News Brief
ZTE Awarded the “Best Practice Award—2010 Competitive Product for Packet Transport Network Industry ” Accolade By Frost & Sullivan
9 September 2010, Shenzhen — conducted a comprehensive evaluation to introduce an entire range of PTN ZTE today announced it has won the of the PTN market, organizing an products, covering the entire network prestigious “Best Practice Award— expert panel to evaluate the overall from the core layer to the access layer. 2010 Competitive Product for Packet strengths, market share, technical All five of ZTE’s PTN products have Transport Network Industry”. The strengths and product advantages powerful networking capability and accolade was awarded to ZTE by Frost of a number of mainstream vendors application support capability, enabling & Sullivan, a world leader in growth in the industry including ZTE. support for the most accurate and consulting company. Winning this With its significant advantages in refined time synchronization solutions award is a direct recognition of ZTE’s PTN technologies and commercial in the industry. The large capacity and contribution to the PTN field. This is deployment, ZTE won the honor. low power consumption design can the second time ZTE has won one of Since starting its PTN standard fully meet the green evolution needs of the celebrated “Best Practice Awards” research and product development networks as well as their core business following receipt of the “Best Practice in 2004, ZTE has submitted 118 needs. Award—2009 IPTV Equipment Vendor proposals, 164 invention patents and As the industry’s first-class PTN of the Year” in 2009. 13 basic patents related to international solutions provider, ZTE has entered into Based on its research in 2009, Frost standards to organizations including in-depth partnerships with operators & Sullivan believed that with the IEEE, ITU-T, and IETF. ZTE is a key across the globe, with solutions widely acceleration of the commercialization player driving the development of adopted in many countries and regions of PTN, this market is beginning to PTN technologies and industry supply including Finland, The Republic of take shape. Based on its unique market chains. Montenegro, Brazil, Malaysia, and engineering method, Frost & Sullivan ZTE was the first in the industry Vietnam. In the Phase-1 PTN project for China Mobile, ZTE has successfully delivered commercial PTN networks in 27 provincial regions including Beijing, Shanghai, and Guangdong. According to the “Market Share: 1Q10 optical networks, global and regional” report by leading market research firm Ovum, ZTE continued to maintain fast growth in the optical networking market and was already one of the global top 3 players in terms of market share. PTN has become a key driver for ZTE in the deployment of next generation optical networking technologies, in order to excel in the marketplace. www.zte.com.cn
A Monthly Publication
Vol. 12 No. 10 Issue 129 October/2010
P3 Press Clipping Mobile Data Demand Will Expand Market for TDD, Says ZTE Head An exclusive interview with Shi Lirong, CEO of ZTE, by leading industry magazine Global Telecoms Business
Focus
Building Profitable Bearer A Reconfigurable Gateway for the P7 Networks P12 Coexistence of PTN and MSTP ZTE seeks to work with operators to Considering the long-term coexistence build profitable and evolvable bearer of 2G and 3G, the best way to networks through sound solutions, capitalize on existing network quality equipment, and first-class infrastructure is to carry 2G voice service services over SDH, and 3G and EOS services over PTN
Cluster Routers: The Best Choice Promonte Leads with All-IP P10 for Future-Oriented Backbone P14 Transformation Networks The successful implementation of The reliability, scalability, and energy the Promonte project helped the efficiency of an IP backbone network company improve the quality of its gives operators a distinct market mobile bearer network advantage Interview Editorial Board Editor-in-Chief: Jiang Hua Rooted in China: Stepping Forward to World-Class 16 Deputy Editor-in-Chief: Huang Xinming Excellence Editorial Director: Zhao Lili An interview with Zeng Xuezhong, Senior Vice Executive Editor: Yue Lihua President of ZTE Corporation Editor: Paul Sleswick Circulation Manager: Wang Pingping Third Eye
Future-Oriented IP Services Boost Operators’ 20 Subscription / Customer Services Ability for Service Delivery Subscription to ZTE TECHNOLOGIES ZTE is expected to succeed in gaining access to the is free of charge high-end optical network equipment market with the Tel: +86-551-5533356 introduction of ZXONE 8000 Fax: +86-551-5850139 Email: [email protected] Website: www.zte.com.cn P21
P24 Editorial Office Address: NO. 55, Hi-tech Road South, ShenZhen, P.R.China Postcode: 518057 Tel: +86-755-26775211 Fax: +86-755-26775217 Email: [email protected] Research Note
LTE-A Leads Future Wireless Communications 21 ZTE Profile By introducing key techniques including Carrier ZTE is a leading global provider of Aggregation (CA), enhanced MIMO, relay, and Coordinated Multi-Point Tx/Rx (CoMP), LTE-A can telecommunications equipment and network meet or even surpass all IMT-A requirements solutions. It has the widest and most complete product range in the world—covering virtually every sector of the wireline, wireless, service Business Model Analysis of Managed Services 24 and terminals markets. The company delivers Managed services are driven by the transformation of innovative, custom-made products and telecom operations in terms of financial targets, business services to over 500 operators in more than performance, deployment capability, management 140 countries, helping them achieve continued optimization, and risk transfer revenue growth and shape the future of the world’s communications.
News Brief 27
ZTE TECHNOLOGIES October 2010 Press Clipping
Mobile Data Demand Will Expand Market for TDD, Says ZTE Head
September 29, 2010 Source: Leading industry magazine Global Telecoms Business (September/October 2010 issue)
he new president and CEO of ZTE is enthusiastic about the future Tof China’s home-grown version of 3G mobile technology—and its LTE upgrade—as a way of tackling the huge strain that data services are putting on mobile networks. Shi Lirong, the 46-year-old telecommunications engineer who took over at the top of ZTE at the end of March 2010, believes that many of the 500 operators that already have time-division duplex spectrum will consider migrating to the TD version of LTE. “The technology can bring new value to operators,” says Shi, in an exclusive interview with Global Telecoms Business. TDD spectrum is valuable “and the TDD spectrum is cheaper”, he adds. Some operators are already deploying the more usual frequency-division duplex version of 3G and then LTE, but, says Shi, “because of spectrum limitations they are considering TDD spectrum for their data services.” China Mobile pioneered TD SCDMA, a TDD version of 3G technology that was invented in China. When Chinese telecoms operators were reorganized in 2008, each of the three companies was allocated a different 3G technology: China Unicom got Shi Lirong: innovative software-defined radio is conventional WCDMA, as used in most of the world. a unified platform for 2G, 3G and 4G LTE The Chinese government told China
October 2010 ZTE TECHNOLOGIES Press Clipping
Telecom to use the Qualcomm version the company: market share. “Currently hardware and put the difference in the of 3G, and China Mobile—the biggest more and more operators know that software. operator in the world—was allocated ZTE has good technology and good TD SCDMA. total cost of ownership, and we can Software-Defined Radio There was some cost to China deliver,” he says. The company can “It’s a unified platform for 2G, 3G Mobile, as the then CEO, Wang execute on the projects on which and 4G LTE,” he says. “We are the first Jianzhou, told Global Telecoms it works, he says. “We have very company to develop and deliver this Business in 2009: TD SCDMA did not competitive products now, so we hope software-defined radio equipment.” have the volume advantages that would we can grow more market share.” CSL, Telstra’s mobile business in drive cost down. This is the result of high spending Hong Kong—conveniently just a few But the sense of the industry on research and development, he says: kilometres from ZTE’s headquarters appears to be shifting in favour of consistently about 10% of turnover. in Shenzhen in southern China—is TDD, as customers around the world Revenue was $4.5 billion in the six an enthusiastic user of the vendor’s start to use mobile broadband at levels months ending June 30 2010, according SDR, but there are others, says Shi, few ever expected. to the company’s results published in listing South African operator Cell-C, And the attraction of TDD is that it August, and was increasing by more Portugal’s Sonaecom and KPN of the is efficient for data, which tends to flow than 10% a year. Profit in the first half Netherlands. unequally upstream and downstream. was $129 million, a rise of 12% year SDR is even more flexible than just The system can dynamically adjust the on year. providing the ability to move through timeslots for each direction, freeing That means that annual spending on the GSM family of technologies. “We space for other users. R&D is getting close to $1 billion. “We can even combine CDMA, WiMAX “There are lots of new have a huge R&D investment,” says and TD-SCDMA in the same platform,” opportunities” with TDD, says Shi, Shi. “We can develop lots of innovative smiles Shi. So, if a WiMAX operator who was in charge of ZTE’s sales and products.” wanted to do so, it could consider a business development operations for About 10% of that R&D spend is on move to the TDD version of 3G—an 11 years until his promotion earlier this forward-looking research, he notes—on intriguing possibility. year. He started out as an engineer, with projects such as next generation base- The company makes WiMAX a master’s degree in telecommunication stations and network. systems, which are also TDD: it has, and electronic system engineering ZTE has a patent portfolio of over for example, supplied Telefónica with as well as a master’s degree in 30,000 patents in China and 4,100 equipment for one of the first WiMAX engineering. patents overseas, covering 2G, 3G networks in Spain. and 4G, including what it says are “More and more people are Focused on Innovation “essential patents” in LTE and UMTS. considering the TDD spectrum, as FDD Is it engineering that excites him, or In 2009, ZTE says it ranked number can be very limited and expensive,” the prospects of sales for ZTE? Both, one in patent applications in China, and says Shi. “With more data focus and it seems. “We are more innovation it tripled the number of international broadband focus, operators need focused: we can bring propositions to patent applications. more spectrum resources, so people our partner operators,” he says, neatly One result of this investment has are considering TDD for wireless straddling both. been the company’s software-defined broadband.” “Our innovation is oriented to radio equipment, says Shi. When the reorganization of China’s market needs and oriented to the needs This is a system that allows an telecoms operators was completed in of our customers,” he says. “We believe operator to hedge its bets on when 2008, it had taken a long time to sort in the future if ZTE wants to lead the demand for 3G will start to overtake out, leaving all three some way to telecoms industry. This strategy is the the need for 2G base stations—and catch up with the rest of the world in number one priority.” when, in turn, it will need to ramp up 3G operations. But that meant they all But he swiftly moves on to his 4G services. The answer, according to invested heavily and quickly in 3G— second priority for his leadership of ZTE, is to install a single standard of and ZTE was a huge beneficiary.
ZTE TECHNOLOGIES October 2010 Volume Advantage This success in the first 3G investment phase “gave us a volume advantage and therefore we became more cost effective and more experienced in 3G”, he adds. “So we will get more chances in the second phase and the third phase.” That’s given ZTE a good market share in its homeland, and no doubt helped with volume efficiencies worldwide. “In Asia Pacific our market share is high,” says Shi. And he has his eye on other parts of the world: “I hope in the near future in big countries— Brazil, Russia, South Africa, Nigeria— we will get higher market share.” In the developed world, ZTE has had a number of successes, but it’s probably fair to say that the company has not achieved the same sort of market share as it has in the Asia Pacific region and other emerging markets. “In Europe and North America there is big potential,” Shi accepts. Politics possibly plays a part. Both “We got the number one market ZTE and its Chinese rival Huawei— position in Chinese 3G, mainly because and they are fierce rivals—have had The smartphone ZTE is more competitive in technology political opposition in the US, but Shi and total cost of ownership,” says Shi. is quick to respond that ZTE is a public is still priced too highly. It is competing in China with all company, with shares quoted on two People are asking what four of its international rivals: Huawei stock exchanges. is Chinese; Alcatel-Lucent has its own “We are a listed company, not will be next after Apple. Chinese subsidiary, Shanghai Bell; only in Shenzhen but also in the Hong and both Ericsson and Nokia Siemens Kong region,” he says. “Everything is I think ZTE can provide Networks have a significant presence in very strict, as we follow Hong Kong this. China. regulations. It’s more transparent and “There are five vendors and all more regulated.” five vendors compete,” says Shi. But Around 21% of ZTE’s shares are ZTE claims to have won the five-way foreign owned, he adds, and in 2010 battle in terms of market share. “The the company appointed an American as three operators all assessed the network an independent board member. This is quality and ZTE’s performance is the Timothy Seifert, a former Freshfields best with the three operators,” he says. lawyer who is general counsel of Best on what basis? “For example, Alibaba, a Chinese online trading China Unicom calculates factors such company. “We are quite confident as power consumption and so on.” that ZTE is a very different Chinese
October 2010 ZTE TECHNOLOGIES Press Clipping
company,” says Shi. ZTE doesn’t completely avoid services customers. “We believe we “China has also changed, like ZTE small companies, though. In June 2010 can see a very high potential in this has changed from a small company to the company signed a deal with a small area, with more and more networks,” a big company. Our thinking has also Canadian start-up operator, Public adds Shi. changed—that’s very important,” he Mobile, to design, build and operate ZTE’s contracts are “mainly adds. an end-to-end CDMA network which greenfield, where we have built the So in the US, ZTE has started includes wireless, core network, service network, but some we take over, along slowly. “The ZTE corporate motto platforms and IP architecture. ZTE will with the existing operational staff”, he is ‘step by step’,” he notes—though also deploy over 1,000 base stations for notes. a more formal corporate slogan is the network. “bringing you closer”. That deal, said at the time to be Management Efficiency It has started its approach in the US worth $350 million, was funded by Meanwhile, ZTE is as focused as with handsets and terminals. It was two the Export-Import Bank of China. most other vendors on trimming costs. years’ hard work, he notes, but “that “When you provide the equipment The company wants “to optimize was the right strategy”, which appears and the technical solution, sometimes our internal management”, he says: to have paid off. “Now the main we provide a package of financial “Cost saving is also very important.” operators are choosing ZTE for the facilities,” says Shi. “This can bring He means internal cost saving, by devices,” he says. “We have delivered value for operators. We have lots of optimizing its structure. ZTE has to handsets to Verizon.” different financial partners—Chinese “reorganize our structure to be more In the longer term ZTE’s ambition is and European banks.” flat and more effective”. “to provide an affordable smartphone”, A financial package is not standard, That means he will be setting says Shi. “The smartphone is still but “sometimes we can provide a “clear goals” for different departments priced too highly. People are asking package if the operator needs it”, he in the company, and assessing their what will be next after Apple. I think notes. Customers “also have their performance. He wants to save money ZTE can provide this.” own channels” for finance and “they on travel by making more use of IT and But meanwhile the next step in the evaluate the financial costs”, but “if we telecoms. “Globally we have 400-500 step by step approach to the US market can provide this we like to do so. It’s videoconference terminals. We don’t is “to approach the networks”, he an option for our operators.” He adds: need to travel.” continues. “We have some successful “We are a listed company and we have Where next? The “bringing middle and small operators. Next very strict regulations on risk control.” you closer” slogan Shi mentioned step, we hope we can get into tier one The design, build and operate part earlier is intended to reflect ZTE’s operators.” of that Canadian contract is intriguing “corporate high concern for humanity, too. Managed services are “a very the company’s global vision and Tier One Customers important strategy for ZTE”, says insight, the value of dedication to the Tier one is the clear goal. “Our Shi. “We don’t announce very much development of the communications strategy is focused on the big countries about it, but we have already provided industry”. Top issues include “corporate and the big operators, multinational services in many countries.” social responsibility, green technology, operators like MTN, Bharti, Vodafone, The company has “2,000 people carbon reduction, solar powered France Telecom,” he says. “We are providing managed services in different handsets and green technology for our more focused on those operators.” countries over the last three or four customers”, says Shi. The company is “very careful” years”, he adds. “We employ some “We need to bring ZTE propositions when dealing with smaller operators— very professional people.” to the operators, to the people, to the and, he added, “in India we are Shi lists MTS in India—the joint community. That’s very important. very careful because there will be venture between Shyam of India and With R&D, technology, products, consolidation”. There are many Sistema of Russia—as well as another service, we hope we can contribute to operators fighting for market share in Indian company, Idea Cellular, and the community. That’s very important.” India. Cell-C in South Africa as managed
ZTE TECHNOLOGIES October 2010 Focus
Building Profitable Bearer Networks
By Han Lijin and Chen Jianye
s networks converge and mobile Internet, Internet of Things, and Cloud Computing Abecome prominent, bearer networks will need to be capable of high bandwidth, QoS, expansibility, and reliability. In the face of growing competition, network operators must reduce bit cost, realize efficient and reliable transfer of packet services, improve user satisfaction with broadband services, create new services and rapidly deploy them, and construct low-cost TCO bearer networks to recover costs. These are the considerations when constructing a bearer network. Low TCO, high benefits, and sustainable development are particularly important in network construction. With this in mind, ZTE foresees seven development trends for bearer networks.
October 2010 ZTE TECHNOLOGIES Focus
ZTE adopts the latest technical standards to accommodate the seven development trends of bearer networks, and to coincide with the focal points of operators constructing networks.
The company senses the pulse of full direction; in the backbone control layer, rapid development of broadband access service operation, and is dedicated Generalized Multi-Protocol Label technology. to providing end-to-end network Switching (GMPLS) technology with solutions. converged data and optical transmission Packet transport is the development direction (because A broad technical consensus has Development Trends of Bearer network resource use and distribution been reached that telecom services Networks is optimized). Service gateway should be IP based. Traditional fixed Development trends in bearer convergence implies the convergence telephony is evolving to VoIP, and networks include flat structure, of Service Router and Broadband mobile networks are also evolving to convergence, broadband, packet Remote Access Router (SR+BRAS) all-IP. With the trend toward packet transport, optimized operation and in a fixed-line environment, and services, packet transport networks management, evolution towards IPv6, convergence of SR, BRAS and xGW with packet interfaces and packet cores and energy efficiency. (SR+BRAS+xGW) in a full-service are inevitable. The packet interfaces environment. This effectively cuts must support not only traditional Flat structure down network TCO. E1/STM-N interfaces but also FE/ Flat network structure implies GE/10GE/40GE/100G interfaces, and a simplified network hierarchy, Broadband the network core must adopt a packet converged control layer, and unified Market competition, service design to utilize bandwidth efficiently OAM. Construction costs—including expansion, and technological and to better support various packet costs for transfer interfaces between advancement drive the development of characteristics. equipment layers, and investment broadband bearer networks. Operators in machine rooms, transport, and agree that bearer networks must have Optimized operation and power supplies—are lowered, as are high bandwidth. Service expansion has management maintenance costs. A flat network mostly been driven by wireless Internet Optimized operation and intelligent structure also reduces the risk of services and fixed video services; management improves network network failure so that user satisfaction and as a result, bandwidth demands profitability, and helps in situations is guaranteed. for fixed and wireless networks have where profits are falling or growth in grown rapidly. Bearer networks with the user base has slowed. Intelligent Convergence higher bandwidth therefore need management involves using a unified A converged network comprises to be constructed for operators to network management system for unified backbone network technology become much more competitive. rapid service deployment, centralized and converged service gateway. Technological advancement depends performance monitoring, and accurate In the backbone forwarding layer, on the progress of microelectronic fault locating. Optimized operation converged IP and optical transport technology, the improved capacity of aims at offering differentiated services layer technology is the development optical transmission equipment, and the through service segmentation and real-
ZTE TECHNOLOGIES October 2010 Access MAN Backbone Service
PE DHCP/ BSS/ NMS AAA P DNS OSS RNC CDN CDN IGW Telecom Plane BMSG P VIP PTN OAM CTN6000 CR/P ISPA ISPB CTN9000 PE Internet Base station ZXR10 T8000 T1200/M6000 MAN MGCF/IM-MGW SBC ZXR10 5900 HG SW/ONU IMS SW/OLT CSCF ASBR ASBR ZXR10 T8000 SW/OLT IPTV ZXR10 8900 FTTB/C Public Plane OTN OTN/WDM OTN ZXMP M820 ZXMP M920 IDC ZXMP M720 ZXONE 8000 ZXONE 8000 GGSN
Figure 1. ZTE’s end-to-end bearer network solution.
time network resource control so that that environmental awareness must be a to realize convergence. ZXMP M720 quality value-added services can be core value. Domestic and international (OTN equipment) should also be provided. operators have set targets for energy deployed in the MAN layer to save saving and emissions reduction. This fiber resources. In the service control Evolution towards IPv6 protects the environment, cuts costs layer, an advanced converged gateway As the Internet expands and for the operator, and strengthens M6000/T1200 improves reliability demand for IP addresses by new commercial competitiveness. of the network by introducing highly services such as the Internet of Things reliable backup technology. In the grows, the number of available IPv4 A Profitable End-to-End Network MAN backbone layer, a flat broadband addresses is rapidly decreasing. An Solution network is constructed using ZXWM address bottleneck will therefore ZTE adopts the latest technical M920 (40G/100G high-capacity ensue, and the need to introduce standards to accommodate the OTN equipment) and ZXR10 T8000 IPv6 is pressing. The IPv6 industrial seven development trends of bearer (high-end cluster router support chain is nearing perfection after networks, and to coincide with the 16+64 chassis cascade). In terms of several years’ development, and IPv6 focal points of operators constructing network operation and management, network equipment is now coming into networks. ZTE’s end-to-end bearer the NetNumen platform is used for commercial use. The era of widespread network is the solution to building quick end-to-end service deployment, commercial use of IPv6 is fast a profitable network. As shown in and GMPLS technology is used for approaching. Figure 1, CTN9000/6000 is deployed convergence of support networks in the in the access and aggregation layers control plane of the bearer network. Energy efficiency of telecom plane—which adopts IPv6 is also used for smooth evolution Energy conservation, emissions 1588v2/G.8261 high-precision to NGN. reduction, and environmental protection clock synchronization and MPLS- ZTE seeks to work with operators have become strategic goals of most TP technologies to create a packet to build profitable and evolvable bearer countries around the world. With transport network. ZXR10 8900 carrier- networks through sound solutions, such high energy consumption, the class series switches are employed in quality equipment, and first-class communications industry recognizes the aggregation layer of public plane service.
October 2010 ZTE TECHNOLOGIES Focus
Cluster Routers: The Best Choice for Future-Oriented Backbone Networks
By Zhu Haidong
t took only ten years to increase themselves, but also the entire investors will not be able to transform the interface rate of a router from Internet. Considering the vast ocean their existing commercial networks I2.5Gbps to 10Gbps, 40Gbps and of data exchanged over the Internet to suit their business growth, and even 100Gbps. Changes in the Internet in real time, even a small failure can in full accordance with an ideal have proceeded rapidly and have gone result in multi-million dollar losses. network structure plan. Additional well beyond what could have been Therefore, IP backbone networks must nodes will add complexity to a clear imagined. The Internet has developed be self-healing, highly reliable, and and neat network, which in turn will from a simple data carrier to a central capable of automated troubleshooting impact service support and network part of the information infrastructure of and recovery in the event of sudden maintenance. Nodes should guarantee whole societies. And the IP backbone abnormality. Such networks must also reliable continuation of services under network, a pillar of the Internet, is now guarantee availability under normal a non-optimal network structure, and required to bear an increasing amount operation. provide more flexible, intelligent of data traffic. ■ Scalability and growth service control capabilities. Such As the growth of IP services The IP backbone network is a requirements are part of the growth of continues to boom, data within the scalable network. Internet traffic a network. backbone network becomes more doubles every 12 months, with IP ■ Full-service bearer complex. IPTV, VoD, and P2P traffic growing exponentially. With The IP backbone network is also a traffic places greater demands on the rise of mobile broadband access, converged network that bears many the scalability and reliability of the video and interactive services, and kinds of services. Today, almost all network. new network services, the growth of services are based on TCP/IP, and ■ Reliability and self-healing traffic carried over the IP backbone all applications can be provided on Today’s Internet comprises a network is expected to accelerate a uniform network. Bearer networks countless number of operator nodes. rapidly. Backbone networks must are converged at all layers, and the IP The stability of operator backbone therefore have excellent scalability to backbone network is the starting point networks not only influences the counter the skyrocketing amount of on the path to convergence. networks and services run by operators data. If scalability is not addressed, By rapidly responding to market
10 ZTE TECHNOLOGIES October 2010 demands, ZTE has introduced the NOC 2G/3G ZXR10 T8000 carrier-class router which is designed to meet current and Cluster Routers: Backbone future service needs. It supports 16+64 chassis cascade, and is suitable as the IPTV IMS Internet core node, backbone network The Best Choice for Future-Oriented super node, and egress of a large MAN. ZXR10 T8000 is an ideal choice for operators aiming to build a flat NGN EPC network and looking toward the long Backbone Networks Metro term evolution of their uniform bearer network. ISP Peer IDC ■ Multi-level assurance To ensure the backbone network is reliable, ZXR10 T8000 provides technical assurance in three aspects. It applies Non Stop Routing (NSR), hot patching, and In-Service Component
Upgrade (ISCU) technologies for Figure 1. ZTE’s IP network solution. dynamic loading of functions. Using active/standby switching of inter-frame logical entities, a single router and into a cluster. Clustering is a cheaper chipsets, and has built its own chip a cluster of routers can be expanded way of meeting demands of service system that provides for continuous smoothly without causing interruption growth, network performance, and evolution of equipment and technology. to running services. For the numerous capacity expansion without creating ■ Energy conservation routing table entries and complicated additional network complexity. ZXR10 By applying energy-saving forwarding relations in a backbone T8000 supports multi-chassis cascade technologies such as smart power network, ZXR10 T8000 adopts and linear capacity expansion. The supply, smart dormancy process, smart distributed processing, routing filtering, switching capacity can reach up to service adjustment, smart line-card and protection mechanisms to rapidly 200Tbps. At present, the ZXR10 T8000 startup, and smart fan control, ZXR10 screen failed nodes. This eliminates line card provides a 100Gbps wire- T8000 is energy efficient and consumes routing instability and maintains speed port at each slot that supports 23% less power. stable forwarding relations between smooth upgrade to 400Gbps. Backed by a full product range, the nodes. ZXR10 T8000 also assures ■ Independent intellectual property and drawing on years of network reliability at five levels—system rights construction experience, ZTE can architecture, equipment components, ZTE owns independent intellectual provide a total IP network solution with operating system, protocol processing, property rights for ZXR10 T8000. Its well-defined architecture, as shown in and message flows—to ensure steady ZXROS system is a modular multi- Figure 1. operation with 99.999% availability. process system. Using differentiated An IP backbone network employing ■ Ultra-large capacity cluster kernel and user mode, independent ZXR10 carrier-class routers provides Scalability of an IP backbone component process space, and full independent service access layers, network can be improved by increasing distributed processing, it enables differentiated SLA, and security the capacity of a single device, the operating system to be open and assurance, thereby meeting the needs changing the network structure with reliable, and paves the way for multi- of operators. The reliability, scalability, distributed network layers where service bearing and control. After years and energy efficiency of such a network multiple devices are deployed in one of research and development, ZTE has gives operators a distinct market node, and placing multiple routers made breakthroughs in top-class router advantage.
October 2010 ZTE TECHNOLOGIES 11 Focus
A Reconfigurable Gateway for the Coexistence of PTN and MSTP
By Zhao Yue
Challenges for Operators consumed. If these services are swapped ■ How to convert OAM information s 3G mobile services develop to PTN, which is more suitable for data between PTN and MSTP and deployment of LTE service bearing, more SDH bandwidth Anetworks rapidly approaches, resource would be available for 2G Non End-to-End Interconnection a next generation Packet Transport services. Solution Network (PTN) technology is necessary To make full use of bandwidth PTN and SDH implement pseudo- for operators to reduce TCO and enhance resource in MSTP and to address the wire decapsulation through the STM-1 the competitiveness of their mobile above networking issue, a PTN and or STM-4 interface and the original E1 broadband networks. Since conventional MSTP hybrid networking solution signals are recovered for transmission. SDH networks will coexist with IP- (see Figure 1) is a good solution. The Because MSTP and PTN belong to based networks for some time to come, following issues must be considered: two separate rings—PTN access ring smooth evolution from SDH to PTN is a ■ How to enable cross-domain traffic and MSTP convergence ring—they key issue that needs addressing. transfer between BTS and BSC perform intra-domain traffic scheduling Considering the long-term coexistence ■ How to provide cross-domain end- respectively. Traffic from BTS to BSC of 2G and 3G, the most simple way to-end (BTS to BSC) protection is configured separately for network to capitalize on existing network ■ How to realize cross-domain NMS management. E1 to VC12 end-to-end infrastructure is to carry 2G voice interconnection between PTN and traffic is configured for PTN, while services over SDH, and 3G and EOS MSTP VC12 to VC12 end-to-end traffic is services over PTN. To accommodate the expansion of 2G services, 2G BTSs must PTN BSC RNC be built or EOS services swapped from MSTP SDH to PTN.
When PTN is used to bear services at Optical Interconnection the new BTS side, there may not be any Original MSTP idle STM-1 interface at the BSC side Convergence Ring PTN Convergence New PTN for connection with PTN. As a result, Ring Convergence Ring services sent from BTS to BSC may not New NodeB Original MSTP be transmitted through equipment at the Access Ring Original PTN New PTN PTN core layer, but rather through the Access Ring Access Ring original 10G/2.5G MSTP at the core BTS layer. NodeB NodeB NodeB New BTS New BTS NodeB Because EOS services are transported over SDH, substantial bandwidth is Figure 1. PTN and MSTP hybrid networking.
12 ZTE TECHNOLOGIES October 2010 configured for MSTP. The MSTP and PTN MSTP PTN rings are independently protected.
A non end-to-end interconnection BTS RNC MSTP Convergence/ A Reconfigurable Gateway for solution (see Figure 2) is easy to PTN Access/ N×STM-1/4 Core Ring implement and deploy on the existing Convergence Ring network. No alteration to existing PTN BSC NodeB and MSTP is necessary. However, the Coexistence of Figure 2. Non-end-to-end interconnection. the solution has high risks in network topology. Single node failure may occur Packet Access Domain MSTP Convergence Domain between the PTN access ring and MSTP convergence ring, and this may lead to service discontinuity between BTS SDH Gateway Card C.STM-1 and BSC. Moreover, the solution fails N×E1 PTN MSTP to provide end-to-end protection, end- N×E1 BSC BTS FE/GE to-end OAM, or NMS interconnection FE RNC between PTN and MSTP. Any OAM Interworking / Synchronization Information Exchange / Coordinating Protection network failure entails layer-by-layer NodeB Active LSP Unified NMS troubleshooting. This affects rapid fault Standby LSP locating, recovery, and QoS. Figure 3. Reconfigurable gateway solution. Reconfigurable Gateway Solution low-cost hardware that meets high SDH protection and PTN protection ZTE has launched a reconfigurable technical requirements. It can be as well as interoperability of PW 1+1 gateway solution for interworking easily deployed with no change protection and MSTP VC-12/VCG between a newly-built PTN and existing to MSTP topology and without 1+1 protection. MSTP. The solution provides unified impacting existing traffic. ■ Cross-domain NMS interconnection: NMS, service and OAM information ■ Cross-domain traffic transfer: PTN T h e interworking of Data conversion, end-to-end protection, supports a reconfigurable SDH Communication Network and clock synchronization. These help gateway. After PTN simulation, (DCN)—PTN’s NMS—and Data operators integrate existing resources and TDM traffic is converted into E1 Communication Channel (DCC) of realize smooth evolution of networks (see signals, which are first transferred MSTP allows fast fault locating and Figure 3). to PTN gateway nodes, then to recovery. In China Mobile’s 2G/3G backhaul MSTP through the STM-1/4 SDH The reconfigurable gateway solution network, MSTP was first deployed at interfaces, and finally to BSC. In this meets customer requirements for the convergence layer where there is way, traffic encapsulation overhead high performance, low cost, and low redundant bandwidth. At the access is saved and bandwidth utilization is power consumption. It supports easy layer, where bandwidth is scarce, a increased. and flexible deployment in the newly- new PTN has to be built. To protect ■ End-to-end OAM: A reconfigurable built PTN without impacting existing China Mobile’s initial investment, ZTE SDH gateway makes it possible services, and provides reliable end-to- supplied a reconfigurable SDH gateway to convert PW alarms in the PTN end protection, rich OAM functions, for MSTP and PTN hybrid networking, domain into VC12 alarms in the fast troubleshooting, and convenient which allowed the transfer of both 2G MSTP domain, and vice versa. This end-to-end management. Because EOS and 3G services. helps implement end-to-end alarm services are smoothly swapped to PTN, ZTE’s reconfigurable gateway management, and end-to-end OAM SDH bandwidth resources are saved for solution has advantages over a traditional of network devices of different bearing 2G voice services, and this helps tunnel solution: vendors. operators protect their investments in ■ Low cost and easy deployment: The ■ End-to-end protection: End-to-end SDH. reconfigurable SDH gateway has protection can be realized through
October 2010 ZTE TECHNOLOGIES 13 Focus
Promonte Leads with All-IP Transformation
By Li Lei
ontenegro is located in (IPTN) products for construction of the We are very southeastern Europe and bearer network. Mhas a coast on the Adriatic ZTE’s new generation SDR base happy to establish this Sea. With its picturesque coast and stations were installed to replace the a mountainous northern region, the original ones, and a plan was made new partnership with country is a popular tourist destination. to deliver LTE services by 2013. ZTE and together build The Telenor Group, headquartered in This represented an evolution of Norway, is the sixth largest provider of mobile services from TDM to all- a future-proof network telecommunications services worldwide, IP. Montenegro is a mountainous and its subsidiary, Promonte, is country, and microwave is the dominant which will benefit both Montenegro’s largest mobile operator. technology for wireless base stations. Promonte’s customers Promonte is 100% owned by Telenor Issues such as utilizing and boosting and its mobile subscriptions account for bearing efficiency, fast provision of new and the environment. 50% of the population. As Montenego’s services, improving user satisfaction, tourism industry has developed, its and managing CAPEX and OPEX, —Christopher Laska, mobile market has grown rapidly so that required careful consideration to mobile penetration now exceeds 200%. ensure long-term evolution of mobile Promonte CEO Promonte’s networks were costly to network and to build an outstanding maintain and did not support smooth bearer network. With packet-based upgrade to LTE, so the company decided kernel, IPTN can carry packet services to upgrade its existing network to grow efficiently. Because Promonte holds and consolidate its market share. After ZTE’s IPTN products and solutions in a vigorous selection process by Telenor high regard, ZTE was chosen above all and Promonte, ZTE was chosen as others to build the bearer network. the sole vendor for the upgrade of the ■ One network to enable multi-service 2G/3G network (with some sites being access: New base stations are all IP upgraded to LTE in 2013). ZTE supplied based. A number of E1 and STM-1 high performance IP Transport Network services, as well as services from
14 ZTE TECHNOLOGIES October 2010 All-IP Transformation
other networks, are still carried by ■ Reliability is the basis of network: they passed acceptance tests within the existing network. ZTE provided a IPTN features robust reliability, a three months. Many stations were complete IPTN solution to cope with complete OAM mechanism, and located in the mountains where this situation. IP RAN was used for protection schemes such as PW dual- the terrain was difficult and the access and aggregation layers, to carry homing and tunnel protection, which roads were icy during winter. Some both Ethernet and TDM services. provide end-to-end and hierarchical stations on the mountaintop were ZXCTN 9008 served as a PE node protection from service layer to link only accessible by helicopter. Despite of the MPLS network for access to layer. High reliability, redundant installation challenges caused by the all services from RAN and the core critical board, and universal board environment, ZTE engineering staff side, while ensuring network security design allow equipment to operate braved the bitter cold to complete through node redundancy. normally even in severe weather. the installation and commissioning ■ Delivery of high-quality services in ■ Smooth evolution to LTE: IPTN of the transmission equipment earlier tourist season: Because Promonte supports bearer technologies such as than agreed. All items passed an employed microwave technology IP RAN and Metro-E, and is capable acceptance test on the first attempt, to build the original network, the of smooth evolution to LTE. and this gave a strong indication of maximum bandwidth of its three ■ Fast delivery: To guarantee network success in subsequent service swap. national backbone rings was only stability prior to the tourist season in ZTE’s swift response was greatly 600MB. IPTN can provide an summer, Promonte required network appreciated by Promonte. IP-based networking mode and swap to be completed before April The successful implementation of the implement bandwidth multiplexing 2009. This involved collocation Promonte project helped the company on the link, resulting in a higher of nearly 300 2G/3G base stations improve the quality of its mobile bearer utilization rate for microwave link. and core network equipment. As network. It can now deliver much- IPTN has a perfect QoS mechanism the infrastructure network, the improved services to attract more and can deliver differentiated mobile bearer network had higher customers, drive service growth, and services based on service class. This requirements. Prior to service swap, consolidate its leading position in satisfies the requirement for high- ZTE needed to complete installation Montenegro’s mobile communications quality service delivery during the and commissioning of transmission market. Montenegro is well on the road tourist season. equipment at all nodes and ensure to an all-IP era.
October 2010 ZTE TECHNOLOGIES 15 Interview
Rooted in China: Stepping Forward to World-Class Excellence
An interview with Zeng Xuezhong, Senior Vice President of ZTE Corporation
By Zhao Lili
&T/EXPO COMM CHINA 2010, to be held in Beijing this October, Pwill be the most influential ICT event this year. The theme of the EXPO is tri-network convergence, and topics such as TD/LTE/4G evolution, green telecom, and Internet of Things will be discussed. In the lead up to the event, journalist Zhao Lili interviewed Zeng Xuezhong, Senior Vice President of ZTE Corporation, to find out how ZTE is working with Chinese operators to develop a new industrial chain in a new industrial environment.
Journalist: 2009 saw the birth of 3G in China, and the country’s three major operators have been involved in 3G network deployment and operation ever since. What role has ZTE played in China’s 3G deployment? And how will ZTE establish strategic partnerships with these operators to develop their networks to LTE? Zeng: In 2009, China’s Ministry of Zeng Xuezhong has been Senior Vice President of ZTE since 2006. Industry and Information Technology He graduated from Tsinghua University with a bachelor’s degree in issued 3G licenses to China Mobile (TD- engineering in 1996, and with an EMBA in 2007. Mr. Zeng joined SCDMA), China Unicom (WCDMA), and Zhongxingxin in 1996. Between 1997 and 2006, he acted as Senior China Telecom (CDMA). This marked Project Manager, Assistant to the Regional General Manager, Manager of the formal entry of China into the 3G Guiyang and Kunming Branches, Deputy General Manager and General era, and for the first time, placed Chinese Manager of the Second Sales Division, and Vice President of ZTE. Since telecom vendors on an even footing with August 2006, he has been Senior Vice President of ZTE overseeing the foreign competitors. ZTE is not only a Third Sales Division. Mr. Zeng has many years experience in the telecom industry, including more than 10 in managerial positions. key participant in China’s 3G network construction, but also an advocate for 3G
16 ZTE TECHNOLOGIES October 2010 industry development and technological monitoring the evolution of 3G to change the competition pattern of innovation. LTE, and some are even initiating China’s telecommunications industry. Rooted in China: Stepping Forward According to a report released by the process. ZTE is devoted to LTE For equipment vendors, it will lead iSuppli in January 2010, ZTE holds research and development, and is to increasing demands for equipment the largest share in China’s 3G market. continually increasing its strategic because of network construction In the TD-SCDMA sector, ZTE has funding in both FDD and TDD. We and upgrade requirements. More to World-Class Excellence been a strategic partner of China have applied for more than 1,700 LTE importantly, as telecom operators Mobile throughout its TD network patents, and own basic patents of the transform into service providers, construction—from the phase one LTE standard. With a quality product equipment vendors will also transform and two network trials in 2007 and portfolio and a growth strategy that is from simple equipment suppliers 2008 to the large-scale phase three prudent and sustainable, ZTE is ranked to end-to-end full-service solution commercialization in 2009. ZTE has among the Top 3 players in terms of providers. The group of three major played a key role in China Mobile’s LTE strength by research firm Garnet. operators in China will expand to technical innovation, industrialization, ZTE offers sophisticated services include CATV operators. These new network deployment, and service for TD-SCDMA, CDMA2000, and operators will have diversified business delivery. WCDMA, working with operators to models and will challenge traditional ZTE has also become the industry develop the whole industrial chain. We operators with their control over TV leader in CDMA, holding the largest are highly recognized by operators for content and broadcasting rights. Both market share in China since 2007. our innovation mechanism, long-term telecom and CATV operators will Close cooperation was established with strategies, and enhanced brand image. have to innovate and explore new China Telecom after it was awarded a Chinese telecom vendors are certainly areas of business to gain a competitive CDMA license, and ZTE infrastructure capable of competing with global advantage, and this will create new equipment has now been deployed telecom giants. The 3G era is a turning market and cooperative opportunities. in 27 provinces throughout the point for China’s telecom industry and Demand for triple play services will country. ZTE helped China Telecom is of far-reaching significance. grow, and emerging multimedia build approximately 60% of its local services such as position shift TV CDMA networks at the prefecture J: The theme of P&T/EXPO (PSTV), interactive TV, high definition level, and undertook most of its 3G COMM CHINA 2010 is tri-network video, mobile monitoring, and mobile network planning, construction, and convergence, and the Chinese TV, will be widely sought after. maintenance. government has put in place support Moreover, with the current bandwidth ZTE has also been a key supplier policies to speed up this process. restrictions for broadband services, to China Unicom since the company What changes will happen in China’s telecom operators will be compelled started WCDMA network deployment telecom industry, and what challenges to increase network access bandwidth in 2009. ZTE’s market share increased and opportunities will this present to and to widely deploy FTTH networks. during phase two, phase three, equipment vendors? Likewise, because cable networks are and phase four of China Unicom’s Zeng: In January 2010, the State incapable of bidirectional transmission, WCDMA project. The largest share was Council passed a general proposal CATV operators will be compelled to clinched in phase four of the project, for speeding up the convergence restructure their networks as digital which covered 20 provinces and 108 of telecommunications, broadcast two-way systems. cities. Leveraging its implementation TV, and Internet networks. This Changes brought about by tri- efficiency and service capability, proposal will alter the whole industry, network convergence will present ZTE became the leader in fast project not only driving the growth of opportunities and challenges completion. Moreover, network tests telecommunications, broadcast TV, and for equipment vendors, but the were passed with excellent results. All Internet businesses in China, but also opportunities are greater than the this demonstrates ZTE’s comprehensive presenting opportunities and challenges challenges. The entire industrial chain strength in the WCDMA field. to all parties in the industrial chain. will be reshuffled. Infrastructure Operators worldwide are closely Tri-network convergence will equipment vendors, service equipment
October 2010 ZTE TECHNOLOGIES 17 Interview
vendors, OSS providers, high-end paramount importance in today’s strategic industries including new integrated terminal suppliers, and telecommunications industry. What energies, new materials, information content and service providers will requirements are implied by these networks, and high-end manufacturing. become the market’s focus of attention. issues and how will equipment The ICT industry is vitally important in With the most complete range of vendors and operators adapt to such promoting a low-carbon economy. infrastructure, service, OSS, and requirements? Specifically, what is Telecom vendors and operators must terminal equipment, ZTE has much ZTE doing to minimize negative play an active role in a new low-carbon experience in integrated broadcasting environmental impact? economy, and are obliged to promote and control platforms, interactive and Z e n g : Green products, carbon healthier, more sustainable telecom converged services, transmission, reduction, and energy conservation are models. To create green, innovative IP, fixed-line networks, and service now integrally linked to the sustainable networks, and to drive sustainable software. Drawing on the advantages development of telecom enterprises, development across the industry, ZTE of our products and end-to-end network and represent a revolution in values, has incorporated energy conservation solutions, ZTE will continue to be a concepts, production modes, and and environmental protection into key player in tri-network convergence, lifestyles. In a recent government work its technological innovation, product and will further improve its ability to report, Premier Wen Jiabao stated that R&D, and manufacturing. rapidly respond to operator needs. the global financial crisis was giving We have been active in drafting rise to a technological and industrial international standards, and have J: Green technology, carbon reduction, revolution, and that great efforts should established a complete green and energy conservation are of be made in developing emerging operation and evaluation system
18 ZTE TECHNOLOGIES October 2010 power consumption of base stations efficiency and profitability, vendors will implies limiting the use of auxiliary become long-term strategic partners devices associated with power supply, in the joint exploration of new market cooling, and maintenance. When opportunities. combined with new energy resources With the widespread deployment such as solar or wind, power savings of 3G networks throughout China, of around 50% are achievable. These operators have transformed into full- efforts are examples of how ZTE is service providers. 3G service operation developing green, low-carbon, and has become a primary focus, and energy-saving products. mobile Internet strategies have been put forth. Since the first half of 2009, J: Driven by new service demands, new ZTE has been helping China Telecom business models and new technologies build its software stores and this year such as Cloud Computing, Internet won a project to build China Unicom’s of Things, and mobile Internet have software store. ZTE is working hard to emerged and are being enthusiastically enhance its service innovation, and is promoted within the industry. How partnering with operators to offer high will vendors and operators change their quality feature-rich 3G services. supply and demand relationships to cope with new forms of competition? J: Finally, what are the future plans of Zeng: The emergence of Cloud ZTE in China? Computing, Internet of Things, and Zeng: China is a very important mobile Internet has driven operator market for ZTE. In the coming years, demands for new products, industrial we intend to continue helping domestic convergence, and business innovation. operators explore opportunities and to Increasingly, equipment vendors are maintain our own high speed growth. being asked to not only provide upgrade Drawing on our strength in integrated incorporating product research, solutions for products and platforms, solutions, quality project delivery, implementation, supervision, and but also to develop new products. They and technological innovation, we will management. Environmental protection must meet network requirements in a cooperate with our partners to satisfy is at the forefront of our product new industrial environment. requirements for mobile broadband, design, testing, and manufacturing, Today, the telecom industry is to thoroughly enhance service quality, and this helps reduce TCO while converging with IT, entertainment, and to contribute to the country’s improving profitability. Green Internet, and even traditional logistics, industrialization and information packing, transportation, installation, and this trend inevitably presents building. and operation and maintenance are challenges and opportunities to On the whole, ZTE will enhance its implemented as part of our logistics all parties in the industrial chain. ability to deliver integrated solutions and project delivery. Moreover, we Traditional telecom enterprises, and resources, and will seek to provide unified all-IP platforms, IMS however, may have little knowledge improve its competitive strategies, core networks, IP service engines, of other fields. Providing operators product planning and deployment, and multi-mode BSCs, and renewable with new products and technologies market behaviors to provide operators energy sources for network evolution is not the only role played by with a full range of products and and convergence. Power consumption telecom vendors; they must also services. Although rooted in China, of base stations can be reduced by work with operators to explore ZTE is stepping forward to world- 30% or more over a 24 hour period, future technological trends, network class excellence by further improving which translates into savings of up to development, and business models. operational efficiency and developing 6,300kWh per site each year. Reducing As well as helping operators increase its global strategy.
October 2010 ZTE TECHNOLOGIES 19 Third Eye
Future-Oriented IP Services Boost Operators’ Ability for Service Delivery
August 9, 2010, selected from the global-growth consulting firm Frost & Sullivan
ptical network is the backbone employs advanced N:M protection bandwidth respectively under separate of the entire telecom network. mode to identify cube-level failure rate, tributary and line mode and transponder OWith the advancement resulting in much higher equipment mode. The service processing system of optical component and silicon security compared to traditional N+N enables full utilization of bandwidth technologies, optical network is protection mode with square-level reducing network construction and witnessing a shift from single point- failure rate. operational cost. to-point topology to ring and mesh “ZXONE 8000’s other salient Intelligent service control helps to topologies, accompanied by increased features include: flexible access lower maintenance cost. By integrating automation of equipment. of varieties of services like GMPLS control plane to the network, STM-1/4/16/64/256, POS, GE/10GE/ ZXONE 8000’s service processing Large-Capacity ODUk Digital Cross 40GE, OTU1/2/3, DVB, ESCON, FC-N system (ROAMD and digital cross- Connection (N=1, 2, 4, 8, 10); dual-plane intelligent connect system) can implement In April 2010, ZTE launched control via loading WSON to accelerate highly intelligent service operation. ZXONE 8000 series, a large-capacity service provisioning; multiple Operators can perform hierarchical digital cross-connect equipment, restoration paths for critical services to QoS management, implement network- to cope with the requirements of enhance service survivability and boost level service restoration and balance bandwidth and large-granule service network utilization,” analyzed Fox Hu, link load; making the network more grooming in metro network. The consulting manager of ICT practice, intelligent and easier in service control equipment can help operators build Frost & Sullivan. and maintenance. As a result, the intelligent and flexible transport network operation and maintenance grooming network at IP granularity, Greener and Simpler cost can be reduced. thus adapting to future metro networks. “With the vastly increased According to Frost & Sullivan, ZXONE 8000 can perform high- investment on 3G services, operators core layer optical transport network speed and intelligent grooming of will come under increasing pressure to market has high technical barrier. services at granularities of ODU0/1/2/3 drive down network investment cost ZTE is expected to succeed in gaining and provide OTN digital cross-connect and improve ROI,” cited Cheney Ji, access to this high-end optical network capacities ranging from 800Gb to 1.6Tb consultant of ICT practice, Frost & equipment market with ZXONE 8000. and 3.2Tb. It implements non-blocking Sullivan. Its outstanding system architecture digital cross connection at granularities Green network results in lower and performance can help operators of ODU0/1/2/3. operational cost. ZXONE 8000 can be build high-performance and large-scale Frost & Sullivan states that deployed in core layer optical network. intelligent optical transport network, ZXONE 8000 has reliable system It recorded power consumption of accommodating development of future architecture. Its cross-connect unit 34.650W and 27.455W per 10G metro networks.
20 ZTE TECHNOLOGIES October 2010 Research Note LTE-A Leads Future Wireless Communications By Mi Dezhong
or its high speed and low LTE―boasts higher peak data rates Coordinated Multi-Point Tx/Rx latency, LTE has attracted (1Gbps in the downlink and 500Mbps (CoMP). much attention from leading in the uplink), and higher spectral F ■ telecom operators and equipment efficiency (30bit/s/Hz in the downlink Carrier aggregation vendors worldwide. Operators are now and 15bit/s/Hz in the uplink). It To reach the required peak rates, increasing their LTE investments, and supports various deployment scenarios, LTE-A supports a maximum bandwidth are actively engaged in LTE testing. enabling seamless coverage from of 100MHz. Such high bandwidth is Commercial LTE networks have been macro cells to indoor areas. hard to find in the available spectrum available since 2010. To ensure long- resource, and also poses a great term evolution and compliance with Key Techniques for LTE-A challenge to hardware design of IMT-Advanced (IMT-A) specifications, A number of new technologies eNodeB and User Equipment (UE). 3GPP has initiated research into LTE- have been introduced into LTE-A to Moreover, a key technique is needed Advanced (LTE-A) and has adopted it meet IMT-A requirements. These key to fully utilize spectrum scattered on as the preferred 4G candidate. techniques include Carrier Aggregation various frequency bands. To meet these LTE-A―smoothly evolved from (CA), enhanced MIMO, relay, and requirements, CA has been introduced
October 2010 ZTE TECHNOLOGIES 21 Research Note
into LTE-A. and eight layers are supported. This and then to the end user, while in the CA supports both continuous and greatly improves downlink transmission uplink, data is transmitted from the end non-continuous Component Carrier throughput and spectrum efficiency. user to relay node, and then to eNodeB, (CC), as shown in Figure 1. This not Moreover, dynamic switching of SU- as shown in Figure 3. In LTE-A, relay only improves peak data rates and MIMO and MU-MIMO is supported, is used as a tool to improve high- system throughput, but also addresses and performance of downlink MU- data-rate coverage, to support group the issue of spectrum discontinuity. MIMO is optimized through enhanced mobility and temporary network Asymmetric carrier aggregation is feedback of Channel State Information deployment, and to enhance cell-edge also supported in LTE-A. In a typical (CSI) and a new codebook design. throughput. scenario of asymmetric carrier Relay falls into two categories: aggregation, downlink bandwidth is ■ Relay type 1 and type 2. Type 1 relay has larger than uplink bandwidth. In relay transmission, a relay an independent cell ID, and provides To allow compatibility with LTE, node or relay station is introduced resource scheduling and hybrid LTE-A Rel-10 specifies that each CC between eNodeB and UE. The relay automatic retransmission functions. For adopts existing LTE bandwidth and node is connected to eNodeB via a an LTE Rel-8 UE, type 1 relay works is backward compatible with LTE. In wireless link. In the downlink, data is as an eNodeB; however for an LTE-A LTE-A Rel-11 or above, other non- transmitted from eNodeB to relay node, UE, type 1 relay has more powerful backward compatible carriers will be introduced. In practical scenarios for carrier aggregation, one or more CCs LTE CC1 LTE CC2 LTE CC3 LTE CC1 LTE CC3 can be scheduled per UE depending on the transmission requirement and LTE-A carrier LTE-A carrier LTE-A carrier capability. Continuous CA Non-continuous CA ■ Enhanced MIMO Multi-antenna technology improves Figure 1. Typical scenario of carrier aggregation. channel capacity and spectral efficiency by expanding transmission dimension. In LTE-A, more antennas are supported in the uplink and downlink, and Multi- User Multi-Input Multi-Output (MU- MIMO) is enhanced in the downlink, as shown in Figure 2. Compared with LTE Rel-8 (which supports single-antenna transmission), Downlink Uplink in the uplink, LTE-A supports up to four transmit antennas. For the Physical ■ Support up to 8x8 antenna ■ Support up to 4x4 antenna Uplink Shared Channel (PUSCH), up configuration configuration ■ Support dynamic SU-MU ■ PUSCH supports SU-MIMO to two codewords and four layers are MIMO switching ■ PUCCH supports transmit ■ Enhanced MU-MIMO diversity supported with Single-User Multi- feedback Input Multi-Output (SU-MIMO). For the Physical Uplink Control Channel (PUCCH), transmission quality is improved through transmit diversity. In the downlink, the number of transmit antennas is expanded from four to eight, and up to two codewords Figure 2. Enhanced multi-antenna solution.
22 ZTE TECHNOLOGIES October 2010 preprocesses channel state information under certain assumptions, and feeds back information such as precoding matrix indicator and channel quality indicator to eNodeB. For SRS-based feedback, eNodeB uses channel reciprocity and obtains equivalent downlink channel state information according to the SRS sent by UE. This UE scheme is suitable for a TDD system.
eNodeB Prospects of LTE-A Carrier aggregation uses band Relay Node aggregation to expand transmission bandwidth; enhanced MIMO increases UE cell throughput by further expanding MIMO dimension; relay improves Figure 3. Principle of relay transmission. coverage through relay of radio transmission; and CoMP increases cell-edge throughput by coordinating multiple cells. By introducing these key techniques, LTE-A can meet or even surpass all IMT-A requirements.
JP CS/CB As of July 2010, ZTE has concluded seven LTE commercial contracts, and Figure 4. Principle of CoMP. built nearly 50 LTE trial networks for telecom operators worldwide. The functions than an eNodeB. Type 2 at multiple coordinated points or company also places great importance relay has no independent cell ID, and not, downlink CoMP transmission is on LTE-A, taking an active part no control information except traffic divided into Joint Processing (JP) and in drafting related standards and is transmitted. Type 1 relay is now Coordinated Scheduling/Beamforming submitting proposals that have been adopted in LTE-A Rel-10. (CS/CB). JP achieves transmission gain adopted by 3GPP. With in-depth through joint processing, while CS/CB research into key LTE-A techniques, ■ CoMP reduces inter-cell interference through ZTE has developed an array of In LTE-A, CoMP is considered a coordination, as shown in Figure 4. competitive solutions. ZTE is now useful tool for improving high-data-rate To support different CoMP working hard to develop a LTE-A coverage, cell-edge throughput, and transmission modes, UE needs to prototype, and has made good inroads system throughput in both heavy and provide feedback on channel state to this end. light load scenarios. information. Three feedback schemes ZTE is leading the telecommunications CoMP involves uplink CoMP are defined for CoMP: explicit industry toward wireless broadband reception and downlink CoMP feedback, implicit feedback, and communications. In 2012, its LTE-A- transmission. Uplink CoMP reception Sounding Reference Symbol (SRS)- based eNodeBs are expected to be improves cell-edge user throughput based feedback. For explicit feedback, deployed globally. This will allow by joint multi-cell reception of user UE feeds back information such as people to enjoy feature-rich multimedia data, and this has very limited impact channel coefficient and channel rank services and high-speed connectivity on RAN1 specifications. Depending without preprocessing channel state using mobile broadband. on whether traffic data is obtained information. For implicit feedback, UE
October 2010 ZTE TECHNOLOGIES 23 Research Note
Business Model Analysis of Managed Services By Wang Xinqiang
hen bidding begins for maintenance of the network layer, There is no standard definition of l a r g e - s c a l e n e t w o r k business layer, and customer layer managed services, and this is ZTE’s Wprojects, managed services based on a Service Level Agreement current understanding of application are often considered an admission (SLA). Managed services adopt scenarios for managed services in the ticket. Many operators see managed standard processes, reusable resources, telecommunications industry. The term services as a business strategy for flexible value chain cooperation “managed services” originally referred globalization. Vodafone and Warid, models, and revenue distribution to any user facility management service for example, use unified RFPs and schemes so that operators can provided by operators to enterprise share bid evaluations, and have built optimize their business and financial users. It was overly simple and did not a joint global business evaluation performance and focus more on core take into account SLAs. system. South Africa’s MTN is businesses. The SLA is the foundation of service considering adopting a managed services strategy in both developing Business Layer and undeveloped countries. As well Customer ■ Service Management ■ Business Consulting as basic network operation and maintenance, operators are demanding more in terms of revenue management, A&C ■ Collocation ■ SDP Management ■ Application & Content business management, and terminal Partnership management, and managed services Customer have become an increasing focus of Network ■ Maintenance ■ Operation attention. SLA Assurance
Service Layer ■ Design ■ Network ■ Spare & Logistic What are Managed Services? ■ Plan Deployment ■ Facility Management Managed services are professional Vendor ■ Optimization network management services that include integration; and operation and Figure 1. Hierarchy of managed services.
24 ZTE TECHNOLOGIES October 2010 delivery, and service capability is an home markets of other operators, businesses should be shared with absolute prerequisite. Managed service competition has heated up. Shorter equipment suppliers in order to solutions should adapt to the business time to market for new products and minimize investment risk. Business Model Analysis of models of operators and the following rapid development of new business Service management is an essential should be considered: is therefore necessary to compete. part of the new telecom ecosystem ■ Support measures for product ■ Management optimization: The and this creates win-win opportunities Managed Services solutions (product maintainability, emergence and convergence of for all participants. By optimizing and interface openness, and SDP) new technologies, new businesses, sharing resources, complementing ■ Integration with third-party products and complicated value chains have business abilities, and sharing risk, and client devices made network management more service management creates additional ■ Delivery cooperation model and difficult. Supply chain management, sources of income. income distribution program network technologies, and services, The need for service management Three changes should be considered need to be simplified and integrated is also evident when the CAPEX and for business models: so that operators can focus on core OPEX of mobile operators is examined ■ Changes in the profit model businesses and front-end markets. and OPEX broken down (as shown in (resulting from changes in the cost ■ Risk transfer: The risks associated Figures 2 and 3). and revenue models) with new technologies and new CAPEX of global mobile operators ■ Changes in the value orientation (from equipment selling to service or 600000 business selling) ■ Changes in the customer relationship 400000 (from a buyer-seller relationship to a US$m partner relationship) 200000
Driving Force of Managed Services 0 Managed services are driven by the 2005 2006 2007 2008 2009 2010 transformation of telecom operations in CAPEX OPEX terms of: Source: Pyramid Research. ■ Financial targets: As the telecom market continues to slump and the Figure 2. Mobile operators’ CAPEX and OPEX. telecom ecosystem deteriorates; new approaches to cost reduction, streamlining revenue, cash flow Network Services 70% performance, and ROI must be Transport 10% sought. Among these, reducing Share of OPEX
OPEX is the most critical. 100 Interconnection, ■ Termination, and Business performance: New 90 Cost of Services 25% Roaming 18% technologies are continually 80 R&D 2% 70 emerging. To increase core Cost of Equipm ent Sales 15% 60 competency in the market, new 50 Depreciation and Amortization 25% technologies must be obtained and 40 business performance improved at 30 reduced cost. 20 Selling, General, and Administrative 35% 10 ■ Deployment capability: Since 0 competition is globalizing and new operators are asserting themselves Source: Pyramid Research. with new technologies in the Figure 3. OPEX breakdown for a typical mobile operator.
October 2010 ZTE TECHNOLOGIES 25 Research Note
Managed service capability is important in the decision-making process for product purchases. Outsourcing of managed services has become a better choice for operators, and it is crucial for manufacturers to provide professional services. reached peak value (about US$137bn) generation network profit models are services from virtual operators and in 2007 and has declined steadily sought. enterprises may be a “blue ocean” for ever since. New business expenses in ■ The development of an industry traditional network vendors. The active CAPEX have increased from 10% in profit model goes hand in hand with roles of IT enterprises in the managed 2000 to 30% in 2010. development of managed services services field will give rise to new OPEX of global mobile operators is business models. Manufacturers competitive arrangements. three times CAPEX (about US$400- can thus provide more solutions and 500bn annually). However, since business models to meet customer Conclusion 2008—when operators were equipped needs in the value chain. The transformation of the telecom with converged, all-IP network business models has led to the technologies—OPEX growth has Development Trend of Managed development of managed services. New slowed. Services networks, new businesses, and high- For a typical mobile operator, Managed service capability is value domains have grown quickly as a service costs account for 25% of important in the decision-making result of value chain managed services. OPEX, 70% of which are for network process for product purchases. The NGN business profit model is still service. The ratio of network service Outsourcing of managed services has being explored, with risks being shared expenses to total service expenses in become a better choice for operators, with manufacturers. OPEX and CAPEX (e.g. for service and it is crucial for manufacturers to The network layer, business layer, management tools) has grown from provide professional services. and customer layer have different 33% in 2005 to 45% in 2010. Network-layer managed services capability requirements for managed Conflicts and opportunities in next will dominate the market, and will be services. Equipment suppliers should generation network transformation provided by device manufacturers with develop and offer different managed promote service management: product operation ability or managed service solutions according to different ■ The traditional resource-based services providers. Business-layer paths and modes. profit model of bearer networks is managed services have an uncertain Business models of different being challenged, and “bit paradox” future because industry profit models manufacturers have a common point has become the bottleneck of are still being explored. However, in taking advantage of their own next generation business network the total available market is growing products and resources. Managed operation. rapidly and business-based market services capabilities can be improved ■ The value chain model is an segmentation needs to be tracked. through organizational transformation, inevitable trend, and virtual Marketing of customer-layer managed cooperation, and mergers, and profit operation and managed services services will also be segmented and can be made by selling competitive have come into fashion. more suppliers will offer managed solutions. ■ Managed services at the business services. layer involve risk sharing while next The growing demand for managed
26 ZTE TECHNOLOGIES October 2010 News Brief
CSL and ZTE Set to Commercially Launch the World’s First Dual Cell HSPA+ (42Mbps)/LTE Network ZTE Awarded “2010 IPTV Equipment
7 September 2010, Hong Kong ― At the LTE Asia Vendor of the Year” Accolade 2010 Conference today, CSL Limited (CSL), Hong Kong’s leading mobile network operator in partnership 29 September 2010, Shenzhen, China ― ZTE has been recognized with ZTE Corporation, a leading global provider of as the “Best Practice Award―2010 IPTV Equipment Vendor of telecommunications equipment and network solutions the year”, marking the second time it has received the accolade. It demonstrated CSL’s progress to being the first in the received the award based on research conducted by leading consulting world to simultaneously deploy DC HSPA+(42Mbps)/LTE company, Frost & Sullivan. technologies on an entire network. Among IPTV vendors, ZTE ranked third in the world IPTV CSL and ZTE demonstrated to the world live LTE middleware market in terms of subscribers in 2010 H1, and was the service with pre-commercial USB modems running various leader in the IPTV middleware markets of Asia and China in 2010 H1. broadband, multi-media applications, including high-speed With the development of the global broadband market, IPTV file download/upload, internet browsing, HD video download content and application has become more important. As one of the and streaming performance, and many other features that latest broadband applications, IPTV has attracted industry attention. will resonate with the next generation of mobile users. This gives the delegates a first-hand experience with the LTE service being deployed all over Hong Kong. ZTE to Build CDMA Network for Polkomtel ZTE Supplies Over 3,500 3G Data services main driver for nationwide Equipment to Taiwan VIBO Telecom network in Poland 14 September 2010, Shenzhen, China ― ZTE is to upgrade Total shipment of SDR base-stations is over 250 Polish operator Polkomtel’s national CDMA network. ZTE will thousand units worldwide supply equipment for the network in the 450MHz (L band), upgrading existing infrastructure to improve coverage and 27 September 2010, Shenzhen, China ― ZTE today announced enable data and Push-to-Talk services. it has signed a contract to supply WCDMA wireless equipment to Polkomtel is one of the largest operators in Poland, VIBO Telecom Inc. As a subsidiary of theTaiwan Kinpo-Compal with about 14 million subscribers. ZTE Poland will supply Group, VIBO is the leader of pure 3G WCDMA operator in Taiwan. all equipment for the network including base stations and Under the agreement, ZTE will supply more than 3,500 3G base- controllers, switching nodes, service platforms, and a GoTa stations to replace VIBO’s existing 3G network around Taiwan digital trunking system. within one year. The base-stations to be provided for VIBO are “There is a growing demand in Poland for data services and based on ZTE’s industry-leading Software Defined Radio (SDR) high-bandwidth applications. Our subscriber base wants to be technology. connected and make use of social networking. ZTE’s CDMA In recent years, ZTE has achieved a breakthrough across the technology enables Polkomtel to stay ahead of the competition global UMTS markets based on its leading edge SDR technical and offer consumers the quality of services and innovative platform. To date, the total shipment of ZTE’s SDR base stations is applications they are looking for,” said Jarosław Bauc, already over 250,000 units, used by more than 60 operators in over President of the Board at Polkomtel. 40 countries.
October 2010 ZTE TECHNOLOGIES 27 News Brief
ZTE Launches the ZTE Launches Industry’s Most Complete 100G Gecko, the World’s End-to-end Carrier Network Solution First Multi-Carrier Carrier network operators to benefit from comprehensive range Super-Mini CDMA of UWB products and services Base Station 28 September 2010, Shenzhen, China traffic bottleneck in the core networks, ― ZTE today announced the launch of and fully meet the demands of the 30 September 2010, Shenzhen, the industry’s most complete 100G end- growing data business. China ― ZTE today announced to-end carrier network solution, which To achieve the 80-wave, 100G ultra- the launch of Gecko, the first multi- will provide the bandwidth capacity for wide system capacity, ZTE’s complete carrier super-mini CDMA base network operators to meet increasing solution incorporates the use of ZXR10 station available in the industry. network traffic demands. T8000 in the IP layer to realize the The innovative Gecko is small The explosive popularity of IT smooth upgrade from 10G to 100G. in size (measuring 26cm×18cm× applications, HD video services and ZXR10 T8000 is a telecom-class 5.8cm), lightweight, easy to mount cloud computing has led to a massive 100G routing cluster system with the and satisfies operators’ networking spike in network traffic. For carrier largest capacity in the industry, which requirements, such as indoor blind- networks to provide sufficient capacity, can support multiple services with spot coverage and hot-spot traffic operators need to expand and upgrade compromising performance in case of distribution. their networks smoothly. Through the full-service overlapping. By using chips The Gecko helps operators deployment of ZTE’s ZXWM M920 and with self-owned intellectual property, make up for any deficiencies, ZXONE 8000 as part of the Ultra Wide ZXR10 T8000 can maximally support improves network quality, enhances Band (UWB) 100G carrier network 16+64 multi-chassis system and 200T user experience and builds high- solution, operators can eliminate any switching capability. efficiency and high-quality CDMA networks. ZTE’s Gecko base station supports several IP networking ZTE Launches Converged Service Network modes and achieves access by using various transmission resources (such Platform as MAN, LAN, PON, xDSL, and SDP as a Service solution announced at SDP Global Summit satellite). Its coverage radius can reach 300 meters, thus meeting high 15 September 2010, London ― The CSN is a new service network service standards for use in offices, ZTE today launched its Converged platform integrating mobile and fixed hotels, retail and entertainment Service Network (CSN) at the SDP network infrastructure onto a basic outlets, as well as providing high Global Summit in London. ZTE’s platform that supports both Internet and quality indoor 3G data CSN incorporates traditional SDP telecoms services, providing a flexible and voice architecture and cloud computing solution with efficient management and services. features, enabling an SDP as a Service control features. Traditional SDPs also (SDPaaS) solution for the first time. provide the flexibility to support and The CSN provides an efficient and manage different services, but are not stable service network platform for able to support multi-domain service operators, third-party application convergence, or an environment where providers, and individual or group developers can collaborate and share Gecko Base Station application developers. innovative services.
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