Annex 3.

1 Engineering Installation and Commissioning Quality Inspection Regulation

1. Principle 1.1 Combination of different inspection methods is adopted: self-inspection and
quality inspection of the Subcontractor as main method and random inspection from the Contractor as secondary method.

1.2 Inspection requirements: engineering quality is inspected upon completion of

the project. However, inspection during installation could be performed.

1.3 Random inspection: uploading Hardware Self-inspection Report into the

EPMS system indicates completion of the hardware installation; while uploading Software Self-inspection Report into the EPMS system indicates completion of the software commissioning. For projects without prompt upload of self-inspection report, Huawei may directly arrange an inspection based on the actually complete engineering service and the related inspection result is also valid.

1.4 Engineering quality comprises of: hardware installation and software commissioning
quality, and customers satisfaction.

1.5 Quality score system: 100% score system is adopted. (a) Hardware installation or software commissioning quality passing score:
90 percent or above;

(b) Customers satisfaction passing score: 80 percent or above.

The score scale for Hardware Installation, Software Commissioning and Customers Satisfaction is 35%, 50% and 15% respectively. The respective score shall be converted into percentage before assessing the final result.

1.6 Failure to achieve passing score for hardware (software) quality and
customer satisfaction items shall be deemed as liquidate damages for quality defective. The Subcontractor shall liable for any loss suffered by the Contractor according to Appendix 3.5.

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2. Inspection Types and Requirement 2.1 Self-inspection: Upon completion of Hardware Installation and Software
Commissioning, the Subcontractor supervisor should conduct self-inspection on the quality. Any defective items found during self-inspection shall be cleared based on Huawei Regulation. Self-Inspection report which includes the synopsis must be uploaded into EPMS system on time. Successfully uploaded self-Inspection report into EPMS system indicates the application of engineering service inspection, which also indicates quality assurance from the Subcontractor.

2.2 Random inspection: Huawei reserves 100% authority to conduct random inspection
in all engineering service performed by the Subcontractor. The inspection result shall be attached during payment application and payment shall be made based on the inspection result. Remark: for BTS quality inspection, the inspection will be based on a single BTS and the lowest score from the inspection result will be used to proceed for payment application.

2.3 Re-inspection: For any defects found during random inspection, the Subcontractor
shall rectify all the defects (within one month unless otherwise specified), then Huawei will arrange a re-inspection. If the re-inspection quality fails, the Subcontractor shall liable for any loss suffered by the Contractor according to Appendix 3.5.

3. Inspection Standard
3.1 Self-inspection: perform according to Huawei latest version of quality standard. 3.2 Random inspection: same as 5.1, customers satisfaction feedback shall be based on the latest version survey form of customers satisfaction. 3.3 Re-Inspection: same as 5.1, customers satisfaction feedback shall be based on the latest version survey form of customers satisfaction. 3.4 When the site condition or customers standard is conflict with Huaweis standard, the Subcontractor can perform the service based on actual situation upon obtaining

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approval from customer and Huawei. However, the difference of the standard shall be mentioned in the self-Inspection report.

3.5 Explanation of point deduction if self-Inspection not performed based on the

standard: Point deduction will be imposed on the Subcontractor if commits the following: failure to upload the self-inspection report into EPMS system within a specified time frame, submission of fake self-inspection report, self-inspection reports score varies off a certain buffer as compared to the actual inspection report made by the Huawei authorized quality inspection personnel. Please refer to each product quality standard for detail explanation.

4. Inspection Scope
4.1 Self-inspection: 100% 4.2 Random Inspection: Huawei will base on the actual situation to decide the random inspection rate. Normally, the random inspection rule will be: Hardware Inspection: mother board or optical line terminal (OLT) or optical core network control center combines 1-2 boards unit, optical network unit (ONU) or Network element, points deducted are accumulated for each fault; Meanwhile for BTS, 30% of the total assigned BTS sites will be randomly inspected (when site amount is less than 1, 1 site shall be inspected), engineering quality points shall be based on the lowest points obtained from the sites. Software Inspection: mother board or optical line terminal (OLT) or optical core network control center, but software item must include overall network and stations. Other not described or specified products shall follow the above mentioned inspection standards. (note: same or similar faults from different modules can only accumulate deduction for a maximum of 3 times only.) 4.3 Re-Inspection: Huawei reserves the right to perform re-inspection on sites which have undergone readjustments or changes.

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5. Qualification for Quality Inspection Personnel

5.1 Self-inspection: Posses Huawei Certified Engineering Supervision Certificate 5.2 Random Inspection: Huawei Authorized quality inspection personnel 5.3 Re-Inspection: same as 7.2.

6. Complaint and Appeal

The Contractor shall inform the Subcontractor about the inspection result on time. The Contractor Engineering Management Manager and quality control personnel shall be liable to get the Subcontractor to sign and comment on failed quality inspection result. The Subcontractor shall feedback to Huawei within two (2) working days if have any dissatisfaction on the inspection result. The Contractor Engineering Management Manager shall decide whether to appeal from Regional Division Engineering Management Department to adjust inspection result. Regional Division Engineering Management Department shall decide whether to adjust the inspection result after carrying out re-inspection and feedback the result to Representative Office Engineering Management Manager, and the Engineering Management Manager shall inform the Subcontractor on the final outcome. (attention: serious incidents shall be arbitrate by the Contractor Cooperation Department and Engineering Management Department). If the Subcontractor fails to provide a feedback on the above mentioned incidents within two (2) working days, the Subcontractor shall be deemed as agreed on the result.

7. Supplementary
To ensure the Subcontractor performs engineering service based on the Contractor standard and to meet the markets demand, the Contractor will be regularly update relevant engineering service management systems and these will be the supplementary of this quality standard.

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