Security Level:

Innovation driven

business economics

Aug 2019

Dr. David Soldani

Chief Technology and Cyber Security Officer, Huawei (Australia)

CTO Office Huawei (Southern Pacific Region)

Adjunct Professor, UNSW, Australia

2

~25 years active in ICT field

• Future wireless, network, big data value, artificial intelligence, IoT and multimedia technologies

• 500+ successful projects for 2G, 3G, 4G and 5G systems and services

• 1000+ quality deliverables

~9 Years: Huawei Technologies

• 2018-Present: CTO & CSO Huawei (Australia). CTO Office – Huawei (Southern Pacific Region)

• 2009-2016: Head of Central Research Institute and VP Strategic Research and Innovation in Europe

~15 Years: Nokia

• 2016-2018: Head of 5G Technology, e2e, global

• 1997-2009: R&D Director, Finland; and Network Planning Manager, Italy

~ 2 Years: Italian Military Navy

• Officer at Italian Institute of Telecommunications and Electronics, Livorno, Italy

Qualification• 2018-2021: Adjunct Professor at University of New South Wales (UNSW), Faculty of Engineering, Australia

• 2014-18: Industry Professor at University of Technology Sydney, Australia; Visiting Professor at University of Surrey, UK

• 2002-2006: D.Sc. degree in Technology with distinction from Helsinki University of Technology (TKK), Finland

• 1989-1994: Laura Vecchio Ordinamento in Electronic Engineering with magna cum laude from Universitàdegli Studi di Firenze, Italy

Biography

3

What is innovation?

Innovation is about a new idea (product,

solution, or service) or improved method that

has a significant return on investment

(business impact) across the lifecycle of the

related offering(s)

Key success factors and enablers1. Unique technical insights

2. Economy of scale

3. Focus on end user (not customer)

4. Ecosystem creation

5. Appropriate policies and regulations

By Dr. David Soldani

“New ideas that turn into companies that change the

world in ways large and small.”By Prof Enrico Moretti

“Innovation is often thought of as the adoption by

everyone else of the inventions of scientists and

technologists. But today…the sources and sauces

of innovation have never been more varied…In

reality, our innovation economy is not a Roman

aqueduct but a “muddy pond”. Rich but obscure.

Innovation requires of all actors, corporate,

academic, civic and political, the instinct of the

hunter-gatherer, not the farmer; a longer and

broader view of needs and opportunities; an

enterprising portfolio of risk-taking in place of fixed

plans”By Robert Madelin and David Ringrose, European Commission

4

How innovation matters economy

Jobs Multipliers and

(digital) spillover*

Exports

Productivity Tax Revenues

Source: NSW Innovation And Productivity Council 2018

*) Economic impact of ICT

investment much larger than

the direct return for investors

5

Society: ICT drives sustainable development

ICT is a leading indicator of sustainability

(90% correlation)

Good health and

well-being

Industry, innovation

and InfrastructureSustainable cities

and communitiesClimate action

Quality education Gender equality

0

1

2

3

4

5

6

7

8

9

10

0

50

100

150

200

ICT

Sc

ore

SD

G S

co

re

Front runnersAdoptersStarters

ICT helps countries achieve the UN

Sustainable Development Goals (SDGs)

6.7x ROI in ICT vs. other sectors

Digital

Assets

Digital

Spillover*

*) Economic impact of ICT

investment much larger than

the direct return for investors

6

$2270

$500

$1140 $1190

$520

$2370

$1230

$540

$2480

$1270

$560

$2600

$1310

$570

$2710

$1360

$590

$28104.6%4.6%

4.7%4.8%

4.8%4.8%

2018 2019 2020 2021 2022 2023

Mobile Indirect Related Industry GDP Contribution

Source：GSMA Intelligence，2019年2月Source：GSMA Intelligence，Feb,2019

Mobile Industry's Contribution to GDP Will

Increase Year by Year

5G will drive 5.3% GDP growth in 15 years

$ billion，% GDP 2018

5G will be the main enabler of the 4th Industrial Revolution

6%

14%

16%

35%

29%

5.3% 5G Contribution

by 2034

ICT & Trade

Public Services

Agriculture & Mining

Manufacturing & Utilities

Professional&

Financial Services

7

R&D Centers Worldwide: The Best Resources for Innovation

MathematicsCloud, AI, software, architecture,

innovation, devices

Wireless, devices, engineering

Fixed networks,

engineering, quality

Microwave

Mathematics,

aesthetics, imaging

Wireless, systems

Wireless

(short-distance)Software

Optical networks,

devices

Engineering, components,

audio & video, quality

San Diego

Silicon Valley

Seattle

Vancouver

Dallas

Ottawa

New Jersey

Chicago Munich

Paris

Moscow

Stockholm

Milan

Helsinki

London

Bangalore

Singapore

Beijing

SuzhouChengdu

Xi'anNanjing

Hangzhou

YokohamaShanghai

ShenzhenWuhan

Germany Russia Shanghai, China Bangalore, IndiaUKSweden

https://youtu.be/af0tj0Nd3tk

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1) Joint Innovation Centers – Customer driven joint innovation

Telefónica and Huawei Complete World’s First Proof-of-

Concept Test for 5G UCNC Radio Access Networks

TIM and Huawei

inaugurate the Business

Innovation Center in

Catania dedicated to the

Internet of Things

Innovation

Huawei CSIC in Australia

Customer Solution Innovation Center Values

Drive industry

open ecosystem

To realize

ICT Solutions

such as 5G & IoT

Accelerate digital

economy

transformation

Innovative platform

to design and test

technology solutions

9

Industry solution

center

Joint development

centerVerification

centerExperience

centerOpenLab = + + +

Europe

Manufacturing

Safe City

Finance

Middle East

Oil & Gas

Russia

Finance

China

Safe City

Finance

South Pacific

Safe City

Railway

Latin America

Power

2) OpenLabs – Explore Commercial Value, Support Rollout to Industry

Innovation

8+ Operator-Huawei OpenLabs

Vodafone Telefonica Telecom Italia

EtisalatLGU+

China Telecom China Mobile China Unicom

200M USD to Build Global OpenLab in

2017-2019

14+ OpenLab by Huawei

China Shanghai China Xian

China Shenzhen Japan Tokyo

Singapore X2 Germany Düsseldorf

China Suzhou

Mexico

UAE Dubai

Russia Moscow Germany Munich Nigeria Lagos

50+ NB-IoT use cases

ready for commercial

deployment

10

3) X Labs – Huawei real-world labs for new opportunities

Cloud X Digital SkySmart Factory Remote MedicineConnected Cars

…

2 Industry Alliances

5G Vehicular Networks

5G Industrial Internet

Huawei X Labs 5 Main Research Areas

290+ Partners50+ Projects

Innovation

In an agile SIG mode, X Labs cooperate with partners to drive innovation, promote new

applications and industry, and build the new eco-system together

SIG：Special Interest Group

50+ top carrier partners with 9

joint/mobile innovation centers

11

Cloud PC Cloud Gaming Cloud VR/AR

Cloud X is USD$1.3 trillion worth for operators by 2025

$10bn by 2023

B2B: Desktop virtualization

Campus & SME – SaaS instead of Capex

B2C: PC as a Service

0 Maintenance PC, Mobile users

Source: https://www.alliedmarketresearch.com/cloud-based-VDI-market

Source:https://www.globenewswire.com/news-release/2019/02/21/1739121/0/en/Global-

Augmented-and-Virtual-Reality-Market-Will-Reach-USD-814-7-Billion-By-2025-Zion-

Market-Research.html

Source:https://www.statista.com/statistics/932758/cloud-gaming-market-

world/

$450bn by 2023

B2C: Gaming PC rental/game transactions and subscriptions

Affordable Gaming PC + content

$815bn by 2025

B2B: AR/VR as a Service

Maintenance, assemblers, supply chain, product design, location based entertainment

B2C: AR/VR as a Service

Ecommerce, entertainment, social media, education

SKT’s Smart Office Demo

12

What is next?

• 6G will further enhance the 5G capabilities and currently our objectives are, but not limited to, the following:

• Study, review and survey existing technologies, platforms, and standards for identifying the gaps and challenges towards IMT-2030, which are not supported by the existing and near future networks.

• Formulate all aspects of IMT-2030, including vision, requirements, architecture, new enabling technologies, novel use cases, evaluation methodology, and so forth.

• Provide guidelines for standardization roadmap.

https://www.abc.net.au/news/2019-08-22/huawei-reportedly-entering-into-6g-research/11427056

13

AI computing: Chipset (Ascend) and Framework (MindSpore)

https://youtu.be/2DOX1dEsU6I

Huawei: Ascend 910The World’s Most Powerful AI Processor

https://youtu.be/3cvLXCzChhc

Huawei: MindSporeAll-Scenarios, AI Computing Framework

14

Emerging Technologies Drive Digital Growth While Bringing New Challenges to

Cyber Security and Privacy Protection

New technologies New opportunities New challenges

Mobile networks and sensors help us

achieve high-density interconnection.

Cloudification enables resource sharing

and service platforms transform from

closed platforms to open platforms.

AI and big data power the in-depth

mining of information.

The traditional boundaries for protection

become increasingly wider.

Data processing is more complex and the

risk of data leaks is increasing.

The attack surface is larger and

vulnerabilities are increasing.

Cloud SDN/NFV AI

5G IoT

https://www.auscert.org.au/resources/security-bulletins/

15

How to cope with Cyber Security?https://www.auscert.org.au/resources/security-bulletins/

5 Eyes• “There is agreement between the Five Countries of the need to ensure supply

chains are trusted and reliable to protect our networks from unauthorized access or interference

• They recognize the need for a rigorous risk-based evaluation of a range of factors which may include, but not be limited to, control by foreign governments

• They also recognize the need for evidence-based risk assessment to support the implementation of agreed-upon principles for setting international standards for securing cyber networks”

Telecommunications Sector Security Reforms

• In force, with 5G ban on Huawei

Security of Critical Infrastructure Bill

• In force, no clear direction

Assistance and Access (Decryption) Bill

• In force, continuing industry concerns

Australia

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Common

Criteria

ICT, 39 items

FIPS 140-2

Encryption

Modules, 20

PCI

Payment Card

Industry, 14

CSA

Cloud Security, 3

ePrivacy

GDPR based, 1

ISO27001

Information Security

Management

ISO9001

Quality Management

System

ISO28000

Supply Chain Security

Management

ISCCC

Qualification of Information

Security

• 17 chairmen or vice-chairmen

• 3GPP SA3 in 2018: No.1 contributor, 251 proposals

accepted, 5G security architecture proposal accepted

Certifications of Security

management system

Actively improve security

standard240+Security Certificates

of Product

We Call for a Standards and Certification Lead Approach to Security

https://www.gsma.com/security/network-equipment-security-assurance-scheme/

17

Huawei Cyber Security Transparency Center is to Serve as an Open,

Transparent and Collaborative Exchange Platform with Key Stakeholders

Banbury, UK

Brussels, Belgium

Bonn, Germany

Dubai, UAE

Shenzhen,China

Toronto, Canada

Global Hub

Regional Hub HCSTC Brussels：Communication, Innovation and Verification

https://youtu.be/yMBu5bvfTPM

18

Conclusions

[Ref: “How Google works.”]

• Appropriate policies and regulations need to be created and put in place

without constraining innovation

• There will be always needs for space in the regulatory environment that allows

new players to enter markets with disruptive solutions and new offerings

[Ref: “UK Intelligence and Security Committee statement of 5G Suppliers.”]

Way forward

1. Competition for attracting investments, especially on AI, 5G, IIoT, FRMCS, 6G

and Cyber Security, and increase network resilience

2. Open Security Lab (Center of Excellence) for joint innovation, technical

verification, and together address risks and challenges of all stakeholders

http://isc.independent.gov.uk/news-archive/19july2019

Copyright©2018 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without

limitation, statements regarding the future financial and operating results, future product

portfolio, new technology, etc. There are a number of factors that could cause actual

results and developments to differ materially from those expressed or implied in the

predictive statements. Therefore, such information is provided for reference purpose

only and constitutes neither an offer nor an acceptance. Huawei may change the

information at any time without notice.

Thank You.

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References

1. Let’s make Australia safer and more innovative together:

https://huaweihub.com.au/huawei-australia-ctso-australia-set-for-cyber-

security-woes/

2. Australia needs to find a way to align with our region:

https://huaweihub.com.au/finding-a-way-to-align-with-our-region/

3. Negative effects on Australians due to lack of competition:

https://huaweihub.com.au/5g-fixed-wireless-can-help-solve-the-nbn-

shortfall/