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Fig. 1 Worldwide fixed network size datafixed operators’ revenues are slidingobviously in recent years. We, hereat ZTE, believe that the traditionalPSTN network is not as competitiveas the mobile and VoIP networks are,and this can be attributed to the closedarchitecture of PSTN that is incapableof creating diversified services forusers.Migrating towards NGNHave fixed networks already reachedceiling performance? What’s the futuredevelopment of fixed networks? Fixednetwork operators are looking totransformations.According to the need hierarchytheory of Maslow, the human beingwill move to high level needs after thelower level needs are met. That’s thesame in the communications industry.Voice communications is a basicservice that has already got highstandards and operators need to offerservices beyond basic voice (e.g.data, broadband multimedia services)when the world economy is growingfast. In other words, we not onlyneed the communications technology(CT) to suit our basic communicationneeds, but also information andcommunication technologies (ICT)that prompt changes in our lifestyles.As next generation networks(NGNs) technologies are maturing,n e w t e c h n o l o g i e s s u c h a s I PMultimedia Subsystem (IMS), andFixed Mobile Convergence (FMC)emerge one after another, newopportunities are created for newservices offering and operators areimpelled to accelerate the pace oftransformation.What is the direction of fixednetwork transformation? Experienceshows that this transformationwill require operators to redefinethemselves as something greater thanmerely basic voice service providers tomore of integrated information servicesproviders. This involves transformationin marketing strategy, operationalmode, organization structure, andnetwork architecture.T h e n e t w o r k a r c h i t e c t u r etransformation requires a fundamentalchange in the way PSTN services areprovided. As we know, although thePSTN technologies are very mature,the PSTN network has poor serviceprovision capability as it is a closednetwork. Since it is difficult to provideattractive and value-added services,operators should establish an opennetwork architecture to facilitatedeployment of new services.NGN is the development trend offixed networks which allow operatorsto create an architecture based on CT-IT convergence. Softswitch is thebest solution for the optimization andreconstruction of the PSTN networkat present. NGN introducing theSoftswitch technology has emerged atthe forefront of the telecoms industryand is proven mature by a host ofsuccessful deployments. It has thefollowing advantages in its technology:● Open and hierarchical architectureNGN is divided into multiple layersZTE TECHNOLOGIES 9