News Brief ZTE Awarded the “Best Practice Award—2010 Competitive Product for Packet Transport Network Industry ” Accolade By Frost & Sullivan 9 September 2010, Shenzhen — ZTE today announced it has won the prestigious “Best Practice Award— 2010 Competitive Product for Packet Transport Network Industry”. The accolade was awarded to ZTE by Frost & Sullivan, a world leader in growth consulting company. Winning this award is a direct recognition of ZTE’s contribution to the PTN field. This is the second time ZTE has won one of the celebrated “Best Practice Awards” following receipt of the “Best Practice Award—2009 IPTV Equipment Vendor of the Year” in 2009. Based on its research in 2009, Frost & Sullivan believed that with the acceleration of the commercialization of PTN, this market is beginning to take shape. Based on its unique market engineering method, Frost & Sullivan conducted a comprehensive evaluation of the PTN market, organizing an expert panel to evaluate the overall strengths, market share, technical strengths and product advantages of a number of mainstream vendors in the industry including ZTE. With its significant advantages in PTN technologies and commercial deployment, ZTE won the honor. Since starting its PTN standard research and product development in 2004, ZTE has submitted 118 proposals, 164 invention patents and 13 basic patents related to international standards to organizations including IEEE, ITU-T, and IETF. ZTE is a key player driving the development of PTN technologies and industry supply chains. ZTE was the first in the industry to introduce an entire range of PTN products, covering the entire network from the core layer to the access layer. All five of ZTE’s PTN products have powerful networking capability and application support capability, enabling support for the most accurate and refined time synchronization solutions in the industry. The large capacity and low power consumption design can fully meet the green evolution needs of networks as well as their core business needs. As the industry’s first-class PTN solutions provider, ZTE has entered into in-depth partnerships with operators across the globe, with solutions widely adopted in many countries and regions including Finland, The Republic of Montenegro, Brazil, Malaysia, and 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 P7 Building Profitable Bearer Networks P12 ZTE seeks to work with operators to build profitable and evolvable bearer networks through sound solutions, quality equipment, and first-class service A Reconfigurable Gateway for the Coexistence of PTN and MSTP Considering the long-term coexistence of 2G and 3G, the best way to capitalize on existing network infrastructure is to carry 2G voice services over SDH, and 3G and EOS services over PTN P10 Cluster Routers: The Best Choice for Future-Oriented Backbone Networks The reliability, scalability, and energy efficiency of an IP backbone network gives operators a distinct market advantage P14 Promonte Leads with All-IP Transformation The successful implementation of the Promonte project helped the company improve the quality of its mobile bearer network cn Website: www. ShenZhen. Senior Vice President of ZTE Corporation Editorial Board 16 Editor-in-Chief: Jiang Hua Deputy Editor-in-Chief: Huang Xinming Editorial Director: Zhao Lili Executive Editor: Yue Lihua Editor: Paul Sleswick Circulation Manager: Wang Pingping Third Eye Future-Oriented IP Services Boost Operators’ Ability for Service Delivery ZTE is expected to succeed in gaining access to the high-end optical network equipment market with the introduction of ZXONE 8000 20 Subscription / Customer Services Subscription to ZTE TECHNOLOGIES is free of charge Tel: +86-551-5533356 Fax: +86-551-5850139 Email: wang.com. LTE-A can meet or even surpass all IMT-A requirements 21 ZTE Profile ZTE is a leading global provider of telecommunications equipment and network solutions. and Coordinated Multi-Point Tx/Rx (CoMP). wireless. and risk transfer 24 every sector of the wireline.com. relay.R. It has the widest and most complete product range in the world—covering virtually Business Model Analysis of Managed Services Managed services are driven by the transformation of telecom operations in terms of financial targets. News Brief 27 October 2010 ZTE TECHNOLOGIES .zte.pingping@zte. The company delivers innovative. custom-made products and services to over 500 operators in more than 140 countries. management optimization. business performance.cn P21 P24 Editorial Office Address: NO. 55. deployment capability. enhanced MIMO.lihua@zte. Hi-tech Road South. helping them achieve continued revenue growth and shape the future of the world’s communications.Interview Rooted in China: Stepping Forward to World-Class Excellence An interview with Zeng Xuezhong.China Postcode: 518057 Tel: +86-755-26775211 Fax: +86-755-26775217 Email: yue. P.com.cn Research Note LTE-A Leads Future Wireless Communications By introducing key techniques including Carrier Aggregation (CA). service and terminals markets. the 46-year-old telecommunications engineer who took over at the top of ZTE at the end of March 2010.” China Mobile pioneered TD SCDMA. 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. a TDD version of 3G technology that was invented in China. each of the three companies was allocated a different 3G technology: China Unicom got conventional WCDMA. in an exclusive interview with Global Telecoms Business. Shi Lirong. TDD spectrum is valuable “and the TDD spectrum is cheaper”. When Chinese telecoms operators were reorganized in 2008. but. 3G and 4G LTE October 2010 ZTE TECHNOLOGIES 3 . says Shi. Some operators are already deploying the more usual frequency-division duplex version of 3G and then LTE. as used in most of the world. The Chinese government told China Shi Lirong: innovative software-defined radio is a unified platform for 2G. 2010 Source: Leading industry magazine Global Telecoms Business (September/October 2010 issue) T he new president and CEO of ZTE is enthusiastic about the future of 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. he adds. “because of spectrum limitations they are considering TDD spectrum for their data services.Press Clipping Mobile Data Demand Will Expand Market for TDD. Says ZTE Head September 29.” says Shi. The answer. So. with a master’s degree in telecommunication and electronic system engineering a s w e l l a s a m a s t e r ’s d e g r e e i n engineering. Focused on Innovation Is it engineering that excites him.” When the reorganization of China’s telecoms operators was completed in 2008.” he says. which are also TDD: it has. And the attraction of TDD is that it is efficient for data. is to install a single standard of hardware and put the difference in the software. so we hope we can grow more market share. This is a system that allows an operator to hedge its bets on when demand for 3G will start to overtake the need for 2G base stations—and when. SDR is even more flexible than just providing the ability to move through the GSM family of technologies. and we can deliver. according to the company’s results published in August. “More and more people are considering the TDD spectrum. so people are considering TDD for wireless broadband. One result of this investment has been the company’s software-defined radio equipment. it could consider a move to the TDD version of 3G—an intriguing possibility. says Shi. supplied Telefónica with equipment for one of the first WiMAX networks in Spain. if a WiMAX operator wanted to do so. The company makes WiMAX systems. covering 2G. listing South African operator Cell-C. and was increasing by more than 10% a year.5 billion in the six months ending June 30 2010. freeing space for other users. “Our innovation is oriented to market needs and oriented to the needs of our customers. Portugal’s Sonaecom and KPN of the Netherlands. 3G and 4G. and it tripled the number of international patent applications. Profit in the first half was $129 million. as FDD can be very limited and expensive. neatly straddling both.” But he swiftly moves on to his second priority for his leadership of the company: market share. it had taken a long time to sort out. “We are more innovation focused: we can bring propositions to our partner operators. Wang J i a n z h o u . Software-Defined Radio “It’s a unified platform for 2G. ZTE says it ranked number one in patent applications in China. and China Mobile—the biggest operator in the world—was allocated TD SCDMA.” says Shi. “We can even combine CDMA. he notes—on projects such as next generation basestations and network. 3G and 4G LTE. ZTE TECHNOLOGIES October 2010 . “There are lots of new opportunities” with TDD. he says: consistently about 10% of turnover.100 patents overseas. But that meant they all invested heavily and quickly in 3G— and ZTE was a huge beneficiary. The system can dynamically adjust the timeslots for each direction.Press Clipping Telecom to use the Qualcomm version of 3G. according to ZTE. “We can develop lots of innovative products. t o l d G l o b a l Te l e c o m s Business in 2009: TD SCDMA did not have the volume advantages that would drive cost down. ZTE has a patent portfolio of over 30.” About 10% of that R&D spend is on forward-looking research. leaving all three some way to catch up with the rest of the world in 3G operations.” he says. This strategy is the number one priority. “We have very competitive products now. That means that annual spending on R&D is getting close to $1 billion. There was some cost to China Mobile.000 patents in China and 4. “We have a huge R&D investment. “We believe in the future if ZTE wants to lead the telecoms industry.” he says.” says Shi. but there are others. says Shi. it seems. who was in charge of ZTE’s sales and business development operations for 11 years until his promotion earlier this year. in turn. He started out as an engineer. “Currently more and more operators know that ZTE has good technology and good total cost of ownership. operators need more spectrum resources. But the sense of the industry appears to be shifting in favour of TDD. The company can execute on the projects on which it works. as customers around the world start to use mobile broadband at levels few ever expected. Telstra’s mobile business in Hong Kong—conveniently just a few kilometres from ZTE’s headquarters in Shenzhen in southern China—is an enthusiastic user of the vendor’s SDR.” CSL. “We are the first company to develop and deliver this software-defined radio equipment. WiMAX and TD-SCDMA in the same platform. it will need to ramp up 4G services. as the then CEO. “With more data focus and broadband focus. for example.” This is the result of high spending on research and development. he says. a rise of 12% year on year. Revenue was $4. says Shi. In 2009. which tends to flow unequally upstream and downstream. or the prospects of sales for ZTE? Both.” he says.” smiles Shi. including what it says are “essential patents” in LTE and UMTS. as we follow Hong Kong regulations.” he says. Best on what basis? “For example . But ZTE claims to have won the five-way battle in terms of market share. It is competing in China with all four of its international rivals: Huawei is Chinese.” Around 21% of ZTE’s shares are foreign owned. Russia. 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. I think ZTE can provide this.” 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”.” says Shi. South Africa. China Unicom calculates factors such as power consumption and so on.” says Shi. a Chinese online trading company. he adds. and in 2010 the company appointed an American as an independent board member. “So we will get more chances in the second phase and the third phase. he adds. “In Asia Pacific our market share is high. Alcatel-Lucent has its own Chinese subsidiary. “Everything is very strict.” says Shi. “We are a listed company. Nigeria— we will get higher market share. People are asking what will be next after Apple.” In the developed world. and no doubt helped with volume efficiencies worldwide. This is Timothy Seifert. with shares quoted on two stock exchanges.” he says. not only in Shenzhen but also in the Hong Kong region. “The three operators all assessed the network quality and ZTE’s performance is the best with the three operators. Shanghai Bell. And he has his eye on other parts of the world: “I hope in the near future in big countries— Brazil. mainly because ZTE is more competitive in technology and total cost of ownership. and both Ericsson and Nokia Siemens Networks have a significant presence in China. a former Freshfields lawyer who is general counsel of Alibaba. ZTE has had a number of successes.Volume Advantage The smartphone is still priced too highly. Politics possibly plays a part. “There are five vendors and all five vendors compete. Both ZTE and its Chinese rival Huawei— and they are fierce rivals—have had political opposition in the US. It’s more transparent and more regulated. “In Europe and North America there is big potential. but Shi is quick to respond that ZTE is a public company. “We got the number one market position in Chinese 3G.” That’s given ZTE a good market share in its homeland. “We are quite confident that ZTE is a very different Chinese October 2010 ZTE TECHNOLOGIES .” Shi accepts. Our thinking has also changed—that’s very important.” ZTE TECHNOLOGIES October 2010 . “When you provide the equipment and the technical solution.” The company has “2. build and operate part of that Canadian contract is intriguing too. Vodafone. but “sometimes we can provide a package if the operator needs it”. “We don’t announce very much about it. was funded by the Export-Import Bank of China. green technology.000 people providing managed services in different countries over the last three or four years”. we hope we can get into tier one operators. the value of dedication to the development of the communications industry”. Bharti. “Globally we have 400-500 videoconference terminals. with more and more networks. sometimes we provide a package of financial facilities. ZTE has to “reorganize our structure to be more flat and more effective”. to design. along with the existing operational staff”.” A financial package is not standard.” Shi lists MTS in India—the joint venture between Shyam of India and Sistema of Russia—as well as another Indian company.” He means internal cost saving. but “that was the right strategy”. That’s very important. Next step.” he says. ZTE doesn’t completely avoid small companies. “We employ some very professional people. says Shi. France Telecom. solar powered handsets and green technology for our customers”. he notes. Management Efficiency Meanwhile.” says Shi. products. “We need to bring ZTE propositions to the operators. Public Mobile. ZTE is as focused as most other vendors on trimming costs. Idea Cellular. he says: “Cost saving is also very important. says Shi. “The smartphone is still priced too highly. to the people. There are many operators fighting for market share in India.” he notes—though a more formal corporate slogan is “bringing you closer”. That means he will be setting “clear goals” for different departments in the company. service. “Our strategy is focused on the big countries and the big operators. We have lots of different financial partners—Chinese and European banks.” The design. “The ZTE corporate motto is ‘step by step’. he continues. but some we take over.” Tier One Customers Tier one is the clear goal. and Cell-C in South Africa as managed services customers. “Now the main operators are choosing ZTE for the devices. “We have delivered handsets to Verizon. the company’s global vision and insight. It was two years’ hard work. he added. where we have built the network. I think ZTE can provide this. In June 2010 the company signed a deal with a small Canadian start-up operator.” says Shi. multinational operators like MTN. “This can bring value for operators. he notes. Customers “also have their own channels” for finance and “they evaluate the financial costs”. “We are more focused on those operators.” he says. “China has also changed. build and operate an end-to-end CDMA network which includes wireless. to the community.” In the longer term ZTE’s ambition is “to provide an affordable smartphone”. With R&D. service platforms and IP architecture. which appears to have paid off. like ZTE has changed from a small company to a big company. Z T E ’s c o n t r a c t s a r e “ m a i n l y greenfield. he notes. and assessing their performance. He wants to save money on travel by making more use of IT and telecoms. Managed services are “a very important strategy for ZTE”. So in the US. but “if we can provide this we like to do so. “in India we are very careful because there will be consolidation”.” he adds.” Where next? The “bringing you closer” slogan Shi mentioned earlier is intended to reflect ZTE’s “corporate high concern for humanity. core network.000 base stations for the network. Top issues include “corporate social responsibility. he adds. we hope we can contribute to the community. though. We don’t need to travel.Press Clipping company. “We have some successful middle and small operators. It has started its approach in the US with handsets and terminals.” The company is “very careful” when dealing with smaller operators— and. said at the time to be worth $350 million. It’s an option for our operators. ZTE will also deploy over 1. People are asking what will be next after Apple.” He adds: “We are a listed company and we have very strict regulations on risk control.” But meanwhile the next step in the step by step approach to the US market is “to approach the networks”. The company wants “to optimize our internal management”. That deal. says Shi. technology. That’s very important. carbon reduction. ZTE has started slowly.” adds Shi. “We believe we can see a very high potential in this area. by optimizing its structure. but we have already provided services in many countries. Internet of Things. In the face of growing competition. Low TCO. expansibility. realize efficient and reliable transfer of packet services. and sustainable development are particularly important in network construction. These are the considerations when constructing a bearer network. and Cloud Computing become prominent. and reliability. network operators must reduce bit cost. improve user satisfaction with broadband services. QoS. high benefits. October 2010 ZTE TECHNOLOGIES . bearer networks will need to be capable of high bandwidth. With this in mind. ZTE foresees seven development trends for bearer networks. create new services and rapidly deploy them. and construct low-cost TCO bearer networks to recover costs.Focus Building Profitable Bearer Networks By Han Lijin and Chen Jianye A s networks converge and mobile Internet. Service expansion has mostly been driven by wireless Internet services and fixed video services. Broadband Market competition. the improved capacity of optical transmission equipment. Optimized operation and management Optimized operation and intelligent management improves network profitability. centralized performance monitoring. BRAS and xGW (SR+BRAS+xGW) in a full-service environment. and as a result. bandwidth demands for fixed and wireless networks have grown rapidly. and mobile networks are also evolving to all-IP. The company senses the pulse of full service operation. and accurate fault locating. and power supplies—are lowered. and the network core must adopt a packet design to utilize bandwidth efficiently and to better support various packet characteristics. Generalized Multi-Protocol Label Switching (GMPLS) technology with converged data and optical transmission is the development direction (because network resource use and distribution is optimized). Service gateway convergence implies the convergence of Service Router and Broadband Remote Access Router (SR+BRAS) in a fixed-line environment. Optimized operation aims at offering differentiated services through service segmentation and real- 8 ZTE TECHNOLOGIES October 2010 . Development Trends of Bearer Networks Development trends in bearer networks include flat structure. and technological advancement drive the development of broadband bearer networks. in the backbone control layer. service expansion. A flat network structure also reduces the risk of network failure so that user satisfaction is guaranteed. and investment in machine rooms. converged control layer. Bearer networks with higher bandwidth therefore need to be constructed for operators to become much more competitive. In the backbone forwarding layer. and to coincide with the focal points of operators constructing networks. converged IP and optical transport layer technology is the development direction. convergence.Focus ZTE adopts the latest technical standards to accommodate the seven development trends of bearer networks. packet transport networks with packet interfaces and packet cores are inevitable. Traditional fixed telephony is evolving to VoIP. This effectively cuts down network TCO. and energy efficiency. and is dedicated to providing end-to-end network solutions. Convergence A converged network comprises unified backbone network technology a n d c o n v e rg e d s e r v i c e g a t e w a y. Operators agree that bearer networks must have high bandwidth. Flat structure Flat network structure implies a s i m p l i f i e d n e t w o r k h i e r a r c h y. evolution towards IPv6. With the trend toward packet services. and the rapid development of broadband access technology. broadband. optimized operation and management. The packet interfaces must support not only traditional E1/STM-N interfaces but also FE/ GE/10GE/40GE/100G interfaces. and unified OAM. Technological advancement depends on the progress of microelectronic technology. and helps in situations where profits are falling or growth in the user base has slowed. Construction costs—including costs for transfer interfaces between equipment layers. and convergence of SR. as are maintenance costs. Packet transport A broad technical consensus has been reached that telecom services should be IP based. packet transport. Intelligent management involves using a unified network management system for rapid service deployment. transport. The era of widespread commercial use of IPv6 is fast approaching. emissions reduction. IPv6 is also used for smooth evolution to NGN. In terms of network operation and management. Evolution towards IPv6 As the Internet expands and demand for IP addresses by new services such as the Internet of Things grows. and IPv6 network equipment is now coming into commercial use. time network resource control so that quality value-added services can be provided.8261 high-precision clock synchronization and MPLSTP technologies to create a packet transport network. ZTE seeks to work with operators to build profitable and evolvable bearer networks through sound solutions. Energy efficiency Energy conservation. and strengthens commercial competitiveness. and first-class service. cuts costs for the operator. An address bottleneck will therefore ensue. ZTE’s end-to-end bearer network solution. quality equipment. In the service control layer.Access Telecom Plane VIP RNC MAN PE BMSG CDN CDN P Backbone P Service DHCP/ BSS/ DNS NMS AAA OSS OAM ISPB IGW CTN6000 Base station PTN CTN9000 T1200/M6000 ZXR10 5900 SW/OLT SW/OLT CR/P ISPA ZXR10 T8000 MAN PE Internet MGCF/IM-MGW SBC CSCF IMS HG SW/ONU ZXR10 T8000 ZXR10 8900 ZXMP M720 OTN ASBR ASBR FTTB/C Public Plane IPTV OTN OTN/WDM ZXMP M820 ZXONE 8000 ZXMP M920 ZXONE 8000 IDC GGSN Figure 1. As shown in Figure 1. the communications industry recognizes that environmental awareness must be a core value. a flat broadband network is constructed using ZXWM M920 (40G/100G high-capacity OTN equipment) and ZXR10 T8000 (high-end cluster router support 16+64 chassis cascade). and environmental protection have become strategic goals of most countries around the world. CTN9000/6000 is deployed in the access and aggregation layers of telecom plane—which adopts 1588v2/G. the NetNumen platform is used for quick end-to-end service deployment. The IPv6 industrial chain is nearing perfection after several years’ development. This protects the environment. A Profitable End-to-End Network Solution ZTE adopts the latest technical standards to accommodate the seven development trends of bearer networks. and GMPLS technology is used for convergence of support networks in the control plane of the bearer network. In the MAN backbone layer. and to coincide with the focal points of operators constructing networks. With such high energy consumption. and the need to introduce IPv6 is pressing. October 2010 ZTE TECHNOLOGIES 9 . ZTE’s end-to-end bearer network is the solution to building a profitable network. the number of available IPv4 addresses is rapidly decreasing. ZXMP M720 (OTN equipment) should also be deployed in the MAN layer to save fiber resources. ZXR10 8900 carrierclass series switches are employed in the aggregation layer of public plane to realize convergence. Domestic and international operators have set targets for energy saving and emissions reduction. an advanced converged gateway M6000/T1200 improves reliability of the network by introducing highly reliable backup technology. but also the entire Internet. investors will not be able to transform their existing commercial networks to suit their business growth. highly reliable. Such requirements are part of the growth of a network. intelligent service control capabilities. data within the backbone network becomes more c o m p l e x .5Gbps to 10Gbps. Bearer networks are converged at all layers. Backbone networks must therefore have excellent scalability to counter the skyrocketing amount of data. ■ Scalability and growth The IP backbone network is a scalable network. As the growth of IP services continues to boom. and provide more flexible. a pillar of the Internet. The stability of operator backbone networks not only influences the networks and services run by operators themselves. Therefore. And the IP backbone network. By rapidly responding to market 10 ZTE TECHNOLOGIES October 2010 . the growth of traffic carried over the IP backbone network is expected to accelerate rapidly. is now required to bear an increasing amount of data traffic. and the IP backbone network is the starting point on the path to convergence. With the rise of mobile broadband access. almost all services are based on TCP/IP. 40Gbps and even 100Gbps. which in turn will impact service support and network maintenance. and capable of automated troubleshooting and recovery in the event of sudden abnormality. Nodes should guarantee reliable continuation of services under a non-optimal network structure. The Internet has developed from a simple data carrier to a central part of the information infrastructure of whole societies. and new network services. IP backbone networks must be self-healing. even a small failure can result in multi-million dollar losses. and in full accordance with an ideal network structure plan. Today. If scalability is not addressed. Changes in the Internet have proceeded rapidly and have gone well beyond what could have been imagined.Focus Cluster Routers: By Zhu Haidong The Best Choice for Future-Oriented Backbone Networks I t took only ten years to increase the interface rate of a router from 2. Internet traffic doubles every 12 months. a n d P 2 P traffic places greater demands on the scalability and reliability of the network. Vo D . I P T V. and all applications can be provided on a uniform network. ■ Reliability and self-healing To d a y ’s I n t e r n e t c o m p r i s e s a countless number of operator nodes. Additional nodes will add complexity to a clear and neat network. Such networks must also guarantee availability under normal operation. with IP traffic growing exponentially. video and interactive services. ■ Full-service bearer The IP backbone network is also a converged network that bears many kinds of services. Considering the vast ocean of data exchanged over the Internet in real time. independent component process space. and energy efficiency of such a network gives operators a distinct market advantage. ZXR10 T8000 adopts distributed processing. smart line-card startup. and In-Service Component Upgrade (ISCU) technologies for dynamic loading of functions. ZTE can provide a total IP network solution with well-defined architecture. ZXR10 T8000 also assures reliability at five levels—system architecture. thereby meeting the needs of operators. ZTE has introduced the ZXR10 T8000 carrier-class router which is designed to meet current and future service needs. ■ Energy conservation By applying energy-saving technologies such as smart power supply. the ZXR10 T8000 line card provides a 100Gbps wirespeed port at each slot that supports smooth upgrade to 400Gbps. routing filtering. ZTE’s IP network solution. into a cluster. equipment components. and security assurance. hot patching. Using differentiated kernel and user mode. Its ZXROS system is a modular multiprocess system. and egress of a large MAN. and full distributed processing. operating system. ZXR10 T8000 is an ideal choice for operators aiming to build a flat network and looking toward the long term evolution of their uniform bearer network. It applies Non Stop Routing (NSR). differentiated SLA. changing the network structure with distributed network layers where multiple devices are deployed in one node. and has built its own chip system that provides for continuous evolution of equipment and technology. Clustering is a cheaper way of meeting demands of service growth. Backed by a full product range. as shown in Figure 1.999% availability. smart dormancy process. The switching capacity can reach up to 200Tbps. backbone network super node. protocol processing. An IP backbone network employing ZXR10 carrier-class routers provides independent service access layers. Using active/standby switching of inter-frame logical entities. ZTE has made breakthroughs in top-class router chipsets. scalability.demands. ■ Ultra-large capacity cluster Scalability of an IP backbone network can be improved by increasing the capacity of a single device. After years of research and development. and drawing on years of network construction experience. ZXR10 T8000 provides technical assurance in three aspects. It supports 16+64 chassis cascade. ZXR10 T8000 is energy efficient and consumes 23% less power. ■ Multi-level assurance To ensure the backbone network is reliable. The reliability. it enables the operating system to be open and reliable. and message flows—to ensure steady operation with 99. For the numerous routing table entries and complicated forwarding relations in a backbone network. a single router and a cluster of routers can be expanded smoothly without causing interruption to running services. and smart fan control. and placing multiple routers NOC 2G/3G Backbone IPTV IMS NGN EPC Metro ISP Peer IDC Figure 1. and protection mechanisms to rapidly screen failed nodes. This eliminates routing instability and maintains stable forwarding relations between the nodes. and is suitable as the Internet core node. ZXR10 T8000 supports multi-chassis cascade and linear capacity expansion. ■ Independent intellectual property rights ZTE owns independent intellectual property rights for ZXR10 T8000. At present. and capacity expansion without creating additional network complexity. smart service adjustment. and paves the way for multiservice bearing and control. October 2010 ZTE TECHNOLOGIES 11 . network performance. To make full use of bandwidth resource in MSTP and to address the above networking issue. but rather through the original 10G/2. substantial bandwidth is consumed. 2G BTSs must be built or EOS services swapped from SDH to PTN. Because MSTP and PTN belong to two separate rings—PTN access ring and MSTP convergence ring—they perform intra-domain traffic scheduling respectively. a next generation Packet Transport Network (PTN) technology is necessary for operators to reduce TCO and enhance the competitiveness of their mobile broadband networks. As a result. services sent from BTS to BSC may not be transmitted through equipment at the PTN core layer. more SDH bandwidth resource would be available for 2G services. E1 to VC12 end-to-end traffic is configured for PTN.Focus A Reconfigurable Gateway for the Coexistence of PTN and MSTP By Zhao Yue Challenges for Operators A s 3G mobile services develop a n d d e p l o y m e n t o f LT E networks rapidly approaches. Because EOS services are transported over SDH. Considering the long-term coexistence of 2G and 3G. To accommodate the expansion of 2G services. the most simple way to capitalize on existing network infrastructure is to carry 2G voice services over SDH. which is more suitable for data service bearing. If these services are swapped to PTN. PTN and MSTP hybrid networking. The following issues must be considered: ■ How to enable cross-domain traffic transfer between BTS and BSC ■ How to provide cross-domain endto-end (BTS to BSC) protection ■ How to realize cross-domain NMS interconnection between PTN and MSTP ■ How to convert OAM information between PTN and MSTP Non End-to-End Interconnection Solution PTN and SDH implement pseudowire decapsulation through the STM-1 or STM-4 interface and the original E1 signals are recovered for transmission. 12 ZTE TECHNOLOGIES October 2010 . and 3G and EOS services over PTN. while VC12 to VC12 end-to-end traffic is PTN MSTP BSC RNC Optical Interconnection Original MSTP Convergence Ring PTN Convergence Ring New PTN Convergence Ring New NodeB Original MSTP Access Ring Original PTN Access Ring New PTN Access Ring BTS NodeB NodeB NodeB NodeB New BTS New BTS Figure 1. smooth evolution from SDH to PTN is a key issue that needs addressing. a PTN and MSTP hybrid networking solution (see Figure 1) is a good solution. Since conventional SDH networks will coexist with IPbased networks for some time to come.5G MSTP at the core layer. there may not be any idle STM-1 interface at the BSC side for connection with PTN. When PTN is used to bear services at the new BTS side. Traffic from BTS to BSC is configured separately for network management. It can be easily deployed with no change to MSTP topology and without impacting existing traffic. the solution has high risks in network topology. The reconfigurable gateway solution meets customer requirements for high performance. rich OAM functions. where bandwidth is scarce. PTN MSTP BTS RNC PTN Access/ Convergence Ring N×STM-1/4 MSTP Convergence/ Core Ring BSC NodeB Figure 2. and convenient end-to-end management. which allowed the transfer of both 2G and 3G services. low cost. and end-to-end OAM of network devices of different vendors. MSTP was first deployed at the convergence layer where there is redundant bandwidth. ZTE’s reconfigurable gateway solution has advantages over a traditional tunnel solution: ■ Low cost and easy deployment: The reconfigurable SDH gateway has ■ ■ ■ low-cost hardware that meets high technical requirements. In this way. traffic encapsulation overhead is saved and bandwidth utilization is increased. End-to-end OAM: A reconfigurable SDH gateway makes it possible to convert PW alarms in the PTN domain into VC12 alarms in the MSTP domain. A n y network failure entails layer-by-layer troubleshooting. After PTN simulation.STM-1 N×E1 BTS N×E1 FE NodeB OAM Interworking / Synchronization Information Exchange / Coordinating Protection Unified NMS PTN MSTP FE/GE RNC BSC Active LSP Standby LSP Figure 3. At the access layer. Reconfigurable gateway solution. or NMS interconnection b e t w e e n P T N a n d M S T P. The solution provides unified NMS. service and OAM information conversion. the solution fails to provide end-to-end protection. and clock synchronization. and this may lead to service discontinuity between BTS and BSC. endto-end OAM. SDH bandwidth resources are saved for bearing 2G voice services. and low power consumption. and finally to BSC. This affects rapid fault locating. However. then to MSTP through the STM-1/4 SDH interfaces. The MSTP and PTN rings are independently protected. This helps implement end-to-end alarm management. These help operators integrate existing resources and realize smooth evolution of networks (see Figure 3). It supports easy and flexible deployment in the newlybuilt PTN without impacting existing services. ■ Cross-domain NMS interconnection: The interworking of Data Communication Network (DCN)—PTN’s NMS—and Data Communication Channel (DCC) of MSTP allows fast fault locating and recovery.configured for MSTP. and this helps operators protect their investments in SDH. a new PTN has to be built. end-to-end protection. A non end-to-end interconnection solution (see Figure 2) is easy to implement and deploy on the existing network. In China Mobile’s 2G/3G backhaul network. Because EOS services are smoothly swapped to PTN. Single node failure may occur between the PTN access ring and MSTP convergence ring. Packet Access Domain MSTP Convergence Domain SDH Gateway Card C. ZTE supplied a reconfigurable SDH gateway for MSTP and PTN hybrid networking. To protect China Mobile’s initial investment. and vice versa. No alteration to existing PTN and MSTP is necessary. October 2010 ZTE TECHNOLOGIES 13 . which are first transferred to PTN gateway nodes. Reconfigurable Gateway Solution ZTE has launched a reconfigurable gateway solution for interworking between a newly-built PTN and existing MSTP. recovery. End-to-end protection: End-to-end protection can be realized through SDH protection and PTN protection as well as interoperability of PW 1+1 protection and MSTP VC-12/VCG 1+1 protection. and provides reliable end-toend protection. Moreover. fast troubleshooting. and QoS. TDM traffic is converted into E1 signals. Cross-domain traffic transfer: PTN supports a reconfigurable SDH gateway. Non-end-to-end interconnection. After a vigorous selection process by Telenor and Promonte. With its picturesque coast and a mountainous northern region. IPTN can carry packet services efficiently. improving user satisfaction. Issues such as utilizing and boosting bearing efficiency. A number of E1 and STM-1 services. its mobile market has grown rapidly so that mobile penetration now exceeds 200%. required careful consideration to ensure long-term evolution of mobile network and to build an outstanding bearer network. is Montenegro’s largest mobile operator. Promonte is 100% owned by Telenor and its mobile subscriptions account for 50% of the population.Focus Promonte Leads with By Li Lei All-IP Transformation We are very happy to establish this new partnership with ZTE and together build a future-proof network which will benefit both Promonte’s customers and the environment. ZTE supplied high performance IP Transport Network (IPTN) products for construction of the bearer network. The Telenor Group. With packet-based kernel. Promonte’s networks were costly to maintain and did not support smooth upgrade to LTE. is the sixth largest provider of telecommunications services worldwide. and microwave is the dominant technology for wireless base stations. —Christopher Laska. Montenegro is a mountainous country. Because Promonte holds ZTE’s IPTN products and solutions in high regard. as well as services from 14 ZTE TECHNOLOGIES October 2010 . ZTE’s new generation SDR base stations were installed to replace the original ones. fast provision of new services. Promonte. ■ One network to enable multi-service access: New base stations are all IP based. ZTE was chosen as the sole vendor for the upgrade of the 2G/3G network (with some sites being upgraded to LTE in 2013). As Montenego’s tourism industry has developed. Promonte CEO M ontenegro is located in southeastern Europe and has a coast on the Adriatic Sea. This represented an evolution of mobile services from TDM to allIP. so the company decided to upgrade its existing network to grow and consolidate its market share. and its subsidiary. and managing CAPEX and OPEX. the country is a popular tourist destination. headquartered in Norway. ZTE was chosen above all others to build the bearer network. and a plan was made to deliver LTE services by 2013. ZTE engineering staff braved the bitter cold to complete the installation and commissioning of the transmission equipment earlier than agreed. All items passed an acceptance test on the first attempt. As the infrastructure network. Many stations were located in the mountains where the terrain was difficult and the roads were icy during winter. It can now deliver muchimproved services to attract more customers. the mobile bearer network had higher requirements. ZTE needed to complete installation and commissioning of transmission equipment at all nodes and ensure they passed acceptance tests within three months. and protection schemes such as PW dualhoming and tunnel protection. IPTN has a perfect QoS mechanism and can deliver differentiated services based on service class. ZTE provided a complete IPTN solution to cope with this situation. while ensuring network security through node redundancy. ■ ■ ■ Reliability is the basis of network: IPTN features robust reliability. and this gave a strong indication of success in subsequent service swap. resulting in a higher utilization rate for microwave link. and is capable of smooth evolution to LTE. Prior to service swap. the maximum bandwidth of its three national backbone rings was only 600MB. drive service growth. Montenegro is well on the road to an all-IP era. This involved collocation of nearly 300 2G/3G base stations and core network equipment. High reliability. Some stations on the mountaintop were only accessible by helicopter. October 2010 ZTE TECHNOLOGIES 15 . IPTN can provide an IP-based networking mode and implement bandwidth multiplexing on the link. are still carried by the existing network. IP RAN was used for access and aggregation layers.■ other networks. and consolidate its leading position in Montenegro’s mobile communications market. Despite installation challenges caused by the environment. The successful implementation of the Promonte project helped the company improve the quality of its mobile bearer network. ZTE’s swift response was greatly appreciated by Promonte. Smooth evolution to LTE: IPTN supports bearer technologies such as IP RAN and Metro-E. ZXCTN 9008 served as a PE node of the MPLS network for access to all services from RAN and the core side. Fast delivery: To guarantee network stability prior to the tourist season in summer. Delivery of high-quality services in tourist season: Because Promonte employed microwave technology to build the original network. a complete OAM mechanism. and universal board design allow equipment to operate normally even in severe weather. Promonte required network swap to be completed before April 2009. to carry both Ethernet and TDM services. This satisfies the requirement for highquality service delivery during the tourist season. redundant critical board. which provide end-to-end and hierarchical protection from service layer to link layer. and Vice President of ZTE. including more than 10 in managerial positions. and with an EMBA in 2007. Between 1997 and 2006. China Unicom (WCDMA). and China Telecom (CDMA). ZTE is not only a key participant in China’s 3G network construction. and for the first time. Senior Vice President of ZTE Corporation. Journalist: 2009 saw the birth of 3G in China. 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. he acted as Senior Project Manager.Interview Rooted in China: Stepping Forward to World-Class Excellence By Zhao Lili An interview with Zeng Xuezhong. and the country’s three major operators have been involved in 3G network deployment and operation ever since. Manager of Guiyang and Kunming Branches. to be held in Beijing this October. 16 ZTE TECHNOLOGIES October 2010 . Deputy General Manager and General Manager of the Second Sales Division. and topics such as TD/LTE/4G evolution. This marked the formal entry of China into the 3G era. journalist Zhao Lili interviewed Zeng Xuezhong. he has been Senior Vice President of ZTE overseeing the Third Sales Division. green telecom. Assistant to the Regional General Manager. Zeng joined Zhongxingxin in 1996. He graduated from Tsinghua University with a bachelor’s degree in engineering in 1996. Senior Vice President of ZTE Corporation P &T/EXPO COMM CHINA 2010. will be the most influential ICT event this year. Since August 2006. Zeng has many years experience in the telecom industry. In the lead up to the event. China’s Ministry of Industry and Information Technology issued 3G licenses to China Mobile (TDSCDMA). The theme of the EXPO is tri-network convergence. to find out how ZTE is working with Chinese operators to develop a new industrial chain in a new industrial environment. Mr. Mr. but also an advocate for 3G Zeng Xuezhong has been Senior Vice President of ZTE since 2006. placed Chinese telecom vendors on an even footing with foreign competitors. and Internet of Things will be discussed. In the TD-SCDMA sector. and mobile TV. and what challenges and opportunities will this present to equipment vendors? Zeng: In January 2010. but the opportunities are greater than the challenges. as telecom operators transform into service providers.industry development and technological innovation. For equipment vendors. which covered 20 provinces and 108 cities. and undertook most of its 3G network planning. ZTE offers sophisticated services for TD-SCDMA. ZTE has been a strategic partner of China Mobile throughout its TD network construction—from the phase one and two network trials in 2007 and 2008 to the large-scale phase three commercialization in 2009. with the current bandwidth restrictions for broadband services. Chinese telecom vendors are certainly capable of competing with global telecom giants. More importantly. The largest share was clinched in phase four of the project. and some are even initiating the process. Likewise. and WCDMA. because cable networks are incapable of bidirectional transmission.700 LTE patents. and is continually increasing its strategic funding in both FDD and TDD. mobile monitoring. and Internet networks. Tri-network convergence will change the competition pattern of China’s telecommunications industry. CATV operators will be compelled to restructure their networks as digital two-way systems. What changes will happen in China’s telecom industry. ZTE became the leader in fast project completion. J: The theme of P&T/EXPO COMM CHINA 2010 is tri-network convergence. ZTE’s market share increased during phase two. industrialization. Changes brought about by trinetwork convergence will present opportunities and challenges for equipment vendors. network tests were passed with excellent results. Demand for triple play services will g r o w. and Internet businesses in China. We are highly recognized by operators for our innovation mechanism. and phase four of China Unicom’s WCDMA project. and the Chinese government has put in place support policies to speed up this process. ZTE is devoted to LTE research and development. ZTE is ranked among the Top 3 players in terms of LTE strength by research firm Garnet. Leveraging its implementation efficiency and service capability. Moreover. ZTE has also become the industry leader in CDMA. telecom operators will be compelled to increase network access bandwidth and to widely deploy FTTH networks. Both telecom and CATV operators will have to innovate and explore new areas of business to gain a competitive advantage. Infrastructure equipment vendors. All this demonstrates ZTE’s comprehensive strength in the WCDMA field. Operators worldwide are closely monitoring the evolution of 3G to LTE. Moreover. and own basic patents of the LTE standard. These new operators will have diversified business models and will challenge traditional operators with their control over TV content and broadcasting rights. broadcast TV. This proposal will alter the whole industry. network deployment. With a quality product portfolio and a growth strategy that is prudent and sustainable. phase three. long-term strategies. will be widely sought after. high definition video. ZTE has played a key role in China Mobile’s technical innovation. holding the largest market share in China since 2007. and enhanced brand image. broadcast TV. a n d e m e rg i n g m u l t i m e d i a services such as position shift TV (PSTV). and maintenance. and ZTE infrastructure equipment has now been deployed in 27 provinces throughout the country. and service delivery. ZTE holds the largest share in China’s 3G market. The group of three major operators in China will expand to include CATV operators. interactive TV. the State Council passed a general proposal for speeding up the convergence of telecommunications. working with operators to develop the whole industrial chain. We have applied for more than 1. service equipment October 2010 ZTE TECHNOLOGIES 17 . The entire industrial chain will be reshuffled. ZTE has also been a key supplier to China Unicom since the company started WCDMA network deployment in 2009. and this will create new market and cooperative opportunities. but also presenting opportunities and challenges to all parties in the industrial chain. CDMA2000. equipment vendors will also transform from simple equipment suppliers to end-to-end full-service solution providers. ZTE helped China Telecom build approximately 60% of its local CDMA networks at the prefecture level. construction. not only driving the growth of telecommunications. According to a report released by iSuppli in January 2010. it will lead to increasing demands for equipment because of network construction and upgrade requirements. The 3G era is a turning point for China’s telecom industry and is of far-reaching significance. Close cooperation was established with China Telecom after it was awarded a CDMA license. and have established a complete green operation and evaluation system 18 ZTE TECHNOLOGIES October 2010 . ZTE will continue to be a key player in tri-network convergence. and represent a revolution in values. more sustainable telecom models. J: Green technology. new materials. ZTE has incorporated energy conservation and environmental protection into its technological innovation. OSS providers. transmission. carbon reduction. What requirements are implied by these issues and how will equipment vendors and operators adapt to such requirements? Specifically. In a recent government work report. and lifestyles. Drawing on the advantages of our products and end-to-end network solutions. and manufacturing. ZTE has much experience in integrated broadcasting and control platforms. and are obliged to promote healthier. a n d e n e rg y c o n s e r v a t i o n a r e o f paramount importance in today’s telecommunications industry. and to drive sustainable development across the industry. and content and service providers will become the market’s focus of attention. With the most complete range of infrastructure. product R&D. and will further improve its ability to rapidly respond to operator needs. IP. The ICT industry is vitally important in promoting a low-carbon economy. and energy conservation are now integrally linked to the sustainable development of telecom enterprises. production modes. Telecom vendors and operators must play an active role in a new low-carbon economy. fixed-line networks. innovative networks. concepts. Premier Wen Jiabao stated that the global financial crisis was giving rise to a technological and industrial revolution. To create green. We have been active in drafting international standards. and service software. high-end integrated terminal suppliers. carbon reduction. interactive and converged services. service.Interview vendors. and that great efforts should be made in developing emerging strategic industries including new energies. and terminal equipment. and high-end manufacturing. information networks. OSS. what is ZTE doing to minimize negative environmental impact? Zeng: Green products. we intend to continue helping domestic operators explore opportunities and to maintain our own high speed growth. J: Finally. multi-mode BSCs. but also to develop new products. Since the first half of 2009. Drawing on our strength in integrated solutions. we will cooperate with our partners to satisfy requirements for mobile broadband. As well as helping operators increase efficiency and profitability. and mobile Internet has driven operator demands for new products. ZTE is stepping forward to worldclass excellence by further improving operational efficiency and developing its global strategy. power savings of around 50% are achievable. they must also work with operators to explore future technological trends. and is partnering with operators to offer high quality feature-rich 3G services. When combined with new energy resources such as solar or wind. Reducing October 2010 ZTE TECHNOLOGIES 19 . These efforts are examples of how ZTE is developing green. and will seek to improve its competitive strategies. In the coming years. cooling. vendors will become long-term strategic partners in the joint exploration of new market opportunities. supervision. low-carbon. With the widespread deployment of 3G networks throughout China. Internet of Things. the telecom industry is converging with IT. product planning and deployment. entertainment. quality project delivery. Power consumption of base stations can be reduced by 30% or more over a 24 hour period. ZTE has been helping China Telecom build its software stores and this year won a project to build China Unicom’s software store. and operation and maintenance are implemented as part of our logistics and project delivery. and technological innovation.power consumption of base stations implies limiting the use of auxiliary devices associated with power supply. and energy-saving products. Providing operators with new products and technologies is not the only role played by telecom vendors. Moreover. installation.300kWh per site each year. network development. equipment vendors are being asked to not only provide upgrade solutions for products and platforms. Traditional telecom enterprises. and manufacturing. and business innovation. incorporating product research. and business models. IMS core networks. transportation. which translates into savings of up to 6. Environmental protection is at the forefront of our product design. we provide unified all-IP platforms. Today. and maintenance. to thoroughly enhance service quality. what are the future plans of ZTE in China? Zeng: China is a very important market for ZTE. On the whole. and management. Although rooted in China. and renewable energy sources for network evolution and convergence. They must meet network requirements in a new industrial environment. and even traditional logistics. ZTE will enhance its ability to deliver integrated solutions and resources. ZTE is working hard to enhance its service innovation. 3G service operation has become a primary focus. How will vendors and operators change their supply and demand relationships to cope with new forms of competition? Z e n g : T h e e m e rg e n c e o f C l o u d Computing. however. industrial convergence. operators have transformed into fullservice providers. G r e e n packing. Internet. and mobile Internet strategies have been put forth. may have little knowledge of other fields. Internet of Things. and this helps reduce TCO while i m p r o v i n g p r o f i t a b i l i t y. and market behaviors to provide operators with a full range of products and services. new business models and new technologies such as Cloud Computing. implementation. and mobile Internet have emerged and are being enthusiastically promoted within the industry. J: Driven by new service demands. Increasingly. IP service engines. and this trend inevitably presents challenges and opportunities to all parties in the industrial chain. and to contribute to the country’s industrialization and information building. testing. accommodating development of future metro networks. core layer optical transport network market has high technical barrier.455W per 10G bandwidth respectively under separate tributary and line mode and transponder mode. POS. “ZXONE 8000’s other salient features include: flexible access of varieties of services like STM-1/4/16/64/256.6Tb and 3.Third Eye Future-Oriented IP Services Boost Operators’ Ability for Service Delivery August 9. It implements non-blocking digital cross connection at granularities of ODU0/1/2/3. The equipment can help operators build intelligent and flexible transport grooming network at IP granularity. to cope with the requirements of bandwidth and large-granule service grooming in metro network. ESCON. 10). Frost & Sullivan. FC-N (N=1. 20 ZTE TECHNOLOGIES October 2010 . Wi t h t h e a d v a n c e m e n t of optical component and silicon technologies. Frost & Sullivan. By integrating GMPLS control plane to the network. It recorded power consumption of 34. 2010. multiple restoration paths for critical services to enhance service survivability and boost network utilization. 8. ZXONE 8000’s service processing system (ROAMD and digital crossconnect system) can implement highly intelligent service operation. implement networklevel service restoration and balance link load. 2. Its outstanding system architecture and performance can help operators build high-performance and large-scale intelligent optical transport network. According to Frost & Sullivan. GE/10GE/ 40GE. the network operation and maintenance cost can be reduced. Its cross-connect unit employs advanced N:M protection mode to identify cube-level failure rate. Frost & Sullivan states that ZXONE 8000 has reliable system architecture. optical network is witnessing a shift from single pointto-point topology to ring and mesh topologies. dual-plane intelligent control via loading WSON to accelerate service provisioning. OTU1/2/3. resulting in much higher equipment security compared to traditional N+N protection mode with square-level failure rate. ZTE is expected to succeed in gaining access to this high-end optical network equipment market with ZXONE 8000. consulting manager of ICT practice. As a result.” cited Cheney Ji. 4. operators will come under increasing pressure to drive down network investment cost and improve ROI. selected from the global-growth consulting firm Frost & Sullivan O ptical network is the backbone of the entire telecom network. ZTE launched ZXONE 8000 series. Large-Capacity ODUk Digital Cross Connection In April 2010. Green network results in lower operational cost. Greener and Simpler “ Wi t h t h e v a s t l y i n c r e a s e d investment on 3G services. DVB. making the network more intelligent and easier in service control and maintenance. consultant of ICT practice. ZXONE 8000 can be deployed in core layer optical network.650W and 27. The service processing system enables full utilization of bandwidth reducing network construction and operational cost. Intelligent service control helps to lower maintenance cost. thus adapting to future metro networks.2Tb. Operators can perform hierarchical QoS management. ZXONE 8000 can perform highspeed and intelligent grooming of services at granularities of ODU0/1/2/3 and provide OTN digital cross-connect capacities ranging from 800Gb to 1.” analyzed Fox Hu. accompanied by increased automation of equipment. a large-capacity digital cross-connect equipment. enhanced MIMO. and are actively engaged in LTE testing. These key techniques include Carrier Aggregation (CA). LTE has attracted much attention from leading telecom operators and equipment vendors worldwide. CA has been introduced ■ Key Techniques for LTE-A A number of new technologies have been introduced into LTE-A to meet IMT-A requirements. LTE-A supports a maximum bandwidth of 100MHz. Carrier aggregation To reach the required peak rates. Operators are now increasing their LTE investments. a key technique is needed to fully utilize spectrum scattered on various frequency bands. Commercial LTE networks have been available since 2010. To meet these requirements. and also poses a great challenge to hardware design of eNodeB and User Equipment (UE). and higher spectral efficiency (30bit/s/Hz in the downlink and 15bit/s/Hz in the uplink). and October 2010 ZTE TECHNOLOGIES 21 . 3GPP has initiated research into LTEAdvanced (LTE-A) and has adopted it as the preferred 4G candidate. To ensure longterm evolution and compliance with IMT-Advanced (IMT-A) specifications. enabling seamless coverage from macro cells to indoor areas. Such high bandwidth is hard to find in the available spectrum resource.Research Note LTE-A By Mi Dezhong Leads Future Wireless Communications F or its high speed and low latency. It supports various deployment scenarios. Coordinated Multi-Point Tx/Rx (CoMP). LTE-A―smoothly evolved from LTE―boasts higher peak data rates (1Gbps in the downlink and 500Mbps in the uplink). Moreover. relay. as shown in Figure 1. other nonbackward compatible carriers will be introduced. ■ and then to the end user. Non-continuous CA Downlink ■ Support up to 8x8 antenna configuration ■ Support dynamic SU-MU MIMO switching ■ Enhanced MU-MIMO feedback Uplink ■ Support up to 4x4 antenna configuration ■ PUSCH supports SU-MIMO ■ PUCCH supports transmit diversity Figure 2. Compared with LTE Rel-8 (which supports single-antenna transmission). Enhanced multi-antenna solution. one or more CCs can be scheduled per UE depending on the transmission requirement and capability. The relay node is connected to eNodeB via a wireless link. and then to eNodeB. while in the uplink.Research Note into LTE-A. This not only improves peak data rates and system throughput. dynamic switching of SUMIMO and MU-MIMO is supported. Relay falls into two categories: type 1 and type 2. and performance of downlink MUMIMO is optimized through enhanced feedback of Channel State Information (CSI) and a new codebook design. Moreover. to support group mobility and temporary network deployment. in the uplink. Asymmetric carrier aggregation is also supported in LTE-A. In LTE-A. In practical scenarios for carrier aggregation. up to two codewords and four layers are supported with Single-User MultiInput Multi-Output (SU-MIMO). In LTE-A Rel-11 or above. LTE-A supports up to four transmit antennas. In a typical scenario of asymmetric carrier aggregation. data is transmitted from the end user to relay node. the number of transmit antennas is expanded from four to eight. however for an LTE-A UE. type 1 relay works as an eNodeB. data is transmitted from eNodeB to relay node. and up to two codewords ■ and eight layers are supported. Type 1 relay has an independent cell ID. transmission quality is improved through transmit diversity. Enhanced MIMO Multi-antenna technology improves channel capacity and spectral efficiency by expanding transmission dimension. This greatly improves downlink transmission throughput and spectrum efficiency. as shown in Figure 3. but also addresses the issue of spectrum discontinuity. as shown in Figure 2. and to enhance cell-edge throughput. Typical scenario of carrier aggregation. In the downlink. For an LTE Rel-8 UE. For the Physical Uplink Control Channel (PUCCH). type 1 relay has more powerful LTE CC1 LTE CC2 LTE CC3 LTE CC1 LTE CC3 LTE-A carrier LTE-A carrier LTE-A carrier Continuous CA Figure 1. In the downlink. 22 ZTE TECHNOLOGIES October 2010 . Relay In relay transmission. and MultiUser Multi-Input Multi-Output (MUMIMO) is enhanced in the downlink. relay is used as a tool to improve highdata-rate coverage. LTE-A Rel-10 specifies that each CC adopts existing LTE bandwidth and is backward compatible with LTE. downlink bandwidth is larger than uplink bandwidth. To allow compatibility with LTE. more antennas are supported in the uplink and downlink. a relay node or relay station is introduced between eNodeB and UE. and provides resource scheduling and hybrid automatic retransmission functions. In LTE-A. CA supports both continuous and non-continuous Component Carrier (CC). For the Physical Uplink Shared Channel (PUSCH). functions than an eNodeB. enhanced MIMO increases cell throughput by further expanding MIMO dimension.UE preprocesses channel state information under certain assumptions. Three feedback schemes are defined for CoMP: explicit feedback. For implicit feedback. LTE-A can meet or even surpass all IMT-A requirements. and system throughput in both heavy and light load scenarios. UE feeds back information such as channel coefficient and channel rank without preprocessing channel state information. Type 2 relay has no independent cell ID. UE needs to provide feedback on channel state information. relay improves coverage through relay of radio transmission. ZTE is now working hard to develop a LTE-A prototype. In 2012. and CoMP increases cell-edge throughput by coordinating multiple cells. The company also places great importance on LTE-A. Principle of CoMP. and has made good inroads to this end. For SRS-based feedback. Type 1 relay is now adopted in LTE-A Rel-10. JP achieves transmission gain through joint processing. CoMP In LTE-A. taking an active part in drafting related standards and submitting proposals that have been adopted by 3GPP. Depending on whether traffic data is obtained ■ at multiple coordinated points or not. With in-depth research into key LTE-A techniques. By introducing these key techniques. As of July 2010. CoMP involves uplink CoMP reception and downlink CoMP transmission. its LTE-Abased eNodeBs are expected to be deployed globally. implicit feedback. eNodeB uses channel reciprocity and obtains equivalent downlink channel state information according to the SRS sent by UE. October 2010 ZTE TECHNOLOGIES 23 . ZTE has concluded seven LTE commercial contracts. and no control information except traffic is transmitted. CoMP is considered a useful tool for improving high-data-rate coverage. while CS/CB reduces inter-cell interference through coordination. and feeds back information such as precoding matrix indicator and channel quality indicator to eNodeB. ZTE has developed an array of competitive solutions. downlink CoMP transmission is divided into Joint Processing (JP) and Coordinated Scheduling/Beamforming (CS/CB). For explicit feedback. To s u p p o r t d i f f e r e n t C o M P transmission modes. JP CS/CB Figure 4. Uplink CoMP reception improves cell-edge user throughput by joint multi-cell reception of user data. and built nearly 50 LTE trial networks for telecom operators worldwide. ZTE is leading the telecommunications industry toward wireless broadband communications. This will allow people to enjoy feature-rich multimedia services and high-speed connectivity using mobile broadband. and this has very limited impact on RAN1 specifications. and Sounding Reference Symbol (SRS)based feedback. as shown in Figure 4. Principle of relay transmission. eNodeB Prospects of LTE-A Relay Node UE Figure 3. cell-edge throughput. This scheme is suitable for a TDD system. UE Carrier aggregation uses band aggregation to expand transmission bandwidth. It was overly simple and did not take into account SLAs. As well as basic network operation and maintenance. business layer. for example. business management. Business Layer Customer There is no standard definition of managed services. and this is ZTE’s current understanding of application scenarios for managed services in the telecommunications industry. Vodafone and Warid. flexible value chain cooperation models. and customer layer based on a Service Level Agreement (SLA). managed services are often considered an admission ticket. reusable resources. and managed services have become an increasing focus of attention. Managed services adopt standard processes. and operation and Vendor Design ■ Plan ■ Optimization ■ ■ Network Deployment Service Layer Spare & Logistic ■ Facility Management ■ Figure 1. S o u t h A f r i c a ’s M T N i s considering adopting a managed services strategy in both developing and undeveloped countries. and have built a joint global business evaluation s y s t e m . Hierarchy of managed services. operators are demanding more in terms of revenue management. use unified RFPs and share bid evaluations. and revenue distribution schemes so that operators can optimize their business and financial performance and focus more on core businesses. 24 ZTE TECHNOLOGIES October 2010 . maintenance of the network layer. The term “managed services” originally referred to any user facility management service provided by operators to enterprise users. Many operators see managed services as a business strategy for globalization. and terminal management. The SLA is the foundation of service ■ Service Management ■ Business Consulting Customer A&C Partnership ■ Collocation ■ SDP Management ■ Application & Content SLA Assurance Network ■ Maintenance ■ Operation What are Managed Services? Managed services are professional network management services that include integration.Research Note Business Model Analysis of Managed Services By Wang Xinqiang W hen bidding begins for large-scale network projects. Service management is an essential part of the new telecom ecosystem and this creates win-win opportunities for all participants. interface openness. reducing OPEX is the most critical. CAPEX of global mobile operators US$m 400000 200000 Driving Force of Managed Services Managed services are driven by the transformation of telecom operations in terms of: ■ Financial targets: As the telecom market continues to slump and the telecom ecosystem deteriorates. competition has heated up. Cost of Services 25% R&D 2% Cost of Equipm ent Sales 15% Depreciation and Amortization 25% Transport 10% Interconnection. and Administrative 35% Figure 3. new businesses. Network Services 70% Share of OPEX 100 90 80 70 60 50 40 30 20 10 0 Source: Pyramid Research. Among these. ■ Deployment capability: Since competition is globalizing and new operators are asserting themselves with new technologies in the 0 2005 2006 CAPEX 2007 OPEX 2008 2009 2010 Source: Pyramid Research. and Roaming 18% Selling. Mobile operators’ CAPEX and OPEX. cash flow performance. complementing business abilities. Risk transfer: The risks associated with new technologies and new 600000 businesses should be shared with equipment suppliers in order to minimize investment risk. new approaches to cost reduction. Managed service solutions should adapt to the business models of operators and the following should be considered: ■ Support measures for product solutions (product maintainability. OPEX breakdown for a typical mobile operator. network technologies. Termination. Supply chain management. Figure 2. General. need to be simplified and integrated so that operators can focus on core businesses and front-end markets. streamlining revenue. and services. ■ Business performance: New technologies are continually e m e r g i n g . and ROI must be sought. and service capability is an absolute prerequisite. The need for service management is also evident when the CAPEX and OPEX of mobile operators is examined and OPEX broken down (as shown in Figures 2 and 3). service management creates additional sources of income. and sharing risk. By optimizing and sharing resources. Management optimization: The emergence and convergence of new technologies. and complicated value chains have made network management more difficult. To i n c r e a s e c o r e competency in the market. new technologies must be obtained and business performance improved at reduced cost. Shorter time to market for new products and rapid development of new business is therefore necessary to compete.delivery. and SDP) ■ Integration with third-party products and client devices ■ Delivery cooperation model and income distribution program Three changes should be considered for business models: ■ Changes in the profit model (resulting from changes in the cost and revenue models) ■ Changes in the value orientation (from equipment selling to service or business selling) ■ Changes in the customer relationship (from a buyer-seller relationship to a partner relationship) ■ ■ home markets of other operators. October 2010 ZTE TECHNOLOGIES 25 . 26 ZTE TECHNOLOGIES October 2010 . cooperation. and it is crucial for manufacturers to provide professional services. and virtual operation and managed services have come into fashion. and will be provided by device manufacturers with product operation ability or managed services providers. The growing demand for managed The transformation of the telecom business models has led to the development of managed services. new businesses. Conflicts and opportunities in next generation network transformation promote service management: ■ The traditional resource-based profit model of bearer networks is being challenged. B u s i n e s s m o d e l s o f d i ff e r e n t manufacturers have a common point in taking advantage of their own products and resources.I P n e t w o r k technologies—OPEX growth has slowed. and mergers.Research Note Managed service capability is important in the decision-making process for product purchases. and customer layer have different capability requirements for managed services. ■ The value chain model is an inevitable trend. 70% of which are for network service. OPEX of global mobile operators is three times CAPEX (about US$400500bn annually). since 2008—when operators were equipped w i t h c o n v e rg e d . New business expenses in CAPEX have increased from 10% in 2000 to 30% in 2010. The NGN business profit model is still being explored. and profit can be made by selling competitive solutions. The active roles of IT enterprises in the managed services field will give rise to new competitive arrangements. business layer. with risks being shared with manufacturers. Outsourcing of managed services has become a better choice for operators. Outsourcing of managed services has become a better choice for operators. Network-layer managed services will dominate the market. Marketing of customer-layer managed services will also be segmented and more suppliers will offer managed services. The development of an industry profit model goes hand in hand with development of managed services business models. and it is crucial for manufacturers to provide professional services. a l l . service costs account for 25% of OPEX. the total available market is growing rapidly and business-based market segmentation needs to be tracked. and “bit paradox” has become the bottleneck of next generation business network operation. Managed services capabilities can be improved through organizational transformation. reached peak value (about US$137bn) in 2007 and has declined steadily ever since. The ratio of network service expenses to total service expenses in OPEX and CAPEX (e. and highvalue domains have grown quickly as a result of value chain managed services. New networks. For a typical mobile operator. However. services from virtual operators and enterprises may be a “blue ocean” for traditional network vendors. Manufacturers can thus provide more solutions and business models to meet customer needs in the value chain.g. Business-layer managed services have an uncertain future because industry profit models are still being explored. Equipment suppliers should develop and offer different managed service solutions according to different paths and modes. ■ Conclusion Development Trend of Managed Services Managed service capability is important in the decision-making process for product purchases. for service management tools) has grown from 33% in 2005 to 45% in 2010. The network layer. ■ Managed services at the business layer involve risk sharing while next generation network profit models are sought. However. Shenzhen. ZTE’s CDMA technology enables Polkomtel to stay ahead of the competition and offer consumers the quality of services and innovative applications they are looking for. and many other features that will resonate with the next generation of mobile users. switching nodes. Our subscriber base wants to be connected and make use of social networking. CSL Limited (CSL). “There is a growing demand in Poland for data services and high-bandwidth applications. With the development of the global broadband market. ZTE ranked third in the world IPTV middleware market in terms of subscribers in 2010 H1.000 units. and a GoTa digital trunking system. Hong Kong’s leading mobile network operator in partnership with ZTE Corporation. Shenzhen. Frost & Sullivan. As one of the latest broadband applications. It received the award based on research conducted by leading consulting company. internet browsing. the total shipment of ZTE’s SDR base stations is already over 250. IPTV has attracted industry attention. with about 14 million subscribers. President of the Board at Polkomtel. CSL and ZTE demonstrated to the world live LTE service with pre-commercial USB modems running various broadband. used by more than 60 operators in over 40 countries. ZTE Awarded “2010 IPTV Equipment Vendor of the Year” Accolade 29 September 2010. As a subsidiary of theTaiwan Kinpo-Compal Group. Under the agreement. Hong Kong ― At the LTE Asia 2010 Conference today. ZTE Poland will supply all equipment for the network including base stations and controllers. marking the second time it has received the accolade. Shenzhen. including high-speed file download/upload. China ― ZTE is to upgrade Polish operator Polkomtel’s national CDMA network. ZTE Supplies Over 3. China ― ZTE has been recognized as the “Best Practice Award ―2010 IPTV Equipment Vendor of the year”. The base-stations to be provided for VIBO are based on ZTE’s industry-leading Software Defined Radio (SDR) technology. Polkomtel is one of the largest operators in Poland. This gives the delegates a first-hand experience with the LTE service being deployed all over Hong Kong. ZTE will supply equipment for the network in the 450MHz (L band). service platforms. ZTE will supply more than 3. HD video download and streaming performance. upgrading existing infrastructure to improve coverage and enable data and Push-to-Talk services. and was the leader in the IPTV middleware markets of Asia and China in 2010 H1. ZTE has achieved a breakthrough across the global UMTS markets based on its leading edge SDR technical platform. In recent years. China ― ZTE today announced it has signed a contract to supply WCDMA wireless equipment to VIBO Telecom Inc. October 2010 ZTE TECHNOLOGIES 27 . a leading global provider of telecommunications equipment and network solutions demonstrated CSL’s progress to being the first in the world to simultaneously deploy DC HSPA+(42Mbps)/LTE technologies on an entire network. ZTE to Build CDMA Network for Polkomtel Data services main driver for nationwide network in Poland 14 September 2010.” said Jarosław Bauc. VIBO is the leader of pure 3G WCDMA operator in Taiwan.News Brief CSL and ZTE Set to Commercially Launch the World’s First Dual Cell HSPA+ (42Mbps)/LTE Network 7 September 2010. Among IPTV vendors. IPTV content and application has become more important. multi-media applications.500 3G Equipment to Taiwan VIBO Telecom Total shipment of SDR base-stations is over 250 thousand units worldwide 27 September 2010. To date.500 3G basestations to replace VIBO’s existing 3G network around Taiwan within one year. Its coverage radius can reach 300 meters. London ― ZTE today launched its Converged Service Network (CSN) at the SDP Global Summit in London. LAN. ZTE Launches Converged Service Network Platform SDP as a Service solution announced at SDP Global Summit 15 September 2010. third-party application providers. operators need to expand and upgrade their networks smoothly. 100G ultrawide system capacity. operators can eliminate any traffic bottleneck in the core networks. as well as providing high quality indoor 3G data and voice services. The Gecko helps operators make up for any deficiencies. The explosive popularity of IT applications. The CSN provides an efficient and stable service network platform for operators. such as indoor blindspot coverage and hot-spot traffic distribution. ZTE’s complete solution incorporates the use of ZXR10 T8000 in the IP layer to realize the smooth upgrade from 10G to 100G. The CSN is a new service network platform integrating mobile and fixed network infrastructure onto a basic platform that supports both Internet and telecoms services. xDSL. easy to mount and satisfies operators’ networking requirements. enabling an SDP as a Service (SDPaaS) solution for the first time. PON. the first multicarrier super-mini CDMA base station available in the industry. providing a flexible solution with efficient management and control features. which can support multiple services with compromising performance in case of full-service overlapping. For carrier networks to provide sufficient capacity. Through the deployment of ZTE’s ZXWM M920 and ZXONE 8000 as part of the Ultra Wide Band (UWB) 100G carrier network solution. or an environment where developers can collaborate and share innovative services. ZTE Launches Industry’s Most Complete 100G End-to-end Carrier Network Solution Carrier network operators to benefit from comprehensive range of UWB products and services 28 September 2010. ZXR10 T8000 is a telecom-class 100G routing cluster system with the largest capacity in the industry. The innovative Gecko is small in size (measuring 26cm×18cm× 5.8cm). ZXR10 T8000 can maximally support 16+64 multi-chassis system and 200T switching capability. enhances user experience and builds highefficiency and high-quality CDMA networks. retail and entertainment outlets. By using chips with self-owned intellectual property. China ― ZTE today announced the launch of Gecko. HD video services and cloud computing has led to a massive spike in network traffic. Shenzhen. ZTE’s CSN incorporates traditional SDP architecture and cloud computing features. Traditional SDPs also provide the flexibility to support and manage different services. Shenzhen. improves network quality. and satellite). thus meeting high service standards for use in offices. which will provide the bandwidth capacity for network operators to meet increasing network traffic demands. and fully meet the demands of the growing data business. To achieve the 80-wave. the World’s First Multi-Carrier Super-Mini CDMA Base Station 30 September 2010. China ― ZTE today announced the launch of the industry’s most complete 100G endto-end carrier network solution. Gecko Base Station 28 ZTE TECHNOLOGIES October 2010 . Z T E ’s G e c k o b a s e s t a t i o n supports several IP networking modes and achieves access by using various transmission resources (such as MAN. hotels. lightweight.News Brief ZTE Launches the Gecko. but are not able to support multi-domain service convergence. and individual or group application developers. October 2010 ZTE TECHNOLOGIES 29 . 30 ZTE TECHNOLOGIES October 2010 .