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Business Highlights in 2015

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A ROADS experience drives carriers' digital transformation

End users are demanding digital services that deliver a ROADS (i.e., Real-time, On-demand, All-online, DIY, and Social) experience as the new norm. In 2015, we released the Carrier's ICT Network 2020 Transformation white paper. The paper covers transformation in the areas of network, architecture, operations, and services in order to help our customers begin their digital transformation driven by a ROADS experience. Since the announcement of our SoftCOM network strategy in 2012, we have partnered with dozens of leading global carriers during their future-oriented digital transformation. We have now established 36 joint innovation centers and commercially deployed over 70 NFV and SDN projects around the world.

The MBB 2020 Strategy outlines a new blueprint

We announced our MBB 2020 Strategy, outlining a new mobile broadband blueprint for the next five years to connect the unconnected. By 2020, we expect to support 6.7 billion mobile broadband connections to provide a better service experience, and support a 1 Gbit/s access rate. We will also support 1 billion cellular IoT connections and enable ubiquitous networks to connect everything. Achieving these goals will require innovation in technology and business models, as well as cross-industry collaboration. We will focus on spectrums, air interfaces, network architecture, integrated base stations, and user experience-based operations.

Entering the Gigaband era

4K video and cloud services will boost user demand for ultra-broadband, which is accelerating many countries' economic development. We defined our Gigaband development strategy in terms of bandwidth, coverage, and experience. In terms of bandwidth, we will upgrade broadband networks from 100 Mbit/s to 1,000 Mbit/s by continuously innovating access technologies. For coverage, we will strive to cover over 90% of households with broadband networks by 2020. When it comes to experience, we have adopted the U-vMOS system to quantify video experience indicators and form a unified video experience standard, in order to help carriers change their network construction and operations model into one that is driven by user experience.

The BDII guiding principle fuels innovation

In 2015, we introduced our guiding principle for the enterprise market: building Business-Driven ICT Infrastructure (BDII). We continued to focus on developing ICT infrastructure with open architecture through joint innovation with our partners. This has allowed us to provide industry users with innovative, differentiated, and leading products and solutions.

Smart devices with an inspired experience

In the future, smart devices will become smarter and more diverse. We are developing future-oriented capabilities focused on consumer needs under all scenarios, including the way people live, work, and play. We have made continuous breakthroughs with our mid-range and high-end flagship phones. The Mate 8 was a major hit among consumers, and we sold more than 100 million smartphones in 2015. Our smartphones also became market leaders in multiple countries. Our Mobile Broadband and Home Device Product Line transformed itself by focusing on consumers. Our smart watch integrates technology and fashion. In the IoV and smart home domains, we have provided consumers with easy-to-use products, superior services, and an inspired experience through innovative solutions.

4.5G helps carriers tap into vast new markets

Huawei was the first company in the industry to put forward the concept of 4.5G, with the goal of meeting consumers' increasing experience needs and enabling carriers to make full use of their legacy assets. Specifically, we introduced 5G technology to optimize carriers' existing 4G network infrastructure and bring about higher speeds and a better user experience. Through this, we have helped carriers tap into vast new markets and develop more new services. Huawei is an active player in standards organizations, and has helped make LTE-Advanced Pro, a 4.5G standard, the new marker for LTE standards at 3GPP. Huawei has worked with multiple leading global carriers to deploy pre-commercialized 4.5G networks in Norway, Germany, Australia, Kuwait, Saudi Arabia, the United Arab Emirates, China, Japan, Canada, and Singapore, and has achieved positive results in this regard.

Accelerating 5G development through extensive innovation

5G development has entered a critical phase. Accelerating 5G development requires deeper technological innovation and cross-industry collaboration. We have invested heavily in innovation and emerged as a major contributor to and leader of global 5G development. While making significant breakthroughs in key 5G technologies, we have been an active player in major global 5G organizations such as the EU's 5G Infrastructure Public Private Partnership (5G-PPP). We have also launched joint innovation projects with our partners. One example is our partnership with NTT Docomo, Japan's largest mobile communications carrier, with whom we launched the world's first multi-user 5G testing site in Chengdu, China. The real-world testing environment provided at the site enables us to systematically verify 5G air interface technology and network architecture.

Building a cloud ecosystem

We have launched our cloud ecosystem strategy, under which we focus on IaaS, enable PaaS, aggregate SaaS, and develop a leading cloud operating system, Big Data platform, and PaaS platform based on software platforms and enterprise cloud services to create an open cloud ecosystem. At the end of 2015, the number of Huawei's enterprise cloud partners exceeded 500. Working together, we have provided cloud services to over 2,500 customers in the government & public utility, telecom, energy, and finance sectors across 108 countries and regions, deploying more than 1.4 million virtual machines. We have also built 660 data centers worldwide, including 255 cloud data centers.

Actively supporting developers

In the carrier and enterprise markets, we held our first Huawei Developers Congress (HDC), at which we also announced our open ICT developer ecosystem strategy. We have focused on ICT infrastructure, opened up our innovative and leading ICT capabilities to developers, and built an open environment and enablement platform for the carrier and enterprise markets. We aim to help developers create innovative services, rapidly respond to and meet customers' business needs, and help customers achieve business success. Over the next five years, we will invest US$1 billion to implement a Developer Enablement Plan. Through this plan, we will build a developer enablement platform, and jointly innovate with developers. In the consumer market, by relying on our 130 million consumer cloud service users and 17.5 billion app downloads in the Huawei AppStore (HiApp), we have opened up our software and hardware capabilities in cloud and devices, and provided a series of development, testing, and promotion services for 150,000 mobile app developers. We have also organized various activities such as the Maker Lecture Room, the Maker Carnival, and the Maker Competition to unleash the creativity of young people, and motivate developers to succeed.

Adopting a Product + Service strategy

We launched service strategy which targets a ROADS experience, shifting from a "product driven + service as support" focus to a "product driven + service driven" focus. Through open collaboration, we have established a digital business ecosystem, and continued to improve network performance, service quality, and user experience. Through consulting and system integration services, we have become a strategic partner for carriers' operations transformation and ICT infrastructure restructuring. We are now providing professional services to over 1,500 customer networks in over 170 countries and regions, serving over one-third of the world's population. We have strengthened efforts to invest in and establish competence centers and open labs. With five open labs on NFV, cloud data centers, and other domains, we have consolidated our capabilities in consulting and system integration services through concrete action, and turned carriers' digital business blueprint into deliverable and viable solutions.

Establishing partner alliances

We have officially launched initiatives in cloud and enterprise applications in collaboration with strategic partners such as SAP and Accenture, and are actively exploring joint innovation with Infosys, GE, Microsoft, Hexagon, and other partners in the areas of smart stadiums, core banking solutions, industrial Internet, cloud services, and Smart Cities.

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