Tiscali: Consolidating a Level Playing Field in the Telecom Market Unitel:

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1 OCT 2014 VOL. 16 NO. 5 ISSUE 154 VIP Voices Tiscali: Consolidating a Level Playing Field in the Telecom Market Unitel: Delivering Advanced Communication Technologies to All Laotians Special Topic: Broadband Access FTTM Enables Rapid and Flexible LTE Deployment Tech Forum 1G to the Home: Vision and Initiation Andrea Podda, CTO of Tiscali

2 07 CONTENTS ZTE TECHNOLOGIES OCT 2014 Tiscali: Consolidating a Level Playing Field in the Telecom Market Tiscali is an Italian telecom company founded in 1998 in Sardinia. After the liberalization of the telecom market in Italy, Tiscali became one of the main alternative operators in Europe. Tiscali sees itself as an independent telecom operator, and this characteristic has contributed greatly to its success. What makes Tiscali such a strong player? Where are the growth opportunities for Tiscali today? Reporter Zhu Yiwen interviewed Andrea Podda, CTO of Tiscali. 11 VIP Voices Tech Forum 14 Tiscali: Consolidating a Level Playing Field in the Telecom Market Reporter: Zhu Yiwen Unitel: Delivering Advanced Communication Technologies to All Laotians Reporters: Zhu Tao and Zhang Zhe 1G to the Home: Vision and Initiation By Heng Yunjun Special Topic: Broadband Access FTTM Enables Rapid and Flexible LTE Deployment By Qin Yewen vftth Enables a Unified FTTx Management By Zhang Haijun U-Cable: A Big Leap for Cable Operators By Wang Xinsheng FTTdp: Tailored to Operator Needs By Shi Jie 1 ZTE TECHNOLOGIES OCT 2014

3 14 17 ZTE TECHNOLOGIES Editorial Board Chairman: Zhao Xianming Vice Chairmen: Chen Jane, Xu Huijun, Zhu Jinyun Members: Bai Yanmin, Cui Li, Feng Haizhou, Heng Yunjun, Huang Liqing, Huang Xinming, Jiang Hua, Li Aijun, Li Guangyong, Lin Rong, Li Weipu, Lu Ping, Lu Wei, Lv Abin, Sun Zhenge, Wang Xiaoming, Wang Xiyu, Xin Shengli, Xu Ming, Yang Zhaojiang, Ye Ce, Yu Yifang, Zhang Shizhuang Success Stories Solutions China Mobile: Building a National Backbone Transport Network in Western China By Alateng Buhe Eight-Antenna LTE FDD System of Xuzhou Telecom By Wang Bin and Li Qianghua Press Clipping 36 ZXTOP 510: A Complete Solution for Intelligent Network Planning and Design By Li Fei ZTE s New-Generation OTN Solutions By Zhu Xuetao ZTE Is the Fastest Growing of the World s Top Three LTE Suppliers Source: lteconference.wordpress.com Sponsor: ZTE Corporation Edited By Shenzhen Editorial Office, Strategy Planning Department Editor-in-Chief: Sun Zhenge Deputy Editor-in-Chief: Huang Xinming Editorial Director: Liu Yang Executive Editor-in-Chief: Yue Lihua Editor: Zhang Ying Circulation Manager: Wang Pingping Editorial Office Address: NO. 55, Hi-tech Road South, Shenzhen, P.R.China Postcode: Tel: Fax: Website: wwwen.zte.com.cn/en/about/ publications A technical magazine that keeps up with the latest industry trends, communicates leading technologies and solutions, and shares stories of our customer success OCT 2014 ZTE TECHNOLOGIES 2

4 ZTE News ZTE to Sustain Triple-Digit Profit Growth in Nine-Month Forecast 20 August 2014, Shenzhen ZTE forecast that net profit will more than triple in the first nine months as the strong momentum in the company s 4G LTE business is sustained. Net profit attributable to shareholders of the listed company will be between RMB 1.7 billion and RMB 1.9 billion in the first nine months, an increase of between 208.2% to 244.5% from a year earlier, according to guidance released by the company today. ZTE also reported today that first-half net profit increased 263.9% to RMB 1.13 billion. Six-month basic earnings per share was RMB 0.33, while revenue increased to RMB 37.7 billion. The latest forecast by ZTE reflected strength in revenue from network contracts and ongoing improvements to contract profitability in the first nine months, supported by continued investments by customers in 4G networks in China. The company expects to post a year-on-year increase in revenue in the first nine months, as ZTE reaps returns on its investment in the development of key strategic products such as network routers and chipsets. The company also expects gains from more effective foreign exchange management. During the first half of 2014, ZTE reported rapid growth in operating revenue from carrier networks in China as the company played a leading role in supporting massive constructions of 4G networks. Gross profit margin improved substantially as the company adhered to its strategy to focus on servicing network contracts with higher profitability. ZTE posted positive operating cash flow in the first six months, for the first time in the past ten years. Operating revenue from handset terminals in the domestic market fell in the first six months. Geographical Distribution In the first six months, ZTE reported operating revenue of RMB billion from the domestic market, accounting for 51.1% of the Group s overall operating revenue. Leveraging opportunities presented by the large-scale deployment of 4G networks, the Group committed to efforts to develop business in emerging new sectors such as the Mobile Internet and Cloud Computing under its M-ICT Strategy. Innovative solutions were launched with enhanced in-house capabilities, while strategic cooperation with carriers was conducted in a practical manner to maintain the Group s dominant position and increase its market shares, laying the foundations for sustainable long-term development. ZTE reported operating revenue of RMB billion from the international market, accounting for 48.9% of the Group s overall operating revenue. In adherence to the strategy of focusing on major populous nations and mainstream global carriers, the Group further optimized its market profile to achieve stable operations and quality growth. Distribution by Products In the first six months, the Group reported operating revenue of RMB21.84 billion for carrier networks. Operating revenue for handset terminals amounted to RMB billion. Operating revenue for telecom software systems, services and other products amounted to RMB 5.46 billion. In connection with wireless products, ongoing innovation and enhancement in product competitiveness provided the driving force behind growth. For example, the Group s innovative Cloud Radio solution has boosted sales of 4G products in the domestic and international markets, especially in China, where the Group continued to assume a leading position in 4G product tenders, with effective growth in market shares. In the traditional 2G/3G markets, stable growth was achieved as the Group continued to optimize its market profile. In anticipation of future developments in wireless communications, the Group issued a white paper on 5G technologies and designated the development of 5G technologies as a strategic project. In connection with wireline and optical communications products, the Group maintained its technological edge and ability to innovate products in close tandem with the development trend of the broadband market. In connection with cloud computing and ICT products, the Group also made significant breakthroughs in cloud computing/big data and data center products. ZTE mobile devices was established as a standalone operation in the group, focused on the shift to a more consumeroriented and internet-driven approach. Resources are mainly committed to the creation of premium handsets, applications and software in a bid to enhance the Group s product competitiveness and 3 ZTE TECHNOLOGIES OCT 2014

5 ZTE News user experience. During the first half of 2014, the Group launched a variety of premium handset models targeted at different consumer groups. The Group s brand recognition among consumers has been improved following vigorous efforts to develop new sales channels such as e-commerce platforms. Technology Innovations Creating value for customers has always represented a core principle of the Group. We are committed to value creation for mutual development with our customers through innovations in technologies and products, on the basis of a profound understanding of customer requirements and expectations. At the beginning of 2014, the Group announced the M-ICT strategy, with the aim of becoming an enabler in the M-ICT era that facilitates the creation of value through information and shifts from customer focus to user focus. In terms of product strategy, the Group was focused on broadband-based 4G products, including wireless, wireline, terminal and broadband businesses. Government and corporate networks and services, a sector holding out enormous market potential, also became one of our focuses for development. We have also established the CGO Laboratory as an engine and incubator for future innovations to develop new businesses and sectors. The Group maintains an annual R&D budget equivalent to approximately 10% of its sales revenue. The Group has established 18 R&D centers in China, the United States, Sweden, France and other regions, as well as more than 10 joint innovation centers in association with leading carriers to ensure success in the market through better assessment of market demand and customer experience. As at 30 June 2014, the Group held patent assets of over 53,000 items, including granted patents of over 17,000 items and PCT international patent applications for over 15,000 items. With memberships at more than 70 international standardization organizations and forums, convenorships and presenter roles at major international standardization organizations taken up by over 30 experts from the Group, the presentation of over 28,000 research papers in aggregate and editorships and authorships for more than 200 international standards, the Group continued to foster its leading edge in technologies and patents for key products and technologies, ensuring ongoing enhancement in its ability to counter patent risks. In the first six months of 2014, the Group undertook leading roles in the R&D and industrialization of more than 10 projects including the National 863 Project, Electronic Development Foundation, Cloud Computing Project, North Star Project and Guangdong Technology Program. Outlook Looking to the second half of 2014, opportunities as well as challenges will abound in the traditional telecom industry, as traditional telecom sectors and emerging internet sectors continue to evolve with innovative forces rapidly overhauling traditional enterprises and business models. In connection with carrier networks, the telecom industry will welcome a new investment cycle with large-scale deployment of 4G networks around the world, especially the issue of 4G licenses in China and the approval of the trial operation of TD-LTE/LTE FDD hybrid networking. However, carriers must address the issue of dumb pipe or dumb information as they become fully engaged in 4G operations, and business opportunities will abound for those who are able to create value out of information. In the government and corporate service sectors, the in-depth amalgamation of mobile internet and traditional industries, the information revolution triggered by emerging technologies such as the internet of things, cloud computing and big data, as well as the increasingly heightened issue of information security will also present market opportunities. In connection with handset terminals, the next-generation smart terminals will be more intelligent and flexible with more integrated features. There is a trend to develop the smart terminal into a wearable device, as innovation and the fulfillment of consumer needs becomes a crucial factor. To address the opportunities and challenges, the Group will strategically integrate and focus its resources during the second half of 2014 in adherence to its core business principle of Innovation and Intensification. We will continue to focus on carriers network products and strengthen the vertical integration of our public sector and enterprise ICT business and handset business, striving to generate increased returns. OCT 2014 ZTE TECHNOLOGIES 4

6 ZTE News ZTE Receives Frost & Sullivan Technology Leadership Award in Africa for Its Green Power Solutions 15 August 2014, Cape Town, South Africa ZTE has been awarded the 2013 Frost & Sullivan Award for Technology Leadership in Africa, based on Frost & Sullivan s recent analysis of the green ICT power solutions market. ZTE s ICT power solutions offer green, uninterrupted power supply and energy-saving technologies, and are helping address many of the challenges relating to power availability and environmental pollution facing the African continent. ZTE s green energy solutions, including battery-diesel generator (DG) hybrid power, solar power, solar-dg hybrid power, wind-solar-dg hybrid power, solar video surveillance, solar pumping, solar street lighting, home solar power, photovoltaics (PV) on-grid power plant and low voltage solar power plant solutions have been implemented in many countries in Africa, the Middle East, Asia and South America. ZTE Wins COSMOTE Romania LTE Contract 25 August 2014, Shenzhen ZTE has won a wireless project contract from COSMOTE Romania, the largest multinational mobile operator in the Balkans, to transform its existing 2G/3G network and build a new LTE network in southern Romania. The deal is expected to require construction of more than 3,000 base stations, reinforcing ZTE s leading place in the European LTE market. Based in Greece, COSMOTE Group has its major operations in South Eastern European countries, including Greece, Albania and Romania. Deutsche Telekom is the largest of its shareholders, holding 40 percent of shares in Greece s OTE Group. In 2012, COSMOTE Romania won the auction for the 25M 1800M and 10M 2600M LTE spectrums and planned to launch LTE services in the hope of better customer experience and competitiveness. In 2010, ZTE successfully completed a UMTS project for COSMOTE Romania using ZTE s industry-leading SDR technologies and network delivery capabilities. The previous cooperation on UMTS networks has laid a solid foundation for further work on LTE projects between COSMOTE and ZTE. ZTE Partners with Blue Jeans Network to Enhance Video Collaboration Services Products 25 August 2014, Shenzhen ZTE announced a partnership with Blue Jeans Network, the global leader in interoperable video collaboration services. This partnership will allow ZTE customers to experience Blue Jeans Network s cloud-based video conferencing services (VCS) and connect easily to one another via their ZTE VCS products, creating a uniform user experience that fosters collaboration. Starting in August, ZTE VCS room system with Blue Jeans video conferencing services will be available in the US, Europe, Australia and Singapore. Blue Jeans Network extends high-quality video communications beyond the traditional boundaries of virtual conference rooms by allowing individuals, employees, partners and family and friends, to connect and interact with each other seamlessly and effectively. We re excited to work with ZTE to expand their reach into the video communications services market, said Stu Aaron, chief commercial officer at Blue Jeans Network. This partnership is another example of sharing our expertise in interoperability and expanding our ecosystem. We look forward to working with ZTE to proliferate easy, open, and affordable video conferencing. 5 ZTE TECHNOLOGIES OCT 2014

7 ZTE News ZTE Hosts President Carter as China-U.S. Dynamic Drives Business Growth 9 September 2014, Shanghai ZTE was delighted to welcome former President of the United States Jimmy Carter to Shanghai, deepening the company s friendship with the President who championed closer ties between the U.S. and China. President Carter toured ZTE s Research and Development Center in Shanghai, home to some of the company s most significant technology research projects in telecom networks and devices. Shi Lirong, President of ZTE, and Cheng Lixin, Chairman of ZTE USA, briefed President Carter on the latest business updates in the U.S. market, where ZTE is consolidating its position as one of the top providers of smartphones. It was my pleasure to visit the ZTE Research and Development Center in Shanghai today. It was impressive to learn of the great technological advancements that ZTE has developed, President Carter said. During this 35th anniversary of the normalization of U.S.-China relations, it is good to know of the partnerships between ZTE and American telecom companies. We are honored by the visit of President Carter to ZTE, and delighted to have the opportunity to show him some of the company s latest innovations, said Mr. Shi. President Carter s vision and foresight has helped inspire ZTE and other Chinese technology companies to develop deep and mutually-beneficial partnerships with our counterparts in the U.S. ZTE Exclusively Wins SWAN Slovakia Contract for Nationwide LTE Networks 28 August 2014, Shenzhen ZTE, a publiclylisted global provider of telecommunications equipment, network solutions and mobile devices, has signed a contract with Slovak operator SWAN for a nationwide LTE network project. ZTE will exclusively construct core circuitswitched/packet-switched (CS/PS) network, and a GSM/LTE mobile communications and value added services (VAS) network, involving over 1,100 dualmode GSM/LTE base stations to SWAN. ZTE Completes 4G LTE Network Stress Test for China Telecom in Shanghai 1 September 2014, Shenzhen ZTE was ranked No.1 in terms of shipment during the 4G network construction among the three Chinese domestic operators. As 4G services are being rolled out, ZTE and the operators held joint tests in several cities to test the 4G network performance in multiuser and high traffic scenarios. In the test organized by China Telecom in Shanghai, the network built by ZTE delivered exceptional performance, where one single CS accessed a maximum of 450 subscribers simultaneously for the first time. The access success rate reached 100% and the CPU load was lower than 30%. The 450 subscribers accessed the video services at the same time, which made the cell s throughput exceed 100 Mbps, but the CPU load was still lower than 9%. In addition, ZTE specially designed the test case for signaling storm. The 450 subscribers executed paging and activating repeatedly. In this case, system KPIs were fully normal, and the CPU utilization was only about 36%. Hence the 4G network built by ZTE successfully handled the burst of large traffic, proving that the system can easily handle issues resulting from the signaling storm. OCT 2014 ZTE TECHNOLOGIES 6

8 vip Voices Tiscali: Consolidating a Level Playing Field in the Telecom Market Reporter: Zhu Yiwen Tiscali is an Italian telecom company founded in 1998 in Sardinia. After the liberalization of the telecom market in Italy, Tiscali became one of the main alternative operators in Europe. From March 1999 onward, the company offered Tiscali Free Net, a subscription-free internet service where customers only had to pay for the time they were online. This pushed other Italian providers to abolish their fixed subscription fees and made the internet more accessible to people in Italy. Tiscali sees itself as an independent telecom operator, and this characteristic has contributed greatly to its success. What makes Tiscali such a strong player? Where are the growth opportunities for Tiscali today? Reporter Zhu Yiwen interviewed Andrea Podda, CTO of Tiscali. Q: Could you introduce Tiscali? A: Tiscali is one of the leading alternative telecom companies in Italy. We provide individuals and businesses with a vast range of services, including dial-up and ADSL internet as well as voice, VoIP, media, value-added services, and other technologically advanced products. Tiscali was the first operator to provide free internet access in Italy following the liberalization of the telecom market in Since 2002, we have been involved in a pan-european 7 ZTE TECHNOLOGIES OCT 2014

9 vip Voices Andrea Podda, CTO of Tiscali campaign against the existing monopoly in the broadband market. Q: Are there any differences between the Italian market and other European markets? A: Italy is the fourth largest telecom market in Western Europe, with revenue of $43.8 billion in We expect to see overall market revenue in Italy remain flat from 2013 to We expect telecom market revenue in Italy to be approximately $44 billion in There will nonetheless be significant growth opportunities in Italy, especially in the wireless market as operators focus on 3.5G. Increasingly, they will also turn to 4G and develop indoor/outdoor Wi-Fi. WiFi, fixed broadband, and mobile data services will open up highly attractive revenue opportunities over the next five years and are predicted to generate about $102 billion. In terms of internet usage, 56% of Italians uses the internet at least once a week, which is well below the EU average of 72%, and 34% of Italians have still never used the internet. This is significantly higher than the EU average of 20%. In Italy, there continues to be a significant decline in voice revenues in the fixed-line market because of reduced rates and a progressive shift of voice traffic to mobile. In recent years, all OCT 2014 ZTE TECHNOLOGIES 8

10 vip Voices operators have attempted to counter this phenomenon by increasing the penetration of ADSL and introducing innovative bundled voice, broadband, and services deals (double play). The environment is highly competitive and there is continual pressure to drop prices. The main fixed operators are now also offering mobile services, and some are becoming mobile virtual operators (MVOs). In 2013, customers continued to migrate from fixed-line to mobile telephony and alternative communications solutions such as VoIP, messaging, , and social network chat. The impetus behind this migration has been the widespread diffusion of smartphones and tablets. Italy does not have a cable market. Q: Tiscali witnessed strong competition in Italian market yet remained a leading operator. What makes Tiscali such a strong player? A: Tiscali has consistently striven for a level playing field in the telecom market. We believe that freedom of communication is a fundamental objective which, once achieved, must be protected and maintained. In Tiscali, business and management decisions are always made with the future in mind. By continuously developing and implementing advanced technologies, Tiscali creates value for its customers. Through its IP and VoIP network, Tiscali is able to supply a wide range of high-quality services, such as DSL, VoIP, and advanced business services that make communications between a company s different locations more efficient and secure. Over the last few years, Tiscali has channelled its efforts and resources into raising our brand awareness. Our key assets are our strong brand, reputation for value, and significant ADSL customer base. Q: What is Tiscali s main focus this year? A: The macro economy continues to be highly unstable, and consumption is decreasing. Tiscali is therefore concentrating on implementing our business plan and financial restructuring plan. These will ensure we have balanced equity and financial performance over the long term. From an industry point of view, Tiscali is continuing to improve its operational efficiency and innovate with its services. Q: Where do you see the growth opportunities for Tiscali today? A: Our commitment on innovation continues, with a specific focus on business services; cloud services; the Indoona and Steamago products; unified communication suite; new search engine, called Istella; and Smart Cities solutions. Our Smart Cities solutions are based on our experience with local governments and best-inclass technology and applications. We are helping governments modernize their infrastructure, ensuring that new technology can integrate with a city s legacy infrastructure and embedding intelligence into a city s infrastructure using Wi-Fi, NFC and BLE solutions. Tiscali s management is also committed to defining and implementing a restructuring plan so that we achieve a financial and capital structure consistent with our expected cash flow and hit our business targets. Q: What is your strategy to keep Tiscali s advantage in the market? A: Despite the competitive and challenging marketplace over the past few years, our results confirm our commitment to optimizing our traditional businesses and innovating with new services. In this challenging market, growth in the number of customers accessing our fixed network testifies to the strength of our brand and validity of our distribution strategy. It also validates the actions we took to secure a larger part of the telecom supply chain and focus on innovating on OTT services and digital media. Q: ZTE and Tiscali have already collaborated on several businesses. What are your expectations for future cooperation? A: Tiscali is now working with ZTE to migrate all B2B fixed users to our IMS platform, including IP Centrex service, 9 ZTE TECHNOLOGIES OCT 2014

11 vip Voices implemented in the IMS SSS itself. When the migration is completed, Tiscali will build a unified communications solution for the enterprise market. We will create a seamless, secure collaboration environment where employees in different offices of a company and roaming employees can communicate efficiently using any available means. Most smartphone users are running mobile apps over Wi-Fi networks. Smartphone users favour Wi-Fi for data consumption. Tiscali is paying attention to this trend and is pushing to build a proprietary nationwide Wi-Fi network starting in Sardinia. Q: Do you have any advice to ZTE? A: Tiscali needs to ensure maximum return on each investment. Flexibility and interoperability with other systems and vendors is a key concern. Interoperability and flexibility are the cornerstones for successful IMS platforms. A truly interoperable system will give Tiscali the flexibility to deploy business services based on applications developed in-house and meet the needs of our business customers. Q: In your opinion, what will drive the evolution of the telecom sector? A: Software-defined networking and network function virtualization are the trends because they boost application performance and management flexibility. They are used to connect virtual machines and servers to any resource in the data center. They help address the explosive capacity demand of fixed and mobile traffic. They can also reduce the capex and opex of service providers by decreasing the reliance on expensive proprietary hardware platforms. While the benefits of SDN and NFV are well known in the enterprise IT and data center world, both technologies also bring hosts of benefits to telecom service providers. Another area to focus on, I believe, is the development of smart city projects in some Italian cities. This involves working on projects in energy, transportation, healthcare, infrastructure, and governance that help a city run efficiently. The market potential of smart cities is estimated to be hundreds of millions of euros. These projects will involve the combined efforts of end-to-end service providers, network operators, product vendors, and managed service providers. OCT 2014 ZTE TECHNOLOGIES 10

12 vip Voices Unitel: Delivering Advanced Communication Technologies to All Laotians Reporters: Zhu Tao and Zhang Zhe Laos is a neighbor of China and the only landlocked country in Southeast Asia. It has 49 ethnic groups, and most of its people are Buddhists. The country covers an area of 236,800 square kilometers and is colloquially known as the roof of Indochina. Eighty percent of its terrain is forest-covered mountains and plateaus. Unitel is the largest operator in Laos and is jointly owned by the Laos Ministry of Defense and V-Telglobal of Vietnam. The company has annual sales of $180 million and a procurement quota of $20 30 million. Unitel and ZTE have established a longterm strategic partnership. Recently, ZTE Technologies interviewed Ulaha Thongvantha, chairman of Unitel. He talked about the opportunities open to Unitel, challenges to be overcome, and future development strategy. Q: Could you briefly introduce Unitel and its areas of operation? A: Unitel is one of the main operators in Laos. We are a multinational joint-stock company. The Laotian side owns 51% and the Vietnamese side owns 49% of the shares. We are supported by both the Party and government of Laos. Q: What challenges and opportunities does Unitel have in Laos? A: Laos has a population of only 6 million people, and the market is relatively small. At present, many foreign enterprises and individuals are investing in Laos. Unitel is now facing competition in terms of technology and market share. We have to constantly update our technologies and expand our market share. We need to provide quality services at lower prices, and this also needs to be supported by ZTE. We are also supported by the Party and government of Laos, especially the Ministry of Defense. This has enhanced our reputation greatly. We treasure these opportunities and hope that Unitel can reach new heights under the leadership of our management team. Q: What are the biggest benefits that Unitel brings to Laos? A: We let the Lao people enjoy advanced communications technologies 11 ZTE TECHNOLOGIES OCT 2014

13 vip Voices Ulaha Thongvantha(R),chairman of Unitel. and devices. We have made a great contribution to the national GDP compared to the power and construction sectors. We have also made significant contributions to national defense, social security, and education. We have set up an online education system that cost $1 million and is used by 951 schools in the country. Q: What is Unitel s development strategy? A: The urban-rural divide is significant in Laos. The city has higher standard of living and telecom devices are much more popular there, moreso than in underdeveloped rural and ethnic minority areas. Our first main strategy is to deliver advanced communication technologies to different groups all over the country. Now our main business focus is our 3G network. Although the 3G network is slow and not the best quality, we will try our best to improve it. We know that talent is fundamental to the development of all industries. We are going to throw a lot of manpower and materials at developing highly qualified and efficient staff members. Q: How has ZTE contributed to Unitel s growth? A: Unitel and ZTE have developed all-round exchanges. We have cooperated with ZTE since we were the sole shareholder of Unitel, and our cooperation has been smooth. ZTE is a large international company and has completed some very important projects for the Laotian government. We ve learned a lot from years of cooperation with ZTE. We still remember when ZTE helped train our staff, and effects of this training have been significant and long-lasting. Our progress is due in no small measure to the help and support we have received from ZTE. I hope that Unitel and ZTE will grow together for a better future. OCT 2014 ZTE TECHNOLOGIES 12

14 vip Voices We ve learned a lot from years of cooperation with ZTE. We still remember when ZTE helped train our staff, and effects of this training have been significant and long-lasting. Q: What are Unitel s goals and how will you achieve them? A: Our overall goal is to deliver better, cheaper services so that Unitel will become stronger in the telecom market. To achieve this goal, we need to uphold some principles. First, Unitel is a joint venture whose employees come from two countries. The key to managing the enterprise well is to ensure the cohesiveness and focus of all staff. Second, as foreigners, we must follow the local laws and rules of the telecom industry in Laos. Third, we aim to deliver better, cheaper services than what other operators can offer. We are now making every effort to improve our 3G network. We are also applying for a 4G license and have planned a 4G trial. We hope we can expand the market and attract new customers while retaining our existing customers. Finally, to get things done in Laos, we must understand the national character of Lao. Our explorations into the local culture as well as the training we conduct for staff are also the foundation of our achievements in this country. 13 ZTE TECHNOLOGIES OCT 2014

15 Tech Forum 1G to the Home: Vision and Initiation By Heng Yunjun Heng Yunjun, architecture director of Wireline Product Operation Division, ZTE Corporation From 2000 to 2007, ZTE delivered bandwidth via copper networks. Applications were mostly run on PCs, and , internet browsing, video downloading, and IP telephony were the main sources of network data. Then in 2008, networks based on ADSL2+ began to provide 18 Mbps. When it only took 18 minutes to download a highdefinition Harry Potter movie to PC, we thought that the bandwidth needs of households had been fully satisfied. However, smartphones and tablets began a revolution that has not only affected mobile networks but also wired networks, especially in terms of optical fiber. Nowadays at places such as cafes, airports, residences, or subway stations, smart terminals can be used to facilitate multiple Wi-Fi connections enabled by wired networks. Downloading a HD movie in 18 minutes is no longer satisfactory. Videos from several to dozens of gigabytes take up a lot of hard drive and bandwidth. Now when we Skype, OCT 2014 ZTE TECHNOLOGIES 14

16 Tech Forum we want face-to-face video with sharp images. We don t just want online comparison shopping; we want an interactive 3D experience, as if we are really in the shop. Demand for bandwidth is increasing tenfold every seven years. Due to technology and cost constraints, the communications industry predicts that 1 Gpbs mobile connectivity will only be possible by However, for wired networks, 1 Gpbs will be available much sooner. ZTE, a leading supplier of fixed networks, has launched a 1G-to-the-home concept and solution that ensures new technology can be installed in existing networks and guarantees network scalability. Before using a technology, overall consideration needs to be given to service needs, technology/product maturity, input-output calculation, and time-to-market. Technically, the XG-PON1 technology being used to deliver Mbps to common subscribers can provide 1 Gbps to high-end and enterprise users (Fig. 1). To satisfy increasing demand for bandwidth, XG-PON1 can also be upgraded to support N 10G single-mode fiber through wavelength overlapping. This enables 1 Gbps for common users and 10 Gbps for high-end users. The upgrade involves gradual wavelength overlapping, and no structural changes need to be made to the original optical network. While delivering 1G to the home, mobile backhaul can be supported (Fig. 2). ZTE has estimated the construction costs and expected revenue for GPON, 10G EPON, XG-PON1 and NG PON2 networks over the next several years (Fig. 3). These estimates are based on networks with different technologies in mainland China, Japan, and Hong Kong. They are also based on the previous trajectories of tariffs in telecom industries, equipment cost, and network capacity. ZTE s estimates reveal that the TDM-PON+WDM-PON+OFDM TDM-PON TDM-PON+WDM-PON A/BPON EPON 10G-EPON GPON XG-PON1 TWDM-PON PtP WDM OFDM/WDM Ultra-OFDM UD WDM 40G/100G TDM WDM PON Commercial time ~ After 2025 Port broadband capability 1G/2.5G 10G N 10G N 40G/100G Each user broadband <50M 100M~300M 500M~1G ng Figure 1. Evolution of optical access technologies. TWDM PON Maximum Maintain and Reuse ODN PtP WDM Family Government Enterprises Mobile Backhaul Multiple wave superposition improve the system bandwidth and user capacity Converged access to families, government and enterprises, mobile network and wholesales Adopting TWDM and P2P WDM Technologies as requirement Compatible with a variety of uplink & downlink rates and systems Virtual Operation Figure 2. Flexible NG PON2 architecture for integrated access with super high bandwidth. 15 ZTE TECHNOLOGIES OCT 2014

17 Tech Forum Times GPON 10G-EPON XG-PON1 NG-xPON * Supposed the price of GPON terminal is 1 Figure 3. Terminal cost estimate of different access technologies. Existing GPON GPON ONU XG-PON1 ONU XG-PON1 Add NG xpon OLT or Line Card WDM Coupling Upgrade to NG xpon ONU Figure 4. Upgrading GPON and XG-PON1 to NG PON2. bulk of network construction cost lies in terminal prices and per-user cost at the central-office side does not vary much with respect to network capacity. The speed at which a technology is commercialized depends on network capacity and costbenefit analysis. Large-scale commercialization of XG-PON1 is expected to begin in When planning for fixed broadband access, demand, technology and economics all need to be taken into account. Network upgrades should be based on market and user value segmentation. For universal coverage, a GPON/10 GPON hybrid network can provide ordinary bandwidth for common GPON users and high bandwidth for high-end 10 GPON users. This guarantees service provision improves ROI. 10 GPON can be used to deliver 100+ Mbps to high-value customers in the near term and 1 Gbps further into the future. Current GPON and XG-PON1 can be easily upgraded to NG PON2 without changing existing ODNs (Fig. 4). A network using XG-PON1 and GPON can first adopt WDM multiplexing and then be upgraded into NG PON2 so that the network is compatible with NG PON, XG-PON1 and GPON terminals. We produce countless photos and videos that we want to store both locally and in the cloud. We need seamless Wi-Fi coverage for our smart mobile terminals anywhere in the home. We want to watch our children and parents in real time to ensure that they are safe while we work in the office. We want to store super-high-definition movies for future viewing. Smart terminals are driving the demand for bandwidth and this, in turn, is opening up more possibilities for service planning. As early as 2012, ZTE collaborated with British Telecom to build the world s first commercial experiments bureau. In 2012 and 2013, ZTE won innovation awards from BBWF and GTB respectively. ZTE has also built commercial XG-PON1 networks for Indonesia PT Telkom and Spain s Jazztel. Initial testing of the technology, network construction mode planning, and development of intelligent home networks all indicate ZTE s front-runner position in the optical access field. From ZTE s perspective, 1G-to-the-home is possible because the technology makes it possible and customer demand is strong. ZTE has taken a crucial step in pioneering 1G-to-thehome networks. OCT 2014 ZTE TECHNOLOGIES 16

18 special s Topic: Broadband Access FTTM Enables Rapid and Flexible LTE Deployment By Qin Yewen Rapid LTE Growth LTE is the fastest-growing technology in the history of mobile communications. With high bandwidth and low delay, LTE offers data rates far higher than those of existing wireless broadband networks. LTE ensures ubiquitous network coverage and seamless wireless applications. Mobile traffic is experiencing explosive growth in the LTE era. To attract users, secure market share, and increase revenue, operators need to deploy many small cells to quickly boost network capacity, improve network coverage, offer superior user experience, and enhance market competitiveness. However, many small cells have an impact on bearer resources and cost. PON FTTx Enables Fast, Low- Cost Small-Cell Deployment Small cells are usually carried over a public network. Mass smallcell deployment requires a network to have abundant mobile backhaul resources. The backhaul network must have high bandwidth; it must be very reliable; it must have accurate clock synchronization; and it must have 17 ZTE TECHNOLOGIES OCT 2014

19 special Topic Existing widely deployed PON FTTx networks have inherent advantages in terms of carrying small cells. flexible power supply. To generate revenue from the network, an operator has to select low-cost, flexible, reliable technology to backhaul the small cells. Existing widely deployed PON FTTx networks have inherent advantages in terms of carrying small cells. Low-Cost Dense Coverage Small cells are deployed more densely than existing macro cells. Therefore, it is unfeasible to use traditional backhaul platforms, which may also pose high requirements for uplink bandwidth of OLT ports. Moreover, the areas to be covered by small cells are largely the same as those covered by FTTx access networks. An FTTx access network can be used to quickly and flexibly deploy small cells. This enables quick return on investment, saves installment costs, and requires less bearer resources. High-Precision Clock Synchronization Of all synchronization solutions currently available for small cells, synchronization based on GPS and air interface is not applicable to small cells that are densely deployed over a wide area. Other synchronization modes, such as 1588v2 and synchronous Ethernet, are better suited to these small cells. Existing FTTx networks enable clock synchronization through 1588V2, synchronous Ethernet, and 1PPS+ToD or as defined by protocols of the PON system. Hierarchical QoS Small cells may be deployed in the same network where there are existing broadband and Wi-Fi users. Robust service-processing mechanism and bandwidth allocation capability are needed to guarantee services of different classes and to ensure that wireless signaling is reliable for mobile video, data, and voice. The PON FTTx system provides flexible QoS scheduling mechanisms at the port, user, and service levels to prioritize the forwarding of small-cell services and to improve user experience. Complete Service Protection In an FTTx network, PON provides abundant protection mechanisms, including Type B and Type C protection for OLT PON ports and redundancy for backbone fiber, branch fiber, and ONT PON ports. PON OLT uplink ports also support LACP, ring networking, and MSTP. Protection modes can be flexibly used for common hotspots, cells, or even macro cells in important areas. Bandwidth Matching As wireless technology advances, there is a growing demand for bandwidth. xpon is developing in line with wireless broadband access technologies from EPON/GPON to 10G PON and nextgeneration PON and carries GE, 10GE, and n 10GE access bandwidth. The technology and bandwidth capabilities of PON in its different phases will meet the backhaul bandwidth needs of 3G, 4G and future 5G. Flexible Power Supply and Intelligent OAM Since small cells are deployed in complex environments, backhaul OCT 2014 ZTE TECHNOLOGIES 18

20 special Topic: Broadband Access equipment needs to support flexible power supply and fast fault handling. The PON system can provide remote power supply for some small cells through PoE and PoE+. It also provides an end-to-end intelligent OAM system that enables easy daily OAM and quick fault location and handling. As LTE cells can be well carried over FTTx networks, operators in many countries including the U.S., Japan, South Korea, Spain, Russia and Canada have used xpon FTTx networks to backhaul LTE macro cells and small cells. This approach has brought them considerable investment returns. FTTM for Various Small-Cell Deployment Scenarios There are two small-cell deployment scenarios in areas where LTE coverage and capacity is limited: indoor and outdoor. Indoor scenarios include coverage and capacity expansion for homes, offices, and high-rise buildings. Outdoor scenarios Hot Spot Coverage (Transportation hubs and campuses) Small Cell Indoor Coverage (Business buildings) Outdoor Coverage (Rural and remote areas/ campus/residential areas) Small Cell P2P Femtocell ODN Small Cell Outdoor Coverage (Blind spots/traffic offload/highrise buildings) PON OLT Figure 1. ZTE s FTTM solution. Home Femto Indoor Coverage EPC Internet Outdoor Coverage (Shopping streets/open-air cafes or restaurants) include coverage for outdoor hotspots, blind spots, traffic infrastructure, suburbs, and rural areas. ZTE has rolled out a fiberto-the-mobile (FTTM) solution for these scenarios (Fig. 1). In these areas, operators can flexibly use existing xpon FTTx resources to deploy small cells. A small cell can incorporate Wi-Fi, even into a home gateway unit. In addition to wireless network services, the small cell also provides new valueadded services because small cells are cheap, provide good coverage, and have diverse interfaces. A small cell can also be integrated into a home gateway, enterprise gateway, or enterprise information engine to serve as a brand-new integrated service platform. In the future, small cells will be more intelligent and integrated and will support 3G, LTE and Wi-Fi. They will be further integrated into the Internet of Things, near-field communication, high-definition settop box, video surveillance, enterprise broadcast platforms, and smart home control. Small cells will evolve to become integrated, cloud-based, social, intelligent super-cells. FTTx access networks can be smoothly evolved and have a range of ONUs that meet the needs of different bearer interfaces with small cells. ZTE s xpon FTTM solution provides a series of system and terminal equipment. Multiple types of ONUs are used in the solution such as integrated, low-cost ONTs with SFP modules, converged multi-port ONUs, and outdoor ONTs with high adaptability to environment. The solution unifies management through an end-toend visual interface and satisfies the requirements of indoor and outdoor small cell scenarios. The delay, QoS, clock synchronization, and power supply requirements for LTE bearer network can also be met. Moreover, ZTE s xpon FTTM products support smooth technological evolution to keep pace with the development of wireless broadband networks. FTTM Accommodates LTE Growth and Ushers in a New Era for Mobile Broadband Networks LTE networks are widely deployed, so operators will make major efforts to develop optical access networks and build complete FTTx networks. To cope with a huge amount of mobile data traffic and meet the need for network convergence, operators will have to keep improving network coverage and capacity. ZTE s innovative FTTM solution provides complete fixed-mobile convergence that allows users to enjoy feature-rich mobile internet applications anytime, anywhere. 19 ZTE TECHNOLOGIES OCT 2014

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