Southern Africa Region

Market Intelligence Newsletter

11 July 2017

Hi There,

It is no secret that mobile data traffic has been growing exponentially -- and there is really no end in sight. Smartphone penetration
rates continue to increase, leading to more creation and consumption of bandwidth-chewing video services. 5G is on most telecom
operators' radar, which will only accelerate this trend. 5G, expected to be a reality in the next few years, will provide significantly
increased capacity that mobile subscribers will be all too happy to consume. This will require telecom operators to deploy more fibre
to increase the capacity of their access and backhaul networks. Additionally, the still-nascent Internet of Things (IoT) market is
expected to get a jolt of energy with 5G. Adding to the billions of handheld devices will be tens of billions of connections from sensors,
smart grids, smart homes, connected cars, and other as-yet-undefined sources -- most generating small amounts of data, but
requiring extremely low latencies. The most recent Cisco VNI forecast shows that the number of connected devices will grow from 7.9
billion in 2015 to 11.6 billion in 2020 -- and much of that increase will come from IoT. All that traffic needs to be processed somewhere,
leading to increases in data centre capacity. Cisco's Global Cloud Index estimates that global data centre traffic was 5 zettabytes in
2016, and will grow to 10.4 zettabytes in 2019. This will force data centre operators to not only dramatically scale their data centre
networking infrastructure, but do so quickly and cost-effectively. Automating operations is the only way this can happen.
http://www.exfo.com/

Huawei News
At the ninth Huawei User Group Meeting, David Wang, Huawei's President of Products & Solutions, said: "To shift from an
'investment-driven' to a 'value-driven' business model, operators need to adopt a value-oriented approach when planning and
constructing networks. This can help them reshape their businesses and create more value." Digital transformation is driving
sweeping changes across the ICT industry. Services and business models are rapidly evolving, injecting new vitality into the entire
industry. Operator businesses are increasingly integrating with other industries, and boundaries between businesses are
becoming a thing of the past. Along with enormous opportunities, digital transformation also presents major uncertainties and
challenges. Network resources are underutilized and it is increasingly difficult to roll out new service models. "The traditional
technology-oriented network construction model cannot continue to support the growing needs of operators, noted Wang. The
key for operators to succeed is to adopt a value-oriented network construction model to reshape their businesses."

Huawei releases boundless computing strategy Huawei Positioned as a "Challenger" in Gartner

and solutions Magic Quadrant for Data Center Networking
Last week Huawei released Last week Huawei
the Boundless Computing announced that Gartner, Inc.
server strategy and series now positions Huawei as a
solutions in Beijing. The Challenger in the Magic
strategy focuses on Quadrant for Data Center
industries' requirements for Networking. Gartner
digital transformation, and evaluates vendors using
outlines Huawei's next 5-year standard criteria in two
innovation roadmap for categories: Ability to execute
computing. The release and completeness of vision.
underscores Huawei's Huawei was moved from the
commitment to creating greater, tangible value for its customers. Magic Quadrant of Niche Player to Challenger due to its continuously
Huawei delivered a systematic interpretation of the server strategy and rapid growth in market share as well as offering innovative
business positioning. Also at the release ceremony, Huawei launched combinations of hardware and software solutions. At present, Huawei
the V5 series solutions. The solutions include the all-flash SAP HANA CloudFabric Solution has become the first choice for many enterprises
appliance solution, big data application acceleration solution, edge around the globe to build cloud data center networks. "Huawei views
computing for smart video analytics solution, and G series this move of its Data Center Networking solutions into the upward
heterogeneous computing platform. At the release ceremony, Huawei, position of Challengers Quadrant by Gartner as confirmation of our
along with customers and partners including Industrial and market strategies to build open, simple, and elastic cloud data center
Commercial Bank of China (ICBC), Tencent, SAP, and Microsoft, networks and fulfillment of the strategies" said Kevin Hu President of
discussed the challenges to current computing development and the Huawei Switch & Enterprise Gateway product line.
countermeasures.

Huawei Wins Telecom Equipment Vendor of the Huaweis 9th Annual User Group Meeting Shows
Year at Frost & Sullivan Asia Pacific ICT Awards Company Focus on Listening, Collaborating and
2017 Improving
Huawei has been honored as At the 9th Huawei User Group
the Telecom Equipment Meeting in Xi'an, Ryan Ding,
Vendor of the Year for the Huawei's Executive Director
fourth successive year at the of the Board and President of
Frost & Sullivan Asia Pacific Carrier Business Group,
ICT Awards 2017. The award delivered a keynote speech on
was presented at a ceremony "Listening, Collaborating and
in Singapore recently. Improving". He expressed
Huaweis strategic mission as Huawei's determination to
a telecom equipment vendor build customer service and
is building a Better Connected measures for continuous
World, enriching peoples lives through communications and improving customer-centric improvement, focusing on issues such as customer
work efficiency. As information and communications technology (ICT) is problems, operational efficiency, and helping customers increase
converging at an increasingly rapid pace, new technologies, especially revenues. After nearly 30 years of development, Huawei is operating in
Cloud Computing and Big Data, have emerged as key enablers for ICT more than 170 countries and regions. According to Ding, more
innovation and development. In response to these revolutionary innovative and agile service models are needed to meet the challenges
changes, Huawei continues to innovate around customer needs, of increasing service volumes and more diversified customer
focusing on development of leading technology that meets those demands. He also shared his view on optimizing capital expenditure
needs. (CAPEX) and operating expense (OPEX) and introduced Huawei's
Global Technical Support Center (GTSC) and how it uses digital
technologies to provide quality services.

Industry Focus
DOC minister talks digital migration with Ghana launches its first satellite into space
broadcasters

Department of Ghana has successfully

Communications (DOC) launched its first satellite into
minister Ayanda Dlodlo has space, reports BBC.
met with South African GhanaSat-1, which was
broadcasters to discuss the developed by students at All
next step in the digital Nations University in
migration process. Dlodlo Koforidua, was sent into orbit
yesterday met with the SABC, from the International Space
Etv, StarSat and other Centre. Weighing 1,000
stakeholders participating in grammes, the Cubesat
the digital terrestrial television satellite will be used to
programme. This followed the Constitutional Court (ConCourt) ruling monitor the country's coastline as well as helping Ghana enjoy the full
last month, which found in favour of former communications minister benefits of satellite technology. The satellite, which was built by
Faith Muthambi, in a judgment that favoured non-encryption for students at the college, is equipped with low and high-resolution
government-subsidised set-top boxes (STBs). The Government cameras. The first signal was received shortly after launch. The
Communication and Information System (GCIS) now says the June Cubesat satellite cost USD 50,000. It received support from the Japan
ruling has paved the way for the new minister to make a decision Aerospace Exploration Agency (JAXA). The satellite will also be used to
regarding the encryption or non-encryption of STBs, which are required build capacity in space science and technology. Project coordinator Dr
to convert digital broadcasting signals on analogue TV sets. "The Richard Damoah said it marked a new beginning for the country, noting
meeting is a step closer to ensuring the Broadcasting Digital Migration that the launch has opened the door for Ghanaians to do a lot of
process is implemented without delay. activities from space.

Amazon still looking at opening South African Internet Solutions deploys first PoP in
data centre Madagascar

Amazon is still investigating P a n - A f r i c a n

the South African market with telecommunications service
a view to open a local data provider Internet Solutions
centre, according to Amazon has deployed the company's
CTO Werner Vogels. first Point of Presence (PoP) in
BusinessLive reported that Madagascar. In its
Amazon Web Services has a announcement, the company
large customer base in the added that it has also
country, including young commissioned a second PoP
businesses and larger in Zambia, which equates to
companies, and that Vogels is 68 PoPs in 16 African markets.
aware of the importance of the region. Vogels said they have high The company has operating offices in South Africa, Mozambique,
expectations for growth in South Africa and that a presence in the Uganda, Ghana, Kenya and Nigeria, as well as international PoPs. "We
country would benefit other regions in Africa, too. Michael Needham can boast a significant managed services network on the continent
Head of Solutions Architecture for CIS, Russia, Middle East, and Africa because of our investment in both infrastructure assets and
at Amazon Web Services told MyBroadband in 2016 that African partnerships with trusted, in-country service providers," says Murray
companies are set to increase their use of Amazon Web Services going Steyn, Executive Head: Wholesale at Internet Solutions. "This, along
forward. Local companies which use AWS include Pick n Pay in with our in-depth market intelligence, means we are able to deliver
combination with another service provider for its online shopping scalable, tailored ICT services across Africa and now also in
platform. Madagascar." Internet Solutions' PoPs are co-located with Airtel
Madagascar and NetOne in Zambia.

HUAWEI TECHNOLOGIES CO., LTD. ALL RIGHTS RESERVED

If you have any comments or suggestions relating to this newsletter, please feel free to contact me.
Until next time, Cheers.
Ian Ellis (ian.ellis@huawei.com)