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 2 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.