Professional Documents
Culture Documents
Tel: +86-755-26771559
tal of Angola, Benguela and Lobito.
Fax: +86-755-26770221 ZTE won the contract in competition with four other glo-
or register online at
bal telecoms equipment suppliers. Under the terms of
www.zte.com.cn/English/Subscribe
the agreement, ZTE will supply Mundostartel with its end-
POSTMASTER: Send address to-end WiMAX solution including base stations and CPEs
changes to Ms. Chen Xia at (Customer Premises Equipment) which offer smooth
chen.xia@zte.com.cn
scalability to an 802.16e (mobile WiMAX) network, roam-
ing support architecture and product serialisation.
This agreement follows recent ZTE announcements of multi-service terminals such as IP data, VoIP, WLAN,
WiMAX deployments in Islamabad, Pakistan and a na- VPN and TDM.
tionwide network in Serbia.
ZTE has signed a partnership agreement with Intel Cor-
ZTE has established three WiMAX R&D centers in America poration and Fujitsu to develop and promote standards
and China since its WiMAX operations began in 2002. With and specifications for WiMAX networks. ZTE is also one
more than 400 R&D personnel dedicated to WiMAX operations, of the 13 board members of the WiMAX forum.nearly
ZTE owns a growing patent portfolio in the WiMAX field. 10% of its annual sales income into research and
development; and has 25,000 employees, of which 70%
ZTE provides the full package of WiMAX products based
have a bachelor or higher degree.
on 2.3GHz, 2.5G, 3.3GHz, 3.5GHz, 3.7GHz, 5.8GHz, and
ZTE TECHNOLOGIES 01
CASE STUDY
The Challenge: Pakistan is a key growth market in Asia. rapid network deployment and aggressive marketing and
Mobile takeup is on a substantial growth curve currently brand building strategies it has employed. Now, in third
with over 10 million subscribers served by six players of place and closing after longer-established operators
which Paktel is one of the most recent entrants. Paktel is Mobilink and Ufone, Paktel currently has around 1 million
the Pakistan subsidiary of the Millicom International subscribers and a market share of around 9%, with sub-
Cellular, a group that has 16 mobile operations in 15 coun- scriber count increasing at a rate of 100,000 per month.
tries in Asia and Africa. The company launched GSM “The rates are already very low, so now it is clearly cov-
services in 2004, and has migrated from an existing AMPS erage and quality that matter,” Mr Rocoplan comments,
TDMA analogue service. There is a major push to increase and predicts the fight will move to ‘customer services
network expansion by all the major players for competi- and what you can do for customers in 2006’. But he
tive and market reasons. Paktel sources its entire GSM contends: “It is a long race, and the one thing that mat-
network infrastructure from ZTE. ters is the shape of [the service provider] cost structure.
We must shape it to remain competitive.”
The Business: Six mobile operators in the country means
the competition is extremely intense, requiring operator The Network. “The quality of existing networks is not
differentiation and addressing a market characterised by very good, and there is only one real player with [national]
extremely low tariffs. Xavier Rocoplan, Paktel CEO, says coverage,” says Mr. Rocoplan. So, the push is on for the
that Paktel’s strategy is to come to market with offer that serious players to achieve national coverage and this will
is seen as best value for money, but which is not neces- mean ever more investment announced from the top three
sarily the cheapest. “We want to be seen as the ‘smart’ players, he predicts. Whilst all operators have announced
choice, and to be the innovator,” he says. Observers expansion, national coverage means big targets for net-
suggest that a key strength of Paktel so far has been work deployment. “We actually had the biggest rollout
02 ZTE TECHNOLOGIES
CASE STUDY
so far with launches in 31 cities, and more than 100 cit- ing phone calls. This is mediated through the mobile in-
ies are now covered,” he says. “It is the usual telecom telligent network (IN) system.”
cycle and it is very capital intensive and we are all going
What are the lessons to make a long term partnership
through that phase now.” And the costs are many and
between vendor and operator work effectively? “The trick
various. ”Much of the capex is linked to towers and civil
as a mobile operator is to manage the vendor relationship
engineering work. Local approvals and permits are, in
effectively, says Rocoplan. “ZTE is definitely a ‘different’
practice, not cheap and licence costs are significant, with
vendor in comparison with the major vendors in the
various annual licence fees and USO obligations,” he
West who tend to place emphasis on technology feature
says.
sets,” he comments. “ZTE has been very good in terms
To achieve predictability in planning and cost control of of logistics, and has been very flexible. There have been
network capex, Paktel has built a long-term strategic re- “a lot of good things such as the IN implementation, post-
lationship with ZTE, the Chinese telecom vendor in a multi- sales services and ability to meet our specific require-
phase network rollout. In each case, ZTE has provided ments” that has enabled differentiation for Paktel in the
the complete GSM infrastructure on a turnkey basis. Mr. market. ZTE products “are good, he says, and will con-
Rocoplan says Paktel is now “in a third phase of that tinue to mature over time” and considers that ZTE are
expansion”, meaning effectively doubling the site count also “extremely flexible as an organization”. And Paktel
to 1000 by the end of this year. “We are trying to improve clearly sees the partnership as a valuable learning experi-
the indoor coverage in the network as well,” he says. ence for both sides: “Overall I would rate it as positive,”
Brand building is also important in the network rollout: he says, and adds that ”ZTE is flexible enough to learn a
“We would like to be seen as an innovative brand. We lot from service providers like Paktel.”
are rolling out GPRS and NGN infrastructures to help us
The Future: The market has plenty of opportunity in ad-
achieve our cost structure.”
vanced services as well says Mr. Rocoplan: “I don’t think
Previous project phases have concerned building up overall anyone has sold GPRS properly because there are ca-
network expansion including GSM core, GSM radio, IN, pacity and quality issues. We started work on GPRS four
SMS, microwave link and power supply systems. In the months ago and it should be enabled by October.” Mr.
third phase capacity expansion, ZTE provides core and Rocoplan adds that Paktel will again work creatively to
radio networks to Paktel including shelter BTS and micro- use GPRS but possibly not as an explicitly branded ser-
BTS installations. ZTE is also providing additional facilities, vice in the retail market.
including CRBT, and an all-in-one O&M facility. In sub-
Meanwhile network expansion continues, with some
phases GPRS, and softswitch CN architectures may also
observers suggesting that Paktel could reach No 2 posi-
be implemented. Paktel subscribers enjoy features such
tion in the market alongside Ufone in three years. “We
as missed call and welcome messages. ZTE also pro-
are now entering Phase 4 project that could see another
vides support through its own Pakistan subsidiary that
doubling of sites next year,” he comments. A smooth
employs 600 people to provide project implementation,
evolution in the rollout could in turn see both capex and
research and development, as well as manufacturing and
opex savings involving reduction in O&M costs. The ur-
software development for both the local and export
gency to expand permeates the operator focus, says
markets.
Rocoplan: “We will have a dedicated project team for the
The Result: What rating would Paktel give ZTE as a next two or three years, and the idea is to keep expand-
partner? ”ZTE has been a positive experience [for us], ing every week, with activities being continually pushed
and has been very flexible,” says Mr. Rocoplan. “ZTE through to support the business.”
can meet all our creative requirements including innova-
tive marketing features that rebate subscribers for mak-
ZTE TECHNOLOGIES 03
November 2005 Issue
70 NEW PRODUCT
1 Overview services; the equipment manufactur- ity of ZTE CDMA equipment has ex-
ers hope to launch products that bet- ceeded 30 million lines, and accord-
In 2005, the global 3G market begins
ter suit the market; and the users hope ingly ZTE has become the biggest
to warm up and evolves from the
to enjoy more abundant, high quality CDMA equipment exporter in China.
network experiment period to the
services.
network construction period, and the As a leading brand in the global
corresponding market begins to take ZTE Corporation is not only the larg- CDMA equipment field, ZTE offers a
shape. In 2004, the “3G in China” Glo- est listed telecommunications manu- full range of proprietary CDMA
bal Summit was held in Beijing, facturer in China, but also a leading products, including base stations,
China. At the summit, experts, op- player in global CDMA technology. ZTE switches, and terminals. ZTE is able
erators and manufacturers around the offers a full set of 3G solutions, includ- to research, develop, and industrial-
world sat together to discuss the cur- ing CDMA2000, WCDMA, and TD- ize the core of CDMA system. Dif-
rent status and future of 3G. The SCDMA. Among them, the CDMA ferentiated and customized solutions
stable network construction, service series products been widely used in and perfect customer services have
promotion, and development of sub- over 50 countries in Asia Pacific, borne abundant fruits in the global
scriber base and terminal suggest South Asia, Europe, South Africa, market. Based on ZTE's profound
that the 3G market begins to grow North Africa, America, Middle East, knowledge and advantages in the
up. The operators hope to offer more CIS, and so on. The wireless capac- CDMA field, ZTE proprietary ZXC10
04 ZTE TECHNOLOGIES
systems. It offers 3GPP2 standard- ware modules, maximizing the share
compliant A/Ap interface between of resources and technologies among
access network and CN. It can also different products. Functional mod-
interconnect with other CDMA2000 ules are added to the system to in-
3G networks, NGN softswitch dependent NEs or multi-service inte-
networks, and PSTN. It is compat- grated NEs.
70 NEW PRODUCT
smoothly evolve to the MMD by us- unified software support. In this way,
ing additional corresponding functional different application services can be
network elements (NEs). developed on the unified hardware
platform and unified software support,
making it easy for the operators to
2 Advanced All-IP build networks and launch various
General Carrier- featured services.
grade Platform
ZTE All-IP general carrier-grade plat-
ZTE CDMA2000 All-IP solution is a form has the following advantages:
total end-to-end CDMA2000 solution. The general carrier-grade platform
The CDMA2000 solution is based on
is used to ensure the unified pro-
the proprietary ALL-IP general carrier-
curement of spare parts and the
grade platform of ZTE and open
will keep its leading position in the scale merit of production. This
standards. It is a real 3G solution. This
CDMA2000 field. enables ZTE to develop cost-
platform supports CDMA2000, TD-
effective, competitive 3G
ZTE CDMA2000 All-IP core network SCDMA, WCDMA, and fixed-net-
equipment.
product series (ZXC10-3GCN) is the work NGN. This flexible platform pro-
proprietary carrier-grade communica- tects the current and future invest- The platform easies the build-
tion equipment developed by ZTE. ment of the operators and helps re- ing of CDMA2000, WCDMA, TD-
The system complies with 3GPP2 lease all the potentials of 3G tech- SCDMA, and fixed-network
standards. Based on IP technology, nologies and services. NGN networks. The nodes in the
the system adopts advanced NGN system feature high reusability,
ZTE integrates multiple 3G technolo-
softswitch technology to separate facilitating the management
gies (for example, CDMA2000) on a
service from control and separate call and training and reducing the
unified platform. This offers a flexible,
from bearer. The system offers the backup cost.
future-oriented 3G platform to the
CN functions of the CDMA2000 All- operators. Being prospective, the The platform facilitates the inter-
IP system to the operators. It can system employs standard and modu- connection and interworking be-
connect the IS-95, CDMA2000 1X, lar hardware and software design. tween CDMA2000, WCDMA,
CDMA2000 1 x E V- D O , and Different products are the combina- TD-SCDMA, and fixed NGN net-
CDMA2000 1xEV-DV base station tions of different software and hard- works and reduces the limitation
ZTE TECHNOLOGIES 05
of services. bandwidth and low operation and prioritization of up to 256K flows.
management overhead to ensure the
Because of standards, The system implements the
QoS of the services transferred in the
applications, market and so on, it Diffserv edge node functions
network, while ensuring the advan-
is difficult for the operators to fore- (including the RSVP agent func-
tages of the connectionless transmis-
see the construction of future 3G tion to interwork with the IP
sion in the IP network. This ensures
network. The general carrier-grade bearer services in the external
November 2005 Issue
06 ZTE TECHNOLOGIES
plication experience, ZTE ensures the deployed GoTa networks in over ten 5 Conclusion
technical advancement and stability countries (Russia, Norway, Turkey,
As a leading player in supplying net-
of ZXC10-3GCN and fully considers Brazil, Thailand, Indonesia, Egypt,
work equipment, ZTE has been striv-
the actual demands of the operators. Algeria, and so on) through coopera-
ing to research, develop, and pro-
ZTE has been striving to explore and tion with local operators.
mote 3G equipment for years. ZTE
develop various applications with the
ZTE has launched GGG gateway CDMA2000 All-IP CN product series
70 NEW PRODUCT
vice and streaming media service. In
NEs of GSM and CDMA networks a pioneer of 3G technologies through
addition to the services specified in
unchanged. It solves the problem close cooperation with global
the related protocols, ZTE CDMA2000
with the bi-directional roaming be- operators. ZTE will launch more,
All-IP CN products can also offer vari-
tween GSM and CDMA networks. It better products and service appli-
ous featured services according to the
can offer all basic functions and some cation modes to meet the demands
requirements of the operators and the
special functions of the CDMA net- of the customers, and will strive
network characteristics. The follow-
work to GSM subscribers. It can also to build strategic alliance with glo-
i n g t a k e s G o Ta a n d G G G a s
offer all basic functions and some bal customers to bring 3G to a shin-
examples.
special functions of the GSM network ing future!
GoTa is the new generation of digital to CDMA subscribers. The subscrib-
(Chen Ji, Liu Shaoyong, Ma Qianli)
trunking communication system de- ers of the current network can use
veloped by ZTE. It is based on the the services of the two networks
CDMA technology. The GoTa digital without changing the subscriber
trunking communication system in- number, achieving the bi-directional
tegrates public-network trunking and fusion. Currently, the ZXC10-FLR/
professional scheduling. This im- AUC has seen its successful appli-
proves the overall competitiveness, cations in Asia, CIS, and America
attracts more professional and social markets.
trunking users, and increases the
operating revenue.
ZTE TECHNOLOGIES 07
tem voice, data and integrated
services was completed, repre-
senting a success of the R&D on
the CDMA2000 1X system;
08 ZTE TECHNOLOGIES
In May 2005, “ZTE CDMA Global international communication tycoons CDMA network projects, have a ac-
demo” was successfully initiated Alcatel and Nortel, a great number of cumulated rich experiences in net-
in Oslo, Norway, and refined core patents, and the CDMA tech- work planning and optimization, and
CDMA2000 networks constructed nologies that take the lead in the in- have initially developed CDMA net-
by ZTE will be presented in differ- dustry lay a firm foundation for ZTE’s work optimization system and various
ent regions around the globe, em- goal to “Strive to build up global network planning and optimization
bodying that an internationalized CDMA brand No. 1”. software tools. What merits special
“CDMA Dragon” has been soaring. attention is ZTE’s presentation in the
All-service end-to-end solutions:
construction of the network of China
ZTE CDMA holds a superiority of pro-
70 SPECIAL REPORT
Low cost: Large-scale production and message service, and characteristic
taking projects around the globe.
sales, continuous improvement of cost services can also be customized in
time to satisfy customers’ special In addition, the CDMA team of ZTE is a
and low labor cost ensure its low-cost
requirements, to help operators en- powerful team with true technologies. The
competition superiority; and the world-
hance their competitive edge by advanced processes ensure high effi-
wide localized R&D and production bases
invested by ZTE with generous fund, such means of service differentiator. ZTE ciency and quick response in R&D,
as those completed at the beginning of is in a position to provide a complete production, quality, pre-sales and after-
this year in India and Pakistan, with lo- set of base station system, core net- sales services, logistics systems and so
cal employees used, help lower the cost work system and packet core net- on. A powerful production capacity of
during the service process. work system, and also high-, mid- and more than 15 million subscriber lines per
low-end mobile phones and fixed year; as many as nearly 2000 profes-
Continuous technical innovation:
terminals, antenna feeder system, sional engaged in R&D, more than 1000
Continuous technical innovation has
optical transmission, microwave persons dedicated to pre-sales and af-
brought about abundant fruits. The
transmission, BWA (Broadband Wire- ter-sales technical support; a perfect and
technical indexes of All-IP series
less Access) transmission, satellite healthy industrial chain; strategic partner-
products launched by ZTE in 2004 are
transmission, power and battery ship with internationally celebrated
still taking the lead up to now among
system, solar energy system, and manufacturers; wide finance channels
ZTE’s competitors in the industry. The
even towers and shelters, etc., to and good relationships with the
BSC that features the largest capac-
meet diversified requirements of dif- government; all these form a competi-
ity and data throughput in the CDMA
industry, super BTS that supports 120 ferent customers. tive edge for ZTE CDMA in its course
ZTE TECHNOLOGIES 09
provinces, occupying a market share In the beginning of 2004, ZTE was organized by the Ministry of Informa-
of 7.55%, for the first time in the his- awarded via tendering with a tion Industry of China; in July 2005, it
tory of China mobile communication, project of 700 thousand-line net- successful provided service to the
and representing the local manufac- work by Indosat, Indonesia, cov- Sixth Asia-Europe Finance Ministers’
turers to enter the main stream sup- ering Jakarta and other important Meeting held in Tianjin, China.
plier rank of China Mobile market for areas like Surabaya;
the first time. Because of its outstand-
From 2003 to 2004, ZTE undertook Episode 4: Prospect
ing presentation, ZTE held a much
the 450MHz CDMA2000 1X net-
larger market share in the subsequent
work of VPT in Viet Nam, cover- “A good sword is perfected in 10
November 2005 Issue
benefits, and ZTE is thus praised as countries. trunking system with the widest appli-
10 ZTE TECHNOLOGIES
Innovations Drive GoTa Growth
GoTa is the world’s first CDMA-based is its professional trunking functions on ogy patents. This innovation will pave
digital trunking system developed by the basis of the CDMA technology. Why the way for the development of GoTa.
70 SPECIAL REPORT
fessional trunking functions, satisfying
will ensure larger network capacity GoTa features innovation on the origi-
requirements of both private and public
and wider network coverage with the nal digital trunking architecture. The
trunking network applications, and also
same spectrum bandwidth, allowing original digital trunking employs cir-
allows integration with value-added ser-
more economical and more effective cuit switching mode; but with the
vices and more functions, hence more
network construction for operators. evolution of networks to the next gen-
attractive to customers. In addition,
High-rate bandwidth supports smooth eration networks, IP packet will be
GoTa features a good industry alliance,
evolution to the next generation selected for future development.
low cost of the system and terminals,
networks. The CDMA-based GoTa is GoTa takes the lead in using the IP
less investment, quicker effects and
different from the traditional trunking packet technology to offer a relatively
lower operation cost. As a result, GoTa
solutions, for instance, fast independent PTT dispatching system
is a digital trunking technology that fea-
connection, which has been short- that provides easy management and
tures both the most advanced technol-
ened to within 1 second; service unified interfaces, and meets the de-
ogy and competitive edge and potential
channels can be shared, so that in velopment trend of communication
market share internationally at present.
case of a group call, no matter how technologies.
The reason why GoTa is called a new many subscribers there are in the
sharp weapon in the field of trunking group, they can share one channel.
technology is that not only it applies In addition, trunking subscribers are Innovation 3:
the CDMA technology in the trunking provided with priorities, and this is Powerful extended
field, but also it makes innovation in different from the common mobile services, and
an all-around manner from system to communication system. customized solutions
terminal, from service to application
The ZTE GoTa technology solves the The original digital trunking provides
and from architecture to alliance.
problems that must be solved in ap- only one type of group call, namely,
plying the CDMA technology to the the traditional trunking call. In the tra-
professional trunking, and provides ditional trunking call, there is actually
Innovation 1: World’s
the first solution for CDMA profes- no information interaction between the
first CDMA-based
sional trunking communication in the system and a subscriber, so it is diffi-
professional trunking
world, of which as many as a hun- cult to deliver extended services. GoTa
technology
dred of technologies and services provides an enhanced trunking call
The greatest technical innovation of GoTa have been applied for core technol- mode on the basis of the traditional
ZTE TECHNOLOGIES 11
trunking call service. This is another velopment of a GoTa industry alliance possible for operators to quickly enter
innovation of GoTa. Featuring power- while intensely promoting the appli- the market and generate profits.
ful interaction, this enhanced group call cation of GoTa around the globe. Now
Attention should be drawn to such a
mode allows real-time monitoring of the entire industry chain involves
fact that the ever-growing GoTa in-
each subscriber state, thus ensuring equipment manufacturers, industry dustry alliance is promoting the birth
service reliability and extensibility, and application solution providers, content of a new standard of digital trunking
providing many new functions such and service providers, and network technology of the global main stream.
as online state query, LBS (Location- operators in the industry.
Based Service) and FCN (Fail Call It is just innovation taken by GoTa as
In terms of system industrialization, the impetus to its development since
Notice) and floor queue.
November 2005 Issue
secondary development platform for Up to now, there have been instances isfy users’ requirements for differen-
industry application, so that operators of GoTa trunking systems developed tial services that GoTa received ac-
may be satisfied with private network by some manufacturers via using the tive response once it was launched.
management and differential services standards and specifications of the In China, as early as in 2003, ZTE en-
in future development. GoTa trunking system. tered cooperation with China Railcom
GoTa provides a completely new per- In terms of terminal industrialization, ZTE and China Satcom.
spective for the service application possesses its own GoTa series At present, commercial trial networks
in the trunking field, realizing perfect terminals, and also enters cooperation have been set up in Shenyang,
integration of multiple value-added with terminal manufacturers such as Changchun, Tianjin and Jinan. In the
services such as voice, images, data SouthTec, Guanri, Youth Network, meantime, the international market
and location, meeting the ever-in- Hengxin, etc., so that delivery of termi- is also an arena for GoTa to present
creasing service requirements of dif- nal products and products in series can itself. In 2004, GoTa was put into
ferent subscribers, and allowing op- be ensured from multiple commercial applications in Russia
erators wider application spaces for manufacturers. Currently manufacturers and Malaysia respectively; later, GoTa
greater benefit and value. of the alliance have launched tens of marched into Europe, the utmost
GoTa trunking terminals that may sat- core of digital trunking-cooperation
isfy requirements of high-, mid- and low- with operator NMAB, Norway, and
Innovation 4: end users, involving common GoTa mo- deployment of digital trunking net-
Establishing a bile phone, bar-type mobile phone with works in Sweden and Finland, ush-
mature industry three-proof functions (water-proof, dust- ering digital trunking technology of the
alliance from system proof and shock-proof), vehicle-mounted new generation into Europe. In
to terminal station, DTU (Data Transmission Unit) addition, ZTE has cooperated with
and wireless modem card. operators of over a dozen of coun-
GoTa is a new system introduced in tries such as Brazil, Turkey, Egypt,
the trunking field. How it would be As to service platform, ZTE has estab- and India to deploy GoTa networks.
grown and developed would largely lished partnership with over 100 value- We may be safe to predict that, with
rely on a healthy and favorable indus- added service SPs and industry appli- upgrading of the global digital trunking
try alliance at the beginning of its cation integrators, launching multiple system, GoTa will be further and quicker
development. With this in mind, ZTE practical GoTa services, such as LBS, developed, and will rank first in the digi-
spared no effort to promote the de- multi-ISP access support, making it tal trunking field.
12 ZTE TECHNOLOGIES
All-IP in CDMA2000
70 NEW SOLUTIONS
interfaces, the All-IP interface proto-
hancement of IP bandwidth have Some people hold that All-IP is simul-
col stack is different from IPoA. The
brought about fundamental change to taneous IP implementation of all NEs,
All-IP protocol features higher effi-
the situation. The superiority of IP, while some other people hold that All-
ciency and easier networking. In
which features wider foundation of IP is just IMS. Actually, however,
terms of internal architecture, All-IP
application, is getting more and more these views are somewhat one-
is also quite different from ATM. The
explicit. 3GPP and 3GPP2 have sided. Viewed from the intention of
internal architecture of All-IP shows
worked out procedures for evolution the industry in promoting All-IP in 3G,
obvious superiority in its throughput,
to IP respectively. The reason why All-IP products have the following
industrialization and networking
“All” is emphasized in All-IP is to give features:
flexibility. CDMA2000 of ZTE is a real
prominence to its completeness,
All-IP product, as it externally pro- 1. An IP interface is used between
while ATM will be put aside gradu-
vides All-IP interfaces as well as the two NEs, giving prominence to “All”
ally to fade out in the end. There is
traditional interfaces; while internally, IP, in a bid to exclude any hybrid pro-
no doubt about this now. For
since it is based on the All-IP switch- tocol whose functions are overlapped
example, the evolution of 3GPP from
ing architecture, it is in a position to with those of IP, such as IP over ATM.
R99 and R4 to R5/R6 is just an obvi-
better and faster construct customer-
ous process of evolution from ATM 2. The network architecture is in com-
oriented large-capacity networks.
to IP. 3GPP2 has defined a process pliance with the requirement of
of evolution to All-IP in four phases, 3GPP2 All-IP NAM.
so as to realize all-around IP imple-
1. What is All-IP 3. The internal architecture is based
mentation from CN and RAN to
on IP, to meet the requirement of NE
Earlier, ATM was first selected as a terminals; meanwhile, IP transport
splitting.
network technical standard for 3G, technology is selected for WiFi and
because ATM was considered as WiMAX networks at the very begin- In the 3GPP and 3GPP2 standards,
being superior in ensuring higher QoS ning of their definition, and All-IP net- procedure of evolution to All-IP by
when it comes to coexistence of works complying with 3G are real- phases is clearly specified, with an
ZTE TECHNOLOGIES 13
stack will be IP/UDP/Ethernet. These
are basic protocol types the existent
IP network router supports, so they
can easily be integrated into the ex-
istent IP network. But the IP over
Fig.1 RAN and CN can Be Migrated to All IP in Different Time
ATM protocol is generally IP/AAL5/
ATM, and the link layer still relies on
ultimate aim of bearing all the ser- construction, it will be of much ben- ATM, but devices on the existent IP
vices over IMS. But, since IMS is only eficial to upgrade NEs with mature network generally do not support the
an overlap domain on the All-IP conditions as early as possible. It is above protocols.
network, imposing no influence on the especially recommended to select
In respect of reference model of pro-
packet domain, circuit domain or tra- RAN of All-IP architecture for network
tocol stack, IP and ATM are respec-
November 2005 Issue
whether IMS exists will not prevent greatest portion of the investment in the two feature overlap in many
the packet domain and circuit domain the entire network, so construction aspects. For example, either of them
from becoming an IP network. of All-IP RAN at one go will save a has its own independent addressing,
great deal of cost for upgrade in the while using completely different
The 3GPP2 All-IP architecture stan-
future, hence saving investment. switching or routing mechanism; in
dard stipulates that, as a foundation
70 NEW SOLUTIONS
14 ZTE TECHNOLOGIES
able lengths, allowing thick transport at low cost. In comparison, expan- a most important position in the
granularity. The feature of cells the sion of ATM switch will cost a great future, so the waste of bandwidth
fixed length ATM possesses is not deal. As more and more services will resulted from ATM-based transport
only an advantage, but also a run on the same network, redundancy will be a serious problem.
disadvantage, because its multiplex- of switching capacity will become
2. IP is capable of easily performing
ing convergence ratio is low, while even more important, so that more
high-bandwidth transport, hence di-
the multiplexing convergence ratio of services of greater bandwidth can be
rectly improving QoS, whereas ATM
IP can be great for it uses packets of provided, and better QoS can be
costs a great deal in expansion of its
variable length, and its efficiency may ensured. For some NEs, such as
bandwidth. Besides, some new tech-
become higher if compression of BSC/RNC, the greater their capacity
nologies will greatly improve IP QoS.
packet headers is implemented. and the less inter-network
switchover, the better radio network 3. IP has a far better industrial foun-
70 NEW SOLUTIONS
be a trend in network construction:
ATM-based technologies will be-
tecture of the product is the Each NE will become much smaller,
come greater and greater in the
essence. The main feature of a prod- there will be more and more NE
future.
uct based on the All-IP architecture types, and All-IP interfaces will be
is that it internally uses IP packet used between any two NEs. Only the
switching, and the internal process- use of IP architecture within NEs will 5 ZTE CDMA2000All-
ing unit is also based on IP packet, be able to adapt to this change of IP Solutions
while in a product based on ATM situation, and to satisfy requirements
architecture, the ATM switch is the of multiple NEs under the circum- As an active advocator of 3G All-IP,
core, and the intra-NE processing unit stance of the same architecture. ZTE has constructed a unified All-IP
will also have to process ATM cells. architecture of core network, RNC/
BSC and Node B/BTS long before, so
Even if their external interfaces are
the same, products of the two archi-
4 Others Superiorities ZTE is one of the manufacturers in
ZTE TECHNOLOGIES 15
ZTE is a real All-IP product.
maintenance.
16 ZTE TECHNOLOGIES
tion services and information
contents, the bearer of 3G network
will become meaningless.
Mobile operator
Subscriber
Equipment/software provider
70 TECH
A perfect value chain is the major
condition for the success of an
operator. In the future, the competi-
will become similar to the value chain of revenue. For data service, the tion in the mobile market will be in-
FORUM
in the data communication industry. mobile communication infrastructure creasingly fierce. How to stand in
is usually used to transfer and carry such a competitive market? The ser-
In the age of traditional 2G mobile
subscriber data. If no data commu- vice model of 3G is much more than
communication, the voice traffic ac-
nication network is built over the 3G that of 2G, and it is impossible for
counts for the largest portion of the
network to offer diversified applica- the operator to offer all-around ser-
total traffic, and the largest portion of
operation revenue comes from voice
services. 100% of the operation rev-
enue of the mobile communication
system is taken by network
operators. As an exceptional case,
the service providers (SPs) in Europe
have achieved a certain development.
The SP gets some benefits from the
network operator as a brand distribu-
tor of the later.
ZTE TECHNOLOGIES 17
vices to the subscribers. A problem the APs/CPs to offer increasing bile and China Unicom frequently
with any stage of the value chain will abundant services over the network advertise on TV and panel media
have negative influence on the opera- and improve the brand continuously. proves that brand building is very
tion results of the services. Therefore, They begin to loose their control over important to the promotion and de-
it is very important for operators to the brands and allow the APs/CPs velopment of telecom services.
fully understand the whole 3G service to build a certain brands, thus gradu-
Of course, it is impossible to build
value chain and their position in the ally forming the competitive
the brand of a service or product
value chain. situation.
through advertisement bomb only.
At the early stage of the 3G service, In the maturity period, the network These factors are also keys to the
the mobile network operator becomes capability is greatly improved, and the promotion of a service: abundant ser-
the core role of the value chain, and mobile and data services are vice contents, perfect service
leads the development and promo- integrated, so abundant new services support, perfect and reasonable ser-
tion of the whole service market. In are derived. Besides, the mobile com- vice management, reasonable
the market competition, the network munication services become increas- charge policy, enthusiasm of the CP/
November 2005 Issue
operators having exclusive control ingly personalized. The original ser- SP, and so on. Therefore, the build-
over the market build a relatively vice mode in which the network op- ing of a brand is a stepwise process.
stable value chain together with erators or equipment manufacturers
Some simple suggestions are given
many APs, CPs, and terminal offer services can no longer meet the
below for reference.
suppliers. However, the subscriber subscribers' demands. The subscrib-
base is small in this phase, and the ers' demand for fast, personalized, Use the success modes of SMS
big preliminary investment is required, and diversified services inevitably and Color Ring Back Tone (CRBT)
70 TECH
using a unified brand of the operator, center of the value chain, and the tents and applications to form a
aiming to build the brand image network operator is required to ensure virtuous between subscribers and
through market propaganda. the stability, QoS and capacity of the applications. Offer an open ser-
network. The subscriber market vice platform for building a unified
In the growth period, the network
matures, and the market penetration nationwide brand.
operators still take the leading posi-
tion in the value chain. They provide reaches a high degree. Understand the risks in the con-
unified wireless access and network 2. Brand Strategy of Carriers tent operation, draw lessons from
bearer services for the APs/CPs and The operation in any industry will the previous operation, and
end users. The target market begins evolve to the high competitive stage strengthen the management on
to accept the mobile data service of brand operation. Brand operation SP and contents.
mode, and the subscribers become is the lasting competitive advantage Build competitive differentiators.
increasingly dependent on the mo- of the telecom operator. A success- The China Mobile's practice in pro-
bile data service. In addition to per- ful brand operation help to effectively moting the ”M-Zone” brand
fecting the QoS of the network, the reduce the marketing cost of the proves that the SMS has a big
network operators also make deep operator, win loyalty of the market demand among the young
market research and analysis. They subscribers, and face the market people of 16-25 years old, which
research new services together with competition. The fact that China Mo- has a far-reaching meaning in cul-
18 ZTE TECHNOLOGIES
tivating future high-end SP by taking the SMS as an key problems with the service provi-
subscribers. example. Currently, the “Monternet” sion process.
70 TECH
quires a large number of CPs/SPs
customization. Fortunately, this prob-
contents is not embodied, the CP to participate in the value chain to
lem has drawn attention from the
becomes inactive. This results in the offer abundant attractive contents,
operators, which have established
lack of contents and makes the ser- so the problems with the SMS shall
their own terminal customization and
vice less attractive to the also be highlighted during the mul-
procurement companies.
subscribers. In this case, it is fore-
FORUM
timedia service.
seeable that it will be even more dif-
Therefore, telecom operators need to
ficult to offset the loss due to free 3 Suggestions on the
strengthen control over the service
contents with the profit of the SP.
provision and charging process of the Multimedia Service
The value of the CP shall be clearly
SP, and properly handle the relation-
Operation for Carriers
embodied and protected.
ship between the punishment on the
In the current telecom service op-
When the service evolves to a cer- SP and the sound development of the eration environment, the telecom
tain phase, the position and impor- value chain, which are the important operators are required to build and
tance of the CP/SP will become higher tasks for strengthening the eco-envi- manage industry chain because of
and higher in the service value chain. ronment dominated by the telecom either their need or external physi-
After that, the focus will be on how operators. cal condition. However, it is hard
to manage and assess the CPs/SPs
4. A Way to Offer Sufficient to build a healthy and prospective
in a unified manner to integrate them
Terminals for Service Provision industry chain only through the ef-
into the value chain for joint
During the current service provision forts of the operators. The indus-
development.
process, most of the operators reflect try chain can achieve effective and
The following describes the neces- that the terminal support for the ser- healthy development only when
sity of managing and assessing CP/ vice is insufficient. This is one of the the enthusiasm and power of each
ZTE TECHNOLOGIES 19
link in the industry chain are link will be out of control. We still take sibilities of the operators are to
mobilized. the SMS SP service in the age of 2G offer reasonable, transparent op-
as an example. The negative effect eration and maintenance plat-
Thanks to the active promotion of
exerted in the early development forms (charging, settlement,
the operators, the preliminary model
stage of the SMS SP service almost measurement, analysis, and so
of the industry chain required for the
destroys the currently vigorous on) for the numerous CPs and to
development of multimedia service
industry. Fortunately, the operators offer satisfactory service experi-
has been formed, but many efforts
made timely adjustment and planned ence to end users.
are still required to make it healthy
well the development and manage-
and effective. Owning to the lead- CP is an indispensable and key
ment modes of the industry chain and
ing position of the operators in the role in the industry chain of the
played the leading role.
industry chain, many CPs/SPs have multimedia service. The opera-
participated in the corresponding According to the above analysis, tors are required to understand
link in the industry chain. But only there is no doubt that the operators the position of the CP. According
a few CPs/SPs play the positive play a leading role in the industry to the NTT DoCoMo's success
chain. However, in the upcoming experience of 3G service, it is
November 2005 Issue
opment space, and they will become of powerful CPs/SPs. many reasonable proposals from
less enthusiastic, and the industry them. This greatly mobilized the
The following are our suggestions on
chain become less elastic. In this CPs enthusiasm in service
the roles in the upcoming industry
case, the CPs/SPs primarily provide provision. As a result, several
chain of 3G multimedia service.
contents, though they form an impor- thousand CPs participated in ser-
The operators positively and rea-
FORUM
tant or even key link in the industry vice provision during a very short
sonably playing the leading role. period of time.
chain. Besides, it is difficult for the
They provide a powerful manage-
CPs/SPs to get key data such as the To stimulate the enthusiasm of
ment support platform and build
use times and environment of the the CPs, the operators should al-
a reasonable industry chain. While
contents and the favorites of the low the CPs to reasonably par-
promoting their own multimedia
subscribers. This closes the commu- ticipate in the whole service
service brands, the operators
nication channel between the CPs/ process, for example, download
should also allow the powerful
SPs and the subscribers and greatly statistics, transparent
CPs to promote brands, to make
affects the enthusiasm of the CPs/ settlement, joint service
the later enthusiastic in service
SPs. This is essentially different from promotion, and user experience
provision. It is impossible for the
the prosperous CP/SP SMS in the age investigation. The CPs should
operators to play multiple roles in
of 2G. also have a certain right to se-
the upcoming multimedia service.
lect services. The operators should
On the contrary, if the operators per- The contents should be provided
negotiate the service provision
form too loose management on the and fragmentized by CPs. In
with the CPs instead of determin-
industry chain. This may result in lack addition, the work of each role in
ing it solely.
of a role maintaining the industry the industry chain of the multime-
chain, and the development of each dia service is definite. The respon- (Feng Jun)
20 ZTE TECHNOLOGIES
a n d H a n o i Te l e c o m , t w o n e w
operators, chose CDMA as well to
build up their network and to make
balance between 2 lines of mobile
communication technology CDMA
and GSM. The point is just which line
can emerge to win the market.
70 TECH
pare the network quite completely
FORUM
infrastructure, existing national wide
transmission core network. Services
Vietnam Telecom market is now a 1 CDMA Application strategy was set up right from the
place of spectacular competitions in Vietnam initial phase and to date, the support-
attention with the highlighted charac- ners (formed Sfone) became the first seems the large range of utilities is
teristics but still in the process to operator in Vietnam using CDMA looking forward to being commercial.
solve many typical problems. It’s technology. The market seems hot- CDMA line of mobile communication
considered as potentiality to give out ter by psychological comparison in in Vietnam may be reinforced by the
more attractive services. The highly term of users, by services and tariff participation of Hanoi Telecom. The
business-effective solutions such as race at operators’ side. It’s the first huge plan of the Business Coopera-
wide coverage solution, GoTa solu- step to ruin the monopoly power in tion with Hong Kong operator,
tion and EV-DO solution, are proposed Vietnam Telecom market generally Hutchison, immediately fosters other
by ZTE based on the advanced 3G and mobile communication service CDMA and GSM operators, speed-
ALL IP platform. in particular. In addition, VP Telecom ing up their business plan. It is ex-
ZTE TECHNOLOGIES 21
pected to be new choice of users by to 64/64 provinces, new operators in able thing for users is service, so
the end of 2005. particular and CDMA operators in CDMA operators have to grasp
general just approach to several clearly this technology’s strength if
All CDMA operators are endeavoring
population-densed regions. Sfone they want to get easier than GSM
to make full use of technology
launched its services with 13 prov- competitors in deploying new value
advantages, which would quickly bring
inces covered, merely focused on added services.
them to be equal in term of service
some cities around Hanoi and
availability. Two GSM veteran networks So far, the social purpose has been put
Hochiminh city, it isn’t continuous
of VNPT, Vinaphone and Mobifone, as the highest priority; it means such
communication among these areas
account for nearly 90% market share a wide coverage as possible and a good
as well. VP Telecom takes advantage
with over 3.5 million subscribers while enough quality of basic services. At the
of existing infrastructure to push up
Viettel Mobile GSM subscribers and same time, impacting the market by
their network construction in the north,
Sfone CDMA subscribers account for the killer application is necessary. Sev-
the south and the central area
about 5% mobile market share. eral solutions are proposed including:
simultaneously. Almost 50 provinces,
However, the proportion of CDMA sub- wide coverage solution, GoTa solution,
big cities, main roads, national high-
scribers is still negligible. EV-DO solution based on ZTE’s All IP
November 2005 Issue
reason that leads the poor perfor- basic services such as voice, SMS, and full range of product portfolio, en-
mance of any one. All the Vietnam- VMS are major source of income. abling operators to build elaborate 3G
ese CDMA operators are facing the There is no dominant point and the CDMA networks and enhance their
same typical problems of a new tariff war is unavoidable. market competitiveness. CDMA op-
player. From the general view, there erators in Vietnam get a lot of oppor-
CDMA operators in Vietnam need to
is no impression to break through the tunities to acquire the latest technol-
pay more attention for network cov-
conventional user predilection; from erage and new service supporting, ogy innovation and enhancement, al-
the technical view, they are running especially to support new services though they have started but the ori-
out of the outstanding services, ter- such as high speed data, multime- entation to migrate to the ALL IP trend
minals and coverage. dia services, Push to Talk, etc, build- is foreseeable.
ing an elaborate CDMA network to 3.1 Wide coverage solution
Coverage is always an important fac-
capture more market shares. The ever-intensifying competition in
tor that new subscribers take into
account when choosing old operators market makes the seamless mobile
or new one as well as requiring costly services essential for operators in the
3 ZTE proposal for
investment and time consuming. construction of mobile communications
CDMA operators
While GSM operators’ network cover networks. As the market leader in
almost important areas and extend Besides the tariff, the most remark- CDMA, ZTE has accumulated much
22 ZTE TECHNOLOGIES
terms of coverage range;
70 TECH
downlink transmitter power by ad- by digital trunking system as the
Ensuring the wide continuous cover-
justing the transmission parameters branch of mobile telecommunication
age is the most costly requirement of
downlink, decrease 3dB of feeder system satisfied the group commu-
mobile system. The wide coverage
loss with the top-mounting mode, nication demand of the group users
solution has been enhanced by ZTE’s
equivalent to the macro BTS in such as transport companies,
adequate radio equipment series rang-
FORUM
ing from indoor and outdoor, macro
and micro BTS, Remote RF station,
repeater to the series of super far cov-
erage micro BTS and Super far cover-
age RF remote station. These equip-
ments would be deployed flexibly up
to the actual terrain. For instance, in
the delta areas or the central region of
Vietnam, it is plain area, quite flat, no
obstacle; therefore, ZTE suggests 4
solutions:
ZTE TECHNOLOGIES 23
hospitals, hotels, military, exhibition protocol stack. As the system takes potential market sectors while they
and conference sectors, traffic con- the existing standard architecture and are getting trouble with frequency al-
trol systems, public services sector, protocols of CDMA2000 that enables lowance as well as self-investment
emergency and community operators to integrate trunking sys- and bring out the convenience to in-
administration, etc. Conventionally, it tem into the existing CDMA2000 net- dividual subscribers to enjoy PTT and
requires constructing each work and provide both PTT services CDMA 2000 service.
organization’s own system, fre- and CDMA2000 services simulta-
3.3 EV-DO solution
quency band and dedicated neously without building up a sepa-
From the service point of view, com-
terminals. rate system. Fig.2 is the integrated
paring to GSM operators, CDMA play-
network structure:
ZTE has been developed indepen- ers should exploit the available ca-
dently a digital trunking communica- It realizes the functions of forward pability of data services. Wireless
tion system based on the Third Gen- channel sharing and quick access Broadband Internet Access is typical
eration (3G) wireless communication for professional trunking service. At and can break through these sectors
technology - CDMA2000 1X, named the same time, ZTE introduces ter- by employing plenty terminal types
G o Ta ( G l o b a l o p e n Tr u n k i n g m i n a l s a s w e l l i n c l u d i n g G o Ta such as handset, PCMCIA data card,
November 2005 Issue
architecture) system. GoTa can pro- handset, desktop and vehicle USB data card, etc. Multimedia ser-
vide the following trunking services: mounted terminal that support both vices such as video phone, online
one-to-one private calls and one-to- PTT and CDMA2000 services includ- game, broadcasting, etc. are all
many group calls; special services ing abundant and professional based on high-speed data ability. ZTE
such as system paging, group trunking functions, normal voice evolves the system in the
paging, sub-group paging and special service, short message service, lo- CDMA2000 family, supports EV-DO/
70 TECH
PTT; and classification of different traf- cation and high-speed radio packet EV-DV as be shown in Fig.3, several
fic groups such as permanent group data service. It also provides wire- new interfaces, a dedicated carrier/
and temporary group. less data collection/transfer, video sector and AN-AAA server are
monitoring and other industry/busi- adopted:
The system optimizes and improves
ness solutions.
the standard Air Interface of The advantage is that it is backward
FORUM
CDMA2000, and defines the corre- In Vietnam, GoTa solution will enable compatible with CDMA2000 1X, op-
sponding system architecture and CDMA operators to exploit the great timizes data speed without affect-
ing the operating network, and EV-
DO/EV-DV processing part can reside
in parallel with CDMA2000 1X pro-
cessing part at BSS side.
Accordingly, it enables the operators
to deploy 1xEV-DO service on the
existing CDMA network at a lower
cost and maximize the investment
value of the equipment. Till now, EV-
DO terminals, dual-mode
CDMA2000 1xEV-DO terminals,
handsets and data cards are
available.
24 ZTE TECHNOLOGIES
BRIEFING
ZTE TECHNOLOGIES 25