1. Huawei Corporate and IPv6 Network Evolution

2. Contents Global Market Progress Huawei IPv6 Strategy
Creating Value for our Customers

3. Sustainable growth
Contract sales from the international market (USD in billions) 30
23.3
75% 16 11
28% % % % % %
72%
8.2
65%
5.6
58%
41%
Page 3

4. Global operations 14 R&D centers, 29 training centers
HUAWEI TECHNOLOGIES (Headquarters)
R&D center
Huawei Headquarters
Technical support center
22 regional HQ and over 100 branch offices
14 R&D centers, 29 training centers
87,502 employees worldwide
Three-level customer service system (HQ/ regional/ local)
Page 4

5. Serving 36 of the world's top 50 operators
Deepen long-term strategy partnership
Providing UMTS solutions for Vodafone in Spain, Greece, Hungary, Romania,
South Africa, Turkey etc.
Strong strategic infrastructure partnership
Major GSM/UMTS/HSPA network supplier
Major supplier of Broadband, Transmission and Metro Ethernet for the whole group
Deployed networks in 20+ countries
Corporate strategy partner for 2G/3G, FTTx, transition etc
Solely responsible for constructing PS core networks in Germany, Britain, the Netherlands, Austria, and the Czech Republic
Deployed GSM network in Czech republic
IMS, NG WDM, GPON, Core router, IP Microwave, Femtocell supplier
Mobile broadband partner for building UMTS/HSPA networks in Italy and Brazil
Major FTTx supplier in Italy
BT: 21CN 供应商，承载网、接入网已覆盖英国主要城镇
Telefonica: 移动、宽带领域全面合作
承建拉美多个子网的GSM/WCDMA/HSPA网络
服务德国Telefonica/O2，建设重要城市GSM网络
CMCC: All-IP战略转型合作伙伴
GSM集采合同近1/4的份额
KPN:2G/3G 移动软交换唯一指定供应商
光网和基于All-IP的NG IP DSLAM主要供应商
DT:独家承建德国、英国、荷兰、奥地利和捷克分组域核心网(GGSN/SGSN)
IMS供应商
TI:承建意大利、巴西WCDMA/HSPA网络
意大利本土FTTB (GPON+VDSL2) 唯一供应商
AM:WCDMA/HSPA网络三大供应商之一
承建多个拉美国家WCDA/HSPA网络，份额达20％
To provide TELUS with LTE-ready HSPA network, which is the first such network in North America
Chosen by TeliaSonera to deploy the world’s first LTE/SAE commercial network in Oslo, Norway, bringing the unique advantages of mobile broadband service
Page 5

6. Huawei mobile market update
UMTS/HSPA
128 contracts
No.1(contract no.)
Mobile Softswitch
1.2 Bln+ users
No.1
GSM
3 Mln+ TRX
21% (shipment)
WiMAX
34 contracts
CDMA
0.48Mln+ TRX
No.2
Data until Q4 of 2008
Large-scale adoption of WCDMA by leading operators
WCDMA/HSPA network deployment in Europe, North America and Japan
The industry’s first commercial LTE contract in Europe
Page 6

7. All-IP broadband market update
Access
Optical Network
Datacom
Softswitch
31%
20%
31%
44%
1st
1st
1st
2nd
1st
DSLAM*(2008Q3)
Backbone Wavelength Division**(2008Q3)
Ethernet switch ports for operators* (2008Q2)
Mobile Softswitch*(2008Q2)
14%
12%
22%
GPON*(2008Q2)
2nd
1st
NGN VoIP* (2007)
24%
1st
3rd
MAN wavelength division**
(2008Q3)
Routers for operators* *
(2008Q4)
* By shipment ** By market share Source:Gartner, Infonetics, Dittberner, Ovum and etc.
Global leader in the access and optical fields; Leader in IPTime packet mobile transport
Mobile/NGN bearer network serves over 1.3 billion subscribers, ranking No.1 in the world
Page 7

8. Huawei in MENA MENA office being established since year 2000;
Headquarters of 2 sub-regions
MENA office being established since year 2000;
One Region and 2 sub-regions: Middle East, Northern Africa
22 branch offices across MENA and active in 33 countries
Over 4,800 employees, 60% of whom are local staffs
Page 8

9. Top 3 Vendor in MENA
Huawei is the top3 vendor in MENA and has established partnerships with 94 operators in the region.
operation in 7 countries
operation in 17 countries
operation in 12 countries
operation in 22 countries
No.1 in Morocco
No.1 in Qatar
No.1 Mobile operator in Iran
No.1 Mobile operator in Pakistan
No.1 in Algeria
No.1 Fixed operator in Egypt
STC
Etisalat
Orascom telecom
Zain
Maroc Telecom
Qtel
TCI
PTCL
Algeria Telecom
Telecom Egypt
Page 9

10. Huawei Product Portfolio
Customized Communications Network Solutions
Network Product Line
Wireless Network
Application and Software
Datacom
Network
Terminals
Fixed-line Network
Optical Network
UMTS
GSM/GPRS/EDGE
GSM-T/GSM-R
CDMA2000
IMS
Mobile Soft Switch
WiMAX
NGN
DSLAM
MSAN
Switching
LH/ULH DWDM
Metro WDM
OCS
NG-SDH(ASON)
NG-SONET
FSO
Router
LAN Switch
Security & VPN
GW & Server
Fixed IN
Wireless IN
Universal IN
Mobile Data
CDN/SAN
OSS/BSS
Digital Entertainment
Wireless Terminals
UMTS handset
CDMA handset
CDMA fixed terminal
Wireless data card
Wireless module
Fixed Terminals
ADSL Modem / STB
Video Conference
ASICs and Shared Platform
ISO 9001:2000/TL9000/CMM for quality control
ISO 14001:2004 for environment management
Page 10

11. Your trusted services partner
What we offer
Customers’ values
Network Rollout
Network Integration
Customer Support
Managed Services
Network Technology Services
Learning Services
Fast Time-to-Market
Efficiency Enhancement
Seamless Evolution
Business Transformation
Huawei attaches strategic importance to Professional Services and provides 24/7 customer service with the support of thousands of employees and engineers across the region.
Page 11

12. Contents Global Market Progress Huawei IPV6 Strategy
Creating Value for Our Customers

13. Booming Internet Traffic
Web 2.0
Source: Gartner
Source: Gartner
Based on Gartner report, Internet traffic doubles ~ every 12 months
Capacity of an individual equipment cannot keep up with the rapid growth
Network scalability is becoming one of the major challenges
×2. per 12 months
INTERNET应用增加，如WEB 2.0, YOUTUBE, FACEBOOK等，对网络新的要求。
×2.2 per 18 months
×2 per 18 months
Page 13

14. Route Expansion and Address Exhaustion
IPv4 BGP Routes
IPv4 AS Count
10K
30K
20K
120K
280K
200K
complicated
Source: IANA 2008 IPv4 Address Report
IANA IPV4 Routes and AS Count increase more than 15% per year!
IANA IPV4 Pool will be exhausted before 2012!
Address counts (/8s) in IANA Pool
200
100
增加数据出处: IANA IPv4 address report
Page 14

15. Driving to IPv6 Wireless Distributed Mobility Computing Consumer
GRID
3G/4G
Interactive
services
Wifi, Wimax
Mobile
Media
Content
Messaging
IPTV P2P Web2.0
Home
Networking
Consumer
Services
This despite increasingly intense conservation efforts
NAT (network address translation)
CIDR (classless inter-domain routing)
PPP / DHCP address sharing
Theoretical limit of 32-bit space: ~4 billion devices
Practical limit of 32-bit space: ~250 million devices (RFC 3194)
1.IPv6 The combination of 3G and 3G development, a key idea    a. Only the sufficiency of the address space of IPv6 in order to meet the needs of 3G permanent online to complete end-to-interconnect    b.IPv6 a variety of technical advantages, the natural right to make IPv6 has a strong compatibility with a variety of business can apply different requirements for different services, which is extremely advantageous to carry out 3G business    c.3G's standards, have been identified UMTS R5/R6 will gradually All IP transition, and many of them technology dependent and IPv6, in particular, Mobile IPv6 2. Distributed Computing and gradually developed, and is likely to become a major customer of a web application development    a. U.S. Department of Energy Science Grid, the U.S. Department of Defense's GIG, the British Government's UK National Grid, China's national grid, the application of grid technology reflects the distribution of large-scale computing requirements, also require networks need to do the possible spread to various places at the same time, the technical requirements take a lot of network bandwidth, also requires us to operate the network bandwidth, the need for greater expansion   b. cause a distributed computing is growing demand for expansion of network computing, is currently distributed throughout the enterprise network data management, computing needs, that is, the next 3 to 5 years, the network operators the need for end-users on the network 3. The early days of the end-user is a network of direct driving force for   a. the development of end-user speed and quality directly affect the success of network services to carry out as soon as possible the development of high-quality network services the user is the basis for the development of   b. In the end-user not only the presence of large customers, there are also quality customers; such as regular Internet users play online games, such as regular Internet users to chat, it is important that he can not now the amount of revenue for operators, but rather cultivate a a familiar network, the network of people obsessed with   c. With the growth of end-users, the network will not be used solely for games, chat, will continue to exist with refrigerators, washing machines and other household appliances, these huge number of network terminals will require a large number of addresses, but will also need a operational requirements to meet a variety of different bearer network platform capacity, content computing, publishing and application capability of the network, combined with excellent IPv6 mobility, network applications will be gradually extended to all aspects. All in all, this business can not develop without this set of IPv6 protocol architecture, construction, commercial Ipv6 network will be the next 3 to 5 years, the main trend of network construction.
Page 15

16. IPv6 is the ultimate solution
Increase Service Process x Y
Network Cost XB
Current Traffic
Network Cost trend curve
Network Traffic
The later to import IPv6，the longer to transit from V4 to v6
NAT and other Address Translate
Apply Private IP address
Equipment upgrade
Effect on Service
Provision speed
Increase Network
Complexity
Increase CapEx
and OpEx
Increase Network Delay
Increase Equipment
Performance
If apply IPv4 Private Address, service provision speed will be affected and network cost will increase.
NAT can slow down the consumption of IPv4 address, but not a permanent solution
Destruct end-to-end connectivity, NAT and ALG etc.postpone business cycle.
Private network address space is limited, Increase the complexity of deployment.
Reduce performance, it is difficult to deployed on a large-scale.
Increase network cost of the long term.
Later deployment of IPv6, the total cost is higher.
At present, IPv6 transformation costs x billion. IPv4 networks need more intercommunion cost, and total cost higher than IPv6 network (blue line)
IPv6 transformation more later, the total cost more higher and the transformation cycle more longer. (green line)
IPv6 is the ultimate to solve the shortage of IP address, it has reached consensus to deploy IPv6 globally.
Page 16

17. Main considerations of IPv6 deployment
customer
Network impact is minimal, the user is no-perceived.
IPv6 users visit IPv4 service.
Enhance the user experience of IPv6
cost
service
Weighed between the cost of reconstruct and upgrade, choose the time to introduce
IPv6 mobile services, dual stack terminal cost, single-stack terminal need large volume of NAT-PT.
Start from closed business, interoperability is undemanding, easy to deploy.
IPv4/IPv6 will be long-term coexistence.
Integrated service intercommunication
IPv6 Deployment
network
Reduce impact to the network, consider build a new private network, using an independent IPv6 Gateway to access IPv6 users
Consider the end-to-end deployment of IPv6.
Page 17

18. All Nodes will evolve to IPv6
Evolution of IPv6 E2E Solution
Internet
NGN/IMS
IPTV Server
IPv6 is a step-by-step evolution, IPv4/IPv6 will co-exist in a very long time
Terminal
Access
Network
MSCG
Control
Management
Service
All Nodes will evolve to IPv6
The parts of IPv6 E2E evolution:
the network nodes, including the access, metro, backbone, management, terminals and services.
The objectives of IPv6 E2E evolution :
upgrade the whole network to IPv6.
The State of IPv6 network:
Chips and external components of the main vendor equipments support IPv6 well, can be upgraded to support IPv6 natively.
Main vendors support IPv6 routing, VPN and other basic protocols well; IPv6 access, interoperability waiting for standardization.
Page 18

19. IPv6 Network Evolution Steps
Future stage: native
IPv6 network
Mid stage: Provide IPv6
Access network Ⅲ Ⅱ
native V6 network
Initial stage: Interconnect Isolated IPv6 network
V6 Access and service migration Ⅰ
New users only IPv6 access
IPv6 Networks
Build up V6 backbone
The metro network has IPv6 service accessed capabilities
Dual-stack and IPv6 access network coexist
IPv6 networks are only small and medium-sized experiment network
Native IPv6 core network , IPv4 network only constitute small and medium-sized local network
Few IPv4 local network communicate each other through the IPV6 network
IPv4 and IPv6 mix-access and intercommunicate
Provide large IPv6 core network structure or switch plane
Move resources, services and applications of IPv4 networks to IPv6 Networks Gradually
Isolated IPv6 networks can communicate with each other.
Accumulation of IPv6 network design, operation and maintenance experience.
Page 19

20. Continuous innovation - independent research and development of the IPv6 core chips
Huawei high-level ASIC chip full support for IPv6 features,
Greatly enhance the T-bit core router brand competitiveness
Page 20

21. Continuous innovation - a comprehensive operating system support for IPv6 network
VRP
Inside
VRP OS ® (Versatile Routing Platform) is a generic Huawei software platform IP products, VRP5 full support for IPv6
Huawei's participation of the standard / draft more than 20, involving IPv6 multicast, mobility, security, network management, etc.; Huawei IPv6 related fields in more than 60 patents
Page 21

22. Huawei IPv6 Architecture
Management layer
SNMP v6
SSH v6
DNS v6
Cops v6
Alarm/LOG
Value-added Service
FW v6
SBC v6
DPI v6
IPSEC v6
Mobile ipv6
NetStream v6
PPPoX v6
DHCP v6
/Snooping
Radius v6
NAT-PT
VPLS/Vlan Access/
Interface
management
Service Access Control
IPv6 QoS
ACL v6
MLD
/Snooping
VRRP v6
Service Transport
MPLS (PWE3/EoMpls/6PE/6VPE/TE)
IP(6over4/6to4/GRE/L2tp/Isatap)
Base Protocol
Base Ipv6 Protocol (Address/Interface/ND/ICMP/socket)
Unicast routing
protocol
Multicast Routing
Protocol
Link-layer
PPP
Ethernet
HDLC
FR/ATM
Base Platform
IPv4 & IPv6 Share Resource Platform
Page 22

23. Dual cooling 1+1 Redundancy Dual Power Supply 1+1 Redundancy
NE5000E Single Chassis
LCD
Item
Specification
Backplane Capacity
4 Tbps
Switching Capacity
2.56 Tbps
Port Capacity (bidirectional)
1.28 Tbps
Forwarding Performance
1600 Mpps
Dual cooling 1+1 Redundancy
Dual MPU 1:1 Backup
SFU 3+1 Redundancy
Intake
Dual Power Supply 1+1 Redundancy
19” rack mountable, H x W x D = 160 x 44.2 x 66.9 cm
AC/DC Power Supply; Max Power Consumption: 5KWatt
40Gbps full duplex per slot
MPU: 1/2GB Memory, scalable to 4GB; 512M Compact Flash Card
16 LPU: 512MB CPU Memory, 256MB packet buffer
4 SFU: Non-blocking crossbar switching fabric, 640Gbps per SFU,3+1 redundancy
NE5000E fully supports IPv6 commercial use, and got IPv6 golden authentication
Page 23

24. Huawei Contributions to IPv6
Full IPv6 Solution
2008 and beyond
2006, IPv6 Ready Certificate Phase-2
2006
- 2005/10 :IPv6 Multicast,QoS on VRP, IPv6 Ready Certificate, Phase-1
2005
-2004/10 NE5000E/NE80/NE40 participates CNC IPv6 test with nice performance
2004
2003/08 Release VRP5, commercial IPv6 version
2004
2003
2004/01 Release IPv6 package for 5th Generation high end router
Page 24

25. Huawei IPv6 Solution Highlights
Comprehensive IPv6 Support
Support RIPng, OSPFv3, BGP4+, ISISv6 and ISIS multi topology
Support of IPV6 Multicast and IPV6 security in all the core routers.
IPv6 ready on all line cards and interfaces with vigorous testing
Support all main steam transition technologies
Wire Speed IPv6 Performance
Only vendor with wire speed 10G POS forwarding at 60 bytes .
Leading Migration Solution
Leading IPv6 application experience, An absolutely dominate share on CNGI
Distributed and hardware based Tunnel processing at wire speed
Only vendor with wire speed Gigabit NAT-PT capability
NP based 5th generation implementation
Combine both the advantage of ASIC performance & CPU flexibilities.
Page 25

26. Contents Market Progress Globally Huawei IPv6 Strategy
Creating Value for Our Customers

27. Industry IPv6 Deployment Status
China Telecom
2009 deploy Experimental IPv6 network, in try to be commercial , the critical period to argue IPv6 service deployment, the Telecommunications Research Institute draft guidance of large-scale IPv6 introduction, Hunan Telecom starts IPv6 test point. In 2010 Shanghai World Expo and Guangzhou Asian Games will consider to display IPv6.
China mobile
3G mobile broadband deploy IPV6, to resolve the limitation of private network address space. The original IPv4 reserve is very limited, the mobile broadband has more requirements. During 2010, China mobile will deploy 3G IPv6 commercial services.
China Unicom
2010 commercial-scale test users will reach at least 20,000, China unicom will build a new type IPv6 access network, the users will be at least 15,000; upgrade existing broadband IPv4 access network, develop IPv6 end-users at least 5000.
France Telecom
2009 Q2-Q3 FT will deploy Enterprise IPV6, in 2009 tests the family and the mobile service, in 2010 deploy the family IPv6 Livebox, the Core network maintains IPv4 temporarily. Poland subnet has strong interest, actively discusses the deployment of IPv6 solution, requests the current network equipments support dual-stack.
Japan
IPv6 large-scale commercial from 2005, package the new concept of next-generation network, provide high-speed network services based on IPv6, leveraging next-generation network evolution, and promote various IPV6 new technologies and new services.
America
The U.S. government required government and Defense departments migrate telecommunication network into IPv6 platform before the summer of It led that the United States new applied IPv6 addresses reached 14,729 pieces, the world's ranking jumped from No. 11 to No. 1.
Page 27

28. CERNET2 in China Background Huawei Solution How Benefited
CERNET---China Education and Research Network, built since 1994.
CERNET2--- The world’s largest pure IPv6 network, built in Dec
Connecting 200+ Universities and 100+ Research Institutes in China at 1Gbps-10Gbps
Huawei Solution
CERNET2 backbone connecting Giga POPs at 2.5G-10Gbps;
Multicast, E2E performance monitoring, Middleware and Advanced Applications;
Over 80% of the key equipments that CERNET2 network used are from Huawei
How Benefited
The world's largest pure IPv6 Internet backbone network 04年12月，CNGI-CERNET2主干网开通。06年9月，通过技术鉴定，为教育信息化创新发展打下基础
2.5—10G，20个主要城市，25个核心节点
1-10G高速IPv6接入服务
高速连接全球下一代互联网
已接入近百所高校
总体技术水平世界领先，部分技术属国际首创
世界规模最大的纯IPv6互联网主干网
立足于国产设备和自行研发
2006年中国十大科技进展之首
CNGI: china next generation internet
Provide services for education and research , also for international collaboration;
Lay solid foundation for education development
Page 28

29. China Netcom CNGI IP Backbone
IPv6 server(voip,VOD, video monitor…)
Management server
CHINA169
IPv6 Enterprise
NAT-PT
Education Networks SY CC BJ
China Telecom
Core LZ SH CD GD
Convergence
Mobile
IPv6
WLAN
IPv6 ADSL access
Network Service： VOIP, VOD, video monitor, IPV6 adsl access, Olympics applications etc.
Page 29

30. Shanghai 3TNET broadband multimedia network
SH Culture& Broadcast IPTV System
CHINANET
VOD Central
Middleware
NE80E
CERNET
Minimum 40Mbps per user
NE80E
CNGI
3TNet / IP
NE80E
IPTV, internet, game service, VoIP in the future
IPv4, IPv6 Dual stack
2006 December check and accept
10G
10G
10G
10G WDM
10G WDM
ME60
ME60
ME60
ME60
ME60
10G
10G
10G
10G
10G … … … … …
S8500
S8500
S8500
S8500
S8500 … … … … …
S3000
S3000
S3000
S3000
Shanghai
minghua
Hangzhou
Nanjing
Shanghai
changning
Shanghai
jiaoda
IPTV：30k subscriber, 101 IPTV channels, 2000 VOD channels
Page 30

31. Senegal Backbone Network Topology
Tambacounda
Kolda
Ziguinchor
11 regions
40 ministries
Up to 60,000 users
3 core nodes in 2.5G RPR ring
4 cities covered by 2.5G optical transmission
4 cities covered by microwave
Each nodes has 2 routers for redundancy
VoIP, Videoconference, Data services
Data center
FATICK
DIOURBEL
NE40
NE40
NE40
NE40E
NE40E
KAOLACK
NE80E
THIES
NE80E
NE80E
DAKAR
MATAM
NE40
LOUGA
NE40E
SAINT-LOUIS
NE40E
:2.5G RPR
:pos2.5G
:Micro-wave( FE )
Page 31

32. Uganda e-Government 2.5G RPR, MPLS 2.5G RPR, MPLS 2.5G RPR, MPLS
SQL DATA
URA
SPS/SRS
SPS
Numen Server
2.5G RPR, MPLS
Ministry of Public Service
2.5G RPR, MPLS
MA5200F
President office
Makerere University
Ministry of Justice
MA5200F
Ministry of Health
2.5G RPR, MPLS
Ministry of Edu&Sports
RR1
NE80E
NE40E
RR2
Ministry of Works,
Housing&Communication
RR: NE40E
Ministry of Prime Minister
Page 32