As the broadband network develops rapidly, users are expecting richer experience with networking services such as VoIP, IPTV and multimedia. With a sharp insight into this great market opportunity, operators around the world are transforming their legacy networks into IP-based NGNs and MSANs, to significantly reduce their operating expenditure (OpEx), and expand their business reach. The global telecom sector is now embracing a new wave of network transformation. As one of the leading broadband network operators in Germany, QSC AG ("QSC") is exploring ways to keep abreast with this trend.
Headquartered in Cologne, Germany, QSC has its own DSL broadband network that covers more than 200 cities nationwide. The firm provides enterprise and home users with a wide variety of broadband communication services, including voice, data, VPN and bandwidth wholesale services. QSC is also a member of TecDAX, an organization that represents 30 leading public technology companies in Germany.
Just like traditional networks of many other European telecom operators, the original broadband network of QSC is based on ATM. As the subscriber base grows dramatically, QSC's existing network capacity is falling far behind the need. Moreover, the ATM network cannot provide the flexibility in service deployment for QSC and is also inefficient in multicast, it could hardly support mass deployment of new value-added services such as IPTV. In addition, the ATM network is inefficient in transmission, costly in construction and complex in equipment operation and maintenance, preventing QSC from stepping further in the broadband service market.
Amid the trend toward IP-based telecom services, QSC has come to realize that IP technology is widely used around the world as it is open and scalable, and that the ATM network will inevitably migrate to IP network. To fast deploy more services across the country, reduce the network Capital Expenditure (CapEx) and Operating Expenditure (OpEx), and raise the profit margin of the broadband market, QSC feels a need to migrate its current ATM network to IP network. This move is set to provide users with a wide selection of services and deliver lean operations and finally evolve the ATM network to an operable, maintainable and manageable multi-service broadband network with assured QoS.
Since October 2005, QSC has conducted an extensive survey to identify the problems with the original broadband network, and evaluated a number of leading equipment vendors worldwide in terms of network conduction speed and service varieties. To ensure the broadband network can efficiently deliver multiple services, QSC, in February 2006, organized a four-month comparative test on their products from a number of equipment vendors. Following a series of demonstrations and tests, QSC finally established a strategic partnership with Huawei in June 2006, to jointly build their IP broadband network throughout Germany.
Broadband network of Germany-based QSC
For the original ATM network, QSC feels an urgent need to protect prior investments and give full play to their existing network and equipment. In quick response to QSC's needs, Huawei launched a solution, known as ATM Inter-Working Function (ATM IWF). This solution is designed to convert ATM packets into Ethernet packets through QinQ mapping between ATM link based on 1483B access and Ethernet link. While delivering assured QoS, the solution provides a number of L2VPNs, to carry the converted Ethernet packets for transmission of ATM packets over the Ethernet link. By deploying ATM IWF on Quidway NE40E routers across the network, QSC can deliver traditional ATM services over the Ethernet to achieve smooth service evolution as well as providing interconnectivity between the ATM network and the Ethernet for migration from ATM network to Ethernet and IP network.
To keep in line with the fast expansion of the subscriber base, QSC needs to build a large number of network access nodes. By utilizing MPLS-based IP DSLAM, QSC connect their Ethernet with NE40E routers, thus reducing the network CapEx and facilitating network maintenance and management. Additionally, with the Quidway ME60 multi-service control gateway, QSC can deploy an assortment of enterprise and home services as needed on the multi-service bearer network, to enhance the network manageability and operability and deliver differentiated services and lean operations over the broadband network.
In a telecom network, high reliability is always the most fundamental and critical performance. This is especially true for voice service. In addition to reliable equipment, QSC builds MPLS TE FRR into the network to deliver service protection. When a link or node fails, the equipment that detects the fault can quickly switch its service from the faulty link to the backup link, to reduce data loss and ensure uninterrupted service. To provide users with enhanced service experience, QSC deploys the H-QoS mechanism on ME60 devices. When deployed on the access interface of the BRAS or router, this mechanism helps to deliver assured QoS for the broadband access network. Thus, QSC can deliver different QoS for different services to provide network users with quality service experience.
All these transformation initiatives have created substantial profits for QSC, significantly expanded QSC's subscriber base and sharpened its competitive edges in the broadband market. Once the project is completed, QSC is expected to have Germany's largest VoIP network, providing tens of thousands of home and enterprise users with voice, data access and VPN services, and small-sized operators and ISPs with broadband wholesale service. By the end of the first quarter of 2008, QSC is expected to have approximately 2,000 broadband network access points, serving 70% of the enterprise users and 50% of the home users in Germany's broadband market.
"QSC, well-known for providing total communication solutions, is set to provide its customers with a wider range of easy-to-use and cost-effective communication services," commented Frank Thelen, the CTO (Chief Technology Officer) of QSC when he talked about the partnership with Huawei, "Huawei has impressed us deeply with its quick response and technical innovation. Their end-to-end solution just suits our needs. We are confident that Huawei is an ideal partner in NGN". "We value our cooperation with operators in West Europe. Through the cooperation, we will be able to keep step with the communication needs among users in developed countries, and make our products more competitive by improving our solutions from time to time," Huawei added, "We will live up to our commitments to QSC with quality products and timely service. We are convinced that the cooperation between Huawei and QSC will set an example for partnership between equipment vendors and operators". As a strategic partner of QSC, Huawei will continue to broaden its partnership with QSC in hopes of helping QSC to become a top-ranking integrated service operator in Germany, and even across Europe.
