FEB 2008

ISSUE 38

FEB 2008

ISSUE 38

Mobile IP surges across Europe

LTE, are you ready? A winning PTN strategy The fourth generation BTS
Pointing the wind vanes for BTSs

GREEN BTS

gives fresh breath

The wind vane for global mobile market

2007 witnessed the continuous growth of 3G networks. GSM networks still have much vitality in the next five years, and emerging technologies such as WiMAX and LTE have been highlighted in commercial application agendas. Rapid changes in mobile network modes and upgrades in technologies have raised a challenge to operators: How to seamlessly integrate various network modes and technologies? The accelerated growth of mobile broadband video services - coupled with an ever greater user base and a higher average Minutes of Usage - is mounting increasing pressure on mobile operators in terms of network expansion and operation. To win out, mobile operators not only need to control the construction and operation costs in an end-to-end manner, but also need to take up the social responsibility of environmental protection, energy savings and emission reductions. Huawei has been focusing on the pressures and challenges faced by operators, and has predominated the four technical directions of Green, Convergence, Evolution and Broadband. Huawei has proposed its Green Site solution that integrates a range of innovative technologies to reduce the number of cabinets required by traditional BTSs from 10 to 1. Meanwhile, the BTS capacity is increased from 12 to 36/72 carriers, and the system power consumption is halved to 800W. Embodying a win-win situation, the solution delivers both environmental and economic benefits for operators. The need for seamless integration of different network modes and technologies has inspired Huaweis fourth generation BTS platform. Breaking the system barrier, the integrated platform supports various network modes such as UMTS, CDMA, WCDMA and LTE. Software upgrades facilitate changes between different modes, and this greatly simplifies operators cost structures in a way that protects long-term investment by ensuring smooth future evolution. In terms of mobile broadband, Huawei has taken a leading step in IP transformation research and raised the IP BSS/RAN solution. This solution provides an end-to-end IPbased architecture, including kernels, interfaces, and service guarantee mechanisms, which enables operators to substantially reduce transmission cost, improve QoS, and expand bandwidth and throughput, thus allowing flexible mobile broadband service deployment and smooth service adaptation. Now Huawei has become a key strategic partner for mobile operators worldwide. Successful cooperation with Vodafone Spain sparked Huaweis selection as the supplier for Vodafones subsidiaries in Greece, Romania and Hungary. Telefonica/O2 deployed Huaweis dual-mode (2G/3G) BTSs to optimize its GSM networks in southern Germany, and was further awarded its HSPA contracts for Brazil, Mexico, Argentina and Chile. France Telecom selected Huawei to construct wireless networks for its operations in Belgium, Romania, Poland and the Greater Cairo region of Egypts Mobinil. In Australia, Optus selected Huawei as its sole contractor for the worlds largest UMTS 900 network. In India, Reliance partnered with Huawei in building its GSM network of 300 thousand carriers. In Chicago, Huawei successfully deployed Americas first All-IP CDMA network. The new wind vane for the global mobile market has come to fruition. Huawei and its innovative mobile solutions represented by the fourth generation BTS will help operators stride into the new mobile era.

Sponsor: Editorial Department of Huawei COMMUNICATE, Huawei Technologies Co., Ltd. Consultants: Hu Houkun, Xu Zhijun, Xu Wenwei Yu Chengdong, Tao Jingwen, Huang Chaowen, Hou Jinlong, Li Shenzhuo, Yu Xiangping Editor-in -Chief: Gao Xianrui (sally@huawei.com) Editors: Pan Tao, Liu Zhonglin, Xu Peng, Xue Hua Huang Zhuojian, Chen Yuhong Zhou Huajiao, Yao Haifei, Zhou Shumin Contributors: Peng Bo, Luo Gang, Zhang Wenlin Qiao Xiaoping, Chen Haijun, Qiu Heng Liu Peng, Chen Wei, Shu Chaohai Yang Xiaozhong, Qiang Jun, Xiong Lening He Jie, Hou Yingzhen, Jiang Tao, Han Jiayin Li Changzhu, Xu Xueming, Wu Shang Zhu Nianguo, Wang Yudan, Zhao Yuan Tel: +86 755 28780808

Fax: +86 755 28356180 Address: A10, Huawei Industrial Base, Bantian, Longgang, Shenzhen, China 518129 E-mail: HWtech@huawei.com Publication registration No.: Yue B No.10148
The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions. Copyright 2008 Huawei Technologies Co., Ltd. All Rights Reserved. No part of this issue may be reproduced or transmitted in any form or by any means without prior written consent of Huawei Technologies Co., Ltd.

Yu Chengdong President of Wireless Network Huawei Technologies Co., Ltd.

Whats inside:

P.17
Global Digest
01 Vodafone Australia plans national

P.45
The fourth generation BTS
Pointing the wind vanes for BTSs
By Xu Peizhong

Main Topic
17

mobile broadband network

02 Telefnica/O2 lower European data

roaming tariffs
19 03 Huawei launches solution

2G BTS draws on 3G technologies

By Pang Yingwen

to cut base station power consumption

Experts Forum
05

23

Green BTS gives fresh breath

By Wu Wujun

WiMAX leads a new wireless broadband life

By Li Xiaojuan

25

Cover Story
09

What can wideband RF bring for GSM?

By Feng Baoshun Wideband RF technology had been put into commercial use in WCDMA and CDMA systems. The application of this technology to the GSM system will deliver with it a breakthrough in traditional mobile networks, which will greatly assist GSM operators to lower TCO and achieve a low cost for rapid expansion. Moreover, it will offer smooth future evolution potential.

Mobile IP surges across Europe

What decisions, plans and choices have Vodafone, Orange and Telecom Italia made with the mobile IP wave surging across Europe? By Liu Zhen

Lets COMMUNICATE beyond technology and share understandings of the latest industry trends, successful operational cases, leading technologies and more. Based on in-depth analysis of the matters that lie close to your heart, we will help you stay on top in the competitive telecom industry.

P.15
Media Insight
27 Harvesting in the US, India and China 39

P.46
Interview

P.23

Huawei makes it large in CDMA

By Li Chuantao

The Ferrari of Telecoms: TI racing towards record prosperity

By Wang Yudan

42

Vitality of mobile broadband

By John Lee

How to Operate
30

International roaming leads everywhere

By Xiao Qian As the demand for lower tariffs for international roaming becomes more pervasive, major mobile operators are beginning to research methods globally for providing the lowest international roaming tariffs, while delivering services that are similar to those of a home network. This, of course, is under the precondition that operators business revenue remains ensured.

Solution
45

WiMAX maximizes your potential

By Liu Wang

47

Moving towards multi-system integration

By Liu Ping

Leading Edge
33

Intelligent heart of mobile Internet

By Chi Zhentao & Zhang Baoguang

50

VoIP over HSPA: running in the fast lane

By Li Xuanbo

35

Seeking for a winning PTN strategy

By Bian Mingang

53

LTE, are you ready?

By Xu Yan

GLOBAL DIGEST
Events
Vodafone Australia plans national mobile broadband network AT&T launches 3G mobile broadband in Baltimore
AT&T announced that it had expanded its 3G mobile broadband network throughout Baltimore and the surrounding suburbs, thanks to technology upgrades at 250 cell sites in the area.Customers from Philadelphia to Northern Virginia now have the option to access the Internet over AT&Ts 3G wireless data network, which acts as a gateway to a variety of feature rich web content, including streaming video and music downloads.

T-Mobile and 3 UK create Britains largest 3G network

3 UK and T-Mobile UK have signed an agreement to combine their 3G Vodafone Australia said it plans to roll out a national high-speed mobile broadband network that will provide coverage to 95% of Australia's population by the end of 2008. In a statement, Vodafone Australia said it plans a significant mobile broadband network expansion and upgrade to provide high-speed packet access, or HSPA, to customers, enabling faster download and upload speeds. The upgrade will also improve network coverage and capacity for standard 2G and 3G voice calls, it said. Vodafone Australia plans to complete its hardware and software vendor selection process early in 2008 and has already commenced work on its core network in preparation for the upgrade. Vodafone will maintain normal mobile network services during the rollout period. It said it will continue its 3G joint-venture with Optus in major metropolitan areas. However, Vodafone Australia will undertake its own upgrade to its 900 MHz and 2100 MHz mobile network in all other parts of the country. access networks in a ground-breaking collaboration that will lead to almost complete population coverage for 3G services across Britain by the end of 2008 with significant fill in and improvement to dense urban inbuilding coverage in 2009. As the world's largest known active 3G network sharing agreement, this will significantly increase both operators' 3G network quality and coverage, accelerate the provision of new high-speed mobile broadband services and deliver substantial cost savings as well as environmental benefits.

First Wi-Fi / 3G transport network in UK

Strathclyde Partnership for Transport (SPT) and network operator Arqiva have announced a ground breaking deal to provide a combined cellular and Wi-Fi network across the 15 Glasgow Subway stations. Under the agreement, Glasgow will become the first UK city to provide passengers with combined 2G and 3G cellular mobile and Wi-Fi access. Arqiva Wireless Solutions division will begin deployment of the network later this month, with initial testing at Buchanan Street Subway station. The new network will enable Subway customers to access the Internet and mobile phones at stations, and provide public access to Wi-Fi services. This unique Wi-Fi project is part of the massive programme of Subway modernisation and efficiencies being undertaken by SPT, which sees great potential in using Wi-Fi technology to migrate some of its existing applications and services, including ticketing, onto the network.

Japan: Softbank and KDDI lead in wireless subscriber growth

2007, for an end-of-year total of 29.19 million subscribers. Market leader, NTT DoCoMo, trailed its smaller rivals, adding just 121,500 new subscribers, for a nationwide total of 53.15 million. 27,900 of DoCoMos new Japans third largest mobile phone operator, Softbank, led competitors in terms of subscriber growth in December 2007, adding 210,800 new subscribers over the course of the month, and bringing its total subscriber base to 17.61 million. Softbank was followed by KDDI, which posted net subscriber additions of 138,600 in December, subscribers signed on to the socalled 2in1 service, which allows subscribers to have two phone numbers and email addresses for a flat monthly fee. Meanwhile, EMOBILE, a newcomer to Japans wireless market, added 83,600 new subscribers in the final month of 2007, giving it a subscriber base of 205,900.

1 FEB 2008 . ISSUE 38

Data
Telefnica/O2 lower European data roaming tariffs
Telefnica has announced cuts in its data roaming tariffs of up to 40% within Europe. The company says that consumers in Spain, UK, Germany, Czech Republic and Ireland will benefit from cuts of more than 40% in data roaming prices, while the cost of sending a text message home from anywhere in the European Union falls to a maximum of EUR0.32+ taxes. For business travelers, a new roaming bundle provides worldwide access to data at a price equivalent to EUR1 per megabyte (MB) - subject to a minimum spend of EUR50 per month. O2 businesses and Movistar in Spain will implement a range of new data roaming tariffs aimed at consumers traveling within Europe ahead of this year's summer holiday season in July. These will include both significant reductions in the per-MB price and the introduction of timebased charging principles, such as daily rates. The resultant savings for customers will be anything between 42% and 80% over November 2007 prices. Recognising the everincreasing popularity of text messaging as a way of staying in touch, both prepaid and postpaid consumers will, starting from early February, pay no more than EUR0.32 to send an SMS from any EU country - representing a reduction of up to 49% on current prices. The new rate will apply to all customers by April. It will cost nothing to receive a text. Telefnica also intends to increase the transparency of data roaming prices and reduce the possibility of bill shock by combining its simple tariff schemes with a range of usage monitoring tools. From March 2008, mobile laptop users will be able to monitor their data usage in real time via their Connection Manager s o f t w a re , w h i l e a l l ro a m i n g customers will automatically receive a text message containing SMS, data and voice pricing information. In addition, O 2 and Movistar customers will not incur penalties if their phone selects a non-preferred network - removing any potential concerns about hidden charges.

80.74 million
By the end of 3Q2007, 80.74 million of China Mobile's customers were using MMS, according to the operator. This represented an increase of 16.8% from 2Q2007 and brought the share of its customers using MMS to 23%, according to Informa Telecoms & Media. To t a l M M S s e n t b y C h i n a Mobile's customers in the first three quarters in 2007 amounted to 9 billion messages. In 3Q2007 alone, approximately 18 billion MMS were sent in the Asia-Pacific region as a whole, according to Informa's World Cellular Data Metrics. Valueadded services, such as MMS, ringback tones and WAP continue to be the main drivers of China Mobile's revenue growth.

210 million
The Chinese government said its Internet population has soared to 210 million people, putting it on track to surpass the US online community this year to become the world's largest. The official China Internet Network Information Center, also known as CNNIC, said the online population grew 53%, from 137 million reported at the same time last year. According to the government's Xinhua News Agency, China is only 5 million behind the US, a figure consistent with some American estimates. China still lags the US in many respects, however. Xinhua placed China's online penetration rate at 16%, the point Americans were at in the mid-1990s.

80%
In 3Q2007, 80% of mobile handset models on sale in Japan were WCDMA models. The remainder were mostly CDMA models (18%) sold by the country's second largest operator KDDI, while just 2% of models on sale were PDC handsets. The share of WCDMA handset models on sale has increased 70% year-on-year from 47% of the models on sale in 3Q2006, as Softbank has strongly expanded its WCDMA portfolio and market-leader NTT DoCoMo has also continued to promote the technology under its FOMA brand.

6 billion Polish telecom incumbent begins testing FTTH broadband technology

Polands incumbent telephone provider, Telekomunikacja Polska SA, is ready to start testing its fiber-tothe-home broadband technology, after rolling it out to all residents of a new apartment building in the Wola district of Warsaw. All of the 265 apartments are eligible to participate in the pilot, which will last until the end of November. Residents will be able to browse the Internet at speeds of up to 50Mbps through a Livebox FTTH modem, as well as access ondemand television, video rental, and Internet telephony services, at a cost of just PLN49 (USD20) per month. Vodafone has announced plans to spend USD2 billion a year over the next three years expanding its Indian network coverage and improving service quality. The company would be launching a range of new services, but did not elaborate on what and when. Speaking during a visit by the UK Prime Minister to India, Vodafone's CEO Arun Sarin said "We shall be investing USD2 billion annually for the next three years on our Indian operations... We have set a target of reaching 100 million subscriber base from the current level of 40 million." He also ruled out any talk of an IPO for the Indian company in the short term saying that he wanted to build up the company operations before any possibilities would be explored in that direction. The funding for the USD6 billion of expenditure would come from company resources.

FEB 2008 . ISSUE 38

GLOBAL DIGEST
Huawei News
Vodafone UK partners with Huawei to launch their smallest HSUPA USB Stick
Newbury, 11 January 2008 Vodafone UK and Huawei have launched the next generation of USB device, the Vodafone Mobile Broadband USB Modem Stick or E172. Boasting High Speed Uplink Packet Access (HSUPA) technologies and innovative design, it will be available to Vodafone UK's customers from today. The E172 enables uplink speeds of up to 2Mbps and download rates of 7.2 Mbps. Within Vodafone's HSPA network, the device will facilitate fast Internet browsing, instant access and the uninterrupted ability both to upload and download data. Combining cutting edge technologies with sleek design, Vodafone's customers can look forward to enjoying highspeed wireless access, both at home and on the go. The plugand-play featured devices are compatible with Windows (Vista and XP) and Mac OSX, whether run on a PC, laptop or handheld device. The Vodafone E172 is the world's slimmest and smallest HSUPA USB stick, and was designed with the elegance of a sleek white piano in mind. Highly portable, is perfect for mobile users, and builtin features ensure that the USB's cap cannot be dropped or lost. "For personal use or remote working, customers buy Vodafone f o r p re d i c t a b i l i t y, u n r i v a l l e d speeds, reliability and ease of use. Our customers are seeing real benefits from the ease of use offered by our USB plug and go device, coupled with our increased network speeds. As a result, they have increased their usage sixfold as they use the service to work more productively or surf the Internet", commented Kyle Whitehill, Vodafone UK, Enterprise Director. "Vodafone was the first to improve download speeds with HSDPA (High Speed Downlink Packet Access), the first to increase upload speeds with HSUPA, and now we're pushing the boundaries of usability even further with a groundbreaking compact design." "We are looking forward to launching the E172 in collaboration with Vodafone and are confident that customers will be delighted with the mobile lifestyle they will enable," said Steven Lau, director of Huawei European Terminal Department. "Consumers expect mobile service providers to demonstrate constant innovation and Huawei is very pleased to be working with Vodafone to fulfill these expectations."

Huawei attains No.1 position in global IP DSLAM market

Shenzhen, China, 14 January 2008 Huawei announced that according to a report published in the third quarter of 2007 by the leading industry consulting firm Gartner, that it is currently in the NO. 1 position in the global IP DSLAM Market, with a market share of 31.5%, and that its DSL market share is continuing to rise. According to a Gartner, report, published on 18 December 2007, entitled "Market Share: DSLAM Equipment, Worldwide, 3Q2007" by Gauri Pavate, IP DSLAM port shipments are rapidly increasing and in 3Q2007, accounted for 77.3% of all DSLAM shipments. Huawei holds the No.1 position in the global IP DSLAM market and has increased its market share in Europe and the Middle East and Africa (EMEA). By the end of the third quarter of 2007, Huawei had shipped more than 70 million DSL ports to more than 90 countries including the UK, France, Germany, Singapore, Thailand, Brazil, South Africa and China. Huawei IP DSLAM is fully compliant with the TR-101 standard and enables carriers to provide excellent broadband networks with its powerful bandwidth handling capabilities and abundant service features.

Huawei launches solution to help operators cut base station power consumption
China, 18 January 2008 Huawei has launched a new solution that can reduce base station power consumption by up to 60%. The Green Sites Solution, uses optimized hardware design, an innovative power amplifier and power consumption management to help operators realize a high level of power saving. Reducing the power consumption of base stations has emerged as one of the key concerns of telecom operators around the globe. Huawei's Green Sites Solution adopts leading power amplifier technologies, including DPD and A-Doherty, that boost the power efficiency of base stations by 45%, reducing the overall power consumption of the facilities. It also uses a distributed architecture that allows 20W base stations to have the same output frequency coverage as traditional 40W base stations and high-efficiency power amplifier technologies that make convection cooling, direct cooling, and intelligent cooling technology in a base station possible. This reduces the need for air-conditioners that cause noise pollution and helps to reduce a base station's electricity consumption to less than 500W. Huawei's Green Sites Solution is also able to be integrated with environmentally friendly energy sources such as wind, solar power, and methane. " H ua w ei h a s a l w a y s b e e n committed to looking after the environment," commented Mr Yu Chengdong, president of Huawei's Wireless Product Line. "As one of the leading telecom equipment and solutions providers, we are putting this goal into practice by designing environmental friendly products."

3 FEB 2008 . ISSUE 38

Huawei to deploy first commercial mobile WiMAX network in Central Asia

Dushanbe, Tajikistan, 25 December 2007 Huawei has been selected by Babilon-T, the largest telecommunication operator in Tajikistan, to deploy the Central Asia's first WiMAX commercial network. Under the terms of agreement, Huawei will provide an end-to-end mobile WiMAX network, including distributed base station, Wireless Access Service Node-Gateway, Network Management Equipment and Terminals. The network will cover the four major areas of Tajikistan, including its capital Dushanbe. Rollout will start immediately and is expected to launch during the first quarter of 2008. To meet the increasing demand for broadband, and taking into account the mountainous terrain in Tajikistan, Babilon-T is adopting WiMAX technology to enable its subscribers to realize wireless broadband access. Upon completion of the network BabilonT's subscribers will be able to enjoy high-speed Internet access, watch mobile TV, use VoIP at home, in the company, or even on the street by using Customer Premise Equipment (CPE) or a PC card provided by Huawei. "Babilon-T is looking forward to implement wireless broadband access infrastructure nationally," said Fayzullaev B, General Director of Babilon-T. "By introducing mobile WiMAX technology, we will be able to provide our customers all over Tajikistan with broadband access to the Internet." "This new technology will undoubtedly bring new market opportunities for Babilon-T," commented Mr Wang Kexiang, President of Huawei CIS Region.

Huawei showcases innovative mobile solutions at Mobility World Congress

Hong Kong, 14 December 2007 Huawei showcased its innovative wireless solutions at the "Mobility World Congress" in Hong Kong from 3 to 7 December 2007. As senior sponsor of the congress, held by the CDMA Development Group (CDG) and other industry organizations Huawei reinforced its leadership in taking mobile networks to IP through CDMA2000, WiMAX, UMTS/HSPA, GSM demonstrations. Huawei used the Mobility World Congress to exhibit its mobile solutions with integrated 4G mobile technologies and green energy sources such as solar/wind/ firedamp energy that can help operators reduce their equipment consumption and reduce the discharge of carbon dioxide. Huawei also showcased its FMC technologies such as its IP-based CDMA solutions which adopt next generation con-platform and multimode integration solutions that provide operators with the means to implement ultra-mobile broadband networks while reducing their costs. "Broadband mobile networks of the future ought to be based on IP in order to simplify networks and enhance their capabilities in terms of transmission, diversified service expansion, and intelligent maintenance," said Mr Zhao Ming, vice president of Huawei Wireless marketing dept. during the congress. "The major factors driving mobile networks towards IP derive from the need for operators to reduce their TCO, the abundance of IP-based convergent commercial applications, and the smooth future evolution into LTE/UMB. All of Huawei's IP-based solutions will help operators grow in the IP era."

TransTelecom selects Huawei to deploy commercial WiMAX network in Europe

Sofia, Bulgaria, 3 January 2008 Huawei has been selected by TransTelecom, a telecom operator in Bulgaria, to deploy a commercial WiMAX network, covering central business districts and hot spots in the country's major cities, including its capital, Sofia, and Varna, Bulgaria's largest harbor city. According to the contract, Huawei will supply an endto-end WiMAX solution working o n 3 . 5 G H z f re q u e n c y b a n d , including terminals, as well as a major upgrade of the TransTelecom central exchange equipment for the operation of a fully mobile WiMAX network in 2008. In 2006, TransTelecom deployed a 16d-based WiMAX network to meet the country's increasing broadband needs, and the operator has chosen Huawei to deliver an upgraded 16e-based network. Huawei's 16e-based WiMAX solution integrates the most advanced technologies such as multiple-input multiple-output (MIMO) and orthogonal frequency division multiple access (OFDMA), which features high bandwidth, wide area coverage, large capacity, as well as providing better mobility. Huawei's new base stations, enable TransTelecom to quickly roll out innovative new services to its customers, while reducing Total Cost of Ownership (TCO). "We are delighted to choose Huawei as our WiMAX equipment supplier," FEB 2008 . ISSUE 38 said Mr John Munnery, Chairman of TransTelecom. "Extensive tests of this new technology have surpassed all our expectations. In particular, we witnessed Huawei demonstrate one of the first handovers of traffic from one base station to another in Europe. Huawei has exhibited total commitment to the project throughout our selection process, and has proven them to be one of the leaders in this fast-developing technology. What's more, we are also impressed with Huawei's localized engineering and delivery capability."

EXPERTS FORUM
WiMAX leads a new wireless broadband life

leads a new wireless broadband life

By Li Xiaojuan

WiMAX

5 FEB 2008 . ISSUE 38

Huawei Technologies

The 3rd Global WiMAX Summit authorized by the WiMAX Forum was successfully held in Beijing, in September 2007. In attendance were a range of high level industry experts from carriers, vendors, government officials, and research institutes. Discussion focused on the global WiMAX deployment and its convergence with 3G, and the search for methods of combining industry chain strengths to effectively guarantee the global popularization of WiMAX.

s we know, WiMAX possesses unique superiority in a range of ways such as remote transmission, high-speed broadband access and multimedia communication. WiMAX has entered the application phase, and has already been successfully commercialized by some mainstream operators. In China, 3G is drawing nearer, and the mass testing and deployment of WiMAX has gradually begun. At the 3rd Global WiMAX Summit, three experts: Mo Shakouri (Vice President of the global WiMAX Forum), Hyun-Pyo Kim (Director of the WiMAX Unit, KT) and Cai Liqun (Ex-President of Huawei WiMAX Product Line, is now in charge of Core Network Product Line of Huawei Technologies Co., Ltd.) offered their views.

WiMAX looking ahead to prosperity

Mo Shakouri: The outcome of our research in the U.S. indicates that wireless broadband will emerge as consumers largest communications expenditure, and this reflects a considerable shift necessitating much investment. The WiMAX industr y offers significant opportunities as current technology and networks have not yet been fully applied. We know that in some emerging and developed countries broadband forms a precursor for increased GDP, economic activity and social value - this is why WiMAX possesses such enormous global development potential.

Cai Liqun: WiMAX has already entered a critical phase. In addition to traditional operators, there are many new operators focusing on WiMAX, such as ISPs. This fully reflects the industrys expectation regarding All-IP based mobile broadband applications. Currently, most operators select wireless access to underpin WiMAX breakthrough, and our mission is to help them meet existing market demands for wireless broadband access so as to realize the WiMAX global strategy, accelerate the industrys development, and lay a solid foundation for future mobile WiMAX development. Mo Shakouri: WiMAX is a supplementary rather than competitive technology. Though it differs from the Internet in terms of its business model, WiMAX is rich in value. It can meet users demands for wireless broadband technology, and the number of users is certain to grow at a rapid rate. This achievement has arisen through unstinting efforts made over the past 5 years. At present, many operators are investing heavily and orienting themselves to the future, and this trend is anticipated in the WiMAX industry. New capabilities and functions are being added to cellular networks, one of which is WiMAX, not least because of its extra broadband and Internet-based capabilities. We therefore believe that both cellular networks and WiMAX will grow rapidly over the long term to reach maturity. Of course, compared with cellular networks, WiMAX is still in its infancy.

Over the next 5 years, however, WiMAX wireless Internet technology is set to take its seat as a significant contributor to global broadband interconnection. Were committed to assist operators fully utilize WiMAX to increase profit streams, while allowing users better broadband and content access. Users who demand more bandwidth are not just concerned with bandwidth itself, but with the derived subsequent content.

Win-win industrial chain cooperation

Hyun-Pyo Kim: KT Wibro has enjoyed considerable success in terms of WiMAX operations. Our first advantage is that we have a range of equipment available for end users, including terminals. Secondly, weve priced our products at an affordable level, for example, the promotional price set for 1G capacity is only USD10. Thirdly, we offer the best quality - compared with existing 3G networks, mobile WiMAX offers the highest uplink and downlink speeds. In addition, we benefit from an open IP-based platform to support converged services, Internet access, and mobile Triple-play services. After receiving our WiMAX license in January 2005, we began deploying the network in some areas before embarking on wide urban coverage including 17 universities, the suburban campuses for which were joined under the scheme. This was complemented by large-scale
FEB 2008 . ISSUE 38

EXPERTS FORUM

EXPERTS FORUM

Dr. Mo Shakouri: Board Director and Vice President of Marketing with the WiMAX Forum. He has 22 years of experience in wireless system, microwave and fiber optic networks. In addition to his position with the WiMAX Forum, Shakouri is on the board of directors for the Wireless Communications Association and was IEEE MTT-SVC 2004 chairman.

promotional and marketing activities prior to its real commercialization in April 2007. Since then weve completed implementation, our network continues to grow, and will soon be supported by the performance enhancing MIMO. Cai Liqun: To equipment vendors, helping operators achieve fast and lowcost WiMAX networking is an important factor that requires consideration. We know a common problem that operators face is website acquisition and, in view of WiMAXs high bandwidth and band utilization, operators are mostly concerned with issues such as identifying ways of reducing the number of WiMAX websites and how to utilize existing 2G & 3G resources effectively to minimize auxiliary investment. The WiMAX standard is developing and progressing at a steady rate, which requires us to provide a costeffective platform of products capable of supporting a smooth evolution that protects operators current investments.

The most essential factor for deciding the maturity of the WiMAX industry and its future growth pace should be its required large scale, diversification, and low cost terminals.
The convergent solution is a key concern for both mobile and fixed operators. Integrating WiMAX with existing NGN and ADSL networks must be realized to offer a wired and wireless convergent network solution, so as to lay a solid

foundation for the future strategy of FMC deployment. Achieving this goal is primarily a concern for fixed network operators. Mobile operators, on the other hand, are mostly concerned with giving end users low-cost multimedia service experiences anywhere, anytime by combining WiMAX with 2G & 3G networks to maximize the interworking of their respective advantages. Therefore, our convergent solution must aim at providing a unified service experience for end users through unified services and platforms, unified core networks, unified billing systems and authentication management organization - this would maximally reduce costs for existing operators in a manner that adheres to business convergence. Mo Shakouri: A crucial issue regarding WiMAX is the authentication of its standard. The first authentication laboratory was set up in Spain in August 2005 and the second in South Korea. Were also establishing laboratories successively in the

7 FEB 2008 . ISSUE 38

Huawei Technologies

Hyun-Pyo Kim: Director of Technology Cooperation Division at WiBro (Mobile WiMAX) Business Unit in KT Corporation. His major responsibilities include WiBro standardization in TTA, IEEE and WiMAX Forum and related technology cooperation activities in WiMAX area. Currently he is a board member of the WiMAX Forum.

US, mainland China, and Taiwan, and were planning a laboratory for Japan. So far, some of the products have already passed authentication, and notebook computer will do so soon. Much more equipment will be authenticated in the year 2009. In WiMAX authentication, equipment represents the ripest portion among all, and surely is a most important portion. Cai Liqun: The most essential factor for deciding the maturity of the WiMAX industry and its future growth pace should be its required large scale, diversification, and low cost terminals. The demands of different operators vary depending on the stage of WiMAX development and, since our applications mainly rely on fixed and nomadic equipment, the requirements for CPE and PC cards presently dominate. However, mobile WiMAX development will see mobile and multi-mode terminals integrate WiMAX with existing 2G & 3G networks, and these will inherit the mainstream position. In the future, WiMAX, IT and electronic product convergence will bring greater convenience and enjoyment for users. Of course, such preconditions must occur on a suitably wide scale and be underpinned by low cost, diversified terminals and cutting-edge chipsets.

Hyun-Pyo Kim: There are various terminal devices that people currently use based on specific market demands, but multi-mode equipment is set to dominate the market. Some products are already available such as typical mobile devices including Portable Media Player (PMP) with embedded portable PC. Additionally, other electronic equipment such as some digital cameras already integrates WiMAX.

Latest progress across the globe

Mo Shakouri: Global WiMAX development presents a gratifying situation. First if we consider spectrum features, the main WiMAX spectrum allocations include 2.3-2.7GHz and 3.5GHz. The WiMAX network spectrum already covers 2.7 billion people, which is hugely exciting. We must strive to obtain more bandwidth as in some areas operators still share a bandwidth of only 10MB. We hope to help them increase bandwidth and thus accelerate business growth by establishing a viable WiMAX mechanism with an enormous customer base. This will facilitate the efficient operation of the WiMAX value chain. It is well known that Sprint-Nextel has developed many exemplary services and KT provides another model example, having deployed WiMAX, and covering 2,500,000 users. This is only the start as WiMAX is being currently developed in a host of countries including Pakistan, Chile, Russia and Brazil. Cai Liqun: Since 2006, Huawei has been strengthening WiMAX expansion in the context of a global market platform. So far weve already communicated with over 100 operators across the globe to discuss the progress regarding the WiMAX standard, as well as the technology, construction and operations. Weve already established 30 trial laboratories in the Asia-Pacific, the Middle-East, North-Africa, Europe, Russia, the US, and Latin America, and were currently constructing 8 WiMAX commercial systems. Editor: Zhou Huajiao zhouhj@huawei.com
FEB 2008 . ISSUE 38

COVER STORY
Mobile IP surges across Europe

surges across Europe

9 FEB 2008 . ISSUE 38

Mobile IP

Huawei Technologies

The new telecom era has unleashed a tide of IP that is advancing across the world through mobile networks. Numerous operators have already started implementing their IP-based network strategies as part of the inevitable trend. Europe represents a region replete with both GSM and WCDMA technologies. It boasts the worlds most developed mobile communications market with a handset penetration rate approaching 110%, and is home to many leading operators including Vodafone, Orange, and Telecom Italia. What decisions, plans and choices have these operators made with the mobile IP wave surging across Europe?
By Liu Zhen
FEB 2008 . ISSUE 38

10

COVER STORY
Mobile IP surges across Europe

ata services are forming a greater proportion of operators overall income in the rapidly expanding mobile communications market. However, demands on mobile networks are increasingly stringent due to the evolving diversity and complexity that characterizes services such as mobile video, voice, music, broadband Internet, video conferencing and interactive gaming. Operators must effectively respond to a range of key issues that include identifying how to successfully decrease network construction costs and deployment times while increasing revenue and enhancing network performance. Richard Deasington, Director of the UK consultancy Network Effect, agrees that as mobile operators mature as enterprises, serving highly penetrated markets, they also become more concerned than they used to be with finding ways to reduce costs. Mobile operators (in Western Europe) are out of start-up mode and

into the business-as-usual phase. They need to show investors ongoing profit growth. To do that, they need to chip away at the cost side of the equation. Another trend pushing them in that direction is the fact that tariffs are falling, too, he says. Mobile network IP transformation describes an extremely complex and systematic project that not only demands a decrease in Total Cost of Ownership (TCO) and the construction of end-to-end IP capabilities, but also focuses on service innovations, Quality of Service (QoS) improvements, futureoriented long-term investment protection and cohesive development. The context of these challenges has galvanized Vodafone, Orange and Telecom Italia to orient their practices to promote IP transformation in world mobile networks.

Vodafone extends its leadership

As one of the worlds largest operators, Vodafone is bombarded with competition. Crucial measures to guarantee its continued leading position and market expansion are OPEX reductions coupled with a boost in network performance. According to an officer of Vodafone, An operator must look at the total cost of ownership. At a

Mobile network IP transformation describes an a decrease in TCO and the construction of E2E improvements, future-oriented long-term investment challenges has galvanized Vodafone to orient its
11 FEB 2008 . ISSUE 38

Huawei Technologies

rough calculation, only 30% of the total cost of ownership is directly related to product cost, the remaining 70% has to do with product efficiency, such as cost of installation, maintenance, operations and transmission. Its all about working jointly with the vendor to find more efficient ways to run the network.

Vodafone Spain shining with innovations

Vodafones headquarters of Wireless is situated in Spain, and Vodafone Spain epitomizes the vitality and key characteristics of Vodafones success. As one of the groups most outstanding and important subnets, it supports 1.2 million 3G subscribers and occupies 65.33% of the Spanish WCDMA market. Maintaining this market lead is dependent upon guaranteed network performance and a constant service innovation platform that generates sufficient profit levels.

Distributed Node B climbs up towers easily

European network construction engenders two major concerns for operators: environmental protection and TCO reductions. Vodafone Group is of course no exception, and in response to both concerns, Vodafone Spain has adopted Huaweis small and lightweight next-generation Distributed Node Bs for its 3G network. These smart nodes possess several advantages. Ropes rather than cranes are sufficient to load a remote radio unit (RRU) onto a tower, and the RRUs location near the antenna allows optical fiber connections with the baseband unit (BBU). With feeder loss is decreased, coverage is greatly enhanced,

and site numbers are reduced, great savings are made in network construction costs. Previously each base station used huge amounts of power to support uninterrupted 24-hour operations, and air conditioners were essential to lower equipment heat. Its mega-money, says Richard Deasington, referring to the enormous potential for savings that many operators have not yet fully grasped. The Huawei node eliminates the need for air conditioners by supporting natural heat dissipation, and its power amplification technology can utilize green energy forms such as wind, solar and marsh gas. Each Node B can reduce power consumption to below 500W and CO2 output by 60%. Statistics demonstrate that since Vodafone Spain employed Huaweis Node Bs to deploy its HighSpeed Packet Access (HSPA) network, 30% less investment was required to facilitate a much more environmentally friendly network. The Vodafone officer mentioned above is quick to point out the scale of the financial and environmental impact in the context of thousands of Node Bs. Moreover, Richard Deasington observes that operators can adopt other measures to realize further savings, not least of which is wise vendor selection. He estimates that the operational technology difference between vendors culminates in a cost discrepancy reaching tens of millions of euros, which is exactly why Huawei proved the right choice for Vodafone.

Lighting up El Gordo
On 22 December 2007, the Spanish Christmas lottery El Gordo (The Fat One in English), was as usual announced on schedule in Spain. As usual, Lucy was enjoying a Swiss Christmas vacation with her husband on 22 December. Vacationers like Lucy have become used to browsing Internet news for the numbers, unable to enjoy real-time anticipation,

extremely complex and systematic project that demands IP capabilities, and focuses on service innovations, QoS protection and cohesive development. The context of these practice to promote IP transformation.
FEB 2008 . ISSUE 38

12

COVER STORY
Mobile IP surges across Europe Even if I dont win, its still a real disappointment not being able to enjoy the live experience on TV. Developing from a small sweepstake in southern Spain dating back 200 years, it was gradually popularized to the rest of the country and now forms a Christmas tradition worth USD1.7 billion. Due to its attractive probability, over 70% of the nations 40 million population buy tickets - which are also available in the U.K. - and pin their hopes on the fall of El Gordos 150 year-old lottery balls. The draw, which lasts 3 hours and forms a prime slot on national TV to which most Spaniards tune in, has not historically been broadcast on mobile TV due to poor network conditions. However, 2007 marked the first year when people like Lucy joined in with the Spanish festivities in real time. After selecting Huawei for holistic network construction in June 2006, Vo d a f o n e S p a i n r e c o r d e d a 3 0 % improvement in network performance subsequent to scheme completion, and this laid a platform for quick mobile TV service deployment. Providing 10 digital channels for Vodafone Lives 3G subscribers including El Gordo, travelers no longer have any problems accessing the Spanish shows that are important to them. those of other operators. The test result illustrated that the HSDPA throughput enabled by Vodafone Spain in its 29 coverage areas was unsatisfied - in these areas Vodafone had adopted other vendors wireless equipment to achieve network coverage. Shocked by the result, Vodafone Spains technical staff anxiously consulted Huawei, and the two partners selected eight hotspot areas in Madrid to be covered by Huaweis wireless network. The new network was then put to the same HSDPA test as before, and then optimized. The results exhibited an HSDPA with far greater stability and with a throughput that exceeded other operators by over 30% on average. Furthermore, after optimization, singlesite HSDPA throughput was significantly improved. In the HSDPA benchmarking test that followed, Huawei received high recognition from Vodafone Spain. sea, Jack and his fellow fishermen frequently lost contact with the people onshore. Seeking help was impossible if we were caught in a storm, recalls Jack, whose family could do nothing but worry for his safety during his days and nights at sea. R e s p o n d i n g t o Ic e l a n d s s p e c i a l landform, Huawei proposed a solution that sought to perfect offshore communications and enhance 120km of sea coverage. In May 2007, Huawei began reconstructing Vodafone Icelands GSM network. By using the dual-timeslot extended cell scheme and effectively combining its power enhancement, transmission diversity, and 4-way receiver diversity functions, the system has achieved downlink gains and higher receiver sensitivity. As a result, the receiver function is now directionally balanced for both uplinks and downlinks. Whats more, Huawei took advantage of the nations unique landform for high terrain sites and mounted antennas at suitable points to expand sea coverage. Consequently, system coverage radius was increased by 20% and the total coverage area by at least 40%. The number of sites was proportionally reduced by 30%, which both curtailed investment and facilitated greater environmental protection. Since the projects inception, the key performance indexes (KPIs) of Vodafone Icelands network have all improved considerably. Network quality, subscriber experience, customer satisfaction and offshore traffic have all been greatly enhanced, ensuring that Jack and his fellow fisherman can benefit from the greater safety that effective communications deliver.

Vodafone Iceland covering 120km of seas

Located near the Arctic Circle, Iceland sits on the westernmost tip of Europe in the middle of the North Atlantic. Being the second largest European island, Iceland has a 4,970km coast line and an economy that is underpinned by fishing. The numerous of boats leaving shore each day necessitates high-level sea-based as well as land-based network coverage. Jack represents a typical Icelandic fisherman who attaches great importance to high-quality offshore communications. In the past, these were inadequate, and while at

Winning in HSDPA benchmarking test

In May 2007, Vodafone Spain conducted a test to compare its high speed downlink packet access (HSDPA) benchmark with

Table 1 Vodafones UMTS/HSPA network Download Total data transferred 148.90MB Upload 8.29MB

Table 2 Other operators UMTS/HSPA networks Download Total data transferred 148.90MB Upload 8.29MB

Max. transfer rate Average transfer rate

4.65MB/s 1.74MB/s

0.42MB/s 0.10MB/s

Max. transfer rate Average transfer rate

2.06MB/s 266.6KB/s

0.25MB/s 24.4KB/s

13 FEB 2008 . ISSUE 38

Huawei Technologies

GO, GO, GO!

Orange opens up the Belgian Grand Prix

In addition to other regions, Orange operates in 22 European countries and serves nearly 85 million mobile subscribers. Regarded as the most capable European operator in R&D terms, the company boasts 16 research institutes around the globe. Positioned as a leading European mobile operator, Orange has remained dedicated to developing new services and solutions to perpetuate its stature across the industry. The company has also been searching for a long-term strategic partner to help reduce its TCO and increase its operational revenue, and a strategic choice came to fruition with the Belgian Grand Prix. a sea of mobile phone activity as countless fans made video calls to share their excitement, while reporters from all over the world took full advantage of the HSPA network to cover the race. The Spa-Francochamps circuit is located in the center of Belgium and has been the venue for the Belgian Grand Prix since 1985. The 6.973-kilometer circuit is the sports longest, and is generally regarded as the leading world venue and home to the best races. Tracing the uneven contours of a hill, the circuit is considered to be one of the most challenging Grand Prix circuits, the downhill run providing an especially breathtaking stretch. The rugged terrain has always hindered network coverage and high-speed mobile data services have remained unfeasible, representing a disappointment to the legion of fans wishing to record the action. In April 2007, Huawei began deploying Distributed Node Bs in Belgium having fully considered the topographical variations among different spots in the circuit and landform complexity. Huawei proceeded to implement its wireless network planning solution and antennas based on existing sites surveys in a move to significantly save the operator, Orange, network construction costs by utilizing current equipment rooms, site equipment and antennas. IP and multicarrier technologies were introduced to Oranges network so as to enable end-toend IP networking from the interior to the exterior, while greatly improving the systems bandwidth throughput capability. After network reconstruction, Orange was able to provide subscribers with a rich and flexible service experience that included mobile broadband services, VoIP and mobile TV. The communications network covering the Spa-Francochamps circuit has remained as a permanent fixture that will benefit legions of fans and reporters for years to come.
FEB 2008 . ISSUE 38

Sharing excitement on the Spa-Francorchamps circuit

GO, GO, GO KIMI! On September 16, 2007, the Belgian Formula 1 Grand Prix began in Spa-Francochamps amidst a flurry of deafening screams and shouts and

14

COVER STORY
Mobile IP surges across Europe

Telecom Italia: higher speeds and newer experiences

Telecom Italia is the seventh largest operator in the world and is famous for its innovation. It plays a dominant role in its domestic market, and operates in numerous European and Latin American regions including Germany, France, Holland, Brazil, Argentina, Bolivia and Cuba. Having already secured nearly 30 million fixed and 60 million mobile subscribers, the company is seeking to expand its activities by investing EUR14 billion between 2006 and 2008. The constant development of the mobile communications industry has necessitated continual base station adjustment in Telecom Italias existing network. Essential upgrades for HSPA and IP radio access networks (RAN) increase costs and endanger network performance. Telecom Italia expects to strengthen its position by providing a new network while decreasing capital expenditure (CAPEX) to meet the fast growing requirements for 3G network capacity and the demand for the rapid inception of new services. Huaweis next-generation Node B solution and its associated business model are designed to save millions of euros in network adjustment areas, and as such attracted Telecom Italias interest.

Mobile experiences on high-speed railways

By 2008, Italy will deploy over 1,000km of high-speed railway track, with the Rome-Naples and Milan-Turin stretches already up and running. The highest train speeds reach 300km per hour and, in response to the public need for high-speed Internet services while in transit, Telecom Italia has planned to launch its high-speed Internet service in partnership with the railway company. HSDPA technology is adopted for back transmission through which data is converted to Wi-Fi signals to facilitate the Internet and other high-speed data services. O n a h i g h - s p e e d r a i l w a y, c a l l t r a f f i c i s concentrated in moving carriages, and solution design in terms of construction costs and highspeed performance should be considered, especially technical difficulties brought about by Doppler frequency shifts at high speeds. Huaweis unique 40W power amplifier enables bi-directional divided linear coverage. Its unique high speed algorithm can overcome influences from both the Doppler effect

15 FEB 2008 . ISSUE 38

Huawei Technologies

and excessive cell handovers. Multi-RRU combination technology can improve HSDPA performance, and BBU pool technology can reduce BBU numbers and thus construction costs. To date, Huawei has completed the solution design and network planning for the trial section of the Rome-Naples high-speed railway. In the near future, subscribers can conveniently use highspeed Internet services on trains between Rome and Naples with the same results as office use.

Romantic, golden holidays in Sicily

Sicily provided the scenic backdrop for the award-winning movie Malena, and is widely regarded by both ordinary tourists and celebrities as a romantic island and desirable get-away location. July and August represent its peak-season months during which tens of thousands of tourists descend on the island to enjoy the sunshine, the beach and the islands rich history. For Telecom Italia, the clusters of tourists bring about huge business opportunities as the more diligent tourists utilize the HSPA network to keep up with their business tasks, while others use their mobile phones to send photos or videos to relatives and friends. Telecom Italias existing network, however, fails

to meet modern requirements and it is almost impossible for subscribers to use high-speed mobile data services in Sicily, thus prompting the drive for network enhancement. Guided by the premise of high-quality but low-cost customer solutions, Huawei fully employed Telecom Italias existing resources while ensuring high quality integrity. Including towers, equipment rooms, power supply systems and transmission equipment, reuse has saved Telecom Italia much investment during the network reconstruction process. In terms of performance, the download rate of Sicilys HSDPA network gradually increased from 1.8 to 7.2 Mbps, and more importantly, the network was adjusted before the 2007 peak season. The KPIs have demonstrably improved, and problems concerning network congestion and poor indoor coverage have been completely eliminated. Network quality has been optimized and improved, as enhanced customer satisfaction and rapidly increasing traffic rates testify. The new network is based on full-rate HSPA technology and enables Telecom Italia to deploy new services. Not only do greater number of subscribers now use Telecom Italias services during their stay in Sicily, but also the increased average revenue per user (ARPU) reflects a positive gain for Telecom Italia. Editor: Pan Tao pantao@huawei.com

Telecom Italia expects to strengthen its position by providing a new network while decreasing CAPEX to meet the fast growing requirements for 3G network capacity and the demand for the rapid inception of new services. Huaweis nextgeneration Node B solution and its associated business model attracted Telecom Italias interest.

FEB 2008 . ISSUE 38

16

MAIN TOPIC

MAIN TOPIC

The fourth generation BTS

n the mid-1990s, the first generation BTS with analog power amplifier (PA) enabled people to have fun in their mobile communications. In 2000, the second generation BTS with digital PA greatly accelerated the development of mobile networks. In 2005, the distributed BTS, which represents the third generation BTS, brought substantial changes to network construction. With the application of the wideband RF and IP technologies, the fourth generation BTS has now becoming a highlight in the industry, and fully displaying its features of Convergence, Integration, All-IP and Green.

Convergence
The constant development of mobile communications has accelerated the upgrades of technologies and products. GSM networks are heading to the enhance data rates for GSM evolution (EDGE) and EDGE+, while WCDMA networks are evolving to high-speed packet access (HSPA), HSPA+, and long term evolution (LTE). Faced with different systems including WiMAX, operators have to invest much on operation and maintenance if different networks are constructed. Therefore, convergence has become a major concern throughout the industry. 17 FEB 2008 . ISSUE 38

The BTS accommodating different systems develops typically in two directions. First is the initial stage, in which the equipment room, antenna, feeder and auxiliary equipment are shared, while different networks use different types of BTS. Second, the software defined radio (SDR) technology is adopted to unify the hardware of BTSs in different technical systems. As a result, a hardware module can be configured to support a unique system such as GSM, WCDMA and CDMA, or even support two systems simultaneously. This can enable smooth upgrades and reduce operation costs, including the cost of service parts.

Integration
The need for greater capacity has been increasing with the drive of high-speed data services. BTSs adopting the multicarrier technology have higher integration and lower power consumption, and they can facilitate smooth capacity expansion. Multi-carrier technology is the current trend for radio frequency (RF) broadband usage, and it is a key technology for the fourth generation BTS. Multi-carrier technology was first applied in 3G BTSs. The 2G network used single-carrier technology in its early

phase, but can now use multi-carrier technology introduced from 3G networks. In a traditional BTS using single-carrier technology, each carrier includes a transceiver and a power amplification unit. Multi-carrier technology employs wideband RF technologies, in which multiple signals are combined through the digital intermediate frequency (IF) and are transmitted through a broadband power amplifier. In each multi-carrier module, the number of carriers can be flexibly configured and power can be shared among carriers. As a result, combiners are no longer needed, enabling flexible capacity expansion and reduced power consumption. In a grand expo four months ago in China, the traffic was estimated 10 times more than usual. The technical guarantee, however, had been proven to be an easy one. With the help of Huaweis fourth generation BTS equipped with multicarrier module, the network capacity was expanded three times through data configuration in one minute, without the need of adding new cabinets or renting new equipment room.

All-IP
The increase of data service has raised

Huawei Technologies

Apple gained a whopping success by wining 10% of operators revenue generated from iPhone users, which raised a heated topic about changes in the value chain. In an industry with stiffer competition, transnational operators have to fight tooth and claw to get a new market share from their competitors, while regional operators are striving to grab a larger stage. The industry is undergoing a hurricane, a telecom analyst said. Higher requirements have been imposed on the existing networks with the introduction of new services, increased number of users and higher average minutes of usage. Facing decreased ARPU and increased OPEX, operators need a future-oriented wireless network solution to handle these challenges and boost their profits.

Pointing the wind vanes for BTSs

By Xu Peizhong
higher requirements for bandwidth. Operators, however, have to face various challenges in each bandwidth expansion, such as replacing the existing equipment at a large scale, or making drastic changes in network architecture, especially in transmission network. High cost has become a curse in opening the door of broadband. The fourth generation BTS can solve the abovementioned problems. Based on IP and wideband RF technologies, the RF channel can be up to 20MB, while transmission interface can support 100MB traffic. As only data configuration is needed to enable the changes between different systems, operators can protect their investment during network transformation. For example, a 3x4 GSM BTS can be configured to a 3x2 HSPA BTS. This configuration does not require hardware replacement, but the transmission speed can be increased from 2MB to 20MB. Huaweis fourth generation BTS has gained a leading position, thanks to the companys rich experience in broadband and IP. In 2006, Huawei succeeded in deploying an All-IP HSPA network in Japan, which marks the very first time that IP technology is introduced into mobile networks. At the end of 2007, Huawei helped an operator establish its networks in Szechwan, China, using the GSM BTSs based on a wideband platform. fourth generation BTS is to reduce resources like equipment room and energy. Highlyintegrated BTSs with low power consumption are the key to green communications. The fourth generation BTS boasts enhanced features in its integrity and power consumption. Take a 12-TRX BTS of 3 sectors for example. A traditional BTS requires three cabinets and 8000W power consumption if air conditioning included. The fourth generation BTS, however, needs only one cabinet and 2000W power consumption even in an equipment room with higher temperature. By comparison, costs on auxiliary equipment can be reduced by over 30%, while power consumption of BTSs can be saved more than 75%. For an operator in South Africa, its traditional BTSs can consume energy equaling to USD1.2 billion in a five year period. If all the BTSs use Huaweis fourth generation ones, a total of USD0.75 billion can be saved. The year 2008 will be characterized by network transformation. An innovative and quick-response partner is needed in operators effort to explore the blue ocean. Relying on customer-based innovation, Huawei positions its technical development on Green, Convergence, Broadband and Evolution. Huawei has taken the lead in releasing the fourth generation BTS in the industry, and will always be a partner in building a future-oriented network with operators.
FEB 2008 . ISSUE 38

Green
A major drive behind the development of the

18

MAIN TOPIC

2G BTS draws on 3G technologies

2G BTS draws on 3G technologies

T
wo highlights in the rich development of the 3G networks are advanced technologies and high efficiency. However, the GSM network is the most widely applied network in the world. After a decade of development, the GSM network is still favored and constantly evolves due to the maturity of technical applications and business models. Reviewing the 2G developments from 3G commercial applications, people may ask: Is it possible to apply the highefficiency and energy-saving technologies of the 3G systems to the 2G systems? Can we smoothly evolve the 2G systems to the 3G systems? Huaweis new-generation EnerG GSM solution will offer you the best answer. macro BTS needs only 6 dual transceiver units (DTRUs) and less combiners and duplexers. Compared with the BTS with single-TRXs RFU, the new-generation BTS is smaller, leaner, and offers better radio performance. Currently, Huawei is the only vendor who has developed a QTRU - a type of RFU based on multi-carrier technology. Each QTRU supports the processing of six RF signals. Digital intermediate frequency (IF) combining technology is also used. Six RF signals are combined in the QTRU, and no independent combiner is required. Power of the six RF signals can be shared to improve radio performance. The QTRU based on the multi-carrier technology is the same size as a DTRU, but has three times the capacity of the DTRU. Multi-carrier technology can bring noteworthy improvements to 2G networks. Take Huaweis indoor macro BTS3012 for example, since the QTRU a n d D T RU a r e t h e s a m e s i z e , t h e BTS3012 is able to support both the QTRU and DTRU at the same time. The DTRU-based BTS3012 can support up to 12 TRXs and needs combiners. The QTRU-based BTS3012 can support up to 36 TRXs without combiners. To construct a S12/12/12 site, an operator needs three DTRU-based BTS3012s or only one QTRU-based BTS3012 with no combiner.

By Pang Yingwen

High efficiency 3G PA technology for 2G

To deploy a wireless network with overall coverage and good performance, thousands of BTSs may be needed. As a result, the costs of BTSs account for the biggest proportion of overall network construction costs. In each BTS that works as a radio transceiver, the RF power amplifier (PA) is the most important component. The linear PA accounts for about 1/3 of the total cost of each BTS, and the RF PA is a main power consumption unit of BTS. To cut BTS costs, an effective method is to decrease the costs of the RF PA unit for each BTS. This requires the use of a PA that has wide bandwidth, high linear features, and increased efficiency. The DPD + Doherty high-efficiency digital PA technology does quite well. The digital pre-distortion (DPD) technology enables signal pre-distortion. A predistorter is cascaded over a PA. Because the non-linear distortions enabled by the predistorter are equivalent to those enabled by the PA in quantity but are opposite in function, thus high linear PA output can be achieved. The Doherty PA technology has two main parts: the carrier (C) amplifier and

Multi-carrier technology for 2G

In the traditional GSM base transceiver station (BTS), a radio frequency unit (RFU) can only process one carrier signal, therefore, a 12-TRX macro BTS needs 12 RFUs. Each BTS is cumbersome when equipped with the necessary combiners and duplexers. With technical innovations, each RFU can now process two radio frequency (RF) signals, and a 12-TRX 19 FEB 2008 . ISSUE 38

Huawei Technologies

the peak (P) amplifier. The carrier PA works constantly, while the peak PA works only at the preset peak. The carrier PA works in a nearly saturated state to get higher efficiency, and it amplifies most signals. The peak PA works only at the peak value, and does not consume power most of the time. The linear area with combined output and input features has been greatly expanded from the linear area of a single amplifier, which enables high efficiency when signals are in the linear area. Huaweis new-generation GSM RF PA improves efficiency up to 50% while saving over 49% in power consumption when compared with a traditional BTS. This is accomplished by coupling power amplification technology with some innovative PA power consumption management technologies like intelligent shut-off of PA power and dynamic adjustment of PA voltage. If existing sites are replaced by Huaweis newgeneration BTSs that adopt the 3G high-efficiency PA and the multi-carrier technology, a medium-sized city with 2,000 sites can save 33.29 million kilowatts (KW) of electricity each year. The environment is spared 22,000 tons of carbon dioxide (CO2) emissions and the operator saves money too.

Distributed architecture for 2G BTS

To reduce 3G network construction costs, Huawei pioneered in launching 3G Node Bs based on the distributed architecture in 2005. In the distributed architecture, the baseband unit (BBU) and the remote radio unit (RRU) are separated and connected through the standard common public radio interface (CPRI). The distributed architecture divides the traditional Node Bs into two small modules, BBU and RRU. This facilitates site acquisition, simplifies installation, and drastically cuts 3G network construction costs. Based on its mature design and application experience in 3G distributed Node Bs, Huawei launched the DBS3036, a GSM distributed BTS with large capacity, high integrity and high reliability. By applying advanced 3G RF technologies like multi-

FEB 2008 . ISSUE 38

20

MAIN TOPIC

2G BTS draws on 3G technologies

carrier technology and the high-efficiency digital PA to the 2G system, Huawei will soon launch the RRU3036 for new-generation 2G distributed BTSs. Each RRU3036 can support up to 6 carriers. For an S6/6/6 site, only three RRU3036 modules are needed. In the future, big, bulky BTSs with high power consumption will be phased out in 2G network construction.

Link

End-to-end IP technologies
The GSM and the WCDMA belong to the same standard system and support smooth evolution. The IP radio access network (RAN) technology used in 3G systems has many similarities to the BSS IP technology used in 2G systems. The IP technologies adopted in 3G systems can all be used in 2G systems and guarantee the sustainable development of 2G systems. In product platform development, the BSC and BTS of the GSM system are both based on an All-IP platform. This dramatically improves the integration of 2G products, decreases power consumption and maintenance costs, and enables smooth evolution to 3G systems. In the past, 5 to10 cabinets were needed for a BSC that supports 2,000 TRXs, including the packet control unit (PCU) and transcoder (TC). Now only one cabinet is required with Huaweis new-generation BSC6000 designed with the IP platform technology. The BSC6000 and the radio network controller (RNC) are both based on the PARC IP platform. The BSC6000 can be upgraded to a RNC by a simple software upgrade and replacement of a few interface boards. In networking, Huaweis new-generation distributed BTS provides IP interfaces for 2G networks. The Gb interface, Abis interface and A interface are all designed to support IP connection directly. As a result, the structure of the 2G network is simplified, the transmission expenses in 2G networking are curtailed, and increased requirements for digital services can be accommodated. For example, the 3G network of EMOBILE in Japan has saved up to 95% lease expenses on transmission devices each year after adopting Huaweis IP RAN solution. When 3G IP technologies are used in 2G product development and IP networking, the reliability and efficiency of 2G networks can be greatly improved. Through IP networking, such functions as the BSC pool or the MSC pool can be conveniently enabled. If a BSC or MSC in the network fails in transmission, another BSC or MSC can take up the services and system services will not be interrupted. Huawei has diversified and upgraded mobile applications by introducing advanced 3G technologies to the 2G system. By adopting the same technologies, 2G and 3G products will naturally evolve from technical convergence to product convergence. 21 FEB 2008 . ISSUE 38

Huaweis next genaration GSM distributed BTS

By Yin Dongming & Xu Yan
3G distributed Node Bs are maturing and GSM operators have begun to cooperate with telecom vendors to explore the possibilities of applying distributed BTSs in the GSM field. However, many products are simple imitations of 3G distributed Node Bs in appearance, installation features and transmission media. The fact is that GSM networks are significantly different from universal mobile telecommunications system (UMTS) networks, especially in capacity, evolution and environmental impact.

Not mere imitations

GSM distributed BTSs are not mere imitations of the 3G models, but are definitely inheritance and improvement based on the original. Hardware sharing the same platform represents the idea of modular design and product maturity. As the smallest and lightest BTS in the industry, Huaweis next-generation GSM distributed BTS is based on the latest platform that is applicable to UMTS networks and even long-term evolution (LTE) networks. The next-generation GSM distributed BTSs baseband unit (BBU) inherits high integrity from the 3G distributed Node Bs. Its common public radio interface (CPRI) and board structure are of mature designs, while the remote radio unit (RRU) has been greatly improved. By adopting the natural heat dissipation mode and compact size, the RRU is of higher stability, larger capacity, and greater output power. The distributed BTS maturity has been shined based on in-depth commercial test data, and the BTS features optimized radio frequency (RF) components, heat dissipation, and antenna system. A basic requirement for GSM networks is the assurance of smooth evolution to future networks. Huaweis next-generation GSM distributed BTS enables GSM and UMTS systems to share the same platform, fully supporting coexistence of 2G and 3G networks and smooth evolution to future networks. The product also adopts the IP platform design mode and uses IP

Huawei Technologies

technologies from the core to interfaces. Based on extensive experience in the IP field, Huawei has pioneered in using the IP clock server to transfer clocks on IP networks and realized IP mobile networking from network elements to the overall network architecture.

Full display of distributed features

Differing from Node Bs in 3G networks, GSM BTSs require larger c a p a c i t y. A t p r e s e n t , m a n y G S M distributed BTSs in the industry support only two carriers due to technical limitations, which seriously limits coverage scenarios. These BTSs can only be used as components for macro BTSs or for small-capacity indoor coverage. To utilize distributed features, the next-generation GSM distributed BTSs must support large-capacity networking and provide the capabilities of macro BTSs in terms of coverage and expansion. Huaweis next-generation distributed BTS stands out from all the GSM distributed BTSs that can be installed on towers for its support of S4/4/4 configuration and S12/12/12 after upgrades. The application performance with 30W cabinet-top output power is equivalent to that of a macro BTS. By using Huaweis next-generation GSM BTS, operators can have up to 36 carriers in baseband processing, and can add two BBUs to expand each single BTS to support 12 cells and 72 carriers. This can greatly enrich the application scenarios of GSM distributed BTSs and handle the requirements of heavytraffic users and highly-integrated services, whether indoors or outdoors. In each sector, a single RRU of Huaweis next-generation GSM distributed BTS can support 4 carriers, and the capacity can be further expanded through cascading. Since the unit supports transmit diversity and 4-antenna receive diversity, the receive sensitivity can be up to -112.5 dBm at normal temperature. Operators can stop worrying about degraded

quality of service (QoS) and wont need to construct more sites or plan more networks, while enjoying the features of distributed BTSs. With the purposes of reducing energy consumption, noise pollution, electromagnetic radiation and interference, Huawei has transplanted a green idea into the design of its next-generation GSM distributed BTS. By adopting digital power amplifier and intelligent power control technologies, Huaweis nextgeneration GSM distributed BTS achieves a power amplification efficiency of more than 40%. As a result, power consumption is further decreased while the same output power is maintained.

Experience promises a bright future

Engineering experience from 3G networks is greatly helpful in deploying GSM distributed BTSs. With its 3G distributed Node Bs, Huawei helped Vodafone Spain migrate the networks in Madrid and Barcelona. By installing RRUs on towers to improve coverage, Vodafone Spain greatly improved its voice quality and high-speed packet access (HSPA) data throughput. In Hong Kong, where features the most complicated wireless environment and great difficulty in site acquisition,

Huawei used the ray-tracing model and 3G distributed Node Bs to build a highquality network, while saving space and rental costs. In Singapore, Huawei used distributed Node Bs to realize the coverage of two different scenarios in downtown areas and residential areas. By using fiber extensions and reading directly the original network configuration data, Huawei managed to speed up the network optimization with a record-setting delivery of 100 sites per week. In Japan, Huawei tailored its distributed Node Bs to meet the operators rigorous requirements for earthquake resistance, moisture resistance, natural heat dissipation, and reliability, and succeeded in constructing the fastest mobile broadband network nationwide with more than 70% coverage. Although the mature application of 3G distributed Node Bs have significantly influenced the GSM network deployment, operators are still looking forward to a next-generation distributed BTS solution tailored for GSM networks, rather than equipment that enables simple separation in physical architecture. The nextgeneration GSM distributed BTS can truly help operators build high efficiency, high quality and quickly operable GSM networks that provide competitive services and products.

FEB 2008 . ISSUE 38

22

MAIN TOPIC

Green BTS gives fresh breath

Green BTS

fresh breath
G
lobal telecom equipment suppliers are rolling out their own green BTSs. However, each might have a different understanding on the definition of a green BTS since currently there is no defined standard in the industry. If we analyze the one-time capital expenditure (CAPEX) before launch time and the operational expenditure (OPEX) afterwards, it is apparent that a real green BTS should incorporate environmental protection into product design and produce to significantly lower the total cost of ownership (TCO) while saving energy. The green BTS benefits mobile operators mainly in these three important areas: auxiliary equipment, network deployment, and environmental protection and resources utilization. sites will save operators over USD120 million in Europe. Due to small dimensions and light weight, more than 70% civil works can be reduced at the same time. With increasing price of fuel, more cost on OPEX could be further saved. In the industry, promoting integration, adding external combiner, or shortening the backup time by reducing battery facilities is commonly used to make the site acquisition easier. Due to low BTS integration and site limitation brought by tower, space, cost etc., the number of feeders and antennas will be consequently restricted. To realize that multiple carriers share the same feeder and antenna, an expensive external combiner has to be added. The green BTS will be able to provide 4 to 6 carriers by one common port. For a S12/12/12 site, only 1 to 2 battery cabinets are required, about 0.5m2 occupied, which makes site acquisition more convenient and flexible, saves CAPEX, and shortens the network planning and rollout period.

gives

By Wu Wujun

Reducing sites and saving auxiliary cost

As the cost of BTS often occupies only around 30% of one site CAPEX, while in Europe and other developed countries, t h e p ro p o r t i o n i n C A PE X i s a b o u t 15%. Reducing the site related auxiliary equipment will directly decrease CAPEX. Higher integration is thus demanded. Suppose a GSM site with S12/12/12 typical configuration in dense urban, the footprint of site with traditional BTS will be over 1.5m 2 . If the footprint can be decreased to 0.5m2, acquisition of 10,000 23 FEB 2008 . ISSUE 38

Power consumption cut by 50%

Environmentally friendly products generally feature lower power consumption, less noise, less electromagnetic radiation, and lower environmental impact. That is precisely what the green BTS aims to achieve. For example, a typical GSM S4/4/4 site with a traditional macro BTS consumed

1,600W in 2007, and the total power consumption of the site was around 3,000W. If power consumption of both BTS and auxiliary equipment can be optimized, a site with less than 450W power consumption will lead to 85% decrease in total power consumption, which is about 22,000 kilowatt hours per site every year. That means 70 million liters of fuel, accounting for USD400 million, and would be saved for an African GSM operator with 10,000 outdoor sites in 5 years. To achieve this target, Huawei green BTS adopts enhanced Doherty technology, the latest power amplifier chipset, and brand new hardware design to realize energy conservation and environmental protection by a three-tier approach. First, the latest power amplifier chipset and high efficiency scheduling algorithm can effectively reduce more than 60% of the static power, substantially avoiding the unnecessary waste of energy. Second, industry-wide power amplifier efficiency was less than 33% in 2006, but with the latest chipset and enhanced D P D & Do h e r t y t e c h n o l o g i e s , t h e amplifier efficiency is improved from 33% to 45%. It is safe to forecast that the power amplifier efficiency will be improved to 50% by the year 2008. As a consequence, power consumption will be further decreased, and fuel consumption and emission of carbon dioxide will be significantly reduced. By using highefficiency power amplifier technologies

Huawei Technologies

and the latest amplifier chipset, the internal heat generated by the BTS components is greatly decreased. The traditional heat dissipation methods such as air-conditioning and heat-exchange can be replaced by convection cooling or natural heat dissipation, eliminating noise and saving energy. Third, according to a number of industr y consulting firms, 750W power supply is a dividing line between green energy and fuel engine. If a lessthan 750W BTS uses green energy, investment balance can be reached within three years compared with that uses a fuel engine. For small BTSs or distributed BTSs in low traffic areas, such as the BTSs of one sector and less than 2 transceivers, their power consumption is far less than 750W. Therefore, the green energy such as solar, and wind can be used to power the BTSs. This not only saves the investment, but also takes full advantage of using natural energy to eliminate environmental pollution.

Easier installation
It is well known that a traditional BTS is composed of many modules including baseband, RF, combiner, transmission, operation and management. These cause very complicated wiring and rigid installation mode, making site construction and expansion difficult. In 2005, distributed BTS with open common port radio interface (CPRI) was developed as the first modular BTS. As the distributed BTS is physically divided into baseband module and RF module interconnected through optical fiber, the flexibility of site acquisition and installation is greatly enhanced. With regard to the dimensions, a baseband module that is 3U to 4U in height can enable the installation on the existing equipment such as an automatic power management (APM) cabinet, transmission equipment cabinet or remote equipment room. Thanks to its light weight, the RF module supports various installation modes including installation on tower, pole, or against wall. Because of its small capacity (one or two carriers), a traditional distributed BTS is only applicable to indoor coverage or small capacity application scenarios. In 2008, Huaweis full range of the fourth generation BTSs will be highly modularized. All BTSs will be unified to baseband and RF modules. Due to introduction of multi-carrier and broadband radio technology, the capacity of baseband unit will be improved by five times, and meanwhile the height will be further reduced to 1U to 2U. In terms of RF module, the dimensions remain unchanged but one single module can support 4 to 6 carriers, accounting for 2 to 3 times capacity increase compared with

the industrys average. These enable the distributed BTS to support up to 12 transceivers per sector. The capacity bottleneck has been eventually broken. The modular design is an innovative new type of BTS, which simplifies wiring between different modules and enables the BTS to be stacked or assembled in various ways like a building block. This makes site construction simpler, expansion smoother, and civil works costs related to site lower. Operators will benefit from convenient installation and easier site acquisition, reducing the investment on site and shortening network deployment time. The green BTS is an effective means of ensuring profitability and assisting operators to rapidly lower TCO in an increasingly competitive environment. As a leading telecom equipment provider, Huawei is making persistent efforts to innovate based on customer demands. Its series of green BTSs will bridge the standards gap to realize multi-system integration, and help operators to lower TCO through a green way. Editor: Chen Yuhong chyhong@huawei.com

FEB 2008 . ISSUE 38

24

MAIN TOPIC

What can wideband RF bring for GSM?

What can wideband RF bring for GSM?

Wideband RF technology had been put into commercial use only in WCDMA and CDMA systems during its earliest stage. The application of this technology to the GSM system will deliver with it a breakthrough in traditional mobile networks, which will greatly assist GSM operators to lower TCO and achieve a low cost for rapid expansion. Moreover, it will offer smooth future evolution potential.
By Feng Baoshun

The necessity

ith todays flourishing global mobile communications development, operators are increasingly aiming to reduce TCO and identify cost-effective methods of expanding mobile networks. This is necessary to cope with the rapidly growing needs of users that, to date, exceeds any previous time. GSM forms a narrow-band digital communications system, and its present base stations commonly adopt single carrier technology. Specifically, each carrier corresponds to an independent RF channel as illustrated in Fig.1. If a cell needs to configure multiple carriers (for example, 6 carriers) to meet the capacity requirements, the signals must be combined through a traditional combiner before being sent to the antenna - for the purpose of saving antennas. However, each time when signals are combined, base station power output drops by at least 50%, which of course

represents an unwelcome situation in largecapacity networks. Given the combiners significant losses, a carriers transmission power needs to be increased to meet coverage requirements. Wideband RF technology will help solve this problem by utilizing MCPA - the multi-carrier power amplifier technology - which represents one of the key means of allowing a module to be configured with multiple wireless carriers according to

capacity requirements, helping operators to lower TCO. The core concept of wideband RF technology involves signal combination on the digital IF module followed by output through the broadband power amplifier, as shown in Fig. 2. Wideband RF technology was first put into commercial use in WCDMA and CDMA systems. However, due to the shift to network convergence, breakthrough progress has been made its

Baseband

DAC

PA Analog RF

Baseband

DAC

PA

Baseband

DAC

PA

Fig. 1 Single carrier power amplifier

25 FEB 2008 . ISSUE 38

Huawei Technologies

application in GSM narrow-band digital communications systems. The greatest challenge regarding MCPA in WCDMA and GSM systems is achieving power amplifier linearization and efficiency. Current WCDMA equipment vendors have so far adopted the digital pre-distortion (DPD) technology in WCDMA systems, and achieved excellent commercial results. DPD technology allows a PA to cascade over a pre-distortion device - the predistorter - to realize a cascaded linear system. W i t h t h e u s e o f M C PA a n d t h e application of 3G power amplification technologies such as DPD in GSM systems, operators can substantially lower TCO and achieve smooth future network evolution. Therefore, wideband RF forms a necessary technology in terms of nextgeneration base station design.

equipment room, without interrupting base station services. Meanwhile, they do not have to replace hardware or change cable distribution by re-accessing the site. After MCPA technology is adopted, each cell in a typical configuration needs only one MCPA module, and it is unnecessary to configure the traditional broadband or filter combiners. Therefore, the cable distribution of the base station is greatly simplified, and reductions are made in technical requirements for maintenance personnel and the probability of cable misconnection.

Large capacity and wide coverage

The typical capacity of a traditional GSM base station is 12 carriers, which can increase to a highly integrated, single cabinet capacity of 36 carriers if multicarrier technology is adopted. Moreover, this technology does not require broadband or filter combiners, thus decreasing the fault points of equipment and insertion loss. Coverage performance does not in any way decline compared with that of a traditional GSM base station. Using 6-carrier configuration as an example, multi-carrier technology incurs an insertion loss of only 1dB, compared with 3dB for a filter combiner and 7dB for a broadband combiner in a traditional GSM base station. Coverage performance is increased by the use of multi-carrier technology that allows power resource sharing among different carriers and needdependent idle channel allocation.

Multi-carrier technology enhances base station power amplifier efficiency. As each carrier can share power resources, then resources can be dynamically and flexibly allocated according to different carriers traffic volumes and power requirements. Savings can be made in ordinary combiners and this substantially decreases both power losses and carrier output power demanded for base station coverage. With the help of multi-carrier technology, power consumption and OPEX of base stations can be reduced substantially. For example, the typical power consumption of a multi-carrier GSM base station under a S12/12/12 configuration can be less than 2,000W, which is an impossible feature for traditional GSM base stations.

Alluring prospects
The linearization and efficiency of power amplifiers are two key issues for wideband RF technology, and vendors will continue prioritizing its R&D. Following the successful utilization of MCPA in WCDMA systems, GSM equipment vendors have already begun researching the introduction of multi-carrier technology to GSM systems, and have already incorporated it into their products. At present, dual-mode and multi-mode technologies have been developing rapidly in the global mobile communications market. The inception of multi-carrier technology in GSM systems will lay the foundation for the multi-mode base stations that can share carrier modules. Furthermore, software defined radio (SDR) will play an important role in multi-mode base station deployment. In the near future, SDR research and production will emerge as key technical goals, the commercialization timeframe for which will be elevated by the introduction of MCPA to GSM systems. Huawei is set to adopt SDR in its products during 2008. SDR permits a set of equipment to simultaneously support a variety of technical systems and software configuration is the only measure required to realize evolution from GSM singlemode to GSM/WCDMA dual-mode or to WCDMA and LTE directly.
Editor: Liu Zhonglin liuzhonglin@huawei.com

Three key benefits

Smooth expansion and easy maintenance
Multi-carrier linear power amplification technology can be adopted to enable the power amplification of baseband signals for multiple carriers after the combination on the digital IF module. Carriers can thus share one power amplifier, and base stations can be seamlessly expanded. GSM operators can, for example, use three MCPA modules to establish an S4/4/4 site during the initial phase. The increased number of subscribers may require the expansion to an S6/6/6 site. In this case, engineering personnel only need to modify the software configuration in the

Lower power consumption and cost

Baseband Digital IF

Baseband

DAC

PA

Baseband
Fig. 2 Multi-carrier power amplifier

FEB 2008 . ISSUE 38

26

MEDIA INSIGHT

Harvesting in the US, India and China

Huawei makes it large in CDMA

Persistence and unflagging effort underline the Never Give Up ethos integral to success. Indeed, 2007 richly rewarded Huaweis perseverance and capabilities with its entry into the worlds three largest CDMA markets: the United States, India and China.
By Li Chuantao from the Communications Weekly

27 FEB 2008 . ISSUE 38

uaweis greatest breakthrough in the CDMA field was made last year in India. By mid 2007, Huawei had secured equipment contracts worth USD300 million with Reliance and TATA, two major Indian CDMA operators who both occupy places in the global top ten CDMA operators. Leap Wireless (Leap) is the fifth largest CDMA operator in the United States. Leaps initial cooperation with Huawei began in 2006, and the company recently selected Huawei to deploy CDMA networks for Cricket Communications (Cricket) and Denali Spectrum (Denali), both of which are wholly owned subsidiaries of Leap. The new networks cover the Great Lakes region, which comprises one of the United States key economic areas. After a lengthy stagnancy in the CDMA market in China, Huawei was exclusively awarded China Unicom Tianjins CDMA substitution project in late 2007. The project involves 1,600 TRXs, which make up over 40% of Tianjins total CDMA network capacity.

Sweet harvest
As the cradle of CDMA technology, the United States is home to the largest number of CDMA subscribers. Two of the three largest operators in America utilize CDMA technologies, covering over 100 million subscribers. Among the 46 operators globally who have deployed or intended to implement CDMA2000 1x EV-DO Rev.A networks, eight are from the United States, including the transnational operators Sprint Nextel and Verizon Wireless. With CDMA data services contributing 20% of operators revenue worldwide, the United States receives the largest proportion for CDMA data services, followed by Japan and South Korea. The Great Lakes region covers Chicago and its neighboring areas, and describes the most important economic and industrial center in the United States, next to New York. With modern and developed cities, high population density, heavy traffic and typically tall buildings, the Great Lakes region remains a network coverage headache for telecom operators. Naturally, it was positioned as a focus for network deployment by Leap, who is licensed to provide mobile services in 35 states. Since its foundation, Leap has been striving for a competitive edge with high-quality network services and low service charges. Fully satisfied with Huaweis equipment and services in 2006, Leap selected Huawei to construct 1,300 base transceiver stations (BTSs) and deploy a new network in the Great Lakes region.

While the United States remains the largest CDMA market in the world, India is recognized to be the fastest growing one. According to CDMA Development Group (CDG) statistics, Indias CDMA subscriber base increases by an average of nearly 2 million each month, with a total number of 60 million subscribers recorded in 2007. Coupled with a market scale lying next to the United States, India is viewed by CDMA equipment suppliers as one of the most attractive markets in the world. Reliance is the second largest telecom operator in India and one of the most rapidly growing CDMA operators in the Asia-Pacific region. Its 36 million subscribers account for 25% of the total mobile communications market in India. Positioned as a domestic leader in terms of network coverage, overall call quality and customer service, Reliance was awarded Operator Leadership by CDG in 2007. On December 29, 2006, Reliance signed a contract with Huawei for the commercial deployment of 60% of its CDMA network. The project marked the first time that Reliance introduced a non-U.S. vendor into its existing network. In early May 2007, Reliance sought cooperation with Huawei once again, contracting the company to undertake a CDMA network expansion project that involves nearly 9,000 BTSs and will cover more than 40% of the nations territory. TATA is the second largest CDMA operator in India with a 38% domestic market share. In March 2007, TATA began implementing its goals for improving network quality, attracting CDMA subscribers and further increasing its market share. Launching its large-scale network adjustment project, TATA deployed Huaweis All-IP CDMA core network and wireless access equipment in a number of major cities including New Delhi and Calcutta. China Unicom, the second largest CDMA operator in the world, boasts more than 40 million CDMA subscribers. By November 2007, China Unicom had attracted 4.277 million new subscribers, and this figure is still growing quickly. Offering huge market potential, China is expected to surpass South Korea and become the worlds third largest CDMA market in the near future. In late 2007, Huawei was solely awarded China Unicom Tianjins CDMA substitution project. With its network key performance index (KPI) commanding one of the top five positions, China Unicom Tianjin represents a solid example of effective network operations. Huawei will construct a 1,600-TRX network for China Unicom Tianjin, equaling to more than 40% of the existing CDMA network capacity in Tianjin. China Telecom Tianjin also plans to replace the
FEB 2008 . ISSUE 38

28

MEDIA INSIGHT
remaining equipment of the network with Huaweis in one or two years. and, compared with other vendors, has delivered greater equipment quantities in a very short time. Under Huaweis effective coordination, it took Reliance just 4 months to complete the work that would take other operators several years. Huawei provides professional guidance for long-term network evolution, enhancing Reliances future confidence.

Keys to success
All-IP
Huaweis success can be attributed to its accumulated expertise in the All-IP field. Compared with traditional networking modes, Huaweis All-IP networking offers greater flexibility and its softswitches and IP BTSs can save more than 60% in transmission costs. All-IP networking can help operators provide diversified mobile broadband services such as the transmission of emails with large attachments, online video camera, mobile TV, and video on demand (VOD). After All-IP network cutover, Leaps existing network KPI was significantly improved. After network migration, the covered areas have changed from problematic areas to outstanding performance areas, and the drop call rate (DCR) has decreased from 1% to 0.5%. Moreover, the All-IP networking saves at least 50% in construction costs and OPEX. Leaps CTO, Glenn Umetsu, praised Huaweis capabilities: Our strategic partnership with Huawei allows us to further enhance our focus on delivering the highest quality networks and consumer services while maintaining our leadership position on cost, especially as we bring Cricket services to new markets. Reliance has adopted Huaweis new-generation CDMA2000 All-IP BTSs and BSCs based on the universal carrier-class IP broadband platform and these adopt a modular design supporting IP interfaces. To cover 1,000 square kilometers, the number of required BTSs is halved, and the IP transmission mode reuses existing IP network resources and saves between 40% and 80% in mobile access network transmission expenses.

Localized solutions
To successfully expand its international market position, an enterprise must possess strong localization capabilities. During its cooperation with operators, Huawei put into play its design expertise to establish CDMA solutions that fully satisfy customer requirements. In the first-phase project with Leap, Huaweis BTSs were deployed in Reno, Nevada. Situated near the desert, its outdoor summer temperature exceeds 40 degrees Celsius for a long time, which melts many vendors BTS connectors. Conversely, Huaweis outdoor BTSs remain resilient to the extreme conditions, thanks to their unique heat exchange technology. In a further example of localized solutions, Indias geography also required condition-specific BTSs given the nations complex landform, monsoons, high temperature, tendency for power failures and instability, and fire and theft risks. Widely deployed in Reliances network, Huaweis BTS 3606AC-R is designed to handle high temperatures and power failures in India. The product includes built-in batteries that enable 4 hours of uninterrupted power supply, and its heat exchange technology has led to savings of 60% in power consumption. Equipment rooms in some Indian regions are small and simple, and road conditions are poor for transportation. For these areas, Huawei supplied its BTS3606C-R which supports 4 TRX and 6 sectors and promotes minimal labor and rapid installation. To date, the BTS3606C-R has been widely deployed in dense urban areas, such as Gujarat and Tamil Nadu. Costs associated with site leasing, installation, and operation and maintenance (O&M) have all been greatly reduced. India, North America and China are three major markets in the global CDMA industry. CDG statistics indicate that there are 421 million worldwide CDMA subscribers, which has increased by more than 100 million per year since 2005. The Asia-Pacific and North America continue to boast the widest CDMA technology application and largest subscriber quantities, with 49% of all CDMA subscribers residing in the Asia-Pacific region and 32% in North America. Huaweis 2007 successes have paved the way for its subsequent development and achievements in the CDMA field. Huaweis continuous investment and innovation will no doubt contribute to the global CDMA development. Editor: Liu Zhonglin liuzhonglin@huawei.com

Fast response
Huaweis rapid response capability has played a key role in making numerous breakthroughs and has won broad recognition from operators. Leaps CDMA network previously supported 56K signaling, which falls below the international standard of 64K. For this reason, Huawei had to pass an array of stringent testing criteria when it first entered the network. Huaweis response speed was amazing - only 7 days were used to finish the whole process that covered protocol analysis, problem relocation, development, testing, commissioning, and online interconnection. According to John Saboe, Leaps engineering Vice President, It would take other vendors a month to solve such network problems. Reliances Logistics Director offers further testimony: Huawei is outstanding in terms of delivery 29 FEB 2008 . ISSUE 38

HOW TO OPERATE
Fixed network transformation - An imperative for NGN

Huawei Technologies

The international roaming service is bringing greater profits for mobile operators, and currently comprises 10% - 18% of European mobile operators business revenue. Nevertheless, as the demand for lower tariffs for international roaming becomes more pervasive, major mobile operators are beginning to research methods globally for providing the lowest international roaming tariffs, while delivering services that are similar to those of a home network. This, of course, is under the precondition that operators business revenue remains ensured.

International roaming leads everywhere

By Xiao Qian

FEB 2008 . ISSUE 38

30

HOW TO OPERATE
International roaming leads everywhere

t the end of November 2007, around 30 top global operators including NT T DoCoMo, AT&T, Vodafone and T-Mobile convened in Beijing to discuss International Roaming Services Cooperation for the 2008 Beijing Olympic Games. Held by China Mobile, the conference focused on identifying ways to yield high-quality and convenient mobile roaming services to visitors from all over the world during the Games. Mr Wang Jianzhou, the president of China Mobile, suggested that operators should greatly reduce their international roaming tariffs, including those for voice services and data transmission. As such, China Mobile would be willing to provide preferential services for all international operators. Cooperation for the Beijing Olympic Games represents only one of the trials involving international roaming services that have occurred over the past few years. Depending on the scenario, international roaming can be categorized in two ways. The first concerns roaming among a single transnational group network and the second across different group networks. The latter, moreover, can be subdivided directionally into inbound and outbound.

Roaming among a single transnational group network leads itself to lower charges, given that the benefit is exclusively enjoyed within the group, and associated services are more easily acquired due to uniform group deployment.
roam to another network for an additional 0.75 for each connection, while other fees remain the same as in the UK. Calculations exhibit that a 1-minute call gives a tariff saving of nearly 10%, which rises to 50% for 2 minutes, before peaking at 90% after 4 minutes. The Passport plan has successfully reduced roaming tariffs via a roaming alliance that has demonstrably stimulated international roaming traffic growth and enhanced high-end subscriber loyalty to mobile services. By June 2007, the number of registered Passport subscribers had reached 6 million, including 62% of Vodafones highend customers. Moreover, commercial customers increased their average international roaming call duration by 15%, post-paid individual customers by 39% and prepaid individual customers by 105%. Vodafone Passport represents a successful attempt to lower international roaming tariffs, despite the fact that it has not yet joined its service to the networks of different operators.

Roaming in a single group network

Roaming among a single transnational group network leads itself to lower charges, given that the benefit is exclusively enjoyed within the group, and associated services are more easily acquired due to uniform group deployment.

Vodafone Passport
As early as July 2005 Vodafone Group launched a Passport plan in which all mobile subscribers who registered for this service could benefit from close to local prices when roaming through Vodafones subnets and preferential networks. Cu r re n t l y, t h e n u m b e r o f g l o b a l networks joining the Vodafone Passport plan has reached 21, including some nonEuropean countries and regions such as Australia and Japan. Vodafone UK, for example, allows a British subscriber to 31 FEB 2008 . ISSUE 38

home country numbers at a local tariff rate for local calls. A nominal 10% was added for international calls between the three countries, while received calls remained free. Prepaid subscribers, moreover, could recharge their accounts with a Celtel rechargeable card in any of the three countries. In the end of 2007, One Network was expanded to twelve Celtel African subnets, with existing plans in place to gradually extend this to fifteen. Confronted with the reality of Celtels competitive advantage following One Networks inception, other operators in Tanzania, Uganda and Kenya - MTN, Vodacom, and Safaricom - quickly formed a roaming alliance under which their KamaKawaida plan was launched in January 2007. This allowed mobile phone calls to be made and SMs (short messages) sent among the three countries at the local tariff. Safaricoms statistics indicate that its international traffic has increased by 400% since KamaKawaida implementation. However, Celtels comparative superiority is reflected by its better coordination in increasing or decreasing different countries roaming revenue. The loss of revenue in one country, for instance, can be compensated by the international traffic and subscriber increase in other countries. For MTN, Vodacom and Safaricom, lower roaming revenue can only be compensated by increasing network traffic and subscribers. The reduction of international roaming tariffs remains in its infancy, and most roaming subscribers focus on tariff comparisons. The greater convenience of the One Network service and thus its enhanced long-term development potential will become gradually evident only if sharp competition spirals international roaming tariffs closer to cost, giving broadly homogenous pricing strategies among operators.

Celtels One Network

In September 2006, Africas Celtel Group launched One Network, the worlds first transnational international roaming service. At first, the Tanzanian, Ugandan and Kenyan subnets in east Africa were included, and Celtel subscribers could roam between them while retaining their

Roaming across different group networks

Domestically or regionally confined mobile operators lack the luxur y of transnational network resources, and larger-scale or transnational operators usually formulate higher international

Huawei Technologies

roaming tariffs to maintain customer loyalty. Thus a significant challenge arises for those operators in terms of avoiding expensive international roaming settlement to provide competitive services? Fortunately, the answer is embodied by Single IMSI Multi MSISDN (SIMM), a transnational roaming service that is divided into inbound and outbound.

Inbound SIMM
Inbound SIMM allocates a temporary local number to a roaming subscriber for making and receiving local calls, and the tariff is set at a local rate. These are processed through the local network, along with service availability, billing, recharging, and other associated services. The ease of applying for inbound SIMM adds to its value given that entry into another country initiates an SM from the SIMM service, the activation of which is determined by the receivers reply to the SM. This strong promotional tool increases traffic by actively pursuing subscribers, and the service attractiveness is enhanced by the fact that a local SIM card is unnecessary to gain network admission. Moreover, inbound SIMMs prepaid status eliminates deliberate fraud and payment default risks. Nevertheless, inbound SIMM has its defects. The need to recharge before use causes some subscriber loss, and the difficulty of dealing with a non-extendable remaining balance discourages some from taking up the service. Moreover, significant numbers of international roaming subscribers activate SIMM to benefit from local tariffs, and a number of operators are concerned with potential reductions in international roaming revenue as a direct result of SIMM. Actually, the answer to this problem is whether operators can compensate for revenue losses due to international roaming services by increasing both traffic and subscribers. These two aspects -traffic and subscribers - are to an extent symbiotic, and exert a multiplier effect on operators revenue. Marketing via advertising and promotions prior to a given subscriber traveling provides an effective, proactive tool to increase subscriber numbers. Flight brochures can be utilized to introduce service registry and use procedures, which

encourages SIMM usage after reaching a destination. A rational approach can be taken with regard to service tariff formulation, such as a 10% - 20% increase on local tariffs, so as to reduce the influence on international roaming revenue settlement. Effective service package design can stimulate traffic, and number reservation with a rental fee will encourage the loyalty of frequent travelers to a given destination. The difficulty operators face in terms of balance return can be ameliorated by offering a small-amount recharge mode, extending the marketing channels for recharge cards and promoting recharge convenience. Given the enormous number of Muslims who embark on a pilgrimage to Mecca each year, Saudi Arabia reflects a country with optimum inbound SIMM conditions. At the end of September 2007, Saudi Arabia STC officially launched its inbound SIMM for commercial use by issuing a complimentary call fee of 5 Riyals (USD1.5) beforehand, thus obviating the need for prior recharge. Promotional activities could be comfortably simplified to short welcome SMs, and this was demonstrated as the first month of the service secured 50,000 subscribers, a fact that testifies to the services potential.

Outbound SIMM
Outbound SIMM allocates a local number to a subscriber from a visited countrys cooperative operator before entering the country. Arrival stimulates network access and preferential tariff activation. Host operator cooperation in the visited country is essential in terms of number and mobile service resources, while the subscribers home country operator should be responsible for service provision, billing, number management and marketing, and fee forwarding to the host operator for number and network rental. Therefore, the role of the operator of the home country is more like a special mobile virtual network operator (MVNO), which rents the host operators network and number to provide the outbound subscriber with mobile services in the visited country. For the home country operator, the outbound SIMM service possesses the

advantages of avoiding a high international roaming cost, extending the service range for network subscribers, enhancing QoS, brand equity and subscriber loyalty, and reducing the ratio of local SIM cards used by outbound subscribers. For host country mobile operators, the outbound SIMM service gains considerable high-level roaming subscribers from the cooperative operator, thus greatly enhancing their own network traffic. The current outbound SIMM business describes an MVNO network traffic wholesale and number resources rental international roaming model. This reflects a shift from the previous system within which the host country operator controlled pricing, while the home country operator passively operated. The outbound SIMM surrenders operational initiative to the home network, thus facilitating a win-win situation through cooperation. In March 2006, China Mobile Guangdong and China Resources Peoples Telephone Co. Ltd., Hong Kong, partnered up to launch a GuangdongHong Kong SIMM service, targeting China Mobile GoTone subscribers who frequently travel between Guangdong and Hong Kong. To date, around 200,000 people have subscribed to the service, and, to register, a GoTone subscriber sends the SM BLYKDH to 10086 before receiving a Hong Kong number that is allocated by the system. Subscribers have to pay a monthly rental fee to retain the number, thus guaranteeing that China Mobiles SIMM service revenue does not fall below that of the previous international roaming service. Furthermore, the actual rise in traffic has in turn increased income. Over the past two years, there have been various international roaming services with diversified features and different requirements for operators. In the context of local conditions, mobile operators must make available the most appropriate roaming services, and the prevalent current problem remains low tariff provision. However, innovation is sure to mitigate this issue and, in the future, international roaming will cover ever ywhere with service experiences that mirror domestic conditions. Editor: Xu Peng xupeng@huawei.com
FEB 2008 . ISSUE 38

32

HOW TO OPERATE
Intelligent heart of mobile Internet

Intelligent heart of mobile Internet

ith the fast development of mobile Internet, mobile data traffic volume increases rapidly. However, restricted by technical means of service control, mobile operators have been mainly adopting the traditional pipe lease operation model, and only earning limited pipe rental fees. As a result, the traffic volume has tremendously increased but the income has not kept pace. Then how to implement intensive management of bandwidth resources and maintain continuously growing profits?

By Chi Zhentao & Zhang Baoguang

make a profit on the surging data traffic by shifting from pipe lease operation model to intensive operation? The transition of mobile data service operation calls for the emergence of an intelligent packet core network, which, based on service awareness, has abundant functionality like content-based billing, service control, bandwidth management, service analysis and personal firewall, etc. The intelligent packet core network gives new vitality to mobile data service operation, and is regarded as the intelligent heart of the mobile Internet. Service awareness means to distinguish the various services carried by the network through deep inspection into the service data packets. Operators can charge according to the services that the users actually use, as is called contentbased billing. The control of services is totally dictated by the operators, who can strategically control the access of services to the network, and assign different

Intelligent packet core network

The traditional mobile packet core network is no more than a transparent channel for service bearing. Since it cant distinguish from the varied streams of services passing through the channel, all services are processed as bit streams 33 FEB 2008 . ISSUE 38

without discrepancies. Such a channel is usually known as a dumb pipe. Since packet core network can not identify different services accurately, operators have to use pipe lease billing based on traffic or time instead of their virtual values to perform flexible billing, management and control. For example, P2P download of flat rate users has accounted for 50% - 80% total traffic, and munched a great deal of bandwidth resources, but generated zero additional income. On one hand, volume-based billing system is confusing and unattractive for the ordinary users because data traffic volume is difficult to understand and measure. On the other hand, the simple time-based billing system, especially the surge of data traffic catalyzed by monthly flat rate billing, has worsened the pipe transparency for operators day by day, tipping the balance between operation and profit. How can operators promote mobile data business effectively, and continuously

Huawei Technologies

bandwidth resources to different services. For example, with P2P services, operators can deploy specific restriction manners or billing policy to allow network resources to converge towards the value services. With service awareness, operators can accurately grasp the characteristics of user behaviors when introducing and deploying new services. In this way, operators can then implement and finetune the strategies according to the service implementation. The commercial application of mobile broadband means more demanding security requirements. Precise service awareness allows you to control and filter services that might threaten network security. Meanwhile, operators can provide flexible rules and policies for users, and set up personal firewalls to improve the security level for commercial customer services and steer the smooth deployment of commercial applications.

In order to reduce the impact of service awareness on network performance, Huaweis high-performance intelligent packet core network is built on its inhouse advanced router platform. It adopts the separation of control and data, and features a unique distributed architecture for the independent deep packet inspection engine. Signaling, data plane and service awareness are based on different processors respectively. This helps obviate your worries since it not only can enhance service analysis ability, but also avoid degrading system capacity and performance, after deep packet inspection is enabled. Hu a we is i n t e l l i g e n t p a c k e t c o re network effectively protects your investment, which is fully compliant with 3GPP standard and thus guarantees convenient equipment purchasing, service

component interoperability and service upgrades. It also makes deployment flexible, reduces the comprehensive cost, and secures the stability and continuity of service policies. The deployment of intelligent packet core network is not accomplished in one move. New applications and services are constantly emerging. The key to success in the mobile data business is the rapid deployment and adaptation of new services to meet user needs and improve user experience. With its sophisticated and highperformance router platform, powerful research and development strength and abundant experience in the IP field, Huawei is able to implement in-depth optimization and customized development efficiently, helping you to quickly deploy new services and win the competition. Editor: Xu Peng xupeng@huawei.com

Here is the best choice

The intelligent packet core network has realized effective control and management on data services, bringing operators not only profits but also challenges. First of all, service awareness requires indepth analysis of the data packets, which takes up a great deal of system resources. This will seriously degrade equipment capacity and performance, causing a huge impact on the network. Also, an intelligent packet core network involves obtaining user and service information, service control, and the deployment of billing policies. A lot of different equipment entities or interfaces are needed to realize those functions. During the deployment process, the 3GPP incompliance of equipment and interfaces will lead to high-cost transformation, upgrade and maintenance. Finally, in regard to the complex and varied mobile data services, consumer demand changes fast. Those who cant support and respond rapidly may lose market opportunities. Through years of efforts, Huawei has launched the high-performance intelligent packet core network solution, effectively solving these problems and winning a great reputation in the industry.

Link

Huawei to build European Packet Switched Core Networks for T-Mobile International
In December 2007, T-Mobile of Deutsche Telekom chose Huawei to build its intelligent packet core network in Europe, covering five European countries, including Germany, England, Austria, Holland, and the Czech Republic. Mr Joachim Horn, the technical director of T-Mobile said, Through adopting Huaweis leading solution, T-Mobile expects to offer excellent and reliable services to the users, and realize our strategic commercial goal. We see Huawei as a reliable and trustworthy partner, and we look forward to long-term cooperation with each other. "We are delighted to continue our work with T-Mobile," said William Xu, President of Huawei Europe Region and Executive Vice President of Huawei, "We look forward to commencing work on this latest project. At Huawei, besides providing advanced solutions featured with large capacity, high performance, intelligent billing and full 2G/3G integration, we are committed to providing fast delivery and excellent service, ensuring a win-win outcome for T-Mobile."

FEB 2008 . ISSUE 38

34

HOW TO OPERATE
Seeking for a winning PTN strategy

odafone, by mid-2006 had deployed high-speed downlink packet access (HSDPA) services in most Western European countries, providing Vodafones 3G subscribers with varied and richer mobile data service experiences. This also ramped up the development of global mobile data services like mobile Internet, music download and online gaming, leading to a marked increase of data traffic. The mobile backhaul transport network is saddled with increasing pressure from bandwidth limitations. Since 2006, Vodafone has been searching for and verifying new transport solutions. After numerous discussions with leading vendors in the industry, Vodafone gradually settled on adopting the PTN platform to optimize and reconstruct its mobile backhaul transport network. Many other mainstream parties are highly interested, including BT, DT, Orange, Huawei, Alcatel
35 FEB 2008 . ISSUE 38

Lucent, Nortel and Cisco, as well as important standardization organizations like the ITU, IEEE and IETF. Various solutions and strategies have been put forward after heated discussions. Some questions still remain unanswered: Is the next-generation synchronous digital hierarchy (NG SDH) already at the end of its lifecycle? Which technology is preferred, transport multi-protocol label switching (TMPLS) or provider backbone transport (PBT)? Is PTN now a mature technology? The solution lies in one two-part question. What is the proper method for enabling the evolution from NG SDH to PTN, and when should it be implemented? It is now commonly accepted in the industry that compatibility is the key to seamless evolution in the mobile backhaul transport network from NG SDH to PTN. Why?

Huawei Technologies

Seeking for a winning

Service development requirements
The All-IP concept is so popular in the telecom industry that a discussion not based on All-IP is outdated. People have great expectations for All-IP network a r c h i t e c t u re t h a t c a n b e a r s e r v i c e s through IP technologies while providing high flexibility and efficiency in service management and control. The All-IP represents a long-term pursuit of service flexibility and controllability. At present, all talks about the transport platform in the All-IP architecture are based on the assumption that the network will complete its evolution to All-IP very quickly. Many discussions emphasize that IP transformation is actually emergent at all network layers due to the rapid development of data and video services. Data services have been developing fast over the past few years and in some areas, the annual compound growth rate has been over 300%. Yet, data services have contributed only a small portion to the total revenue of telecom operators. Even in Western Europe, where data services are

In light of the All-IP trend for mobile networks, its crucial that mobile backhaul transports are optimized and reconstructed. What is the best strategy for the mobile backhaul transport network evolving into a packet transport network (PTN)?
By Bian Mingang

PTN strategy
widely used, the average proportion of data service revenue to the total telecom revenue is less than 15%. An optimistic estimation is that in 2010, data services will contribute to 30% of total revenue. At present, data services might be the only way to stop the average revenue per user (ARPU) from declining. But it is hardly possible that such services will become a major revenue source to telecom operators in the coming years. Therefore, real-time voice services are
Bandwidth

still vital for telecom operators in the short run and remain a focal point for network optimization and reconstruction. The trend of service revenue changes indicates that the evolution to All-IP will be a long process. From the perspective of service bandwidth, and after discussions with mainstream operators based on the worldwide development of mobile services and subscribers, we conclude that various granules will coexist for a long time on the

IP RAN

R99/R4 IMA E1 GSM TDM

2006 2007 2008 2009 2010 2011 2012 2013 Year

Fig.1 Evolution trend of various granules

FEB 2008 . ISSUE 38

36

HOW TO OPERATE
Seeking for a winning PTN strategy

access side of mobile networks, as shown in Fig. 1. Asynchronous transfer mode (ATM) granules will exist for a long time with the introduction of 3G. In 2008 - 2009, the IP radio access network (IP RAN) will be introduced and gradually begin large-scale applications. Later, the IP RAN will bear most mobile data services. The service bandwidth of the GSM network might be slightly decreased as subscribers migrate to 3G networks. However,
Cost

with GSM/R99 base stations in at least 3 - 5 years, or gradually replace GSM/R99 base stations. Base station equipment of different systems will coexist in mobile networks for a long time. With the understanding that All-IP is a long-term and complicated evolutionary process, compatibility becomes a basic aspect to be considered in the optimization and reconstruction of transport platforms. Such compatibility involves not only PTN compatibility with TDM, ATM and IP services, but also its compatibility with NG SDH, covering services, network features, management and maintenance. Compatibility is actually the most important feature of the PTN platform.

PTN 70%

Results from multiple technology choices

PTN is a next-generation transport platform gradually recognized by the industry after years of discussions. The name indicates two important characteristics: packet and transport. PTN will be a packet-orientated network solution that supports basic features of the transport platform. It will not only enable packet-based switching, flexible broadcast/ multicast, flexible QoS control and GE/10GE interfaces, but also realizes end-to-end service

NG SDH

2006

2007

2008

2009

2010

2011

2012

2013 Year

Fig.2 Cost curves for NG SDH and PTN

PTN is a next-generation transport platform gradually recognized by the industry after years of discussions. The name indicates two important characteristics: packet and transport.
because the original bandwidth of GSM services is not high, a lot of subscribers will remain in the GSM network due to their needs for basic telecom services like voice services and short messaging service (SMS). Time division multiplexing (TDM) granules will exist in the network for a long time. Operators have been consistent in the overall development trends despite their differences in service development plans, user backgrounds and operation modes. In addition to granules, service revenue and networking equipment will experience a long evolution process, and the network structure adjustment will also be lengthy. HSDPA services are still concentrated in business areas or urban areas, despite rapid development. The IP RAN will coexist 37 FEB 2008 . ISSUE 38 management, end-to-end operation and maintenance (OAM), protection switching, synchronization, timing, and native processing of TDM services. The major technologies that support PTN are: TMPLS, PBT, multi-protocol label switching (MPLS) tunnel control, service encapsulation represented by pseudo wire emulation edge-to-edge (PWE3), as well as IEEE1588 clock synchronization, generalized multi-protocol label switching (GMPLS), and other technologies under development such as OAM and protection switching. As most of the technologies above are still being considered, they have aroused controversy. Most disputes are about the choice among the three tunnel control technologies, namely, TMPLS, PBT and

Huawei Technologies

MPLS. In 2006 - 2007, after in-depth discussions about technical maturity, compatibility, inheritability and upgrading capability, there is a consensus in the industry that the technologies supporting PTN, have much more in common than differences. The technologies might adopt different processing mechanisms in encapsulation formats and protocol labels, but they realize and support the same network features. Examples include multi-service bearing, end-to-end protection on virtual channels, SDHlike maintenance and management operations. Such features are the transport requirements described in the PTN platform, and they are also basic features inherited from the NG SDH platform. The choice of technology is closely related to the application scenarios and implementation costs. Whatever technology is selected, the basic standard is that it should be compatible with the NG SDH network while enabling network transport features.

Need for investment protection

Many TDM ser vices cannot be discarded during network evolution. In addition to TDM services, existing TDM network resources cannot be discarded either. After the quick development of mobile services over the past few years, most mobile operators have more or less constructed NG SDH transport networks due to the burden of leased line costs. Carriers that lease circuits to mobile operators have built large NG SDH networks. Other important assets for operators, apart from the physical equipment resources, are actually the end-to-end circuit management and maintenance modes formed in transport networks, their rich experience, and human resources. Then how can operators maximize inheritance of existing resources during network optimization and evolution? During gradual evolution, SDH-like management and maintenance as well as SDH interfaces will help PTN equipment make minimum impact on the existing network. More importantly, they can be a reserve for the existing management and maintenance modes and teams.

Most cost-effective evolution scheme

Network evolution is a long process and many evolution schemes are available. Evolution costs should be the next consideration. Two factors to consider are timing and cost: When will operators start using the PTN equipment? What is the real cost of switching from NG SDH to PTN? After years of large-scale commercial applications,

NG SDH equipment is quite cheap in procurement and maintenance. In contrast, as the PTN equipment adopts a lot of new technologies and is not put to largescale commercial applications, and as the R&D and trial application costs of vendors are not amortized, costs of PTN equipment are much higher than those of NG SDH equipment. The cost of a TDM E1 in a PTN is 2 - 3 times as much as that in a NG SDH network, and the cost of a GE interface in a PTN is 1.5 times as much as that in a NG SDH network. The network evolution costs should be calculated according to the service evolution trends. NG SDH and PTN enable TDM/ATM/IP multi-service transport through various technical systems. Due to the differences in the basic technical systems, different costs might arise in different service scenarios. By calculating different scenarios for service evolution, we have worked out the following two cost curves for NG SDH and PTN, see Fig. 2. The conclusion made by analyzing different scenarios and considering such elements as technical cost decrease and chipset maturity in the future is: When the packet traffic occupies over 70% of the bandwidth, the application cost of PTN will be lower than that of NG SDH. However, this wont occur until 2009 or later. NG SDH will remain a most important solution in most network applications for 2008 in terms of service requirements and technical costs. But PTN will be gradually deployed in network layers where packet services take a big proportion. Therefore, compatibility of PTN will be of great importance. PTN construction will result in significant optimization and reconstruction on the existing NG SDH network, or the PTN will possibly replace the NG SDH network. What evolution strategy should be taken to maximally decrease costs during this process? In long-term network evolution, IP services will gradually become the mainstream granules. TDM and ATM granules will still exist for a long time, although they will be gradually decreased. In a NG SDH transport network, service interface cards account for 60% - 70% of the equipment investment. Whether or not the huge number of TDM and ATM service interface cards configured in the existing NG SDH networks can be inherited in the PTN is one of the most important concerns for the industry. The service interface cards in Huaweis PTN equipment are compatible with those in the existing NG SDH networks. As a result, 60% - 70% of existing equipment investment can be protected when the NG SDH networks evolve into PTNs. Currently, this is the most cost-effective PTN evolution scheme available in the industry. Editor: Liu Zhonglin liuzhonglin@huawei.com
FEB 2008 . ISSUE 38

38

The Ferrari of Telecoms: racing towards record prosperity

By Wang Yudan

39 FEB 2008 . ISSUE 38

INTERVIEW

elecom Italia is a complete telecommunications group, spanning fixed-line and mobile telephony, Internet access, multimedia content, TV, news, and so on. The group combines tradition and experience with innovation and quality through the Telecom Italia, Alice, Telecom Italia Mobile (TIM), La7, APCom, MTV Italia, and Olivetti brands. Its tradition and experience also underpin the groups new technology offerings. The group currently serves 35.3 million mobile customers in Italy, 29.2 million mobile customers in Brazil, 22.8 million fixed-line customers in Italy, and 10.7 million broadband users across Europe. A reporter with Huawei Communicate recently interviewed Mr Maurizio Marcelli - director of IES Wireless Access, TIM - on Telecom Italias perspective on innovation, indoor coverage with UMTS 900M, TCO saving, wireless access infrastructure, and more.

Reporter: How does Telecom Italia develop its competitive advantage and maintain its leading position in such a competitive market? We know that Telecom Italia has always considered innovation as a key element of market positioning. Maurizio Marcelli: Okay. Id like to describe how Telecom Italia sees innovation. In Telecom Italia, particularly within our technology department, the Telecom Italia Lab is our way to approach innovation. More than 700 people are working in this area specifically to support innovation, new product engineering, and new services. Our competence center, the Telecom Italia Lab, has internal knowledge related to all elements of the value chain, starting from the handset, home environment, and also various technologies, fixed and mobile. This investment is very important to our operations. The main center is in Turin, but our Rome and Milan facilities are also involved in these specific activities. We have put a lot of efforts in generating innovation through patents and in supporting initiatives with our manufacturers, as well as with our partner Huawei, to provide value through new ideas and innovations. So for us, this is a key element in a market that is based on standard products and standardization. We are totally committed to having differentiation and proven quality for the end users in the product and new services areas. Reporter: Telecom Italia is now progressing with 3G deployment, and has already launched HSDPA. What do you think will be the most outstanding technological innovation in your network within a time frame of 2 years? Maurizio Marcelli: You know we had a positive experience in the 2G world and it is a success story. Telecom Italia Mobile is a leading provider in Italy and we also have much important experience abroad. The strategic factor for repeating this success story in the 3G arena is to keep in mind a few important facts. First of all, 2G is success because of its economy of scale

and capability for providing a global solution. Up to now, this is something that is really true in the market. 80% of the mobile market today is GSM. Second, the dream now is that in a few years, 3G could replace 2G as another success story. To guarantee this really lucky path, we, operator and manufacturer, all the ecosystems, must work together, to target the standardization of the long-term evolution (LTE) architecture. We are really committed to implementing as soon as possible, this kind of architecture in the field. We can then ensure that our company maintains its current position in the global market. Furthermore, this is a great opportunity to have standardized solutions that could provide duly priced terminals, duly priced infrastructure, and guarantee top of the line voice service as well as SMS, the basic service. Last but not least, we have to build a new business model that is dedicated to data. We expect that in 2 years, we can set up a business model for data on top of voice and SMS, 3G standard architecture, while having LTE architecture as our target. Reporter: I see. So you believe that data development in the 3G field will be a main focus in your 3G market? Maurizio Marcelli: Absolutely. Reporter: Which is more about the indoor coverage of the UMTS signal? We know that sometimes in very complex cities with thick walls, maybe the indoor coverage is not as good as the 3G case that you refer to. So what is your opinion about that? How is Telecom Italia strategizing to recover this gap? Maurizio Marcelli: I absolutely agree with you. The opportunity to provide our end users with a real quality service indoors is a key factor to ensure that in addition to voice and SMS service; also data service could be perceived as a quality factor. And no doubt about the fact that 3G today doesnt perform indoors. This is an element that doesnt allow us to have the
FEB 2008 . ISSUE 38

40

ramp-up we would expect for this kind of new service. So we are really committed to investigating and supporting the solution that could improve dramatically the indoor level of quality. Currently, we see two approaches that are realistically possible. The first approach is to share with other operators and regulatory entities to define the opportunity to reuse the 900MHz frequency we use today for GSM services that could also be used for 3G. This will enhance the performance that we can obtain from 900MHz indoors and also allow for better redesign of outdoor coverage infrastructure. This is a general approach. The other innovative approach that could provide us also with the synergistic contribution from the fixed line, is to adopt a solution based on the Femto Cell. This is something new. It could be seen not only as a way to implement a better level of signal indoors, but also to provide new services. We are in the process of defining a new way for the end users to have in the home environment, a new device that could be a great tool for supporting new and complex services. So these are two ways to improve quality but also new approaches to multimedia offerings for the customer. Also the Femto Cell could give us a more flexible approach for the defining services. Reporter: Now I want to ask your opinion on managing another important issue: how to save TCO. We know that all operators nowadays are extremely interested in lowering the equipment cost and expenditure, but it is no more than 30% of TCO. As a matter of fact, the OPEX has always been the biggest part of all the expenditures. Are you analyzing ways to benefit from innovation to lower the OPEX in your network? How could Huawei contribute? Maurizio Marcelli: We absolutely believe that Huawei can make a valuable contribution. One of the reasons that Telecom Italia selected Huawei was their ability to substantially contribute. I would like to highlight the fact that on the last occasion we had for providing HSDPA in the Telecom Italia network. Another reason that we selected Huawei is also due to our evaluation in the TCO, and the solution you can provide for us to minimize OPEX. It is safe to say that we are paying maximum attention to this topic. And also in the future, we have the intention to stress this as a value, an absolute value for Telecom Italia. How significant is innovation in this matter? Our consumption, square meters, and innovation could provide us with a competitive advantage while having the same results for the end users. Once again, I would like to stress that we have hundreds of people devoted to innovation in Turin, Rome, and Milan and we expect that Huawei will cooperate with our team in investigating the best way to minimize TCO. In the future, we do not want non-standardized technology in our network. We can maximize the final results, having the best know-how, the best conditions 41 FEB 2008 . ISSUE 38

for investigation, while maintaining the integrity of the Telecom Italia infrastructure, the Telecom Italia technology, and the Telecom Italia approach to our market. Together, we can have superior results that could be the differentiator between us and our competitors, and realize the best return on investment, such as HSDPA for instance. Reporter: We are now stepping into the All-IP era. How does this affect the wireless access infrastructure in your network? Are you looking for new equipment to cover this All-IP criterion? Maurizio Marcelli: As you know, I am responsible for wireless access in Telecom Italia. We started a couple of years ago trying to maximize our competitive advantage and have Italys biggest IP backbone. Since then, we have tried to connect all of our network elements to this IP backbone. So the IP interfaces in all network elements could help Telecom Italia to maximize the economical benefit from the investment we have in the IP backbone. This is a general trend and up to now we have seen many cases that are valuable and efficient solutions interconnected to our IP backbone and network elements. So the cooperation with Huawei in the area could help us to have this kind of solution in the field, and to have return on our investment in the IP backbone network in a very short time. Reporter: Finally I have to ask the most important question in regard to the selection of a new partner. We know that the selection of a new partner, or new vendor from your vendor list is a very strict process in Telecom Italia. We have been cooperating for quite a number of months. Which criteria do you use to select Huawei as your new working partner? How about the progression of cooperation with Huawei? Any suggestions on improving this cooperation? Maurizio Marcelli: We are very happy to have Huawei as our partner and vendor in mobile access. We expect you continue to emphasize the value. There are several reasons why we selected Huawei for HSDPA. The first is that in the competition arena, you are a player that is quite able to emphasize the economic scale to the cost, with the highest grades for functionality and innovation in your products. According to the opportunities in the competitive market, you provide the best economic results for the operators, and excellent performance for the end users. So these are the two key factors we expect you to keep your eyes on regarding the top 10 topics you will discuss in the future with Telecom Italia. In the end, Id like to emphasize that, its essential to listen to your customers, as the customers know what they want. Reporter: Thank you again for the ideas you shared with me, and we hope to talk more with you again in the future. Editor: Zhou Huajiao zhouhj@huawei.com

INTERVIEW

Vitality of mobile broadband

t the beginning of 2007, Huawei set up a goal, In the next five years, Huawei will be committed to leading telecom networks and services to the All-IP FMC era, and thus becoming a reliable partner of operators in their transformation and development. The Wireless Network Product Line of Huawei chose Leading Mobile Networks to IP as its theme. What are the significance and value of IP to mobile operators? How do overseas operators view the IP-based network evolution? What changes will IP bring to operators network operation and maintenance? With these questions in mind, a journalist with Communications Weekly interviewed Zhao Ming, Vice President of Wireless Marketing Dept, Huawei Technologies Co., Ltd.
By John Lee from the Communications Weekly

Mr Zhao Ming is the vice president of Wireless Network Marketing for Huawei Technologies. He is responsible for product management in the Wireless Network Marketing Department.

Reporter: What are the significance and value of IP to mobile operators? Zhao Ming: First of all, the future development of mobile broadband is sure to be integrated with IP, which is the source of vitality of mobile broadband. There is a more and more obvious tendency for wireless mobile communications to evolve in the direction of broadband, and for GSM to evolve into GPRS and EDGE. More and more mobile data services will be introduced during the process of such an evolution. In terms of 3G, the peak uplink/ downlink rate was only 384Kbps when the 3GPP launched the R99 version. However, after HSDPA is introduced at the R5 phase, the maximum downlink rate will amount to 14.4Mbps. The year 2007 has seen widespread applications of the 7.2Mbps downlink rate worldwide. After HSUPA is introduced at the R6 phase, the actual and the theoretical maximum uplink rates will reach 1.92Mbps and 5.76Mbps respectively. At the HSPA+ phase, the maximum downlink rate can reach 42Mbps and the maximum uplink rate can reach 11Mbps. In the 4G era,

the peak downlink rate may amount to 140Mbps or even higher, with the peak uplink rate exceeding 50Mbps. Under this circumstance, it becomes harder and harder for the traditional transmission mode to meet the requirements of the evolution of mobile networks in the direction of broadband. The annual rental fees for one E1 in Europe are about EUR5000, and one E1 only provides a bandwidth of 2MB. If HSPA is to support a downlink rate of 14.4Mbps, a transmission resource of about 20MB is required even if the average traffic is about 6Mbps in a community and 3x1 base stations are deployed. In this case, 10 E1s have to be rented, incurring total annual rental fees of EUR50,000 to EUR60,000. In view of this, if the problem with transmission is not solved, it will be very hard for mobile broadband to become a reality. Se c o n d , v i e we d f ro m t h e m o b i l e communications platform, the core network and the bearer network are already IP-based. The IP-based platform of the wireless access network is conducive to the improvement of the overall efficiency
FEB 2008 . ISSUE 38

42

of mobile networks. Last but not least, viewed from the trend of service development, all services in future will be carried over the packet switched domain. Thus, the network will eventually evolve in the IP direction. There is no longer such a concept as circuit switched domain in Long-Term Evolution (LTE), which best illustrates this point. Reporter: What is Huaweis advantage in leading mobile networks to IP? Zhao Ming: Currently, competition in the mobile communications field is no longer limited to power amplifier and baseband processing technologies. Instead, the focus of competition has shifted to the overall capabilities in transmission, integrated products, IP, radio frequency, algorithm, and understanding of the networks. Compared with other vendors, one of the advantages of Huawei is that it has the most comprehensive range of communication product lines in the industry. For example, in products like base stations and controllers, we have integrated advanced technologies in fields like broadband, transmission and data communications. Huawei is capable of integrating technologies, experiences and capabilities from different fields into our base stations. This also reflects another trend of the industry: Instead of being a mere pipe, the access network should be perceptive to services. In other words, the access network should be optimized to cater to the voice service, broadband access, instant messaging, and the various mobile multimedia services according to the characteristics of different services. The access network in future is required to be perceptive to services. After mobile communications has developed to a certain degree, more and more fields will be involved. Future competition in the mobile communications field is surely not specific to one product line; instead, it will involve multiple fields such as broadband, transmission, data communications and even services. Basically, Huawei is among the top 3 in each of these fields. By integrating all these fields, we will be able to provide the most competitive products and end-to-end solutions. Currently, we have become fully aware of where our core competitiveness is. Reporter: Just now you mentioned perceptive capability to services. How can this capability be developed? Zhao Ming: The access network is required to be perceptive to key parameters of relevant services, and give top priorities to the guaranteeing of these parameters as much as possible during the service access. For example, the index for the end-to-end delay should be guaranteed for the voice service. Besides, the access network gets to know about the status of the service by identifying system information at 43 FEB 2008 . ISSUE 38

the network side. Currently, Huawei has made relevant optimization oriented at many services at the access side. Our main focus is user experience. We need to focus on customers other than technologies in network construction and optimization. That is also the direction of future development. Reporter: Will early investments in IP technologies increase operators CAPEX? Zhao Ming: In the long run, application of new technologies will help reduce costs. Though investments in a single site or single equipment may increase a little in a short period of time, the CAPEX will actually be greatly reduced if you take into consideration saving of costs in transmission and services as well as future evolution. Currently, more and more services are carried over the Internet. In future, more and more such services will appear. As mobile networks evolve in the direction of broadband, all services will be carried over IP networks. Thus, IP is beneficial to operators overall investments. If IP has already been in place, there is no need to invest more in the ATM of the transmission network. If operators fail to construct future-oriented networks earlier, they may find problems with their initial investment in the foreseeable future. Reporter: When Huawei communicates with overseas operators about All-IP, what are their concerns? Zhao Ming: Since the end of 2004, we have started to discuss with operators the issue of saving transmission resources. After HSDPA appeared in 2005, we put forward the concept of IP transmission. However, we were facing a very big problem then: QoS of IP of the entire network is hard to guarantee. Under this circumstance, we put forward the concept of mixed IP, that is, voice services are still carried over the TDM but data services are carried over IP. In 2005, we put forward such a mixed-IP transmission solution, which was successfully put into commercial application in countries like Japan, the United Arab Emirates, and Singapore. IP networks in Japan are All-IP-based, with guaranteed QoS. But we adopt mixed IP in the United Arab Emirates and Singapore. Currently, one base station of Huawei can support two protocol stacks; and Huawei is now the sole vendor worldwide to provide such base stations. Through communications with operators, we find their top concern is the QoS issue brought by IP. Generally, top operators require long-time tests and trial applications, as they have too many worries: whether the existing services will be affected, whether security will be guaranteed, how to evolve into the IP-based public network, and how to avoid being attacked, etc. Reporter: What changes has IP brought to operation

INTERVIEW
and maintenance of mobile networks? Z h a o Mi n g : T h e I P t e c h n o l o g y h a s b r o u g h t revolutionary changes to network optimization and maintenance. For example, before softswitch was adopted, the number of MSCs of a mobile operator amounted to several dozens, or even hundreds. If new services are deployed, every MSC has to be upgraded and uploaded with services. And one MSC involves hundreds of thousands of users, which makes remote operations impossible. Consequently, several months is needed for service deployment at a time. After IP is introduced, the MSC server is just deployed at the regional level; and each province just needs to upgrade several MSC servers, which makes operation and maintenance of the entire network much simpler. Besides, IP has also flattened the network, and thus reduced the system delay, which will in turn greatly improve user experience. Meanwhile, the network has become much more secure. After the IP technology is adopted, the network can support the N+1 backup and the pool functions. For example, if a certain controller is faulty, data packages on it can be routed to other controllers, thus guaranteeing the reliability of the entire network. However, even though the N+1 backup may be realized in theory in the TDM era, the cost of doing so is too high, thus making the N+1 backup hardly feasible. Reporter: Have any operators raised any special requirements for IP? Zhao Ming: When discussing a 3G network construction with EMOBILE, an operator of Japan, were required to put RNCs only in several key cities in Japan, thus raising very high requirements for delay. We conducted a test by putting RNCs in Tokyo and Osaka and base stations in Hokkaido. We also tested HSPA by configuring an IP transmission simulator in the system, which can be used to change the delay. We and EMOBILE spent quite a long time in verifying our system, and finally proved that our system could fully meet service requirements. Besides, EMOBILE has no traditional networks. Thus, how to realize the clock function is another issue concerned about by EMOBILE. Reporter: What is the goal of Huawei at the next phase in leading mobile networks to IP? Zhao Ming: At the initial phase, we mainly solved the deployment issue of IP-based mobile networks. In future, we will pay attention to the performance of IP-based mobile networks. We will focus our attention mainly on quality and stability of IP-based mobile networks. Our goal is to guarantee the basic network performance even if the QoS of some networks is not so good. Besides, IP will still be a topic frequently discussed in the development of mobile networks. How to realize finer management and how to provide networks to cater to requirements of the various services will be our main focus in future. In future development of the entire Wireless Network Product Line, Huawei will take into full consideration the evolution into the All-IP era rather than limited to WCDMA. Editor: Zhou Huajiao zhouhj@huawei.com

FEB 2008 . ISSUE 38

44

SOLUTION
WiMAX maximizes your potential

maximizes your potential

In October 2007, ITU consolidated WiMAX as a 3G technology by adding it to the official IMT-2000 standards. As operators such as Vodafone, Brasil Telecom and NTT further commit themselves to WiMAX development, the WiMAX market is rapidly expanding. According to the report of Infonetics Research, the worldwide sales of fixed and mobile WiMAX equipment increased by 6% to USD206 million in the third quarter of 2007, followed by a 14% jump in the fourth quarter. WiMAX is gaining momentum.
By Liu Wang

WiMAX

n 2007, Huawei unveiled its new generation WiMAX commercial s o l u t i o n s t h a t f e a t u r e LT E / UMB co-platform infrastructure and integrate 4G technologies such as multiple-input multiple-output (MIMO) a n d o r t h o g o n a l f re q u e n c y d i v i s i o n multiple access (OFDMA). The solutions include gateways, distributed base stations, transmission, network management systems and terminals. In these solutions, WiMAX can be integrated with GSM, CDMA, IMS, NGN and DSL networks, which helps operators to provide a variety of high-speed mobile broadband services.

interoperability of different products and specifications. Through the global deployment of GSM, UMTS, and CDMA networks, Huawei can facilitate WiMAX network deployment based on its rich experience and knowledge regarding customers needs. Huaweis convergent solutions cover WiMAX independent networking, and convergent networking between WiMAX and NGN, GSM, CDMA, and UMTS networks.

reliable evolution of network, and provide customers with manageable VoIP and converged services. Huaweis wireless DSL solution also provides two or three level VPN services and end-to-end QoS solutions to meet the varied requirements of individuals, families and enterprises. Moreover, Huaweis WiMAX system can run on a spectrum ranging from 2.3/2.5GHz to 3.5GHz.

Wireless DSL
Huaweis wireless digital subscriber line (DSL) solution forms a highlight in voice service provision over the WiMAX network. To meet the unique requirements of different network stages, operators can configure their network elements (NEs) flexibly, and can maximize the speed and economy of WiMAX service delivery. Huaweis wireless DSL solution, for instance, can be applied to rapidly deploy a network during the initial stage, so as to realize high-speed Internet access and unmanaged voice services. With the increasing of customer base, the integration of WiMAX with IMS/NGN will ensure the

WiMAX + IMS
The wireless WiMAX + IMS solution combines the advantages of IMS core networks and wireless access technologies, enabling the delivery of various services across a unified broadband platform. With its future-oriented network architecture, the IMS simplifies the service development process, increases service innovation speeds, and reduces OPEX. The IMS provides rich multimedia applications and a platform for killer service development. The WiMAX network is characterized by high-speed wireless access, wide coverage, stability, and can provide a platform for innovative multimedia service. Huaweis WiMAX + IMS solution

Solutions fit into your expectation

With its long commitment to WiMAX research since 2001, Huawei to date has more than 1,200 engineers involved in its R&D. As a major member of the WiMAX forum, Huawei holds more than 100 WiMAX patents and remains committed to 16E 1X and 16 M standards optimization. Within the company, Huawei has adopted a platform sharing strategy to ensure the 45 FEB 2008 . ISSUE 38

Huawei Technologies

benefits from simple operational and management systems and provides services such as unified authentication and billing. Available multimedia services include SharingX (bundled voice and multimedia services), Push to X (one key service access), VCC (voice call continuity), multimedia conferencing, convergent Centrix, and ringback tones.

between different networks.

Serving STC
Saudi Telecom (STC) began deploying the first WiMAX 802.16e-based network in the Middle East in August 2007, covering cities including Riyadh, Jeddah and Dammam. STC, however, faced major problems in broadband coverage and network convergence. Unlike the developed market with universal ADSL access, the broadband penetration rate of Saudi Arabia is less than 2%, leaving many remote areas unconnected. Broadband service provision via cables incurs both high costs and a lengthy construction time, prompting STC to select WiMAX as its major method of realizing broadband coverage. Considering coverage requirements, Huawei partnered with STC to establish a mobile WiMAX solution that reduces the number of sites by employing technologies such as MIMO and OFDMA. In response to the difficulty of site acquisition, Huawei applied the distributed base stations in the WiMAX network. Based on Huaweis application specific integrated circuit (ASIC) and powerful amplifiers, STC saved over 30% in TCO. The distributed base stations are also highly integrated, small in size and light weight, which meets

WiMAX + 2G
For operators with 2G networks, WiMAX facilitates service differentiation possibilities. It boasts the capability of forming a 2G/WiMAX hybrid network, in which a data network rich in multi-media services can be realized by employing the high spectrum and low cost per bit rate of the WiMAX network. Challenges arise when considering how to effectively utilize existing 2G resources in a WiMAX network. Huaweis WiMAX + 2G solution adopts the same site for both WiMAX and existing 2G base stations, and uses the same feeder for transmission. This reduces site space and enables rapid network launch time. The WiMAX and 2G networks also share the same core network for authentication and billing, and these factors combined have little negative impact on user experience. With network evolution, the virtual channel connection (VCC) in an IMS network can ensure seamless switching

operators requirements concerning coverage, installation, and maintenance. STC already possesses 2G and 3G networks into which it hopes that Huaweis solutions can be fully integrated. Based on All-IP technologies, Huaweis WiMAX solutions work smoothly with NGN, IMS and Wi-Fi networks, and are compatible with Long Term Evolution (LTE). This significantly reduces network construction and maintenance costs, and the solutions seamlessly integrate various NEs spanning applications, transmission, rating, authentication, and security mechanisms. Hu a we i h a s t h e e x p e r i e n c e a n d technology advantages in the WiMAX field and its WiMAX 16e solution enables the next generation network evolution, commented Bandar M. Al Qafari, general manager of STCs Network Department. Huawei has successfully delivered more than 5,000 wireless projects, and Im confident that it will provide us with an excellent network that will allow us to provide wireless broadband access service to our subscribers. As a leading WiMAX solution supplier, Huawei has assisted operators to launch their commercial or trial WiMAX networks in Africa, Europe, Russia, United States, and South America. Huawei will continue to play an active role in the development of WiMAX.
Editor: Huang Zhuojian huangzhuojian@huawei.com

FEB 2008 . ISSUE 38

46

SOLUTION

volution from 2G to 3G to 3.5G and to 4G in the future is mirrored each time with significant changes in mobile access technologies, which compels operators to upgrad their networks again and again. However, repeated hardware-based upgrades bring with significant challenges, and have led operators to question - whether this describes the most effective and economical way of achieving network modernization?

47 FEB 2008 . ISSUE 38

Huawei Technologies

Moving towards multi-system integration

By Liu Ping

A new platform is required

Wireless network integration represents an inevitable trend that subsumes a transition from multidimensional competition. To enhance this process, Huawei has proposed a unique base transceiver station (BTS) platform strategy which merges the platform and design of its wireless products for various systems. Including BTSs and base station controllers (BSCs) for GSM, UMTS, CDMA, and WiMAX networks, the concept focuses on the advantages of individual products and integrates them to form a product series that harmonizes pattern, architecture, installation and maintenance.

capacity and reliability. The unified dualstar and dual-plane switching network meets mobile network development needs via its powerful switching capability, high board reuse rate, modular design, flexible service combination, and easy expansion and evolution potential.

Multi-system support
From GSM to UMTS to HSPA or HSPA+, and finally to LTE, cabinet replacement is not necessary to upgrade a network, and only a corresponding baseband processing board is needed. Like wise, the radio frequency (RF) component adopts software defined radio (SDR) technologies, and only requires software upgrades in order to support different systems. Since the baseband processing boards for GSM, UMTS, and LTE systems are all the same size, different boards can be mix-plugged into the same cabinet, with different systems supported.

be otherwise required for tasks such as surveying and installation. Quicker deployment and commercial application can be therefore achieved. In addition, it is possible to use one BTS to construct networks on two bands for operators who utilize both core and extension bands. One is allocated for voice services and the other for data, and this is especially beneficial to 3G operators who only have a bandwidth of 5MHz on a particular band.

How to carry it out?

As a manufacturer capable of providing multiple wireless access products, Huawei has for some time prioritized multi-system integration and has made a significant commitment to its R&D. Its longterm experience in this field has solved a broad range of difficulties, leading to the launch of its platform-based multisystem integrated BTS that has laid a solid foundation for multi-system integration.

Unified platform
The future oriented, IP-based BTS platform delivers high capacity and powerful data processing capability via fewer, smaller modules that are fully concordant with inevitable technical development trends. Currently, all GSM, UMTS, CDMA, and WiMAX series BTSs are based on this new integrated platform. Meanwhile, the BSCs of all systems are deployed under an advanced new platform that incorporates All-IP hardware architecture and expands both

Multi-band support
One BTS can be configured with two RF components that support both 2.1GHz and 900MHz and share the same baseband. As a result, an idle GSM 900MHz band can be used for deploying a 3G UMTS900 network, thus realizing significant human and material resource savings that would

Modular design
Design represents an important consideration for a multi-system integrated BTS platform. A BTS is composed of a few modules, which are shared by different systems and possess identical specifications such as weight and size. A UMTS BTS, for instance, features just three types of basic
FEB 2008 . ISSUE 38

48

SOLUTION
Moving towards multi-system integration

modules: the base band unit (BBU), the remote radio unit (RRU) for Distributed BTSs, and the radio frequency unit (RFU) for cabinet BTSs. These can be combined in different ways to become BTSs of specific patterns that can cater to different scenarios.

Distributed architecture
From the modular design, it can be seen that the essential aspect of the integrated BTS platform is its distributed architecture, which refers to both the Distributed BTS that comprises BBU and RRU, and the cabinet-type BTS that comprises BBU and RFU. These have a common feature in that the previously inseparable baseband and radio frequency modules are divided into two parts, thus forming distributed architecture. This decreases construction costs and OPEX, and allows the wireless a c c e s s n e t w o r k t o b e c o m e s m a l l e r, develop more effective coverage, and offer more flexible installation and greater environmental adaptability. The distributed and cabinet-type BTSs complement each other and support both distributed and centralized installation, alleviating site deployment difficulties for operators and increasing implementation speed.

All-IP frame
Broadband networking is an inevitable trend for the future development of mobile networks, not least because it provides higher transmission rates, enhanced user experience, and a wider data service application range. Accordingly, the requirement for transmission bandwidth will increase, meaning that traditional E1s and SDHs will fail to meet data service requirements for transmission resources. IP transmission fills this gap as it not only reduces network construction costs, but is also capable of providing wider transmission bandwidth, higher transmission efficiency and easier transmission resource acquisition. Wireless access network equipment must support IP transmission, and Huawei leads the industry in terms of its All-IP solution. All interfaces support IP transmission, thus facilitating transmission network construction, and IP technologies are utilized for internal BTS and BSC switching modules. This greatly enhances switching capability, lowers internal switching complexity and elevates product reliability.

Large capacity and high integration

A multi-system BTS must have different baseband boards to process the related baseband components to support different systems. If each baseband board is not highly integrated and has limited capacity, the restricted baseband slots can support fewer subscribers. This is obviously unacceptable to areas with continually increasing mobile subscriber penetration rates, but Huaweis technical progress has realized baseband board integration and raised their capacity, and thus paved the way for the launch of its multi-system BTS.

Superior benefits
Wireless technologies are undergoing continuous and rapid innovation coupled with the move towards upgraded BTS technology that will respond to a new generation. Viewed from the development process of the BTS itself, its products will become adaptable to various complex wireless environments. Macro BTSs will develop as all-modular, which will simplify their configuration in a manner that resembles laying bricks, thus greatly expediting expansion and upgrade convenience. The flexible Distributed BTS alters traditional network construction 49 FEB 2008 . ISSUE 38

modes in a way that gives it a leading role in various complex wireless environments and, in compliance with development orientation, Huaweis multi-system integrated BTS platform demonstrates its superiority in a number of ways. Multiple: Future mobile networks will differ from the 2G models that provide only voice services. Data services may coexist with voice services or even substitute the latter completely, hence creating a multisystem coexistent environment for access network. The integrated BTS platform that supports multi-system integration will naturally surpass any others. Efficient: Rapid network construction reflects a key requirement for operators. The BTS platform boasts numerous benefits with its modular design, high performance, light weight, small size, ease of site selection, convenient installation, flexible deployment and low configuration costs. Its construction time is reduced by about a third in comparison with the traditional macro BTS, and it will inevitably garner the favor of the majority of mobile operators. En h a n c e d : Hi g h p e r f o r m a n c e i s prerequisite for network operations. The BTS platform features high integration, large capacity and IP architecture so that it assures a mobile network that delivers effective coverage, excellent performance, high reliability and abundant services. Economical: Saving investment and maintenance costs is a particular priority for operators when site resources are lacking, given the context of network coverage and performance in terms of multiple service provision. Thus, selection of a wireless BTS that complies with development trends has emerged as a key concern for operators. Multiple system coexistence represents the future mobile network developmental pattern. Many operators have become aware that hardware upgrades do not form the most economical and effective method. Huaweis multi-system integrated BTS platform allows software upgrades to support a networks smooth evolution, and its superior Multiple, Efficient, Enhanced and Economical characteristics have raised the bar with respect to multi-system integration. Editor: Xu Peng xupeng@huawei.com

LEADING EDGE
Huawei Technologies

VoIP over HSPA:

running in the fast lane

By Li Xuanbo

If calls carried over the R99 circuit switched domain are regarded as a short path in a village that you can glance and see its end, VoIP over HSPA can be considered as a super highway without a speed limit leading out of town. Despite the fact that the road is under construction and the end is not in sight, it promises a quicker and more rewarding journey.
ll-IP is a hot trend in wireless network evolution. The IP transformation has been broadening the service platform, core network, access network, and even the entire wireless network architecture, so end-to-end All-IP services are also on the agenda. At the PT/EXPO COMM CHINA 2007, Huawei took the lead in demonstrating its IMS-based VoIP audio and video services that are compatible in different wireless network standards, especially VoIP over HSPA. In addition, the early stages of AllIP services were shown. Cu r re n t l y, t h e n u m b e r o f H S PA mobile broadband subscribers has been growing quickly, with more than 58 countries already deployed over 115 HSPA networks. Gartner - a leading research and advisory company - estimated that
FEB 2008 . ISSUE 38

50

LEADING EDGE
VoIP over HSPA: running in the fast lane

1000

Millions

HSPA mobile broadband subscriber forecast

800

600

400

200

2005

2006

2007

2008

2009

2010

2011

Fig. 1 HSPA mobile broadband subscriber forecast (Source: GSMA 2007 Q2; Gartner)

DL: ~141Mbps UL: ~50Mbps DL: ~42Mbps UL: ~11Mbps ~100ms DL: ~14.4Mbps UL: ~5.76Mbps

LTE HSPA+

HSPA
~70ms DL: ~384Kbps UL: ~384Kbps ~45ms ~15ms

3G-WCDMA

there would be over 200 million HSPA subscribers by 2009. With the substantial amount of HSPA subscribers, the trend towards an All-IP wireless network is clear and VoIP over HSPA has a lot of room for development. On one hand, HSPA networks that have VoIP services attract more customers with higher quality and more varied offerings. On the other hand, VoIP over HSPA will become a problem for operators as the HSPA network is moving to HSPA+, flat LTE architecture and All-IP. VoIP is not a new concept in fixed networks. Several operational modes already exist, such as Skype that uses the Internet and intelligent terminals, and Yahoo! BB that is carried over VoIP. Despite some disagreements about the operational modes of VoIP networks, the convergence of various VoIP services will be accelerated. Full consideration will be given to factors such as convergence of mobile and fixed networks, introduction of IP multimedia subsystem (IMS), and the use of session initiation protocol (SIP). Operators will then be able to solve problems in operation, maintenance and management. Yet, some questions remain such as: What benefits can VoIP over HSPA bring to customers? What can operators do to deal with the challenges?

2005

2006

2007

2008

2009

2010

2011

2012 or later

Larger capacity
For the wireless and fixed networks o f f e r i n g Vo I P s e r v i c e s , t h e b i g g e s t difference lies in air interface resources. The development of wireless networks is mostly driven by the fact that wireless networks can provide greater service bandwidth with less spectrum bandwidth. The VoIP service provision emerges in the WCDMA R99 and HSDPA phases with the presence of intelligent terminals. However, in the R99 architecture, the VoIP is incapable of offering more benefits than CS voice service does. VoIP is a service requiring symmetrical bandwidth in the uplink and downlink. Even in the HSDPA phase, therefore, problems still exist in providing outstanding performance due to bandwidth imbalance in the uplink and downlink of the HSDPA. As a result, the VoIP over HSPA takes a center stage only after the high-speed uplink packet access

Fig. 2 HSPA evolution roadmap

Voice users

AMR 12.2Kbps voice users per cell

No detail emulate data

120 100 80 60 40 20 0

R99 CS Voice

VoIP over HSPA

VoIP over HSPA R7

VoIP over LTE

Fig. 3 Comparison of voice capacity between VoIP over HSDPA and R99 CS

51 FEB 2008 . ISSUE 38

Huawei Technologies

(HSUPA) is deployed on a large scale starting in 2007. HSPAs development is further driven by the introduction of new channels, hybrid automatic repeat request (HARQ) and soft combination functions, as well as an advanced Node B scheduling algorithm. HSPA enables the downlink data rate up to 14.4 Mbps and uplink data rate up to 5.75Mbps, with the latency reduced to less than 70 ms. Currently, the general and commercial downlink data rate of the industry is constant at 7.2Mbps due to restrictions on terminal chips. In addition, along with the introduction of HSPA+ and LTE, the downlink data rate can achieve over 140 Mbps and the uplink data rate is 50 Mbps with the latency further reduced to 15 ms. These features enhance the vast potential of VoIP applications in the future. Apart from the available bandwidth, another key influencing subscriber numbers is the required bandwidth traffic for each voice subscriber. The 12.2 Kbps adaptive multi-rate (AMR) audio codec is widely used in the traditional GSM and UMTS CS voice services. As for a typical VoIP protocol stack, it adopts routing table protocol (RTP) and user datagram protocol (UDP) packets that are carried by IP. Apparently, in case each IP packet is added a standard RTP/UDP/IP header, the typical voice after standard VoIP coding requires a bi-directional data rate of 32 Kbps or 64 Kbps for transmission. This is a big waste for a wireless system that already needs more air interface resources, but there is now a workable solution: employment of robust header c o m p re s s i o n ( RO H C ) . T h e RO H C technology can minimize the packet length to 1 byte, thus making the required bit rate of the VoIP only 10% to 20% higher than that of CS service of the same code. The maximum number of supported subscribers is not simply calculated by dividing the total bandwidth by the bandwidth of each voice subscriber. In actual cases, the interference of the radio environment, system capacity, and end-toend time delay also need to be considered. Allocating longer latency and scheduling time can lead to more subscribers simultaneously supported by the system,

yet longer latency reduces voice quality. A balance point between latency and system capacity should be selected to split the difference. In Fig. 3, we can see the increase of subscribers brought by VoIP services. Air interface resources limit the number of voice service subscribers over the R99 CS domain. Even if factors such as interference can be well controlled, the actual number of users per cell has trouble exceeding 80, due to the restrictions on user code quantity and soft handover overhead. Theoretically, the VoIP over HSPA is free from code restriction. Although the VoIP over HSPA does not show evident advantages at the HSPA initial phase, the emergence of HSPA R7 has doubled the system capacity of the VoIP over HSPA compared to that of VoIP over CS.

Wider range of services

The voice service provided by VoIP over HSPA can be a killer application, but what really attracts operators is not the simple capacity expansion for voice service subscribers. The point is that VoIP can be combined into diverse services with the further development of end-toend and IP-based radio networks. Service combinations can include those with IM, information query, web, call center, voice conferencing, and more. In addition, with the fixed and mobile convergence implemented by the IMS, operators can enhance the control and operations over the VoIP service. Meanwhile, the combination of the IMS and IP-based mobile bearing networks, together with the technical guarantees such as MPLS, enables full control of the end-to-end QoS for each new service and makes possible barrier-free services anytime and anywhere for any terminal. By paying higher service fees, users can have a high quality voice or video channel for important business services. For the low end users, operators can offer discounted common chat services by using idle radio resources with decreased QoS. Most price conscious subscribers dont mind the intermittent decreased voice quality and are quite pleased to get a whopping discount. Most insiders believe that services like voice, high-speed data, and multimedia services will be more effectively integrated

in the near future. Using IP technology to carry voice, high-speed data, and multimedia services simultaneously, operators can have effective management over the network, reduce OPEX, and introduce new services easily. Compared with the existing traditional services controlled by signaling No.7, the service development on the IP layer is based on a relatively open architecture, allowing a radio network to smoothly inherit the previously successful service modes in the fixed network. After HSPA is deployed, many fixed services can also promote mobile features and services that are directly added, like video-sharing sites that can be easily migrated to mobile phones. The end-to-end IP service over the HSPA network is also gradually perfected with the introduction of VoIP, providing an outstanding platform for all message, interactive, and communication services.

Evolution to an All-IP network

Another advantage is that the VoIP over HSPA, an end-to-end IP service, can be smoothly carried by a variety of technologies such as WCDMA, HSPA, HSPA+, LTE, or even the forthcoming 4G technology. In terms of development trends, all the evolution technologies of the UMTS move towards an All-IP network. At the LTE phase, the work division of CS and packet switched (PS) domains on the access network is removed, and the network uses a unified IP-based packet access. At present, Huawei takes the lead in introducing the LTE UMTS multi-mode base stations, which utilizes software to evolve the existing UMTS network into HSPA+ and LTE networks. Experience shows that evolution is usually not completed in a short period, and multiple access modes can co-exist for a long time. The emerging VoIP over HSPA provides a universal voice solution. Since the VoIP over HSPA is carried above the IP layer, different access modes can be avoided. The good news is that VoIP over HSPA is adaptable regardless of future network development, allowing operators to focus on service development and operations. Editor: Pan Tao pantao@huawei.com
FEB 2008 . ISSUE 38

52

LEADING EDGE

LTE,
ready?
By Xu Yan

are you

Act 2: Suppose now that you are traveling in Fiji and have just recorded the torch lighting ceremony with your high definition camera. The several hundred MB files can be uploaded onto YouTube.com within one minute through your mobile phone connected with your camera, enabling people around the world to share your experience.

Act 1: Imagine that you are traveling on a high speed train in Europe and you urgently need some documents for an unscheduled project meeting. Exceeding 1GB, however, these documents include files and pictures that can be downloaded quickly providing that your computer and data card are connected. This would remove the headache of having to jump off the train and rush to an Internet cafe.

53 FEB 2008 . ISSUE 38

Huawei Technologies

n a mobile broadband world based on long-term evolution (LTE), these scenarios are no longer just dreams. As a solution for future 3GPP UMTS/HSPA evolution, LTE can reach a peak downlink data rate of 100Mbps and a uplink data rate of 50Mbps, increasing frequency efficiency by two to four times when compared with 3GPP R6. In October 2007, Huawei successfully demonstrated its LTE-based multichannel HDTV in an air interface. Results showed that the downlink data rate reached 140Mbps and uplink 50Mbps. According to the latest statistics, 80% of LTE standards were confirmed in 2007 and LTE will see its commercialization in 2009. In a research companys November 2007 report, LTE is set to emerge as the successor of mobile broadband technology over the middle and long-term, with an estimated user base of 24 million by 2012. Huawei has already performed LTE demonstrations with leading operators such as T-Mobile, Orange, Vodafone, Telefonica, and Telecom Italia. A belief that LTE has a bright future is far from enough, then how operators can best accelerate the arrival of the LTE era?

Taking the initiative to secure users

Users have for some time demonstrated a solid demand for high-speed data services. The 3G R99 remains unable to carry services such as video sharing, high definition television (HDTV) and online gaming, given its time delay and limited speeds. On the other hand, users are expecting anywhere, anytime broadband services. Facing a market replete with competition, operators cannot afford to just wait for LTE, but must instead lead the way to enhanced broadband service provision. Fig. 1 illustrates that, in terms of network evolution, HSPA/HSPA+ can provide higher bandwidth and a faster network speed, which can even match that of a fixed network. HSPA/HSPA+ represents a powerful tool to meet existing market needs. When constructing or upgrading mobile broadband networks, operators need to select solutions that support allperformance HSPA and HSPA+ roadmap, and select par tners with long-term

experience in the field. Operators globally have begun to do so. In Europe, Vodafone Spain has deployed its HSPA network and has recorded its elevated performance, and Telecom Italia has implemented its HSPA services in Italy. In the Asia-Pacific region, Singapores StarHub has deployed the very first commercial HSUPA, and EMOBILE has released the fastest HSDPA network in Japan. Choosing Huaweis HSPA solutions, these operators now provide their users with high-speed services boasting 7.2Mbps uplink and 1.92Mbps downlink. I n t h e n e a r f u t u r e , Hu a w e i w i l l help operators introduce LTE and 4G technologies into existing networks, employing technologies such as 64QAM and MIMO in the HSPA+ phase. This will provide 21Mbps downlink and 28.8Mbps uplink mobile broadband services to assist operators to secure LTE user groups. Operators need therefore to provide LTE-like services to help users form their using habits, and to spearhead the smooth evolution to actual LTE services. Multimedia broadcast multicast service (MBMS) has been specified in the performance requirements of an LTE evolved universal terrestrial radio access

PON 1~10Gbps 600ms VDSL2 >200Mbps

100Mbps

600ms LTE 25~100Mbps HSDPA+ R8 42Mbps HSDPA+ R7 28Mbps

ADSL2 12Mbps 10Mbps ADSL 1.2Mbps 1Mbps ADSL 256Kbps Analog 56Kbps 150ms

ADSL2+ 24Mbps HSDPA 14 Mbps

200ms R99 384Kbps 100ms Analog 28.8Kbps 70ms 45ms GPRS 53.6Kbps < 1990 1995 2000 2002 2005 2007 20ms 2009 2011 2015 Year 50ms 20ms 100ms

Fig. 1 HSPA+ enables similar performance as fixed broadband

FEB 2008 . ISSUE 38

54

LEADING EDGE
LTE, are you ready?

network (E-UTRAN). Correspondingly, mobile TV services such as HDTV and holographic television will become killer applications. With MBMS Phase1 already successfully o p e r a t i n g i n Ho n g Ko n g a n d w i t h Huaweis successful tests with Qualcomm, MBMS has already undergone actual commercial application, and MBMSbased mobile TV services are increasingly garnering the attention of operators. Based on Huaweis Mobile TV solution, each cell can carry four 128KB or eight 64KB TV channels. The forward access channel (FACH) and MBMS share lub transmission resources, removing the need for additional bandwidth after Mobile TV deployment. Huawei plans to enhance its MBMS solution in 2008 with each cell able to carry fourteen 128KB or sixteen 64KB TV channels, giving users an improved HSPA-based service experience. Once MBMS across an HSPA/HSPA+ network is accepted, smooth evolution to LTE-enhanced MBMS services will be seen, including the evolution of service usage modes and user habits.

As a mature solution, Huaweis next generation base stations construct a unified-wireless access platform. Via these base stations, operators can build a base station platform in which various systems coexist. The platform facilitates the changes of network systems and capacities by adjusting radio frequency (RF) and baseband modules. Operators can realize a dual-mode network by inserting GSM and UMTS modules into the same cabinet, along with LTE RF modules. These can share the same power, transmission, antenna feeder, and baseband resources, and modules can be added to cope with increased user and service quantities. Huawei has also proposed the innovative idea of evolving networks by introducing software radio technology. Simple software operation allows operators to switch a GSM RF module to a UMTS or LTE one, or use a single RF module to support two network systems. This delivers the advantageous capability of adjusting network performance and service models, as well as defining network attributes based on service needs.

Paving your way to All-IP

Telecom and Internet networks are becoming further converged with an increasingly vague boundary between telecom and IT technologies. The telecom world is undergoing an evolution to AllIP and FMC, including fixed network and future-oriented LTE. Traditional architecture will differ significantly in an LTE network, with the base station controller (BSC) or radio network controller (RNC) integrated into the access or core layers in a dual network structure. Base stations are connected to the system architecture evolution (SAE) through IP, and services are accessed through gateways. The traditional circuit switched domain is removed and service access, bearing, switching, coordination, charging, and control are packet domain a n d I P - b a s e d . Mo b i l e n e t w o r k I P transformation can be realized through three steps. First comes the IP transformation of interfaces. IP transmission can be used between 3G base stations and BSCs. In

Building a network for smooth evolution

Ne t w o rk l i f e c yc l e e x t e n s i o n a n d smooth evolution play important roles in operators unceasing drive to reduce TCO. The impending arrival of LTE networks has encouraged operators to use software to upgrade their existing networks, especially wireless access networks, so as to realize smooth evolution and save legacy resources. 55 FEB 2008 . ISSUE 38

this case, lease and construction costs are reduced in traditional time division multiplexer (TDM) transmission, and sufficient bandwidth is provided for highspeed data services. In the GSM system, the IP transformation of A interfaces can reduce transcoder (TC) and network costs, enabling transcoder free operation (TrFO) and enhanced voice quality. Interface IP transformation has less impact on the entire network architecture and is easy to achieve. Successful examples can be seen with StarHub in Singapore, Etisalat in Saudi Arabia, EMOBILE in Japan, and China Mobile, who have all selected Huaweis IP RAN/IP BSS solution to deploy their networks. The second stage involves the IP transformation of the kernel. As the keys for mobile network IP transformation, prerequisites to avoid failure are strong network capabilities and a thorough knowledge of transmission and data communications. The Huawei-developed BSC features an IP kernel and supports the IP interfaces between base stations and core networks, it also realizes IP-based switching and achieves control. Data sent from a base station to the BSC through IP is not switched or decoded, but is transmitted to the core network directly through an IP switch. Highly-integrated digital signal processing (DSP) and multi-kernels can be applied to enhance equipment performance, reduce power consumption and save resources. The final stage describes the IP transformation of services. When NEs and the entire network are transformed to IP, service access can be simplified to a connection between servers and gateways. With the help of an OSS/BSS system, operators can deploy and manage telecom services just as Internet service providers run their Web services. The IP transformation of the mobile network is an important step for LTE AllIP and flat network architecture, and also a preparation for LTE network architecture. The evolution from existing networks to LTE is a smooth and gradual process through mobile network IP transformation. It is thus time to get ready for the rise of the LTE mobile broadband network. Editor: Pan Tao pantao@huawei.com

Huawei Technologies

Reach for the sky and transform your vision into reality. Realize Your Potential

FEB 2008 . ISSUE 38

56