Ultra-Broadband Forum 2015 8-9 September 2015 | Madrid, Spain

Beyond connectivity

towards

Video Life

Video Life brings new User Experience

User needs: • Immersive experience

• Anytime, anywhere video

• Sharing & networking

• Connecting vertical services

Internet-social life Voice life Video life

~2004 2004~2020 2020~

Voice

Telephone

IVR

Data

Internet surfing

OTT application

E-Commerce & Social

Video will double Telco market size to ~2 Trillion, needs major consideration

~800 Billion USD ~1.2 Trillion USD

Double market size

of data era at ~$2 Trillion USD

Cloud based,

Zeta Grade Storage

4K/8K immersive video

User experience

Vertical Solutions

Source: Ovum, Huawei analysis Video

Video is a basic service to drive

business growth

Players in Video Life ecosystem must focus on User needs

User needs in Video Life

Content owner/aggregator

• Manage change from PGC to P-UGC

• Satisfy fragmented user content

demand & viewing behaviour

Immersive experience

Service provider

• Satisfy Video @ ROADs experience

• Satisfy customer needs for vertical

• services

• Unified experience across multi-screens

Anytime, Anywhere Video

Sharing & Networking

Network provider

• Faster access

• Zero waiting

• Zero delay

• High Video quality

Connecting vertical

services

Video ecosystem

ROADs experience: Real-time, On-demand, All online,,DIY, and Social

Telco must be a Video service capability provider to deliver best experience of

Video Life

And Huawei is an end2end solution partner

PGC maker UGC maker Content

aggregator

Vertical

Service

Service

provider

Video service across screens

TV Pad Phone

Broadband CDN Platform Content/user

analysis

Key Elements for Video service capability provider

1.Telcos are acquiring content with different approaches

Collaborate with 3rd

party CPs

Buy Content Acquire SP with

Content rights In-house Production

Collaboration

Buy and In-house Production

Partners Operators

2000+

Partners

1000+

Games

10000+ Hr

Video contents

500+

Other Apps

• Global Service

• Access to operators

• Promotion in Telcos

• Billing & Payment

• Aggregate global content

• Service Go-to-market

• Assets Monetization

Aggregation Operation Monetization

Digital

inCloud Aggregation Distribution Operation Monetization

Huawei Digital in Cloud bridges Video ecosystem and Telco operators

2. Operator should build a Unified platform to address content, coverage &

connectivity requirements for Video life

Internet Managed

Network Cable Network

Tablet Connect TV PC Mobile OTT STB IPTV STB Hybrid STB

Broadcast & VOD Content aggregation Social TV Internet Content & Application

Wireless Network

Connect+

Coverage+

Content+

Unified Video platform

…supported by Big Data Analytics for better user experience and precise

marketing Traditional operator decision

Viewing Audience

Measurement

(Nielsen)

Business decision

Netflix decision

Viewer Audience and

Content Ratings

(4M ratings / day)

Business decision

Viewing Analytics

(30M plays/day)

User Preference

(3M searches / day)

Recommendation

Analysis

VS

• Understand 4W1H

• Evaluate user experience

• Know customer

• Find Relevance

• Predict customer behavior and

Target customer

Comprehensive data

collection

Able to mine user

insight

Data mining across

all core processes

• End2end across interaction

• Manage ecosystem

4W1H:who are watching, what are they watching, where are they from, why they watch, and How

they watch (different screens, different network)

Huawei Video everywhere solution enable best User experience

Huawei Video Everywhere solution

Video Everywhere Video Vertical App.

Everywhere

Video Communication

Everywhere

Internet Managed

Network

Cable/Satellit

e/Terrestrial

network

Best user experience:

Viewing

quality

experience

Best user

experience

User

interaction

experience

Content

discovery

experience

Less than 2 times

jitter/mosaic within

2 hours watching

Zapping time<1s

Loading time<1s

End2end 4K ready

Recommendation

engine

Single cloud platform

Huawei one-stop video care to improve operation efficiency

• User behavior analysis

• Content Search & Recommendation

• Metadata Information enhancement

• Choice of Video source ( price and quality )

• Pay as u go bandwidth

STB Center IPTV system DSLAM/OLT ER

PoP

PCF

External probes

STB built-in probes

Playback monitoring probes

2hours

Locate problems

7*24 visibly managing

Business improvement

Maintenance improvement

One-stop video care

Video

@big data User

behavior

subscriber user

CP/SP content

IP Core Metro

3.Telco shall establish video experience-oriented network to maximize pipe value

time

Bandwidth requirement

2M

4M 8M

30M

1

2 3

4 Telco Video SP/CP

Building video experience-oriented network to maximize pipe value

time

ARPU (RMB)

60

80 120

180

Consumer

time

Video quality

480P

720P 1080P

4K

fine tune network for best video experience

CR

LTE

OLT ER

Layer 2 CDN

ONT

Layer 3 CDN

DC/ center CDN

IP Video

OTT

Video-centric

network

architecture

based vMOS

Experience

improvement

technology

solution

Best video

viewing

quality

experience

Convergent

CDN

vMOS: Video Mean Opinion Score

Case study: Sichuan telecom

Making Video a Basic service to beat competition

71

185

413

800

12年12月 13年12月 14年12月 15年12月

＋161%

＋123%

Unit: 10K subs

Video subscriber reach 6M by 2015Q2

2012.12 2013.12 2014.12 2015.12

600

40

4K sub

96

301

536

900

12年12月 13年12月 14年12月 15年12月

＋214%

＋78%

2012.12 2013.12 2014.12 2015.12

Unit: 10K subs 700

Broadband subscriber reach 7M

by 2015Q2

14%16%

19%22%

12%15%

18%

30%

2012年1月 2013年1月 2014年1月 2015年1月

到达份额 新增份额

2012.12 2013.12 2014.12 2015.12

Mobile market share increasing

Market

share

New added

market share

ADSL

2.5%

FTTH+ITV

0.2%

FTTH

0.8%

Monthly user churn

rate

Reduce churn ratio with video package

Service differentiation 012 strategy Internet-based thinking

Success factors of China Telecom Sichuan

Driving

Business growth

Network

First

Content

Partner-

ship

Service

Offering

Summary

• We are entering into a new Video life world enabled by technology, terminals,

internet, & changing customer behavior

• Video market is sizable, and Telco can play a key role in the Video life ecosystem

• Key success factor for Video life services is delivering best user experience in a

Customer fragmented world

Ultra-Broadband Forum 2015

Thank you