4th CLT, Cancun, Mexico, June 20th, 2016 Open ROADS for a Better Connected Latin America Dr. Mohamed Madkour Vice President of Huawei Global Wireless Networks Marketing 4th CLT, Cancun, Mexico, June 20th, 2016

We are Proud we live in the most exciting decade in telecom history as consumers and provider of MBB of the change that has come to our lives in every aspect

1.5 Billion Mobile active users, 21% increase year-over-year 1 billion mobile views daily, average time spent on a mobile session 40 min More than 85% of users are mobile, 90% video watched on mobile 400M monthly active users, 90% photos 639 million monthly active users access from Smartphone 192 countries, ½ million stays per night $25B MKT cap 11 billion monthly searches, more than half from mobile 70 countries one million rides a day

Latin America mobility business numbers  success Explanation of circle: The most inner circle shows: the business model The middle circle shows the technologies supporting home broadband, i.e. FTTX and WTTX The outer circle shows the services, which can be provided by home broadband The lower three boxes represent various scenarios, where WTTX can be used. Business to Family is a new blue ocean for the operators. There are various of new services in the family business such as IPTV, Smart Home and Video Surveillance, etc. However, because of the high cost, FTTx cannot be deployed everywhere, so wireless access to families is a new choice for households. Thanks to WTTx technology, now only one CPE can support home broadband giving internet access to 20 households each.

Data Revenue Ratio Increase 20% in the past year 19% 22% B MXP M EUR M USD AM TLF MIC Source： Operator Annual Report， HUAWEI MI

Big 3G/4G Subscribers Increase in the past year 29M New Users Million 20% 180% Source: OVUM, Huawei MI

MBB Penertration Increased in the past year MBB Penetration 2014 40% 2015 50% 360 Million 290 Million 2014 2015 MBB Users Source: Huawei MI

How can we do better in next 3-5 years? Explanation of circle: The most inner circle shows: the business model The middle circle shows the technologies supporting home broadband, i.e. FTTX and WTTX The outer circle shows the services, which can be provided by home broadband The lower three boxes represent various scenarios, where WTTX can be used. Business to Family is a new blue ocean for the operators. There are various of new services in the family business such as IPTV, Smart Home and Video Surveillance, etc. However, because of the high cost, FTTx cannot be deployed everywhere, so wireless access to families is a new choice for households. Thanks to WTTx technology, now only one CPE can support home broadband giving internet access to 20 households each.

B2C B2V B2H B2C B2X X Factor for Business in a Better Connected World Enrich B2C Personal Enable A Better Connected World B2V Vertical Accelerate B2H Household B2C B2X

6.7 Billion 3.4 x X10 Mbps 30 300 Million 0.4 3 Billion The MBB World in 2020 2015 2020 x 2 3.4 6.7 Billion MBB users Personal x 10 x X10 Mbps Speed x 10 30 Household 300 Million household To be connected x 7 0.4 3 Billion Cellular Internet of Things Vertical

One size can NOT fit all for sure Different Countries  Different GCI Same Country  Different Markets Same Market  Different Users

Network Supply Data Demand Breakthrough actions Extract more value MBB Biz Success State C State B State D State A Extract more value Better monetization Add different services B2X Stimulate Demand Network Supply Enhance Network Unlock Traffic Data Demand

Actions for a Better Connected LA Explanation of circle: The most inner circle shows: the business model The middle circle shows the technologies supporting home broadband, i.e. FTTX and WTTX The outer circle shows the services, which can be provided by home broadband The lower three boxes represent various scenarios, where WTTX can be used. Business to Family is a new blue ocean for the operators. There are various of new services in the family business such as IPTV, Smart Home and Video Surveillance, etc. However, because of the high cost, FTTx cannot be deployed everywhere, so wireless access to families is a new choice for households. Thanks to WTTx technology, now only one CPE can support home broadband giving internet access to 20 households each.

Network experience is the foundation Audio Visual Interactive … HD Voice: MOS 4.0 HD Video: 8Mbps VR Games: 175Mbps Hologram: 4.6Gbps … Big 4G Super 4.5G Ultra 5G Basic 3G Ubiquitous Coverage Broadband Access Gbps Experience All-Connected World 2001 2010 2016 2020

Traffic by Service in Developing Countries Personal Experience Requirements Driven by Video 50% smartphone traffic will come from video by 2020 Source: GSMA & mLAB 2Mbps 720p 4Mbps 1080p 8Mbps 2K 20Mbps 4K 175Mbps VR ½ Screen 1Gbps 360º view Human’s need-for-video quality drives the need-for-speed PB per year >50% Video 7x traffic growth Traffic by Service in Developing Countries

100 M household WTTx Accelerates and Enrich Home Broadband Huge WTTx Opportunity in LA WTTx & FBB Synergy Speeds Up HBB Development >1km Low Density Household% Fast TTM Rural WTTx & MBB coordinated WTTx has advantage FBB has advantage D-CCAP WTTx + VDSL2/Vector WTTx SuperVector G.Fast Sub-urban Shorten ROI <1km <300m <500m Speed Up Subs Increase 100 M household Household% without FBB WTTx market space

Cellular Internet of Things Cellular IoT Enables New Life and Work Style eHealth, Electronic billboards Data Rate Transportation POS LPWA Application High Middle Low Application Scenarios of Cellular Internet of Things 2015 20M Cellular IoT Connections in LA 62M Personal 3X Home Industry Public 2020 Connected Car Asset Tracking Smart Parking Door Sensor Camera Smart Band Smart Watch Smart Agriculture Manufacturing Smart Meter

+ + + + Critical Communications and Building Safer LA Public Safety Commercial Verticals Disaster Recovery + + + + …… PTT Group call I Message Group Video GIS Video Surveillance from Push-To-Talk  Push-To-Video and more

= LA Mobile Data Traffic Increases 20x by 2020 x 20 X x 5 x 2 LA Typical Data Model Data Capacity x 20 Spectrum Efficiency X x 5 Site Density x 2 = Spectrum Bandwidth (High Traffic Area) Source：Huawei mLab

LA Mobile Operator Average IMT (MHz) Release More Spectrum 700MHz 2.3GHz 2.6GHz 3.3GHz 3.5/3.7GHz WRC-07/12/15… 1.4GHz Sub-700MHz …. 10M+ 40M+ Target 300MHz contiguous block LA Mobile Operator Average IMT (MHz) per mobile operator 300 160 2015 2020 Source：Huawei mLab Candidate

Open public facilities for site Open Public Facility for ICT Infrastructure 2x Site Density Open public facilities for site Lamp Pole Bus Station …… Sites / M pop Source：Huawei mLab

Last, government actions Technology neutral for higher efficiency 2G 3G 4G 5G Policy to Increase Site Density Release more spectrum quickly Services mobilization and demand encouragement

Let’s Build a Better Connected World TOGETHER Let’s Build a Better Connected World in Latin America