Huawei presentation at TADHack 6/7 June 2014 at Teatro Goya Madrid

1. HUAWEI TECHNOLOGIES CO., LTD.
From Vision to Reality:
Building Successful Service Innovation
Ecosystem

2. Page 2HUAWEI TECHNOLOGIES CO., LTD.
Situation Analysis: Analysys Mason Prediction
on Messaging (severe competition) and ARPU
Telco messaging will become niche, anticipate rapid revenue decline as SMS moves to data.
Analysys Mason is predicting a >25% ARPU decline by 2018 in Western Europe.
Industry needs to find >$100B in new revenues within 5 years, else face decline.

3. Page 3HUAWEI TECHNOLOGIES CO., LTD.
Services are the key to future profits
Horace Dediu Asymco: April 2014
http://www.asymco.com/

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5. Page 5HUAWEI TECHNOLOGIES CO., LTD.
Operators have THREE distinct businesses
Distribution
Business
The new telco Opportunity: build an
ecosystem to drive distribution of unique
telco services
Services
Business
Connectivity
Business
Asymetric Competition: OTTs offer services
for free (e.g., Viber), close to free (e.g.,
Whatsapp). The “bundle” biz model of
“service + connectivity” of telcos makes it
difficult to compete .
A symbiotic relationship between telcos and
OTTs: (e.g. iPhone apps drive data
revenue.)

6. Page 6HUAWEI TECHNOLOGIES CO., LTD.
Platform economics – the Telecom API
ecosystem
ME
SMEs and
Enterprises
Operator A
Global (Telecom) Developer Community
Huawei Platform and APIs
Core Network, IT, Software and Services
Operator B Operator C
Platform Partners
Customers
Exposed Telecom Capabilities
creates potential for new services
New applications and services creates
demand for operator capabilities
Successful new communication services
create new demand for operators core
business (voice, messaging, data)
New
business
value
New communication
services add value to
operator’s customers
and reduce churn

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9. Page 9HUAWEI TECHNOLOGIES CO., LTD.
Indonesia (On going)
Southeast Asia
HongKong
CentralNigeria
West
Africa
Mexico
Latin
America
Netherlands
Europe China
Asi
a
UAE(on
going)
Middle
East
Egypt
North
Africa
Brazil
South
America
South Africa
South East
Africa
Aggregation: Huawei Hosting Centers to
support digital service transformation
l Now Huawei has 7 hosting centers (1 central, 6 regional) all over the.
l Other three regional hosting centers in Egypt, South Africa and Brazil are in building.

10. THANK YOU
www.huawei.com
Copyright©2014 Huawei Technologies Co., Ltd. All Rights Reserved.
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