Relaunch Plan"

Transportation & Urban & regional

Telecom logistics
Mining & energy
development

• Unbalanced development: Brazil has >10,000 technology startups, leading Latin America. But Internet speed is 13 Mbit/s - lower than

Brazil's infrastructure minister, Jose Tarcio global average 31 Mbit/s.

Telecom is one of the four pillars of the economic • Private economy: SoftBank plans to invest $5bn to promote development of telecom industry. Telecommunications Incorporated into
relaunch plan being drafted
Privatization Reform: An Important Opportunity for Development

McKinsey: Digital Brazil is "a movement" Competition btw public & private sectors in telecoms The epidemic spurs government to support
industry accelerating network development network construction
• One third of the population use feature phones; Health care system is
lower than the WHO standard; Only 40% of them have high school
education. Public Pravite Governments are more pragmatic &
• Brazil's digital "movement" has become a "pragmatic" distance • Gov. direct investment $5.5 • $45.6 billion privatization, they are focus on ICT infrastructure
education, smart government, and national broadband due to the interesting invest in telecom • Strengthen network: Increase coverage in
billion, ¼ in telecom industry.
epidemic. • Foreign Capital Focuses on
• Digital economy, led by Gov. edge areas
Digital Brazil Telecommunications & Digitalization
7 ICT Strategies stimulates $180 bn. • Launch national policies to attract
foreign investment
Regulatory Policy for Telecommunications: Capital Willing to Invest in the Telecom • Open more fields (finance & education etc.)
Industry Due to the Openness of the Epidemic to Operators to promote Digital Economy.
Digitalization is a castle in the air without network
foundation

Latest updated: 24 Apr 2020 17

UK: Planning new infrastructure, shift investment from road construction to broadband

Investment is shifted from "building roads" to "building fiber broadband", cheaper and more beneficial to the economy
Called on Member of Parliament to consider
switching funding from the £28bn pot for
building new roads (intended to help relieve
congestion) and instead invest it in helping to
roll-out “full fibre” broadband networks across
the country.
Chris Stark
CEO of UK Climate Change Committee
CEO of UK Climate Change Committee, Chris Stark:
• Government mustn’t be investing in anything likely to increase carbon emissions.
• I expect that video conferencing will become the new normal, and we won’t return to travelling the way
we did.
• I would spend the roads budget on fiber. You would get a huge return to the economy with people
having better connections.
• You would save people’s time and increase their productivity.
Boss of UK Climate Change Committee:
• Switching such investment to broadband would be cheaper, better for the economy and more climate-
friendly.
• The Coronavirus is forcing many people to work from home for the first time, has helped to educate a
nation and its businesses into recognizing what is possible from remote working, without needing to
travel.

Fiber broadband covers every home, wireless covers 95% areas Increases broadband investment, working at home more efficiency
• At present the UK Government already plans to invest £5bn – focused on helping those in the final
In future, we should invest more in broadband
20% of hardest to reach premises – to ensure that “gigabit-capable broadband” (via full fiber, cable, because what this current crisis has shown is
5G etc.) is able to cover every home by the end of 2025, which is on top of various existing that the majority of companies can continue
investment schemes and other support structures. working from home, and it can be more efficient.
• The Government are also supporting a £1bn Shared Rural Network to extend geographic 4G mobile
coverage to 95% of the UK by the end of 2025.
Edmund King
President of the Automobile Association

18
Italy: Open ROW, license public fiber network, extend period of temporary spectrum

Start the fiber coverage in 8 regions & 310 cities for 1 million Italy Agcom: Extend validity period of licenses for 900 MHz & 2.1 GHz
people frequency bands for TIM & VDF.

TIM reached agreement with Italian state-owned Infratel to accelerate

Carrier Social Responsibility: Unlimited Package & Lower Tariff
spread of ultra-high-speed broadband in low-density areas of Italy:
• Fiber-optic backbone infrastructure provided in 310 cities in 8 regions.
• CEO of TIM: “We have added 5,000 new cabinets in the so-called white
areas, which can quickly connect 1 million people to ultra-broadband • Mobile broadband services in epidemic areas are not limited
services”. and are free of charge for 30 days.
• Italian government: launched 400 Million Euro plan to introduce optical • Enterprise users: 100 GB for one month
fibers to schools. • Fixed network users: TIM Vision free of charge until April 30
Luigi Gubitosi • Euro1.15 billion in vouchers to significantly increase the use of high-speed • Mobile traffic: national traffic of one month, free voice
TIM CEO fiber-optic services,

• Provide mobile broadband services in epidemic areas for free for

Digital solidarity for disaster relief, digital assistance, and fundraising 30 days.
• Extend the Double traffic promotion and promote the 3-year 50 GB
package for old customers.
https://solidarietadigitale.agid.gov.it/#/ • Student MBB package, unlimited traffic for one month
• Initiating a 7-Euro 50 GB Package Promotion Campaign
• The price of the unlimited package is reduced by 24.95 euros per
Digital Solidarity: Telecom Italia (TIM), major operators & industry players responded to month.
government’s call for digital solidarity, provided series of digital services to help people & • 100 GB mobile broadband in epidemic areas for free
companies to continue their business or maintain their lifestyles. • Low-tariff package for deregistered customers: 50 GB, 8 euros
• 100 GB free of charge in epidemic areas (Mobile Broadband).
• Nearly 100 services in five areas: Connectivity & services, online learning, work,
entertainment, support for citizens, etc.
19
Austria: Vienna invested €20mn to subsidize telcos' 5G base station construction costs

Total investment Subsidy for single site

20 million
Euro
New sites should be put
EUR 5,500/year x 5 years
into operation before
About half the total cost
June 30, 2022
27,000
Euro
On 8 May, Peter Hanke, responsible for finance, economy,
digitization & international affairs at Vienna’s municipal government
announced that from July onwards, financial subsidies will be
240 Base Stations per
provided to operators A1, Hutchinson Drei & T-Mobile Austria for
Operator x 3 Operators 5G deployment.

Marcus Grausam, Managing Director of A1, said that “investment incentives are
particularly encouraging given the fact that 5G services were put into commercial
Strategy "VIENNA 2030 - Economy & Innovation"
use in January this year and that 60 5G base stations are now in operation in
Vienna”. "VIENNA 2030" strategy defines 6 thematic areas:
• A1 to build largest 5G network in Austria, covering 54,000 square kilometers in • Smart solutions for life in the 21st-century city
129 cities. • Vienna as a metropolis of health
• T-Mobile: Operates 20 x 5G base stations in Vienna
• Digitalization, Vienna-style
• DT has spent 57 million euros on spectrum auctions in Austria & plans to use its
experience in initial 5G sites before expanding 5G nationwide.
• Smart production in the big city
• Hutchinson Drei: Hutchinson Drei operates 20 x 5G base stations in Vienna & about • Place of international encounter
100 5G base stations nationwide. • Vienna - a metropolis of culture and creativity
• Expansion of commercial 5G networks will be driven by market demands
20
Middle East: COVID-19 has limited impact on telcos, digital policies drive network construction
ahead of time
Authoritative view: COVID-19 has minor impact on ME
• Qatar will not be affected
• ME Telco remains stable
• Within half a year, with
limited impact
• Driven by digitization, long-
term improvement
WHY: Limited impact
HOW: Plan ahead
on the Middle East
• Digital operation, app payment • Countries such as Saudi and UAE launch the
"national digitalization" strategy to promote
anytime anywhere;
broadband construction;
• Network capacity meets traffic
• Network planning, ME operators launch
growth requirements and promotes
“network 2020 plan” , lay the groundwork;
network package upgrade;
• Event driven: UAE World Expo, Qatar World
• Demographic dividend, such as ET's
Cup, and Saudi's New City Plan, Building an
12.7 million users.
IoT World

Foreseeable high profitability drives ME Telcos to strengthen communication network continuously

Qatar Kuwait Jordan

• Build a digital society, especially a smart
community, and fight for COVID-19;
• Qatar announced private economic relief
totalling $20.5 billion to strengthen the
telecoms stimulus, including telecoms;
• Vodafone Qatar CEO believes that Qatar's
early broadband and 5G networks are fully
capable of sustaining the impact of COVID-19.
• Digital transformation: Al Amiri Hospital
achieves E2E digital healthcare;
• Digitalization is started, and the digital ID card
is launched for the first time. Strengthen OTT
cooperation and online payment ；
• Regulatory agencies open 3.3 MHz spectrum
to each operator.
Latest updated: 20 Apr 2020
Temporary spectrum, coping with network impact
• Umniah 5MHz，Orange 15Mhz，Zain 15Mhz
Strengthen ICT education, loosen investment
regulations, and become a technology center in
the Middle East
• Minister of Communications: High-Speed
and Reliable Network Is the Key to Support
Jordan's Digital Economy Target;
• Strengthen broadband construction and
implement FTTH access for most users;
21
Saudi Arabia: Backed by national 2030 strategy, keep the investment momentum and build a
network "breakwater"
2030 Strategy: National digital transformation
1. Be pioneering and dare to create
new directions
2. A model of excellence or success
3. Digital society, grand goal of 2030,
and mainstay mission of the
network
Build an excellent network foundation, which is the
cornerstone of digital development.
Telecom is the pillar industry of the national
strategy, and broadband+ 5G +Cloud is the
National BB strategy
inevitable choice
5G Strategy Cloud Strategy
From 2020 to 2025: 1. Build a world-leading 1. IDC: COVID-19 Drives Saudi
infrastructure network; Arabia to Pay More Attention
1. FTTH from 44% to 80%
to Cloud and Security
2. Internet user from 63% to 85% 2. TOP1 5G network in ME，
2. Stay home triggers the
3. Proportion of the information TOP4 in global； implementation of the cloud
industry from 20% to 40% 3. 5G availability during Covid- strategy. IDC: 33 billion USD
investment will happen .
19 is 34%, No.2 in the world；

Advanced network construction, achieving significant network “breakwater” effects; Abundant Cash and
Unremitting Investments Driven by Digital Transformation

Release all temporary spectrum of 20 MHz STC and Mobily share prices rose, and cash STC CEO is confident that the annual
to proactively cope with the epidemic flow was sufficient. revenue and expenditure are
normal.
• Saudi's stock market has fallen 24%t in five • CEO Nasser: Have confidence in
years, while STC's has risen 32%; maintaining the annual revenue
growth, with the Q1 revenue
• STC has sufficient cash flow and the CEO growth rate4.7%；
keeps acquiring Vodafone's shares in Egypt. • The CEO recognized the investment
• Profits of Mobily increased by more than in 5G, IoT, and cloud computing,
which boosted Q1 revenue.
50%.

Risks associated with the oil price crisis: VAT increases from 5% to 15%, potentially dragging down the telecoms industry
22
 Pakistan: Operators advise the GOV to improve regulation & industry status, reduce taxes, and
release spectrum
Background: Requirements & Suggestions of the Telecom Industry 1. Improve the status of the telecom industry

1. Social responsibilities must be supported by

corresponding positioning
2. High Telecom Taxes, Encumbering National
Digitalization
• Ministry of Industry and Production has agreed to give
3. Spectrum Grant/Auction Facilitates Life Improvement telecommunications industry a functional status
President：
Immediate guidance & • Locate functional industries • Take effect immediately, enjoy relevant rights, and assume
problem solving Operators • adjustment of various taxes corresponding obligations
Advice • Additional spectrum Functional industries: Social bases, such as schools, hospitals, water & electricity enjoy national
• Biology verification fees preferences.

2. Taxation Improvement, Accelerating National Digitalization 3. Accelerating spectrum allocation/auction

Status - based comprehensive tax adjustment Telecom Industry Requirements
1. Electric Power Regulatory Authority (ERC) provides 20% discount 1. Immediate granting of spectrum to all four
for industry operators in regions such as AJK/GB to
2. During COVID-19, 12.5% withholding tax reduction accelerate Broadband
Jazz CEO
Chairman of Committee 3. SIM Card, ID identification verification fee, cut about 2 billion 2. Transparent and predictable spectrum plan
rupees “Jazz has a lot of crisis-fighting
“Telecom tax improvement means
capabilities, but the government
& roadmap
more digital responsibilities and 4. Reduced contributions to funds, etc., and reduced supervision
should also increase spectrum.” 3. Release & coordinate existing + future
promotes national digitalization.” fees can save 2% of expenditure.
spectrums to plan 5G.
23
Africa: Improving digital response & developing digital economy are key to fighting Covid-19

Digital transformation in Africa is very necessary

World Bank Africa CIO

Africa faces a huge digital divide. Currently, only 7% of 770 million mobile connections are 4G, which means there are challenges but potential.

North Africa: Infrastructure network promotes COVID-19 information sharing, stimulate positive cycle of MNOs operation &
• Internet consumption increases by
87%
Egypt: • Prime Minister: Focus on Telecom &
Digital Transformation in new capital
Policy
• Gov. to subsidize 200 million
Egyptian pounds for people's Internet
tariffs
social responsibility through policies
• Increased by 4% in Q1, $150
• Algeria: 15M spectrum to
Morocco: million donated to fight COVID-19
operators
Network • Government launched "Digital Others
• Tunisia: Strengthened online
2025" & operators lead
payment & provide 5 discounts
• 5G coverage in virtuous circle

24
South Africa: Covid-19 drives GOV to solve network bottleneck, telcos promote rapid spectrum
allocation
Operator action: Initiated the "35 temporary high-demand spectrum license applications" plan &
promoted government to execute plan
• More than 90% of spectrum licenses have been approved, and all spectrums in South Africa have been
temporarily allocated.
• On May 5, Vodacom launched 5G services in Johannesburg, Pretoria, and Cape Town, accelerating 5G
development.

ICASA turns radical: “Telecom Industry Raises to the Position of National Economy and People‘s Livelihood for the
The "full spectrum" First Time”:
SA president:
release plan is quickly 1. Vodacom in South Africa quickly launched $27mn to increase network capacity;
Take the biggest curfew ever, except for health, safety, food 2. Vodacom，Telkom，MTN driven by policies, competition is intensified, and 5G deployment and
production, and telecoms practitioners. executed.
commercial use are accelerated.

Operators & Governments cooperate more quickly in face of epidemic

SA invests 10% of GDP to stimulate economy
More explorations & continuous progress needed
1 month, 330M
• South Africa's president signed $26.3 billion 10 years no action VS launch
economic stimulus plan to subsidize health
care, education & manufacturing
Temporary frequency VS Long-term
5.5, commercial
• Operators enter remote-education & support 5G Delay VS launch
government decision-making by cutting package
Taxation VS Reduction
prices.
More independent
• Government & related organizations raised $100 Strict supervision VS packages
Poor network VS Promoting national
investment
million to invest in virus fund by cutting salaries.

25
18 Countries took fast actions around spectrum, allocated Temporary or Permanent Spectrum
• Idle spectrum should be allocated as soon as possible, technology neutrality important
Spectrum strategy for epidemic accelerated
• Turn temporary spectrum allocation into permanent allocation with aim of fighting epidemics, restoring
economy, restoring employment
• Regarding economic & employment recession after epidemic, new infrastructure models emerged in China & US ,
investment can be driven by spectrum
Country Progress Category Initiation Data
Initiated by the carrier and
USA Large operator (Dish) borrows 600 MHz, 700 MHz, AWS spectrum resources from three major operators. Temporary spectrum
coordinated by the FCC
Mar20
Ireland Three operators obtain 700 MHz/2.6 GHz new spectrum, 2.1 GHz spectrum neutrality, 3+3 months Temporary spectrum Initiated by the operator Mar20
Saudi Arabia Operators add 10 MHz spectrum (700 MHz and 800 MHz). Temporary spectrum Initiated by the operator Mar20
Jordan The 900 MHz neutralized. 3 operators obtain new spectrums on the 900 MHz, 1.8 GHz, 2.6 GHz, and 3.5 GHz Temporary spectrum Initiated by the operator Mar20
Temporary spectrum
Tunisia All IMT-specified spectrum will be technology neutral.
(spectrum neutrality)
Initiated by the operator Mar20
Oman Provision idle 1.8 GHz+2.3 GHz (50 MHz in total). Temporary spectrum Initiated by the operator Mar20
Kuwait Allocate the remaining 25 MHz spectrum of 1800 MHz. Temporary spectrum Initiated by the operator Mar20
Cambodia Temporary issuance of 5G pre-commercial licenses to connect two ministries and hospitals for 5G healthcare Temporary spectrum Initiated by the operator Mar20
South Africa Temporarily open the 700/800 frequency bands for operators in non-interference areas. Temporary spectrum Initiated by the operator Mar20
The government has provided AWS 70 MHz spectrum to operators for 90 days free of charge to cope with the
Panama Temporary spectrum Initiated by the operator Mar20
epidemic.
Jamaica Two operators use the 10 MHz and 1900 MHz frequency bands for free for three months. Temporary spectrum Initiated by the operator Apr20
Haiti Digicel: 2100 MHz, 10 MHz, six-month temporary use Temporary spectrum Initiated by the operator Apr20
Supports epidemic fighting and accelerates the issuance of 3.5+700+2.1 spectrum and licenses during Initiated by the regulatory
Hungary Official release
authority
Mar20
epidemics.
Algeria The committee formally approved the 5 MHz spectrum applications for ATM and OTA respectively. Official release Initiated by the operator Apr20
Czech 900 MHz refarming Official release Initiated by the operator Apr20
Officially approved the first vertical network, which is mainly used for facial recognition. Related medical Spectrum officially Initiated by the regulatory
Japan. released for vertical
authority
Apr20
scenario research: 5G: 28.2 GHz to 28.3 GHz; LTE: 2575 MHz to 2595 MHz industries
Adjust the 700 MHz frequency band plan and officially provision services to accelerate the deployment of 700 Spectrum acceleration Initiated by the regulatory
China deployment authority
Feb20
MHz applications.
*Data updated to 23-04-2020
Temp spectrum is effective way to address traffic spike, speed and degree to make it available
in a long term perspective is key variable
Top ICT country’s spectrum policy: Enable GDP growth by 3.4% & unleash greatest social,
economic, & business value 3 Long-term use of Temporary
Spectrum

2 Temporary spectrum, “∆” variable in network development，risk or

opportunity? Ready for traffic spike &
change of behavior
Predictive value Opportunity Risk
Guide smooth transition
Capacity and coverage improvement “This is an opportunity. We
Telkom CEO: need to continue to observe
Solve the problem first, Defeat COVID-19 first Long-
“Spectrum is most the value of temporary Temporary
spectrum”. Term
valuable, even if it is Vodacom CEO
temporary”.
Capacity Improvement - 20% High Replacement Cost Unconditional reclaiming
1. 40+ Operators 1. High replacement cost for 1. Difficult to recover investment, such
Spectrum Planning • More sufficient construction funds
2. 1 billion people benefited hospitals as 27 million in Brazil.
1. Operator precise investment 2. Private lines are discarded, as UAE • Closer connections to countries
3. Coverage of 30 million people 2. Drive government to participate in
2. Aggressive capital investment medical network • More powerful driving force for
increased network construction
3. Digital policy development 3. Discard 5G pilots, such as digital transformation
3. High change costs. Vodacom's 5G pilot.

2020.3, ITU: Open spectrum resources, accelerate spectrum allocation such as 5G, meet COVID-19 Network
1 Spectrum is scarce and
irreplaceable
requirements, cover more people.
Status: Some governments remain cautious about spectrum allocation - 5G development delayed due to spectrum
allocation

27
Spectrum is a core asset of government in building digital society, early release drives more value
Unlock great potential through
available resources

More spectrum Spectrum plan & allocation in forward-

looking way
Global spectrum allocation is still Lower price Spectrum is a natural resource for social
severely unbalanced value creation
Faster delivery

Social value

Spectrum policy represents government

foresight and decisiveness

Economic Business
Source: BCG, Feb 2020 value value

Temp spectrum in over Top ICT country drives 3.4％ Ensure ROI, inclusive to
New normal of spectrum
40+ markets of GDP by spectrum policy more people & industries

During • Online work/edu/entertain Mid to • More online economic activities

Covid-19
GSMA calls for: allocate more
proprietary spectrum and reduce the
high cost
long term Unlock biggest value for society,
Mutual trust of gov and telco: Clear
economy & business
spectrum policy to enhance investment
confidence Tech neutral for market dynamics

Source: BCG，ITU，GSMA，BG MI
28
Ecosystem: 5G+ service innovation continuously promote industry digitalization
China South Korea Germany
Accelerate New Infrastructure & Seven Innovative 5G Governments & operators cultivate 5G strategic industries, 5G Enables Industry 4.0 & Improves Intelligence &
Applications to Promote Economic & Social Digital promote 15 innovative fields Digitalization of Manufacturing Industry
Transformation

Entertainment Automatic car Europe's largest 5G industrial park

Smart Healthcare Private Network Market target: 15% Fully autonomous technology
10 types of diagnosis 20 types of industrial aachen
scenarios and 80 hospitals terminals and 30 application
scenarios

Smart grid Internet of Vehicles

20 5G electric power 200-channel device Seven sub-projects: monitoring, complex control, AGV,
services and 20 application Demonstration in two AR/VR entertainment, cloud Core technologies for autonomous logistics, distributed control, blockchain, and edge cloud
scenarios prefecture-level cities gaming, golf, sports, shopping, and driving, V2X vehicle-road synergy,
wearables and 5G remote driving
Smart Education Smart Port Smart factory Smart manufacturing
Three types of applications 5 ports Smart port
200 5G smart factories
and 500+ terminals 30 gantry cranes
Human-machine collaboration, Hamburg
machine vision, automatic control,
intelligent sorting, and logistics
4K/8K Live TV
Super-large code stream source aggregation, signal
scheduling, and content distribution

5G Drone AR/VR Germany promotes use of spectrums ranging

Big Data
from 3.7 GHz to 3.8 GHz for enterprise or

Industrial Internet Robots AI campus network construction.

AI

29
5G/Mobile Industries are the Key Driving Force for employment & economy, spectrum is a
basic resources
Governments worldwide believe Investment of Mobile Industry will Entrepreneur worldwide Consider Spectrum as Driving Force for

bring economic growth & new job creation growth & new jobs

FCCG report suggests

USD216 billion UK GDP
216 billion growth over 10 years,
estimates 2 million new jobs
being created

US government estimates
3 million jobs will be
500 billion created & USD500 billion
will be added to US
economy as a result
Government of South Korea
expects to gain USD153 billion
in productivity & USD73 billion
226 billion in revenue from exports
 Also expects 600 000 related
jobs to be created by 2026.
SPECTRUM is the oil of the
mobile ecosystem, without which no
network infrastructure or devices can
operate.
• Future networks rely on combination of
mainstream technologies
• Will use both licensed & unlicensed
spectrum across different spectrum
bands together
The Impact of 5G: Creating New Value across
Industries and Society
IMPACT can be achieved in two
dimensions:
1. Economic Impact: employment
(payroll), economic output, profits,
investment
2. Social Impact: health, education,
livelihood, greenhouse gas levels, land use,
biodiversity, waste management, water
consumption water quality

30
Sources: Government results, Analysys Mason
Promote Obligations-binding Spectrum Auction: Open Infrastructure, Coverage
Obligations & Spectrum Neutrality
Spectrum Auction Bonding Infrastructure Openness Huawei promotes release of 5G Coverage Obligation Suite by Analysis Mason

German Government's "Open

Infrastructure" strategy

UK's NIC recommendations to

Government & Ofcom

China: MIIT announced in 2019 that

"...all infrastructure must be open &
shared"

Establish network criterias and bind coverage obligations.

Popular infrastructures for 5G

It is required that XX sites be deployed in XX.
Complete the coverage of high-speed railway main
roads.

Universal service requirements: XX% of the

population will be covered within XX years.
Internal report for Huawei

Extensive coverage for 5G – global regulatory best practice

The user-perceived rate will reach XX Mbit/s in

Authors: Stela Bokun, Andy He, Caroline Gabriel, Andrew Chern, Neil Kiritharan, Hugues -Antoine Lacour and Michela Venturelli
20 March 2020
Ref: 2020574-123

202X.

31
Fiscal & taxation policies: Improve telcos' cash flow, promote investment in telecom

Asia-Pacific: Various financial policies actively released, subsidies granted widely

• China: Subsidies for seven innovative 5G infrastructure projects will increase by 50%, and 5G investments of three
Government Fiscal and Tax Preferential Policies: Financial Security for
major operators will increase by five times by 2020. Economic Recovery & Digital Construction
• South Korea: 5G investment increased by 50% to KRW4,000 billion in the first half of 2019. Tax deduction rate
increased from 1% to 2% Now Future
• Japan: 15% of the investment in 5G base stations, etc., which can be exempted from corporate tax within two years Quickly build source of funds for non- Gain traction in building national
• Thailand: 5G spectrum auction fees are converted into subsidies. The government provides 10 GB traffic for each contact economy digital economy
person for home office.
• Malaysia: US$138 million Internet services; $92 million to increase network coverage; US$690 million national fiber to
the x (FTTH) Direct subsidy Indirect Tax Electricity fee
• Indonesia: The power subsidy amount increases by 8.4%. Operators increase efforts to apply for electricity fee subsidies relief discount
subsidies.

Europe: Increase investment in fiber coverage Investment Promotion: Economic Recovery & Positive Cycle
EU: 540 billion euro economic stimulus plan
Russia: $10.5 billion ICT infrastructure construction
Italy, United Kingdom, and Germany: Increase Scientific &
Carrier Enterprise
investment in fiber coverage.
Communications
technological production and operation recovery
infrastructure anti-epidemic Non-contact: remote office, remote medical
treatment, automation...
Construction acceleration resumption of
production

Americas: Increasing Africa: subsidizing HBB Middle East: Oriented to Digital

Investment in Telecom
Network Construction
US: $200 million for telemedicine and
$100 million for telecom network
construction
Brazil: $5.5 billion direct investment, the
No. 1 in the telecom industry
Directness Indirection
South Africa: $26.3 billion economic Strategic Investment Subsidies Subsidies
stimulus, subsidizing health, education + Saudi Arabia: Oriented to the 2030 strategy, the
manufacturing investment in cloud is US$32 billion, and the Government
Egypt: $12 million subsidized home Internet Increased funding for
proportion of investment in the information industry
& $24.9 billion stimulus plan is doubled communications infrastructure
Qatar: $20.5 billion private economic relief,
benefiting communications industry
32
 National Strategy: Countries with advanced ICT infrastructure, high level of digitalization can
provide more effective response to fight against epidemic & Economic Recovery
Weaker strategic investment and
Increased strategic strength, Strong strategic investment, leading
ICT infrastructure,
accelerated digitalization, more digitalization, efficient anti-epidemic
Be prepared & accelerate digital
effective anti-epidemic & economy recovery
awakening
Strength of National
Strategy
South
China Korea
Germany
USA
Saudi "5G +
Leading
Arabia Strategy"
Leading
Brazil Countries in the
"Digital EU
Speed up Strategy" "New
the "2030
Malaysia Strategy"
Infrastructure"
Releasing Strategy
spectrum,
brew India "Restart
national Economic Plan"
strategy
"Digital
South ASEAN
Africa Strategy"
Philippines
Nigeria

Digital Awakening stage Digital Molding stage Digital Maturity stage Digitization
33
Sources：BCG、BG MI etc
Implications for Ghana

3
2
1

1 2 3

Enhance ICT Solution with Business

Speed Digital Foundation Investment Accelerate Digital Ghana Transition
Resumption

34
 Summary of Spectrum Guidance Objectives and Strategies for Epidemic

1. Pandemic highlighted shortcomings across several dimensions in all countries globally

2. Broadband, high speed/high quality Broadband and 5G emerged as essential

3. Redefine connections & ICT which are lifelines during Covid-19 and growth engine for economic recovery

4. Five dimensions of MSTIE [Milestone, Spectrum, Tax, Infrastructure, Ecosystem]: Upgrading regulatory policies to lead

healthy development of economy paramount

5. Determine high priority growth areas for Ghana (low hanging fruit)

6. Enhance ICT Solutions with Business Resumption

7. Speed Digital Foundation Investment to usher in fully Digital Ghana.

35
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.

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.