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PAGE 2 WWW.TOTALTELE.COM JANUARY 2012
CLOUDS ON THE MOVE
The market for cloud computing and
cloud-based services is set to boom.
As more and more enterprises seek
to avoid paying money upfront for IT
infrastructure and services, opting
instead for pay-as-you-go business
models, the cloud opportunity is
poised for rapid growth. According
to some analyst projections, annual
revenue from cloud services will
exceed US$150 billion in 2020, up
from an estimated US$28 billion in
2011 (see Figure 1: Global Cloud
Addressable Market Opportunity).
The question for telcos, both fixed and
mobile, is how big a role they can play
in this expanding market. Providing
only a ‘dumb pipe’ will not, for many,
be an appealing prospect. Meanwhile,
the likes of Amazon, Google, Microsoft
and Salesforce.com – companies with
little or no network assets – have made
most of the front running. Between
them they have become established
players in each of the three main
cloud formations: IaaS (Infrastructure-
as-a-Service), PaaS (Platform-as-
a-Service) and SaaS (Software-as-
a-Service). A number of companies
with system integrator backgrounds,
such as Accenture, Capgemini, IBM
and Infosys, are also acquiring cloud
infrastructure and muscling into the
market. Where do telcos fit?
According to Camille Mendler, a
principal analyst at Informa Telecoms
and Media, the majority of telcos have
yet to make their stamp on the cloud.
“Most operators are still focused on
just getting in the game rather than
differentiating,” she says.
Informa tracks the cloud activities of
over 90 operators around the world
and calculates they spent about US$8
billion on cloud-related pursuits in the
first six months of 2011. “Most of that
money has been spent on buying fixed
assets and replicating storage services
rather than on service innovation,”
adds Mendler. “For many, it’s all about
playing catch-up with the established
players and offering commodity-like
services. And when that happens,
price is the only way to differentiate.”
But it need not be like that. “Mobile
network operators are underplaying
the fact they can allow anyone to
access a cloud service from any device
– a device-independent desktop
virtualisation service – in a secure
fashion,” continues Mendler. Although
third parties could offer this service to
the enterprise, Mendler argues that
operators are better placed to provide it
because they own the network, which
allows tighter integration between the
device and cloud-based applications.
And without third parties in the way,
enterprises can receive traffic usage
reporting directly from the mobile
network operator, another source of
comfort for IT managers who need to
be alerted immediately when anything
out of the ordinary occurs.
Not surprisingly, perhaps, the mobile
operators that Total Telecom spoke
to for this special ZTE-sponsored
supplement (Orange and Vodafone)
agreed that they could indeed
play a prominent role in helping IT
departments cope with the rapid
adoption of smartphones and tablets
within the enterprise. Importantly,
mobile device management vendors
also see the value in partnering with
operators. When HP announced last
year its DMaaS (Device Management-
as-a-Service) product, it was through
partnership with telcos – as trusted
providers – that the technology firm
envisaged getting the product to
market. And by offering a secure
and customisable web portal for IT
administrators to track and manage
devices, mobile operators can add
another service to their cloud portfolios.
“There are three main things that
telcos can bring to the cloud,” says
Adrian Drury, who heads up the
media, broadcasting and telecoms
consulting practice at Ovum. “First,
they have extensive enterprise
customer relationships, so they can
be ideal partners for cloud vendors to
distribute their services. Second, they
have strong cash flow [enabling the
purchase of cloud assets, as well as
boosting customer confidence about
their longevity]. And third, they have
the network assets to offer private
cloud services, such as secure tunnel
access into data centre infrastructure.”
Pure IaaS plays with no network assets,
such as Rackspace, could also offer
private cloud services by striking up
deals with network providers. They could
Mobile operators can differentiate in the ‘cloud’ by
leveraging their network assets and partnership appeal
By Ken Wieland
PAGE 3 WWW.TOTALTELE.COM JANUARY 2012
CLOUDS ON THE MOVE
then offer a bundled package of cloud
and cloud-access services to enterprise
customers. But leaving aside the matter
of how uncomfortable IT departments
of multinational corporations might be
in not having a direct and accountable
relationship with network providers,
Drury questions the willingness of global
network operators to enter such deals
anyway. “Many of them are building out
their data centre infrastructure, so how
incentivised would they be [to play a
subcontractor role]?”
FIXED CLOUD FIRST,
MOBILE LATER?
The most eye-catching telco moves in
the cloud to date have been arguably
led by fixed-line businesses. “That
is usually where the cloud expertise
resides, which perhaps explains why
mobile cloud propositions have been
relatively unsophisticated, or why, in
most cases, the cloud is not being sold
in a unified way by hybrid operators
across their fixed and mobile divisions,”
says Informa’s Mendler.
The biggest deals over the last couple
of years in recent months have come
from Verizon in the US and Japan’s
NTT Group. In January 2011, Verizon
splashed out US$1.4 billion on
Terremark, giving access to some 50
data centres in the US, Latin America
and Europe. In July 2010 NTT acquired
South African-based Dimension Data
for US$3.2 billion. Dimension Data
specialises in helping companies
migrate to managed infrastructure
services and cloud computing, a
key requirement in stimulating cloud
adoption. Verizon also announced
in August 2011 it had purchased
CloudSwitch, a start-up that has
developed software to help enterprises
move applications and workloads
more easily between company data
centres and the cloud.
Buying in system integration expertise,
or partnering with specialists as a
trusted intermediary – combined with
their network and cloud infrastructure
assets – give telcos a promising
route to differentiation. Enterprises,
particularly large ones, are unlikely to
rush headlong into the cloud and will
generally prefer to keep mission-critical
applications and data in-house. Other
applications – such as email, CRM
(customer relationship management)
and unified communications – are
more likely to be farmed out to the
cloud and bought on a usage basis:
the so-called hybrid approach. The
big challenge in a hybrid environment
is to integrate the likes of SaaS and
UCaaS (Unified Communications-
as-a-Service) with on-premise IT
infrastructure. If fixed telcos can prove
themselves worthy in this space, it
would give them a stronger position to
promote the cloud-based offerings of
their mobile divisions.
The experience of running mobile
networks can also help develop a
hybrid operator’s cloud proposition
overall. That is the view of Alex Rigaldo,
cloud computing director at Orange
Business Services (OBS), owned by
France Telecom, which has both fixed
and mobile network assets. “Cloud
computing is about investing in very
large infrastructure, sharing it with many
users and charging for how much is
used,” he says. “This is exactly the same
as the mobile-phone operator model
and we already have usage-based billing
systems in place. We also know about
end-user behaviour and can leverage
our experience in end-user portals to
differentiate our cloud services.”
The combination of network and
portal know-how is something Rigaldo
believes is a potent one, enabling OBS
to offer a more sophisticated IaaS
than the likes of Amazon. “We have
developed a holistic service where the
IT and network components can be
managed from a single pane of glass,”
he says. “We also believe our portal is
superior to the competition in many
Source: Gartner 2009, IDC 2010, CSMG analysis
Note: Includes Global Enterprise for North America, Europe, and Asia, but only US SMB
PAGE 4 WWW.TOTALTELE.COM JANUARY 2012
CLOUDS ON THE MOVE
aspects. It has the ability to group
virtual machines into virtual appliances,
which gives a functional view. It is not
just a pile of virtual machines. The
interface is also more user-friendly,
which is helpful when it comes to the
management of usage rights.”
The OBS cloud strategy is not only
to differentiate in the MNC market by
offering what it calls “enterprise grade”
cloud services, such as IaaS and
UCaaS, but to make life easier for IT
departments to purchase and adopt
those services through its end-user
portal. And like a growing number of
telcos, OBS is acting as an aggregator
of cloud services by partnering with
various SaaS vendors to create
application stores – with a single portal
– where enterprises can pick and
choose what is suitable for them.
MOBILE TELEPHONY IN THE
CLOUDS
While the likes of NTT, OBS and Verizon
are extending their cloud portfolios from
fixed to mobile, Vodafone is doing it the
other way around. One of the biggest
mobile operators in the world, Vodafone
is either leasing or acquiring fixed-line
assets in Europe to enhance its cloud-
based portfolio for SME customers.
“When we looked at cloud services a
few years ago and started to formulate
our strategy, we asked ourselves
whether we could really differentiate
from OTT [over-the-top] Internet
players, and, if so, where could we
do it?” says Scott Petty, director of
business products and services at
Vodafone.
The answer that Vodafone came up
with was cloud telephony, initially
targeted at the European SME market.
“We took the concept of an on-premise
IP PBX, built that into our cloud, and
then integrated the mobile environment
very tightly into that,” says Petty.
The resulting product was Vodafone
One Net, a cloud telephony platform
integrating fixed and mobile PBX
functionality. One Net allows SMEs
to transfer unanswered fixed calls
to mobiles automatically, as well as
offering a range of call management
functions. Through the use of a
Web browser, either on a PC or a
smartphone, mobile users can access
various advanced call control features,
such as blacklisting unwanted calls or
SMS, convert voicemail to email, and
even setting up different voicemail
greetings for different callers. By
securely opening up their core networks
to the Internet, mobile operators can
arguably provide more innovative and
compelling cloud-based services than
OTT providers.
There are clear strategic advantages
in doing so. Petty reports that One
Net customers, on average, purchase
between 20% and 25% more handsets
than those who don’t use the service,
which drives mobile penetration; One
Net customers also generate around
20% incremental usage; and, last but
not least, there is lower churn among
customers opting for cloud-based
telephony. Since Vodafone launched
One Net in October 2009 the service
has attracted 1.5 million subscribers
across Spain, Italy, Portugal, UK,
Germany and the Czech Republic, each
paying monthly bills on a usage basis.
The One Net service was extended in
June when Vodafone announced a
partnership with Microsoft to offer Office
365, giving businesses cloud access to
the latest productivity tools from the
software giant. These include email and
calendar, Microsoft Office Web Apps,
collaboration tools, instant messaging
and online meetings. But Vodafone is
not acting as a mere reseller of Office
365. It adds value by integrating the
One Net cloud telephony platform
with Microsoft’s software. Office 365
is offered as a bundle with One Net,
charged on a SaaS basis. And while
the Office 365 margins are not as great
as with One Net – Vodafone shares
the SaaS revenue with Microsoft – the
likelihood of churn is decreased by
offering a wider range of services.
“Many SaaS offers provided by
operators are effectively loss leaders
to lock in customers,” says Informa’s
Mendler. The SaaS providers also
benefit, of course, through telco
partnerships. They gain access to large
swathes of telcos’ SME customers
that otherwise would be out of their
marketing reach.
The cloud architecture Vodafone
has adopted is PaaS. Being open
and extensible, the PaaS approach,
according to Petty, makes integration
between the mobile network and
other applications that much easier,
although still not simple. It took 18
months of integration work between
Vodafone and Microsoft before the
Office 365 announcement could be
made. The benefit for Vodafone,
though, is it hasn’t just created a
bespoke environment for Microsoft. It
can bring in other application partners,
as well as offer the PaaS platform to
larger enterprise customers for mobile
application development.
PAGE 5 WWW.TOTALTELE.COM JANUARY 2012
CLOUDS ON THE MOVE
But success in the cloud will not be all
about technology. “While PaaS puts
us in good stead,” argues Petty, “you
have to transform your sales and go-
to-market channels, as well as your
business models, if you want to deliver
higher-value services successfully.”
MARKET IMMATURITY
The benefits of the cloud, says OBS’
Rigaldo, are well understood: cost
reduction, flexibility and elasticity. “But
cloud computing is not yet a mature
market,” he adds, “even though many
people talk about it. Technologies are
maturing but the market is still very
fragmented. It’s difficult for enterprises
to decide who is the right service
provider for them.”
Informa’s Mendler goes further. “The
telecom cloud is fairly immature,”
she says. “[Many operators] are
still learning what IaaS and SaaS
is, and still learning what the real
differentiators are.”
But the opportunity for growth is there,
she believes, particularly for mobile
operators that can flex their security
and network muscles. “Securing cloud
access on any device and location is
critical, but that shouldn’t include only
people. It should include M2M and
embedded services. M2M services
are being increasingly managed by the
cloud.”
The prize for operators that get the
cloud right could be huge, generating
incremental revenue and driving
down churn. “A company that has
bought a cloud service has a much
higher tendency to buy another cloud
service,” says Vodafone’s Petty. That,
above all, should focus minds.
Cloud computing enables
users to avoid the upfront
expense of building their own
IT infrastructure. They can
take advantage of advanced
computing services that are
available in remote data centres,
paid for on a utility-like basis.
As with electricity, users pay for
what they use. Usage can be
also increased easily and quickly
– again, just like electricity.
The cloud has three distinct
layers. On the bottom layer is
Infrastructure-as-a-Service (IaaS),
which includes computing and
data storage. Mobile network
operators (MNOs) are not
prevalent in this space, although
SFR (a French mobile operator)
chose IaaS – in partnership with
HP – as its first cloud foray with
service launch in June 2010.
Market leaders are GoGrid,
Rackspace and Amazon Web
Services (the computing arm
of the online retailer), but fixed-
line telcos are also beginning to
acquire cloud infrastructure. Big
moves include Verizon’s US$1.4
billion acquisition of Terremark
in January 2011, giving the US
telco access to some 50 data
centre around the world. Orange
Business Services (OBS), which
targets multinational corporations,
signed a deal last summer with
SITA – an organisation that
provides IT and telecom services
to the airline industry – to build out
six data centres around the world.
The next layer up is Platform-as-
a-Service (PaaS), which enables
developers (including enterprises)
to write Web applications quickly
without the complexity of buying
and maintaining the software
and infrastructure underneath
it. Google, Salesforce.com and
Microsoft are some of the big
name companies that offer
PaaS. Telcos of both stripes
– fixed and mobile – have not
made a big impact on the PaaS
market, although Vodafone has
adopted PaaS as part of its cloud
architecture.
Sitting on top of the cloud
computing stack is Software-as-
Service (SaaS), where applications
such as email, CRM, ERP, unified
communications and device
management are sold on a pay-
as-you go basis. Mobile operators
wishing to offer these services
will usually need to partner and
share the SaaS revenue. Although
margins will typically be small,
bundling in services with voice
and data packages is a good way
for MNOs to increase network
usage and reduce churn.
NAVIGATING THROUGH THE CLOUDS: A QUICK GUIDE
PAGE 6 WWW.TOTALTELE.COM JANUARY 2012
SECURING THE POST-PC ERA
Smartphone shipments started
to exceed PC shipments as far
as back as 2010. ZTE, a China-
headquartered supplier of telecoms
equipment and mobile phones,
says more than 85% of consumers
will eventually access IT through
wireless technologies, whether
over cellular networks or short-
range Wi-Fi. Cloud computing
and the growing number of cloud-
based applications, says ZTE, are
providing the necessary conditions
to usher in a post-PC era. “Cloud
computing technologies lower the
computing requirements on the
device client,” says Mr Tian Feng,
Senior Director of ZTE Wireless
Architecture Department. “And if
you can run popular applications
with fewer computing and power
requirements from the local device,
smartphones and tablets will
boom.”
Consumers have driven smartphone
sales, and this in turn is having a
dramatic impact in the workplace. For
many smartphone and tablet users,
these ‘lifestyle’ devices are not just for
personal use but ideal for work tasks
as well. They want access to email and
other corporate resources, whether
based in the cloud or on-premise. And
many, particularly the ‘millennials’ –
employees born in the 1980s – see
mobile access to social networking
sites as a great way to do business.
BYOD HEADACHES
This surge in so-called IT
consumerisation, however, is causing
headaches for IT managers. Since
enterprises are generally reluctant to
dictate to employees what devices they
should or should not use, preferring to
adopt a BYOD (bring your own device)
policy, IT departments are struggling
to keep control. “Enterprise support
for these types of devices is typically
pretty weak, particularly those running
on Android, which has a number of
security flaws,” says Adrian Drury, an
analyst at Ovum.
Juniper Networks, a software and
network equipment supplier – which
also runs a dedicated research centre
in the US to monitor network security
threats – reports a 400% increase in
Android malware since last summer.
And it is smartphones running on the
Google-backed operating system
that claim the biggest market share
worldwide. According to Gartner,
Android had grabbed a 53% chunk
of the smartphone market during Q3
2011. Another worrying statistic for
enterprises is that one out of every
twenty smartphones sold are either
lost or stolen.
The good news for mobile operators,
according to Ovum’s Drury, is that they
are typically seen by enterprises as
natural points of contact to help them
with mobile device management. This
gives them an opportunity to bundle
in another service, most likely in
partnership with cloud-based vendors,
to their voice and data packages.
The prospect of continuing high rates
of smartphone and tablet adoption
means that enterprises are more likely
to favour a cloud-based or SaaS
mobile device management solution
as it scales more easily than one based
on physical appliances.
Yet Drury says mobile operators are not
rushing into this space. “There are lots
of companies offering services around
mobile device management,” he says.
“The market is commoditizing pretty
quickly and nobody is sure where it’s
going.”
Mark Kenealy, UK and Ireland country
manager at Orange Business Services
(OBS), nevertheless believes mobile
operators are best positioned to
reassure enterprises on mobile device
security. “If enterprises are looking to
control and manage their security, as
well as get solid reporting in apps and
mobile device usage, we can provide
that,” he says. “What enterprises are
looking to do is partition devices, so
that the workspace on them is secure
on one side and personal usage is not
restricted on the other.”
IT managers also want to locate lost or
stolen devices, usually to lock or wipe
them through an easy-to-use
IT access is moving from fixed to wireless devices, spurred
on by cloud computing. Mobile operators can play a key role
by making the transition a secure one. By Ken Wieland
PAGE 7 WWW.TOTALTELE.COM JANUARY 2012
SECURING THE POST-PC ERA
interface. It is a basic service that
mobile operators could add relatively
easily to their portal of cloud-based
offerings. Yet IT departments need not
necessarily turn to the mobile operator
to ease their worries about BYOD
policies. As Drury points out, the
market for mobile device management
solutions is becoming increasingly
competitive, a fact underlined by
the September announcement from
heavyweights Capgemini and Sybase
(a SAP company). In response to the
rising tide of enterprise mobility, the
two companies said they were going
to offer SaaS-based mobile device
management, as well as a platform
– or PaaS – for mobile enterprise
application development. No mention
was made of mobile operators in the
announcement.
REMOTELY SECURE
Aside from scalable mobile device
management solutions, enterprises
need to manage and secure their
corporate IT resources when
accessed remotely. Better still, IT
administrators would like to make sure
that smartphone and tablet users can
access only what they are allowed to
access, according to end-user profiles
that can be easily managed from a
Web-based interface. If that could be
done on a SaaS basis to lower upfront
costs – and with security guaranteed
– then enterprises might find such a
service attractive.
OBS certainly hopes so. The operator
expanded its cloud portfolio in October
when it launched what it claimed to be
the world’s first remote and secure
access service based on a SaaS
model. Working in partnership with
Juniper Networks Junos Pulse, which
provides SSL-based VPN clients, OBS
says it can provide secure access
to a company’s internal IT system
regardless of device (laptop, tablet and
smartphone) and connection (WiFi, 3G
and DSL).
But this is not purely a mobile or
wireless cloud-based offering from
OBS. The operator requires that
the data centres of its multinational
customers – whether in the cloud
or on-premise – are connected to
its fixed MPLS network before they
qualify for its remote access service.
OBS can then manage the fixed-line
network performance and offer SLAs,
as well as giving more bandwidth when
required – via a Web-based portal –
on demand. OBS says the remote
access service can, via a few clicks
on the administration interface, go
from managing a handful of concurrent
users to thousands.
SLAs are of course difficult to deliver
over mobile and WiFi connections,
especially when employees are
visiting customers’ sites. The best-
effort public Internet is usually the
only option. “We don’t think this
will be a barrier to take-up, as there
is usually lighter usage from mobile
devices,” says Nicolas Furgé, head of
security at OBS. “For example, only a
low amount of bandwidth is needed
to check orders from the internal
SAP system. The main concern for
enterprises surrounding mobility is not
lack of bandwidth but security, and
this where we bring the value.
We can encrypt all the traffic between
the device and the data centre.”
OBS and Juniper already have a remote
access service in the market, based
on physical appliances, which has
300,000 users. By moving to an SaaS-
based model, however, enterprises
can take advantage of the cloud’s
economies of scale or ‘elasticity’. OBS
can also widen its service portfolio.
Partnerships between operators and
security specialists look to benefit
both parties, but they will have to work
hard at getting their message across
to enterprise customers. In a nascent
market with high-growth potential , IT
managers will be confronted with a
variety of cloud-based options, from
different players, to ease their BYOD
concerns. Reassuringly for operators,
particularly those with a strong fixed-
line heritage, they are generally held in
high regard for network security. They
have a head start over rivals..
PAGE 8 WWW.TOTALTELE.COM JANUARY 2012
MOBILE OPERATORS AS CLOUD CONSUMERS: FIRST STEPS
The volume of mobile data traffic
has rocketed in most developed
markets, fuelled by the smartphone
boom. According to AT&T Wireless,
data traffic volumes have increased
an enormous 8,000% over its cellular
network since 2007, the time when
it signed a deal with Apple to be an
exclusive distributor of the iPhone
in the US.
The problem for mobile network
operators (MNOs) is that overall
revenue growth is slow at best,
despite the growth in data traffic. Not
only are competitive and regulatory
pressures forcing down the price
of data packages, but those twin
pressures are also being exerted on
the price of voice calls, texting and
roaming. Meanwhile, more investment
is required to increase capacity if a
decline in network performance is to
be avoided.
To ease the business model strain,
MNOs will increasingly turn to the cloud
to manage and distribute content and
applications. That is the view of Kirk
Odegaard, vice president of cloud
delivery services at TMNG Global. “By
using cloud infrastructure, through
global and national data centres, the
unit cost of distributing content and
applications can be much lower than
when operators use their own storage
farms,” says Odegaard. “And
by getting content and applications
closer to the customer, bandwidth
bottlenecks can be avoided and
performance improved.”
Like many enterprises, however,
Odegaard says operators are wary
about moving all of their IT resources
into the cloud. Yes to e-mail and other
basic productivity tools, but a wait-
and-see attitude when it comes to
more business-critical and strategic
IT infrastructure, such as billing and
service delivery platforms. “There are
still a lot concerns surrounding security,
cost and performance, as well as
around the capability and experience
of cloud providers,” he says. “A lot
of cloud providers do offer levels of
security that would meet or exceed
the standards required, but there are
perception issues.”
Mr Tian Feng, Senior Director of ZTE’s
Wireless Architecture Department
sees a business imperative for MNOs
to move to the cloud, generating as it
does cost savings in two main ways.
First, MNOs can use the greater
efficiency of cloud computing to
handle traditional applications. And
second, applications “which comply
with the true spirit of cloud computing”
will provide much higher output based
on the same resource requirement.
“MNOs have no choice but to adopt
cloud architecture step by step,”
continues Feng. “The major obstacle
is that the new business model is not
emerging clearly, which make investors
reluctant to give the go signal.”
Odegaard adds that many cloud
providers do not have the skill sets
for managing the application layer,
focused as they are on managing the
infrastructure, such as computer and
storage capability. This may well slow
down the adoption of the cloud by
operators, both mobile and fixed.
One option for operators would be
to build up their own experience of
cloud transitioning and application
management, aided perhaps by
partnerships with specialists, and
then offer that as a service to their
own enterprise customers. “Several
wireline providers we are working with
are starting to build clouds for internal
consumption first, to lower their own
operational costs, before offering it as
an external service,” says Odegaard.
“If they can make the transition and
have the experience of it, then it should
make it easier to help their enterprise
customers to do the same.”
Cloud computing offers mobile network operators a route to
greater operational efficiencies, but they are still cautious
By Ken Wieland
PAGE 10 WWW.TOTALTELE.COM JANUARY 2012
ZTE WINS NEXT-GENERATION MOBILE NETWORK DEAL
Article contributed by:
The TD-LTE Project Reinforces
ZTE’s Leadership in TDD (Time-
Division Duplex)
29 September 2011, Shenzhen, China
– ZTE Corporation (“ZTE”) (H share
stock code: 0763.HK / A share stock
code: 000063.SZ), a publicly-listed
global provider of telecommunications
equipment and network solutions,
and Wireless City Planning(WCP) –a
SOFTBANK Corp.(“SoftBank”)’s Group
Company, one of Japan’s major mobile
operators --today announced that they
have entered into a strategic partnership
to use AXGP -- a technology similar to
TD-LTE -- to build a next-generation
mobile network for WCP in Japan
giving it access to the bulk of Japan’s
population.
According to the agreement, ZTE was
chosen by WCP as its primary strategic
partner for AXGP. This network will reach
99 per cent of ordinance-designated
city’s population. The two companies
will also explore the possibility of
creating a joint lab to develop emerging
technologies, to drive the development
of next generation technologies including
AXGP, and to grow the global reach of
AXGP.
Based on its leading SDR platform,
ZTE provides a stronger base-band
processing capability compared with
other equipment providers. This will
help ZTE achieve its exclusive joint
cell processing technology as well as
interference-eliminating technology.
WCP Director and COO (Chief Operation
Officer) Junichi Miyakawa said: “We
have chosen ZTE, the world’s leading
telecommunications equipment provider,
as our partner to build the world’s largest
TDD network. We hope that ZTE can
maintain its leading innovation capability
in mobile communications technologies
to help us build the best next generation
mobile data network in Japan and even
the entire world.”
ZTE’s EVP Xie Daxiong said: “SoftBank
is a top global operator. We are very
pleased to gain SoftBank’s recognition
of our leading technologies, outstanding
customization and service capabilities,
and our delivery capability in TD-LTE.
By meeting the stringent requirements
of SoftBank, we can also increase our
competitiveness among the major global
operators.”
ZTE is teaming up with China Mobile,
Hutchison Whampoa, KPN and SoftBank
to actively promote the development
of TDD technologies across the globe.
In 2011, Hutchison Whampoa chose
ZTE to deploy the integrated LTE TDD/
FDD commercial network in Sweden --
the largest one in the world prior to the
Japan deal -- to achieve the first major
breakthrough in the overseas market for
ZTE in TD-LTE.
The collaboration with SoftBank
represents another major strategic move
by ZTE to enter the Japanese market
with its leading TDD technologies,
and has again demonstrated ZTE’s
leadership position in the LTE market,
especially in TD-LTE.
ABOUT ZTE
ZTE is a publicly-listed global provider
of telecommunications equipment
and network solutions with the most
comprehensive product range covering
virtually every sector of the wireline,
wireless, service and terminals markets.
The company delivers innovative,
custom-made products and services
to over 500 operators in more than 140
countries, helping them to meet the
changing needs of their customers while
achieving continued revenue growth.
ZTE’s 2010 revenue led the industry
with a 21% increase to USD10.609
billion. ZTE commits 10 percent of its
revenue to research and development
and takes a leading role in a wide range
of international bodies developing
emerging telecoms standards. A
company with sound corporate social
responsibility (CSR) initiatives, ZTE is
a member of the UN Global Compact.
ZTE is China’s only listed telecom
manufacturer, publicly traded on both
the Hong Kong and Shenzhen Stock
Exchanges (H share stock code: 0763.
HK / A share stock code: 000063.SZ).
For more information, please visit www.
zte.com.cn.
ZTE Wins Next-Generation Mobile Network Deal from
Japan’s Wireless City Planning
Now working
seamlessly
together.
Taking a large step forward can be
daunting. This is why we have based our
LTE solutions on mature hardware designs
for SDR centralized platforms – a field in
which we are already leading global
suppliers – and created systems that allow
for truly seamless upgrades and, above all,
super smooth performance. We also
customize everything down to the last
detail and provide superior after-sales
service so that you can be sure of
receiving and relying on a solution that
is a perfect fit for your unique needs.
This way, a huge step doesn’t have to
feel quite so big.
www.zte.com.cn
LTE
PAGE 12 WWW.TOTALTELE.COM JANUARY 2012
Q&A WITH ZTE
What challenges and
opportunities will be brought to
the wireless networks by cloud
computing in the future?
ZTE believes that most users (more than
85%) will access IT world through wireless
technologies (wide range—3G/4G/5G
and short range--WiFi). The smart-phones
and the Pads will dominate most people’s
private and business IT usage.
One of the major reasons is that cloud
computing lowers down the computing
capability of the devices on client side.
Only if the application can run on client’s
devices with little requirements on local
device, device like Smart phone and Pad
can boom. Mobilization is a basic need
for people. A power cable connecting our
device which restrains our mobility is not
preferred. Based on ZTE’s research, cloud
computing can achieve this goal and be
the revolutionary technology to trigger the
BIG transition from desktop/laptop (all PC)
to smart phone and Pad. This transition
we also call it as POST PC era.
From the logic above, we can see how
big the traffic impact will be generated
on our radio network by subscribers.
In conclusion, we can say that only when
cloud computing is booming, all things
above could happen. It’s one of the
major key technologies.
What is ZTE doing in wireless field?
ZTE is one of the world’s few providers
who are capable of providing a wide
range of wireless products and solutions,
including GSM, UMTS, TD, WIMAX,
CDMA and LTE. ZTE is now one of
the leading suppliers in main wireless
standards in the world, offering diversified
options which create greater values
for customers. ZTE are making great
achievement in European & American
market and developing market with large
population. For example, ZTE gained
new cooperation in different standards
with global mainstream operators, such
as France Telecom, TelkomSALtd,
Telefonica, America Movil and Vivo, and
great achievement in Brazil and South
Africa, establishing a firmer foundation
for the future development.
As of the end of 2010, ZTE’s SDR base
station, which is highly recognized by the
operators, had been deployed in more
than 80 operators in over 60 countries
with accumulative volume of shipment
up to 700,000.
ZTE think what kind of products
and solutions in the market are
more competitive?
Operators are facing challenges, such as
longtime coexistence and evolution of a
variety of standards and spectrums for
wireless networks, increased difficulties
in site acquisition and antennae erection,
and problems related to the size of
subscribers, revenues, network load
balancing. On one hand, these challenges
lead to increased complexity and costs
in network building. On the other hand,
operators are more and more concerned
of how to increase network efficiency,
reduce network costs, safeguard return
on investment and avoid being dump
pipe. The integrated solutions offered
by ZTE, such as Uni-RAN, Uni Core and
Uni-backhaul, demonstrate that ZTE is
able to provide E2E network networks
featuring unification, universalism,
convergence and evolution. With a
single platform architecture, unified
SDR base station solutions, RNC/BSC
platform solutions, backhaul solutions
and network management solutions are
provided to meet address the network
convergence of multiple standards and
Mr Tian Feng, Senior Director,
ZTE Wireless Architecture Department
Article contributed by:
PAGE 13 WWW.TOTALTELE.COM JANUARY 2012
Q&A WITH ZTE
spectrums and smooth evolution toward
the next generation technology. They also
help simplify the network architecture
and reduce the TCO in a noteworthy
manner. Oct, ZTE’s Uni-Ran based
LTE-A system with more than 1Gbit/s of
peak downlink speed showed up in the
Expo COMM China 2010. Additional,
in the three consecutive KPI evaluation
of the world’s largest WCDMA network
conducted by China Unicom, as well as
the evaluation of the WCDMA network of
Hong Kong CSL and South Africa CELL
C, ZTE were ranked first.
How is ZTE doing in LTE?
ZTE’s ongoing LTE products cover FDD
LTE and TDD LTE. ZTE Corporation has
set up LTE R&D centers and marketing
research institutes both abroad and
at home, such as Xi’an, Shenzhen,
Shanghai, Nanjing, America, Europe,
etc. with more than 4,000 experts
focusing on the research of wireless
system, core network and terminals.
ZTE Corporation has entered the TD-LTE
field in 2005. ZTE has been continuously
committed to the development of radio
infrastructure, chipset and terminals and
led the TDD industry. Up to now, 8 TD-LTE
R&D centers are set up in U.S., Europe
and China including Shenzhen, Shanghai,
Xi’an and Nanjing, and marketing research
institutes both abroad and at home, such
as Xi’an, Shenzhen, Shanghai, Nanjing,
America, Europe, etc. with a total number
of more than 4,000 experts focusing on
the research of radio wireless system, core
network and terminals. ZTE commits 10
percent of its revenue to R&D and cutting-
edge technologies. ZTE also has a 7%
share of the total LTE essential patents
and leads the industry with the most
independent IPRs.
ZTE LTE-A equipment can achieve
good compatibility with LTE and can
provide higher peak rate, throughput and
spectrum efficiency. At the Mobile World
Congress 2011 in Barcelona Spain ZTE
firstly demonstrate LTE-A CoMP-based
services in the world. ZTE plans to launch
LTE-A commercial products in 2012.
Respectively, how is ZTE doing in
GSM/UMTS/CDMA?
Years of R&D and market application
have developed ZTE into one of the
main GSM/UMTS equipment vendors
around the world. ZTE’s GSM/UMTS
products had been applied in hundreds
of countries and regions and 120
operators by the end of Dec 2010. In
particular, the SDR-based Uni-RAN
solution accelerates the breakthrough
making and market share increase in
global high-end markets. Because of the
outstanding performance of SDR base
stations, ZTE won the world-renowned
consulting company Frost & Sullivan’s
“2010 Best SDR Equipment Vendor
of the Year” award. In June 2011, the
proposal of ‘Smart RAN’ submitted by
ZTE was into InfoVision Award short list
in Broadband World Forum Europe.
CDMA is a traditionally strong area of
ZTE. During 2006 to 2010, ZTE kept
the first position in the shipment volume
of BTSs in the world. By Q2 2011, ZTE
had shipped over 310,000 base stations
accumulatively, has an accumulated
wireless capacity of 300 million lines, and
had been ranked first in global CDMA
market with a global market share of
32.5%. ZTE also has an accumulated
market share of 43.2% of China’s total
CDMA equipment market, putting it
firmly ahead of the other competitors
in CDMA industry. At present, ZTE’s
CDMA products had deployed large-
scale commercial network for over 120
operators in more than 70 countries.
In addition, ZTE had deployed EV-DO
network for over 80 operators in more
than 60 countries including, China, the
United States, India, Indonesia, Czech
Republic etc.
How is ZTE doing in Core
Network?
ZTE is the only provider of core network
solutions supporting all standards in the
industry and kept providing innovative
and optimized core network solutions
and services for wireless access
including GSM/ UMTS/CDMA/TD-
SCDMA/PHS/WiMAX/LTE/WLAN and
wireline access including PSTN/MSAN/
xDSL/xPON/LAN/ intelligent terminal.
ZTE’s softswitch (including IMS) products are
in leading position softswitch Architecture
Magic Quadrant 2010 released by Gartner
showed that ZTE Softswitch products
increased continuously, and currently have
entered the Leaders Quadrant. Global IMS
Market 2010 released by iLocus showed
that ZTE’s IMS ranked TOP 2 in terms of
comprehensive strength.
In the high speed developing era of mobile
Internet, ZTE owns the future-oriented
intelligent platform ETCA (Enhanced
Advanced Telecommunications
Computing Architecture) and high-end
router T8000, which provides solutions of
advanced ZTE Smart Pipe solution (ZSP),
intelligent user data convergence (UDC),
next generation CS&IMS convergence
network and intelligent network O&M,
etc. so as to help operators build a new
core network with high efficiency, high
intelligence and low cost.
Article contributed by:
PAGE 14 WWW.TOTALTELE.COM JANUARY 2012
BUSINESS OPPORTUNITIES IN TD-LTE
ABUNDANT SPECTRUM
RESOURCES
The rapid growth in mobile data traffic has
brought new profits to mobile operators
across the world. Statistics show that
data revenue of Verizon, AT&T, T-Mobile,
Vodafone and other mainstream operators
has increased by an average of 30%.
Therefore, much attention is now being
focused on data and broadband services.
Obtaining more spectrum resources and
increasing spectral efficiency has become
of great importance.
Spectrum resources for Time Division
Duplex (TDD) are abundant. 2.3GHz
and 2.6GHz are the most common TD
spectrum bands for TD-LTE, but most
of these bands are not being used.
TDD spectrum resources are available
in many countries and also available for
many operators. Of the 300 operators
who have TDD spectrum resources,
66% own 2.3GHz and 2.6GHz bands.
In addition to the two bands, recently
many operators also pay attention to the
potential frequency resources such as
1.9G, 2.1G and 3.5G bands
PROMISING MARKET
OPPORTUNITIES
TD-LTE is attracting leading operators
around the world. Many of the top
500 telecom operators own a chunk
of TDD spectrum and are vigorously
pushing forward TD-LTE development.
On February 14, 2011, a Global TD-
LTE Initiative (GTI) was kicked off by 7
operators, including Bharti airtel, China
Mobile, Softbank, Vodafone, Clearwire,
E-plus and Aero2. Till now, 29 members
have joined the GTI organization.
China Mobile owns 2.3GHz and
2.6GHz TDD bands and is leading in the
promotion of TD-LTE. After completing
the fifth phase of its TD-SCDMA network
construction, China Mobile will boast the
world’s largest 3G network with 340,000
TD base stations by the end of 2011.
The operator is expected to call for
bids on the evolution of its TD-SCDMA
networks in the first half of 2012. Its
commercial TD-LTE network is expected
to be deployed in one to two years.
Mainstream European operators
Vodafone, Deutsche Telekom, KPN and
O2 have all acquired TDD spectrum
and are actively researching TD-LTE
technologies and application models.
Deutsche Telekom completed its TD-LTE
trial network in the second half of 2010
and has started testing the network.
Mobile operators in the U.S. including
AT&T, Verizon, and America Mobil have
promised to support TD-LTE. Leading
operators in Japan and Korea have also
played an active role in promoting TD-LTE.
Other operators with WiMAX, PHS (1900-
1920MHz) and TD-SCDMA will also
choose TD-LTE as their migration path.
TDD spectrum is easy to acquire, and there
is less competitive pressure in acquiring it.
The price of TDD spectrum in each country
is much lower than that of FDD spectrum.
Because FDD spectrum is very limited
and expensive, more and more operators
are considering TDD for feature-rich data
services and hotspot area coverage.
Using time division technique, TD-LTE
allows flexible timeslot allocation in the
downlink and uplink, meeting both voice
and asymmetric data needs and greatly
increasing the spectral efficiency. TD-LTE
can share the same core network with
an FDD system and can support flexible
networking. It can serve as an independent
network for hotspots and blind area
coverage or as a supplement to the FDD
system for data services. TD-LTE has
promising and widespread applications.
FAST-GROWING TD-LTE
ECOSYSTEM
Driven by operators, standardization
organizations, equipment vendors and
chipset makers around the world, the
TD-LTE ecosystem is growing rapidly.
Members of the Next Generation Mobile
Networks (NGMN) Alliance include
various operators including China Mobile,
NTT DoCoMo, Vodafone Orange,
T-Mobile and AT&T as well as 29 mobile
network and terminal suppliers including
Ericsson, Nokia, Samsung and ZTE.
These companies are actively promoting
the standardization of TD-LTE. So far,
3GPP R10 specifications have been
completed, and the standardization
progress of TD-LTE has kept pace with
that of LTE FDD. Testing of TD-LTE
technology and networking organized
by the LTE/SAE Trial Initiatives (LSTI) was
first conducted by China Mobile and has
produced favorable results.
The TD-LTE industry chain has been
established and is growing fast. It
comprises chipset providers, terminal
providers, infrastructure equipment
manufacturers and testing instrument
providers.
All main chipset providers launched 3G/
LTE multimode chipsets in 2011. The
development of LTE chipsets drives the
development of terminal products. So far,
the first multi-mode (TD-LTE/LTE FDD/
UMTS/EDGE) USB dongle is already
released, which will further promote the
flexible deployment of TD-LTE.
Equipment manufacturers Ericsson,
Nokia-Siemens, Alcatel-Lucent, ZTE
and Huawei have all developed TD-LTE
series equipment that can be applied in
different scenarios. These products have
been tested in the TD-LTE trials of China
Mobile and overseas operators. At
Article contributed by:
PAGE 15 WWW.TOTALTELE.COM JANUARY 2012
BUSINESS OPPORTUNITIES IN TD-LTE
present, the products support 2.3GHz
and 2.6GHz bands and will support
1.9GHz, 2.1GHz and 3.5GHz bands in
the future.
Test instrument manufacturer Anritsu has
announced its MT8820C will support
TD-LTE radio testing. Rohde & Schwarz
and Anite also provide many types of
testing and measuring equipment.
As the industry chain matures,
commercial TD-LTE is just around the
corner.
ZTE LEADS THE TD-LTE
INDUSTRY
Smooth evolution
ZTE provides a Uni-RAN solution
based on an innovative SDR hardware
platform. The Remote Radio Unit (RRU)
supports 700MHz, DD spectrum,
900MHz, 1800MHz, AWS, 2.1GHz, and
2.6GHz bands. The Base Band Unit
(BBU) supports GSM, UMTS, and LTE
radio modes, allowing rapid network
deployment. The Uni-RAN solution
enables smooth network evolution while
protecting investment to the greatest
possible extent. This helps operators
significantly reduce their TCO.
Large-capacity base stations
ZTE’s single BBU supports up to 18 TD-
LTE cells, each having a bandwidth of
20MHz. The maximum throughput per
cell exceeds 100Mbps in the downlink
and 50Mbps in the uplink. The RRU
adopts dual-carrier design and supports
at most 40MHz bandwidth, and can
provide power output of up to 4×20W.
The RRU also supports multiple modes
for different coverage scenarios. Both
IP over E1 and IP over PE/GE are
supported. Flexible networking and
good scalability helps operators cut their
network construction costs.
Compact and eco-friendly design
ZTE’s distributed BBU+RRU enables
simple and flexible zero-footprint
deployment. The BBU has the smallest
size in the industry and can be mounted
on a wall or in a 19-inch rack to save
space. The RRU is small and lightweight. It
is naturally cooled, silent, and saves power.
Commercialized and customized
terminals
ZTE can provide customers with various
TD-LTE terminals, including USB dongle,
modem, CPE, module, smartphone, tablet
PC, etc. So far, ZTE has released both
TD-LTE terminals and multi-mode (TD-
LTE/LTE FDD/UMTS/EDGE) terminals,
which will help operators to speed up the
progress of commercial launch.
End-to-end full-service solution
ZTE is dedicated to offering TD-LTE products
that meet various deployment scenarios. Its
end-to-end, customized, full-service solution
encompasses services, core networks,
radio systems, and terminals.
Worldwide deployments
With fast growth of the industry chain, TD-
LTE trial networks have been deployed
in China, Japan, India, Russia, Germany,
Ireland, and the U.S. At the same time, ZTE
also has opportunities to help the world-
famous operators to deploy commercial
TD-LTE networks in different countries.
• In March 2011, ZTE and China Mobile
worked together to build the large-scale
TD-LTE in Guangzhou. Though facing
complicated wireless coverage scenarios,
ZTE successfully served GTI and NGMN
held in the first half of 2011 and won high
recognition from the operators present
due to its advanced product solutions and
extensive network construction experience.
• At the end-2010, by virtue of leading
technologies, ZTE and Hi3G jointly built
the world-largest LTE FDD/TDD dual-
mode commercial network in Sweden.
This network is expected to provide up
to 100Mbps data throughput for users.
Hi3G plans to allocate numbers and
run the network at the end of 2011.
• At 2011, ZTE made breakthrough in
Japanese market due to its technologies
and customization capabilities and
became the chief strategic partner
of Japan’s third largest mobile carrier
Softbank. According to the agreement,
ZTE will help Softbank build the national
AXGP network, which will provide
Japanese users with wireless high-speed
data services. This network is expected
to cover 99% of the population.
• In the second half of 2011, the largest
operator in India and the leading
mobile operators in Saudi Arabia
announced that they will work with
ZTE to build TD-LTE 4G networks. The
two projects will help the operators
to further consolidate their leading
position in their mobile broadband
data service market.
CONCLUSION
The abundant spectrum resources,
technical advantages and flexible
networking features of TD-LTE may be
translated into great market opportunities.
As the industry chain matures, TD-LTE
has promising commercial prospects.
ZTE was one of the earliest players in
the TD-LTE field and has an industry-
leading outlook. With its visionary outlook
and years of TDD experience, ZTE is
developing excellent TD-LTE concepts
and solutions. The company is working
together with operators worldwide to
create higher value and to seize upon new
market opportunities.
Article contributed by:
PAGE 16 WWW.TOTALTELE.COM JANUARY 2012
ZTE’S SDR BTS LANDED IN THE WESTERN EUROPEAN MARKET
SONAE is the largest non-financial
enterprise in Portugal. The mobile
branch “Optimus” is a joint venture
telecom operator owned by Portuguese
SONAE Group and France Telecom.
Optimus occupies the second place
in fixed-line and the third place in
Portuguese mobile communication
market. It promotes the construction of
wireless broadband and keeps abreast
of wireless aspects in Portugal and is
ambitious to be the best Portuguese
communication services provider
Optimus’ existing equipment has been
in service for many years and needs to
be upgraded. Providing its customer
with high quality of service, Optimus
has been looking for advanced and
cost-effective solutions. ZTE adopts
industry-leading SDR devices, truly
GSM/UMTS/LTE multi-mode base
station for Optimus to swap the existing
network.
On 22nd, December 2009, ZTE
officially signed GSM/UMTS/LTE
network construction contract with
Optimus by using SDR BTS to swap
existing equipments. ZTE planned to
use 3 months to swap the existing 250
sites and improve current KPIs. The
swap project will be finished by the
end of July, 2010.
Uni-RAN Solution Reducing
CAPEX&OPEX
Comparing with the existing network,
the new solution reduces both CAPEX
and OPEX. ZTE iBSC is designed with
large capacity and rich interfaces,
BSC racks are greatly reduced from 4
to 1 after replaced by ZTE iBSC, and
the network topology is simplified. As
GSM/UMTS/LTE triple-modes can be
supported in one SDR BTS, site space
and power consumption are both
greatly reduced saving lots of OPEX.
Fast Deployment
ZTE offers efficient project management
team and professional project
management process for Optimus to
rapidly deliver the prime-quality network.
Additionally, ZTE also provides highly
experienced international engineering
service to ensure strict and professional
project implementation. Optimus has
very strict rules for swap project. All
the swap projects were required to be
finished in 3 months with high quality.
ZTE used 20 engineering teams to swap
250 sites simultaneously. It took only ten
days for ZTE’s engineering team to put
through the first call, starting from the
very first day of equipment installation.
With high quality products and well
organized project management ZTE
has shown strong capability of project
delivery which was highly appreciated
by Sonaecom.
Smooth Network Evolution
Based on one platform, the SDR BTS
supports GSM/UMTS/LTE multi-mode co-
site, co-transmission, co-management,
co-site installation and co-rack. The
1T2R radio unit offered in solution can
be upgraded to support HSPA+ only by
software upgrade and by adding new
radio unit to realize MIMO function for LTE.
EXCELLENT NETWORK
PERFORMANCE
Sonaecom held a very high expectation
on the network performance
improvement. With solid accumulation
in 2G and 3G radio access network
technologies, profound understanding of
KPI methodologies and self-developed
network optimization tools, ZTE pretty
well lifted the overall KPI of the network,
for 2G network the SDCCH drop rate
is improved from 0.65% to 0.02%, the
TCH block rate is improved from 0.19%
to 0.01% and for 3G network take
HSDPA service drop rate as example, it
reduced from 16.08% to 6.31%.
Article contributed by:
“We chose ZTE Uni RAN solution to cover the central region of Portugal, not only to
upgrade the existing networks, but also to prepare for the future evolution of LTE, staying
ahead of the competition.” Mr José Pinto Correia, CTO of Optimus
PAGE 18 WWW.TOTALTELE.COM JANUARY 2012
HUTCHISON 3G AUSTRIA, PLAYING A MOBILE
BROADBAND MAGIC MUSIC
Austria, the heart of Europe, is
famous for music. In this romantic
country, mobile communication
market is highly developed, with
total 9.6 million mobile users and
120% mobile penetration ratio.
Hutchison 3G Austria, the 4th largest
mobile operator, got 3G license in
2000 and launched the 3G commercial
network in 2003. Facing the fierce
market competition and operating
pressure, Hutchison 3G Austria planned
to upgrade the existing network to
enhance its competitiveness. However,
the obsolete existing network did not
support the smooth upgrade. Finally,
Hutchison 3G Austria decided to swap
the whole network and the ultimate
goal was to build a smoothly evolvable
and profitable mobile broadband
network.
Smooth evolution, playing the
magic of mobile broadband
Mobile internet is obtaining further
development and the smart terminals
are becoming more and more popular,
which contributes to the rapid growth
of mobile data throughput. Mobile
users are placing higher requirements
for better user experience. The future
trend requires new service deployment
and mobile data throughput increase
only by software upgrade or updating
a limited amount of hardware. ZTE Uni
RAN solution realizes a multi-mode
multi-band network and the network
can support HSPA+ as fast
as 21.6Mbps and DC-HSDPA up to
43.2Mbps by software upgrading,
which helps Hutchison 3G Austria to
enter the high-performance mobile
broadband network era in a short time.
Meanwhile Hutchison 3G Austria can
enhance its own brand and market
competitiveness.
When Hutchison 3G Austria deploys
LTE network more than one thousand
LTE sites can share BBU unit in the
SDR base station with UMTS sites. The
investment on device, equipment room,
and other facilities can be substantially
saved. In addition, the performance of
network will be further improved. The
music of mobile broadband network
will be continuously played loudly.
Overall transformation,
customized and cost effective
solution
In March, 2010, ZTE officially signed
the contract with Hutchison 3G Austria
that ZTE would exclusively modernize
the existing network including radio
access network, core network,
microwave transmission, power
equipment and so on.
According to the planning, Hutchison
3G Austria will finish swapping at
least 4,000 sites and 3,000 hops of
microwave and modifying the core
network before the end of 2011. In order
to reduce the cost of the networking
and shorten the construction period,
the existing equipment such as cabinet
and feeder must be reused. Since
equipment from different vendors is
involved, a customized solution is
necessary.
The existing network has two types of
outdoor sites, which are provided by
NSN. Technical experts of ZTE have
proposed three solutions to solve the
cooling problem after a site survey:
adopting the compact equipment to
match the old wind channel design,
modifying the structure of the old
cabinets, and redesigning the wind
channel of the new equipment.
Project group has made a feasibility
research on several solutions including
thermal design simulation, evaluation
of implementation and verification
testing. Finally, they found out the best
solution.
Compared to using old cabinets,
using old feeder is an even tougher
task. ZTE, together with Hutchison
3G Austria, has made a statistics and
classification on more than 10,000
TMAs and corresponding feeder
connectors in the existing network and
made a detailed list of sites. Different
TMAs adopt different cables and
connectors. By this method, TMAs of
the whole network are reused. KPI of
network is also effectively guaranteed.
By using old cabinets and feeders,
the labor cost on the tower is saved
tremendously.
Article contributed by:
“Based on the excellent contribution of ZTE project members and their management we
are fully convinced to make this project a great success and to help us to improve our
network quality on a constant basis.”
Mr Matthias Baldermann, CTO of Hutchison 3G Austria
PAGE 19 WWW.TOTALTELE.COM JANUARY 2012
HUTCHISON 3G AUSTRIA, PLAYING A MOBILE
BROADBAND MAGIC MUSIC
Fast deployment, HUTCHISON 3G
Austria to be the leader of mobile
broadband
Compared to other operators,
Hutchison 3G Austria is facing
stronger market pressure. Hutchison
3G Austria will further enhance the
competition capability by modernizing
the network to provide new services
and reducing operating cost. To swap
1,300 sites is planned to be finished
by the end of 2010 and the whole
network modernization be finished
in 2011. ZTE as the selected vendor
has been closely cooperated with
Hutchison 3G Austria and quickly
implemented the swap of 1,756 hops
of microwave
and 1,336 sites at the end of 2010.
To appreciate the excellent work ZTE
have done, Mr. Matthias Baldermann,
CTO of Hutchison 3G Austria has
send his appreciation letter and best
regards to ZTE local office. He said,
“ZTE team shows us high expertise
and dedication in this area and with
their great support we are looking
forward to finalize all tasks in time.
Based on the excellent contribution
of ZTE project members and their
management we are fully convinced
to make this project a great success
and to help us to improve our network
quality on a constant basis”.
Now, in some area, users can enjoy
high-speed mobile broadband and
multimedia services by HSPA+
network. In 2011, all users of the
network can be served with high-
speed service of 43.2Mbps, or even
higher-speed LTE service of 100Mbps.
Hutchison 3G Austria will start a magic
mobile broadband play in the world’s
theatre.
Article contributed by:
PAGE 20 WWW.TOTALTELE.COM JANUARY 2012
KPN, IMPLEMENTATION OF ‘BACK TO GROWTH’ STRATEGY
About KPN
KPN history can be traced back to
1852 when the Dutch government
constructed telegraph lines. From
1994, the government has gradually
privatized KPN, and finally reduced its
stake to zero in 2006. As of 2004, the
operations of KPN are mainly active in
Dutch, German, Belgian, Spainish and
French telecommunication market.
In the Netherlands, KPN offers fixed
telephone and is the market leader
in mobile phone operations (with
the brands KPN Mobile and Telfort,
also with VMNO brands Simyo, Ay
Yildiz, Ortel Mobile and Hi), Internet
service, and IPTV. Outside of the
Netherlands, KPN operates mobile
phone services as physical operator in
Germany (E-plus) and Belgium (BASE),
and as virtual operator Germany
(BASE, Simyo, Vybemobile and Blau
Mobilfunk), Belgium (Simyo and Ortel
Mobiel), Spain (Simyo and Blau), and
France (Simyo).
Strategy ‘Back to Growth’
In 2008, KPN set its strategy as ‘Back
to Growth’ under such pressures
as regulatory tariff reductions
and shrinking traditional fixed-line
business. Year 2009 saw economic
downturn, and KPN announced All-
IP was moving into its final phase in
2010. KPN’s ambitions on its mobile
international businesses include
investing in network innovation of
E-Plus to outperforming competition
in growing German market, re-igniting
growth in Belgium with broader
business scope, selective expansion in
Spain and France, and striving to be
the ‘Best-in-Class’ operator.
High Speed Data Services Launch
To implement its strategy on mobile
operation in Germany and Belgium,
KPN partnered with ZTE in Q4 2009,
relaunched BASE brand in Q1 2010,
acquired valuable spectrum for high
speed data network and highest
capacity in standardized bands in Q2
2010, commenced accelerated roll-
out of high speed data network in Q2
2010, partnered with low cost Android
smart-phone providers in Q4 2010,
launched high speed data services
in first 9 urban areas (Germany) and
6 urban areas (Belgium) in Q4 2010.
After 2010, KPN will further exploit
mobile data opportunities on regional
basis. Until Q4 2012, 12k HSPA+ sites
will be in place in Germany with speed
of 21.6 Mbps.
Strategic Partnership with ZTE
By 2012, ZTE will swap existing near
6,000 Ericsson and NSN BTSs over
Germany and Belgium. Mr. Thorsten
irks, CEO of E-Plus, commented
on strategic partnership with ZTE:
“ZTE is a challenger in the European
market and as such fits very well with
E-Plus Challenger strategy.” ZTE
proposed solution has the following
advantages:
Easy deployment
Distributed BTS can reduce the
network deployment time. By installing
RRUs near antenna, less feeder loss
and better coverage can be achieved.
BBUs can be inserted into legacy
racks to save the space.
Smooth evolution
The whole network can be seamlessly
upgraded to support MIMO and LTE.
Technical knowledge transfer ZTE
engineering training center in Germany
with systematic training scheme for the
third party will provide onsite support,
training and knowledge transfer to
KPN.
Smaller size
Base Station Size (H*W*D mm)
Ericsson RBS3106/RBS2106 1614*1300*710
NSN 2G outdoor Ultrasite BTS 1940*770*750
ZTE 2G/3G dual mode outdoor BTS BS8900A 1700*600*600
Article contributed by:
PAGE 21 WWW.TOTALTELE.COM JANUARY 2012
ZTE TO DELIVERS WORLD’S FIRST LTE TDD/FDD
DUAL-MODE INFRASTRUCTURE EQUIPMENT TO HI3G
Operator Hi3G plans to build world’s
first LTE TDD/FDD dual-mode network
in Sweden and Denmark to offer
next generation mobile broadband
networks to its customers with data
speeds of up to 100 Mbps or more
Stockholm, 29 March 2011 – ZTE, a leading
global provider of telecommunications
equipment and network solutions, will
deliver LTE infrastructure equipment to
operator Hi3G which plans to build the
world’s first LTE TDD/FDD dual-mode
networks in Sweden and Denmark. As
part of the deal, ZTE will also deliver 3G
infrastructure equipment to upgrade the
operator’s 3G network.
In the deal, the delivered base stations
will be based on ZTE’s Uni-RAN SDR
(Software Defined Radio) technology, which
enables Hi3G to support all viable mobile
standards and frequency bands, housing
both the upgraded 3G network and the two
versions of LTE: TDD and FDD. The SDR
technology also makes it possible for Hi3G
to do future upgrades of its infrastructure
without acquiring new base stations.
Peder Ramel, CEO at Hi3G, said: “We
have chosen ZTE for additional 3G
900/2100 rollout and for LTE mobile
broadband networks in Sweden and
Denmark because of the low cost of
ownership and the possibility to house
three different mobile standards in the
same physical infrastructure. Furthermore,
ZTE advanced LTE dual-mode solutions
and quick consignment responses really
meet our requirements.”
Zhu Jinyun, President of ZTE Europe
and America, commented: “It’s fully
demonstrated that ZTE has a great
capability to provide solutions for end-to-
end multi-mode convergent systems. The
agreement with Hi3G further strengthens
our position in LTE in Western Europe
and will be followed by additional LTE-
infrastructure deals, planned to be
announced shortly.”
ZTE Corporation is a leading supplier in
both the TDD and FDD markets. ZTE has
worked on more than 20 LTE projects in
high-end markets including Spain, the
United States and Hong Kong, working
with established operators such as
Telenor, CSL (under Telstra Group), Etisalat,
SingTel, Commnet Wireless/NTUA, and
China Mobile. ZTE has to date rolled-out
seven LTE commercial networks and over
50 LTE trials in Europe, North America, the
Middle East and Asia Pacific areas.
Thomas Granström, Managing Director
for ZTE in the Nordics, said: “The deal
with Hi3G signals a real breakthrough
for ZTE in the advanced Nordic market,
demonstrating our capabilities in
providing high speed mobile broadband
network infrastructures. The agreement
with Hi3G comes on top of a successful
year, including several handset launches
throughout the region and additional
infrastructure deals with Nordic operators
in foreign markets”
Hi3G builds world’s first LTE TDD/
FDD dual-mode network
Hi3G expects to develop its Swedish and
Danish networks for mobile broadband
during 2011 and introduce LTE
technology with very fast data speeds up
to 100 Mbps for its customers.
Hi3G will exploit its spectrum resources
by rolling out two versions of LTE. The
two versions are usually referred to as
Frequency Division Duplex (FDD) and
Time Division Duplex (TDD). The main
benefit of the TDD version is that it can
make full use of TDD spectrums to
maximize data throughput and enhance
user experience. Hi3G has acquired
50MHz TDD spectrum in Sweden and 25
MHz TDD spectrum in Denmark.
The TDD version of LTE is also used in
other parts of the world, for example
China. The use of TDD LTE by China will
facilitate the world-wide availability of TDD
LTE terminals.
For more information please contact:
Nicholas Rundbom
AxiCom
Tel: 08-545 131 54
Mob: 070-266 55 38
E-mail: [email protected]
Erik Hörnfeldt, Information & PR, 3
Mobile: +46 (0)735-33 74 04
E-mail: [email protected]
About ZTE
ZTE is a leading global provider of
telecommunications equipment and
network solutions. It has the widest and
most complete product range in the world –
covering virtually every sector of the wireline,
wireless, service and terminals markets.
The company delivers innovative, custom-
made products and services to over 500
operators in more than 140 countries,
helping them to achieve continued revenue
growth and to shape the future of the world’s
communications. ZTE commits around
10% of its annual turnover to research
and development and takes a leading
role in a wide range of international bodies
developing emerging telecoms standards.
ZTE leads China’s 3G industry with about
30% share of the total 3G equipment market
in 2008. A company with sound corporate
social responsibility (CSR) initiatives, ZTE is
a member of the UN Global Compact that
strictly adheres to the Ten Principles of the
Global Compact in developing and carrying
out CSR programs. ZTE is China’s only
listed telecoms manufacturer, with shares
publicly traded on both the Hong Kong
and Shenzhen Stock Exchanges (H share
stock code: 0763.HK / A share stock code:
000063.SZ). For more information, please
visit www.zte.com.cn.
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