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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 />

52


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 />

53<br />

NOV 2012


NOV 2012<br />

54

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