Building a Competitive Edge Through TL Trends in Mobile Internet Business. VIP Voice. Special Topic: Mobile Internet

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1 APR 2012 VOL. 14 NO. 2 ISSUE Smartfren: Migrating for a Better Future 17 Opening Network Capabilities in the Mobile Internet Age 24 H3G Austria s Mobile Network Excels in Third-Party Testing VIP Voice Building a Competitive Edge Through TL 9000 Special Topic: Mobile Internet Trends in Mobile Internet Business Tim Harden, vice chairman of the QuEST Forum executive board and president of supply chain and fleet operations at AT&T Services

2 Building value together New solutions and opportunities are results of teamwork and commitment. Our customers know, since we have collaborated with them to create win-win solutions since our foundation in Today, ZTE is a global leader in telecom solutions, and now we want to service you. Visit to find out more and to contact us for new opportunities.

3 CONTENTS Tim Harden, vice chairman o f t h e Q u E S T F o r u m e x e c u t i v e b o a r d a n d president of supply chain and fleet operations at AT&T Services, shared with us how TL 9000 improves AT&T s supply chain, how it improves the entire ICT industry, and how it will progress in the future. 03 VIP Voice 03 Building a Competitive Edge Through TL 9000 Reporters: Liu Yang & Zhao Rujing 08 Smartfren: Migrating for a Better Future Reporters: Liu Yang & Zhao Rujing Tech Forum Evolving from Internet to IDN By Zhang Chaofeng & Wu Qiang Special Topic: Mobile Internet Trends in Mobile Internet Business By Li Jun Mobile Internet is open and collaborative, like PC Internet, but it also inherits the realtime, privacy, convenience, and location features of mobile networks. 17 Opening Network Capabilities in the Mobile Internet Age By Yao Yuan Digital Office: Creating a Digital World Social TV Is Entering Households By Zhang Rong By He Kang APR 2012 ZTE TECHNOLOGIES 1

4 CONTENTS A technical magazine that keeps up with the latest industry trends, communicates leading technologies and solutions, and shares stories of our customer success ZTE TECHNOLOGIES Success Stories 24 H3G Austria s Mobile Network Excels in Third-Party Testing By Cao Qingwei & Chen Yizai H3G Austria was not only the fastest network, it also achieved a score of 476 out of a possible 500 in customer evaluations of overall network performance, said Connect editor Bernd Theiss. Indonesia s Sinar Mas Group Heads Towards a New IP Era By Liang Yulong Vodafone: Exploring the Enterprise Network Market in India By Wan Yunfei Editorial Board Editor-in-Chief: Jiang Hua Deputy Editor-in-Chief: Huang Xinming Editorial Director: Liu Yang Executive Editor: Yue Lihua Editor: Paul Sleswick, Wang Pingping Circulation Manager: Wang Pingping Subscription / Customer Services Subscription to ZTE TECHNOLOGIES is free of charge Tel: Fax: Website: wwwen.zte.com.cn/endata/magazine 30 Solution STB-based Motion Sensing Game Solution By Wang Chuanjiang Editorial Office Address: NO. 55, Hi-tech Road South, ShenZhen, P.R.China Postcode: Tel: Fax: Third Eye Market Share Alert: 3Q11 Global ON By Dana Cooperson, OVUM ZTE Profile ZTE is a leading global provider of telecommunications equipment and network solutions. It has the widest and most complete product range in the world covering virtually every sector of the wireline, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them achieve continued revenue growth and shape the future of the world s communications. 35 News Brief ZTE Attains Global No.1 PCT Patent Filings Spot 2 ZTE TECHNOLOGIES APR 2012

5 VIP Voice Building a Competitive Edge Through TL 9000 Reporters: Liu Yang & Zhao Rujing TL 9000 is a quality management system designed specifically for the communications industry. As the minimum floor for performance, it has benefited both suppliers and service providers. Tim Harden, vice chairman of the QuEST Forum executive board and president of supply chain and fleet operations at AT&T Services, shared with us how TL 9000 improves AT&T s supply chain, how it improves the entire ICT industry, and how TL 9000 will progress in the future. He praises ZTE s contribution to the QuEST Forum and believes the Forum helps ZTE because of its focus on quality. Tim Harden, vice chairman of the QuEST Forum executive board and president of supply chain and fleet operations at AT&T Services Q: Could you briefly introduce TL 9000? A: TL 9000 is a worldwide standard that was established in 1998, so it is relatively young. It was built off ISO 9001 which does not change frequently. But the ICT industry and companies that are part of the industry have technology that changes every 12 to 18 months (according to Moore s law). Because APR 2012 ZTE TECHNOLOGIES 3

6 VIP Voice of this, we need to ensure we have a way of improving overall quality and build on a standard that is recognized worldwide. ISO 9001 is that standard, and the ISO governing body allowed the QuEST Forum to manage the TL 9000 standard, which includes the ISO. The intent of TL 9000 is to respond quickly to changes in technology while using the ISO as a basis. TL 9000 is about increasing the level of performance of products that come to service providers and their customers so that all of the industry benefits from an increased level of quality. This saves the supplier and service provider money and improves the overall experience for end users. The mission of the QuEST Forum is to ensure there is a worldwide focus on quality and that TL 9000 and ISO 9001 become the base quality standards for companies that work in the ICT industry. Actually, we ve expanded from telecommunications to ICT because software is now a very big part of the delivery of a product. Many software companies are now covered by TL 9000 as well. Q: AT&T is a founding member of the QuEST Forum. How can AT&T improve its supply chain through TL 9000? A: Ten companies came together to start the QuEST Forum in 1998, and AT&T was one of those founding companies. At that time, there was a void in the industry. Many new companies were delivering products to those ten companies, and the products did not have the right level of quality. So the ten companies came together and worked with ISO standards to create and manage the TL 9000 standard. The standard was developed by both suppliers and service providers. If you look at where AT&T was in 2002 (when we started tracking our suppliers) to where we are now, we went from suppliers meeting 77% of their performance targets to suppliers meeting 92% of their performance in a ten-year span. That is a significant improvement in quality in that ten-year span. It translates into faster introduction of products, and from a supplier s standpoint, it translates into faster cash and faster earnings. From when I place the order to when I pay the supplier, the time is much shorter because now I have a quality product coming in. There is less re-work for both the supplier and AT&T, which means lower costs. You don t have to come out many times to fix a product that has just been introduced. There are great benefits for both suppliers and service providers. The experience for end users is also better because they are able to immediately get the benefit of the product without having to call back to service the product. That s why AT&T continues to be involved in things that significantly lift the overall performance of suppliers. We also ensure that prospective entrants into the market achieve a minimum level of performance before they even get their foot in the door. The industry is performing much better as a result of this. ZTE has demonstrated a focus on TL 9000, and this is one of the traits AT&T wants to see. TL focuses on the experience between customers and suppliers. You can see much-improved overall performance in companies that are using it. Q: How will ser vic e qualit y be affected by the growth of telecom services? A: Overall performance has improved and will continue to do so as more companies get involved. One of the benefits of the QuEST Forum managing the standard is that as new expectations emerge from the marketplace, we can quickly introduce new metrics to manage product performance. A product that provides video to an end user is a good example. I don t just want the hardware delivered on time; I also want the performance of the box to satisfy all requirements and expectations. With TL 9000, I can measure not only the delivery but also each of the built-in criteria to see whether the box is doing exactly what it is supposed to. If not, then every month we have a dialogue with our supplier to fix areas that aren t performing. We keep a scorecard that is red, yellow, and green. It s very easy for me, as an operator, to look at a company and see how much red is on their report. 4 ZTE TECHNOLOGIES APR 2012

7 VIP Voice If there s a lot of red, that means they have missed the metrics three months in a row. If it is green, then everything is ok. If it is yellow, it means they may have missed one time and it may just be an anomaly. So I watch them for a couple of months, and if they keep missing and their report turns red, I then pick up the phone and say Why do you have trouble on this metric? Let s figure out together how to fix that particular area of concern. Then we can put a plan together and watch the performance again. So TL 9000 gives me an easy way of looking at all my suppliers, and I have scorecards on approximately 200 suppliers. From a supplier s perspective, it is a two-way dialogue for joint improvement because AT&T wants to buy more from the supplier and suppliers want to sell more to AT&T. We have a common way to focus on these objectives, and we create much better solutions if we can measure results. The TL 9000 standard gives me metrics An interview that I can apply immediately to all the processes between myself and a supplier. That improves performance. We are looking for ways to improve the base level of performance across the industry so that everybody in the industry is better off. I want each supplier to be successful, and one sure way to be successful is to improve product performance. You have less things going wrong. We have proven that those who are involved with TL 9000 perform better overall within the industry. So if you are involved with and apply these approaches, you will be much more competitive than your rivals down the street. That is another reason why AT&T stays involved because it wants to see the entire industry improve its performance. For ZTE, the challenge is that you have many companies that supply parts to you. You have to make sure those individual companies have very-high-quality processes that meet your requirements. TL 9000 gives you a way of measuring how well your suppliers are meeting your requirements. It s a very practical quality standard. The other thing that is important about this standard is that you can take a process end-to-end. So all the steps along the way, from the time an order is placed to the time you manufacture and ship it, can be measured. Now you have a golden thread all the way through the processes to improve overall performance. If I talk to you about something that isn t working right, you have a very quick way of going back to see where a process isn t functioning properly. Q: You are leading the QuEST Forum s strategic initiative called Measurements for Next Generation Networks. How is this initiative progressing? A: The purpose of this program goes back to one of my initial statements: This is a living standard; it isn t static. As the requirements from the customer base and the marketplace change, we need to make sure that the standards keep pace with the new requirements. The overall performance of a network used to be good if it was 99.9% reliable. Now if you are not at least 99.99% or even % then you are not competitive. That changed because expectations in the marketplace changed. Because of that, we have to go back and look at the TL 9000 metrics to make sure we can measure progress towards that. T h e n e x t ge n e r a t ion n e t wo r k metrics that I am heading up involves 25 companies around the world. The team is made up of service providers and suppliers. They are looking at LTE 4G networks, IP-based networks, and the software for managing these networks. APR 2012 ZTE TECHNOLOGIES 5

8 VIP Voice They are building on metrics that already exist in TL to make sure they incorporate what has changed in this next generation set of requirements. We just introduced the first five changes last year. There is a list of 20 to 25 additional changes that will go through the process this year. The team develops the changes; all the members within the QuEST Forum have the chance to provide input on those; and then we trial the proposed measures. The information from the trial is shared with all members. If the changes accomplish what we anticipated, then they are adopted. We are constantly looking at what else can be included: security, software performance, software updates, the introduction of hardware into the networks, and the performance of this hardware. What used to be on-time performance may not be good enough to measure the actual performance of a solution. We have to look not just at the hardware itself but the overall solution. We are constantly considering new approaches to improve service. Introducing metrics that keep pace with ou r i ndust r y involves constant dialogue. There is a similar effort underway looking at current performance and reliability of the entire network. Excellent network perfor mance is a result of overall planning, engineering, construction and maintenance and encompasses a much broader set of issues than only supplier issues. Companies involved with TL 9000 are developing measurements that will affect customers when outages or service degradation occurs, which is extremely important when combined with software solutions delivered via high-speed data connections. There s a new set of metrics used for measuring the overall effect of the network on customer experience. From this set of metrics, you can improve the level of performance of the actual network and improve UE. This is another example of why the QuEST Forum exists and is relevant. We are constantly looking at what we can do to improve the overall standard and how the metrics help improve particular areas. Q: What s the future direction of TL 9000? A: One thing we are learning is that each region has unique needs relative to what s important. Take China for example. The greater China hub, a set of core companies of which ZTE is a key member, is looking at the unique requirements within China for companies that supply products and services. The QuEST Forum, working with government groups in China, is moving in the direction of creating a national standard for TL The greater China hub has already said that in order for TL 9000 to make real progress, it has to be adopted by the government s standards accreditation t e a m. O n c e it i s a d o p t e d, ot h e r companies can begin to participate, and we will make further progress. We have been working with the appropriate government agencies for the past 12 to 18 months. We signed an agreement at the end of 2011 on how the standard would be introduced, monitored, and controlled. We are now moving forward with this work. The North American group has a focus on building performance smalland medium-sized businesses in order to help these businesses become more competitive and provide better products. I n E u r o p e, t h e f o c u s i s o n measurement. We are developing the right set of metrics to allow European operators to manage the introduction of new technologies. Different regions have different requirements. That may seem obvious, but you learn more as you are able to interact with various groups. Different areas in the world have different requirement s de pend i ng on what technology they are using at that point. That s part of what s going on right now. We re managing different requirements and needs within each region all built 6 ZTE TECHNOLOGIES APR 2012

9 VIP Voice on the same TL We hold best practices conferences each year. Each region has a different focus, and we hold three conferences across the globe. The last one was in Beijing in November It was a tremendous success. We bring in local companies that have implemented TL 9000 and talk about things that are working and things that aren t working so that other companies learn how to implement TL In April, we will hold a best practices conference in Delhi; we hold one in Madrid in June; and we will hold one in Chicago in September. There has been some confusion in the past about how TL 9000 relates to other quality standards. TL 9000 includes ISO If you obtain TL 9000 certification, you automatically obtain ISO If you obtain ISO 9001, you have to go a little bit further to obtain TL Companies also use other quality techniques and tools, such as Six Sigma and Lean, to help them manage specific issues. TL is a foundation, and then you can use other quality tools to improve specific areas within your quality programs. TL 9000 itself is a great building block, and the QuEST Forum manages it so that others can learn. We keep the standard fresh. It is a great opportunity for companies around the world to shape where the standard goes in the future. Q: What do you expect will be ZTE s contribution to the QuEST Forum in the future? A: ZTE is a founding member in China, and its contribution is expected to be very large. ZTE has been the co-chair of the QuEST Forum management team (greater China hub) since its inception and has been very active in getting TL 9000 adopted as a national standard. ZTE also sits on the executive board, which is made up of many companies around the world. So ZTE has great influence and is participating in a number of next generation metrics groups. The executive board agreed to pursue two initiatives a year ago. They intend to improve current metrics, and they intend to develop next-generation metrics. ZTE is participating in both of those initiatives and has been very involved in shaping where the standard has gone and where it is going. ZTE is also involved in the best practices conferences. ZTE has given tremendous presentations on the use of TL At the most recent conference, ZTE and Shanghai Telecom gave a joint presentation describing how they used TL 9000 together to introduce a new product. It was very well received and was one of the best presentations we ve seen on how two companies jointly use TL 9000 to improve a new service delivery. So ZTE and Shanghai Telecom are examples of the implementation of quality systems and how to do it right through the use of TL ZTE s influence has been tremendous, and ZTE has done excellent work in the QuEST Forum. Q: AT&T has cooperated with ZTE on several handset models. Could you give us some advice on improving handset quality? A: First of all, congratulations to ZTE on being in our lineup of handsets. It is very tough competition every year. I think this is our fourth year with ZTE handsets. Quality is very important for handsets. Our suppliers test their devices, then give it to us, and then we take it through an introductory testing process. If something surfaces when customers begin using the handset, it is important to quickly react. As managers change and people retire, you have to continually train the next manager to use the tools and techniques the previous manager used. You have to constantly educate your employees and management team so they are able to implement the latest and greatest quality improvements. There are ten handset companies in the world we do business with, and you are one of them. This is a good thing for ZTE, and it is supported by your TL 9000 quality performance levels. APR 2012 ZTE TECHNOLOGIES 7

10 VIP Voice Smartfren: Migrating for a Better Future Reporters: Liu Yang & Zhao Rujing Smart Telecom is an Indonesian cellula r telecom mu n icat ion provider that uses CDMA X, EV-DO Rev A, and Rev B to service retail and corporate customers. Faced with increasing competition, Smart Telecom decided to join hands with Mobile 8 under a new brand, Smartfren. This merger required two platforms to be unified, and a converged business support system (BSS) and value added service (VAS) solution was used for this purpose. Replacing the old system and migrating existing Smart Telecom and M8 subscribers into a new platform was not an easy task. Close cooperation between ZTE and Smartfren ensured the original Smart Telecom system was migrated in only four months, and the Mobile 8 system was migrated in the following two months. ZSmart BSS and VAS system operates well, and the number of Smartfren data users is increasing quickly. The project has been such a success that 14 operators, including Gunadjaya Likito, Smartfren s chief information officer and purchasing manager for the BSS and VAS platform project 8 ZTE TECHNOLOGIES APR 2012

11 VIP Voice France Telecom and Vodafone, came to see the Smartfren system in operation. What were the biggest challenges in the project? What benefits have been brought to Smartfren? ZTE Technologies i n t e r v i e w e d G u n a d j a y a L i k i t o, Smartfren s chief information officer and purchasing manager for the BSS and VAS platform project, on January 10 in his Jakarta office. Jour nalist: In 2010, Smar t fren converged two networks owned by two operators. What were the biggest challenges and risks? How did Smartfren overcome them? Gunadjaya Likito: Since we began this project in June 2010, we have encountered many challenges and risks. First, there are distinct differences between the features and workf lows of Smart Telecom and M8. There was much work involved in ensuring that all the features of the old platforms were seamlessly migrated and that the migration was transparent and did not affect user experience. Any missing feature could have adversely affected the work of users and degraded service quality. We consulted end users of our platform to ensure all existing and desired features had been maintained. From the beginning, we made sure the ZTE team clearly understood the features of our platform. Second, there was no support from the legacy vendor. This lack of support makes the project very difficult and risky because the old system might not work properly in the case of a roll back. Fortunately, Smart Telecom and M8 personnel had very good knowledge of the old platform, and this knowledge was crucial when planning and implementing the migration. Consequently, there was no need for a roll back for either Smart Telecom or M8. Last, the deadline was very tight. Smart Telecom was under pressure to migrate the platform no later than by the end of October M8 also had little support from its network and platform provider. A delay in the migration could have caused Smart Telecom to come under undue pressure from its old vendors. The project was very tightly managed, from management down to working team. All Smart Telecom, M8 and ZTE personnel spent long work hours maximizing productivity and ensuring each target date was met. Journalist: What are the technological highlights of ZSmart BSS and VAS system? Gunadjaya Likito: ZSmart BSS and VAS system is a converged charging and billing platform for voice, data and VAS. The platform supports converged billing for both prepaid and postpaid, and this enables us to flexibly switch between prepaid and postpaid payment methods. The new system provides unified customer view, and tariff and business data management. The system also is powerful for analyzing customer use and charging, so we can monitor ongoing business from different angles. The system is also highly available. We deployed the ZSmart BSS and VAS system at three sites, two of which are redundant. This unique design ensures the stability and continuity of service. Journalist: What benefit has the converged platform brought to Smartfren? How has ZTE strengthened Smartfren s competitive edge? Gunadjaya Likito: By converging two platforms, system capacity is used more efficiently. There is no need to provide twice the redundancy or spare capacity. This is a more cost-effective solution than having two separate platforms. It is easier to operate and maintain a APR 2012 ZTE TECHNOLOGIES 9

12 VIP Voice single platform, and there is no need to have separate teams maintaining the old platforms. The teams can be merged, and this enables more focused operation and management of the platform. Furthermore, by unifying Smart Telecom and M8 services and features, a single brand can be easily realized. We can conveniently design merged products and cross offers. Merging leads to stronger Smartfren brand recognition and loyalty. Journalist: How are your value-added services developing? Gunadjaya Likito: Existing VASs have been enhanced by the new platform. We have greater flexibility in product offering. It s easy for us to design cross selling and up selling. Thus, the customer experience is enhanced. The platform is also open to new services, and we rely on ZTE to present to us new VAS innovations that can be used by Smartfren to widen our offerings and increase our competitive edge. Journalist: How do you rate ZTE s project team? Can you give us a specific example that highlights strength of ZTE s project team? Gunadjaya Likito: Overall my rating for the project team is good. The ZTE team is generally very willing to learn and is open to suggestions from the customer. This leads to a more harmonious working relationship between Smartfren and ZTE. Most of the ZTE project team exhibited a high level of commitment to meet the deadlines, and on many occasions, they worked very long hours. They are very flexible and supportive of any changes prompted by changing strategy and market conditions. Afterword Gunadjaya Likito has many years of experience in IT operation. He works in the IT center in BSD City, which is an hour from Jakarta. He shows the rigor of a technical manager when he explained the network figures to us in detail. In a project that was full of technical challenges and needed to be completed in such a short timeframe, both parties spared no effort. He was impressed with ZTE s 200 strong team, who were sent to Jakarta for the implementation and worked throughout the holiday. From June to December 2010, ZTE and Smartfren had daily and weekly meetings to assess the project s progress. Any problem that couldn t be solved in these meetings was brought before the top management of Smartfren. Gunadjaya Likito himself usually works from 8 am in the morning to 8 pm at night. He told us that the window for maintenance is usually between 1 am to 2 am in the early morning, so he had to work very late. But it is fine, he said, as if he had become used to such hard work. He stayed overnight in the IT center when the old system was cut over to the new one. A successful project requires a good solution, but also hard work and thorough communication. In 2012, Gunadjaya Likito wants to strengthen operational monitoring to optimize workflow. 10 ZTE TECHNOLOGIES APR 2012

13 Tech Forum Evolving from Internet to IDN By Zhang Chaofeng & Wu Qiang The advanced research projects agency net work (A R PA net) developed by the US Department of Defense was the world s first Internet. Today, it uses TCP/IP to connect a large number of computers and networks. The main design concept of ARPAnet and TCP/IP is to establish a network without a core so that when one part of the network fails, the remaining part can automatically choose an alternative route to ensure smooth connection. TCP/IP also supports interconnection of heterogeneous networks. The Internet now not only encompasses conventional wired computer networks, it also extends to mobile telecom networks. The booming number of applications is a great challenge to the Internet in terms of mobility. Internet and TCP/IP architecture was originally designed at a time when there were no mobile networks. Mobility of IP terminals is now a great challenge for upper-layer services. The root of mobility issues is the dual role of an IP address; it is both the identifier and locator of an IP terminal. A telephone number in a PSTN is only the subscriber s identifier. security. In the early years of Internet growth, there were few malevolent users who attacked network devices. Therefore, there was not much importance attached to network security. Unlike the Internet, PSTN available to public access is well protected against malicious attacks. proliferation of routing capacity. ARPAnet designers never envisioned the Internet would grow into what it is today, nor did they expect that the bulky routing table would become a huge burden to router CPUs. Only when these challenges have been resolved can Internet be a greater success. Zhang Chaofeng, chief engineer of ZTE Data R&D Center Wu Qiang, chief product planning engineer of ZTE C e n t r a l R & D Institute APR 2012 ZTE TECHNOLOGIES 11

14 Tech Forum Host 1 Host 1 Moves Host 1 BG 1 BG 2 Authentication Center An identifier network (IDN) is one of the best systems to meet these challenges. Mobility PSTN uses a telephone number as a subscriber identifier. Various telecom services and billing systems differentiate subscribers according to their telephone numbers. A telephone number is only a logical identifier of a subscriber, and a physical port number on the subscriber line board is actually the physical location of the subscriber. An OAM staff member associates the physical port number with the telephone number and stores it in the database. During service deployment, the infrastructure network completes service addressing. The infrastructure network can find a subscriber s physical location by using his telephone number or search a subscriber s telephone number using his physical location. Therefore, in principle, a subscriber s telephone number is portable when he moves to another place or changes to another operator. However, an IP add ress in the Internet and TCP/IP architecture serves dual roles. It can be used as an identifier to address a specific host or as a locator to specify a user location. When moving to another place or another network Backbone Router Mapping Server Figure 1. IDN architecture. BG 3 Host 2 Host 3 segment, a user must change the IP address to a new one. It is therefore necessary to re-establish the TCP and UDP paths based on the source and destination IP addresses as well as the source and destination port numbers. All services carried over TCP and UDP are interrupted during the change of IP addresses. Services that identify subscribers with IP addresses are interrupted and need to be redelivered. C u r r e n t l y, t h e r e a r e s o m e technologies, including mobile IP, that can remedy defects in Internet mobility; however, these technologies cannot be widely deployed because they have minor improvements and bring about a new problem called triangle routing. IDN, however, is considered a breakthrough in Internet mobility. The basic concept of IDN is to separate the user identifier from the locator. A user or host is assigned two roles: identifier and locator. The identifier does not change as the host moves to a different location. The locator changes as the host moves, but it is only used for network addressing instead of identifying the host or user. Services on the TCP path, UDP path, and network all use the identifier and are not affected by the host changing location. When a host with an identifier accesses the network, related access devices assign a correct locator to the host and associate the locator with the identifier. N e t wo r k e l e m e n t s ( N E s) a r e logically divided into hosts, mapping server, and border gateways (BGs). Hosts can be identified by identifiers or locators. Identifiers are used to identify communication peers for end-to-end communication, and locators are used to identify current host locations for packet-forward routing. To maintain compatibility with the Internet, both host and mapping identifiers use IPv4 or IPv6. The mapping server stores mapping relationships between host identifiers and locators. The identifiers remain unchanged as host subscription information. BGs assign locators to hosts based on their locations. Working in collaboration with the mapping server, BGs update in realtime the mapping relationships between host identifiers and locators stored in the mapping server. When host 1 sends a communication request to host 2, BG 1 looks up the locator of host 2 in the mapping server based on the identifier of host 2 and stores the lookup result into its mappingroute table. BG 1 updates the identifier/ locator mapping information of host 2 in real-time and uses the mappingroute table for packet encapsulation, r o u t i n g, a n d f o r w a r d i n g. A f t e r receiving encapsulated packets from BG 1, BG 3 decapsulates them and sends the decapsulated locators to a communication peer. When a host changes its location, a BG registers its new location on the mapping server and notifies the communication peer so that they can communicate using the new locator. 12 ZTE TECHNOLOGIES APR 2012

15 Tech Forum Security Security threats also pose a great challenge to Internet growth. Network security involves device security and information traceability. T he cu r rent I nter net does not technically separate the service layer from the bearer layer. The bearer layer is available to public access and therefore is vulnerable to malicious attacks such as network password theft and network saturation attack against protocol ports. PSTN, however, separates users from the bearer layer and makes bearer entities, such as trunk lines and signaling networks, inaccessible to telephone users. Similar to PSTN, IDN roots out the possibility for common users to attack network devices by separating users from the bearer layer. Common users cannot have peer-to-peer IP communications with core network devices nor obtain their IP addresses by tracing routes. Because of the lack of a unified Internet identifier management system and the constant changes of managedobject identifiers, security management measures are passive and lagging behind the Internet s growth. Adopting dynamic address allocation or a private network with NAT because of IP address shor tage in the IPv4 environment makes it difficult to trace security events. However, IPv6 can assign a fixed identifier to each host. This helps improve network information credibility. Leveraging openness, simplicity, and information sharing, IPv6 is expected to establish a sound security guarantee system that can authenticate and trace network information, improve accuracy and real-time network management, and implement reliable, integrated management of networks, services, and users. Growth of the Internet calls for a unified identifier management system to separate identifiers from locators so that Internet infrastructure can better support service correlation, enhance network security, and isolate networks from applications. Proliferation of Routing Capacity With the increasing number of network users and autonomous systems, the number of IPv4 routes has reached 300,000. Although IPv6 can expand IP address space, the cause for routing table expansion has not yet changed fundamentally, and routing tables will continue to grow. According to real-time network statistics, the convergence time of border gateway protocol lasts for 15 minutes during the route update because of routing table expansion. A lot of packet loss and routing oscillations occur before the convergence. An oversized routing table results in a heavy load on routers, decreases convergence speed of the backbone router, and increases convergence frequency. Because of these, the network is unstable. In IDN, a host identifier is not used for addressing in the core network and is unavailable to other devices except border gateways. The subnet route where the identifier is located is not listed in the routing table. Location information is used for addressing. The location information is only correlated with a limited number of border gateways, so the number of routing tables in IDN is at least three orders of magnitude less than that in the Internet. With the development of 3G and 4G, a network can deliver data rates up to a few or even tens of megabits per second to a single wireless user. Mobile services are becoming the biggest driver of Internet growth, and mobile networks are evolving from mobile access networks to mobile Internet. IDN that accommodates mobile Internet demands will further fuel the evolution. Feature-rich services and hundreds of millions of existing terminals are valuable for booming Internet growth and also a major focus of innovative technical solutions. IDN can be widely applied in different scenarios because it accommodates the constraints of the Internet at different evolutionary stages, supports interoperation and coexistence with existing mainstream technologies, and allows smooth evolution. IPv6 and LTE will dramatically change Internet user groups and applications and will enhance mobile Internet. This is also an unprecedented opportunity for IDN. APR 2012 ZTE TECHNOLOGIES 13

16 Special Topic: Mobile Internet 14 ZTE TECHNOLOGIES APR 2012

17 Special Topic: Mobile Internet Trends in Mobile Internet Business By Li Jun Li Jun, chief engineer of ZTE s Internet business As 3G networks develop and smartphones become more popular, mobile Internet is gaining more momentum than PC Internet. Mobile Internet has brought about new mobile experiences, allowing people to check , surf the web, stream videos, and post to social networking sites anywhere and at any time. Mobile Internet has penetrated into daily life and greatly changed the way we work and live. Internet business operation has completely changed. Mobile Internet is neither a simple duplicate of PC Internet nor a collection of webbased value-added mobile services. Diverse user demands have raised higher requirements on mobile Internet business operation. User Experience M o b i l e I n t e r n e t i s o p e n a n d collaborative, like PC Internet, but it also inherits the realtime, privacy, convenience, and location features o f m o b i l e n e t w o r k s. I n m o b i l e Internet business, there are three main characteristics of user experience: Socialization. People demand Internet applications that go beyond simple information searching. They want interaction and participation, not just passivity. Socialization is an inevitable trend in mobile Internet business. In recent years, microblogging has become popular in China. It is the trendiest social networking model for Chinese netizens. SNS brings users together around shared interests such as music, sports, movies and business. Microblogs are changing people s social relationships. Localization. People can connect with others around them and can also keep abreast of news and information that is closely related to their daily lives. Websites such as Dianping, Groupon and OnCity have become popular because they cater to the needs of local people and retain them with local services. A person living in Nanjing can find out about sight-seeing, food, clothes, houses and transport in the city and can make local friends. Personalization. The core competitive advantage of mobile Internet is personalization. It is easy to offer personal services through mobile Internet. People s need for customized services can be easily known and satisfied. These three main characteristics need to be taken into consideration when creating outstanding mobile applications. ZTE s mobile reader and e-game solutions are developed around these characteristics. Browsers and Apps Coexist In 2009, Apple launched its AppStore with hundreds of thousands feature-rich applications. The newest and most fun applications are current hot topics among both Apple and Android users. However, only about ten apps are commonly used. Therefore, apps do not mean everything to mobile Internet. Browsers were once dominant in the APR 2012 ZTE TECHNOLOGIES 15

18 Special Topic: Mobile Internet early age of PC Internet, and there were quite few apps at that time. However, in the second stage of PC Internet development, clients became important. From 2004 to 2007, people had to install many software programs on a new PC. They returned to using a browser to access data after 2007, when main application browsers were supported. Video and in-game web browsers have found favor with users in recent years because special clients do not need to be installed. Today, mobile Internet is in a stage similar to the second stage of PC Internet, where there is an upsurge in the number of apps. In the PC Internet era, browsers were the gateway for users to access the Internet. Many functions and applications could be accessed through browsers. In the wireless era, Apple has defined apps as the gateway to mobile Internet. These mobile apps give a different experience because mobile phones may be based on different operating platforms. To ensure consistent UE, a cross-platform application model has to be found for these apps. Middleware, VAC, and web widgets have arisen as a result. These have evolved in a way similar to that of browsers. HTML5 makes browsers as powerful and useful as mobile apps. As phones and browsers become more powerful, browsers and apps will coexist to meet diverse needs. Facebook has planned to build its own web app system. It is reported that Facebook is secretly working on Project Spartan, based on HTML5, in order to get rid of the restrictions of Apple s AppStore. ZTE has also been developing crossplatform applications. ZTE has worked out a solution for a unified client software platform and will further develop the browser-based application mode. Innovation is the Key to Success The rapid growth of mobile Internet has blurred the boundary between the upstream and downstream industry chain and has impacted the telecom business. Terminal vendors are transforming into content providers and virtual network operators, and Internet companies are expanding their roles as network operators and terminal vendors. Fierce market competition puts network operators at a disadvantage. Terminal vendors and Internet companies have adopted new business models that affect operator services such as voice and SMS. An innovative business model is the key to success. Relying on the traffic-based forward charging model, traditional telecom operators reaped huge profits from SMS and WAP. The backward charging model of search engine and advertising used by Internet companies has also proven to be a great success. What are successful business models in the mobile Internet era? Apple s iphone AppStore is a successful business model. iphone has been leading the smartphone market since its launch in June The success of iphone can be attributed to its innovative business model as well as cutting-edge multiservice integrated design and unique UE. Apple always partners with the largest local mobile operator to bundle its iphone packages. The mobile operator is the exclusive local distributor of iphone, and Apple gets a pre-agreed percentage of the revenue brought in by iphone. With this revenue-sharing business model, Apple excludes other competitors in the market. With its online itunes app stores, Apple is changing rules in the mobile marketplace with a new revenue sharing model of user generated content (UGC) and user generated applications (UGA). Apple s successful iphone business model is a paradigm for mobile terminal vendors to establish themselves in mobile services, and its unique itunes ecosystem is a reference for mobile operators. ZTE is now developing China Unicom s mobile reading base and WoStore application stores. ZTE is also developing China Telecom s e-surfing factory and Jiangsu Telecom s gaming services. Innovative business models are being used in these projects to push forward the development of mobile Internet. Although the mobile Internet has not been fully developed, in the future, any service will be possible through mobile Internet and it will become the most convenient and widely used gateway in the information era. Innovation is the driving force for advancement in mobile Internet services. Faced with a promising mobile Internet market, ZTE needs to keep innovating to provide valuable application services for clients and to satisfy increasing user demands. 16 ZTE TECHNOLOGIES APR 2012

19 Special Topic: Mobile Internet Opening Network Capabilities in the Mobile Internet Age By Yao Yuan Openness and cooperation in mobile Internet is the consensus of leading telecom vendors worldwide. Google, a pioneer in opening network capabilities, has opened its Android mobile phone platform, App Engine cloud computing platform, and application programming interfaces (API) such as search, map and Opensocial. F a c e b o o k b u i l d s i t s c l o s e d S N S applications into an open social network platform and turns its huge volume of website traffic into operating revenue. Since China s leading social network site, Renren, launched its open platform, Tencent, Sina, Baidu, Alibaba and 360 have all launched open platforms. Major telecom operators are following suit by devising openness strategies to seize the mobile Internet market. The upsurge in open platforms has led to an explosive increase in the number of APIs. The number of APIs in 2005 was only 105; however, only six years later, it is Developers seem unsatisfied with current fast-developing open platforms. Openness is not merely a slogan, a concept, or even an attitude. The aim of openness is to create profit for every party involved. Opening network capabilities to create win-win situations is the best policy. Resources Developers Most Need to Open Successful platform openness needs a business ecology that profits operators, developers, and content providers. In recent years, operators have opened their traditional SMS, MMS, WAP and voice capabilities, but this has not aroused much interest from developers. To attract developers, operators should know first what developers need most. French consultancy company, Moriana, have found that billing and charging, location, and user profile data are the most important capabilities for developers. Similarly, a survey on the open Taobao platform shows that the most popular APIs are stores and shops, transaction, logistics, products, charging, and user rating. Therefore, to create a successful open platform, operators need to break away from traditional means of opening telecom capabilities; they need to open capabilities from a service perspective rather than from a capability engine perspective. Advantageous Resources Operators Can Open Opening network capabilities doesn t mean a blue ocean opportunity for operators. It is far from enough for operators to follow the business mode of Internet companies. Operators have to seek their own advantages. They can focus on four resources to form their own core competencies: User resources. In this area, operators APR 2012 ZTE TECHNOLOGIES 17

20 Special Topic: Mobile Internet Service Development Environment Service Test Environment Capability Programming Developer Portal CT Capability Engine SSP/MSC/CSCF Figure 1. Architecture of ZTE s open network platform. have an advantage over Internet companies. User profile data obtained by operators is true and reliable. This user profile data, analyzed by professional data analysis systems, is of interest to developers. Network resources. Operators have telecom and IT capabilities that Internet companies do not have. Developers can use these capabilities in services to enhance product innovation. Billing and charging resources. Billing and charging systems that operators provide are often accurate, flexible and secure. Most operators have obtained a payment license, so developers can use the billing systems of operators to charge users and directly settle their accounts with the operator. Infrastructure resources. Operators Portal Service Execution Environment Execution Engine Service Container Resource Convergence Gateway SOAP/REST Service Bus CT Capability Adaptation Rule Engine Other Capability Adaptation Other Capability Engine IT Capability Workflow Engine Management Portal Internet Capability Service Data Management User Management Resource Management Subscription Management Data Synchronization & Configuration Management Log Statistics / Settlement Management have ICT infrastructure that can provide developers with application tests, deployments and managed services. Operators can open their resources by providing standard interfaces so that third-parties can call up relevant resources. This lowers the threshold for developers to create smooth, impressive applications. Operators can also provide open platforms for developers to replace or trade their own resources. Through open platforms, operators can provide developers with one-stop services for development, testing, deployment, and release. ZTE s Open Network Platform Solution ZTE s open network platform solution is designed to converge mobile network and Internet resources in order to build an open platform for applications and to create a complete mobile Internet industry chain for operators, application developers, capability providers, and advertisers. ZTE s solution provides simple endto-end services for developers, operators, and capability providers. It provides access to telecom networks and Internet. It screens lower-layer protocols, lowers the development threshold, and opens capabilities in a unified way. It provides developers and partners with one-stop development, testing, deployment, and release services. It provides public and enterprise users with fast access, triple-screen experience, and customized services. The open platform attracts and retains users. It is an incubation base that provides a variety of innovative applications for front-end sales platforms. I t p r o v i d e s d e v e l o p e r s w i t h materials and tools (SDK) as well as environments for service development, test and execution. It provides developers with a community network for technical exchange, experience sharing, and Q&A. Developers can release their creative ideas or submit applications. T h e y c a n a l s o g e t t h e l a t e s t development materials and tools, and evaluate and recommend them. ZTE has supplied open network platforms for leading operators around the world, including France Telecom, SFR, Telenor, China Mobile, China Telecom and China Unicom. Opening capabilities for win-win cooperation is coming true in the age of mobile Internet. ZTE is well positioned to work with all partners in the industry towards a successful future. 18 ZTE TECHNOLOGIES APR 2012

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