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An Interview with Tang Xinhong
Vice President of Huawei WiMAX Product Line

By Wang Tao, Deputy Editor-in-chief

The CTIA Wireless 2008 Show in Las Vegas, Nevada attracted around 1,200 wireless network suppliers, developers, and manufacturers from dozens of different industries in more than 80 countries.

At the show, the new 4G-oriented technologies, such as LTE and WiMAX, attracted the most attention. The WiMAX Forum presented an integrated industry chain and reported that 260 operators from 110 countries are currently developing WiMAX networks. Concurrent with these statistics, the number of WiMAX subscribers is expected to exceed 133 million by 2012.

As a leading telecom equipment supplier, Huawei demonstrated an entire series of IP-based mobile products and solutions, including WiMAX end-to-end solutions.

While Huawei may have been perceived as a follower in the 2G arena, the company has now emerged as an undisputed leader of the WiMAX era, advancing the development and overall maturing of the industry. So, what significance does WiMAX have for the industry, and for Huawei? How does Huawei view and promote the development of the WiMAX industry? What role will Huawei play? Tang Xinhong, Vice President of Huawei' s WiMAX Product Line was interviewed at the company' s CTIA booth and offered the following insights.


A promising future

Interviewer (I): Good afternoon, Mr. Tang. All indicators show that 2008 will be a crucial year for the development of WiMAX. How does Huawei view the prospects for WiMAX?

Mr. Tang (T): Considering transition trends from fixed voice services to mobile voice services, we predict that in the field of data services, wireless data services will definitely play a more important role.

After a decade' s development of technologies such as GPRS, EVDO, HSPA, and Wi-Fi, the market for wireless data services has expanded, with corresponding consumer growth. Among the technologies currently available, the OFDMA/MIMO-based WiMAX features high frequency spectrum efficiency, low cost, simple network structures, and speedy network deployment. These advantages make it the top choice, and increasingly more operators agree.

In contrast with the early growth pains encountered in 2006 and 2007, WiMAX has now entered a period of significantly more mature and less impeded growth.
In 2008, more spectrum resources for WiMAX will be allowed for commercial use. Chips will evolve, the cost of terminals will be reduced for end users, more equipment manufacturers will provide system equipment authenticated by Wave1/Wave2, and more operators will deploy networks on a large scale with successful operations and business models. We firmly believe that WiMAX will inevitably move into a golden age and garner a large share of the wireless/mobile broadband data services market. Huawei is highly confident about the prospects for WiMAX, and will readily invest added resources to realize this potential.

I: As a principal manufacturer of 3G/4G and WiMAX equipment, how does Huawei view the relationship between WiMAX and 3G?

T: They complement each other. In terms of data services, 3G is targeted at environments with a wide coverage, high mobile rate, and medium data bandwidth, while WiMAX is targeted at metropolitan areas with a medium mobile rate and high data bandwidth. In terms of the frequency spectrum, 3G uses FDD and WiMAX uses TDD. In respect of operators, 2G operators with 3G licenses tend to construct 3G networks. 2G mobile operators, fixed network operators, and new operators without 3G licenses tend to choose WiMAX.

Huawei is fully committed to providing competitive 3G and WiMAX solutions to meet different customer requirements.

I: For operators, constructing a new WiMAX network is a significant decision. What are their key concerns?

T: The great challenge that 2G operators face is increasing subscriber base while decreasing ARPU value. Naturally, wireless data services have emerged as a newly cultivated growth point. For fixed network operators, as fixed voice services evolve into mobile voice services, it is inevitable that these operators will also enter the mobile voice and data market. ISPs and TV/broadcast operators with rich content and exclusive users have gradually realized that expanded content and more consumers using mobile communications provide a new business opportunity. They are actively entering the field of mobile data.

Presently, WiMAX is the overall No.1 choice because of advanced technologies, low-cost spectrum auctions, and low-cost equipment.


Convergence, broadband, green, and evolution

I: Thank you. "Convergence, broadband, green, and evolution" are the current buzzwords among operators. Focusing on WiMAX solutions, what strategy is Huawei adopting?

T: Huawei' s approach to WiMAX is based on our sophisticated solutions to wireless communications, transmission, core networks, data communications, and applications software. Our solutions are convergent, evolutionary, green and broadband-based to maximally meet operator requirements.

The solutions provided by Huawei enable WiMAX networks to seamlessly converge with CDMA/GSM/UMTS and easily connect with NGN/IMS/DSL to meet the different convergence requirements of operators. Since the WiMAX network uses the 4G BTS platform, WiMAX 16e networks can be smoothly upgraded to 16m networks with upgraded software. In terms of green, our WiMAX solution features low energy consumption and a high coverage rate. Environmentally considerate and efficient alternate energy sources, such as solar, wind, and firedamp, can be used to reduce the emission of carbon dioxide. For a 1000 BTS network, 4 million kWh can be saved every day. Meanwhile, from the BTS to the core network, ALL IP design is used from core management to interfaces in order to provide non-blocking broadband throughput and guarantee the QoS of Huawei' s end-to-end solutions. In this way, flexible mobile broadband services can be quickly deployed.

I: You have just mentioned "convergence". Regarding the convergence of WiMAX and 4G technologies, how does Huawei see this trend evolving?

T: WiMAX and 4G technologies have the same DNA: OFDMA and MIMO. Huawei has developed such key technologies as OFDMA, MIMO, high-efficiency power amplification, RRM, RTT, and TRM, so it is relatively easy to share them between BTSs using LTE, UMB, WiMAX and also the 4G mode. What' s more, our WiMAX network uses the 4G BTS platform. Software and hardware platforms can be shared to the maximum, so the WiMAX BTS can evolve into the 4G BTS.


Standards, terminals, and business models

I: The standards of WiMAX are still under development and being improved. What efforts has Huawei made to promote WiMAX standards?

T: WiMAX standards involve the work done by two international organizations: the IEEE 802.16 Working Group and the WiMAX Forum. The IEEE 802.16 Working Group is the constitutor of the standards, and the WiMAX Forum is the promoter of IEEE 802.16.

In 1999, IEEE set up the 802.16 Working Group to specialize in researching the standard for fixed broadband wireless access technology. Its aim was to establish a globally uniform standard for broadband wireless access. By the end of 2001, the IEEE 802.16 Working Group had released the first set of standards, IEEE 802.16.

Huawei, as a core member of the IEEE 802.16 group, holds the positions of 16Netman task group president, editor of the 16h task group, and ad-hoc president of the 16m group. Huawei' s involvement in all the 802.16 task groups has brought forward many competitive proposals, and has had a significant impact on discussions regarding standard technologies.

As one of the leaders of NWG standards in the WiMAX Forum, Huawei successively assumed the presidency of four subgroups in the NWG. They are CSN, MM, ND&S, ROHC, and ND&S Evolution. Huawei is also working as the editor for many subgroups, having submitted a total of 568 proposals to the WiMAX Forum NWG. The number of submitted proposals ranks number two and the coverage rate of R1.5 is 81.25%. In 2007, the presidents of two subgroups represented Huawei in accepting the Excellent Contributions Award from the WiMAX Forum 2007.

As a core member of the TWG R1.x standard, Huawei assumes the leadership of one WI group. Moreover, Huawei products cover 5 of the 6 SGs. Huawei is leading research in strengthening VoIP and is one of the top three manufacturers of H-FDD and Wi-Wi WI.

Since starting research on fundamental WiMAX technology in 2000, Huawei has already devoted over 150 people to the pre-research and the standards for WiMAX technology, continuously promoting the development of WiMAX standards. Huawei is a major participator in the IEEE 802.16 group and the WiMAX Forum, with successful experience in holding many conferences, including the 55th 802.16 Conf. in May 2008.

I: As to the challenges of chips and terminals, what views does Huawei hold?

T: For a new industry chain, chips with a low cost and excellent performance and terminals that have various types and are payable to users provide the crucial links. At present, terminal, chip and equipment manufacturers are speeding up interconnectivity and interoperability in order to provide diversified choices for operators and guarantee large scale commercial application. WiMAX 16e terminal chips are becoming sophisticated, and commercial terminals are already widely used throughout the global marketplace.

Since 2004, Huawei has committed to cooperating with WiMAX chip and terminal manufacturers and established two open IOT labs in Shenzhen and Hong Kong. These labs have performed IOT tests for many chip manufacturers such as Runcom, SEQUANS, GCT, and Intel, plus dozens of terminal manufacturers like ZyXEL, SEWON, ASUS, InfoMark, and more. Meanwhile, large-scale implementation has been seen in many Huawei commercial networks.

Huawei' s terminal division has also initiated research on the WiMAX terminal, and in early 2008 released the first CPE, USB Dongle terminals that satisfy Wave2 requirements. Our strategy is aimed at promoting the maturity of WiMAX chips and terminals, and providing more diversified choices for operators.

I: A well-executed business model is vital for the successful development of any industry. What kinds of business model do you think are necessary for WiMAX to evolve as a successful industry chain?

T: For the developed countries with sophisticated cable broadband networks like in Korea, Japan and the United States, we can start with wireless broadband access to deploy a hotspot coverage network first. In turn, this will cultivate USB and portable equipment users and define user habits. Operators can accumulate experience and return early investment, and then further perfect the network coverage to gain more mobile broadband users and provide portable equipment like UMPC, and MID to high-end users.

For developing countries with immature cable broadband networks, such as Africa and the Middle East, WiMAX networks are mainly used as a substitute for DSL. Therefore, the target can be fixed CPE households and enterprises.

Also, WiMAX has a high data throughput and adaptable proportions of downlink and uplink sub-frames so it is very suitable for applications such as video backhaul for TV journalists and security video monitoring. Therefore, the concept of constructing a WiMAX network for a specialized industry and developing industry specific applications in itself represents a series of new business models for operators.


Full and continuous dedication

I: Huawei has tremendous in-depth knowledge of this industry. Is it true that Huawei has invested heavily in WiMAX?

T: Absolutely. Huawei WiMAX adopts a globalized development strategy. Presently, the BTS R&D team has over 1200 staff members, which will grow to 2000 in late 2008. Our R&D professionals are employed globally at the research institutes in Shanghai, Shenzhen, Xi' an, Chengdu, the U.S.A., Sweden, Russia, India, and elsewhere around the world. To forge the world' s top products and solutions, we commit considerable funds to R&D and to attracting the most outstanding talent to our WiMAX teams.

In addition, Huawei has been striving to promote the development of the industry chain. As early as in 2005, Huawei and Intel formed a strategic alliance to push forward network construction, plus chip, terminal, and equipment development.

I: It is reported that Huawei has signed many commercial contracts with WiMAX operators all over the world. What key factors do you consider essential for Huawei to succeed in the global marketplace? How will Huawei strengthen and build on its dominant position?

T: By the end of March 2008, Huawei signed 17 commercial contracts for 16e, with commercial applications in some networks. There are several essential factors for Huawei to rapidly increase market success. First, Huawei' s solutions for GSM, CDMA, UMTS, and fixed networks have been sold to more than 100 operators from 70 countries, many of which have requirements for developing WiMAX. With hands on experience of operator needs, Huawei is best positioned to anticipate, appreciate and respond to customer requirements and then respond with optimal solutions for each differing scenario.

Second, WiMAX is a technology combining wireless with IP. It involves end-to-end IP networking, end-to-end QoS, security, wireless network planning, marketing and development experience of fixed broadband network. Based on over 10 years' development of wireless technologies, IP, and fixed network, Huawei is capable of integrating optimal resources to provide the most competitive solutions.

In the latter half of 2008, Huawei will be introducing solutions in the form of a series of BTSs, terminals, and integrated core networks. By enhancing competitive strength, Huawei' s dominant position in the market will be further strengthened.

In the latter half of 2008, Huawei is going to roll out the solutions in a series of BTSs, terminals, and integrated core networks. By enhancing competitive strength, Huawei' s dominant position in the market will be further strengthened.

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