Bharti Airtel - Huawei
Bharti Airtel - Huawei
Bharti Airtel - Huawei
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11/2012<br />
Issue 14<br />
<strong>Bharti</strong> <strong>Airtel</strong><br />
looks to make India<br />
truly broadband<br />
TalkTalk protects families online<br />
China Mobile energizes<br />
the LTE TDD market<br />
STC brings three mobile<br />
generations under one roof<br />
StarHub: A cloud is born
Hear what operators want to share in person,<br />
see how peers succeed in a fierce marketplace,<br />
and delve into their secrets to success.<br />
At WinWin, it’s all about success.<br />
Sponsor<br />
<strong>Huawei</strong> Technologies Co., Ltd.<br />
Publisher<br />
<strong>Huawei</strong> COMMUNICATE Editorial Board<br />
Consultants<br />
Hu Houkun, Xu Zhijun, Ding Yun<br />
Yu Chengdong, Chen Wei<br />
Editor-in-Chief<br />
Gao Xianrui (sally@huawei.com)<br />
Editors<br />
Pearl Zhu, Xue Hua, Julia Yao, Jason Patterson<br />
Michael Huang, Joyce Fan, Linda Xu, Xu Ping<br />
Cao Zhihui, Li Xuefeng, Pan Tao<br />
Chen Yuhong, Zhou Shumin<br />
Contributors<br />
Deng Taihua, Qiu Heng, Yao Jiajian, Yu Xiangyang<br />
Zheng Yuanyuan, Liu Zhen, Yu Dan, Xu Caiming<br />
Izawa Michiko, Li Pengcheng, Cao Haichen<br />
Shi Tianlong, Lu Haomin<br />
E-mail: HWtech@huawei.com<br />
Tel: +86 755 28786665, 28787643<br />
Fax: +86 755 28788811<br />
Address: B1, <strong>Huawei</strong> Industrial Base,<br />
Bantian, Longgang, Shenzhen 518129, China<br />
Publication Registration No.:<br />
Yue B No.10148<br />
Copyright © <strong>Huawei</strong> Technologies Co., Ltd. 2012.<br />
All rights reserved.<br />
No part of this document may be reproduced or transmitted<br />
in any form or by any means without prior written consent of<br />
<strong>Huawei</strong> Technologies Co., Ltd.<br />
Disclaimer<br />
The contents of this document are for information purpose<br />
only, and provided “as is”. Except as required by applicable<br />
laws, no warranties of any kind, either express or implied,<br />
including but not limited to, the implied warranties of<br />
merchantability and fitness for a particular purpose, are made<br />
in relation to contents of this document. To the maximum<br />
extent permitted by applicable law, in no case shall <strong>Huawei</strong><br />
Technologies Co., Ltd be liable for any special, incidental,<br />
indirect, or consequential damages, or lost profits, business,<br />
revenue, data, goodwill or anticipated savings arising out of<br />
or in connection with any use of this document.<br />
ICT integration deepens<br />
OTT players have been encroaching on operators’ core services ever<br />
since Skype first went online, and their effect is ever growing, with users<br />
of WeChat (China’s answer to WhatsApp) passing 200 million this past<br />
September. A mobileSQUARED (a U.K. market research firm) 2011<br />
survey of 31 global mobile operators indicated that three-quarters of<br />
them were worried about losing revenue to these players, while onethird<br />
were already seeing declines in terms of both revenue and traffic.<br />
And what’s more, Google is no longer content to be just an OTT player,<br />
as the Internet giant recently started into the pipe business by launching<br />
a fiber network in Kansas City, which is claimed to offer broadband<br />
speeds “100 times faster than today’s broadband.”<br />
Needless to say, the lines are blurring as newcomers foray into telcos’<br />
core business domains, and their bottom lines will be even more affected<br />
as mobile Internet flourishes, networks transform to All-IP, smart<br />
terminals diversify, and personal computing gives way to the cloud, all<br />
of which represent a new phase of IT integration and development.<br />
Informatization is the name of the game, bringing telcos challenges and<br />
opportunities like never before.<br />
In the big data era, telcos should consolidate their network<br />
infrastructure and emphasize their pipes to the fullest, as neither<br />
industrial nor social development will advance without them. This<br />
means better planning and utilization of network resources, including<br />
copper, fiber, sites, and spectrum, and data centers, supplemented<br />
with the latest technologies. It also means the use of software-defined<br />
mechanisms that enhance intelligence at each network layer and shorten<br />
TTM so that operators can stay ahead of service providers of Internet<br />
and enterprise applications.<br />
Telcos should also fully utilize their scale and brand advantages in the<br />
ICT arena, so that they can actively promote and establish cooperative<br />
partnerships in the ICT industry, but this will require an open platform<br />
that fosters harmony in the ICT ecosystem.<br />
However, these steps alone will not determine who wins in the new<br />
value chain. Ultimately, it comes down to a superb user experience and<br />
who provides it. Telcos should be the ones filling this role, but this will<br />
require not just courage and determination but, more importantly,<br />
wisdom and vision.<br />
For electronic version and subscription,<br />
please visit www.huawei.com/winwin<br />
Bill Zhang<br />
President of Marketing & Solution<br />
Carrier Network Business Group
11/2012<br />
Issue 14<br />
WHAT’S<br />
INSIDE<br />
Voices from Operators<br />
01<br />
<strong>Bharti</strong> <strong>Airtel</strong> looks to make India<br />
“truly broadband”<br />
<strong>Bharti</strong> <strong>Airtel</strong> launched its LTE TDD<br />
services in April 2012, making it the first<br />
and only operator in India to utilize this<br />
technology. Considering the relatively<br />
undeveloped state of the local market, this<br />
move might seem premature, but not to<br />
Jagbir Singh, CTO & Director, Network<br />
Services Group, <strong>Airtel</strong> India & South Asia.<br />
06<br />
StarHub: A cloud is born<br />
Telcos play a large part in how new<br />
technologies play out, which makes their<br />
conspicuous absence from the ranks of cloud<br />
success stories all the more puzzling. Sunny<br />
Tan, Assistant Vice President of Enterprise<br />
Business Group – Solutions, StarHub, sits<br />
down with WinWin to discuss how the<br />
Singapore operator will remedy this.<br />
09<br />
NTT DOCOMO keeps Japan smart<br />
NTT DOCOMO is in the midst of<br />
enhancing its smartphone strategy,<br />
primarily by focusing on Android<br />
phones. Kiyohito Nagata, Senior Vice<br />
President and Member of the Board of<br />
Directors at NTT DOCOMO, discusses<br />
the company’s device strategy.
Perspectives<br />
13<br />
15<br />
On <strong>Huawei</strong>’s Pipe Strategy<br />
Cyber security perspectives<br />
Eric Xu, <strong>Huawei</strong> EVP: The pipe strategy<br />
is <strong>Huawei</strong>’s core, and the pipe business<br />
will remain our focus. As the digital flood<br />
approaches, we commit ourselves to<br />
enhanced pipe capacity, strengthened pipe<br />
enablers, and optimized pipe management,<br />
to deliver ever wider and more ubiquitous<br />
pipes, and an even better user experience.<br />
Winners<br />
35<br />
39<br />
TalkTalk provides online protection<br />
for families<br />
China Mobile energizes the LTE TDD<br />
market<br />
China Mobile has been a champion of LTE TDD<br />
in recent years, through efforts such as the LTE<br />
TDD service debut at the World Expo in Shanghai,<br />
and its trial network in Hangzhou city.<br />
17 LTE TDD goes mainstream<br />
Tao of Business<br />
23 <strong>Huawei</strong> knows LTE TDD inside & out<br />
43<br />
SoftBank’s LTE TDD network<br />
impresses in Japan<br />
At ten months after its launch, the SoftBank<br />
group’s LTE TDD network attracted more than<br />
260,000 customers, and this number will continue<br />
to grow as its coverage expands.<br />
27<br />
Monetizing the NBN: Strategies & services<br />
47<br />
China Telecom takes the drive out<br />
of testing in Hangzhou<br />
31<br />
Frenemies: How can telcos get a piece<br />
of the OTT pie?<br />
51<br />
STC brings three generations<br />
under one roof
VOICES<br />
FROM OPERATORS<br />
<strong>Bharti</strong> <strong>Airtel</strong> looks to<br />
make India “truly broadband”<br />
<strong>Bharti</strong> <strong>Airtel</strong> launched its LTE TDD services in April of this year over broadband wireless access (BWA)<br />
spectrum, making it the first and only operator in India to utilize this technology. Jagbir Singh (CTO<br />
& Director, Network Services Group, <strong>Airtel</strong> India & South Asia) recently sat down with WinWin to<br />
discuss the latest trends in the Indian telecom industry and how they have motivated the operator<br />
to press forward into LTE.<br />
By Jason Patterson<br />
A billion mobile users<br />
WinWin: What is the wireless technology roadmap<br />
for the Indian telecom sector?<br />
Singh: Presently, the Indian telecom sector is<br />
undergoing a major transformation. The last decade has<br />
seen an exponential growth of mobile users from a few<br />
million to near a billion today. This growth was driven<br />
by a latent demand for voice traffic. We are now moving<br />
from a voice-only network to a “voice also” network which<br />
will see huge consumption of data volumes, adoptions of<br />
new applications & content-rich services, and a bigger<br />
penetration of smartphones. Translating this to wireless<br />
technology, this will mean a service-aware network that<br />
is elastic for varying customer needs, and is flatter with<br />
highly-scalable backhaul capabilities.<br />
Given the spectrum pricing and the infrastructure<br />
required for backhaul, the roadmap for the Indian telecom<br />
sector is going to be a mix of technologies serving the<br />
varying needs of the customer. Scarcity of spectrum will<br />
cause a significant migration towards more localized<br />
networks such as femtocells, picos, and Wi-Fi. This will<br />
also require an infinitely expandable wired backhaul that<br />
feeds into the core network. The service providers will<br />
strive to serve the customer with the technology that is<br />
most spectrally efficient and that can adapt to the customer<br />
requirements. How to manage the seamless movement of<br />
customers across technologies is also another challenge<br />
that the industry will need to address.<br />
WinWin: In what ways do you think regulators can<br />
drive mobile broadband forward in India?<br />
Singh: The key requirements for mobile broadband<br />
are the availability of spectrum at affordable rates and<br />
the availability of backhaul infrastructure to carry large<br />
amounts of data traffic. Rational spectrum pricing &<br />
regulation simplicity for issues like ROW (Right of Way),<br />
as well as infrastructure sharing for both passive & active<br />
1<br />
NOV 2012
As the first operator to launch<br />
LTE TDD service in India, <strong>Bharti</strong><br />
<strong>Airtel</strong> is leading the way in<br />
bringing advanced technologies<br />
to developing countries in an<br />
affordable manner.<br />
— Jagbir Singh, CTO & Director, Network<br />
Services Group, <strong>Airtel</strong> India & South Asia<br />
NOV 2012<br />
2
VOICES<br />
FROM OPERATORS<br />
The Indian user is just getting to know the power of<br />
mobile broadband with the advent of 3G services. Given the limited<br />
spectrum available for 3G services in India, LTE TDD technology, which can<br />
utilize alternate spectrum, is an obvious way forward.<br />
elements, would be the key drivers for broadband growth.<br />
Laying and maintaining multi-terabyte fiber backhaul<br />
networks is a huge investment and is also inevitable. The<br />
stakeholders have yet to reach an agreement that can contain<br />
the costs in this area. Possibilities could include formation<br />
of consortiums similar to those existing in the international<br />
arena or formation of a government-funded subsidy similar<br />
to the Universal System Obligation Fund (an Indian mandate<br />
that levies telco revenues) for taking connectivity to upcountry<br />
locations. As far as ROW is concerned, there are no pan-<br />
India guidelines and every municipality and state government<br />
makes decisions for its own reasons. However, this impacts<br />
the national agenda of “connecting the unconnected,” so<br />
there is a need to consolidate the laws around ROW.<br />
WinWin: How would you envisage the mobile<br />
broadband landscape over the next 2-3 years in India?<br />
Singh: As per recently published results, mobile data<br />
traffic in India is up by 54 percent in the first half of 2012.<br />
With more than 100 million Internet users as of today, the<br />
growth of data consumption is going to be exponential<br />
both in terms of number of users and usage per customer.<br />
Also, the National Telecom Policy 2012 envisages<br />
“broadband for all” at a minimum download speed of<br />
2Mbps. With the way smartphone adoption, data usage,<br />
and app adoption trends are moving, it seems that very<br />
soon even 2Mbps is not going to be enough, especially for<br />
early adopters of technology in major cities.<br />
Ready or not for LTE?<br />
WinWin: As the market leader in India and the<br />
world’s fifth-largest carrier, how is <strong>Bharti</strong> <strong>Airtel</strong><br />
contributing to LTE TDD ecosystem development?<br />
Singh: We are a founding member and active<br />
participant in the GTI (Global TD-LTE Initiative)<br />
forum, through which we keep meeting and exchanging<br />
knowledge with our peers from across the globe. Also, as<br />
the first operator to launch the service in India, we are<br />
leading the way in bringing advanced technologies to<br />
developing countries in an affordable manner. We are also<br />
engaging with device and chip manufacturers to influence<br />
the availability of affordable devices for our customers.<br />
WinWin: How do you foresee LTE TDD developing<br />
on a global scale vis-à-vis LTE FDD?<br />
Singh: Globally, the choice of technology by operators<br />
is mainly governed by the relevance of technology with<br />
respect to spectrum availability. Since both FDD and<br />
TDD are at a very nascent stage of tech maturity, I believe<br />
that the respective geographies will drive the evolution<br />
of both FDD and TDD in parallel on a medium-term<br />
horizon.<br />
As of now, both the technologies seem to have gathered<br />
equal momentum and operators worldwide are selecting<br />
either of them based on the spectrum they manage to<br />
acquire and the overall ecosystem development in their<br />
country/region.<br />
WinWin: Given that 3G is still in its infancy in<br />
India, do you think the Indian market is ready for 4G?<br />
Singh: The GSMA predicts that by 2016 India will be<br />
the second largest wireless broadband market. This is not<br />
unnatural, as fixed broadband penetration is not good<br />
enough in India due to several factors like poor copper<br />
coverage, high cost of laying the infrastructure, etc. This<br />
pent up demand for data, especially in the youth and<br />
3<br />
NOV 2012
<strong>Airtel</strong> is placed at a very advantageous position by virtue of<br />
having a significant footprint in the wireline domain which most<br />
of the operators lack. LTE rollout would marry this footprint seamlessly<br />
into the greater wireless architecture.<br />
corporate segments, will be a big driver towards growth<br />
of data for a mobile broadband bearer. With a limited 3G<br />
spectrum, it is only natural that a more scalable option is<br />
explored that can seamlessly handle this growth.<br />
From a technology perspective, India has adopted<br />
3G a little later than the rest of the world, which has<br />
the advantage of creating a network with tried & tested<br />
technology. Also, 4G, as a technology, is rapidly being<br />
adopted in other markets and has obvious advantages<br />
of efficiency and scale. Also, like I mentioned earlier, all<br />
the technologies will have to coexist to enhance spectral<br />
efficiency.<br />
An uphill climb<br />
WinWin: How will <strong>Bharti</strong> balance/prioritize 3G and<br />
BWA (LTE TDD) network investment in the short-tomedium-term?<br />
Singh: In the recent past, India has been moving<br />
very fast on the digitization curve; this fact highlights<br />
the growth potential for data services, especially mobile<br />
broadband services. The Indian user is just getting to<br />
know the power of mobile broadband with the advent of<br />
3G services. Given the limited spectrum available for 3G<br />
services in India, LTE TDD technology, which can utilize<br />
alternate spectrum, is an obvious way forward.<br />
LTE TDD, as a technology, is not as mature as 3G and<br />
to tap the full potential of this technology, it makes sense<br />
to start deploying it in a controlled manner, not only to<br />
validate the capabilities, but also to influence the evolution<br />
path which is suited to growing markets like India. With<br />
increasing urbanization and mobility in metropolitan<br />
areas, very soon even the typical 3G speeds will not suffice.<br />
We plan to create a layered architecture in the metros with<br />
coexistent 2G-3G-LTE-Wi-Fi mesh networks.<br />
WinWin: What has been <strong>Bharti</strong> <strong>Airtel</strong>’s strategy on<br />
the LTE TDD network rollout front?<br />
Singh: LTE is one of the cornerstones when it comes to<br />
true convergence of network architecture and topology, the<br />
best of both wireless and wireline architecture, and a flatter<br />
and more scalable transport network with ubiquitous radio<br />
coverage augmented by a focused microcell mesh that<br />
pushes the limits of the network closer to the user.<br />
<strong>Airtel</strong> is placed at a very advantageous position by virtue<br />
of having a significant footprint in the wireline domain<br />
which most of the operators lack. LTE rollout would<br />
marry this footprint seamlessly into the greater wireless<br />
architecture, thereby creating a world class network<br />
capable of providing a “truly broadband” user experience.<br />
WinWin: What key challenges have <strong>Bharti</strong> <strong>Airtel</strong><br />
encountered in network rollout and how has it tackled<br />
them?<br />
Singh: Readiness and maturity in a robust product line<br />
for LTE TDD is the foremost challenge at present. This<br />
fact, coupled with a lack of available devices and challenges<br />
around ROW for scalable backhaul architecture, are some<br />
issues that we continue to face as we expand our LTE<br />
rollout.<br />
As is the case with any new technology, the learning<br />
curve is very steep and the pace of innovation has<br />
increased dramatically in the last decade. LTE is being<br />
launched globally in several spectra and FDD/TDD<br />
versions; add to this the complexity of coexistent 2G, 3G<br />
and Wi-Fi networks, and you have a continuously evolving<br />
technology landscape, which is a challenge in itself,<br />
NOV 2012<br />
4
VOICES<br />
FROM OPERATORS<br />
The future of telecommunication is data and LTE TDD is an investment<br />
in that direction. We are fully convinced that the growth in data is bound to<br />
happen and this platform is an enabler for data to take off in a big way.<br />
especially when augmenting a new technology onto a live<br />
network, because you don’t want to disrupt the existing<br />
services.<br />
We underwent detailed interoperability tests in order<br />
to ensure minimal glitches in the launch of 4G services<br />
and smooth integration with the existing network. From<br />
an infrastructure point of view, the rollout so far has been<br />
relatively less challenging as compared to the greenfield rollout<br />
of 2G since most of our initial 4G sites were co-located with<br />
existing sites. However, the launch of LTE needed a complete<br />
upgrade and modernization of the backhaul system, which<br />
meant laying new fiber in the cities and creating more sites to<br />
support microcell layer architecture.<br />
WinWin: What lessons/experiences from 3G service<br />
development have <strong>Bharti</strong> <strong>Airtel</strong> found relevant for<br />
promoting LTE services?<br />
Singh: Making a heterogeneous network scale, interoperate,<br />
and deliver the requisite quality of service is a<br />
great experience we have picked up from our 3G launch.<br />
We have learned how to connect and manage network<br />
elements that cut across a wide range of technologies,<br />
manufacturers, and standards. Handling a disproportionate<br />
amount of data traffic growth is also a good problem<br />
to have when it comes to creating a mobile broadband<br />
network.<br />
These lessons will go a long way in establishing a<br />
4G network footprint that is service-aware, seamlessly<br />
managed across vendor ecosystems, and scalable to handle<br />
the data explosion which is about to hit India.<br />
From a business perspective, after the launch of<br />
3G services, the industry has been facing a “multiterabit<br />
challenge” in which revenues are not growing<br />
proportionately with traffic, unlike what used to happen<br />
in the voice business. While the revenues don’t increase<br />
proportionately, the spectrum requirement is proportional<br />
to the data growth and becomes very expensive.<br />
Another critical aspect on which we are working with<br />
the regulators and government agencies is the ROW<br />
permissions for laying fiber in the cities. Without a robust<br />
and scalable backhaul infrastructure, it will not be possible<br />
to deliver the speeds that the customers expect when they<br />
adopt technologies like LTE.<br />
WinWin: How does <strong>Bharti</strong> <strong>Airtel</strong> position its LTE<br />
service and what will be the key factors driving LTE<br />
uptake in the country?<br />
Singh: The future of telecommunication is data and<br />
this is an investment in that direction. We are fully<br />
convinced that the growth in data is bound to happen and<br />
this platform is an enabler for data to take off in a big way.<br />
As of now, we are delivering 4G services via CPE<br />
(customer premises equipment) and dongle. Apart from<br />
the availability of the service, the other important factors<br />
that will drive 4G uptake in the country are the content<br />
and device ecosystem.<br />
WinWin: How would you evaluate <strong>Huawei</strong>’s skills as<br />
a vendor and as a partner for BWA (LTE TDD) network<br />
rollout?<br />
Singh: <strong>Huawei</strong> has been our partner in launching 3G<br />
and then 4G in Bangalore and I would say that overall,<br />
the experience has been quite satisfactory. <strong>Airtel</strong> has also<br />
awarded <strong>Huawei</strong> projects for building a nationwide highcapacity<br />
expressway. In addition to this, <strong>Huawei</strong> has also<br />
supplied packet core for our network. I would rate my overall<br />
experience of working with <strong>Huawei</strong> as satisfactory.<br />
Editor: Gao Xianrui sally.gao@huawei.com<br />
5<br />
NOV 2012
StarHub: A cloud is born<br />
Telcos play a large part in how new technologies play out, which makes their conspicuous absence<br />
from the ranks of cloud success stories all the more puzzling. “How did we let a bookseller corner the<br />
market?” asks Sunny Tan, Assistant Vice President of Enterprise Business Group – Solutions, StarHub<br />
(Singapore’s second-largest info-communications operator) and the head of its business solutions.<br />
By Julia Yao<br />
Better late than never<br />
Nobody who reads this magazine needs to be<br />
reminded of the promise of cloud computing,<br />
and yet, the key names in cloud computing<br />
presently are either Internet or IT firms, not<br />
telcos. Amazon Web Services hosts some of the world’s<br />
most prominent sites, such as Netflix, Farmville, and<br />
Foursquare, and its cloud service revenue is poised to top<br />
USD1 billion in 2012, according to IDC.<br />
So how did telcos miss the boat? Tan attributes this to<br />
cultural barriers and a lack of profit pressure during the<br />
key window of opportunity ten years ago. “Telcos used<br />
to have a quite handsome profit margin in the traditional<br />
businesses. Added to that is the cultural difference (telcos<br />
are slower to act than Internet companies) in a highly<br />
regulated market. So, the majority of telcos didn’t really<br />
think innovatively enough to enter this market,” he says.<br />
As an IT veteran, he has discovered that the skill sets in<br />
the IT and telco worlds are different. “It’s almost like<br />
talking a different language.”<br />
However, despite this, he is very upbeat about the<br />
competitive advantage that the telco industry enjoys. “Our<br />
network touches everything. We telcos are in the center of the<br />
connectivity space, without which a lot of the cloud services<br />
wouldn’t exist today. SLA is our DNA. For wide adoption of<br />
cloud, whether by consumers or enterprises, you really need<br />
to have carrier-grade reliability. Besides, we have multiple<br />
customer service and support touchpoints. Finally, we have<br />
the billing relationships and aggregator abilities… for ISVs<br />
(Independent Software Vendors), this is one clear advantage<br />
when working with a telco. A lot of ISVs cannot simply scale<br />
if they do not partner with someone like a telco and enter<br />
into a billing relationship with the customers.”<br />
Sunny Tan, Assistant Vice President of<br />
Enterprise Business Group - Solutions (StarHub)<br />
NOV 2012<br />
6
VOICES<br />
FROM OPERATORS<br />
Our network touches everything. We telcos are in<br />
the center of the connectivity space, without which a lot of<br />
the cloud services wouldn’t exist today. SLA is our DNA.<br />
Opportunity arises<br />
StarHub is a quadruple-play carrier that operates<br />
solely in Singapore, where two-thirds of its business is<br />
in the consumer space. Compared with the incumbent,<br />
StarHub previously had limited fixed access to commercial<br />
buildings, greatly hindering its enterprise business. But<br />
in 2010, an opportunity arose in the form of Singapore’s<br />
Next-Generation Nationwide Broadband Network<br />
(NGNBN), which has the laudable goal of wiring the<br />
city-state with ultra high-speed broadband access of up to<br />
1Gbps. Fiber rollout is scheduled to reach 95% coverage<br />
by mid-2012. For businesses, this means choice, reduced<br />
costs, and increased redundancy. For StarHub, it “levels<br />
the playing field for us. We can have complete coverage<br />
and access a bigger pool of customers, particularly business<br />
customers.” With this impressive leap in bandwidth,<br />
StarHub started to provide more data-heavy services, such<br />
as telepresence and cloud computing. “We actually timed<br />
the launch of our cloud computing initiatives until the<br />
NGNBN was in the midst of rollout because you simply<br />
cannot run a lot of cloud services on ADSL.”<br />
For StarHub, the decision to enter the cloud was more<br />
evolution than revolution. “It was a natural extension<br />
of our data center business. We already had the space,<br />
the facility; we knew how to build data centers and<br />
redundancy. We saw a lot of telco-IT convergence; in<br />
terms of customer purchase behavior, they wanted to buy<br />
solutions from us instead of hardware and connectivity<br />
separately. StarHub is a local trusted brand in Singapore.<br />
Especially in the SMB space, familiarity with the brand is<br />
very important. We have found that many customers are<br />
actually coming to us, asking for SaaS applications as well<br />
as infrastructure as a service (IaaS).” One ingredient in<br />
StarHub’s recipe for consumer success is what the operator<br />
calls “hubbing” (service combination). “By bundling<br />
connectivity, IT services, and SaaS, we are adding a<br />
differentiator via cloud hubbing.”<br />
Getting started<br />
StarHub took its first steps into the cloud in 2010<br />
through the offering of SaaS solutions, including<br />
accounting, HRM, and sales systems delivered through<br />
a utility model to small businesses (SBs) and small-tomedium<br />
businesses (SMBs). “Our success was OK, not<br />
fantastic. We knew here was still room for improvement,<br />
for example, an email/collaboration suite which would<br />
be the central identity of the user.” StarHub beefed up<br />
its portfolio later with the necessary security elements, so<br />
that its customers could sleep easier. Education was also<br />
necessary to win over the uninitiated. “We went through a<br />
lot of trouble explaining to SBs and SMBs, especially those<br />
that were not very familiar with IT, what cloud computing<br />
was and how they could benefit.”<br />
StarHub reached a milestone in 2011 when it entered<br />
into a syndication partnership with Microsoft that allows<br />
the operator to bundle Office 365 with its enterprise<br />
broadband services, Microsoft’s second such partnership<br />
in Asia. “This is a key step for us, because it allowed us to<br />
provide a very important piece called Office 365. In a lot<br />
of cloud service brokerage models, one of the critical pieces<br />
is the email collaboration portion. This is clearly the first<br />
piece any small business or even a mid-market business<br />
will ask for when they go into a cloud.”<br />
The market takeup for this caught Tan and his team by<br />
surprise. “Even though we targeted the product at SMBs<br />
initially, a fair number of customers are in the larger midmarkets.<br />
For example, a well-known hospitality and resort<br />
chain headquartered in Singapore, with operations all over<br />
the world, actually deployed Office 365 throughout the<br />
Asia-Pacific, covering multiple resorts and hotels.” Tan is<br />
7<br />
NOV 2012
more excited about the new business opportunities this<br />
application signifies. “When the hotel HQ’s purchasing<br />
decision is done in Singapore, we are in a good position<br />
to provide services to the entire footprint that they have.<br />
Only cloud enables us to do this… without cloud, we will<br />
not be able to sell software, for example, to overseas markets.<br />
So this is also changing how we address our market.”<br />
The public cloud is advancing<br />
StarHub’s pursuit in the cloud space has not stopped at<br />
SaaS. In February 2012, StarHub, in collaboration with<br />
<strong>Huawei</strong>, made a big step into the public cloud space by<br />
launching their public IaaS cloud, branded as Argonar.<br />
When asked about this name, Tan explained that the<br />
element Argon glows green when ignited, rather like the<br />
StarHub theme color. Argonar offers on-demand scalability<br />
in computing and storage with carrier-grade connectivity.<br />
“Thanks to the collaboration with <strong>Huawei</strong>, we now have<br />
a highly-scalable public IaaS cloud suitable for all sorts of<br />
cloud computing purposes. Combined with telco’s reliable<br />
network connectivity and security, a lot of customers will<br />
find it very advantageous to host mission critical services<br />
with Argonar,” Tan adds confidently.<br />
The service is primarily targeted at the SBs and SMBs,<br />
allowing them to manage their computer resources with<br />
ease without the hefty costs of infrastructure. While this<br />
may sound familiar to anyone who has been exposed to<br />
the hype of cloud computing, StarHub has added a telco<br />
flavor to the service through innovative billing. “One way<br />
to sell cloud services is that you go on a pure utility model<br />
in which customers bill for every resource they use.”<br />
Through experience and extensive interaction with some of<br />
the customers and potential customers, StarHub found that<br />
customers were not quite sure how much they would consume.<br />
In fact, they were quite worried that the cloud would end up<br />
costing more than traditional leasing or acquisition of hardware.<br />
“So we decided that, while retaining some flexibility<br />
in the utility model, we would use tiered plans similar to<br />
mobile phone plans… for example, we have plans such as<br />
744 computing units per month, which roughly translates<br />
to a certain number of services running continuously for<br />
24/7. IT managers would roughly know their normal<br />
consumption, and pick the suitable tier. In case of a surge<br />
in demand, they can subscribe to a turbo plan and pay<br />
more for the excessive usage (similar to what a mobile<br />
phone user would do).” This billing model has proven very<br />
popular with customers. “It’s quite unique in the Singapore<br />
market. For now, at least,” Tan adds with a smile.<br />
Looking back at the public cloud journey, Tan feels very<br />
fortunate to have had <strong>Huawei</strong> as a partner. As StarHub is<br />
relatively new to the cloud, it was beneficial to have <strong>Huawei</strong>’s<br />
support throughout the more than one-year journey from<br />
preliminary business case validation to implementation to<br />
post-launch marketing consultation. “<strong>Huawei</strong> worked with us<br />
closely to develop the cloud infrastructure as well as our goto-market<br />
strategy. As every operator is different, so is every<br />
market and segment. We wanted to have a system that is not<br />
too simple so that we can respond to certain demands; we<br />
also didn’t want a system that is overly complex that would<br />
drive up the costs. We eventually ended up with a system that<br />
was just right… one thing that we were particularly happy<br />
about was that <strong>Huawei</strong> was accommodating to changes.<br />
As we learned more about the market, we decided to make<br />
certain tweaks to our business model, which actually required<br />
<strong>Huawei</strong> to change a fair bit, in terms of implementation of<br />
the cloud. We are quite happy that this was done very quickly<br />
and nicely. As a result, we were able to launch a product<br />
which met all our requirements.”<br />
More to come<br />
So what’s next for StarHub? “<strong>Huawei</strong> has a very advanced<br />
roadmap in enhancing (public cloud) services. We will be<br />
working with <strong>Huawei</strong> on the enhancements, particularly on<br />
storage as a service, through the second half of the year…<br />
our customers can also expect more exciting SaaS solutions<br />
targeted at verticals in both SMBs and enterprise base.”<br />
Looking at the big picture, Singapore has proven<br />
very receptive to cloud computing. The government has<br />
been advocating cloud computing’s expected boost to<br />
productivity, and formulated a strategy as part of a wider<br />
effort under Singapore’s new e-Government masterplan<br />
(eGov2015). “We were recently selected to be one of the<br />
public service providers for the Singapore government.<br />
That actually requires us, together with <strong>Huawei</strong>, to<br />
go beyond the quality requirements and respond to<br />
clarification requirements of the Singapore government.”<br />
Tan concludes with lessons learned that he would like to<br />
share with fellow telcos. “Know your customers and routes<br />
to market. We focused on particular segments and sizes<br />
of customers. So when we built our cloud services, they<br />
were really for particular use. There is really no “one size<br />
fits all.” We didn’t want to launch a cloud with enterprise<br />
VM-based kinds of offerings. We wanted something that is<br />
open, scalable, and ISV-friendly. Also worthy to note is that<br />
cloud offers the telcos long-tail profit. In a cloud brokerage<br />
model, you can have one app in your platform as SaaS and<br />
it’s still profitable for you as a telco. Don’t miss the long-tail<br />
opportunities.” One final note he adds, “Although it is not<br />
the early days, it is not yet too late.”<br />
Editor: Jason jason.patterson@huawei.com<br />
NOV 2012<br />
8
VOICES<br />
FROM OPERATORS<br />
NTT DOCOMO<br />
keeps Japan smart<br />
Japan’s smartphone market is expanding rapidly. Users open to new things have adopted<br />
smartphones, and operators are finding ways to make users of feature phones join them. NTT<br />
DOCOMO is in the midst of enhancing its smartphone strategy, primarily by focusing on Android<br />
phones. Kiyohito Nagata, Senior Vice President and Member of the Board of Directors at NTT<br />
DOCOMO, discusses the company’s device strategy.<br />
By Pan Jiesun<br />
A smartphone market in flux<br />
Smartphones have developed rapidly in Japan, with<br />
sales volumes far exceeding operators’ expectations.<br />
As a leading player in the industry, NTT<br />
DOCOMO planned to sell six million smartphones<br />
in 2011, but ended up selling more than eight million.<br />
Nagata noted, “While our sales volume of smartphones<br />
far exceeds expectations, the growth of sales volume is<br />
normalizing. It will become very difficult to maintain this<br />
annual growth rate in the future. Smartphones have been<br />
very popular among innovators and early adopters. In the<br />
future, it is imperative to expand user groups.”<br />
To this end, NTT DOCOMO has adopted a strategy<br />
oriented around particular lineups. In 2011, the company<br />
divided smartphones into the NEXT and with series, to<br />
clearly distinguish target users, high-end and mid-range,<br />
respectively. Nagata admitted that “some may prefer the<br />
idea of meeting all user requirements with one product,<br />
but we think otherwise. To attract mainstream users,<br />
NTT DOCOMO launched the with series. Apart from<br />
functions and specifications, smartphones should integrate<br />
emotional and fashionable elements, and I believe users<br />
will love this direction.”<br />
In the feature phone era, NTT DOCOMO divided its<br />
products into five series targeted at different user categories,<br />
and this sort of strategic segmentation has continued into the<br />
smartphone era, allowing users to choose the model that is<br />
right for them. Although smartphones introduced by outside<br />
vendors swelled the Japanese market for some time, this<br />
wave eventually receded, as most recent bestsellers have been<br />
domestic. These models integrate features rare outside Japan,<br />
such as e-wallet, 1 SEG (a Japanese mobile TV service), and<br />
infrared communications. And while the advanced state of the<br />
Japanese market certainly puts it in Japanese vendors’ favor,<br />
Nagata argues that “overseas vendors share the same competitive<br />
environment with their Japanese counterparts. Indeed, the<br />
recent market situation provides many opportunities for<br />
Japanese vendors. However, in the era of i-mode (launched in<br />
1999), vendors only needed to develop products according to<br />
Japanese users’ requirements, while in the era of smartphones,<br />
they must adopt global basic technologies as a basis and try<br />
to add relevant functions. In this sense, overseas vendors with<br />
global technologies now have more opportunities in Japan.”<br />
NTT DOCOMO has been working with both Japanese<br />
and overseas cell phone vendors; speed and cost are what<br />
is expected from the latter. In Nagata’s view, most Japanese<br />
vendors are not competitive internationally, as they are<br />
losing their vitality, while overseas vendors’ comprehensive<br />
strength looks more attractive to operators. “Overseas<br />
vendors hold absolute advantages in resource allocation.<br />
In terms of sales volume alone, overseas vendors have<br />
outstanding cost competitiveness and strong fundamentals<br />
in terms of development capabilities.”<br />
In other words, the global vendors have an edge in being<br />
9<br />
NOV 2012
Some may prefer the idea of<br />
meeting all user requirements<br />
with one product, but we think<br />
otherwise. Apart from functions and<br />
specifications, smartphones should<br />
integrate emotional and fashionable<br />
elements, and I believe users will<br />
love this direction.<br />
— Kiyohito Nagata, Senior Vice President and<br />
Member of the Board of Directors at NTT DOCOMO<br />
NOV 2012<br />
10
VOICES<br />
FROM OPERATORS<br />
In the globalized market, what is important is how many high-end<br />
products a manufacturer makes and sells. Smartphones are a brand-new product<br />
category, where experience counts.<br />
able to utilize the industry’s fundamental technologies to<br />
develop and customize their products, even in a highly<br />
diversified marketplace, while Japanese vendors hold the<br />
advantage in terms of customization for the local market,<br />
but they have weaknesses in terms of cost and development<br />
capability. Nonetheless, Nagata deems it meaningless to<br />
distinguish vendors by nationality. “This is no longer about<br />
the difference between Japanese vendors and overseas<br />
vendors; rather, the difference lies in whether they see a<br />
global market or not.” Nagata added that in the future, cell<br />
phone vendors should focus on R&D capability, develop<br />
fundamental technologies that can be applied worldwide,<br />
and add localized elements as needed. This last element<br />
might require the same amount of investment from both the<br />
overseas and Japanese vendors, so the key to competition lies<br />
in boosting cost competitiveness in the basic technologies.<br />
Experience counts with smartphones<br />
In the Japanese market, users expect the best, and they<br />
purchase products from Japanese vendors believing that<br />
they are so. However, Nagata thinks that this belief does<br />
not extend to smartphones. “We can no longer assume<br />
that Japanese products are high-quality while those from<br />
overseas vendors are poor. In the globalized market, what is<br />
important is how many high-end products a manufacturer<br />
makes and sells. Smartphones are a brand-new product<br />
category, where experience counts.”<br />
Nagata would go on to note that the Japanese are<br />
expected to be demanding when it comes to quality, and<br />
yet in other developed countries, requirements for highend<br />
smartphones are also very high. In Nagata’s opinion,<br />
smartphones are a high-end product, so manufacturing<br />
skills determine quality; vendors that take the lead and<br />
develop new products in the global market and have a lot<br />
of experience in mass production can manufacture highquality<br />
smartphones more easily.<br />
Another potential challenge for overseas vendors is the fact<br />
that the Japanese are highly brand-conscious. In Nagata’s view,<br />
it is difficult for overseas vendors to build brands in Japan, but<br />
there are still ample opportunities. In the past, when Japanese<br />
vendors were focused solely on phones intended for use only<br />
in Japan, some overseas vendors launched cell phones with<br />
GSM roaming functions, while others rolled out low-priced<br />
phones to compete while the terminal prices of the Japanese<br />
products remained high. Those overseas vendors succeeded<br />
in boosting brand awareness and overcame the barriers in<br />
branding by emphasizing unique advantages. Nagata notes<br />
that “building a brand is indeed no easy job. However, in<br />
the last few years, overseas vendors have successfully built<br />
some brand awareness in Japan. By continuing to provide<br />
outstanding products, they have been embraced by the<br />
Japanese market. Compared with before, the Japanese are<br />
now more receptive to overseas brands.”<br />
At present, the Japanese market is basically saturated;<br />
new subscribers will not grow sharply. At this point, the<br />
opportunity for overseas vendors is to provide products<br />
with a unique personality that other companies do not<br />
offer. In other words, Japanese consumers are looking for<br />
something different.<br />
<strong>Huawei</strong> has withstood globalization<br />
<strong>Huawei</strong> is gaining a foothold in NTT DOCOMO’s<br />
product lineup thanks to the personality reflected in its<br />
products. <strong>Huawei</strong> started providing digital photo frames<br />
for NTT DOCOMO in December 2009, and unveiled the<br />
HW-02C handset for children in September 2011, which<br />
offered simple and limited functionality as well as increased<br />
security. According to Nagata, “In the area of devices<br />
11<br />
NOV 2012
In the area of devices oriented towards children, although NTT DOCOMO<br />
is a latecomer, with <strong>Huawei</strong>’s help, it is able to roll out products of satisfactory<br />
quality, color, and size at preferential prices, with excellent results.<br />
required by us at the cost agreed upon, eventually becoming<br />
our trusted partner. <strong>Huawei</strong> leads the world in cost and<br />
R&D cycle. It has many impressive methods, such as those<br />
for adding development resources, and in the use of human<br />
resources, that have stood the tests of globalization.”<br />
Looking forward to <strong>Huawei</strong>’s next hit<br />
HW-02C, handset for children<br />
oriented towards children, although NTT DOCOMO is<br />
a latecomer, with <strong>Huawei</strong>’s help, NTT DOCOMO is able<br />
to roll out products of satisfactory quality, color, and size at<br />
preferential prices. The products are highly competitive in<br />
sales, with excellent results.”<br />
Nagata would also add that “at first we were not totally<br />
confident as <strong>Huawei</strong> was a relatively new company in the<br />
Japanese market, but the results proved we made the right<br />
decision.” By partnering with <strong>Huawei</strong>, “We were able to<br />
reduce the overall cost to the point where it would be difficult<br />
to achieve it with our traditional partners. This enabled us to<br />
offer our services at a price embraced by customers.”<br />
“When introducing premier offerings, NTT DOCOMO<br />
teams up with <strong>Huawei</strong> to provide quality functionality. When<br />
rolling out a service that holds no particular advantage<br />
at the moment, NTT DOCOMO utilizes <strong>Huawei</strong>’s fast<br />
development model, resulting in net increases in subscribers<br />
and contributions to the growth of sales revenue.”<br />
When speaking of the partnership between NTT<br />
DOCOMO and <strong>Huawei</strong>, Nagata noted that “despite<br />
differences between the two sides in terms of development<br />
philosophy and language, <strong>Huawei</strong> provided the quality<br />
Now, NTT DOCOMO is pivoting towards its LTE<br />
business under the Xi (crossy) brand name. “Compared<br />
with other companies, NTT DOCOMO introduced LTE<br />
smoothly. This is our advantage. Users will understand<br />
LTE’s unparalleled speed of Internet access once they<br />
experience it. We are stepping up publicity of Xi as a<br />
flagship offering. DOCOMO is aiming to achieve 40<br />
million smartphone subscribers by FY2015, and this will<br />
expedite the expansion of the Xi product lineup.”<br />
At CES 2012, <strong>Huawei</strong> unveiled the Ascend P1s, then<br />
the world’s thinnest smartphone at only 6.68mm thick,<br />
as well as a selection of LTE models. At the event, Nagata<br />
was deeply impressed by the Ascend P1s. “The attitude<br />
of fighting to reduce a mere 0.1 mm shows <strong>Huawei</strong>’s<br />
enterprising spirit. <strong>Huawei</strong> understands what it should do<br />
in the world market and puts it into practice. A latecomer as<br />
it is, <strong>Huawei</strong> is very competitive in the smartphone market.<br />
What comments and support the Ascend series will receive<br />
around the world are very much worthy of expectation.”<br />
As for <strong>Huawei</strong>’s future development, Kiyohito Nagata is<br />
looking forward to any “surprising products” it might offer.<br />
“The surprise may come from the creative way that <strong>Huawei</strong><br />
incorporates our requirements for the services we provide in<br />
Japan into its global models, or in the form of a thoroughly<br />
customized model for the Japanese market. Either way, we<br />
are looking forward to a big surprise from <strong>Huawei</strong>.”<br />
Editor: Gao Xianrui sally.gao@huawei.com<br />
NOV 2012<br />
12
Perspectives<br />
On <strong>Huawei</strong>’s Pipe Strategy<br />
Everything that we do will be about making the pipe wider in itself<br />
and ubiquitous in its coverage, so that both our customers and ourselves have<br />
greater market opportunities to seize.<br />
By Eric Xu, Executive Vice President, <strong>Huawei</strong><br />
C<br />
ompanies choose to position themselves<br />
differently in the global ICT (Information<br />
and Communications Technology) ecosystem.<br />
Some focus on chips, some on basic software,<br />
some on consumer devices, some on content, and others<br />
on service operation. <strong>Huawei</strong>, however, chooses to focus<br />
on the pipe, which will direct the development and<br />
consolidation of all our businesses.<br />
And by pipe we mean a digital pipe system for carrying<br />
information, oriented by technology and sector (the<br />
ICT sector). China’s water system makes for an effective<br />
analogy. Network devices such as mobile phones can be<br />
thought of as the taps. When a tap is open, water flows<br />
through, with information generated and consumed.<br />
Enterprise networks are like the tributaries or urban water<br />
supply systems, while enterprise data centers function as<br />
reservoirs. If these intermediate waterways are broad and<br />
uncluttered, more water can be channeled into the main<br />
pipe, enabling more information exchange and aiding the<br />
proliferation of information technologies in the business<br />
world. Mobile and fixed broadband networks (MBB and<br />
FBB) are the principal rivers, like the Yellow and Yangtze,<br />
while data center solutions function as flood basins such as<br />
Dongting Lake. And finally, the backbone network is the<br />
Pacific Ocean, processing and transmitting information<br />
that flows in from tributaries. Together, these elements<br />
form a complete pipeline that encompasses the generation,<br />
aggregation, transmission, and switching of information,<br />
all the way to an “Information Pacific.” In this system,<br />
the services business also takes a part as they help manage,<br />
maintain, and optimize the pipe network so that it runs<br />
smoothly.<br />
IP Video and SDP (Service Delivery Platform) are<br />
enabling platforms that help customers generate revenue<br />
from their information pipes, while BSS (Business Support<br />
System) facilitates pipe operation and service billing.<br />
Network power systems get the flow started and keep<br />
it moving. All have a role to play in this pipe network,<br />
making it easier to manage and use so that customers<br />
enjoy enhanced revenue.<br />
<strong>Huawei</strong> will focus unswervingly on the pipe. It is our<br />
primary area of future investment. Some investments<br />
will be made in products and solutions that enlarge<br />
it, and support its effective billing, management, and<br />
maintenance. We will not, however, invest in the content<br />
itself (the water within the pipe).<br />
At <strong>Huawei</strong>, we endorse the idea of “broadband for all.”<br />
We are working towards a zero-wait customer experience<br />
that features high bandwidth and service diversity. We also<br />
actively support and participate in the cloud and M2M<br />
ecosystem. Everything that we do will be about making<br />
the pipe wider in itself and ubiquitous in its coverage, so<br />
that both our customers and ourselves have greater market<br />
opportunities to seize.<br />
<strong>Huawei</strong>’s pipe strategy is a focused one. For consumers,<br />
we only provide network devices that generate and<br />
consume traffic; non-networked electronics are not our<br />
business. For enterprises and industry verticals, we focus<br />
on ICT infrastructure and position ourselves as a product<br />
provider; we will not develop industry-specific application<br />
software. For carrier networks, our focus is architecture,<br />
from end to end, so that a high-caliber pipe that channels<br />
surging traffic is achieved. The objective of carrier network<br />
solutions is to deliver a zero-wait experience with high<br />
bandwidth and diverse services.<br />
<strong>Huawei</strong> has established three different business groups<br />
(BGs) to provide ICT solutions to different customer<br />
segments – carriers, enterprises/industries, and consumers.<br />
However, network devices, enterprise networks, carrier<br />
networks, and data center solutions are closely linked and<br />
complement one another. Also, technologies used across<br />
segments are vertically integrated and can all be traced to the<br />
same origin, the digital logic design. Wireless technologies<br />
are used for both base stations on carrier networks and<br />
13<br />
NOV 2012
<strong>Huawei</strong> will focus unswervingly on the pipe.<br />
It is our primary area of future investment. We will not, however,<br />
invest in the content itself (the water within the pipe).<br />
handsets used by consumers, while IT technologies are<br />
applied to both enterprise servers and specialized equipment<br />
(e.g., MSC and HLR) on carrier networks. The integration<br />
and sharing of technologies makes it possible for us to<br />
deliver more competitive products and solutions to each<br />
of the three customer segments, at a higher return on<br />
investment and lower cost. From this perspective, there are<br />
two driving forces that fuel our company’s development.<br />
One is customer need, which lies at the core of every<br />
solution that we deliver, thus moving our company forward;<br />
the other is technology, in that constant technical evolution<br />
brings a better experience and lower cost, propelling the<br />
industry ahead. These two drivers are interdependent and<br />
complementary; neither can be ignored.<br />
<strong>Huawei</strong> is committed to building a pipe oriented<br />
towards technology and sector. We are also committed<br />
to serving various types of customers that need such<br />
pipes. The world we live in is ever changing, and so are<br />
our customer base and their needs. While carriers will<br />
certainly continue to invest in the pipe, the Internet<br />
service providers may also build their own large-scale pipe<br />
systems; enterprises and industry verticals will accelerate<br />
their ICT investments as well.<br />
<strong>Huawei</strong> continues to focus on the customer through<br />
the quality that we provide and the services that we deliver,<br />
to all customers who need a pipe and can build a win-win<br />
relationship with us.<br />
<strong>Huawei</strong>’s pipe strategy is the company’s core, and<br />
the pipe business will remain our focus. As the digital<br />
flood approaches, we commit ourselves to enhanced pipe<br />
capacity, strengthened pipe enablers, and optimized pipe<br />
management, to deliver ever wider and more ubiquitous<br />
pipes, and an even better user experience. <strong>Huawei</strong><br />
is striving to build a connected society with endless<br />
possibilities – a society where our life and work are greatly<br />
enriched, made easier through communication.<br />
Editor: Jason jason.patterson@huawei.com<br />
Eric Xu, Executive Vice President, <strong>Huawei</strong><br />
NOV 2012<br />
14
Perspectives<br />
Cyber security perspectives<br />
21st century technology and security – a difficult marriage<br />
By John Suffolk, SVP of Global Cyber Security, <strong>Huawei</strong><br />
Our world has become truly connected.<br />
During the past twenty years, we have<br />
witnessed the blossoming of the commercial<br />
Internet, which planted the seed of an<br />
interconnected and global digital network that has made<br />
such things from email to telemedicine to browsing and<br />
social networks to online banking and retailing ubiquitous<br />
and affordable.<br />
Cyberspace is a new strategic domain, but it is unlike<br />
the physical territory which we are used to. It has gradually<br />
become the “nervous system” through which society<br />
operates. Countries now attach significant importance<br />
to the development of cyberspace technologies. The<br />
development of networks helped to advance social<br />
progress. Open networks have encouraged information<br />
flow and sharing, provided more opportunities for<br />
innovations, lowered the costs of innovation, and helped<br />
improve the world’s health, wealth and prosperity.<br />
Network technologies have turned out to be remarkable<br />
innovations. Open networks have made it easier to<br />
obtain and share information and have created untold<br />
opportunities for people to invent. As technologies become<br />
more pervasive, the costs of innovation are lowered which<br />
means that consumer, small and medium-sized enterprises<br />
and micro-enterprises have the opportunity to innovate on<br />
the same platform as large enterprises.<br />
The development of interconnected networks has<br />
encouraged investment and has enabled new consumption<br />
models that have driven global economic growth and fueled<br />
the global economy. Open networks connect the world,<br />
facilitate economic exchanges across regions, and promote<br />
global trade. Information technology has become a key<br />
driver behind economic growth. As reported by the World<br />
Bank, for every 10% increase in broadband penetration, the<br />
GDP in developing countries will increase 1.38%.<br />
With the substantial growth in data and the use of<br />
technology, we must adopt a positive attitude towards “data<br />
floods” and technology – not merely looking at the ills or<br />
Cyber Security Perspectives<br />
21 st century technology and security<br />
– a difficult marriage<br />
John Suffolk<br />
complexities that they create. We must utilize information<br />
to bridge the digital divide, provide more people with<br />
access to communications and information systems, and<br />
allocate information resources more appropriately, so<br />
that everyone on the planet can benefit from the use of<br />
technology. The openness of networks makes it possible<br />
for people to have equal access to information, improve<br />
social justice, and balance development across regions. The<br />
openness of networks has promoted cultural exchanges<br />
and helped to soften many of the misunderstandings, acts<br />
of discrimination, and cultural conflicts that exist between<br />
people with different cultural backgrounds.<br />
Yet, notwithstanding the monumental personal, social,<br />
15<br />
NOV 2012
Cyber security is not a single country or specific company issue.<br />
All stakeholders – governments and industry alike – need to recognise<br />
that cyber security is a shared global problem.<br />
and enterprise-oriented benefits that we have realised as<br />
a result of the digital and broadband revolutions, ageold<br />
real-world evils ranging from vandalism, theft, and<br />
disruption to espionage and wilful destruction have<br />
naturally gravitated to the new digital environment.<br />
<strong>Huawei</strong>, a global organization doing business in<br />
over 140 countries and connecting almost one-third of<br />
the planet’s population, is actively engaged in meeting<br />
these challenges head-on. As one of the world’s leading<br />
ICT solution providers, <strong>Huawei</strong> has deep technical<br />
understanding of how networks operate, and how<br />
technology fundamentally underpins and drives the health,<br />
wealth, safety and prosperity of citizens around the world.<br />
Yet not a day goes by that we do not read or hear<br />
politically – or competitor-inspired negative commentary<br />
about cyber security. While worry about breaches of cyber<br />
security is understandable and legitimate, the rhetoric risks<br />
distracting from the wide range of challenges our industry<br />
faces. Achieving an effective, global, industry-wide solution<br />
is going to demand sober and fact-based dialogue, not<br />
commercial or political jousting.<br />
In a world where over 87% of the planet’s population<br />
are mobile users, where the Apple App Store has seen over<br />
25 billion downloads, and where the downloads of Google<br />
Play Application Store have exceeded 20 billion, the stark<br />
reality is that cyber security is a growing global challenge<br />
demanding rational and universal solutions.<br />
No longer is technology designed, developed and<br />
deployed only in one country. No longer can any country<br />
or large company claim to rely on a single sourcing<br />
model, and no longer is it possible, with today’s complex<br />
technology ecosystem and architecture, that we can stop<br />
all threats from all threat actors.<br />
As governments, enterprises, and consumers have<br />
become increasingly reliant on ICT solutions that integrate<br />
inputs designed, developed, coded, and manufactured by<br />
multiple suppliers around the world, the scale of the cyber<br />
security challenge has grown exponentially.<br />
Cyber security is not a single country or specific company<br />
issue. All stakeholders – governments and industry alike<br />
– need to recognise that cyber security is a shared global<br />
problem requiring risk-based approaches, best practices and<br />
international cooperation to address the challenge.<br />
With the recent publications of threats such as Stuxnet<br />
and Flame, the world has reached a decision point: Does it<br />
continue on its current path whereby any misguided actor,<br />
regardless of motive, can operate freely in an unregulated<br />
world and develop malware for any purpose? If we accept<br />
this route, then we must stop complaining and accept the<br />
consequences of the cyber race to the bottom of the pit and<br />
the return of the Wild West. Or should we collectively step<br />
back from the precipice, as we have done in other forms of<br />
warfare, and establish laws, norms, standards and protocols<br />
– accepting that trust has to be earned and continually<br />
validated and also accepting that a lack of trust exists<br />
between some stakeholders when it comes to cyber security.<br />
In this scenario we must be realistic but determined.<br />
This paper favours and supports international<br />
collaboration, openness and verifiable trust as the<br />
foundation for a world where technology can continue to<br />
drive economic and social improvement for the majority of<br />
the 7 billion citizens on the planet. We hope you support<br />
this option too. At <strong>Huawei</strong> we make this commitment:<br />
We will support and adopt any internationally agreed<br />
standard or best practice for cyber security in its broadest<br />
sense. We will support any research effort to improve cyber<br />
defences. We will continue to improve and adopt an open<br />
and transparent approach enabling governments to review<br />
<strong>Huawei</strong>’s security capabilities. And finally, as we have<br />
done to date, we warmly welcome the assistance from our<br />
customers in enhancing our processes, our technology, and<br />
our approach to cyber security so that we can provide even<br />
greater benefits to them and their customers...<br />
The complete <strong>Huawei</strong> whitepaper is available at:<br />
http://www.huawei.com/ilink/en/download/HW_187368<br />
NOV 2012<br />
16
Perspectives<br />
LTE TDD goes mainstream<br />
Mobile ecosystem puts support behind the standard<br />
LTE TDD has gained wide ecosystem acceptance and backing from leading infrastructure and device vendors. LTE<br />
TDD holds promise when it comes to providing small cell backhaul and fixed broadband service. Its biggest market<br />
opportunity, however, should be in helping mobile operators meet the growing demand for data network capacity.<br />
By Daryl Schoolar, Principal Analyst, Infrastructure, Ovum<br />
LTE TDD applications<br />
Currently, operators<br />
looking to deploy<br />
LTE TDD are<br />
focused on three<br />
areas – mobile broadband,<br />
fixed broadband access, and<br />
backhaul.<br />
Mobile broadband<br />
The application that will<br />
drive the largest market<br />
opportunities for LTE TDD<br />
is support of fully mobile networks. China Mobile plans<br />
to deploy LTE TDD for its 4G network, and to grow its<br />
trial network to 20,000 base stations in 2012 and extend<br />
it to 200,000 base stations by the end of 2013. Some<br />
mobile operators, such as SoftBank (Japan), STC (Saudi<br />
Arabia), Optus (Australia), Hi3G (Denmark & Sweden),<br />
and China Mobile HK (Hong Kong), either currently<br />
have or plan to support both LTE FDD and TDD along<br />
with their existing GSM or WCDMA networks. <strong>Bharti</strong><br />
<strong>Airtel</strong> has launched LTE TDD as its primary 4G network<br />
technology. Clearwire (U.S.) and Mobily (Saudi Arabia)<br />
provide good examples of operators migrating from<br />
WiMAX to LTE TDD to take advantage of the bigger<br />
ecosystem the technology can bring them. The availability<br />
of LTE (FDD & TDD)/WCDMA/GSM smartphones<br />
later on this year will be the catalyst for mobile broadband<br />
development.<br />
Fixed wireless broadband access<br />
Many areas of the world still lack wireline networks,<br />
and many of these areas will never see copper or fiber<br />
deployments. For these areas, wireless networks remain<br />
the best option. Operators such as UK Broadband, SkyTV<br />
(Brazil), Zodafones (Nigeria), and Blueline (Madagascar)<br />
are using LTE TDD to build out fixed-line networks.<br />
Small cell backhaul<br />
It is LTE TDD’s support of point-to-multipoint that<br />
has some operators looking at the technology as a backhaul<br />
solution. Plus, as LTE TDD is part of the larger LTE<br />
ecosystem, it should also provide cost savings through the<br />
overall economies of scale expected to come from LTE.<br />
Other point-to-multipoint backhaul systems don’t have<br />
this benefit because they are proprietary systems. Backhaul<br />
may not be the biggest application for LTE TDD, but it<br />
should play a role in helping the technology to scale.<br />
TDD spectrum: An untapped resource<br />
Spectrum is a finite resource; there is only so much<br />
available. AT&T’s failed acquisition of T-Mobile was<br />
driven by AT&T’s desire to increase its spectrum holdings.<br />
The LTE standard, while more spectrally efficient than<br />
WCDMA or HSPA, still isn’t enough on its own to meet<br />
the spectrum needs of all operators. Small cells are one way<br />
of dealing with this issue.<br />
Small cells help operators deal with spectrum<br />
limitations through carrier Wi-Fi solutions and through<br />
increased spectrum reuse with pico- and microcells using<br />
licensed spectrum.<br />
The most obvious method for an operator to expand<br />
its spectrum position is through the acquisition of more<br />
FDD spectrum. This, however, is not always that easy.<br />
17<br />
NOV 2012
Spectrum is a finite resource; there is only so much available. The LTE standard,<br />
while more spectrally efficient than WCDMA or HSPA, still isn’t enough on its own<br />
to meet the spectrum needs of all operators.<br />
Government regulators, as in the case of AT&T and<br />
T-Mobile, may block the deal. Purchasing spectrum at<br />
an auction may not always be an option because of either<br />
the cost or the availability. Another option, and one more<br />
operators are looking at, is deploying LTE TDD over<br />
unpaired spectrum.<br />
Mobile operators can deploy a multi-mode LTE<br />
network to increase their overall network capacity. LTE<br />
TDD can be deployed in dense metro areas to provide<br />
capacity injection into areas where the LTE FDD network<br />
is strained. Part of the capacity benefits LTE TDD bring<br />
comes in the size of available spectrum blocks.<br />
Unpaired or TDD spectrum bands often come in large<br />
blocks. It isn’t unusual to see TDD spectrum auctioned<br />
off in 30MHz slices. From a capacity perspective, this is<br />
an advantage over the typical 2x10MHz configuration<br />
found in FDD spectrum. LTE Release 8 has a theoretical<br />
maximum speed of 16bps per hertz; the more hertz an<br />
operator has, the faster the network.<br />
TDD spectrum costs much less<br />
The biggest advantage of TDD over FDD spectrum is<br />
its cost. Mobile operators have historically been able to<br />
purchase TDD spectrum at a lower price than FDD. This<br />
has primarily been due to the fact that mobile operators<br />
have had limited options for using TDD spectrum.<br />
Until now, many of the systems that were available for<br />
TDD spectrum were proprietary, and not part of a larger<br />
ecosystem. Even with lower spectrum costs, the proprietary<br />
nature of those network systems that used unpaired<br />
spectrum have limited operators’ interest in networks using<br />
TDD. LTE TDD is changing that.<br />
With LTE TDD, operators can use lower cost unpaired<br />
spectrum with a networking technology that is part of a<br />
larger ecosystem than that for paired spectrum. This makes<br />
the overall cost of the network lower than those using<br />
paired spectrum. From a competitive position, this lower<br />
cost can make it easier for an operator to rollout a network<br />
and achieve a return on its investment. It can also use the<br />
lower cost of network ownership to offer lower-priced<br />
service and gain a competitive advantage in the market.<br />
However, mobile operators do need to be aware that the<br />
current spectrum cost advantage may not last. As interest<br />
in LTE TDD increases, so too, most likely, will the cost of<br />
unpaired spectrum.<br />
LTE FDD spectrum challenges<br />
Despite the popularity of FDD spectrum, it comes<br />
with many challenges. One of those challenges is that<br />
unused spectrum suitable for LTE FDD may not be<br />
readily available. In the U.S. there are ongoing LTE<br />
FDD deployments in 700MHz. This spectrum band’s<br />
propagation characteristics provide good coverage over<br />
large geographic areas. However, 700MHz is not readily<br />
available in all markets.<br />
In some markets, TV signals still transmit over<br />
the 700MHz band. It will take time for those bands<br />
to be cleared out and made available for mobile<br />
communications. Competition for FDD frequency brings<br />
its own problems as well. The most obvious problem<br />
competition brings to FDD spectrum is cost. As has<br />
been discussed already, bidding on prime FDD spectrum<br />
can be expensive due to high levels of competition for<br />
that spectrum. Competition for that spectrum can also<br />
lead to it being divided up into small allotments among<br />
multiple operators. These allotments can be small in size<br />
in terms of MHz or geographic coverage. In either case<br />
this will make it difficult for an operator to be successful.<br />
NOV 2012<br />
18
Perspectives<br />
Eastern Europe 16%<br />
Asia Pacific 44%<br />
Middle East & Africa 18%<br />
North America 7%<br />
South & Central America 4%<br />
Western Europe 11%<br />
Source: Ovum<br />
Figure 1 Regional distribution of LTE TDD network commitments<br />
Another solution for gaining FDD spectrum comes from<br />
refarming.<br />
With spectrum refarming, an operator uses existing<br />
2G and 3G spectrum for LTE FDD. There has been<br />
significant interest in using 1800MHz for this. The<br />
problem here is that spectrum refarming can take a long<br />
time to achieve, slowing down the deployment of LTE.<br />
Because of these different challenges with FDD spectrum,<br />
the interest in TDD has risen.<br />
LTE TDD has broad support<br />
Global interest<br />
As discussed previously, one of the factors in LTE<br />
TDD’s success has been the fact that it has grown beyond<br />
just being a ‘China-only’ technology. Ovum has identified<br />
45 LTE TDD network commitments, only one of which<br />
has been made by China Mobile. It is also worth noting<br />
that the first commercial LTE TDD networks did not<br />
come from China, but from operators in Japan, Europe,<br />
and the Middle East.<br />
As shown in Figure 1, the global distribution of LTE<br />
TDD network commitments will help the technology to<br />
grow. It provides reassurance that deployment won’t be<br />
dominated by one country. In fact, the size of the Softbank<br />
deployment in Japan could make it the largest LTE TDD<br />
deployment until China Mobile goes commercial. In<br />
terms of just numbers of deployments, India appears to be<br />
well ahead of China, with seven different Indian operators<br />
committed to the technology.<br />
Strong device support<br />
Strong device support and wireless technology adoption<br />
are very much related. Without strong device support,<br />
end users will not adopt a technology. In this regard, LTE<br />
TDD appears to have a bright future. Chipset and device<br />
vendors have come out in support of the technology.<br />
Mobile operators should not be worried that deploying<br />
LTE TDD will limit their device choices.<br />
Multi-mode LTE FDD & TDD is promising<br />
Even more promising than just broad LTE TDD<br />
support is the support for multi-mode LTE FDD and<br />
TDD devices. Devices that support both types of LTE<br />
will help drive up device volumes, which will bring prices<br />
down, and allow for roaming between FDD and TDD<br />
LTE networks.<br />
Chipset vendor Qualcomm, for example, markets<br />
a chip that supports both FDD and TDD LTE. These<br />
chipsets are also multi-standard with GSM, WCDMA/<br />
HSPA, and CDMA support. Multi-standard support<br />
is very important, as there will be very little interest in<br />
devices that support just LTE TDD within the mobile<br />
operator community. Hisilicon, which has multi-mode<br />
and multi-band chipsets, already supports category-4 LTE<br />
TDD chipsets with 150Mbps in the downlink. On the<br />
device front, <strong>Huawei</strong> introduced the world’s first multi-<br />
19<br />
NOV 2012
800,000<br />
700,000<br />
600,000<br />
500,000<br />
400,000<br />
300,000<br />
200,000<br />
100,000<br />
2011 2012 2013<br />
2014<br />
2015<br />
2016<br />
LTE FDD<br />
LTE TDD<br />
LTE FDD/TDD<br />
Source: Ovum<br />
Figure 2 Global LTE FDD and TDD connections in thousands, 2012 – 2016<br />
mode personal hotspot device in December 2011 and a<br />
category-4 version will be available soon. Other multimode<br />
chipsets and devices are expected to follow from<br />
other vendors.<br />
LTE TDD commitments coming from leading<br />
operators in Brazil, Russia, India, and China will generate<br />
the scale needed to sustain long-term multi-mode device<br />
development.<br />
25% of LTE connections by 2016<br />
LTE connections can be segmented into three<br />
categories – FDD, TDD, and FDD/TDD. Of the three<br />
categories, LTE FDD has been more widely deployed and<br />
adopted. LTE FDD’s greater number of connections, versus<br />
those that involve TDD, can be attributed to two things.<br />
First has been the historical trend of most mobile operators<br />
preferring FDD spectrum over TDD spectrum. The second<br />
comes from LTE FDD’s initial commercial deployments<br />
coming in 2009, versus LTE TDD’s coming in 2011.<br />
Figure 2 shows Ovum’s forecast for LTE connections<br />
that are only FDD, TDD, or a combination of FDD and<br />
TDD.<br />
Despite the head start LTE FDD has over TDD, LTE<br />
connections using TDD will account for a significant<br />
percent of all LTE connections by the end of 2016. Ovum<br />
estimates that around 25% of all LTE connections will<br />
either be purely TDD or a combination of FDD and TDD<br />
at that time. Of the two, connections that are primarily<br />
TDD will account for the majority of those connections.<br />
Most mobile operators for the near to midterm will opt for<br />
either FDD or TDD in their existing network, not both.<br />
Infrastructure support is key<br />
Infrastructure vendor support is just as important as<br />
that of the chipset and device community when it comes<br />
to the long-term success of LTE TDD. Networks are a<br />
major investment by mobile operators. Service providers<br />
want assurance that the infrastructure community shares<br />
their commitment to a technology before deploying it.<br />
LTE TDD has support from all the leading infrastructure<br />
vendors. In fact, their LTE FDD solutions also support<br />
TDD. This allows them to provide operators with a choice<br />
between types of LTE along with the option of deploying<br />
both.<br />
Market leadership involves many factors<br />
Deploying a network can be a major undertaking<br />
that costs millions, if not billions, of dollars. Selecting a<br />
network partner is not something operators take lightly.<br />
The infrastructure partner plays a major role in the success<br />
of the network. That is why a thorough understanding<br />
of how different vendors stack up in terms of market<br />
leadership is important. It gives mobile operators much<br />
needed insight to help guide them in picking their<br />
network partners.<br />
One of the most obvious ways to judge market<br />
leadership of vendors enabling the underlying<br />
infrastructure is to measure equipment shipments. But<br />
shipments, especially in the early stage of a market, can<br />
NOV 2012<br />
20
Perspectives<br />
As mobile operators add LTE TDD to their existing LTE FDD networks,<br />
those initial LTE FDD wins provide a good indicator of who will win the LTE TDD<br />
deployment, especially as those LTE FDD networks also support the TDD variant.<br />
be misleading when it comes to true market leadership. A<br />
vendor successfully landing one or two early deployments<br />
could be a market share leader in the short term, but that<br />
position may not hold for the long term. When looking<br />
at market leadership in the early stages of a market, other<br />
factors beyond market share need to be examined. For LTE<br />
TDD, Ovum has identified the following factors when it<br />
comes to judging market leadership:<br />
LTE TDD commercial wins – While market share<br />
shouldn’t be the only indicator of market leadership, a<br />
vendor’s ability to win LTE TDD deployments certainly<br />
remains an important indicator of market leadership.<br />
Commercial wins provide an indicator of the vendor’s<br />
ability to sell its LTE TDD solution to operators. It also<br />
provides guidance when it comes to operators’ acceptance<br />
of that vendor as a network partner.<br />
Combined LTE commercial wins – Like LTE TDD<br />
commercial wins, success in selling LTE FDD is another<br />
important indicator of operators’ perceptions of the<br />
vendor as a network partner and the quality of the vendor’s<br />
network solutions. Furthermore, as mobile operators add<br />
LTE TDD to their existing LTE FDD networks, success<br />
in gaining those initial LTE FDD wins provides a good<br />
indicator of who will win the LTE TDD deployment,<br />
especially as those LTE FDD networks also support the<br />
TDD variant.<br />
GSM/WCDMA/HSPA market share/experience – A<br />
vendor’s previous success in gaining GSM and WCDMA/<br />
HSPA market share will impact their success in winning<br />
LTE deployments. Vendors have seeded the market<br />
for some years with multi-mode base stations. Those<br />
base stations help ease some of the pain that operators<br />
will face as they transition from 3G to LTE. Being the<br />
incumbent 2G or 3G vendor certainly gives that company<br />
an advantage when the mobile operator starts to look for<br />
LTE network partners. Furthermore, 2G and 3G success<br />
gives vendors credibility with mobile operators in terms<br />
of technology development and their ability to support<br />
network rollouts.<br />
Unpaired spectrum experience – Prior to LTE TDD,<br />
the most common network technologies to use unpaired<br />
spectrum were TD-SCDMA and WiMAX. Experience in<br />
deploying these technologies gives infrastructure vendors<br />
important experience in deploying networks that use time<br />
division duplexing. Not to be overlooked is the trend with<br />
WiMAX operators like Clearwire (U.S.) and Mobily (Saudi<br />
Arabia) to deploy LTE TDD. Having a WiMAX customer<br />
base gives vendors increased sales prospects for their LTE<br />
TDD gear.<br />
LTE TDD device support – End-to-end LTE network<br />
support is common with the major infrastructure vendors.<br />
All of them can deliver base stations, backhaul, and<br />
packet core solutions to operators. But, device support<br />
can be a real differentiator for a vendor, especially in the<br />
market’s early days when device availability can be limited.<br />
Being able to deliver devices, along with infrastructure,<br />
can ensure that operators can sell services on their new<br />
network. Having control of chipset development also helps<br />
here.<br />
2G/3G leaders should dominate LTE TDD<br />
For 2011, Ovum estimates that Ericsson, <strong>Huawei</strong>, and<br />
Nokia Siemens Networks generated over 70% of global<br />
base station revenues. This includes revenues for all the<br />
major wireless standards – GSM, WCDMA/HSPA, LTE,<br />
CDMA, and WiMAX. Because of these vendors’ existing<br />
mobile infrastructure positions, they should be in the best<br />
position to capitalize on LTE TDD in the long run.<br />
Editor: Jason jason.patterson@huawei.com<br />
21<br />
NOV 2012
NOV 2012<br />
22
Tao of Business<br />
<strong>Huawei</strong> knows LTE TDD inside & out<br />
Mobile data services are quickly becoming key profit drivers for operators. LTE TDD, through its ability to<br />
exploit unpaired frequency bands, can be the technology that brings these services to life, and its utility is<br />
being demonstrated through its growing ecosystem, where <strong>Huawei</strong> is well represented.<br />
By Deng Taihua, President of LTE TDD & WiMAX & TDS Network, <strong>Huawei</strong><br />
A GAS-powered technology<br />
LTE TDD is a global, asymmetric, synergistic<br />
(GAS) technology.<br />
Global: Large sections of contiguous unpaired<br />
spectrum are readily available in most countries.<br />
The mainstream TDD bands are at 1.9G/2.3G/2.6G/3.5G<br />
and total over 700MHz of bandwidth, bringing high peak<br />
rates and global LTE roaming within reach.<br />
Asymmetric: LTE TDD does not need the same<br />
bandwidth for downlink and uplink, and this bandwidth<br />
need not be constant. Both of these properties better<br />
reflect the real-world needs of mobile users, where irregular<br />
consumption with the occasional upload is the norm.<br />
Synergistic: LTE TDD shares 90% of its technology<br />
with LTE FDD (based on 3GPP standards), enabling an<br />
easy evolutionary path from WiMAX or TD-SCDMA, as<br />
well as interoperability with GSM, UMTS, and CDMA.<br />
At least half of the world’s top 150 operators possess<br />
TDD spectrum, and its value keeps increasing. In 2011,<br />
the average price of 2.6GHz spectrum was thirteen times<br />
what it was in 2009, a year that saw 90MHz of 2.3GHz<br />
bandwidth go unsold at auction in Hong Kong, only to<br />
sell three years later for USD60 million to three different<br />
competitors after fierce bidding.<br />
23<br />
NOV 2012
LTE TDD does not need the same bandwidth for downlink & uplink, and this<br />
bandwidth need not be constant. Both properties better reflect the real-world needs<br />
of mobile users, where irregular consumption with occasional upload is the norm.<br />
Of course, M&A works just as well as auction if not<br />
better, as has been seen in a slew of such moves over<br />
the past few years, such as SoftBank’s 2010 acquisition<br />
of Willcom and Optus’s more recent acquisition of<br />
Vividwireless. TV whitespace spectrum below 700MHz<br />
will also prove suitable for LTE TDD, if available.<br />
The pieces are in place<br />
As integration becomes the industry norm, multi-mode<br />
chipsets that cover a diverse range of frequencies have<br />
come online. In April 2012, Qualcomm unveiled its fifthgeneration<br />
chipsets, which support GSM/CDMA/UMTS/<br />
TD-SCDMA/LTE TDD/LTE FDD, spanning seven<br />
simultaneous radio frequency channels, while Hisilicon<br />
has released multi-mode chips that support simultaneous<br />
GSM/UMTS/TD-SCDMA/LTE TDD/LTE FDD, and<br />
other vendors are following suit.<br />
LTE TDD terminal development is also taking<br />
shape. According to GSA statistics, a total of 67 vendors<br />
introduced 417 LTE devices by June 2012. Among<br />
them, a total of 53 LTE TDD devices support Band 40<br />
(2.3G), while 64 devices support Band 38/41 (2.6G).<br />
Thus far, these devices have taken the form of dongles,<br />
Mi-Fi hotspots, and CPE, but LTE TDD-compatible<br />
smartphones finally joined in the game this October.<br />
The first small steps<br />
LTE TDD, with its robust compatibility and capacity<br />
(on par with fixed broadband), can satisfy a diverse body<br />
of network operators. SoftBank, <strong>Bharti</strong> <strong>Airtel</strong> (India), STC<br />
(Saudi Arabia), and Optus are aggressively developing<br />
this technology for mobile broadband (MBB) so that<br />
those aforementioned data services can be delivered at<br />
higher speeds, while RIL (India), Mobily (Saudi Arabia),<br />
and UKB (U.K.) are focusing on it as a low-cost lastmile<br />
option for wireless broadband (WBB), and Vodafone<br />
(Europe), and Bell Canada are strongly interested in using<br />
it as a microwave supplement.<br />
Presently, there are some big-time LTE TDD rollouts<br />
either in progress or on the horizon. SoftBank currently<br />
has the largest commercial deployment in the world, one<br />
that will utilize its 160,000 existing base stations (acquired<br />
from Willcom) in the near future. China Mobile has even<br />
bigger plans, as it looks to expand its network from 20,000<br />
trial stations to over 200,000 commercial ones over the<br />
next few years.<br />
More mainstream operators will soon join the LTE<br />
TDD development game. It is estimated that more than<br />
70% of sizable sales of LTE TDD gear goes to traditional<br />
GSM and UMTS operators, which has helped motivate all<br />
the major vendors to offer LTE TDD solutions, including<br />
the names normally associated with LTE FDD, as the<br />
aforementioned 90% overlap keeps its time-divisionduplex<br />
cousin from being too much of a stretch.<br />
<strong>Huawei</strong> leads the way<br />
An army of experts<br />
LTE TDD is a priority investment at <strong>Huawei</strong>. In<br />
addition to the 14,000 employees and 11 R&D centers<br />
that we devote to wireless technologies, <strong>Huawei</strong> has more<br />
than 4,000 engineers researching and developing LTE<br />
TDD full-time. Since 2010, <strong>Huawei</strong> has put forward over<br />
260 proposals that were eventually adopted as LTE core<br />
standards (20% of the world’s total).<br />
All these efforts have given <strong>Huawei</strong> an unsurpassed<br />
NOV 2012<br />
24
Tao of Business<br />
LTE TDD is a priority investment at <strong>Huawei</strong>. With an unsurpassed<br />
authority in LTE TDD, <strong>Huawei</strong> offers solutions that boast the best performance, best<br />
convergence, and best end-to-end innovation on the market.<br />
authority in LTE TDD that reflects in our relevant<br />
solutions, which offer the best performance, best<br />
convergence, and best end-to-end innovation on the<br />
market.<br />
Best performance<br />
<strong>Huawei</strong> LTE TDD technology has been tried & tested<br />
in some of the world’s most complex and strenuous<br />
traffic scenarios (think Tokyo). Key technologies in these<br />
instances include our multi-antennas, which improve cell<br />
edge speed through beamforming (BF), from single layer<br />
to double layer, as well as to multiple users.<br />
Single-layer BF can improve cell edge rate by 30% in<br />
real-world scenarios, while our single frequency network<br />
(SFN) technology can boost this by a further 50%. Our<br />
intelligent baseband array (IBA) can enhance inter-cell<br />
performance as well. <strong>Huawei</strong> is the first to put uplink<br />
coordinated multipoint (CoMP) technology (a feature of<br />
LTE-Advanced) into commercial use, leading to an over<br />
7% increase in average uplink rate.<br />
Best convergence<br />
<strong>Huawei</strong> SingleRAN makes LTE TDD compatible with<br />
any mobile commercial network. This has been seen with<br />
the likes of SoftBank (UMTS), STC (GSM/UMTS),<br />
China Mobile (GSM/TD-SCDMA), Mobily (WiMAX)<br />
and Aero2 (LTE FDD).<br />
This solution also makes <strong>Huawei</strong> the only vendor in<br />
the industry to support LTE TDD and all other wireless<br />
modalities through a single BBU; different modalities can<br />
be engaged and interact as coverage, location, workload,<br />
SPID, and PLMN dictate to maximize integration<br />
25<br />
NOV 2012
As of end of June 2012, 29 LTE TDD networks were deployed<br />
or were being deployed worldwide, and <strong>Huawei</strong> was involved in 21 of them,<br />
often in the operators’ most valued regions.<br />
performance.<br />
Best end-to-end innovation<br />
<strong>Huawei</strong> provides a complete lineup of LTE TDD<br />
terminals, which boasts several industry firsts. In 2011,<br />
we released a LTE TDD/LTE FDD dual-mode data card,<br />
multi-mode data card for GSM/UMTS/LTE TDD, indoor<br />
CPE, multi-mode mobile Wi-Fi for GSM/UMTS/LTE<br />
TDD, and outdoor CPE, all world’s firsts. In 2012, we have<br />
followed these up with our first LTE TDD smartphones.<br />
A large number of other LTE TDD innovations<br />
have also joined the party. In May 2012, <strong>Huawei</strong>’s TD-<br />
Fi solution found its way into a commercial trial on a<br />
bus line in Hangzhou (a Chinese provincial capital),<br />
delivering an average speed of 40-50Mbps for offload.<br />
Moreover, our eRelay solution, based upon LTE TDD,<br />
can provide backhaul for macro and micro base stations<br />
and support both point-to-multipoint and non-line-ofsight<br />
transmission, while our eMBMS technology helps<br />
the offering of live IPTV services or push video over LTE<br />
TDD by allocating additional downlink resources for<br />
broadcasting.<br />
We’ve got references<br />
As of end of June 2012, 29 LTE TDD networks were<br />
deployed or were being deployed worldwide, and <strong>Huawei</strong><br />
was involved in 21 of them, often in the operators’ most<br />
valued regions.<br />
As the world’s No. 1 provider in terms of ARPU for<br />
mobile Internet data services, SoftBank focuses on LTE<br />
TDD as its major evolution route to LTE. In September<br />
2011, the operator selected <strong>Huawei</strong> as its strategic partner<br />
to build its LTE TDD network in Tokyo, Osaka, and<br />
Nagoya. According to an evaluation of Tokyo’s four<br />
newest networks by the ICT, a well-known professional<br />
evaluation agency, “SoftBank’s AXGP (LTE TDD) by far<br />
outperformed all other networks.”<br />
As China Mobile’s partner, <strong>Huawei</strong> has deployed<br />
networks single-handedly for world-class gatherings such<br />
as the 2008 Summer Olympic Games, the 2010 Asian<br />
Games and the 2011 Universiade Games. As a key partner<br />
in the Global TD-LTE Initiative (GTI), <strong>Huawei</strong> works<br />
closely with the GTI to jointly hold global events and<br />
other activities, such as “TDD Nights,” that promote<br />
industry development.<br />
<strong>Huawei</strong> is also dedicated to promoting the development<br />
of the industry ecosystem. Hisilicon has introduced LTE<br />
TDD single-mode chips and LTE TDD/LTE FDD multimode<br />
chips ahead of the competition. Its latest GSM/<br />
UMTS/LTE multi-mode chipsets support LTE with a<br />
single-user rate of 150Mbps. <strong>Huawei</strong> has also opened<br />
multiple LTE TDD interoperability testing labs in<br />
cooperation with other chipset vendors.<br />
At the June 2012 GTB Innovation Summit, SoftBank’s<br />
LTE TDD commercial network in Tokyo won the award<br />
for LTE TDD network innovation.<br />
At the May 2012 LTE World Summit, <strong>Huawei</strong> won the<br />
awards for Most Significant Development for Commercial LTE<br />
Networks by a Vendor and Best LTE Core Network Element.<br />
These awards have joined our numerous others from 2011,<br />
demonstrating our leadership in LTE TDD, as attested to by<br />
the likes of Ovum, Dell’Oro, and the GSA.<br />
Editor: Pearl Zhu zhuwenli@huawei.com<br />
NOV 2012<br />
26
Tao of Business<br />
Monetizing the NBN<br />
Strategies & services<br />
National Broadband Networks (NBNs) are being planned and rolling out around the world,<br />
promoted by a strong convergence of interests, with governments looking for macroeconomic<br />
benefits and telcos looking to satisfy their subscribers’ demands for improved services. The problem<br />
for telcos is how to cover the costs of building these next-generation networks.<br />
By Nigel Bruin, Director Business Consulting,<br />
NBN Competence Center, <strong>Huawei</strong> Singapore<br />
The foundations matter<br />
The structure of a national fiber<br />
broadband network and the<br />
regulations that govern it have a<br />
big influence on the opportunities<br />
for revenue-generating services. The broadest<br />
marketplace is always going to be based on an<br />
open-access or wholesale model supporting<br />
many service providers.<br />
There are different structural models and<br />
the choice is usually dictated by the practical<br />
and necessary concerns of the existing operators, perhaps<br />
including a state-controlled incumbent. There is no single<br />
regulatory structure suitable for all situations, but the most<br />
important layer is that which provides wholesale network<br />
access to the retail service providers (RSPs). This is where<br />
innovation and competition drive the large-scale benefits.<br />
Managing CAPEX<br />
The biggest financial issue is the high capital cost of<br />
network construction, especially the civil works. Digging<br />
roads is expensive, aerial wiring less so, but last-mile<br />
connections will still account for around 50% of the project<br />
cost; money that is spent in advance of any revenue earned.<br />
Government grants, subsidies, or loans designed to promote<br />
the project have the strongest effect here.<br />
The other major factor affecting the<br />
return on investment is the take-up rate by<br />
subscribers; sharing the cost of the last-mile<br />
infrastructure as widely as possible lowers<br />
the per-connection costs dramatically. The<br />
competitive environment influences takeup<br />
rates but so does regulation of elements<br />
such as the decommissioning of legacy<br />
infrastructure. Once built, a passive optical<br />
network (PON) is cheaper to operate<br />
and maintain; in Japan, NTT estimates a<br />
60% OPEX savings over DSL. PON also,<br />
crucially, offers the lowest cost-per-bit<br />
transmitted, which is ever more important each year as<br />
data volumes surge on both fixed and wireless networks.<br />
The Internet is fixed<br />
Fixed and wireless operators have been drifting apart for<br />
years by divestiture, but mobile operators’ successes with<br />
UMTS and now LTE highlight the pressing need to get<br />
all this data onto fiber as quickly as possible. It has taken<br />
a while for operators & subscribers to realize that Internet<br />
access is the major killer app for mobile phones, but since<br />
the Internet is a wireline network with a thin wireless edge,<br />
there are pressing requirements to deploy fiber backhaul to<br />
base stations, Wi-Fi offload, and residential small cells, all<br />
of which can benefit from a national fiber infrastructure.<br />
Telco substitution<br />
27<br />
NOV 2012
Operators of POTS networks have seen steady declines<br />
for years; a 7% annual revenue loss is occurring now in some<br />
markets. Globally, the number of mobile lines surpassed<br />
fixed ones in 2003 and it is now numerically dominant. It<br />
is true that for some, fixed-mobile substitution is an option,<br />
but the bigger issue is one prompted by the latest fast fiber<br />
connections providing 50Mbps and often more, as their<br />
ability to substitute all traditional telco services, including<br />
voice & video, with Internet-based alternatives heralds an<br />
era of credible telco substitution.<br />
Shifting revenues<br />
Fiber networks are enabling rapid and disruptive shifts<br />
in services (revenues). For a basic broadband provider,<br />
these are challenging times. Broadband was once sold by<br />
speed (1Mbps, 4Mbps) or in some markets by monthly<br />
data volume (5GB, 10GB); neither is a satisfactory way<br />
to manage NBN as both have the effect of depressing<br />
use, and yet if the service is being sold on a fixed monthly<br />
tariff, applying limits seems like a rational response.<br />
A third way, charging for every byte transmitted, is<br />
seriously flawed as the value of each byte varies greatly<br />
depending upon the application, and consumers have<br />
become comfortable with predictable monthly bills. The<br />
challenge is granting reasonably generous access to data<br />
and gaining revenue from the value that it represents.<br />
Less telco, more Internet<br />
There is an industry-wide transformation currently<br />
taking place that perhaps rivals the other great industry<br />
change (where the telephone companies became ISPs)<br />
where charging for access is being replaced by the offering<br />
of value-added services (VAS), either directly or indirectly,<br />
on a wholesale access network. The end goal is much closer<br />
to that for an ICT company as opposed to a traditional<br />
telco. In a sense, this places the operator in competition<br />
with the entire Internet, a daunting prospect and one<br />
that cannot be won outright; OTT services cannot be<br />
eliminated or defeated, so how does a telco develop a<br />
successful monetization strategy for fiber access?<br />
OTT triage<br />
The initial approach is to triage (separate into three<br />
categories) the major services that subscribers use and<br />
decide how to offer each one. Operators can:<br />
• Compete using an in-house version (Access<br />
Independent Services).<br />
• Cooperate with a third-party provider.<br />
• Leave it to the OTT market.<br />
Clearly, this must be mapped against one’s organizational<br />
capabilities & strategies such as the technology roadmap,<br />
product development capacity, and risk-revenue assessment.<br />
The pace at which an operator can challenge OTT services<br />
depends not only upon its ability to take on new skills but<br />
also its willingness to displace legacy services. Incumbent<br />
operators tend to view these risks differently from new market<br />
NOV 2012<br />
28
Tao of Business<br />
OTT services that pass through the network are a serious<br />
challenge and the telco should decide for each category whether to develop<br />
a competing VAS or enter a cooperative partnership.<br />
entrants, as even the perception of value destruction may be<br />
harmful to shareholder interests. However, market disruption<br />
is tough, and courage is required to move forward boldly and<br />
disrupt your own services before the new ones gain revenue.<br />
Revenue capture<br />
An operator has a core set of services, voice, data, and<br />
often video, available on the fiber network. OTT services<br />
that pass through the network are a serious challenge and<br />
the telco should decide for each category whether to develop<br />
a competing VAS or enter a cooperative partnership.<br />
The form of such an alliance depends on what value the<br />
telco is offering. If the value is simply the access network,<br />
then it is a form of managed wholesale. If the telco is adding<br />
further resources such as CDN or compute servers, then it<br />
is a hosted model. More intriguing are the opportunities to<br />
manage data flows using QoS, or to add ancillary functions<br />
such as billing, providing a classic two-sided business model<br />
and putting the telco firmly in the middle of the value chain.<br />
Many major operators have developed their own<br />
products, keen to address competition in basic voice<br />
services by upgrading to VoIP services and Internet video<br />
conferencing through well-known OTT players.<br />
Pay TV<br />
Streaming video is a major revenue opportunity but it is also<br />
costly to transport. Pay TV is a little different from many OTT<br />
services as it already has a natural two-sided business model, with<br />
operators providing the hosting, distribution, and marketing<br />
for content providers. Operators have been following a model<br />
closer to that used by cable TV providers through partnering<br />
with either content owners directly or with an Internet-based<br />
distributor. Either way, by improving service quality over OTT<br />
through less buffering, assured bandwidth, and perhaps a<br />
sophisticated home terminal, operators can add significant value.<br />
The latest hybrid home terminals that present multiple<br />
video sources in a single, consistent user experience are an<br />
opportunity for telcos to become the common platform<br />
for home video.<br />
Expanded market reach<br />
As operators develop VAS services beyond simple access,<br />
they have the opportunity to offer them across the entire<br />
NBN, and even to Internet subscribers. It only seems fair<br />
that, in developing services to compete with the Internet,<br />
one can expand the addressable market and become a<br />
reverse OTT service provider.<br />
Competitive voice<br />
POTS voice is in slow decline in terms of both penetration<br />
and revenue, but it is still a core telco service and one with<br />
plenty of innovation left in it. Voice revenues are not going to<br />
collapse due to OTT VoIP providers as they find it difficult<br />
to compete with the telcos due to issues of numbering, call<br />
quality, and ease of use.<br />
Operators are responding by maintaining legacy voice services<br />
and enhancing them with Unified Communications (UC).<br />
By focusing on legacy strengths and certain OTT weaknesses,<br />
voice can be transformed into a competitive offering through<br />
initiatives such as Rich Communication Suite (RCS), marketed<br />
as joyn. Building on an IMS platform, RCS is a telecom-based<br />
UC solution, offering multiplatform clients, presence, and<br />
media sharing, backed up by carrier-grade implementation<br />
and familiar numbering. The enterprise market places great<br />
emphasis on call quality and such an in-house solution can meet<br />
their expectations, but it faces strong competition from Internet<br />
services; so for incumbent operators, this helps to reduce churn.<br />
Quality of experience<br />
29<br />
NOV 2012
It is common practice to tier Internet access plans by<br />
speed and/or data cap. Next-gen fiber access permits further<br />
differentiation to monetize the experience using quality<br />
of experience (QoE) to control traffic speed & priority,<br />
not just statically but on demand (Turbo Button). This<br />
capability is not unique to fiber, but GPON’s very high line<br />
speed and fully-configurable traffic shaping make this an<br />
attractive and achievable proposition. This opens up a world<br />
of possibilities for optimizing user experience to immediate<br />
needs, and hence a new set of chargeable features.<br />
Advantage: Operator<br />
Competing effectively against new services is a challenge<br />
but operators have significant advantages over OTT providers.<br />
Firstly, operators have an existing subscriber relationship,<br />
supported by their brand. This should make marketing,<br />
service activation, and billing a smoother process.<br />
Secondly, GPON provides excellent bandwidth and<br />
traffic control functions and the ability to differentiate based<br />
on QoE, which an OTT provider cannot equal. Thirdly,<br />
operators often have internal assets such as caching, storage,<br />
computing, and billing, that they may leverage to develop<br />
new services either by themselves or in collaboration.<br />
Because market disruption favors first-mover advantage,<br />
partnering to compete with OTT is a feasible and, indeed,<br />
recommended way to reduce the time to market.<br />
Telco cloud<br />
Moving computing resources and their applications onto<br />
the network is a defining transformation of our age that has<br />
been accelerated by widespread availability of broadband<br />
access. Telcos are very well placed to offer cloud services, but<br />
this is a medium to long-term development project, best<br />
taken in phases since it involves a lot of technology; building<br />
the skills and competencies takes time.<br />
Successful cloud deployments need to acquire scale<br />
to be cost-effective and a typical approach is to start by<br />
virtualizing existing services and growing from there. Some<br />
of this infrastructure may exist already, often from CDN and<br />
enterprise products. Offering a full stack of software products<br />
can be approached by beginning with an infrastructure<br />
product (IaaS) and then partnering to provide applications<br />
(SaaS). Operators can compete effectively against the major<br />
global SaaS offerings by providing local support or training to<br />
local SMEs who are quick to appreciate their benefits.<br />
Bring it all together<br />
The strategic challenge for operators is to choose how<br />
QoE is a subjective concept that covers the<br />
following attributes at the minimum:<br />
Speed – This encompasses not just the<br />
allocated network bandwidth (pipe size) but the<br />
perception of speed (response time). The usage<br />
pattern of an individual user is often very bursty<br />
and the challenge for the network designer is to<br />
engineer an end-to-end capability that meets this<br />
expectation.<br />
Quality – Media quality for high-definition<br />
(HD) video & voice, augmented reality, and other<br />
aspects of the user experience are readily perceived<br />
and appreciated by consumers.<br />
Equivalence – This means having the same<br />
content or capability in different places or on<br />
different devices. Whether we are in a post-<br />
PC world or not, consumers are already using a<br />
variety of fixed and mobile devices to suit their<br />
needs and tastes.<br />
Simplicity – Consumers want to communicate<br />
in simple and natural ways and the user interface<br />
(UI) should reflect this desire. Fortunately,<br />
effective touch and voice interfaces are available.<br />
far to go in addressing the OTT value chain; while the<br />
opportunities are considerable, so are the risks. If an operator<br />
focuses on their traditional revenue stream and tries to grow<br />
organically, there may be less internal & financial risk but<br />
competitive pressures from disruptive competitors may<br />
prevail. As operators balance these issues, the deployment of<br />
an NBN acts as a catalyst to market change. Thus, a wait-and<br />
see approach is unwise as it risks a dangerous convergence of<br />
exploding costs and revenue stagnation.<br />
Broadband access is becoming a commodity and fiber<br />
networks promote and accelerate this trend, expanding the<br />
full potential of the Internet directly into homes. Fortunately,<br />
NBNs also offer the solution to the disruptions they<br />
introduce through a platform for innovative, next-gen services<br />
and finely-tuned user experience. Their speed, latency and<br />
bandwidth permit even more exciting solutions and business<br />
propositions.<br />
Telcos must steer a course through these uncertainties.<br />
According to an Ovum study, globally, new telco products<br />
are expected to grow at 9% annually compared to only 3%<br />
for traditional telecom services. This revenue opportunity<br />
should act as a lighthouse when crafting business and<br />
technology strategies, drawing the operator towards a<br />
brighter future.<br />
Editor: Jason jason.patterson@huawei.com<br />
NOV 2012<br />
30
Tao of Business<br />
Frenemies<br />
How can telcos get a piece of the OTT pie?<br />
As the Internet is increasingly dominated by video, OTT will further cripple the telco industry<br />
unless both sides learn how to work together for the benefit of all. It will probably be the operators offering<br />
the first olive branch, but such is the burden of leadership.<br />
By Mike MacDonald, CTO and Executive Solutions Consultant, <strong>Huawei</strong> Southeast Asia<br />
For many, the phrase “over the top” may simply mean<br />
“to the extreme.” But, in telecommunications, it is<br />
a phrase that cuts the air like a knife and takes our<br />
wallet while doing so. Wikipedia defines it as the<br />
“on-line delivery of video and audio without the Internet<br />
service provider being involved in the control or distribution<br />
of the content itself.” In present terms, OTT has been<br />
extended to encompass virtually any service or content<br />
delivered over infrastructure not controlled by the owner<br />
of that service or content. As such, it typically bypasses an<br />
operator’s ability to apply bandwidth management, quality<br />
of service, billing, etc.<br />
For the time being, the OTT and telco realms act like<br />
teenagers at a middle school dance - boys on one side, girls<br />
on the other, everyone acting skittish. Basically, this is the<br />
result of the rapid rise of the webscape and telcos’ inability<br />
to successfully retrain layoff targets to be whiz-bang<br />
software designers. As a result, the services that subscribers<br />
actually want to access are not directly linked to data plans<br />
offered by most telco marketers.<br />
Clearly it makes sense that a subscriber who wants to<br />
download a movie for a few dollars needs to consume<br />
an appropriate amount of bandwidth, but how much?<br />
Even the best engineers struggle with this as video can be<br />
encoded using one of many codecs, and can sometimes<br />
change on the fly through a process called transcoding.<br />
In addition to the sheer number of bits consumed, the<br />
width of the data highway needs to be wide enough to<br />
support the screen in question (10-inch tablet to 40-inch<br />
flatscreen). Already you can see how difficult it would be<br />
for a subscriber to purchase a movie and then figure out<br />
exactly which data plan makes sense to use.<br />
Fair seems foul<br />
31<br />
NOV 2012
Interestingly, most telcos already have investments in application-aware<br />
networks, policy control & charging, and sophisticated billing, yet for some<br />
reason these aren’t leveraged to align with subscriber usage.<br />
If we extend the example to assume subscribers are<br />
starting to sign up for monthly subscriptions such as<br />
Netflix, now we come head to head with the dreaded “Fair<br />
Use Policy,” which perhaps, contrary to consumer logic,<br />
protects fair use for other people while limiting your own<br />
bandwidth if you happen to watch all eight seasons of<br />
How I Met Your Mother in one month. A quick search for<br />
“Fair Use Policy” in Wikipedia actually redirects to the<br />
incredibly disheartening “Bandwidth Cap” entry. Let’s<br />
digress a bit and investigate a paraphrased definition of<br />
unreasonable use from a leading telco’s terms of service:<br />
“The unreasonable use of data services where your<br />
use of data services is reasonably considered to adversely<br />
affect the network or other customers’ use of or access to a<br />
service or the network.”<br />
So basically, if you use the service too much and that<br />
use adversely affects other users, even though you have<br />
subscribed to a predetermined bandwidth package, the<br />
telco reserves the right to “suspend or limit the Service (or<br />
any feature of it) for any period We think is reasonably<br />
necessary.”<br />
This is getting scary, especially as the definition of<br />
“too much” seems to mean “your usage is affecting other<br />
subscribers.” This is all well & good, except for the fact<br />
that it depends as much on what other subscribers are<br />
doing as on what you are doing, and the statistics indicate<br />
that both you and them are probably watching a True<br />
Blood marathon.<br />
The future is now, and it’s in HD<br />
Internet video traffic is expected to consume 54% of<br />
all consumer Internet traffic in 2016, up from 51% in<br />
2011, and this does not even take into account video peerto-peer<br />
(P2P) file sharing. All forms of video (TV, VOD,<br />
Internet, and P2P) are expected to total 86% of global<br />
consumer traffic by that time. And that’s not all – twothirds<br />
of the world’s mobile data traffic is expected to be<br />
video by 2016; this would account for a 25-fold increase<br />
from 2011 levels.<br />
The monthly subscriber, who after happily paying thirty<br />
dollars per month for a 10Mbps connection and another<br />
seven dollars monthly for Netflix, now stands a very high<br />
likelihood of his bandwidth being throttled back to a<br />
few hundred kbps because his insatiable Stargate fetish is<br />
adversely affecting the little old lady across the street trying<br />
to selling tea cosies on eBay.<br />
This dilemma extends to VoIP, IPTV, streaming audio,<br />
and pretty much anything else that isn’t text or voice.<br />
Interestingly, most telcos already have investments in<br />
application-aware networks, policy control & charging,<br />
and sophisticated billing, yet for some reason these aren’t<br />
leveraged to align with subscriber usage.<br />
We’d better dance before the<br />
music stops<br />
OTT players don’t know networks, and telcos don’t<br />
know applications. There are network performance<br />
problems that can be fixed through better code and there<br />
are web performance issues that can be fixed with a better<br />
network, yet both factions choose to go it alone, thinking<br />
they are closer to the holy grail than the other. The truth<br />
of the matter is that the customer trumps all and in his<br />
mind the application or content is intimately linked to the<br />
NOV 2012<br />
32
Tao of Business<br />
Offering data packages that align with subscriber usage likely won’t prove<br />
sustainable with fickle users. Instead, telcos must make assets available to web<br />
developers, even if it means handing the reins to a younger generation.<br />
network over which it rides. But when the two don’t jive,<br />
it’s usually the suits at the telco that get blamed rather than<br />
the hipsters at the web service.<br />
However, things are not as bleak as they seem. Some<br />
operators are changing their ways and offering data<br />
packages that align with subscriber usage in the form of<br />
a dollar a day for Facebook, a dollar a day for WhatsApp,<br />
or forgoing a data charge altogether if a preferred OTT<br />
service is used such as Skype (Verizon). While this model,<br />
which aligns pricing to services consumed, is a good start,<br />
it likely won’t prove a sustainable revenue stream in the<br />
face of a fickle crowd, as a firm can go from hipster to<br />
whipping boy in less time than it takes to say Facebook.<br />
Instead, telcos need to make their assets available to the<br />
web developer community, even if it means handing the<br />
reins to a younger generation.<br />
Of course there will be some services that can be more<br />
localized such as VoIP, IPTV, and mobile money, provided<br />
they still offer the ability to tap into the offerings of global<br />
players. I recall the sole reason that a Thai friend told me<br />
for choosing an Android tablet rather than an iOS product<br />
was simply that a credit card was required to create an<br />
account for the latter’s application store. It may sound<br />
simple, but we can’t dismiss the fact that connecting the<br />
next billion will not be as easy as connecting the first.<br />
What got us here won’t get us there.<br />
Forward-thinking operators are now realizing that<br />
their leverage over OTT players is limited. A relatively<br />
large dustup happened in May 2012 when KPN and<br />
other Dutch operators announced their plans to surcharge<br />
for OTT applications, including Skype and WhatsApp,<br />
leading the Minister of Economic Affairs, Agriculture and<br />
Innovation to put on his Net Neutrality hat and announce<br />
that “Dutch telecom law will be amended to ensure free<br />
access to the Internet.”<br />
Telefónica, the sixth largest telecom operator<br />
worldwide, has announced a partnership with Google,<br />
Facebook, Microsoft, and RIM for carrier billing which<br />
will enable subscribers to use their mobile credits to<br />
purchase applications and other virtual goods made<br />
available at OTT stores, effectively making the purchase<br />
of virtual goods and applications much more accessible to<br />
subscribers.<br />
In June, TELUS signed an agreement with Skype that<br />
“will revolutionize how TELUS smartphone customers<br />
use Skype, including the ability to purchase Skype Credit<br />
through their existing TELUS accounts.” Just a few years<br />
earlier, TELUS was also one of the first to extend their<br />
IPTV service to the Microsoft XBOX.<br />
In the middle of these two extremes, we have other<br />
operators that are trying to find a sweet spot between their<br />
home grown applications and those of OTT providers.<br />
Comcast thinks it can benefit from Skype (which now<br />
reaches well over 800 million subscribers), albeit in a<br />
limited fashion, by enabling calls to and from set-top<br />
boxes through an adapter but forgoing support for calls<br />
to and from actual phone numbers, which will instead be<br />
supported by a Comcast in-house solution.<br />
Now what?<br />
Dr. Hugh Bradlow, CTO of Telstra, Australia’s largest<br />
mobile operator, recently announced that operators must<br />
stop competing with OTT and instead focus on working<br />
with them to benefit all.<br />
Some applications make more sense for near-term tieups,<br />
such as mobile money. In countries where credit card<br />
penetration is under 10% and bank account penetration<br />
is under 40%, subscribers simply don’t have the local<br />
payment facilities available to enable the full webscape<br />
experience. Instead, local operators can leverage their<br />
thousands of paypoints in combination with strong<br />
relationships with local banking institutions. At the end<br />
33<br />
NOV 2012
One thing is certain, if we wait for OTT to come knocking on<br />
our door, we will definitely miss the party because ultimately our role in the<br />
future of the webscape is ours to lose.<br />
of the day, employees are paid either in cash or via direct<br />
deposit into a bank. From there, the existing facilities<br />
allow them to purchase a load card and, if lucky, carry an<br />
additional balance that can be used for other transactions.<br />
Mobile money will be quickly followed by VoIP and<br />
IP messaging tie-ups as operators are forced to replace<br />
their traditional voice and SMS revenue with more youthfriendly<br />
versions sporting emoticons and SNS integration.<br />
In fact, the first carrier-based IP communication apps will<br />
effectively be the first IP apps to support carrier billing.<br />
Assuming we can get full alignment from the content<br />
sources, IPTV seems like the next logical step for several<br />
reasons. First, video takes up more Internet traffic than<br />
water does the human body. Second, because video is so<br />
dominant, it is the driving force behind the data surge.<br />
The problem now is that the OTT technologies available<br />
today are predominantly based in the U.S. and thus have<br />
more direct access to a lot of the content owners. They<br />
also are better at finding that sweet spot between adsupported<br />
applications and customer-billed applications.<br />
This June, Netflix celebrated the milestone of serving one<br />
billion hours of video in just one month, spread across a<br />
user base of 26 million people, making it the largest VOD<br />
provider in the U.S. Combine this success with Apple’s<br />
recent expansion into 12 new markets in Asia and it won’t<br />
be long before the Netflix market is extended globally.<br />
Let the right ones in<br />
Finally, all those other OTT-developed apps that seem<br />
like fads or are otherwise hard to fit into a partnership<br />
model can still be leveraged in a professionally-managed<br />
carrier development environment. This sandbox is where<br />
the carrier API is exposed and young people looking to test<br />
their coding prowess can create a developers’ account and,<br />
after passing a qualification process, make an application<br />
available to that carrier’s subscriber base. While care must<br />
be taken in how telcos open these APIs, it is easy to see the<br />
immediate benefit of Farmville integration with a carrier’s<br />
billing API so that players can purchase their way onto the<br />
leaderboard.<br />
However, a problem here is that OTT players have been<br />
groomed through sites such as Mashable and Kickstarter<br />
to think that their only mission is to get VC funding and<br />
ultimately exit via IPO or buyout. Perhaps telcos can allocate<br />
some funds to an autonomous business development arm<br />
that could fill this function, choosing several applications<br />
to invest in, with the exit strategy being real sustainable<br />
revenue. Granted, this may not be as cool as a milliondollar<br />
payday, but a steadily growing monthly income that<br />
is ten times more likely to be realized is a great alternative,<br />
provided telcos can hold an OTT player’s attention long<br />
enough to enunciate the reasoning here.<br />
Clearly there is an opportunity for OTT providers to<br />
work with telcos, even if the other guys don’t realize it yet.<br />
Much like a good coder managing the CPU and memory<br />
resources of a computer, a good web application developer<br />
should similarly ensure that the infrastructure is capable<br />
of delivering the service with the intended customer<br />
experience. Change will require a concerted effort on<br />
our part to educate the OTT players on what they don’t<br />
know and make them aware that the applications they<br />
are creating do impact the underlying infrastructure, and<br />
an alignment between telco priorities and OTT business<br />
cases. More importantly, it will require a high level of<br />
autonomy for business development teams, to enable<br />
them to properly motivate OTT players and ultimately<br />
capitalize on the dynamic nature of the application-based<br />
Internet. One thing is certain, if we wait for OTT to come<br />
knocking on our door, we will definitely miss the party<br />
because ultimately our role in the future of the webscape is<br />
ours to lose.<br />
Editor: Jason jason.patterson@huawei.com<br />
NOV 2012<br />
34
Winners<br />
TalkTalk<br />
provides online protection for families<br />
HomeSafe, the U.K.’s first and only network-level broadband security service provided by fixed broadband<br />
operator TalkTalk, is a parental control and anti-malware solution for all devices that use the home Internet<br />
connection – including PCs, tablets, smartphones, and even game consoles – putting parents in charge of<br />
what their children can visit online and when.<br />
By Michael Huang<br />
Editor: Jason jason.patterson@huawei.com<br />
35<br />
NOV 2012
Giving parents peace of mind<br />
As the father of two young netizens in<br />
Great Britain, Mr. Smith knows that<br />
broadband is an integral part of family<br />
life but he does have concerns about his<br />
children being online. After they come home from<br />
school, they promptly start browsing the Internet<br />
and talking to friends online rather than doing<br />
their homework. He is also worried about them<br />
stumbling across inappropriate content. To ensure<br />
that their homework gets done, he even resorted to<br />
turning off the modem, but this also hindered his<br />
own Internet access.<br />
Mr. Smith needs a flexible parental control<br />
service, one that can filter out the online junk food<br />
and ensure his children’s studies. He also needs<br />
it to be user-friendly, as he doesn’t have the time<br />
or the inclination to deal with a lot of jargon and<br />
configuration. A security suite would also be nice,<br />
one that can weed out viruses, malware, and other<br />
intrusions.<br />
TalkTalk: The family operator<br />
Since its founding in 2002, TalkTalk has steadily<br />
grown into the U.K.’s leading value provider of<br />
fixed broadband and voice telephony services,<br />
serving some five million customers. TalkTalk offers<br />
a clear and simple tariff structure, competitive<br />
prices, and innovative services. Examples include its<br />
£6.50 unlimited broadband & calls a month bundle<br />
and its superfast (up to 76Mbps) fiber broadband.<br />
TalkTalk’s customers are primarily households,<br />
where children are likely to be sharing the same<br />
Internet connection as their parents, and a lot of<br />
that time is unsupervised.<br />
TalkTalk’s own Life Online study has shown that<br />
about half of children’s time online is unsupervised,<br />
and at least 14% of children aged 6-10 have<br />
encountered adult content on the Internet. Web<br />
attacks at home are also increasing. According to<br />
a Symantec report, the spam level in the U.K. in<br />
June 2012 was 67.2% and 1 in 210 emails was<br />
identified as malicious.<br />
TalkTalk identified a need in the marketplace<br />
for a simple, effective security service for multiple<br />
device categories. They already offered a PC-based<br />
solution, provided by a third-party supplier and<br />
marketed as the Super Safe Boost, but given that<br />
the average TalkTalk home connects seven unique<br />
devices to the Internet a month, they realized that<br />
their customers needed a new kind of solution.<br />
TalkTalk decided therefore to offer an alternative<br />
– a network-level security solution that simplifies<br />
operation & management (O&M) expenses while<br />
enhancing functionality. In late 2009, TalkTalk<br />
started its own research on safer broadband<br />
NOV 2012<br />
36
Winners<br />
<strong>Huawei</strong> SIG facilitates the launch of value-added<br />
services such as parental control. Through the operator’s<br />
portal, parents can subscribe to or cancel service plans,<br />
and configure their online policy at will.<br />
connections, and its efforts in this area have not<br />
ceased. In early 2010, TalkTalk partnered with<br />
<strong>Huawei</strong> to jointly develop a solution that provides<br />
safer broadband access for homes, with parental<br />
control as the key element.<br />
<strong>Huawei</strong> SIG<br />
<strong>Huawei</strong> provided its Service Intelligence<br />
Gateway (SIG) solution, which can be deployed<br />
on a fixed (between the broadband remote access<br />
server and international gateway), mobile (at the<br />
Gi, Pi, or ASN-GW egress), or converged network.<br />
Its architecture is simple, consisting of a front<br />
end, back end, upgrade center, and cloud security<br />
center.<br />
The front end is responsible for analysis,<br />
reporting, and policy enforcement, while the back<br />
end manages SIG systems, users, and policies.<br />
The back end automatically receives the latest<br />
knowledge base and URL classification statistics<br />
from the upgrade center and cloud security center,<br />
without service interruption, while providing<br />
SOAP (Simple Object Access Protocol) interfaces to<br />
enable/disable services and configure policies. Based<br />
on its interfaces, service providers can develop selfservice<br />
portals by themselves or through <strong>Huawei</strong>,<br />
while operators can use the SIG to deliver AoS (Alert<br />
of Security) messages to customers.<br />
With its carrier-class router platform, <strong>Huawei</strong><br />
SIG performance is assured through its ASIC<br />
and multi-core network processors – service<br />
throughput can reach 120Gbps on fixed networks<br />
and 100Gbps for mobile. Reliability is another<br />
key feature, thanks to redundancy in SIG’s design<br />
for boards and key components, both on the front<br />
end and the back. The system is also equipped with<br />
professional-grade bypass devices, to protect links<br />
against anomalies. During upgrade, operators need<br />
only replace the interface or service board (overhaul<br />
is unnecessary).<br />
<strong>Huawei</strong>’s SIG solution facilitates the launch<br />
of value-added services such as parental control.<br />
Through the operator’s portal, parents can subscribe<br />
to or cancel their service plans, and enable/disable/<br />
configure their online policy at will. Parents can<br />
also restrict access to online gaming and social<br />
networking sites at specified times of the day,<br />
helping to keep distractions during homework time<br />
to a more manageable level.<br />
SIG boasts a library of over 65 million URLs<br />
in 43 categories, which operators can customize as<br />
required. Based on an industry-leading malicious<br />
code detection technology, SIG can filter malicious<br />
URLs dynamically, keeping viruses and other<br />
malware out of the home. If something is detected,<br />
the system can send alerts to users.<br />
Great feedback<br />
In May 2011, TalkTalk officially launched its<br />
HomeSafe solution (which integrates <strong>Huawei</strong>’s SIG<br />
37<br />
NOV 2012
platform). TalkTalk provides three primary parental<br />
control/network security functions through<br />
HomeSafe. The first is dubbed Kids Safe, and allows<br />
parents to choose websites for blocking by category,<br />
including those devoted to dating, drugs, alcohol,<br />
file sharing, gambling, gaming, and pornography;<br />
blocked websites can also be self-defined by filling<br />
the web address in a box. Homework Time allows<br />
parents to set a timeframe during which children<br />
cannot access online gaming and social networking,<br />
while the last function, Virus Alerts, blocks access<br />
to infectious websites. All of these services are<br />
free of charge to TalkTalk customers. TalkTalk<br />
additionally offers a higher-level PC-based security<br />
service, dubbed Super Safe Boost, that is offered for<br />
£2 per month or free of charge as part of a highertier<br />
package.<br />
As a satisfied TalkTalk customer, Mr. Smith can<br />
now log into his account and switch on HomeSafe<br />
in about a minute. He can then be confident that<br />
his children now have far fewer opportunities for<br />
online distraction, while other family members<br />
are able to benefit from improved safety online<br />
through various measures.<br />
Since its launch in May 2011, HomeSafe has<br />
enjoyed positive feedback from children’s charities,<br />
parents groups, and the British government. For<br />
example, Justine Roberts, co-founder of the U.K.-<br />
based Mumsnet, and the U.K. Children’s Minister<br />
Tim Loughton have expressed their appreciation<br />
of HomeSafe. Tim Loughton praised TalkTalk for<br />
leading the way when it comes to Internet safety.<br />
Liska, a popular parent blogger, has noted that “this<br />
really is a great product and is a breath of fresh air,<br />
to what is otherwise a very confusing industry for<br />
customers: that of online security.”<br />
HomeSafe is now a key differentiator in<br />
TalkTalk’s service lineup, having made the operator<br />
the first in Great Britain to provide network-level<br />
broadband security as well as the first to support<br />
government efforts to provide what the U.K.<br />
government calls active choice where customers are<br />
prompted to set up parental controls when signing<br />
up for broadband. It has also helped the operator<br />
win two industry awards for innovation and<br />
network security.<br />
With a claim to being the U.K.’s safest<br />
broadband connection, HomeSafe is gaining<br />
increased popularity among customers. Eight weeks<br />
after launch, it attracted over 100,000 customers<br />
and since TalkTalk introduced this active choice,<br />
roughly one in three new customers has chosen to<br />
use the parental controls. Less than a year and half<br />
after launch (May 9, 2012), HomeSafe users hit<br />
over 500,000, and this number is expected to reach<br />
one million by March 2013.<br />
In Q4 2011, TalkTalk CTO Clive Dorsman<br />
granted the operator’s Smooth Delivery Award to<br />
the <strong>Huawei</strong> SIG team, recognizing the vendor’s<br />
efforts and professionalism in delivering the key<br />
element in HomeSafe. As a partner, <strong>Huawei</strong> is<br />
ready to strengthen its cooperation with TalkTalk<br />
in broadband security, as well as other fields of<br />
mutual interest.<br />
NOV 2012<br />
38
Winners<br />
China Mobile<br />
energizes the LTE TDD market<br />
China Mobile has been a champion of LTE TDD in recent years, through efforts such as the LTE TDD service<br />
debut at the World Expo in Shanghai, its trial network in Hangzhou city, and the world’s first demonstration of<br />
seamless roaming between LTE TDD and FDD technologies, all of which will lead to a 13-city pilot rollout.<br />
By Ma Yanzhe<br />
Editor: Xu Shenglan xushenglan@huawei.com<br />
39<br />
NOV 2012
A<br />
t the 2012 Hangzhou TDD Night<br />
ceremony on June 18, 2012, senior<br />
management from China Mobile<br />
Zhejiang and China Mobile Hong<br />
Kong successfully demonstrated roaming between<br />
the former’s LTE TDD network in Hangzhou and<br />
the latter’s LTE FDD network. Onsite services<br />
included video calling and HD VOD, featuring<br />
real-time interaction through clear, smooth images.<br />
Li Zhengmao, Executive Vice President of China<br />
Mobile, stated his approval of this demonstration,<br />
as it proves that customers can enjoy the benefits of<br />
both LTE technologies from a single device, while<br />
also proving that LTE TDD does not play second<br />
fiddle in the LTE market.<br />
<strong>Huawei</strong> has made significant contributions to<br />
China Mobile’s LTE TDD achievements, as the<br />
vendor’s Mobile Wi-Fi (Mi-Fi) device, the first of<br />
its type in the industry to support LTE TDD and<br />
LTE FDD inter-frequency roaming, was employed<br />
for the aforementioned demonstration, which also<br />
utilized a <strong>Huawei</strong>-constructed LTE TDD network.<br />
Vigorous LTE TDD growth<br />
Since 2009, China Mobile has been actively<br />
engaged in the application of LTE TDD. At<br />
global industry summits such as the Mobile<br />
World Congress (MWC), Next-generation Mobile<br />
Networks (NGMN) Conference, ITU Exhibition,<br />
and Mobile Asia Expo, China Mobile has offered<br />
LTE TDD services for a variety of scenarios.<br />
At the 2010 World Expo, China Mobile’s LTE<br />
TDD network dazzled international audiences with<br />
the Chinese debuts of such LTE services as mobile<br />
HD conferencing, mobile HD video surveillance,<br />
shoot-and-transmit functionality, and HD VOD.<br />
As China Mobile’s strategic partner, <strong>Huawei</strong><br />
played a crucial role at the expo through the first<br />
large-scale field demonstration of LTE TDD in<br />
China. <strong>Huawei</strong> independently built an LTE TDD<br />
network for the Expo Park, covering 5.28 square<br />
kilometers, which comprised 17 LTE TDD base<br />
stations, making for an intelligent, converged<br />
Evolved Packet Core (EPC) network. Moreover,<br />
<strong>Huawei</strong> was the first in the industry to launch<br />
LTE TDD Customer Premise Equipment (CPE)<br />
devices, all of which were employed at the expo.<br />
<strong>Huawei</strong>’s competence at the expo helped<br />
convince China Mobile to let the vendor act as<br />
the exclusive supplier of LTE TDD equipment for<br />
the 16th Asian Games, which Guangzhou hosted<br />
in November 2010, where <strong>Huawei</strong> provided a full<br />
NOV 2012<br />
40
Winners<br />
These successful trials have greatly boosted industry<br />
and government confidence in LTE TDD. China Mobile will<br />
soon expand its pilot networks to 13 cities, with more than<br />
20,000 base stations expected to be built.<br />
E2E solution, including base stations, an EPC<br />
network, a Packet Transport Network (PTN)<br />
bearer network, and various service platforms for<br />
telepresence and video surveillance. This solution<br />
proved to be a hit, both to industry experts and<br />
the general public, as China Mobile would again<br />
select <strong>Huawei</strong> for the 2011 Universiade games,<br />
held in Shenzhen in August of that year. Thanks<br />
to the stability of the network in place, a live HD<br />
broadcast of the torch relay was available, as were a<br />
variety of other HD features.<br />
LTE TDD commercial trials<br />
In 2011, China Mobile officially kicked off<br />
large-scale testing of LTE TDD. It deployed trial<br />
networks in six cities, including Hangzhou and<br />
Shenzhen, and they have been well received by<br />
users, operators, the government, and the industry<br />
at large.<br />
In March 2012, Hangzhou’s B1 bus line became<br />
the first to support LTE TDD, giving its fortunate<br />
passengers free online surfing through Wi-Fi.<br />
Presently, LTE TDD traffic on this line reaches<br />
500GB a day, proving the service a major success<br />
with some of China’s long suffering bus passengers.<br />
In the meantime, the China Mobile Hangzhou<br />
service center has started to provide LTE TDD<br />
subscriptions to the public, where users receive a<br />
compatible device after paying a deposit, enabling<br />
them to enjoy the LTE experience throughout the<br />
city’s roughly 200 square kilometers.<br />
On May 16, 2012, one day before World<br />
Telecommunications and Information Society<br />
Day, China Mobile Shenzhen (Shenzhen Mobile)<br />
initiated LTE TDD operations at the Kingkey 100<br />
tower in Shenzhen’s Luohu district. By deploying<br />
and optimizing 102 distributed indoor systems in<br />
an area of three square kilometers, <strong>Huawei</strong> assisted<br />
Shenzhen Mobile in covering a large number of the<br />
area’s major commercial buildings and residential<br />
premises, facilitating a superior user experience for<br />
its upscale users.<br />
For the outdoors, 100 base stations were<br />
deployed at 50 sites, with station spacing averaging<br />
269 meters (80-meter minimum). This coverage<br />
area spans official buildings, commercial centers,<br />
financial hubs, train stations, and ports, and should<br />
pave the way for smooth LTE network applications<br />
such as HD video surveillance and VOD.<br />
LTE TDD takes off<br />
These successful trials have greatly boosted<br />
industry and government confidence in LTE TDD.<br />
China Mobile will soon expand its pilot networks<br />
to 13 cities, with more than 20,000 base stations<br />
expected to be built.<br />
Xi Guohua, Chairman of China Mobile, has<br />
explicitly noted that China Mobile attaches great<br />
importance to the effective utilization of TDD<br />
spectrum resources. By leveraging the advantages of<br />
TDD technology in mobile Internet application,<br />
the operator will promote the integration of LTE<br />
41<br />
NOV 2012
TDD and LTE FDD, and develop integrated solutions.<br />
China Mobile is also striving to build a global industry<br />
chain so that economies of scale are achieved. Mr. Xi<br />
predicts that with the concerted efforts of the Global TD-<br />
LTE Initiative (GTI) operators, the global number of LTE<br />
TDD base stations will exceed 500,000 in 2014, covering<br />
some two billion people.<br />
However, government support is pivotal to local LTE<br />
TDD development. Top officials at China’s Ministry of<br />
Industry and Information Technology (MIIT) have spoken<br />
highly of China Mobile’s achievements in LTE TDD<br />
testing and have resolved to step up nationwide efforts in<br />
this area. The government is also working to improve the<br />
frequency distribution scheme and industry chain, while<br />
earmarking more capital for LTE TDD deployment.<br />
As a vendor, <strong>Huawei</strong> is also confident of LTE TDD’s<br />
prospects. Wang Tao, President of <strong>Huawei</strong>’s Wireless<br />
Network Business Unit, has asserted the company’s<br />
strategic determination in LTE TDD development.<br />
<strong>Huawei</strong> has been making consistent investments in<br />
this area, especially in its R&D, while its E2E solutions<br />
(which encompass systems, chips, and devices) have<br />
been highly recognized by the industry.<br />
In terms of systems, <strong>Huawei</strong> SingleRAN supports<br />
platform sharing for both flavors of LTE, as well as GSM<br />
and UMTS. It has also introduced the industry’s first<br />
multi-mode dongle for LTE TDD, LTD FDD, UMTS,<br />
GSM, and CDMA, as well as the first multi-mode devices,<br />
namely CPE and Mi-Fi. The latter in particular has<br />
distinguished itself with its roaming functions, enabling a<br />
quantum leap in LTE integration and convenience, and a<br />
brighter future for LTE TDD.<br />
By leveraging the advantages of TDD technology in mobile<br />
Internet application, the operator will promote the integration of<br />
LTE TDD and LTE FDD. The operator is also striving to build a global<br />
industry chain so that economies of scale are achieved.<br />
NOV 2012<br />
42
Winners<br />
SoftBank’s<br />
LTE TDD network impresses in Japan<br />
At ten months after its launch, the SoftBank group’s LTE TDD/AXGP (LTE TDD) network attracted more than<br />
260,000 customers, and this number will continue to grow, thanks to its expanding network coverage and the<br />
introduction of multi-mode data cards.<br />
By Yu Xiangyang<br />
Editor: Michael huangzhuojian@huawei.com<br />
43<br />
NOV 2012
Tokyo Shiodome building, headquarters of SoftBank<br />
Mobile data traffic is expected to<br />
increase eighteen fold over the next<br />
five years, representing a compound<br />
annual growth rate (CAGR) of 78%.<br />
Yoshioki Chika, CTO of Wireless City Planning,<br />
a member of the SoftBank group (SoftBank),<br />
has stated that the data traffic over the Japanese<br />
operator’s mobile network has been doubling each<br />
year and will increase 32 fold over the same period<br />
(65% of its ARPU stemmed from data services in<br />
2011, among the highest percentages in the world).<br />
This increase in data services is creating a need<br />
for spectrum, which LTE TDD can meet for the<br />
next decade, not only in Japan but globally as<br />
well. At the Mobile World Congress 2012, China<br />
Mobile confirmed that it will have over 20,000<br />
LTE TDD base stations in operation by the end<br />
of 2012. In India, <strong>Bharti</strong> <strong>Airtel</strong> is launching LTE<br />
services in four telecom circles. In Japan, SoftBank’s<br />
LTE TDD service went online commercially in<br />
November 2011, and the network is expected to<br />
cover 100% of the population of 12 major cities by<br />
2013, making the operator a model for others to<br />
follow.<br />
Consolidated leadership<br />
After SoftBank’s 2006 acquisition of Vodafone<br />
Japan, its mobile customers doubled over the next<br />
five years to 30 million by November 2011. In<br />
2010, its 3G penetration passed 100%, far ahead<br />
of the global average of 22%. In the same year,<br />
SoftBank took aboard WILLCOM, a Personal<br />
Handy-phone System (PHS) operator with TDD<br />
spectrum & site resources, and promptly founded<br />
Wireless City Planning (WCP) by reorganizing<br />
the team that had been developing the eXtended<br />
Global Platform (XGP) network at WILLCOM.<br />
WCP took over the development of XGP and<br />
upgraded it to Advanced eXtended Global Platform<br />
(AXGP), which conforms to the LTE TDD<br />
standard.<br />
With WILLCOM now under the SoftBank<br />
flag, the operator had the site resources and the<br />
spectrum to move ahead. WCP then assigned<br />
WILLCOM’s 1.9GHz spectrum to its PHS service,<br />
with 1.5GHz/2.1GHz assigned to 3G and 2.6GHz<br />
(30MHz) assigned to LTE TDD.<br />
According to SoftBank CEO Masayoshi<br />
Son, LTE TDD has two unique advantages –<br />
asymmetric uplink/downlink and abundant<br />
spectrum resources, which he believes can fully<br />
meet the needs of mobile Internet service and<br />
enhance user experience for the foreseeable future.<br />
Tokyo: As crowded as it gets<br />
NOV 2012<br />
44
Winners<br />
Before its commercial launch, SoftBank’s network performance<br />
tests were quite impressive. The average network entry and<br />
inter-cell handover success rate exceeded 98.8% and 99%,<br />
respectively, while the packet loss rate was below 0.25%.<br />
Tokyo, Nagoya, and Osaka have been<br />
the starting points for SoftBank’s LTE TDD<br />
network. As a megacity in one of the world’s<br />
most demanding mobile markets, Tokyo’s wireless<br />
communications environment is both extremely<br />
dense and extremely complex. Many of its residents<br />
are accustomed to web surfing, online video, and<br />
online gaming on the go; all require high network<br />
throughput and access success rates.<br />
SoftBank plans to deploy 50 to 100 base stations<br />
per square kilometer, with a site spacing of 100<br />
to 150 meters in certain areas of Tokyo. In a city<br />
where a hotel room might be scarcely bigger than<br />
a telephone booth, the CAPEX involved in this<br />
sort of density will give the bean counters sleepless<br />
nights. However, if uptake is sufficient, all will be<br />
forgiven, and SoftBank will be able to replicate this<br />
process in other regions.<br />
SoftBank grouped its coverage scenarios into<br />
three classes – dense urban areas that will use<br />
distributed base stations with four transmitters<br />
and four receivers (4T4R) for seamless coverage;<br />
hotspots such as shopping malls and other centers<br />
of gravity that may adopt picoRRU for network<br />
access; and suburban and rural areas that need not<br />
require such elaborate planning.<br />
Joint innovations<br />
Joint innovation efforts have been taking place<br />
between Softbank and <strong>Huawei</strong> with the aim of<br />
simplifying network deployment; Single Frequency<br />
Network (SFN) and Intelligent Baseband Array<br />
(IBA) have been among the fruit.<br />
The latter is scalable (supporting the interaction<br />
of dozens of BBUs), coordinated (enhancing base<br />
station-cell coordination, reducing interference,<br />
and increasing the gain for both transmission<br />
& reception), and reliable (supporting mutual<br />
backup of baseband data), leading to spectrum<br />
efficiency enhancements of up to 30%, while<br />
the SFN technology effectively inhibits inter-cell<br />
interference; users can enjoy 38.7% faster Internet<br />
speed at cell edges.<br />
User experience has also been enhanced thanks<br />
to the 4T4R and beamforming technologies, with<br />
the latter changing array directionality to ensure<br />
optimal signaling. SoftBank has also used antenna<br />
sharing and reused all of its existing 1.9GHz PHS<br />
sites to accelerate network deployment.<br />
Before its commercial launch, SoftBank’s<br />
network performance tests were quite impressive.<br />
The average network entry and inter-cell handover<br />
success rate exceeded 98.8% and 99%, respectively,<br />
while the packet loss rate was below 0.25%. In the<br />
Ginza district of Tokyo (that neon-lit shopping<br />
district that finds its way into pretty much every<br />
travelogue or Hollywood movie set in Tokyo), an<br />
45<br />
NOV 2012
interior user could enjoy downlink/uplink rates of<br />
11Mbps/5Mbps, respectively; while 60Mbps could<br />
be enjoyed near a window and up to 58Mbps<br />
(30Mbps average) could be achieved outdoors. All<br />
these figures greatly strengthened the operator’s<br />
confidence.<br />
Enhanced terminals &<br />
services<br />
On February 24, 2012, SoftBank officially<br />
launched LTE TDD services in its three target<br />
cities. The operator evaluated the UMTS and LTE<br />
TDD networks at Ginza, and the results were<br />
impressive; LTE TDD delivered nearly ten times<br />
the speed (34.13Mbps) that UMTS did, and<br />
service handover between LTE TDD base stations<br />
was smooth.<br />
Mr. Son was also further convinced that LTE<br />
TDD could help achieve Softbank’s strategic goal<br />
and its rollout pace could be sped up.<br />
SoftBank had enjoyed exclusive distributions<br />
rights for the iPhone until October 2011, but<br />
as a lot of users around the world found out the<br />
hard way, the iPhone did not yet support LTE.<br />
SoftBank’s first commercial LTE TDD Mobile<br />
Wi-Fi terminal uses the category-3 chipset, which<br />
delivers a downlink rate of 76Mbps and uplink rate<br />
of 10Mbps, while supporting simultaneous LTE<br />
TDD access for up to ten Wi-Fi devices. In May<br />
2012, the operator launched another LTE terminal<br />
based on the category-4 chipset. In addition,<br />
SoftBank launched a number of LTE TDD<br />
smartphones in Q3 of this year.<br />
SoftBank has used an LTE TDD tariff plan<br />
similar to its 3G plan – users can enjoy faster<br />
services for almost the same pricing, with a<br />
monthly package running JPY3,880 (USD50).<br />
Each user’s data cap is 5GB, with the network<br />
speed reduced to 128Kbps until the next billing<br />
month if it’s exceeded. If users want their regular<br />
speed back, they must pay roughly USD33 per<br />
2GB of traffic.<br />
In its marketing efforts, SoftBank has<br />
highlighted its network as the country’s fastest,<br />
with high-speed Internet access available anywhere,<br />
anytime; ads have been sent out through customer<br />
service centers, subway screens, broadcast TV,<br />
and other channels; the operator also markets<br />
through service centers, handset outlets, and home<br />
appliance stores.<br />
Thanks to the expanded terminal and network<br />
coverage, SoftBank attracted 260,000 LTE<br />
customers by August 2012, and more can be<br />
expected as the operator strengthens its leadership<br />
in the mobile Internet landscape.<br />
NOV 2012<br />
46
Winners<br />
China Telecom<br />
takes the drive out of testing in Hangzhou<br />
When it comes to network optimization, China Telecom Hangzhou (Hangzhou Telecom) has moved beyond the<br />
usual game of drive tests and KPIs. Through call record analysis, the operator has significantly enhanced its<br />
ability to sniff out latent issues and elusive flaws in its network coverage, leading to a troubleshooting process<br />
that is far less troublesome.<br />
By Zhu Xiaoming, China Telecom Hangzhou<br />
Editor: Joyce Fan joyce.fan@huawei.com<br />
47<br />
NOV 2012
The old way doesn’t cut it<br />
anymore<br />
The traditional network optimization<br />
process is a tedious ordeal where<br />
highly-skilled, highly-paid engineers<br />
spend their time analyzing dry key<br />
performance indicators (KPIs), riding around in<br />
vans for hours on end, and scouring the nooks<br />
& crannies of buildings and tunnels for network<br />
bugs, as if they were high-tech exterminators.<br />
The situation was no different at China Telecom<br />
Hangzhou (Hangzhou Telecom), a branch of the<br />
Chinese incumbent located in Zhejiang’s provincial<br />
capital. The operator found that the majority of<br />
its O&M man hours and resources were being<br />
expended on routine optimization tasks, with<br />
O&M engineers optimizing based on the usual<br />
KPIs such as dropped call rates and other forms of<br />
traffic analysis, as well as user complaints.<br />
KPI analysis for network elements (NEs) is<br />
usually based on their signaling point statistics,<br />
which neglect QoE and QoS management. If 200<br />
out of 100,000 users experience a call drop, the<br />
call drop rate is 0.2%. If you are an optimization<br />
engineer, this might be cause for a bonus, but if<br />
you are one of those unlucky users, this might be<br />
cause for a complaint, and it may not prove terribly<br />
helpful anyway unless you have an uncommon<br />
knack for precisely remembering time, place, and<br />
circumstance.<br />
Assuming enough complaints come in,<br />
as opposed to the mere silence of a lapsed<br />
subscription, a drive test (DT) may follow, but<br />
such methods are anecdotal. They also can’t<br />
simulate the conditions that occurred at the time<br />
a call failed (the signaling storm generated by a<br />
rock concert can’t be recreated at 10:00 a.m. on a<br />
Tuesday). What’s worse, more time is wasted if an<br />
engineer has to leave the van to scan for an indoor<br />
fault, which may or may not be detected thanks to<br />
IP network opacity and traffic dynamism.<br />
One particular Hangzhou Telecom user filed a<br />
complaint regarding poor signaling and frequent<br />
call drops at a certain housing development.<br />
During the initial DT, the project team could<br />
not contact the user and therefore could not get<br />
access to the fault site itself. Not surprisingly, the<br />
problem was not found. Therefore, the team had<br />
to make a second trip to the user’s front door.<br />
After complicated entry formalities, the team got<br />
into the user’s residence and found the problem<br />
to be coverage overlap coupled with some missing<br />
neighbors on site. The team therefore adjusted the<br />
antenna and optimized the neighboring cells –<br />
problem solved.<br />
However, not every single-point optimization is<br />
consequence-free. To strengthen coverage for Road<br />
X near West Lake, a famous local tourist attraction,<br />
Hangzhou Telecom adjusted one sector’s azimuth<br />
for a nearby base station (BTS) and got good DT<br />
results for Road X, but this led to complaints of<br />
call drops on Road Y.<br />
Both of these examples illustrate how time<br />
and resources can be wasted during network<br />
optimization, and what’s worse, the typical gear<br />
that a field engineer will have with him cannot<br />
anticipate ripple effects of the sort seen in the West<br />
Lake example. A network simulator could be used,<br />
but Hangzhou Telecom wouldn’t have been able<br />
to get its hands on one at the time this story began<br />
(2010). Even today, one would be bulky, expensive,<br />
and possibly inconvenient if it is not from the same<br />
vendor that provides your field tools.<br />
In December 2010, Hangzhou Telecom<br />
decided to add a little more scientific rigor to the<br />
optimization process. The operator joined forces<br />
with <strong>Huawei</strong> to analyze its reams of call data and<br />
lump its fault incidents into certain categories,<br />
which were then modeled and incorporated into its<br />
optimization equipment<br />
NOV 2012<br />
48
Winners<br />
To strengthen coverage for Road X, Hangzhou Telecom<br />
adjusted one sector’s azimuth and got good drive test<br />
results for Road X, but this led to complaints of<br />
call drops on Road Y.<br />
The devil is in the details<br />
For certain areas, call drop rates can be very<br />
high, with the worst offenders even reaching<br />
100%. For such dead zones, a large number of<br />
fault records will accumulate, especially when you<br />
multiply them by the sheer number of base stations<br />
needed to cover a city of eight million such as<br />
Hangzhou.<br />
The data in question stems from call detail<br />
records (CDRs), which contain a wealth of<br />
information to be sure, but finding the exact data<br />
that you want for a certain BTS is real “needle in a<br />
haystack” territory, and even if you do find it, you<br />
still need to know how to sew.<br />
In light of the characteristics of CDMA<br />
networking, Hangzhou Telecom’s project team<br />
opted to use time difference of arrival (TDOA)<br />
coupled with user behavior analysis as its methods<br />
for CDR-based fault location, with the latter being<br />
utilized because user responses to faults do show<br />
certain patterns – after a call is dropped, users<br />
will normally redial, and CDRs before or after a<br />
dropped call can in fact be used to help pin down a<br />
fault location.<br />
For Hangzhou Telecom, a certain user<br />
complained about a call drop inside an office<br />
building. CDR analysis before and after the drop<br />
indicated that the redial connected to indoor cells<br />
that were different from the outdoor cells that<br />
had carried the original call. It seemed that the<br />
outdoor cells did not recognize the indoor cells as<br />
neighbors, a problem that is easily remedied across<br />
Hangzhou’s numerous towers and high-rises.<br />
As the numbers of successful diagnoses<br />
increased, certain models were formulated for<br />
such problems (missing neighbors, coverage<br />
overlap, pilot pollution, etc.) over the course of<br />
three months. This involved network optimization<br />
experts pooling records from different CDR levels<br />
(BSC, cell, and user) and categorizing call drop<br />
patterns accordingly. This data was mapped out<br />
so that engineers could get a clear picture of what<br />
measures to take for optimization of both neighbor<br />
and coverage cells.<br />
These models eventually became algorithms<br />
that could effectively label each dropped call with<br />
reasonable accuracy (improving the experience).<br />
They were eventually incorporated into Hangzhou’s<br />
Telecom’s network optimization gear, with KPIs<br />
improving soon after.<br />
Statistical significance<br />
With its customized optimization equipment<br />
in place, Hangzhou Telecom’s troubleshooting<br />
efficiency and efficacy have both improved. And<br />
what’s more, faults that were once stealthy can<br />
now be detected. Thanks to the aforementioned<br />
map, which presents all call drops at a certain site,<br />
engineers can figure out the proportion of each<br />
type of call drop, find out the root causes, and<br />
resolve them comprehensively & effectively. For<br />
example, these methods can guide antenna feeder<br />
adjustment based on overall coverage status for a<br />
49<br />
NOV 2012
certain site, thus eliminating the aforementioned<br />
problems that can ripple out from single-point<br />
optimizations.<br />
A certain Hangzhou Telecom BSC had a high<br />
call drop rate that could only be reduced to 0.34%<br />
using conventional optimization methods. The<br />
operator’s customized gear helped elucidate some<br />
previously hidden faults, leading to an improved<br />
drop rate of 0.21%. These elusive problems often<br />
relate to rivers or high-traffic areas such as tourist<br />
attractions or towers, and Hangzhou has plenty<br />
of all three. They might take the form of coverage<br />
overlaps, which can be difficult to detect using<br />
conventional tools; CDR analysis is a big help<br />
here. Moreover, Hangzhou Telecom engineers can<br />
now extend their analysis to the cellular level, thus<br />
enabling a degree of fine-tuning never before<br />
enjoyed.<br />
Such precision enables the operator to nip<br />
potential problems in the bud, before they<br />
affect VIP users. Furthermore, the time needed<br />
to sort out the problem children (spots with a<br />
0.5% drop rate or above) is now reduced from<br />
two days to one hour, while the DT workload<br />
has dropped 70%. Hangzhou Telecom’s overall<br />
call drop rate has also declined from 0.24% to<br />
0.17%, raising the operator’s overall ranking<br />
from the No. 10 to No. 3 among China Telecom<br />
Zhejiang subsidiaries and providing a model for<br />
other branches to follow in a climate that is only<br />
getting more competitive as China modernizes<br />
and urbanizes.<br />
Hangzhou Telecom’s overall call drop rate has<br />
declined from 0.24% to 0.17%, raising the operator’s<br />
overall ranking from the No. 10 to No. 3 among<br />
China Telecom Zhejiang subsidiaries.<br />
NOV 2012<br />
50
Winners<br />
STC<br />
brings three generations under one roof<br />
Thanks to the seamless integration of LTE TDD with its GSM/UMTS networks, the Saudi Telecom Company (STC)<br />
has substantially enhanced both its mobile broadband services and overall network efficiency, keeping the<br />
operator and its customers on the cutting edge.<br />
By Li Pengcheng<br />
Editor: Xu Shenglan xushenglan@huawei.com<br />
51<br />
NOV 2012
Saudi Arabia has a total population of 28<br />
million, with urbanites (who have an<br />
average age of 25) accounting for over<br />
80%, and this percentage is still rising.<br />
With living standards also on the way up (GDP per<br />
capita reached USD24,000 in 2011), this young<br />
consumer base is becoming increasingly demanding<br />
when it comes to communication – a challenge<br />
that extends to STC as well as its competitors.<br />
High market penetration<br />
According to the Saudi Communications and<br />
Information Technology Commission (CITC), at<br />
the end of 2010, Saudi Arabia had more than 51.6<br />
million mobile subscriptions, marking a 186%<br />
mobile penetration rate, with heavy throughput per<br />
user and long busy hours to boot. In 2011, Saudi<br />
Arabia had more than 10 million MBB subscribers,<br />
with users of pure data services accounting for nearly<br />
70%. Streaming video, P2P download, and Facebook<br />
have been the three most sought-after mobile Internet<br />
services, but all are both time- and resource-intensive,<br />
putting heavy strain on the network. Quality and<br />
stability are a must. A CITC survey in 2010 indicated<br />
that 48% of households were inclined to accelerate<br />
their Internet speed, but this is not the end of the<br />
story. Operators will need to do more than simply<br />
offer more bandwidth if they wish to improve<br />
network accessibility, video buffer times, and P2P<br />
download speeds, as users demand.<br />
Forward with LTE TDD<br />
STC provides mobile voice, MBB, fixed voice,<br />
fixed broadband and value-added services to more<br />
than 160 million users across ten countries from<br />
the Middle East to Southeast Asia.<br />
Legacy networks in Saudi Arabia could fully<br />
satisfy STC’s 24 million domestic subscribers thirst<br />
for voice, SMS and Internet connection, but they<br />
lagged behind in terms of mobile Internet. A 2010<br />
CITC survey showed that customer satisfaction<br />
with MBB in Saudi Arabia was rated at 2.72<br />
(on a 5-point scale), with 70% of churned users<br />
yearning for higher Internet speeds and packages.<br />
With video services exploding across the Internet,<br />
LTE deployment had become a must for STC<br />
to complement the existing UMTS network. As<br />
to spectrum resources, the operator had 15MHz<br />
at 900MHz, 17MHz at 1800MHz, 15MHz at<br />
2.1GHz, and two blocks of 40MHz and 12MHz<br />
at 2.3GHz at its disposal; the 40MHz continuous<br />
block proved ideal for LTE TDD deployment,<br />
enabling a network of great capability and efficiency.<br />
LTE TDD development in<br />
tandem with GSM/UMTS<br />
STC plans to combine the LTE TDD with<br />
HSPA+ to accommodate higher throughput<br />
demand, with its GSM infrastructure continuing in<br />
NOV 2012<br />
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Winners<br />
With its technologies seamlessly integrated, STC has<br />
dramatically improved its MBB services, giving credibility<br />
to the name it chose for its MBB brand, QuickNet.<br />
service for a long time to come and developing in<br />
conjunction with LTE TDD, with all technologies<br />
upgraded as needed.<br />
After evaluating the relevant solutions in terms<br />
of overall technical strength, network performance,<br />
comprehensiveness, and ease of evolution, STC<br />
adopted <strong>Huawei</strong>’s SingleRAN solution for eastern,<br />
central and northern regions such as Dammam, Al<br />
Qasim, and Ha’il. With this solution, the operator<br />
was able to update its GSM hardware and upgrade<br />
its legacy UMTS network to HSPA+ (with four 3G<br />
carriers), all during LTE TDD installation.<br />
Thanks to SingleRAN, STC can share sites,<br />
cabinets, and transmission resources among all three<br />
networks, while GSM+UMTS or GSM+LTE TDD<br />
networks can also share baseband units (BBUs),<br />
reducing the site space, transmission resources<br />
consumed, power consumption, and CAPEX &<br />
OPEX.<br />
If STC ever deploys LTE FDD on 1.8GHz or<br />
2.6GHz, only a software upgrade is needed for the<br />
BBUs, as GSM, UMTS, LTE TDD, and LTE FDD<br />
(if added) can share sites, cabinets, BBUs (where<br />
UMTS, LTE TDD, and LTE FDD networks share<br />
the main control boards), and transmission resources.<br />
In other words, the new LTE FDD network only<br />
needs a new radio frequency (RF) module, without<br />
additional hardware in the baseband, making for<br />
greatly improved deployment cost and efficiency.<br />
As for the LTE TDD RF elements, <strong>Huawei</strong>’s<br />
Radio Remote Unit (RRU) features four<br />
transmitters and four receivers (4T4R) and multicarrier<br />
architecture, which combine to ameliorate<br />
both network capacity and coverage considerably.<br />
Currently, STC only uses 20MHz of spectrum for<br />
its LTE TDD network, yet the maximum singlesector<br />
downlink rate exceeds 100Mbps. As users and<br />
traffic grow, the remaining spectrum can be utilized<br />
as needed for multi-carrier base stations, which will<br />
elevate network capacity by 50%.<br />
In conjunction with SingleRAN, <strong>Huawei</strong>’s core<br />
network solution SingleEPC allows STC customers<br />
to access GSM, UMTS and LTE TDD networks<br />
simultaneously, reducing investment in the core<br />
network while improving network interoperability,<br />
while <strong>Huawei</strong> SingleOSS enables STC to effectively<br />
manage its GSM, UMTS, and LTE TDD networks<br />
concurrently, making for greatly reduced labor<br />
costs and improved overall upgrade efficiency.<br />
Improving user experiences<br />
through data distribution<br />
STC’s LTE TDD network is currently focused on<br />
high-traffic zones, while its UMTS covers urban and<br />
some suburban areas, handling low-volume data and<br />
voice services. Its GSM network covers the entire country<br />
and provides voice and a few low-volume data services<br />
through GPRS and EDGE. This coverage enables those<br />
with multi-mode Wi-Fi devices or USB data cards to<br />
switch between network technologies as needed.<br />
Since its commercial launch in September 2011,<br />
STC has been aggressively expanding its LTE network<br />
to cover all major cities and high-traffic zones. With its<br />
technologies seamlessly integrated, STC has dramatically<br />
improved its MBB services, giving credibility to the<br />
name it chose for its MBB brand, QuickNet.<br />
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54