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We’re Ready to Enrich the World with ZTE Products and Services

As the New Year rings in, we interview Fan Qingfeng, executive vice president of ZTE Corporation. Fan Qingfeng is responsible for global marketing and sales and shares his views on the prospects of wireless technologies, engineering services, green revolution, and customer services.

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LTE Business ModelIn the foreseeable future, LTE business models may be found in high-speed and high-bandwidth Internet services, mobile Internet platforms, on-line wireless communities, and M2M communications.

Business Opportunities in TD-LTE The abundant spectrum resources, technical advantages, and flexible networking features of TD-LTE may translate into great market opportunities. As the industry chain matures, TD-LTE has promising commercial prospects.

LTE-A: Trailblazing Towards 4G

Solution

LTE Network Design and Deployment StrategyThe pace of LTE development has quickened, and people have high expectations. However, it is a new technology and the whole industry needs time to optimize networks and develop mature terminals.

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� ZTE TECHNOLOGIES February �011

Editorial BoardEditor-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

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ZTE ProfileZTE is a leading global provider of

telecommunications equipment and network

solutions. It has the widest and most complete

product range in the world—covering virtually

every sector of the wireline, wireless, service

and terminals markets. The company delivers

innovative, custom-made products and

services to over 500 operators in more than

140 countries, helping them achieve continued

revenue growth and shape the future of the

world’s communications.

Success Stories

CSL: LTE Creating Blue Ocean Opportunities With a bit-cost advantage over 2G and 3G technologies, LTE can greatly reduce network deployment costs and increase an operator’s profit margin. For CSL, LTE is the ultimate technology for implementing a “blue ocean” strategy.

VoLTE Takes Off at Mobile Asia Congress 2010

Third Eye

Global IMS Market 2010During 1H10, estimated 18.8 million IMS subscriber lines were shipped for deployment in wireline networks worldwide. Ericsson leads the market with 24% share worldwide followed by ZTE with 22.3% and NSN with 18.9%.

News Brief

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�ZTE TECHNOLOGIESFebruary �011

Mr. Fan Qingfeng, executive vice president of ZTE corporation

By Zhao Lili

We’re Ready to Enrich the World with ZTE Products

and ServicesAn interview with Fan Qingfeng, executive vice president of ZTE Corporation

Du r i n g t h e y e a r 2 0 1 0 , c l o u d computing, M2M, LTE, mobile I n t e r n e t , a n d t r i - n e t w o r k

convergence are in the spotlight. Although some of these technologies are still in the concept stage, they are attractive because of their potential to being enormous c o m m u n i c a t i o n b e n e f i t s . C o m p l e x businesses are underpinned by strong networks and green networking is the most practical way of dealing with difficulties arising from decreasing resources. To survive and develop, suppliers have to improve their capabilities.

As the New Year rings in, we interview Fan Qingfeng, executive vice president of ZTE Corporation. Fan Qingfeng is responsible for global marketing and sales and shares his views on the prospects of wireless technologies, engineering services, green revolution, and customer services.

Reporter: LTE is now widely seen as the evolution path for wireless networks. Could you tell us about ZTE’s progress on LTE and its successful commercial cases?Fan Qingfeng: Without question, LTE will be the investment trend of the future. ZTE is continually expanding investments into LTE and its future evolution. We have

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nearly 4000 R&D staff in Xi’an, Nanjing, Shenzhen, Shanghai, Europe, and America working on 4G. LTE R&D accounts for 40% of our total investments in the wireless sector. ZTE has worked with global operators to positively push LTE commercialization and has deployed 12 LTE commercial networks and 65 trial networks in Europe, America, Asia Pacific, and the Middle East.

Our cooperation with Hong Kong’s CSL to launch an LTE ne twork was a great success. Hong Kong’s popu la t i on dens i t y, skysc rape r forest, and clustered CBD make for an extremely complicated wireless environment. Constructing large-scale wireless networks there is challenging. However, with strong support from CSL, and wi th our eng ineer ing experience and technological research capabilities, we succeeded in deploying the world’s first LTE/DC-HSPA+ commercial network. We are proud of this accomplishment. Data traffic in CSL’s network has increased 65 fold, and now comprises 80% of total network traffic. The network covers 50% of Hong Kong’s population. LTE/DC-HSPA+ is the best model for accommodating both 3G and 4G networks. This network will lead CSL into a new era of mobile broadband for business and entertainment and will put Hong Kong at the forefront of global telecommunications innovation. It is a pacesetter in the industry in terms of the complexity of the wireless environment and technology of choice.

ZTE also leads in LTE innovation. As of November 2010, ZTE held 235 essential patents for LTE, 7% share of the total LTE essential patents declared on the Intellectual Property Rights (IPR) onl ine database of the European Telecommunications

Standards Institute (ETSI). This is quite an achievement because it indicates we now have more say in topics concerning LTE.

We are also aware that LTE is never a simple wireless network upgrade but is revolutionary for user experience and requires changes to be made to terminal, access, bearer, core network, and service applications. Operators are concerned about whether equipment v e n d o r s c a n p r o v i d e t o t a l a n d integrated solutions when constructing an LTE network. With a flexible and robust SDR platform, a series of access and bearer products, the industry's largest capacity core network platform, and strong terminal customization capabilities, ZTE is an ideal partner for LTE construction. We have deployed more than 100 SDR-based wireless networks worldwide. Every one of these networks supports evolution to LTE. We are very confident that our LTE products will maintain their leading status well into the future.

R: As the global economy develops and operators raise their expectations, telecom engineering projects are becoming increasingly complicated. More and more importance is being placed on engineering services and project delivery. How do you view ZTE’s capability in these areas? What level is ZTE at in terms of worldwide project delivery?Fan: As the global telecom sector g rows , and marke t compet i t ion escalates, operators expect much more from their equipment and service suppliers. The range and content of project delivery is changing. We continue to expand our services from equipment installation, debugging, and maintenance at the earliest stage, to full turnkey project delivery, managed

The technology gap among equipment suppliers is narrowing, and engineering services and project delivery are an increasingly important area of differentiation. Quality project delivery can give an operator the advantage of quick entry into a market while excellent services allow an operator effective control over OPEX and CAPEX.

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services, and professional services. Our professional services include network planning and optimization, maintenance and repair, communication guarantee, and security consultation. The technology gap among equipment suppliers is narrowing, and engineering services and project delivery are an increasingly important area of differentiation. Quality project delivery can give an operator the advantage of quick entry into a market while excellent services allow an operator effective control over OPEX and CAPEX. These enhance profitability and core competi t iveness for an operator and determine the success of an operator’s brand.

ZTE is devoted to providing its partners with fast, high quality end-to-end project delivery. We offer industry-leading custom-made turnkey solutions, helping operators lower their Total Cost of Ownership (TCO) and increase their Return On Investment (ROI). To enhance logistics efficiency, we have built a complete global logistics network with several cargo transfer centres. This makes it possible to deliver quick and agile services in response to market fluctuations. Currently, we have more than 10,000 experienced engineers and technicians, over 1,600 Project Manager (PM) experts, and over 3,000 contracted partners around the world. We have the ability to set up a professional project delivery team at short notice. Moreover, we have built up a state-of-the-art project management system that allows for seamless integration of headquarters systems and distributed clients and enables visualized project management.

ZTE is a well-established service brand. With cutting-edge expertise and professional and integrated service

capability, ZTE is helping its operators build their network brands and quickly add to their commercial value. We completed China’s 3G project in the shortest time and ranked highest in KPI tests. We worked with CSL to build the world’s fastest 3G network in Hong Kong and achieved the best scores in KPI tests. We cooperated with Ncell in deploying 3G stations at the world’s highest point in Nepal and completed the project one month ahead of schedule. We also accomplished a n u m b e r o f o v e r s e a s n e t w o r k construction projects that have been highly recognized by KPN, Telenor, Teliasonera, Etisalat, Telefonica, and Telstra.

ZTE is qualified to build networks in complicated environments around the world. End-to-end delivery is the fourth trump card we have in conjunction with customization, cost leadership, and Chinese capital. It will become one of our core competitive advantages and a major contributor to ZTE’s scale and profitability. It will help us achieve our objective of world-class excellence by 2015.

R : G r e e n n e t w o r k i n g , c a r b o n reduction, and energy conservation are developmental trends in the IT industry. They are also important proof that enterprises are fulfilling their

social responsibilities. What ideas and plans does ZTE have in the area of environmental responsibility?Fan: ZTE has always taken sustainable development and corporate social responsibility seriously. We spare no effort in promoting green management, green culture, green production, and green value chain. “Innovation, convergence, and green” are key in ZTE’s three major developmental strategies. As for green strategies, we have put in place an effective mechanism for uniform management and implementation. All product lines and business units have a team dedicated to energy conservation and emissions reduction. We have set environmental KPI targets for all major products and key business activities, and they are included in annual performance evaluations.

Our green strategy has been fully implemented in all major production and operational activities. Energy conservation is a key component of our green strategy, and emissions reduction is now a driving force for our product and technology innovation. We have incorporated these into the whole process of planning, design, R&D, manufacturing, and logistical support of our products.

For example, we currently provide a variety of competitive power supply


solutions including independent solar power, hybrid solar-diesel power, hybrid solar-wind power, and hybrid so la r-wind-d iese l power. These solutions are applied with careful regard to local climate and weather conditions. We have delivered solar-powered solutions to more than 40 operators in over 20 countries. In 2010, we successfully deployed eight 3G base stations on Mt. Everest using our custom-made, integrated green power solutions in the harsh natural environment. All energy supplied to these base stations comes from solar power, which ensures reliable operation 365 days a year without the need for electricity.

We have a lso adopted energy efficiency measures for administration m a n a g e m e n t . E - o f f i c e h e l p s improve work efficiency, and video conferencing reduces the need for business trips. In production and logistics, we have set up a special team for green materials management. This team is responsible for studying and implementing the Restriction of Hazardous Substance (RoHS) directive and REACH regulations. We achieved QC080000 HS management system certification in 2010 and successfully established a complete HS control procedure involving spare par ts purchasing, product manufacturing, storage, and distribution. This satisfies the requirements of green product shipment and delivery.

Also, we have been actively engaged with international environmental organizations and have won many awards for green innovation. Our broadband universal access system ZXDSL FSAP 9806H was awarded the prestigious “Best Green Innovation” award at Convergence World 2008 at SOFTNET England. The ZXDSL FSAP

9806H has low power consumption, low noise, high reliability, and high integrational capacity. In February 2009, ZTE became a member of the United Nations Global Compact.

R: What do you think about building customer relationships in the current telecom environment? What kind of relationship is ZTE looking to build with global operators?Fan: Traditional business models of telecom operators are being challenged in the current environment. Telecom, IT, media, and entertainment industries are all interacting with each other and full-service operation has become a new trend for growth in global markets. In these circumstances, building customer relationships also confronts new challenges. We have to provide state-of-art products and solutions and satisfactory project delivery, but we are also expected to think differently about building customer relationships.

First and foremost, we need to listen to customer needs. Operators are looking for new technologies, new markets, and new sources of profit. Network equipment suppliers should analyze these needs seriously, offer solutions to issues of concern, and introduce new avenues for creating profit. Building customer relationships involves building trust and gaining recognition from our customers. We need to fulfil every promise we make and deliver more than expected. Customer relationship building does not succeed if customers lose faith in us. I hope we can grow with our customers through cooperation. By continually lowering TCO, we help operators increase network ARPU. By providing quality network coverage, we help operators enhance customer satisfaction and expand their subscriber

base. Hong Kong’s CSL, South Africa’s Cell C, and TELIASONERA’s UCell have successfully partnered with ZTE for win-win cooperation. We hope to establish strategic partnerships and mutually beneficial relationships with our customers so that we can develop together.

R: What is ZTE’s development strategy for the future global marketplace? Fan: We are trying to offer quality telecom products and services to operators, governments, and enterprises around the world. We put much value on the real needs of our customers in providing integrated solutions, effective project delivery, and satisfactory customer service. Thanks to these capabilities, we continually improve customer satisfaction, and can establish strategic partnerships with operators worldwide, especially mainstream operators. Globally, we will continue to enhance our in-depth operation in emerging markets and spare no effort in extending into high-end European and American markets. We will also focus our attention on government and enterprise networks. In 2010, our terminal products experienced rapid growth with a significant 40% increase in shipment and over 100% increase for the European and American market. We will develop more smartphones a n d c o m p l e t e l y e n h a n c e o u r competitiveness. All in all, we are committed to providing customers with satisfactory information services by continuing to improve our innovation, by following up on market requirements, and by prospecting future technological advances and evolution. We are prepared to furnish the world with ZTE products and services and contribute to global information development.

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LTE Business ModelBy Guo Jin

At the LTE World Summit in 2008, the whole telecom industry weighed the choice between LTE and WiMAX. At

that time, LTE was only vaguely understood, and much was made of its fast 150Mbps downlink rate.

At the LTE World Summit in 2009, the industry came to understand the importance of LTE and began discussing the challenges faced by LTE. Such challenges included the 2.6GHz band coverage and voice over LTE (VoLTE).

At the LTE World Summit in 2010, the focus of attention shifted from networking to utilizing LTE for in-service operation with the view of a commercial rollout by TeliaSonera—a tier-one operator in Scandanavia. TeliaSonera’s report on LTE commercial operation has aroused discussion about LTE business models.

Drivers of LTE Radio technologies are moving from voice

to data, from narrowband to broadband, from single-mode to multimode, from multiple technologies to key technologies dominated by OFDM and MIMO. However, there is only one goal underlying these trends: to provide more wireless bandwidth. LTE is an important stepping stone on this evolutionary path.

What has driven the rapid development of LTE in recent years? One of the most important factors has been growing market demands for wireless data services. Users need fast and convenient data services through their terminals, and operators need all-IP networks for high-speed data connectivity. Competition between fixed-line and mobile operators has also driven the evolution of radio technologies. Moreover,

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■ 3G services have grown rapidly, wireless broadband data traffic is surging, and user habits have been fully developed. Sales of 3G terminals and data cards have also grown rapidly.

■ Wireless data revenues have risen substantially and now account for a larger portion of operators’ total income. Statistics collected by Qualcomm from Vodafone, Telstra, Verizon, and AT&T show that wireless data services increased by an average of 30% from 2008 to 2009. These tier-one mobile operators are all running LTE trials. Verizon announced its commercial LTE network in December 2010.

■ Wireless data volume exceeds that of voice, and data revenue is

now greater than voice revenue. CSL, Hong Kong’s largest mobile operator, has seen an explosive growth in data traffic since the launch of commercial HSPA+ in March 2009. CSL continued its LTE cooperation with ZTE, aiming at future mobile applications that can meet strong demands for high-speed broadband services.

■ Trial and commercial LTE plans of competitors should be considered. Tier-one operators, multinationals, and the larges t operator in a country are always leaders in LTE deployment. LTE trials are usually run to build a high-end brand image. The second largest operator in a country also usually develops LTE in order to catch up with or even

Figure 1. Growth of wireless data revenues for tier-one mobile operators 2008-2009.

Tech Forum

the growth of wireless data traffic has brought in more revenue for operators which have, in turn, pushed forward radio technologies. Another driving force has been operators seeking higher benefits and lower costs.

When to Deploy LTET h e t i m i n g o f LT E n e t w o r k

deployment is affected by the progress of LTE standardization and maturity of commercial LTE terminals and systems and also by the economic level , demands for wireless data services, user habits, and spectrum licenses issued by governments. This means the timing of LTE deployment may vary from country to country.

Only deploying at the right time brings the best return on investment. This is fundamental to a profitable LTE business model. As evidenced by the premature deployment of 3G, there are risks related to unfinalized 3GPP specifications, poor interoperability (even between terminals and systems of the same manufacturer), mobility of 2G and 3G, poor coverage, and lack of terminals and services. These issues can well be regarded as a checklist for successful LTE deployment. So too, late deployment might mean that good market opportunities slip by.

How should an operator decide the proper time to deploy LTE? This is a hard question. The following points should be considered:

Only deploying at the right time brings the best return on investment. This is fundamental to a profitable LTE business model.

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￡888M$1.5B

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$4.1B

$2.7B

$3.6B

Jun Q'08 Jun Q'09 Jun Q'08 Jun Q'09 Sep Q'08 Sep Q'09 Sep Q'08 Sep Q'09

Data Revenues (British￡) Data Revenues (Australian $) Data Revenues (US $) Data Revenues (US $)

34% Growth 31% Growth 29% Growth 33% Growth


surpass the leader.

Business Models An LTE network provides a data

rate of up to 100Mbps in the downlink and 50Mbps in the uplink. These high data rates greatly enhance user experience. Studies on LTE business models are ongoing, and recent studies have focused on mobile Internet. In the foreseeable future, LTE business models may be found in high-speed and high-bandwidth Internet services, mobile Internet platforms, on-line wireless communities, and Machine-to-Machine (M2M) communications. ■ High-speed and high-bandwidth

Internet servicesLTE gives users a high-speed

service experience. TeliaSonera carried out a user survey 100 days after it launched LTE. According to the survey, those who subscribed to LTE early had begun to like the technology. Over 90% of those surveyed were originally 3G users and 43% owned iPhones. 65% used LTE to supplement fixed bandwidth and 54% would not consider turning back to 3G. The new technology is shaping mobile Internet usage habits: 26% of those surveyed said they would use their mobile more for work, 23% downloaded larger files than before, 19% would watch on-line TV or streaming movies, and 16% were using Internet more often as a result of subscribing to LTE.

Al l th i s shows tha t users a re demanding better mobile broadband experience whenever condit ions allow. Once they have the improved experience, it is hard to turn back to the lower-rate service. As the old Chinese saying goes, “It is hard to become frugal after being accustomed to luxury.” The emergence of cloud computing is further boosting the

prosperous development of Internet data services. ■ Mobile Internet platforms

From voice only mobile phones to multimedia phones and iPhone and Android terminals, mobiles have tended to develop into Internet platforms. This is also the developmental trend of computers. Terminals are evolving into Internet service platforms where all processing is completed via service plug-ins to the cloud and using a background high-speed mobile data network. ■ Online wireless communities and

M2M communicationsThe ultimate goal of communications

is to connect anything or anyone to anything or anyone from anywhere at any time. New technologies such as network convergence, all-IP, and RFID have made this goal possible. LTE and LTE-Advanced are important stepping stones in the path toward this ultimate goal.

Mobile Internet platforms have been introduced to provide users with fast and easy access to a variety of local and Internet applications. People will change from using fixed terminals to using mobile terminals and from point-to-point connections to online

communities and games circles. With the t rend towards h igh-

bandwidth all-IP networks, M2M technology—which allows the flow of data to be transferred in real time between machines or between people and machines using wireless networks and background server networks―has been commercially deployed in Europe, Korea, and Japan. M2M applications can be found in safety monitoring, mechanical and repair service, public transportation, fleet management, industrial automation, and citywide information networks. Operators currently providing M2M services include BT, Vodafone UK, T-Mobile, NTT-Docomo, and SK. The development of M2M services has just started in China.

ConclusionEvolution in the telecommunications

industry is unceasing. There will b e c h a l l e n g e s a c c o m p a n i e d b y oppo r tun i t i e s . I n t he LTE age , operators and equipment suppliers must understand the latest changes and quickly adapt by preparing for new business models and new sources of profit.

Figure 2. Computers and mobile phones evolving toward Internet platforms.

10 ZTE TECHNOLOGIES February �011

Figure 1. Abundant TDD spectrum resources worldwide.

By Liu Min

TD-LTE

Tech Forum

Business Opportunities in

Abundant Spectrum Resources

Growth in mobile data traffic has brought new profit to mobile operators across the world.

Statistics show that data revenue of Verizon, AT&T, T-Mobile, Vodafone and other mainstream operators has increased by an average of 30%. Therefore, much attention is now being focused on data and broadband services. Obtaining more spectrum resources and increasing spectrum efficiency has become of great importance.

Spec t rum resources for Time Division Duplex (TDD) are abundant. 2.3GHz and 2.6GHz are the most common TD spectrum bands for TD-LTE, but most of these bands are not being used. TDD spectrum resources are available in many countries and available for many operators. Of the 300 operators who have TDD spectrum resources, 66% own 2.3GHz and 2.6GHz bands.

Promising Market OpportunitiesTD-LTE is a t t rac t ing leading

operators around the world. Many of the top 500 telecom operators own a chunk of TDD spectrum and are

vigorously pushing forward TD-LTE development.

China Mobile owns 2.3GHz and 2.6GHz TDD bands and is leading in the promotion of TD-LTE. After completing the fourth phase of its TD-SCDMA network construction, China Mobile will boast the world’s largest 3G network with 220,000 TD base stations by Q1 2011. The operator will call for bids on the evolution of its TD-SCDMA networks in the first half of

2011. Its commercial TD-LTE network is expected to be deployed in one to two years.

Mainstream European operators Vodafone, Deutsche Telekom, KPN, and O2 have a l l acqu i red TDD spectrum and are actively researching TD-LTE technologies and application models. Deutsche Telekom completed its trial TD-LTE network in the second half of 2010 and has started testing the network.

11ZTE TECHNOLOGIESFebruary �011

In June 2010, Qualcomm won India’s 2.3GHz Broadband Wireless Access (BWA) spectrum auction for TDD development in four regions of the country. Qualcomm has promised to set up a joint venture to build an LTE network. This demonstrates that Qualcomm has TD-LTE in its strategic plan.

Mobi le opera tors in the U.S . including AT&T, Verizon, and America Mobil have promised to support TD-LTE. Leading operators in Japan and Korea have also played an active role in promoting TD-LTE. Other operators with WiMAX, PHS (1900-1920MHz), and TD-SCDMA will also choose TD-LTE as their migration path.

TDD spectrum is easy to acquire, and there is less competitive pressure in acquiring it. The price of TDD spectrum in each country is much lower than that of FDD spectrum. Because FDD spectrum is very limited and expensive, more and more operators are considering TDD for feature-rich data services and hotspot area coverage.

Using time division technique, TD-LTE allows flexible timeslot allocation in the downlink and uplink. This meets both voice and asymmetric data needs and greatly increases spectrum efficiency. TD-LTE can share the same core network with an FDD system and can support flexible networking. It can serve as an independent network for hotspots and blind area coverage or as a supplement to the FDD system for data services. LD-LTE has promising and widespread applications.

Fast-Growing TD-LTE IndustryDriven by operators, standardization

organizations, equipment vendors, and chipset makers around the world, the TD-LTE industry is growing rapidly. Members of the Next Generation

Mobile Networks (NGMN) Alliance include China Mobile, NTT DoCoMo, Vodafone Orange, T-Mobile, AT&T, as well as 29 mobile network and terminal suppliers including Ericsson, Nokia, Samsung, and ZTE. Together these companies are actively promoting standardization of TD-LTE. So far, 3GPP R9 specifications have been completed, and the standardization progress of TD-LTE has kept pace with that of LTE FDD. Testing of TD-LTE technology and networking organized by the LTE/SAE Trial Initiatives (LSTI) was first conducted by China Mobile and has produced favorable results.

The TD-LTE industry chain has been established and is growing fast. It comprises chipset providers, terminal providers, infrastructure equipment manufacturers, and testing instrument providers.

Al l ch ipse t providers p lan to launch 3G/LTE multimode chipsets in early 2011. The development of LTE chipsets drives the development of terminal products. Nokia, Samsung, LG, Motorola, ZTE, and Shanghai Bell will unveil a number of LTE terminals

in 2011. LTE TDD/FDD dual-mode terminals will be the mainstream offerings, and this will further promote the flexible deployment of TD-LTE.

Equipment manufacturers Ericsson, Nokia-Siemens, Alcatel-Lucent, ZTE, and Huawei have all developed TD-LTE series equipment that can be applied in different scenarios. These products have been tested in the TD-LTE trial networks of China Mobile and overseas operators. Presently, they support 2.3GHz and 2.6GHz bands and will support 1.9GHz and 2.1GHz bands in the future.

Test ins t rument manufacturer Anritsu has announced its MT8820C will support TD-LTE radio testing. Rohde & Schwarz and Anite also provide many types of testing and measuring equipment.

As the industry chain matures, commercial TD-LTE is just around the corner.

ZTE Leads the TD-LTE Industry

Smooth evolution ZTE provides a Uni-RAN solution

based on an innovative SDR hardware

Figure 2. The TD-LTE industry chain.

Chipset Providers

Terminal Providers

Equipment Providers

Test Instrument Providers

1� ZTE TECHNOLOGIES February �011

Tech Forum

platform. The Remote Radio Unit ( R R U ) s u p p o r t s 7 0 0 M H z , D D spectrum, 900MHz, 1800MHz, AWS, 2.1GHz, and 2.6GHz bands. The Base Band Unit (BBU) supports GSM, UMTS, and LTE radio modes, which allows for fast network deployment. The Uni -RAN so lu t ion enab les smooth network evolution while protecting investment to the greatest possible extent. This helps operators significantly reduce their TCO.

Large-capacity base stations ZTE’s single BBU supports up

to 18 TD-LTE cells, each having a bandwidth of 20MHz. The maximum throughput per cell is 100Mbps in the downlink and 50Mbps in the uplink, and the RRU provides power output of up to 2×20W. The RRU also supports multiple modes for different coverage scenarios. Both IP over E1 and IP over PE/GE are supported. Flexible networking and good scalabil i ty helps operators cut their network construction costs.

Compact and eco-friendly design ZTE’s d is t r ibuted BBU+RRU

enables simple and flexible zero-footprint deployment. The BBU is the smallest in the industry and can be mounted on the wall or embedded in a 19-inch rack to save space. The RRU is small and lightweight. It is naturally cooled, silent, and saves power.

End-to-end full-service solutionZTE is dedicated to offering TD-

LTE products that meet var ious deployment scenarios. Its end-to-end, customized, full-service solution encompasses services, core networks, radio systems, and terminals.

Worldwide deploymentsWith fast growth of the industry

chain, TD-LTE trial networks have been deployed in China, Japan, India, Russia, Germany, Ireland, and the U.S. As of October 2010, ZTE has signed agreements with ten leading operators to build TD LTE trial networks. ZTE is leading the industry in TD-LTE deployment worldwide.■ China Mobile started TD-LTE

tests involving an indoor system, terminal chipset, and large-scale outdoor network at the end of

2008. It plans to initiate TD-LTE trials in Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou, and Xiamen in early 2011. A total of 3000 TD-LTE base stations will be deployed, and ZTE will be one of the main vendors for the network deployment.

■ ZTE was chosen by Europe’s largest mobile operator to supply TDD equipment for TD-LTE field testing in February 2010. Phase I of testing was completed in July and produced good results. Phase II and III are expected to be completed in the first half of 2011.

■ India issued two BWA licenses in August 2010, and ZTE entered into an agreement with major local operators to help them build several TD-LTE trial networks across the country.

■ In September 2010, ZTE cooperated with Russia’s largest integrated network operator to deploy a 2.3GHz TD-LTE trial network in Sochi. ZTE demonstrated a peak data rate of 130Mbps and won high praise from Russian leader Vladimir Putin.

ConclusionThe abundant spectrum resources,

technical advantages, and flexible networking features of TD-LTE may translate into great market opportunities. As the industry chain matures, TD-LTE has promising commercial prospects. ZTE was one of the earliest players in the TD-LTE field and has an industry-leading outlook. With its visionary outlook and years of TDD experience, ZTE is developing excellent TD-LTE concepts and solutions. The company is working together with operators worldwide to create higher value and to seize upon new market opportunities.

Figure 3. Multiband and multimode support of Uni-RAN.

GSM

UMTS

WiMAX

LTE

TD-SCDMA

CDMA

1�ZTE TECHNOLOGIESFebruary �011

By Mi Dezhong

In a new report entitled 4G LTE Revenue Opportunities, Juniper Research forecasts that by 2014,

revenue generated by LTE mobile networks will exceed $100 billion U.S. globally. These revenues will be driven by laptops, smartphones, and other devices with a large proportion of revenues der iv ing f rom high traffic subscribers using web, email, and video. For this reason, mobile operators are now speeding up LTE commercialization. GSA’s report Evolution to LTE (August 2010) details 101 LTE network commitments in 41 countries.

After two years of standardization, the first release of LTE-A Rel-10

will be frozen in March 2011. LTE-A provides larger bandwidth, higher spectrum efficiency, and higher peak data rates than LTE. Performance is optimized in urban hotspots, cell edges, and heterogeneous network environments, enabling seamless coverage from macro cells to indoors areas. LTE-A is highly compatible with LTE and introduces key techniques that meet and exceed ITU requirements for 4G. It can therefore be regarded as a real 4G standard.

Carrier Aggregation In wi re l e s s communica t ions ,

spectrum is a highly valuable resource and accounts for considerable OPEX.

Many operators own several continuous or non-continuous spectrum resources, and capitalizing on these resources has been their focus of attention. To address the frequency bottleneck, Carrier Aggregation (CA) has been introduced into LTE-A. CA supports aggregation of both continuous and non-continuous ca r r ie r s , a s shown in F igure 1 . Continuous carrier aggregation is used for super-high bandwidth. Non-continuous carrier aggregation has a much wider range of applications than continuous carrier aggregation. Because spectrum is usually scattered on various frequency bands, and many discrete small-bandwidth spectrum resources are released when 2G/3G networks evolve to 4G, aggregating these scattered spectrum resources is important.

Coordinated Multi-Point Tx/Rx With the emergence of new services

such as Local by Social (LBS) and popularity of multimedia terminals,

Trailblazing Towards 4GLTE-A:

Figure 1. Schematic diagram of carrier aggregation.

CA for Continuous Carriers CA for Non-continuous Carriers


with LTE, LTE-A supports up to four transmit antennas in the uplink and the number of transmit antennas is expanded from four to eight in the downlink (see Figure 3). This greatly improves spectrum efficiency and transmission quality.

Wireless RelayCoverage in remote areas has

been a hard nut to crack in wireless communications. An effective solution is to introduce a relay node or relay station between eNB and UE, as shown in Figure 4. The relay node is connected to eNB via a wireless link. This reduces network deployment cost considerably. Moreover, relay can improve high data rate coverage in urban hotspots, provide coverage in blind areas, and support group mobility and temporary network deployment.

LTE-A has complete 4G technical f ea tu res , and i t s s t andards and techniques have been thoroughly researched. Since LTE-A requirements were first put forward, ZTE has taken an active part in drafting LTE-A standards and submitting proposal that have been adopted by 3GPP. Presently, a number of LTE-A issues are being worked through, and various standards are being perfected.

ZTE successfully demonstrated an LTE-A system at the P&T/Expo Comm China in October 2010. Visitors to the expo witnessed a download peak rate of 1Gbps delivered by 4G technology.

ZTE is now working hard to develop LTE-A technology and has made good inroads to this end. The company plans to roll out commercial LTE-A products in 2012. This will allow people to enjoy feature-rich services and high-speed connectivity using mobile broadband.

wireless services can be accessed anywhere and at anytime. However, communication quality can be affected by multicell interference and can be dramatically reduced at cell edges. Coordina ted Mul t i -Poin t Tx/Rx (CoMP) significantly improves cell-edge user throughput by employing multicell coordination, as illustrated in

Figure 2. Users can access smooth and fast Internet whether they are in cell centre or at the cell edge.

Enhanced MIMOMulti-Input Multi-Output (MIMO)

improves signal quality and spectral efficiency using multiple antennas for transmission and reception. Compared

Tech Forum

Figure 2. Schematic diagram of CoMP.

Figure 3. Schematic diagram of enhanced MIMO.

Figure 4. Schematic diagram of relay transmission.

UEeNB

UERN

MIMO 8x8 in DL MIMO 4x4 in UL

Cell 1 Cell 3

Cell 2


Solution

By Chen Huadong

The report entitled Evolution to LTE released in October 2010 by the Global mobile Suppliers

Association (GSA) confirms that 156 operators in 64 countries are currently investing in LTE. This figure comprises 113 firm commitments by operators to deploy commercial LTE systems in 46 countries, and a further 43 “pre-commitment” trials or pilots in an additional 18 countries.

The pace of LTE development has quickened, and people have high expectations. However, it is a new technology and the whole industry

needs time to optimize networks and develop mature terminals. Compared wi th 2G/3G, LTE has d i ff e ren t architecture, key technologies, network design, and planning.

Continuous Networking vs. Discontinuous Networking

The coverage of some wireless data services—including WiFi—may be discontinuous. However, 2G/3G mobile networks are designed for continuous coverage. LTE mobile broadband technology is now widely seen as the evolution path for 2G/3G

LTE Network Designand Deployment Strategy

mobile networks such as GSM/GPRS/EDGE, WCDMA/HSPA and CDMA/HRPD. Although WCDMA and CDMA networks are fundamentally continuous, HSPA or HRPD can be designed for either continuous or discontinuous coverage.

Most LTE networks are designed according to the continuous principle. Continuous networking improves user experience at cell edges, reduces inter-RAT handover requirements, a n d f a c i l i t a t e s e v o l u t i o n f r o m 2G/3G to LTE. In LTE continuous networking, consideration needs to


Solution

should take into account not only frequency bands and Half Power Beam Width (HPBW) but also the number and polarization of antenna elements.

Two antennas per sector is the basic configuration for initial LTE networking. For scenarios in which coverage or capacity is sensitive, four antennas per sector can be adopted. ZTE’s LTE base stations support two antennas or four antennas per sector.

Co-Site vs. New SiteCo-siting 2G, 3G, and LTE base

stations means that equipment racks, transport, power supply, and air-conditioning can be shared. ZTE’s Uni-RAN solution integrates 2G, 3G, and LTE into a multimode unified platform and supports co-site design, implementa t ion , opera t ion , and maintenance.

Whi l e new s i t e s a r e bu i l t t o meet different frequency bands and networking requirements, co-siting is used as much as possible. New sites are complementary. Emerging LTE operators who have no legacy mobile networks may deploy new sites for greenfield networks.

Cell CapacityLTE cell capacity involves peak

throughput and spectral efficiency. Peak throughput is only achieved under ideal

be given to continuous coverage of RSRP, RSRQ, best service cells, and traffic channels in both the uplink and downlink (PUSCH and PDSCH). LTE discontinuous coverage is usually applied in special scenarios such as discrete hotspots. Discontinuous coverage takes advantage of high-order modulation and coding under good radio conditions to improve cell throughput and user experience at cell centers.

Frequency and BandwidthLTE has many spectrum options.

Frequency bands available for LTE inc lude 2 .6GHz, 1 .8GHz, AWS (1.7GHz in the uplink and 2.1GHz in the downl ink) , 700MHz, DD (800MHz), and 2.1GHz. Such a wide range of frequency bands makes it possible to deploy LTE in different countries. However, different frequency bands bring about challenges for LTE equipment production, networking, and LTE-based international roaming.

LTE also supports flexible carrier bandwidths—from 1.4MHz up to 20MHz (1.4MHz, 3MHz, 5MHz, 10MHz, 15MHz, and 20MHz). In most cases, LTE FDD supports a symmetric bandwidth in the uplink and downlink. For scenarios with bandwidth and interference restrictions, asymmetric bandwidths between the uplink and

downlink may be supported.

Intra-Frequency Networking vs. Inter-Frequency Networking

The quality of an LTE network is primarily affected by inter-cell intra-frequency interference. Serious interference of this type may be caused by intra-frequency networking, and the simplest way to alleviate it is to use inter-frequency networking. However, inter-frequency networking may decrease spectrum efficiency. So Inter-Cell Interference Coordination (ICIC) is introduced.

ICIC can be implemented in several ways . Depending on the per iod of resource coordination, ICIC is classified into static ICIC, semi-static ICIC, and dynamic ICIC. It can also be classified into fractional frequency reuse, soft frequency reuse, and full frequency reuse according to the type of resource coordination. No matter which ICIC solution is used, frequency allocation for cell edge users needs to be carefully considered. The cell edge can have a frequency reuse factor of 3 while the cell center has a frequency reuse factor of 1.

Antenna and MIMOMultiple Input Multiple Output

(MIMO) technologies have been introduced into LTE. Antenna selection

Figure 1. Networking based on different frequency reuses. Figure 2. Frequency reuse for the cell center and cell edge.

f1

f1

f1

f1

f2

f3

fc

fc

fc

f1

f2

f3

Frequency Reuse 1 Frequency Reuse 3 ICIC

1

2

5

3

4

7

6


■ Cover densely-populated urban areas in capital and metropolitan cities;

■ Cover densely-populated urban areas in ordinary cities;

■ Cover suburban or rural areas in capital and metropolitan cities;

■ Cover other areas.ZTE has much exper ience in

deploying 2G, 3G, and 4G networks worldwide. As of December 2010, ZTE has concluded 12 LTE commercial contracts and built 65 LTE trials all over the world. With full confidence in the ability to design, plan, and deploy LTE networks, ZTE is ready to join hands with global operators in building cutting-edge LTE networks.

conditions, while spectral efficiency is based on real network conditions. Cell peak throughputs for different bandwid ths comply w i th 3GPP specifications. Cell spectral efficiency varies in different radio environments and traffic models and can be measured through network tests or be estimated using system simulation.

Radio Network PlanningPlanning for LTE networks is similar

to that of 2G/3G networks, though detailed contents and parameters are different. Procedures for LTE network d imens ion ing and p lann ing a re illustrated respectively in Figure 3 and Figure 4.

LTE network dimensioning involves input of frequency and bandwidth, coverage and QoS requirement , target services at cell edge, number of subscribers, traffic profile per subscriber, and indoor penetration. Maximum Allowed Path Loss (MAPL), cell range, number of sites and sectors, and eNodeB configuration are included as output.

C o m p a r e d w i t h n e t w o r k dimensioning, digital map is additional input necessary for detailed network planning. Additional output for detailed network planning includes uplink and downlink coverage simulation result, uplink and downlink achievable bit rate

Table 1. Cell peak throughputs for different bandwidths.

1.4MHz 3MHz 5MHz 10MHz 15MHz 20MHz

DL (SISO) 4.392 Mbps

11.064 Mbps

18.336 Mbps

36.696 Mbps

55.056 Mbps

75.376 Mbps

DL (MIMO 2×2) 8.784 Mbps

22.128 Mbps

36.672 Mbps

73.392 Mbps

110.112 Mbps

150.752 Mbps

DL (MIMO 4×4) 17.52 Mbps

44.304 Mbps

73.392 Mbps

150.752 Mbps

220.272 Mbps

299.552 Mbps

UL (SIMO MCS=23) Category 4 (16QAM)

2.984 Mbps

7.48 Mbps

12.576 Mbps

25.456 Mbps

37.888 Mbps

51.024 Mbps

UL (SIMO) Category 5 (64QAM)

4.392 Mbps

11.064 Mbps

18.336 Mbps

36.696 Mbps

55.056 Mbps

75.376 Mbps

map, antenna azimuth and tilt, cell ID and neighbor cell parameters.

Z T E h a s d e v e l o p e d i t s o w n too l s such as ZXPOS CNP-FL, ZXPOS CNT-FL, ZXPOS CNA-FL, and ZXPOS NEXMAX-FL for LTE network design, planning, and optimization. Other LTE network planning tools such as Atoll by Forsk have also been released. Versions of these tools are continually updated.

Network Deployment Strategy LTE offers mobile data service with

QoS guarantee. It can cover densely-populated urban areas, suburban areas, or rural areas. A nationwide LTE network can be deployed in four steps:

Figure 3. LTE network dimensioning procedure.

Figure 4. LTE network planning procedure.

Coverage and Capacity Target

Radio Network Design

Site Selection and Survey

Network Planning and Simulation

RequirementSatisfied？

Radio Network Proposal

Propagation ModelCalibration

Information Collection

N Y

Information Collection

Network Deployment Requirement

Coverage Design Capacity Design

Number of Sites Required


Blue Ocean OpportunitiesBy Zheng Hong and Fu Yu

Success Stories

CSL: LTE Creating

pioneer in LTE:

External factors:■ Hong Kong has a highly saturated voice

market with a mobile penetration rate of 173% in 2009;

■ Hong Kong has a large youth market who demand quality data services;

■ There is high data throughput for each base station due to high population density;

■ A new business model has arisen with iPhone;

In the aftermath of the global financial crisis, LTE development is thriving. This is especially true in North America and Europe

where commercial LTE networks have already been deployed. Hong Kong is a leader in the Asian telecom industry, and LTE is the inevitable choice for network evolution throughout the city. CSL, the largest mobile operator in Hong Kong, is pushing hard to be the first to deploy LTE. So why has CSL chosen ZTE as its LTE supplier?

The following factors are driving CSL to be a


that there is a strong need for LTE in Hong Kong and for provision of superior customer experience. CSL needs high-bandwidth, low-cost network technology to enhance its market competitiveness. With a bit-cost advantage over 2G and 3G technologies, LTE can greatly reduce network deployment costs and increase an operator ’s profit margin. For CSL, LTE is the ultimate technology for implementing a “blue ocean” strategy.

Best Network Solution for the Most Complicated Wireless Environment

One of the most prosperous cities in the world, Hong Kong is famous for its forest of skyscrapers and vibrant downtown areas. The environment in which wireless networks must

operate is extremely complicated, and constructing wireless networks is challenging.

CSL’s four original networks with dual modes and three frequency bands had high maintenance costs and were not competitive in data services. Their complicated network structures made upgrading difficult. To simplify network structure, CSL adopted ZTE’s SDR-based Uni-RAN solution, which allows for coexistence of 2G, 3G, and LTE. With distributed BBU+RRU, better use can be made of equipment rooms and difficulty in acquiring new sites is avoided. CSL’s network structure was simplified in terms of wireless, core, transmission, and management. Operation and maintenance costs were reduced by an astonishing 61.4%.

■ Fierce competition exists between mobile operators in Hong Kong.

Internal factors:■ CSL previously had a declining

market share and APRU;■ User loyalty is low due to mobile

number portability service; ■ High bandwidth is required for new

technologies and services;■ CSL’s ne twork s t ruc ture has

previously been complicated and inefficient, and OPEX was high;

■ Network convergence and evolution was difficult.

Since the launch of the Next G all-IP mobile broadband network in March 2009, data t raff ic has increased by a factor of 65, and now comprises more than 80% of CSL’s total network traffic. It is clear

�0 ZTE TECHNOLOGIES February �011

With this groundbreaking technology, CSL is making the promise of LTE a reality for Hong Kong and creating a network that will establish the city as a telecommunications leader.

Success Stories

CSL adopts ZTE’s unified SDR platform that can migrate to 4G network flexibly. The construction cost will be significantly reduced and the network building speed will be much faster than other operators.

––David Thodey, CEO of Telstra Corporation

––Tarek Robbiati, group managing director of Telstra International Group

Sai Kung SiteLan Kwai Fong SiteTsim Sha Tsui Site Mong Kok Site

World’s First Commercial LTE/DC-HSPA+ Network

On 18 October 2010, CSL went on a media tour to introduce i ts commercial LTE/HSPA+ network. A l ive LTE/HSPA+ network was

SDR is an innovative technology a t the foref ront of the wire less broadband revolution. ZTE’s state-of-the-art SDR technology not only reflects the company’s keen pursuit of advanced technology but also its precise grasp on future technical trends. The SDR-based Uni-RAN solution for CSL has the following attractions:

■ Unified and future-oriented SDR platform that enables smooth network evolution while protecting investment to the greatest possible extent;

■ Rapid customization and service development that satisfies the r equ i remen t s fo r mul t iband , multimode radio reconfiguration;

■ Enhanced spectral efficiency, peak

data rate, throughput, cell edge coverage, and QoS that ensures excellent network quality;

■ The world’s f irs t commercial 1.8G/2.6G dual-band LTE network that takes advantage of CSL’s spectrum posi t ion to provide customers with better coverage for a more satisfying communications experience.

showcased at four sites, and among the audiences were Tsim Sha Tsui, Lan Kwai Fong, Mong Kok, and Sai Kung. Multimedia conferencing, HD video downloads, high-speed tests, and online games were demonstrated.

The actual download speed confirmed by testspeed.net ranged from 50Mbps to 70Mbps. The demo achieved good results and gave media delegates a first-hand experience of impressive high-speed LTE services.

�1ZTE TECHNOLOGIESFebruary �011

Awards and Recognitions■ June 2009: CSL and ZTE were awarded the prestigious

National Mobile Services award for Wireless Network Infrastructure at the GTB Innovation Awards in London. This award recognized the outstanding achievement of fully replacing CSL’s original 2G and 3G networks with a world-class integrated all-IP SDR based HSPA+ network capable of downlink speeds up to 21Mbps.

■ June 2010: CSL and ZTE won the LTE Infrastructure Innovation award for the second consecutive year. This was awarded by Global Telecoms Business magazine for innovation in CSL’s Next G network. With an impressive peak rate of 21Mbps, the Next G network launched by Telstra—CSL’s Australian parent company—has been recognized as the world fastest mobile broadband network by Guinness World Records.

■ June 2010: Test results of independent benchmarking firm, Celfinet, confirmed that CSL provided the best overall performance in terms of average speeds, coverage, broadband coverage, voice quality, and data throughput.

■ July 2010: Reputable Hong Kong journal e-zone tested voice quality and data rates of four local UMTS operators: SmarTone-Vodafone, CSL, H3G, and PCCW. The results showed that CSL’s network provided smooth, stable video programs with quick response.

CSL is proud to be the pioneer of the world’s first LTE/DC-HSPA+ network. We will continue to go beyond expectations, delivering the best coverage and user experience in Hong Kong while meeting the rapidly increasing demand for mobile data driven by the proliferation of smart phones and tablet devices.

As a strategic partner, ZTE has proudly supported CSL in developing and deploying LTE and HSPA+ wireless technologies. Our extensive experience and leading R&D capabilities allowed us to provide CSL with a solution that delivers exceptional network performance to all its customers.

––Joseph O’Konek, CEO of CSL Limited

––Hou Weigui, Chairman of ZTE Corporation

On 25 November 2010, CSL announced the launch of the world’s first LTE/DC-HSPA+ network, heralding a new era in mobile communications. After a commercial LTE trial network had been established by CSL, Telstra, and ZTE in September 2009, LTE was then formally deployed in Hong Kong with peak downlink speeds of 100Mbps and low latency. At the launch ceremony, CSL demonstrated how LTE/DC-HSPA+ will outperform existing mobile technologies and how CSL would build on its partnership with ZTE. The new LTE/DC-HSPA+ network will take advantage of CSL’s leading position on spectrum to provide total coverage and world-class mobile broadband performance throughout Hong Kong. It will provide seamless connectivity that redefines the mobile broadband experience with ultra-fast speed, high bandwidth capacity, and personalization that has never been seen before in mobile services.

As well as offering high-speed highly reliable mobile data services, the LTE/DC-HSPA+ network will improve the lives of Hong Kongers by taking entertainment and interaction to new levels—anytime, anywhere—with 3DTV, interactive gaming, and e-learning. These applications will not just be novelties to be experienced and forgotten, they will become an integral part of a daily mobile lifestyle.

�� ZTE TECHNOLOGIES February �011

Success Stories

at Mobile Asia Congress 2010VoLTE Takes Off

People expect their mobile phones to be capable of delivering ubiquitous high-bandwidth services. To provide a better experience for their customers

and to gain a competitive advantage, mobile operators are now testing and deploying LTE. LTE standardization was completed by 3GPP in December 2008, and the first commercial LTE network was launched in 2009. It is expected that over 20 operators will offer live commercial LTE services by 2011.

Presently, voice remains the dominant revenue-generating service in mobile communications. Revenue from voice calls amounted to $615 billion USD in 2009. Voice over LTE (VoLTE) is the next step in developing a standard way of delivering voice for LTE. Although high-speed data, not voice, is the key driving force for LTE, VoLTE is crucial for operators because it can generate a lot of revenue. As LTE has all-IP network architecture and is designed to support voice in the packet domain, circuit switched (CS) core networks are no longer supported in the LTE specifications.

Single Radio (SR) mode is used in LTE, and it is impossible to deploy services on both LTE and UTRAN/GERAN. There are requests for voice handoff and CS access, especially when LTE is initially deployed as hotspot islands. One approach is to instruct an LTE handset to fall back to the CS network when a voice call is required. Another approach is to adopt Single Radio Voice Call Continuity (SRVCC), which uses an IMS system for call anchoring and handover and is based on a third party call control mechanism.

The main driving force that will bring IMS into the wireless market is LTE. An IMS-based solution is now universally accepted as the key for VoLTE service deployment. SRVCC is the preferred choice for most operators, and IMS acts as a unified control platform for voice and multimedia services. IMS-based SRVCC provides QoS control, flexible charging, and better user experience.

By Zhang Lin and Li Na

��ZTE TECHNOLOGIESFebruary �011

Figure 2. Architecture of VoLTE demo.

At the Mobile Asia Congress 2010 (MAC 2010) held in Hong Kong, GSMA, CSL, and ZTE successfully made an IMS-based VoLTE call on CSL’s LTE network and also on its existing mobile networks. The call was made using conventional 2G/3G handsets and was crystal clear. This was the first time a VoLTE call had been made using interoperable LTE and 2G/3G networks.

The VoLTE call was made between IMS clients located at the GSMA booth and ZTE booth (see Figure 1). A call was also made from an IMS client to a recipient using a 2G/3G handset. Supplementary services such as call forwarding and call waiting were also demonstrated.

By showcasing i ts IMS-based solutions and leveraging its expertise in LTE, ZTE demonstrated how voice will be incorporated into next generation networks. The VoLTE demonstration at MAC 2010 builds on the deep relationship between ZTE and CSL. ZTE employed Uni-CORE (EPC and IMS) solutions to build an intelligent, converged, and high-performance core network for CSL. These solutions enabled full convergence of CSL’s 2G, 3G and 4G networks. ZTE’s MMTel AS (or ZXUN SSS) based on the ETCA hardware platform provides VoIP related PSTN Simulation Service (PSS) and PSTN/ISDN Emulation Service (PES) together with ZXUN CSCF, as illustrated in Figure 2. IMS-based broadband voice demonstrated at MAC 2010 serves as a

We thought the demonstration of VoLTE was really brought to life and made fun and interactive. We appreciate all the teams from CSL and ZTE for their superb support in making not only the demonstration happen but the mobile world live video too."

––Sandra Gilligan, project marketing director, mobile broadband, GSMA

good reference for mobile voice service to evolve from legacy to LTE networks. This demonstration will boost operators’ confidence to deploy and operate LTE networks.

“Implementing VoLTE is one of the biggest challenges for operators as they deploy LTE networks. ZTE is cooperating with CSL to research this

area and to gain valuable experience in voice applications over the LTE network. This lays the foundation for CSL in terms of future IMS-based LTE and also provides a significant reference for other operators,” said Xu Ziyang, president of ZTE’s Core Network products.

Figure 1. VoLTE call showcased at MAC 2010.

LTE/EPC/IMS Network

ZTE Booth (Tablet, Handest) GSMA Booth (Tablet)

CSCF MMTel AS MGCF IM-MGWIMS

Internet

MME HSS SAE-GW

eNodeB

PSTN/PLMN

UTRAN

Tablet + Dongle Tablet + Dongle 2G/3G Handset

EPC

Call betweenVoLTE clients

Call between a 3G handset and a

VoLTE client


An Overview of IMS Deployment Scenario

Th e r e a r e t h r e e t y p e s o f operators that have steadily b e e n d e p l o y i n g I M S

technology over the last few years. The first category of operators is those that have IP to the edge. These include wireline operators, cable operators, certain commercial LTE network operators , and WiMAX operators. These service providers have been able to use IMS core to offer telephony services. The second type includes mobile operators that do not have IP to the edge yet and are therefore not able to use IMS core for telephony services. The third category includes service providers who have both wireline and wireless networks. This category of service providers are driven by FMC for lower TCO, and are focusing mainly on their enterprise customers, offering services such as convergent centrex that often uses a

common IMS core. Obviously most of the IMS action

surrounds the wireline market where the packetization has been pushed to the edge th rough b roadband deployment. For convergent operators, IMS solves time to market issue. For mobile operators, the short term driver is to launch the enhanced communications services like RCS. But that is a major market driver. It is not a sufficiently large enough motivation to go for IMS deployment. But since the industry chose IMS to carry VoIP within mobile networks the mid term driver for IMS is VoLTE.

IMS Deployments in WirelineIn the Class 5 space what we saw

was hybrid TDM switches being built so that operators could begin to put IP in the middle to do VoIP. Operators did not necessarily do direct IP termination but they put IP in the middle. Some vendors had architectures that allowed

them to do that easily. And that is what drove a lot of consumer VoIP or VoIP termination in the network. That was early on. Now if we move to today’s network we see the urge to utilize the broadband infrastructure and that mandates IMS type deployments. Most markets have alternative broadband service providers either wholesale or ULL. So broadband is taking off.

There is a shift from softswitch/NGN implementa t ions to a l l - IP IMS implementa t ions . However i n n u m e r o u s c a s e s o p e r a t o r s a r e b y p a s s i n g t h e s o f t s w i t c h implementations moving straight from PSTN to IMS. These include carriers like Turk Telekom, Telkom Malaysia and many others. Move to softswitch was not really a move to IP. A softswitch network is still TDM oriented using IP mainly as transport medium. IMS is pure IP. That seems to be the top most trend in the market these days.

Global IMS Market 2010October 2010, selected from market research firm iLocus

Third Eye


that remain TDM based are likely to be migrated direct to IMS. By the year 2014, the ratio of IMS-to-softswitch based subscriber lines deployed in the wireline networks is forecast to be around 2:1.

Dur ing 1H10, es t imated 18 .8 million IMS subscriber lines were shipped for deployment in wireline networks worldwide. Out of the 18.8 million IMS subscriber lines shipped in 1H10, an estimated 1.3 million were for IP centrex lines. The remaining 17.5 million were residential lines. Figure 1 gives vendor market share in residential IMS subscriber lines for the year 1H10. Ericsson leads the market with 24% share worldwide followed by ZTE with 22.3% and NSN with 18.9%.

IMS Deployments in WirelessThe main driver that will bring

IMS to wireless market is LTE when users have IP to the edge. There is

On a cumulative basis (as of end 1H10), a total of 207.9 million IMS subscriber lines have been shipped for deployments across both wireline and wireless networks. Of these an estimated 134.8 million lines have been deployed in wireline networks. Estimated 30.9 million lines have been installed in wireless networks and around 42.2 million deployed in

convergent IMS deployments.An estimated 25% of the total

subscr iber capac i ty in wi re l ine networks has migrated to VoIP. Of the 25%, around 14% is comprised of softswitch based subscriber lines and remaining 11% is comprised of IMS based subscriber lines.

M a j o r i t y o f t h e 7 5 % o f t h e subscriber lines in wireline segment

Figure 1. Market share 1H10: Wireline residential IMS subscriber lines.

Others 10.9%

Huawei 5.1%

Ericsson 24.0%

ZTE 22.3%

NSN 18.9%

Thomson 1.1%

Italtel 4.6%

Alcatel-Lucent 13.1%


extent of related deployments. Ericsson emerges with the top

rank followed by ZTE at number two. Ericsson is strong in all three important areas of IMS right now: wireline, wireless, convergent scenarios. ZTE has leadership in wireless and terminals side, with a strong performance in wireline IMS during 2009 and 1H10. ZTE is the only vendor there with a commercial MAGCF product in the market.

following factors as the main criteria for ranking the five vendors: ■ Leadership in Wireline IMS ■ Leadership in Wireless IMS ■ Leadership in Convergent IMS ■ Leadership in RCS ■ Leadership in IMS Terminals

We t h i n k t h e s e a r e t h e m o s t important and most relevant indicators given the way IMS market has matured so far. The most active area of IMS is undoubtedly the wireline segment. As such, in terms of relative weightage of these five factors, we have to assign the wireline deployments a higher weightage. After wireline, the most active deployment area in IMS is the FMC type convergent deployments such as convergent centrex. There is not much IMS deployment in wireless-only networks. We have given this area the same relative weightage as RCS and terminals. So our relative weightages are proportional to the

not much opposition to the premise that doing voice over LTE is by using IMS. So just like on wireline side you had to wait till broadband kicked in, on wireless side you have to wait till IP hits the edge. Mobile broadband has seen a sharp increase over the years. However we still do not have IP to the edge. The shift to LTE will in most cases be associated with IMS deployments to support voice. In the remaining cases that use some interim option, they will over time also move towards IMS. So it is a matter of when an operator starts LTE deployment.

With the use of Mobile Access Gateway Control Function (MAGCF), however, the operator does not need to have LTE in place in order to utilize an IMS core. Broadly speaking there are two scenarios: (1) where operator has deployed LTE but voice still traverses its softswitch network. In this scenario, operators evolve the present softswitch in order to handle VoIP. Classic method includes that of NSN’s MSC VoIP server solution whereby the VoIP application server APIs are opened up to hook with the MSC. The other major solution in this scenario is CS fallback in which case you need two radios in the handset. (2) In the second scenario where an operator does not have LTE in place but is looking to use IMS core, there are MAGCF solutions being developed by vendors. ZTE has a commercial version available in the market. This solution is important from operator perspective because a lot of investment has gone into softswitch in mobile space.

In MAGCF deployments, mobile softswitch acts as softswitch and MAGCF at the same time. Softswitch handles all users except those users who want IMS services which are

handled by MAGCF part which will send all call control to IMS core.

MAGCF is the mobile version of f ixed AGCF which has been around for a while now. It is about providing access gateway function for narrowband users to IMS core. Fixed AGCF is mature now. Mobile AGCF is not mature yet. Only ZTE has released a commercial product. Most other vendors will release MAGCF product towards the end of this year. It is a software upgrade to mobile softswitch to convert part of the softswitch module into MAGCF component.

A Ranking of IMS VendorsAll large vendors are thinking

only in one direction and that is IMS, even though these vendors still generate more revenues in softswitch deployments than in IMS. There are only a handful of vendors out there who are up to the IMS challenge,

Table 1. IMS vendor ranking.

Third Eye

however. It is the same large vendors. This is not a market that mid tier vendors can effectively address. The players that will dominate the scene will be the usual suspects: Ericsson, ZTE, Alca te l -Lucen t , NSN and Huawei.

Between the five of them, some have exce l l ed i n w i r e l i ne IMS d e p l o y m e n t s w h i l e t h e o t h e r s have excelled in convergent IMS deployments. We have identified the

WT. Ericsson ZTE Huawei Alcatel Lucent NSN

Leadership in Wireline IMS 0.4 0.3 0.25 0.15 0.2 0.1

Leadership in Wireless IMS 0.1 0.3 0.3 0.2 0.1 0.1

Leadership in Convergent IMS 0.3 0.25 0.2 0.3 0.15 0.1

Leadership in RCS 0.1 0.3 0.2 0.2 0.1 0.2

Leadership in IMS Terminals 0.1 0.0 0.4 0.3 0.1 0.2

Total Score 0.26 0.25 0.22 0.16 0.12


News Brief

14 December 2010, Shenzhen ― ZTE, a leading global provider of telecommunications equipment and network solutions, and SoftBank, Japan’s top telecommunications operator, today announced that their jointly developed Android smartphone, Libero, will be available throughout Japan later in December. The Libero will be the first Chinese smartphone to launch in Japan.

Also known as the SoftBank 003Z or ZTE Blade, the introduction of the Libero into the high end mobile market in Japan is a significant breakthrough which demonstrates the company’s ability to provide quality and customized smartphones to any market in the world. The Libero is ZTE’s second handset developed in collaboration with SoftBank―the first being the SoftBank 840Z, which was launched in late October this year.

ZTE Named Broadband Network Vendor of the Year in Telecom Asia Readers’ Choice Awards 2010

17 December 2010, Shenzhen ― ZTE was recognized in December for its continued innovation in technology and rapid market share growth in the field of broadband products. This is the second time ZTE has been recognized as Vendor of the Year after receiving the IPTV Vendor of the Year award last year.

“ZTE’s broadband products have achieved substantial growth in 2010. They have had a remarkable performance not just in the China market, but also in the Asian, European and American markets,” Telecom Asia noted. According to telecoms industry analyst Ovum’s Market Share―FTTx, DSL, and CMTS ports 2010 Q2 report, in 2Q10, ZTE’s GPON revenues (OLT ports and ONT/ONU combined) grew the fastest year on year among the top 10 GPON vendors in the industry. The report also ranked ZTE second in FTTx (OLT port) shipments on a rolling four quarter basis (3Q09 to 2Q10).

16 December 2010, Düsseldorf ― ZTE has opened a new office to expand its presence in Germany. The new office in Darmstadt was specifically chosen by ZTE to support its ongoing partner Deutsche Telekom with building modern network infrastructure in Germany.

ZTE Corporation has been doing business in Europe for ten years and established more than 30 subsidiaries across European markets, including France, Britain, Italy, Spain and Scandinavia. Its German affiliate, ZTE Deutschland GmbH, was founded in 2005 and is headquartered in Düsseldorf. Since 2005, ZTE has opened additional offices, including those in Bonn, Munich, Frankfurt and Berlin. With its new office in Darmstadt, ZTE now holds nine offices across Germany making ZTE Deutschland GmbH the largest branch of ZTE Corporation in Europe.

ZTE Opens New Office in Darmstadt

ZTE to Provide Leading Wireless Technology to Bahrain’s Batelco Group

10 December 2010, Hong Kong ― ZTE today announced that it has signed a group framework agreement with Batelco Group, under which ZTE will provide cutting-edge wireless solutions, including 2G and 3G equipment, to the Bahrain-based telecommunication company.

The wireless solutions will be deployed with the aim of reducing Batelco’s capital and operating expenditure considerably due to their cost-effective pricing and efficient implementation process, which will ultimately benefit Batelco’s customers.

ZTE and SoftBank to Launch Co-Developed Android Smartphone LiberoZTE the first Chinese vendor to enter Japanese smartphone market


News Brief

11 January 2011, Shenzhen ― ZTE today announced that it is now one of the leading vendors in the world of Essential Patent (EP) for LTE standards, securing 235 of these patents.

ZTE also has a 7% share of the total LTE essential patents declared on the Intellectual Property Rights (IPR) online database of the ETSI as of 30th November 2010. ZTE’s patents are an indication of its powerful capabilities in terms of LTE research and development.

This share of LTE essential pa ten ts i s a resu l t o f ZTE’s continuous R&D investment in the LTE-related key technologies since 2004. Looking ahead, ZTE aims to increase its current share of LTE essential patents from 7% to 10% by 2012. The company will also commit more R&D resources to accumulate essential patents and adopt a pro-active approach in improving 4G and incubating 4G+ standards.

ZTE Holds 235 LTE Essential Patents

ZTE First Branded Android Smartphone ‘Lutea’ Available in Germany

7 January 2011, Düsseldorf ― ZTE announced the launch of its Android based handset Lutea, which is available through German network operator E-Plus. The co-branded Lutea handset is an Android smartphone that challenges high-end devices with industry leading features at an affordable price point. The device is another example of ZTE’s strong position as a leading global handset manufacturer across Europe.

ZTE’s Lutea is based on Android 2.1 and provides a capacitive 3.5' multi touchscreen with 480×800 megapixels. It features an MP3 player and FM-

radio, as well as a 5-megapixel camera, 3GSM, Wi-Fi and Bluetooth. The phone also supports a data capacity of up to 32GB, and comes with a 2GB micro SD card inbox and in-built memory of 300MB.

Z T E ’ s b e s t s e l l i n g m o b i l e smartphone―known as ZTE Blade in other countries―has been made available in more than 20 high-end markets including the UK, France, Finland, Norway, Turkey, Hungary and Japan. Monthly sales unit volume continues to grow and is up by tens of thousands.

ZTE Wins SFR Suppliers 2010 Award

15 December 2010, Shenzhen ― ZTE today announced that it has won the Challenge SFR Suppliers 2010 prize in the ‘Mobile Handset and Sim card Supplier’ category, during an award ceremony that took place on 16th of November.

SFR selected the best among 16 mobile handset and sim card suppliers according to three major criteria: sustainability, innovation and customer satisfaction.

ZTE proved its commitment to sustainabili ty through producing environmentally friendly handsets. The company is increasingly reducing the weight or volume of its mobile handsets, mobile phone chargers and accompanying packaging. They have also replaced air transport with maritime freight where possible. As a result, ZTE has reduced its carbon footprint by more than 60% in three years.

ZTE wins in the ‘Mobile Handset and Sim Card Supplier’ category

The award ceremony for the Challenge SFR Suppliers 2010

Company aims to achieve at least 10% of LTE EP share by �01�

Source: ETSI IPR Online Database

Major Owners of LTE Essential Patents

Others 11%

Qualcomm 13%

InterDigital PatentHoldings 13%

InterDigital Technology 11%Nokia 9%

Samsung 9%

Huawei 8%

Ericsson 8%

ZTE 7%

LGE 6%

NTT DoCoMo 5%


ZTE Launches 1000th Base Station for Ncell3 January 2011, Shenzhen ― ZTE

today celebrated the deployment of the 1000th base station for Nepal’s mobile operator Ncell. The stations are based

on ZTE’s innovative green energy BTS solution and form part of the technology used to implement a green telecom know-how in Nepal.

The management of Ncell spoke highly of the cooperation between Ncell and ZTE, congratulating the successful launch of the network’s 1000th station as well as the green network, while also expressing their appreciation for the tremendous efforts and close cooperation of both project teams to ensure the quick delivery and success of the project.

5 January 2011, Shenzhen ― ZTE today announced total annual sales volume of terminal products jumped nearly 50% to a record number of 90 million units in 2010.

ZTE’s terminal product sales experienced rapid growth in both international and domestic markets. By 2010, the growth in both local and high-end overseas markets such as Japan, France, the UK and the U.S. has become the main sources of demand for ZTE handsets. The fastest-growing market was in Europe where year-on-year sales volume growth reached 150%. The U.S. market achieved year-on-year growth of 100%.

Separately, ZTE was ranked No.1 among Chinese vendors in terms of 3G handset sales volume, according to a research report by market research firm iSuppli. The report also noted that ZTE is leading China’s incremental market for 3G systems with an 11% share and is ranked No. 1 in the TD market with a 21% market share.

ZTE’s Global Terminal Sales Volume Jumps 50% to 90 Million Units in 2010

ZTE Flexes LTE Innovation with Introduction of Four New Devices at CES 2011

7 January 2011, Shenzhen ― ZTE today demonstrated the company’s industry-leading LTE solutions, unveiling its next generation ready-for-market data cards, modems, mobile hotspots and tablets at the International Consumer Electronics Show 2011 (CES) in Las Vegas. The devices showcased will be available in several global markets beginning in Q2 2011.

“While most companies will be coming to CES with their first-generation LTE products, ZTE is delivering proven

devices and form factors ready to flawlessly support consumers today,” said Mr. Cheng Lixin, president of ZTE USA. “ZTE has pioneered LTE devices in many global markets, most recently having launched LTE devices with Hong Kong's first and largest mobile communications operator, CSL Limited. ZTE is ahead of other vendors as our dedication and sizeable investment in LTE technologies has paid off in the devices shown here today.”

ZTE ranked first in global �G handset sales among Chinese vendors

�0 ZTE TECHNOLOGIES February �011

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