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FOREWORD

Home Broadband is the Blue Sea for African Operators

Access to the internet shouldn’t be a luxury; it should be a right - an absolute fundamental to life in the 21st century. According to the ITU, 151 countries had released national broadband plans by the end of 2016, however, over 50% of households worldwide had no broadband access. In developed countries, 84% or over four-fifths of households are connected to the Internet, but in Africa, the fixed broadband access rate is less than 13%, and in some countries less than 5%. African people have a high demand with regards to internet access at their homes, so there is still huge potential for the African home broadband market, and the ARPU for home broadband is 4-8 times higher than that of mobile broadband. The home broadband market is a blue sea for African operators.

There are however, some challenges for operators intending to deploy fixed home broadband, for example, huge investment costs, long ROI, area identification, fast deployment, and user attraction. An FTTx and WTTx collaborative network can get the best ROI. For different scenarios there are different steps to develop home broadband. Huawei has the tools, methodology and experience to develop home broadband. We will share some successful cases as well as assist in all phases of the project, for example, identifying value areas, precise investment planning, agile operation, maintenance and maximize network utilization; all with the aim of helping operators grow their business.

Let’s work together to eliminate the digital divide and enable more African families to enjoy the internet experience via home broadband.

Foreword | 3

Technology is constantly evolving and a variety of new technologies and applications in the home scenario continue to emerge. Home broadband service is not just internet surfing but extends to entertainment, health, education, safety etc. Transforming our lives. Smart home is a reality with applications such as home surveillance, home security, home health, home energy, video communication and entertainment. Over the past few years, demands for 4k video, IOT services and video surveillance for households have been on the rise. Operators will require networks providing low latency and high bandwidth to provide these services and deliver a superior user experience.

INDUSTRY TRENDS & INSIGHTS

4 | Industry Insights and Trends

Home Broadband will enrich the experience of end customers1

Industry Insights and Trends | 5

In order to guarantee the user experience of video services, 25Mbps is the basic requirement for access bandwidth and ITU recommends 25Mbps as the baseline for broadband definition. Based on the trend of future business and content analysis, we forecast that 50Mbps will be the mainstream bandwidth demand by 2020 for the home market.

The 4K industry is now mature. 4K TV sets are widely available on the market, and there is an abundance of content. More than 15 top tier operators have already launched 4K by the end of 2016. The main driver for broadband is video and top quality video content. Currently, 4K is the highest standard but in the future ultra-high-definition content such as 8K or VR/AR that will be the requirement. One thing for certain is that you will certainly need bigger and faster broadband pipes to deliver all this data to households.

6 | Industry Insights and Trends


By 2020, there will be 330 million new homes with more than 25Mbps bandwidth. Today, Southern Africa has 3.5 million households with broadband access. Over the next five years it is expected that a further 22 million households with an average ARPU of 25 dollars, could potentially have access to home broadband. This could possibly generate a market value of around 6.6 billion dollars.Through the survey of 228 TOP operators worldwide, 110 operators provided FMC integration business in 2010, this figure rose to 160 by 2016, and expected rose to 197 by 2020.

Mobile operators among the 228 top operators realized rapid development of FMC. VDF FBB users have reached 28M. China Mobile developed 77M FBB users in five years, achieved 30% the market share. Telefonica developed 3.9M user in three years by adding “Fusion” bundled package, get the first FBB market share which up to 47%, FTTH users grew 33%, IPTV subscribers grew 58%, and ARPU value up to 75.5 euros, while the Spanish average is 47.1 euros. By providing converged services, operators can provide mobile backhaul on a fiber, enterprise line, smart city, video surveillance and home broadband services, maximizing fiber investment is realized.

2 Home Broadband is a Pivotal Business to Increase User Stickiness, Business Income and Enhance ARPU Value

Through the home broadband access, you can bind fixed, mobile, video, broadband Internet access and other services, increase user stickiness, enhance ARPU value, increase business income. South Korean carrier LGU + through the provision of converged business, ARPU value from 68 dollars to 113 dollars.BT Sport and China Telecom achieve the integration of the content and achieve the ability to change broadband into cash; Vodafone, MTN, Indosat, China Mobile achieve the MBB and FBB integration, enhance customer loyalty, so that the user base increase rapidly.

“Now, you cannot, of course, talk about strategy and the future without talking about convergence” Vittorio Colao, Vodafone Group CEO


FTTx to Achieve Giga bps Access Best Experience3The emergence of OTT videos and 4K TV is accelerating ultra-broadband network deployment. Fibre to the Home (FTTH) offering high bandwidth is suitable for green field areas, but is costly and difficult to deploy in brown field areas due to complicated civil works. G.fast, which reuses existing copper resources can reach speeds comparable to FTTH (1Gbps) and is well-suited for brown field areas. G.fast is rapidly attracting a great deal of industry attention due to faster access, faster deployment, and faster return on investment.

The ITU-T released a draft G.fast standard for comment in December 2013, and related chipset and product design has started across the industry. Huawei unveiled the first G.fast technical prototype in the industry at the end of 2011, proposing and verifying the G.fast concept. In August 2013, Huawei launched the world’s first pre-standard G.fast product. Huawei has taken the lead in G.fast commercialization and engineering delivery with top tier Telco’s.

To date, Huawei has conducted lab tests on G.fast with France Telecom (FT), Deutsche Telekom (DT), M-Net, Orange Poland, eircom, Vodafone, etc. and have completed G.fast field trials with British Telecom (BT), TeliaSonera in Finland and Swisscom. G.fast is no longer a technology just confined to the lab.


Operators can achieve sustainable growthwith Huawei’s WTTx solution through

exploring and expanding the wireless home broadband market.

- Lu Han, Vice President, Wireless Network Marketing Huawei

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At the Mobile World Congress 2017, ITU, GTI, TDIA, Qualcomm, and Huawei, along with over 25 operators and industry partners, such as Gemtek and MitraStar, attended the 3rd Smart Home @ Wireless Industry Roundtable. Currently, more than 37 manufacturers provide more than 230 models of CPEs to meet various requirements, greatly maturing the WTTx industry chain. Huawei, MitraStar, and Gemtek have developed CPEs that support features such as 4x4 MIMO and Carrier Aggregation etc. The peak rate of the most advanced CPE can reach up to 2 Gbps.

The world’s main stream operators have been deploying WTTx networks. Japanese fibre penetration is already 58.7%, but Softbank have developed more than 1 million WTTx users in less than two years and are currently experiencing new user growth of between 70K – 100K per month. Philippine’s Globe WTTx service realized 2 years ROI. Recently, Vodafone Germany launched WTTx service called GigaCube; Austria T-Mobile’s data quadrupled after deploying WTTx service in 4 months. More and more operators are achieving business case with WTTx service.

The 3rd Smart Home @ Wireless Industry Activity

4 WTTx Gets Unanimous Approval From GTI/ITU at MWC2017

World’s Top Operators Have Been Deploying WTTx 5

“Fibre Along the Power Line” in Emerging Markets (EM) is a global trend. Fixed broadband network collaborative construction over power infrastructures in EM is encouraged by national policies and has low construction costs, and diverse construction models. By 2016, more than 160 carriers/power companies around the world have deployed optical networks over power infrastructure.

Power distributing companies have the infrastructure and resources to directly connect to households, such as power ducks and poles. By reusing these resources we can reduce broadband entry costs. FTTH household broadband in EM market is still not universally available, and by utilizing the fibre facilities provided by power companies it is possible for them to extent fibre to enterprises and base stations, thus accomplishing power distribution and automation at the same time.

HUAWEI’S VIEW

10 | Huawei’s View

1. Reusing Utility Infrastructure Can Reduce Broadband Entry Cost

The main challenge for operators developing home broadband business is the high investment and long ROI. Through accurate planning, identifying high-value customers, operators can achieve efficient investment. There are two proven scenarios for effective fibre deployment and cost saving.

HUAWEI’S VIEW

Huawei’s View | 11

Power companies have considerable fibre facilities between EHV (Extra-High Voltage) substations and LV (Low Voltage) substations, with wide area coverage. In urban areas they also have many power ducks, poles, and high density substations that can be reused to deploy fibre networks. In conclusion, deploying fibre networks along power lines can greatly save civil work costs.

Telecom operators collaborating with power companies to construct fibre access networks, can reduce broadband entry costs and provide a faster time to markets.

HUAWEI’S VIEW

For home broadband,

in the area that is difficult

to deploy fibre, wireless is

the best way to try to acquire

subscribers at first, then

deploy fibre later.

- Eric Xu, Rotating CEO, Huawei

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2. A collaborative FTTx and WTTx network can get the best ROI

WTTx and FTTx synergy can effectively solve the ROI problem. A collaborative FTTx and WTTx network can go to market for fast coverage, hot high-value areas using FTTx guarantee experience, FTTx and WTTx collaborative network can get the best ROI. Global mobile subscriber penetration reached 96.8% by 2015. With mobile subscriber growth slowing and global home broadband penetration only 10.8%, with an average penetration rate of only 0.5% in African countries, home broadband is still a blue ocean market in Africa.

Wireless broadband WTTx (Wireless to the X) with its low cost of network construction and fast implementation, is an important supplement for the traditional home broadband access. More than 150 WTTx networks have been commercially deployed around the globe. WTTx is practical and economical, winning favor with global telecom operators and serving more than 45 million households. WTTx and FTTx collaboration can also shorten time to market. Through the realization of agile service provisioning, bandwidth upgrading and providing content, it can effectively improve the customer experience and further the development of subscribers.


WTTx and FTTx mixed construction can speed up broadband deploymentand shorten ROI in 3 years.

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1. Smart Capex: Precise Planning Accelerate Home Broadband Development Traditional Operator FBB Pain Point

FBB Customer Portrait: Who/Where/How? Without answering these questions, technical driven discussion & analysis for broadband speed-up, FTTX new build, copper-fiber synergy would cause inevitable market and financial risk especially in the light of OTT competition.

With slow service transformation and flat revenues traditional operators are losing profit margins. FTTX is a huge network investment with a long return of investment. Reasonable investment, focusing on TCO/TVO, seeking ROI and precise investment are the main challenges which are summarized as SmartCapex-2C.

Planning Tool Helps Home Broadband Precise InvestmentHuawei Home Broadband Precise Investment Solution (Smart CAPEX) is set up on a planning tool called uNetBuilder which is based on multi-dimension data collection and analysis. This tool matches geographical inventory system (GIS) and provides dynamic network insight to help operators segment their own market target for precise planning and roll-out.

SUCCESS STORIES


SUCCESS STORIESSUCCESS STORIES

Successful Story and Global VisionIn 2016 Huawei cooperated with China X Operator in FTTH new build scenario, based on multi-dimension data collection & analysis, identified home broadband valuable complex/area/user, implemented precise planning, precise build, precise marketing & sales. Since project launch, the success ratio of home broadband customer calls improved by 200%, monthly user growth increased by 150%, high ARPU product package increased by 85%.

SUCCESS STORIES

Success Stories | 15

2. WTTx gives Sri Lanka wings to soar

The population of Sri Lanka is about 20 million, 80% of the population is mainly distributed in rural areas. The population density is low, resulting in a high cost for fixed broadband - the country’s broadband penetration rate is only 2.0%.

Small and medium enterprises (SME) have high demand and the 3G broadband technology cannot meet the demand as the speed was very limited. For the Sri Lankan government and telecommunications companies, the development of family / SME broadband and the elimination of the digital divide was a top priority.

Dialog purchased SkyTV in 2012 to acquire the 75MHz TDD 2.3GHz spectrum. In 2013 it was the first operator to launch TD-LTE-based broadband services WTTx in the country, replacing the traditional WIMAX broadband services. Low cost and fast deployment was the great advantage of WTTx. Through the buy, plug & play and operator subsidy for the lease of CPE’s to rapidly develop users, the Dialog subscriber base have being increased greatly.

In addition, Dialog also deployed new technologies, including 8T8R RRU, indoor and outdoor CPE, and 4 × 4MIMO + CA, through these innovative hardware and software technology for end users to provide a good broadband experience.

In just two years, Dialog broadband users have grown rapidly to 300,000, the mobile broadband market share has also increased by 10%. People fully enjoy the mobile Internet for the convenience of life which gives power to the technical advantages of WTTx, which also complements the existing cable broadband.

Huawei helped Dialog lead the way in the WBB field and to win business success. Embracing the future, with the popularity of Smartphones and high-definition television, mobile broadband and home broadband network traffic is growing at a high rate. In 2016, Dialog/ Huawei launched the 4.5G (TDD +) lab, achieved peak download speeds of 1Gbps. Users will enjoy the ultimate experience when they watch high-definition video and experience VR based on WTTx network. Dialog’s WTTx is a landmark project in Sri Lanka’s broadband construction that has become a milestone for the Sri Lankan government to achieve its national broadband program.

SUCCESS STORIES


S TA R TOn The Road With Us

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