GU@5MHz Application Scenarios

Market Positioning Typical Application Scenarios Customer Values

5~6MHz, Keeping GU900 is GU900 from impossible to

MBB Emerging Market: 1 impossible possible
U900 as MBB Wide Coverage
Accelerating MBB 2 6~8.6MHz, Heavy 2G Traffic More GSM capacity reserved,
Block GU900 Refarming Speedup GU900 refarming

>8.8MHz, Strong requirement for

3 L900 fast coverage since 700/800 Enable GUL900 tri-mode, fast
MBB Developing Market:
LTE coverage
U900 as MBB foundation not ready
Contributing to LTE Evolution 900MHz as UMTS foundation,
8.8~9.8MHz, Keep G+2U is Speedup UL2100 refarming
4
impossible

MBB Developed Market:

Minimum GU900 for Voice Target Network Evolution,
5 Minimum spectrum for GU, others
only & M2M UE for LTE Maximizing Spectrum Efficiency
5G Oriented Target Network

1
 GU@5MHz Cases

1 5~6MHz, enable G -> GU Nigeria MTN, 5MHz, G S443 -> G S222 + 1U (GU@5MHz PH2)

Uganda MTN, 8.2MHz, G S666 -> G S443 + 1U (GU@5MHz PH1)

2 6~8.6MHz, speedup G->GU
Tanzania Airtel, 7.5MHz, G S444 -> G S333 + 1U (GU@5MHz PH1)

GU@5MHz Application Scenarios

3 >8.8MHz, enable GUL900 tri-mode India Bharti: 8.8MHz, GU -> GUL (GU@5MHz PH1)

4 >8.8MHz, enable G + 2U

5 Minimum GU, others for LTE

2
Nigeria
MTN
Nigeria MTN One Page: Remove Spectrum Straitjacket to Make U900 Possible

Lack of Spectrum GU@5MHz Solution GSM KPI Stable Good Coverage

+21.06%
Call Setup Success Rate
900MHz 5MHz G S111 + U S111 @5MHz ON

2100MHz 10MHz 5MHz

GSM GSM Drive Test DL Tput +50%
UMTS
Week MBB Coverage

40% 3G UE Drive DL Tput 3.9Mbps -> 5.6Mbps

fallback to 2G
Quick MBB Coverage with Low Cost
14 Sites
High Cost of New Sites Commercial
Verification
“0” “0” +20%
Site rent fee up to Spectrum New MBB
$50,000/year/site Trial Site Buffer Zone Fee Site Traffic

3
Nigeria
MTN
Challenge : MBB Development is Blocked by Spectrum

Pain Points of MBB Development Limited Spectrum Block MBB Development

Urban Issue GSM only

900MHz 5MHz
40% 3G UE fallback to 2G
Bad indoor experience 1800MHz 15MHz GSM only
Congestion at hotspot
2100MHz 10MHz Only 2C for UMTS

Rural Issue
MBB Wide Coverage Revenue Ratio %
12%
1%
12% 75% Voice Revenue Ratio
Site Acquisition Issue Stable GSM KPI is a must
75%
Site rent fee up to $50,000/year/site
Voice Data Messaging VAS

U900 is the best Choice for MBB Acceleration How to Break Spectrum Limit for GU900?

4
Nigeria
MTN
Solution: GU@5MHz enable GU900 with only 5MHz
1000+ Sites Market Space
Jun.15 Jun.12 Jul. 27 Aug.27

G900 Migration GU@5MHz PH1 U900 GU@5MHz PH2

14 Sites Trial
& Refarming trial trial trial
Trial Site Buffer Zone

GU@5MHz PH1 to PH2, More UMTS Capacity GU@5MHz, enable smooth spectrum evolution

PH1 PH2 MBB

U 100%
Capacity
U 95%
U 85%

UMTS UMTS U 60%

5MHz 5MHz
1.2MHz 1.2MHz 0.6MHz 0.6MHz
5MHz 2G only 2G: 5MHz:
2G Migration 3G only
: M2M UMTS
GSM S111 + 1U @5MHz GSM S111 + 1U @5MHz
GSM G G O1
60% U Capa. G
85% U Capa. G
S2/2/2 S1/1/1
2G S3/3/3
Capacity

5
Nigeria
MTN
Value : Stimulate MBB Growth, Similar performance than U900

MBB Coverage Enhancement MBB Experience Enhancement Boost MBB Traffic

Bring More Data Revenue

Good Coverage Area +21% MBB Drive Test Tput +41% PS +21%, CS+13%
%EcNo > -15dBm from 75% to 96% Ave. HS-DSCH tput : 3.93 to 5.56 Mbps Similar Data Traffic and Better Voice
Traffic than U900

19000 +21% +21% 1600

+13%1400
18000
+10% 1200
G900 Only G900 Only GU5M PH2 1000
17000 800

92% DL Tput of U900 600

16000 400
Drive Test DL Tput@900MHz band
200
3.3 3.03
15000 0
G900 U900 GU5M
CS PS
GU5M PH2
U900 GU5M PH2

6
Uganda
MTN
Uganda MTN One Page: GU@5MHz Enable U900 for Low-cost MBB Coverage

80% 2G Connection Stable GSM KPI Weak Cov. Ratio -71%

63% Voice Revenue Ratio
GU@5MHz Solution
• Quick and Low Cost MBB Coverage 0.60

SMS 0.40
8% Devices
• Maintain GSM Capacity with Stable KPI
Incoming voice 0.20
Data EcIo
55% 34% Outgoing voice 0.00 ON
TCH TCH BCCH
1.2M 1.2M 2.4M Data +9.5% TCO Saved by 48%
UMTS
$5.8M
600,000 MB 55 New
Limited Spectrum Block MBB Growth 8.2MHz Sites
New $3M
500,000 Built Others
PS Traffic GSM S443 400,000 500 site
GSM S666 Re- 500 Sites
900 8.2MHz Trend UMTS S111 construct Refarming
GU@5MHz
500TB 300,000
ON
1800 11.8MHz
Online User
2100 5MHz
Trend
550K 1.2MHz Spectrum +6.2% Revenue
Capital: Kampala Saved
500 Sites
Commercial WIN
High Cost of New Sites Launched in -
Capital WIN
Uganda Nigeria South Africa
CAPEX: $50K
MTN MTN MTN
OPEX: $2.5K/Y

7
Uganda
MTN
Challenge : How to Accelerate MBB while keeping 2G Capacity & KPI

Heavy 2G Load block G900 refarming Limited Spectrum Block MBB Growth Bad MBB Coverage

79% 2G Connection
900
21.38% 8.2MHz Weak Coverage
48.12%
78.62%
1800 Ratio > 40%
11.8MHz
51.88% In Capital Area
2100 Only 1 Carrier for 3G
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020

5MHz

2G MBB
* GSMA High Cost for New Site

3G Traffic Ratio 84%

63% Revenue from Voice
SMS
3G Traffic Trend +87%
8% Devices
Incoming voice
CAPEX: $50K
Data
55% 34% Outgoing voice
500TB OPEX: $2.5K/Y

8
Uganda
MTN
Solution : GU@5MHz the best choice for U900 Deployment
Jul. 21 Jul. 26 Jun.28 Aug. 6 Capital: Kampala
500 Sites
Commercial
GU@5MHz trial GSM 12 sites GU5M Trial Report Launched in
preparation Refarming trial activation Capital

GU@5MHz Solution: Quick & Low Cost MBB Coverage, Maintain Stable Network KPI

TCH TCH TCH BCCH

1.2M 1.2M 0.8M 2.4M 2G Drop Call Rate 2G Call Setup Success 3G(U900+U2100) CS Call
(TCH)_MTN(%) Rate (CS)_MTN(%) Drop Rate(%)
0.60 98.00 0.30
0.50 97.00 0.25
UMTS 0.40 96.00 0.20
0.30 95.00 0.15
0.20 GU5M 94.00 0.10
8.2MHz 0.10 Activation 93.00 0.05
0.00 92.00 0.00
2017-07-17
2017-07-19
2017-07-21
2017-07-23
2017-07-25
2017-07-27
2017-07-29
2017-07-31
2017-08-02
2017-08-04

2017-07-17
2017-07-19
2017-07-21
2017-07-23
2017-07-25
2017-07-27
2017-07-29
2017-07-31
2017-08-02
2017-08-04

2017-07-17
2017-07-19
2017-07-21
2017-07-23
2017-07-25
2017-07-27
2017-07-29
2017-07-31
2017-08-02
2017-08-04
GSM S666 GSM S443 + 1U

9
Uganda
MTN
Value: Accelerating MBB with Optimized TCO

MBB Coverage Enhancement MBB Traffic Boosting Business Value

1 Evaluated TCO -48%
PS +9.5%, CS +5.2%
Weak Signal Quality (EcIo < -12 dB) -48% $XX M
55 New
GU5M
Activation New Sites $XX M
PS Traffic(MB)
Built Others
550,000.00 500 site

3G PS Traffic
500,000.00 Re- 500 Sites
450,000.00 GU@5MHz
construct Refarming
400,000.00
350,000.00
300,000.00 New Site Solution GU@5MHz Solution

2 3
2G+3G Volume (PS)_MTN(MB)
1.2MHz Equivalent +7% Revenue
Good Experience(DL_Tput>1Mbps) +24% Additional Spectrum by Forecast

CS Traffic(Erlang)
18,000.00
2G CS Traffic

16,000.00
14,000.00
12,000.00
10,000.00 Successful Case Replication
Uganda Nigeria South Africa
MTN MTN MTN
2G+3G Erlang (TCH AMR)_MTN(Erl)

10
Tanzania
Airtel
Tanzania Airtel One Page: GU@5MHz enabling GU900 to Accelerate MBB

Heavy 2G traffic block G900 refarming GU@5MHz : Speedup GU900 Refarming Data +32.2%, Voice + 2.3%

G444 G333 + 1U
900MHz 7.5 @7.4MHz @7.4MHz Daily Data(GB) Daily Voice(Erl)
15%
2G Voice
1800MHz 12.5M TCH TCH BCCH 2.4M
85% 3G Voice 1.2M 1.2M
2100MHz 10M UMTS
2017/6/22 2017/6/22

7.5M 2017/6/29 2017/6/29

Rapid MBB Growth Brings Capacity

& Coverage Issue
Spectrum Cost Revenue
Capital: Dar es Salaam
53% MBB traffic growth in half a year
562 Sites
Commercial
76% cells with TCP load >70% Launched in
Capital
1.2MHz 8% Increase
Saved ( Voice:data 8:2 )
40% 3G UE fall back to 2G

11
Tanzania
Airtel
Challenge : Limited Spectrum Block MBB Development
Limited Spectrum for Rapid MBB Growth Top1 High Utilized 3G Network in Africa

76% Cells 35.58%

900MHz with Avg TCP > 70%
7.5 Mobile Coverage Layer 26.90%

1800MHz 15.04%
12.5M 2G Capacity, discontinuous coverage 9.74%
5.50%
2.13% 2.22% 2.89%

2100MHz 10M MBB Layer, Only 2 Carriers

RNC3037 Avg TCP Utilization(BH)

Heavy 2G Traffic Block G900 Refarming Bad 3G Coverage Impact User Experience
68% Revenue from Voice 85% voice on 2G
MR ECNO at Busy Hour
15% (10:00 am ~ 11:00 pm)
32% Poor EcIo : 3~4 dB Gap
Avg -13.57dB for whole city
68%
85% Avg -14.3dB for Blue Circle
Benchmark: -10.5dB
Voice Non-Voice 2G Voice 3G Voice

12
Tanzania
Airtel
Solution: GU@5MHz Deploy U900 with Minimum Impact to G900
May.27 ~ Jun. 15 Jun.23 Jun.24 Jun.28 Jul. Capital: Dar es Salaam

5 Day and Night

Lean GU/ GU5M trial GU5M GU5M Start 278 Sites 562 Sites
Comparison Decision-Making Deployment Commercial Launch Deployment

Lean GU900 U Capacity GSM KPI

1 Solution Spectrum GSM Config
vs U5M impact
G222 + 1U @7.4MHz
High TCH
G444 @7.4MHz TCH TCH BCCH Lean GU U3.8+G3.6 S222 85%
Blocking
0.6M 0.6M 2.4M
BCCH UMTS GU@5MHz GU@5 + G2.4 S333 60% Little
TCH
3.2M 3.8
4.2M 0.6M 3.8M 3M
GU5M Minimize TCH Blocking Rate Degradation
4.2M 3.2M
2 GU@5MHz
G333 + 1U @7.4MHz
TCH TCH BCCH
1.2M UMTS 1.2M 2.4M

5M 2.4M
• 9 sites trial, 3 days average value after each solution

13
Tanzania
Airtel
Value : Quick Win in MBB, Better ROI
MBB Coverage Enhancement MBB Experience Enhanced

Weak EcNo(<-14dBm) Ratio -33% Total Tput +21.2% U2100 Tput +28.5%
1586.8
1463.7
1234.8 1234.8 1189.3

22-Jun
29-Jun
0

HSDPA User HSDPA User HSDPA User

Tput(kbps)-UMTS Tput(kbps)-U2100 Tput(kbps)-U900

MBB Traffic Boosting Business Value

Data +32.2% Voice +2.3% TCO Revenue

3699
4 23119
22608
2
2799 3
1 22-Jun
1.2MHz 10% Increase
29-Jun Spectrum Saved ( data revenue ratio: 32% )

Total Data Total Voice

14
India
Bharti
India Bharti One Page: GU@5MHz Enable GUL900 Tri-Mode

No1 in Mobile Market, GU@5Mhz: Enable GUL900, Fast LTE Coverage, Boost Data Revenue
But 4G fall behind rival 900M 8.8MHz
G222 + 1U@5.8M + L3M Mysore GUL900M
Market Share （GSMA: 2017Q2 ) 281 Sites Commercial
80% Launched in Mysore. Pilot
4G 9% More sites planed in KTK &
U3.8M L3M Mysore Region
9%
Mobile
23% 1.2M 0.6M 1.4M
0 100 200 300 M
JIO Bharti

850/900M 1800M 2300M

Spectrum Cost Site TCO Data Revenue
6479
6291
$10M in KTK Circle
4219 3MHz = $336M
7161 RRU & Ant No New No 8254TB per Year
5104
( from KTK 700MHz Auction ) 1181$ per TB
for GUL Site Installation
Bharti JIO
Source: KTK network site data

15
India
Bharti
Challenge: Weak Coverage, Expensive and Scare Spectrum
Weak 4G Coverage, Facing Fierce Competition Scare & Expensive Low Band Spectrum
Jio has better LTE coverage with more LTE sites Scare: <10MHz @900MHz in most Circle
15
LTE Site Num（K） Airtel LTE Coverage Jio LTE Coverage 8.8
8.8 8.2 9 10
337 10 7.88 8
6 67 6.26 6.66.2 77 6.2
4.8
5 2.6
128 104 105
49 69
20 0
37% 77% KTK RAJ DEL AP UP(E) BH WB KOL AS J&K
850 1800 2300 Total
900M 1800M
Jio Airtel

Jio Won 100M LTE Subs with Aggressive Strategy Expensive: Cost 61.8B at 700MHz
Jio focus on LTE and aggressive：Voice Free，Data Unlimited at night It costs 1770M USD per MHz ( India has 22 circles )

700M (M USD/MHz) 900M (M USD/MHz)

KTK 112 86
RAJ 55 109
TN 138 -
UPW 59 -
Pan India 1770

16
India
Bharti
Solution: CloudAIR Make L900 Possible for Fast LTE Rollout
Enable GUL900 Tri-Mode LTE Coverage Enhanced, Data Traffic Increased
With 8.8MHz on 900M Band 8~10 dB Coverage Gain than L1800 Total LTE Traffic +10%
Indoor Scenario： 8-13dB Coverage Gain
LTE Total Traffic Increase 10%
B8, -64dBm
• Before: G4.6M + U4.2M 13dB B3, -77.04dBm Daily
10%
+ 10dB 1800MHz (GB)
B8, -85.05dBm
12dB B3, -97.89dBm
1580
B8, -99.59dBm
L900
900MHz 8dB 8190 7811
B3, -107.65dBm
L2300
U4.2M
Urban Scenario： 3154 3037 L1800
0.4M 2.8MHz 1.4MHz
Save 33% Site with same coverage Before After

L1800 L900
900M Band Traffic Increaser 50%

• CloudAIR: GUL8.8M Daily 4876

(GB) 50%
Rural Scenario：
3254
L900 1.4x coverage radius, 2x area
U3.8M L3M

0.6M 0.6M 0.6M 1.4MHz

G4.6+U4.2 GUL8.8

17
India
Bharti
Business Value : Save $336M on Spectrum, Bring More Revenue

Spectrum Value L900 Enable More Revenue

Equivalent Additional Golden Spectrum Less sites from better coverage LTE Traffic Unleash for Monetization
Additional 3MHz in KTK Site TCO Saved Contribute $10M/year Revenue
30000
+10% Traffic
20000
Saving from 700M Spectrum Purchase One RRU & Ant for GUL 10000

0
Circle MHz Price $ Value
Mn/MHz From CloudAIR No New Site U2100 U900 L1800 L2300 L900

KTK 3MHz 112 336 Mn USD

No Installation Forecast $10M in KTK Circle
8254TB per Year, 1181$ per TB

CloudAIR help Airtel continuous business success, enable better VoLTE, Video services
18
 CloudAIR - GU@5MHz Footprint: Dreams into Reality

10+ Network Deployment, 4 Network Commercial Launch 2016.11

Beta & Commercial Verification

Russia India VF, Egypt ET, Poland P4

Lithuania Lithuania Telia, Turkey Turkcell
Poland Turkey
2017.6
India 1000+ Commercial Deployment
Egypt
India Bharti, Tanzania Airtel
Nigeria

2017.7
Uganda Try and Buy
Congo
Nigeria MTN， Uganda MTN
Tanzania Congo VF

2017.10
Ongoing
Russia VimpelCom

19
Thank You.
Copyright©2016 Huawei Technologies Co., Ltd. All Rights Reserved.
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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
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