Roadmap to Convergence

www.huawei.com

Moheb Adel Ramses Technical Sales Director, Mobile Networks MENA Region

10th Annual ARABCOM 2007 SUMMIT - Dubai April, 11th

HUAWEI TECHNOLOGIES Co., Ltd.

ICT An Industry in Transformation

Change of Revenue structure

Converging Industries

Value Chain Transformation

IP Centric Transformation

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Transformation Arises Challenges

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

IP era
Voice Content & Apps. web Game e-Biz etc Bearer Network

Huge new Market. But It is occupied by ISP such as Yahoo Ebay Google etc operators are bypassed.

Bandwidth is increasing, but no revenue because of P2P(BT, Edonkey etc).

3 4
Access Network Terminals

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

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

With the development of IT and/with IP, operators will face challenge from services, network, value chain and business model. ARABCOM2007
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Challenges mandate Transformations

Key Factors of Transformation

Environment Financials Actions

Despite challenges, huge business opportunities are arising with Industry Transformation

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Huawei Vision about Transformation: FMC based on ALL IP

Multimedia RingTone Video call/Rich call Multi mode terminal UPT Personal App

Business Operating Support System

One billing, multi services and tariff package GSM/UMTS/CDMA/WiMAX/WLAN GSM/UMTS/CDMA/WiMAX/WLAN

Platform

Mobile Access Fixed BB Access

Bearer Layer

Service POP

Call Center

Metro IP over WDM MPLS IPV4/IPV6

BRAS GSN WSN MG

Service Control
IMS core (CSCF/HSS/)

ICT Platform

Enterprise Gateway Security Centrex/VPN

xDSL /FTTx/Cable/Ethernet Operators /FTTx/Cable/Ethernet

Organization support

Network oriented to Customer oriented

Media App Platform

IPTV/Mobile TV Music/Gaming Home Gateway

Convergence Broadband Ubiquity Intelligence

FMC Business is supported by operators merging, acquisitions and VNO businesses ARABCOM2007
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built over an ALL IP Network

FMC Driving Factors

Fixed operators extend to mobile domain: Defend Against FMS Mobile operators extend to broadband domain: Best coverage, new revenue source Integrated operators: Cut down the OPEX/CAPEX by converged architecture

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FMC benefits: Boosts Operators Profitability

Advantages of integrated operators Fixed/Mobile Bundle Profit Model

Fixed lines

Mobile users

DSL users

VoIP users

IPTV users

New opportunities: Broadband Mobility

Fixed

Mobile

Fixed Mobile

Through differentiated services, grow market share and increase ARPU

Large customer base in fixed and mobile Large market share and growing numbers of broadband customers

1
Differentiation

Among the Top 13 operators (54% of global market share), 8 are Integrated Operators (in addition to 1 fixed only and 3 mobile only operators) ....from gartner ARABCOM2007
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Se rvi ce
Market share

ex pa ns ion

Multi-services operator has many advantages in the market including:

ARPU

FMC Benefits: Empowers TCO Reduction

Internet Internet Mobile Mobile

From several separate networks to one converged network From dedicated teams/process to consolidated team/process With the current challenges facing Telecom Operators, TCO reduction is crucial to create a healthy ecosystem
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Fixed

Fixed

Control Core
IP Bearer

FMC benefits: Enhance Customer Base, Loyalty and Experience

Cross selling opportunity Grow customer base by cross selling to new fixed and mobile customers Capitalize on existing customer relationships Convergence as retention tool Customers with multiple products have lower than average churn rate Functionality or adjacent services linking multiple products raise the exit barrier Enhance Customer Experience One Number One bill

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IMS at the Core of FMC

IMS benefits:
AS HSS HOAS

Time-to-Market Lower cost Best of Breed

MGCF

PSTN/PLMN PSTN/PLMN Other Other SIP Network SIP Network

S-CSCF /BGCF I-CSCF

Value Chain control Integrated & Interoperable services

P-CSCF

AGCF

WCDMA TDM CDMA xDSL / LAN Access Layer WLAN

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Smooth Approach to FMC Deployment

Voice over CS domain (fixed and Mobile) still dominating and fast growing (cash cow) Large Scale VoIP taking over only small part of voice services in the following 10 years.

Actions in initial phase: Soft-switch for Fast growing voice market, smoothly migrate TDM to IP Initial IMS for Non-real time service, VCC, CSI & Enterprise market

Achieve Safe and Smooth network transformation

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Experience Huawei IMS based FMC

Mobile phone

Mobile Office

Video On Demand

Mobile Portal

Mobile TV

Mobile Commerce

Mobile Video Conference Video phone

Shortcut to IMS FLASH.exe.lnk

Location Based Service

Internet Interactive Game

Simply. A LOT
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In Brief: Huawei Vision about Key Transformations

A Mobile Life with Service Orchestration

To realize E2E FMC Solution based on ALL IP with IMS at the core, ensuring at any time, in any place and with any terminals, users can enjoy seamless broadband services and experiences without discrepancies. ARABCOM2007
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Worldwide Presence with IP core networks

No1 in NGN: 350+ commercial sites, 50+ countries No1 in NGN: 350+ commercial sites, 50+ countries No1 in MSoftX3000: 60+ countries, 100M+ subscribers No1 in MSoftX3000: 60+ countries, 100M+ subscribers

NGN: 70+ operators including regional NGN: 70+ operators including regional and global leading operators and global leading operators

BTs 21CN Objectives.

st The global 11stlarge-scale The global large-scale IMS and FMC commercial case IMS and FMC commercial case

Main supplier for BT21CN Main supplier for BT21CN project, on access network and project, on access network and optical network business optical network business

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Thank You
www.huawei.com
About Huawei Technologies Huawei Technologies Co., Ltd. (Huawei) is a worlds leader in providing customized products and solutions for telecommunications operators around the world. Specializing in wireless solutions, networking products, application and software, as well as terminals, Huaweis products have been deployed in over 100 countries and has been serving 28 of the worlds top 50 operators. Huaweis contract sales reached US$8.2 billion in 2005, more than 58% of which was from international markets. For more information, please refer to our web sites http://www.huawei.com