Mobile communication has experienced a remarkable development history. In the late 1970s, the 1st generation analog mobile communication system is emerged, and within a ten year time span the number of mobile subscriber grew up to 10 million. In the early 1990s, the 2nd generation digital mobile communication (2G) entered the market. In April 2002, the number of 2G subscribers reached a milestone of 1 billion, and within three and a half years the number had doubled to 2 billion. By the end of June 2006, the number had risen to 2.45 billion, and is increasing at 1 million subscribers per day. It is estimated by Gartner and Informa that the number of the subscribers will exceed 3 billion by 2009. Other organizations are even more optimistic, and believe that it will be achieved in 2007. We are therefore firmly convinced that the number across the globe will exceed 4 billion in the near future.
In the time preceding the arrival of the emerging mobile market, with next 2 billion subscribers, a few questions still remain to be unanswered. For instance, what will be the most dominant technology in the mobile communication industry? Who will be the top mobile operator? Who will be the leading equipment supplier? And finally, what kinds of mobile communication services will be present?
What Stands for Future Mobile Communications?
By Xu Peizhong
We are presently in the midst of experiencing the dramatic transition from 2G to 3G networks. Since the introduction of 2G technology in the earlier 1990s, GSM and CDMA networks have been developing rapidly, and now hold an 87% share of the global mobile communication market. Since 2003, a 3G wave has been spreading across the entire mobile communication market. By the end of June 2006, 112 WCDMA networks (48 of which employ HSDPA) had been established worldwide and the number of subscribers reached 73 million. Moreover, 35 EV-DO commercial networks have already been built and the number of EV-DO subscribers is increasing by about 6 million per quarter. To date, 2G still occupies most of the market share, and 3G is still in the earlier stage of its development worldwide.
However, competition of the mobile market is heating up. Some traditional fixed operators, for example, like Hutchison, begun to enter 3G industry, which will no doubt contribute to the climax in construction of 3G networks worldwide. In fact, a few leading mobile operators have already begun to purchase medium or small-scale corporations, such as Telefónica, purchased O2. These kinds of activities will indubitably lead to a more centralized mobile market. Regroupings and alliances being formed between equipment suppliers are also becoming more commonplace, This brings about dramatic changes in market structure. Furthermore, new wireless technologies and standards such as, WiMAX and LTE continue to be present. Hence, one might rightly ask, in such a complicated and competitive environment, what will the future hold for mobile communications?
All-IP and Broadband Trend
The rapid development of WiMAX highlights the trend of broadband. The bearer rate of WiMAX has reached 15Mbps (5MHz), which has a distinct advantage versus 2G and earlier 3G network in terms of bandwidth. The competition between 3GPP and 3GPP2 has also contributed to boost the presence of new technologies. Moreover, as the ROI of per bit on mobile networks decreases, operators have come to realize that only by improving utilization of spectrums can they hope to get more profits, and thus, are becoming more anxious to introduce broadband technologies.
The WCDMA, standards of 3GPP, are being developed to support R99/R4-HSPA-(E-HSPA)-LTE. To correspond with this, Huawei had put forward its leading full performance HSDPA solution, which enables a 14.4Mbps data rate on the downlink. In future, the data rate of LTE is expected to reach as high as 100Mbps (20MHz). The CDMA2000 standards of 3GPP2 are being developed to support EV-DO and is planned to support AIE, which will reach a bearer rate up to 100Mbps.
During the subsequent development of 3G, new technologies such as, OFDM and MIMO are being introduced. These new technologies will also serve as key technologies in WiMAX. This is an indication that key technologies of different standards are being developed in a similar way. Therefore, the competition between different standards mainly focuses on industry chains.
Moreover, the boom of Internet services is bringing about unprecedented changes for traditional networks in terms of service development, traffic mode, and operation method. In looking at the application of network protocols, IP is the only ideal protocol that meets the requirements of future networks. In other words, the way of future network convergence is All-IP. Therefore, mobile operators show great interest in the successful application of IP technology in the Internet. Of course, mobile operators will show greater concern for subsequent problems such as, QoS, security, and synchronization. Huawei's IP RAN solution, which has successfully passed a series of tests in 3G network conducted by Telefónica (Europe) and eMobile (Japan), proves that IP is applicable and reliable for mobile networks. In addition, application of IP technologies in softswitch core network is also a good example of E2E IP application.
The IP-based application in mobile networks will first change the bearer networks. The introduction of broadband technologies such as HSDPA has brought pressure of transport for 3G operators, especially since their highly numerous, widely-distributed base stations are not able to meet the requirements of new services with leased E1 or SDH. At the same time, compared with voice services, data services have even higher requirements on bandwidth, but lower returns in terms of investment. As a consequence, IP solutions are becoming more commonly preferred among mobile operators. For example, Vodafone and Telefónica are now selecting IP transport solutions, Orange and SFR have viewed IP as a basic feature. IP RAN is now becoming the key technology in the deployment of mobile network.
At the same time, IP technology is also having a deep impact on mobile services. For example, some services that are quite similar to VoIP, like Skype, have virtually smashed the foundation stone upon which traditional services are based. In addition, some attractive services such as IPTV and Mobile TV, are perfect examples of convergence between TV and telecommunication. Observing these changes, France Telecom decided to apply All-IP as the direction of network transformation, and to evolve its networks based on the concept of "One network for each service". That is, the control of the services will be IP-based (SIP, HTTP), and the transport of services will also be IP-based, further to an E2E IP-based network, including terminals.
IP and broadband appear to be the two main trends in mobile communications. At the beginning of 2006, Huawei established the first full performance HSDPA commercial network worldwide for Optimus in Portugal, as well as the first IP-based HSDPA network for eMobile in Japan. In September 2006, the very first IP-based 3G call was made in the commercial network in Japan by Huawei. It's a milestone of 3G network deployment. Compared with ATM-based networks, IP-based networks have a 10-20% improvement of transport efficiency, simpler data configuration and network adjustment, and provide an avenue for long-term smooth evolution.
Evolution to 3G
According to recent statistics put out by Informa, the 2G subscriber base will continue to increase steadily before 2010, but will decrease slowly after 2010. Therefore, this appears to suggest that the evolution from 2G to 3G will be a long-term and complicated process, and in the long run, 2G and 3G will still coexist. After 15 years' of rapid development, the coverage of 2G network has advanced to a considerable degree. However, before operators make the transition from 2G to 3G, they will have to face a variety of new challenges. The first challenge to be faced will probably be concerned with finding the best way to resolve the problem between increasing subscribers and overruns in network equipment costs. The second challenge will be centered on how to find the best solution for resolving the problem between network optimization and long-term investment. Finally, and most importantly, what would be the most effective method that could be adopted to improve core competitiveness when the differences between different networks are gradually eliminated.
In order to help mobile operators to face these challenges, Huawei has put forward its innovative EnerG GSM solution. The outstanding design philosophy of Huawei EnerG GSM is applying 3G technologies in the design of 2G system, which not only meets the requirement of a subsequent evolution from 2G to 3G, but also puts operators' investment to full use in the long term. EnerG BSC (Base Station Controller) adopts an All-IP platform to ensure performance and reduce cost. By introducing the multiple-carrier technology of 3G, EnerG BTS (Base Station) is able to provide DTRU module (Dual Density Carrier Unit) to minimize the complexity and cost. Moreover, EnerG solution uses coverage enhanced technologies such as, transmit diversity and 4-way receive diversity, thereby, allowing the coverage capability to be increased by 30% or more.
Another successful innovation of EnerG GSM is the introduction of 3G softswitch architecture into 2G network. As softswitch has become the mainstream technology for mobile core network, leading mobile operators such as, Vodafone, Orange, China Mobile, Telefónica, China Unicom, and T-Mobile have used softswitch to construct or reconstruct their 2G and/or 3G networks. The CDMA2000 softswitch market is also booming. The integrated 2G/3G softswitch, IP bearer, and layered architecture have all become the driving forces behind the continued development of mobile softswitch technology. For instance, Huawei's mobile softswitch has helped China Mobile to establish the biggest softswitch transit network in the world, and it has also helped Saudi Telecom to resolve its huge traffic problem during Hajj. Huawei softswitch application exceeds 150 million lines globally.
During the evolution from 2G to 3G, mobile operators will most certainly find new opportunities for further development of their existing 2G networks, but will also be faced with complicated reconstruction and costly capacity expansion. Therefore, in a strategic sense, some mobile operators are already beginning to use new standards and technologies to build their 2G networks. For example, Vivo, the No.3 CDMA operator in the world, began construction on its GSM networks in August 2006. Cesar Alierta, the CEO of Telefónica, recently stated, "To choose a GSM provider, is to choose a future WCDMA provider who can help us to protect our existing investment."
In order to be better prepared for the forthcoming market with next two billion subscribers, mobile operators are eagerly searching for a new strategic partner, especially for operators who lack competitive 3G solutions. These operators are now preparing to reconstruct their 2G networks because it provides a means for faster and more cost-effective network transformation. Huawei's GSM migration solution enables operators to enhance their network performance, improve user experience, and lower reconstruction costs. Currently, the solution has been approved by a lot of leading operators such as, Vivo, KPN, MTN, Megafon, and Ufone.
"Customer Experience" Oriented Services
To some degree, 3G is an extension of 2G. Although the possibility of a 3G killer service entering the market appears to be somewhat remote, yet the impulse to be innovative seems to never stop. However, the real innovation in the mobile market at present is more concerned with service convergence of voice, broadband, media and mobility. A good example of this is Co-love service provided by Korea Telecom. This service enables mothers and daughters to send messages to each other while watching VOD, and thus, is helping Korea Telecom to win over a lot of family customers. Another example is that of PCCW, which uses Huawei's CMB solution to provide TV services through wireless networks. By using CMB service, they have attracted more than 100 thousands of 3G subscribers in half a year.
Compared to traditional services, future mobile services will be able to provide better performance, which will be based on "customer experience". Earlier, when establishing 3G networks for PCCW, Huawei had proposed its idea of "plan and optimize networks based on service, and build 3G networks based on customer experiences." Many experience related specifications relating to PCCW networks such as, access delay, bit rate for uplink and downlink, are at the top world-class level. Hence, this is yet another important reason why PCCW is attracting a large number of subscribers. Huawei is also promoting and introducing inTouch Lab to its customers, which provides an open environment for service innovation, value chain cooperation, and service experience. To date, how best to provide "customer experience" oriented services has become a primary focus for mobile operators.
As networks make the transition from 2G to 3G, mobile operators are able to provide a variety of services more conveniently, but may struggle to gain in the terms of profit, as the revenue per bit will decrease rapidly. For instance, the SMS usually makes a profit of about 200 RMB per mega-bit, while voice service 10 RMB per mega-bit, whereas media services less than 0.1 RMB. However, it is hopeless for mobile operators to overemphasize the traditional voice service and SMS, they have to develop broadband and multimedia services for the future. In order to meet the needs on broadband and multimedia services, Huawei is in the process of providing new products and solutions in such fields as, HSPA, All-IP, MBMS/CMB, as well as AP.
Faced with the vital transformation in services and networks, how can mobile operators find new strategic partners? Without doubt, each mobile operator would have different answers. However, one can be assured that an equipment supplier that possesses leading-edge of technologies and is able to respond quickly to customers' requirements would potentially make an excellent co-partner. Huawei is one of the reliable equipment suppliers in communication industry. Huawei will be "one of the most undeniable forces that will help to shape market structure change in telecom equipment delivery in the next five years", said Scott Clavenna, the Chief Analyst for Heavy Reading.
At the Crossroads of Mobile Communication Era
By Zhao Yuan, Sun Yiran, Liu Huaping, Zhao Yahui
The primary focus in mobile market currently is directed towards 3G networks, and 3G concept is being lauded and accepted worldwide, and 3G construction and deployment are becoming the strategic option for most mobile operators. Nonetheless, some leading operators are making a rational return to GSM networks. According to recent statistics, there are presently more than 2 billion people who are living within areas where there is GSM coverage, but have not yet subscribed to GSM service, and there are more than a billion people who live in the areas out of the reach of GSM coverage. Therefore, one could rightly ask, should operators who are standing at the crossroads of the mobile communication era, openly embrace 3G, or should they return to GSM? Naturally, different operators will have different answers to this question.
Ufone: GSM Still Offers Opportunities for Growth
The GSM market in Pakistan is continuing to experience rapid growth. "The GSM network that Ufone established in Pakistan represents the largest network of its kind that country, and it is expected that Ufone will continue to be a leading operator after the reconstruction operation is complete."
Mobile communication penetration in Pakistan, which has a population of approximately 160 million people, is less than 20%. At the end of 2005, the number of mobile subscribers was only about 16.4 million. Presently, however, the number is increasing by about 1 million new subscribers per month. Hence, this is leading many people to believe that Pakistan is perhaps another dark horse in the Asia Pacific mobile market, with an annual revenue increment rate currently exceeding 140%. Awais Ahmad Khan Leghari, the Minister of Information Technology & Telecommunications, in Pakistan, recently stated, "This is nothing short of revolutionary."
According to statistics released in July 2006, among the six operators in the mobile market in Pakistan, Ufone's GSM network is the largest in scale, with 8.5 million subscribers. With the competition in the market heating up, Ufone decided to reconstruct all its existing networks. Before selecting a future equipment supplier, Ufone stated that it had three basic requirements that the supplier must be able to meet. The first, is fast network reconstruction; the second, is the ability of the reconstructed network to evolve into a 3G network; and the third, is that Ufone is looking for a long-term strategic partner.
Leading GSM equipment suppliers from all parts of the world, including the former two suppliers who built Ufone's legacy GSM network, all participated in bidding on the new programme. Ultimately, Ufone awarded Huawei with its 550 million USD contract.
Ufone's investigation of mainstream equipment suppliers started at the beginning of 2006. In April 2005, Huawei was invited to build a trial site for Ufone. Huawei completed construction on the site within a matter weeks. The quick construction of the whole turn key project set a record in the history of BTS construction in Pakistan. Moreover, Ufone was extremely pleased with high KPI such as, network coverage and the call drop rate.
After its deployment, Ufone employed Huawei's integrated GSM solutions, including its All-IP mobile softswitch core network and new-generation GSM dual density base station. Huawei's IP-based distributed networking, not only has the ability of disaster restoration, but also helps operators decrease their CAPEX and OPEX. Huawei has been applying its mobile softswitch to GSM networks from the very beginning. This ensures a smooth evolution from GSM networks to 3G networks and requires only a software upgrade of the core network, thus eliminating operators' worries about investing in GSM networks.
Pakistan has more than 50 thousands of villages, and more than 60% presently do not have a telecom infrastructure, primarily due to geographic reasons. In order to extend mobiles services to these rural areas, Ufone has employed a great number of Huawei's GSM dual density base stations, which, combined with 3G technologies, have the characteristics of high integration, strong sensitivity, and wide coverage. Huawei's keen insight and rich experience in project construction has helped to reinforce Ufone's confidence in the potential of the mobile market in Pakistan.
The opening and development of Pakistan's telecom industry provides a wide platform for mobile operators to increase the value and profits of their existing networks, and in a meaningful way provides good opportunities for equipment suppliers such as Huawei to participant in a competitive international arena. "The GSM network that Ufone established in Pakistan represents the largest network of its kind that country's history, and it is expected that Ufone will continue to be a leading operator after the reconstruction operation is complete. To date, the GSM market in Pakistan is continuing to experience rapid growth, and we are confident that we will continue to be the leading operator in the mobile market in Pakistan with the help of Huawei's EnerG GSM solution," said Babar Khan, CEO of Ufone.
After reconstruction is complete, it is anticipated that Ufone will have 17 million subscribers, which will assuredly give them even greater influence in the mobile market in Pakistan.
Vivo: Evolving Networks for the Future
"Vivo GSM is one of the largest mobile programmes to be undertaken by Telefónica in recent years. Naturally, to ensure that our network evolves into WCDMA, the way in which we go about enabling the network to be compatible with 3G service is very important to us."
Vivo is not only the largest mobile operator in the Southern hemisphere, but also the 3rd largest CDMA operator in the world. Vivo is a joint venture which was established by Telefónica Moviles and Portugal Telecom. The number of people currently using Vivo has reached the 30 million mark. As a world-class operator in Europe, Telefónica brings its advanced management experience and strict admission standard to Vivo. However, facing the strong likelihood that GSM will replace CDMA, the mobile services of Vivo, which are based on CDMA networks, are expected to face some crucial challenges ahead. The popular desire seems to be that change is in the wind for the main service.
Recent data publicized by Anatel, the telecom regulator agency in Brazil, stated that at the end of July 2006, CDMA services in Brazil occupied 26.3% of the market share. Compared with the percentage of the market share for the same time period last year, this represents a 2.6% reduction. As the only operator who provides CDMA service in Brazil, although Vivo still ranks No.1, its market share fell from 37.3% to 30.8% in the last year. This represents a reduction of nearly seven percentage points.
After considerable deliberation and a few rough choices, Vivo decided that it would transform its CDMA networks into a GSM network. For Vivo, which has 30 million subscribers, the construction of a new GSM network, not only means an investment of billions of US dollars, but also a tremendous strategic transformation, as well as the division of the telecom market in the impending 3G period. Therefore, Vivo gave much careful consideration in regards to the supplier for the programme. Vivo considered not only the supplier's creative and local service capability, along its engineering experience in Latin America in respect to the 3G aspect, but also whether the programme would be able to pass the evaluation that would be executed by its headquarters in Europe. After careful deliberation, Vivo finally decided to work together with Huawei for its new GSM network.
The turn key GSM programme for Vivo is not only about purchasing products and deploying the network, but more importantly, it is about how best to guarantee the capacity and quality of the network, while at the same time guaranteeing a good experience for subscribers. Cesar Alierta, the chairman of Telefónica, stated that, "We are not only choosing the supplier, but more importantly, we are choosing a strategic cooperator."
Because of fierce competition in the marketplace, GSM operators want to boost their ARPU, attract more users, and reduce network construction and maintenance costs, thus, allowing network value to be maximally achieved. Vivo also expects that this is accomplishable. The innovative EnerG GSM solution put forward by Huawei fulfills all of Vivo's demands in this regard. EnerG GSM is not only based on the revenue, CAPEX, and OPEX modules, but it also considers such factors as, network capacity, coverage, engineering, transport, softswitch, service, and evolution. It also helps operators to boost their ARPU. The EnerG GSM not only helps operators to attract more low-end users to access the network, but it also helps operators to reduce the TCO and churn rate. Hence, the operation of EnerG GSM more than fully satisfies the demands set down by Vivo.
In the words of Cesar Alierta, "Vivo GSM is one of the largest mobile programmes to be undertaken by Telefónica in recent years. Naturally, to ensure that our network evolves into WCDMA, the way in which we go about enabling the network to be compatible with 3G service is very important to us." The network equipment that is employed in the EnerG GSM solution can be further developed to accommodate 3G. The mobile softswitch core network is based on UMTS R4 architecture, and it allows both GSM BSS and UMTS RAN access to the network simultaneously. After being upgraded by using the appropriate software, the HLR will be capable of managing GSM, GPRS, and UMTS users and the core network equipment in the packet domain can be shared by 2G and 3G networks as well.
Teleco, a consultancy in Brazil, forecasts that in the near future, competition in the mobile market in Brazil will largely exist in the 5 richest states such as, Rio de Janeiro and South Oceania. These areas account for 670,000 square kilometers of the country, and have a combined population of approximated 50 million. The economy in these areas is also quite good, but the geographical makeup is quite complex and the population distribution is not balanced as well, which makes planning for wireless networks quite difficult. Take Rio de Janeiro as an example, in this famous tourist resort, there is a 636 kilometers long shoreline, and there are also mountains, lakes, a beautiful virgin forest, as well as a lot of skyscrapers. The city is hemmed in on every side by mountains, and there are mountains inside the city as well. After considering all of these factors, Huawei suggested some wireless planning technologies such as, intelligent underlay-overlay cell. By using these types of technologies, a larger station can be achieved by using less frequency.
Moreover, the Huawei's dual density BTS is also able to support multiple types of intelligent RF technologies and improve network performance efficiently. In terms of the unbalanced population distribution, the dual density BTS supports AMR/ICC technology to improve the quality of voice service, as well as the network capacity and coverage.
On the other hand, in order to minimize the impact on users from network migration, Vivo adopts Huawei's enhanced eMLPP+HR solution. The eMLPP+HR solution allocates different types of channels to users, in accordance with the predefined priorities of users. Therefore, the capacity of a network is increased, whereas the experience of high-end users is guaranteed.
Sun Yafang, the chairwoman of Huawei, believes that, "The leading solution, high quality and efficient service, as well as the localized development campaign of Huawei, will help Vivo to maintain its leadership role in the marketplace, while at the same time allowing it to provide creative services and rich experiences for its customers."
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EnerG Assisting Operators' Sustainable Development
By Wu Wujun
With a rich network deployment and adjustment experience history that exceeds 10 years, Huawei has launched its EnerG GSM solution that features high-speed, low costs, E2E network migration and network reconstruction.
Movilnet: Dancing in CDMA
"Movilnet is experiencing rapid growth in terms of network construction. The key to Movilnet's competitiveness in the market lies in our fast network construction and provision of rich services."
Movilnet is the second largest mobile operator in Venezuela. It is part of CANTV's holdings, which is the leading communications company in the country in regards to fixed lines, digital wireless, broadband, and dial-up Internet access. Movilnet operates CDMA 800M networks and currently has more than 6 million subscribers.
According to recent statistics released by Conatel, from March 2005 to March 2006, the number of CDMA subscribers in Venezuela increased by 107.63%.
In order to meet miscellaneous challenges from the market, Movilnet is searching for more effective ways to expand its existing network and develop differentiated services. José María de Viana, the CEO of Movilnet, recently stated, "Movilnet is experiencing rapid growth in terms of network construction. The key to Movilnet's competitiveness in the market lies in our fast network construction and provision of rich services."
In August 2005, Movilnet invited several leading global equipment suppliers to bid on Venezuela's network expansion programme. To ensure the quality of the programme, equipment suppliers had to meet three demands set forth by Movilnet. First, the equipment supplier would be required to introduce high performance equipment that would be able to meet the different characteristics of each of the regions in Venezuela. Second, the network construction should be able to facilitate Movilnet's subsequent optimization. And finally, Movilnet was looking for an equipment supplier with rich experience in the commercialization of the CDMA2000 softswitch. Ultimately, Huawei was chosen, not only for its excellent solution, but also because of the successful cooperative relationship it had with Iusacell (the largest CDMA operator in Mexico), which greatly aroused the interest of Movilnet.
Huawei's industry-leading BTS supports various transport modes such as, E1/T1, FE, STM-1, ADSL, microwave, and satellite, and also ensures the harmonious development of each independent component by way of its open broadband design. For core networks, Huawei provides a softswitch-based solution, which separates control and bearer functions and also ensures a smooth evolution to the IMS architecture. Moreover, Huawei provides an innovative network management solution which is specifically tailored for O&M services, and can greatly improve maintenance efficiency for operators.
After the restrict certification, Movilnet finally selected Huawei to construct its CDMA2000 1X/EV-DO networks. The construction includes a migration of partial equipments in existing networks, which should also be able to satisfy the requirements of future evolution.
In order to meet Movilnet's demands for evolution from 2G to 3G, Huawei implements a hybrid CDMA2000 1X network and EV-DO network, thus, ensuring a smooth upgrade from EV-DO Rel.0 to Rev. A, which will also be able to support a future AIE. Moreover, in consideration of reliability and security concerns, Huawei enhanced the CDMA2000 1X/EV-DO networks in terms of networking, user authentication, access management, anti-attack, and anti-fraud.
Over a several month period, Huawei helped Movilnet to complete the smooth migration and optimization of its existing networks. Currently, some networks have been put into commercial use, which has greatly stimulated the number of Movilnet subscribers. Movilnet is now planning to enrich its business modes and network services.
In October 2006, Movilnet presented an olive branch to Huawei for a second time, when it chose Huawei to construction CDMA2000 EV-DO networks in several crucial regions across the country. Upon completion of construction, Movilnet's CDMA2000 network will be the third largest CDMA network in Latin America, with more than 10 million lines. "We are aiming at providing domestic and foreign users with rich 3G services. Huawei satisfies our future development demands and is capable of helping us to further expand our CDMA2000 networks. We are now providing our users with the best 3G multimedia services in Venezuela, and we believe, by the end of 2006, our network subscribers will exceed 8 million," said José María de Viana.
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Building a Cost-Effective CDMA Full Service Access Platform
By Wu Si
Based on innovative patent technologies, Huawei's CDMA2000 1xEV-DO Rev.A E2E solution provides operators with a future-proof, high-performance and profitable full service access platform. Featuring an array of integrated competitive advantages, the solution supports multiple services such as VT, VoIP, BCMCS, radio broadband access, and streaming. In short, it boasts perfect technological and service integration.
First, the service flow-based QoS assurance mechanism allows distinguished dispatching for voice flow, video streaming and common data flow. This ensures a top quality VT service subscriber experience. Second, by integrating EV-DO Rev.A with Huawei's patent technology, the solution is able to solve delay and jitter problems effectively, thus creating a clear and uninterrupted VoIP voice experience for end users. Finally, the enhanced wireless ADSL and differentiated solutions (gold, silver, copper subscribers) enables wireless broadband access to generate greater operation profits.
Huawei's VCC and dual-network paging integration plan can effectively solve interoperability problems between DO and 1X services, and with continuous investment and R&D on BCMCS, Huawei has become the first provider industry-wide that supports BCMCS.
Huawei's CDMA2000 BTS series consists of macro, compact and micro BTS and RF remote module. Operators can implement networking flexibly, economically and rapidly in accordance to different coverage environments. By using DPD and Doherty technologies, the total power consumption of BTS is reduced by between 48%-58%, and the efficiency of power amplifiers is increased by up to 33%. Meanwhile, the heat dissipation requirements are lowered across the whole unit.
The equipment room describes a precious resource for operators. Given essential demands on space saving, Huawei's advanced BTS achieves this by its integration features such as the capability of supporting 18 sectors in a single cabinet, compact configuration and multi-band interchangeable insertion. In addition, each sector of BTS can guarantee an output power of 20W, with the coverage range exceeding that supplied by a common BTS of 10W by 34%.
Etisalat: Challenges & Opportunities
"In 3G times, we'd rather select a strategic partner than an equipment supplier. This is because, the partners will be working in close cooperation with us for a long period of time, and we should face the challenges that the 3G operation presents together in the future."
As the leader network operator in the Arab region, the Emirates Telecommunication Corporation, Etisalat, owns and runs world-class communication networks. Etisalat is famous for its creativity, advanced business, quality, service, and considerable profits. Its mobile network is also one of the most complex and busiest networks in the world, and its ARPU reach about 55 US dollars. Due to its long-term comprehensive superiority, Etisalat keeps on growing rapidly.
However, since 2005, the telecom market in the Middle East has experienced a lot of changes. For instance, the UAE government issued its second mobile license during this period. EITC, another operator who granted the second license to operate in the UAE claims that it will be capable of supporting HSDPA on the very first day when its 3G network is officially put into commercial use. Needless to say, this places a great deal of pressure on Etisalat. Nevertheless, for some time now, Etisalat has continued to be the leading operator in the Middle East, especially in terms of its technology innovation and new service rollouts. In fact, Etisalat has constructed its 3G network since 2003, meanwhile purchased licenses in many other areas in the Middle East. So, it is only natural that Etisalat would decide to make great efforts toward developing its 3G networks and services in UAE.
In May 2006, Etisalat invited public bidding for the expansion of its UTRAN network. The primary concerns were focused on the following areas: the support of HSDPA, equipment performance, commercial experience, and whether an All-IP network could be achieved. Although a large amount of international manufacturers have expressed an interest in bidding on the project, only few of them were able to fulfill the requirements imposed by Etisalat, and Huawei was included. The Huawei's new-generation NodeB supports 14.4Mbps HSDPA, which adopts highly efficient digital power-amplifier, along with multi-carrier broadband transceiver. The NodeB is based on an open CPRI-based architecture. By using the new-generation NodeBs, operators will not only be able to construct their networks more economically and rapidly than ever before, but also the performance of the network will be much better than before. Moreover, the innovative distributed NodeB solution, with its small size and easy installation, enables operators to save more than 30% of TCO.
Considering all of the above mentioned factors, it should come as no surprise to learn that Etisalat has expressed great interest in Huawei's IP networking solution. Etisalat has calculated the costs in the following way. The HSDPA network will be capable of supporting at maximum, a 14.4Mbps data service. Therefore, the operation of the HSDPA service requires a large transmission bandwidth in each NodeB. If the TDM transmission resource is configured with the maximum available bandwidth, then one cell will require seven E1s. Generally, the rent for one E1 runs about 3,200 US dollars a month. This being the case, then the rent for seven E1s would be approximately 22,400 US dollars. However, the rent for a 10Mbps IP transmission is only about 2,500 US dollars a month. Thus, by using IP transmission, Etisalat will be able to save at least 80% in terms of transmission cost. The transmission cost represents the main cost in the routine operating cost of the network. Therefore, saving on the transmission cost helps to promote common use of the HSDPA service. The current IP bearer network of Etisalat covers all of the main areas in the UAE. By using an IP bearer network, a lot of transmission resource is able to be saved and there is also more flexibility in terms of capacity, which allows for expansion.
Huawei recently organized a consulting team to work jointly with Etisalat. The cooperative team will conduct researches on the following areas: the network evolution implementation, operation, pricing, and charging etc. Etisalat has emphasized on many occasions that, "In 3G times, we'd rather select a strategic partner than an equipment supplier", and "Since 3G vendors will be working in close cooperation with us for a long period, then we should face the challenges that the 3G operation presents together. After comparing the solutions offered by many manufacturers, Etisalat finally decided to choose Huawei as its exclusive supplier for its 3G national network expansion project."
As an operator with a wealth of operating experiences and an accurate strategic view, Etisalat realizes that the domestic telecom market potential is quite saturated. Thus, domestic marketing cannot fulfill the requirement of rapid development for Etisalat. This being the case, then Etisalat decided to develop an international marketing strategy. The opening of telecom market in the Middle East brings unprecedented opportunities for Etisalat to consolidate its leadership role in the Middle East. The purchasing of licenses and multinational operations shows the willingness of Etisalat to develop an international marketing strategy.
In its annual report in 2005, Etisalat stated: "With the level of market penetration in the UAE reaching its saturation point and impending deregulation, Etisalat is seeking new and exciting prospects internationally to sustain growth. At the same time, the telecom industries in Africa, the Middle East and the Indian subcontinent are growing rapidly. For Etisalat this is a timely opportunity to strengthen its position as the leading telecom service provider in the region. As such, a series of strategic partnerships and alliances have been recently entered into, and Etisalat believes that, the close cooperation between Huawei and Etisalat appears to have a rosy future."
Vodafone Spain: Armed Contender in 3G Arena
Vodafone, one of the fastest growing network operators in the world, has continuously been on the lookout for new partners and competitive network solutions that will help expedite its 3G development.
As a leading player among the most dominant global mobile operators, Vodafone has been actively advocating and developing WCDMA solutions. To date, Vodafone has spent about ￡20 billion on purchasing 3G licenses and owns many sub-networks, which are located in 18 countries in Europe. Particularly, Vodafone Spain is one of the most important and strongest performing operating companies in the Vodafone Group, among its 13.5 million subscribers in Spain, the WCDMA subscriber base reaches approximately 1.2 million, which accounts for 65.33% of the total market share in Spain.
Nevertheless, the path towards 3G has brought a great deal of pressure to bear upon operators. As one of the fastest growing network operators in the world, Vodafone has continuously been on the lookout for new system providers and competitive network solutions that will help expedite its 3G development. Therefore, it is crucial for Vodafone to select equipment vendors by adopting a more comprehensive strategy.
Prior to becoming an approved supplier, Huawei and Vodafone had already been working in cooperation with one another to a substantial degree, with a global SCM (Supply Chain Management) certification. The certification lasted for two years, starting in 2003, and covered a range of different areas such as, finance, strategy, technology, corporation management, process management, and R&D system.
Consisting of two modules which can be installed, expanded, or evolved independently, the distributed NodeB of Huawei features small size, large capacity, easy installation, good environment adaptability. What's more, the full performance HSDPA supports myriad terminals, smooth networks evolution, and large downlink data throughput, which enables the system to provide high-speed data services. "The innovative NodeB solution for the radio access network, fully addresses our requirements for deploying a world-class 3G broadband network," said Helmut Hoffmann, the Global Networks Director of Vodafone.
Network performance and system reliability are generally what concern network operators the most, and Vodafone is no exception in this regard. Take the AVE high speed railway for example, network performance drastically declined and the call success rate dropped rapidly to 61% in the face of high-speed mobility, forcing Vodafone to remove the serving UMTS network it had deployed. However, after Huawei added seven trial sites, within 50km of each other along the railway, the quality of voice, video phone, and PS384K services greatly improved, with a call success rate up to 98.5% in carriages traveling at a speed up to 250 km/h. Thanks to the excellent performance, Spain covered its high speed railways with Huawei's NodeBs.
Since September 2005, Vodafone and Huawei have jointly conducted numerous lab tests and trial tests regarding Huawei's UMTS RAN. In the test report, Vodafone states: "Huawei has been technically validated as a 3G supplier for Vodafone, based on the test results." After the technical evaluation ended, Huawei ranked No.1 among the four preferred vendors, which further boosted Vodafone's confidence in Huawei.
In August 2006, after several rounds of evaluation and tests carried out among preferred suppliers, Vodafone announced that it had selected Huawei to construct its WCDMA/HSDPA networks in Spain. Thousands of Huawei's new-generation NodeBs will be installed for Vodafone Spain in major cities such as, Madrid. Detlef Schultz, the Global SCM Director of Vodafone, said, "We are delighted to have Huawei as our strategic partner, and regard its leading edge technology, professional service capability and in-depth understanding of network evolution as key drivers for our future cooperation."
Customer-Oriented 3G Service Network
By Guo Yajun
Although most global 3G services provided by operators in the first half of 2006 exist on 2G and 2.5G networks, some optional services that can make full use of 3G networks are becoming the effective means of driving markets and obtaining differentiated advantages.
In Japan, NTT DoCoMo continues to build its FOMA brand, including services such as flash downloading, i-motion mail, Deco-mail, i-motion ring tone, and multi-access. Video and multimedia content-based downloading and transport form the most popular current FOMA services. In Taiwan, Chunghwa Telecom has released a range of 3G value-added services including music station, RBT, trailer, incoming call search, emome finance and bank transfer facilities. In Hong Kong, PCCW is cooperating with Huawei to implement multimedia video services via CMB technology, which has effectively helped PCCW to attract more subscribers in a short time period. Globally, services such as mobile Blog and mobile TV are also being launched.
3G and 3G value-added services are driven by market demand, and the means of providing rich service applications with subscriber experience-based QoS assurance is the key issue for a given operator to evolve from a traditional telecom service provider to an integrated information service provider.
Service Network Trend
The current service system's status quo embodies scattered charging, overlapped capability, isolated data, enclosed contents and isolated management. Functions of each independent service platform are overlapped and interface protocols vary. Therefore, compatibility and interconnection cannot be achieved through similar technologies. Consequently, operators'infrastructures require continual construction, which wastes investment especially given that the 3G era demands continuous new service application. This situation is therefore untenable, and the necessary changes that are required to eliminate waste and enhance competitiveness describes one of the most urgent tasks for operators.
Huawei provides a service network-creating architecture design based on service OMA and 3GPP-defined specifications. Its design features enable operators to construct an open platform that supports the basic architecture of applications and content distribution based on telecom and information integration. An operator can quickly launch a very high quality of service that is consolidated by the professional management of content, partners and customers. Therefore, operators can easily respond to 3G challenges.
In Hong Kong, Huawei has successfully helped PCCW to deploy its 3G service network-creating architecture to provide customers with more than 30 new converged voice, text and video applications including digital music, unified messaging, cell multimedia broadcast and videoconferencing. Service, content, customer and partnership management are uniformly implemented, a feat which was unimaginable in the 2G and 2.5G eras. With the help of Huawei, 12 operators worldwide have constructed their 3G service network-creating architecture and have thereby transformed from a voice-dominant to an information service-dominant commercial mode.
Convergence & Openness: Improving Subscriber Experience
Service network-creating architecture is physically composed of network interface, capability component, capability open, application and management layers. The layered and open network design assists operators to employ their network architecture in a 2.5G network, and to implement service convergence and service content openness. Through a defined marketing strategy, operators can provide subscribers with on demand services. The service network-creating architecture supports three business modes: channel leasing, channel provision, and information operation. It also supports multiple networks, multiple access modes, and "simple & complete" operational support.
The service network-creating architecture has demonstrated its advantages in the context of numerous currently available services and, at present, RBT with mobile music features has become one of the most popular services worldwide. In China, from 17 May 2003, when the first commercial RBT application was put into use, to now, subscriber numbers have risen to around 80 million, deriving a market value of approximately RMB5 billion. The RBT copyright of Daolang, for example, has been sold for nearly RMB30 million, which is even greater than the revenue of its CD sales. This represents just the tip of iceberg: China Mobile has signed contracts with four global music giants to build the "Radio Music Rank" and hold a Singing and Editing contest. These events signify that the mobile music entertainment provides an excellent service transformation option.
The Huawei's AIMI digital music solution based on service network-creating architecture offers China Mobile fundamental assistance in terms of service transformation. The solution supports flexible commercial modes such as Revenu Share and PAG, and allows operators beginning from RBT to gradually transform to mobile digital music operation. It can also enable operators to re-organize content and application cooperation partnerships, with the provision of commercial and technical consultation.
The AIMI solution also gives subscribers the opportunity to enjoy new, personalized services and an individual can select or set their favorite music to freely share with others. According to user favorites, the system can help a user to find other content from the database and automatically send new music to handsets. So far, Huawei has deployed the AIMI digital music RBT solution for more than 60 operators who serve 150 million subscribers worldwide, including France Telecom/Orange, Portugal Optimus, Mexico Telcel, Morocco IAM, Thailand AIS, India Reliance and Tata.
The service network architecture featuring convergence and openness enhances subscriber experience and drives operators to transform their services, which delivers opportunities and profits for other service providers.
Evolution Strategy for Service Network
Service network creation has emerged as a key goal, which in turn raises the issue of identifying methods to evolve from the existing complicated service system to the target architecture. It also prompts the following questions: Is it possible to completely discard established services and support systems such as IN, SMS, billing systems? Are all services implemented via the target architecture in the one-step mode? This is of course risky for operators to follow these steps. The definition of a realistic service target for service network creation in order to realize the target architecture must be approached in stages.
During evolution, operators have to confront the core issues of real time pricing and billing. Huawei's converged billing solution based on service network-creating architecture can process the integration of prepaid and postpaid services, voice and data integration, and unified management for all users. Operational efficiency subsequently increases while management costs decrease. Based on Huawei's IN and billing system, the solution can be directly upgraded to converged billing architecture. The open design enables the current network's service capability integration, and the service layer which can be upgraded to converged billing architecture. This can assist operators launch new services more quickly, with increased flexibility in marketing, service segmentation, and personalization.
After the deployment of service network-creating architecture in the core billing system, operators can gradually adopt the new architecture during mature service upgrades and the commercial launch of new services. When meeting subscriber integration and personalization requirements, it can allow the service layer to evolve into the target architecture.
Since 2005 demands in the mobile market for unified messages, digital music, video entertainment and enterprise information applications have increased. Predictably, the market scale of these four fields may equal RMB20 billion. In response, Huawei has launched its converged solution message, AIMI digital music, media center and enterprise information service solutions based on service network-creating architecture. These solutions allow operators, equipment providers, co-partners, third party and SPs, and CPs to work together to consolidate services and content to form an E2E structure, thus providing individuals and enterprises with high-grade information services. Subscribers can therefore receive the services complete with a flexible charging package, interactive service experience and unified billing system provided by operators.
At present, the telecommunications and IT industry emphasizes SDP architecture research and investment, which indicates that service network creation represents a premium choice. It is wise for an operator to first deploy the target architecture in rapidly developed service fields, with the services in turn boosting technologies and guaranteeing a successful commercial mode.
For operators and providers, the potential offered by the next 2 billion untapped subscriber base presents a great opportunity as well as a challenge. Huawei has attained successful commercial application in terms of the following services: voice, 2G/3G data, digital music, video, and enterprise information etc. Huawei is ranked first in RBT service provision, first in the number of IN subscribers globally, and second in SMS volume. Huawei looks forward to continue its mutually beneficial cooperation with operators and partners to construct products and service architectures concurrent with industry developments.
Mobile Terminals Fuel 3G Commercialization
By Zhou Wen
From Communications Weekly
The acceleration of 3G global commercialization is running parallel with the rapid development of its associated technologies, as a result, increasing numbers of 3G commercial networks are being constructed. Given the trend for operator-oriented customization, mobile terminal vendors are joying in greater prominence in the large-scale application of 3G in large part because of the lowered costs that operator and terminal vendor partnerships are creating.
WCDMA Leads Terminal Customization
According to the latest statistics released by Strategy Analytics, 70% of worldwide 3G subscribers are WCDMA-based. The total number has topped 100 million users, which marks a key point in the future development. WCDMA's dominance has been spearheaded by the efforts of telecom operators such as Vodafone, NTT DoCoMo, Hutchison, and SK Telecom. Having evolved from the GSM technology that serves 73.5% of 2G mobile subscribers, the potential of WCDMA technology is gradually coming to fruition.
Researchand Markets' recent statistical analysis shows that 3G is booming in Europe and an expected 20% of mobile subscribers in Western European will be served by 3G networks in 2007. In some mature and competitive markets, such as Britain, Sweden, and Italy, it is expected that 3G networks will achieve comprehensive coverage by 2009.
Analysts have identified the decreased cost of 3G terminals as an integral factor stimulating the rise of 3G. Indeed, the first half of 2006 witnessed dramatic changes in 3G markets, and gave rise to the trend that terminal customization is the catalyst for market dominance and operators' reduced costs. Currently, incumbent UMTS terminal providers such as Nokia, Samsung and Huawei, have established solid partnerships with major operators in order to be fully prepared for the advent of the 3G era.
Vodafone, mmO2 and T-Mobile have consolidated their leading market positions by customizing terminals and lowering charges. In February 2006, Vodafone signed a contract with Huawei, under which Vodafone will exclusively purchase Huawei's 3G terminals over a period of at least five years. Huawei's cost effectiveness, proven, high-grade solutions and flexible customization strategies are designed to assist Vodafone expand its brand equity and market share.
In the Asia-Pacific region, the two leading global 3G market pioneers, Japan and South Korea, have also adopted mature service-based terminal customization systems. These systems serve to effectively control and manage the design and manufacture of 3G terminals via comprehensive regulation, unified management, joint R&D and an ethos of mutual benefit. In terms of cost, DoCoMo launched various types of customized terminals in Japan in the first half of 2006 priced at about 10 thousand Japanese yens, which smashed the average market price of 35 thousand yens. Moreover, DoCoMo's strategy to cooperate with more terminal providers is likely to lead to further price reductions.
Huawei provides an excellent example of the increasingly important role terminal providers are playing in the global 3G market. By adopting Huawei-customized terminals and providing a greater range of value-added services, Vodafone, Hutchison, Telefónica, SFR, PCCW, and Chunghwa Telecom have all taken steps into leading the 3G market.
HSDPA Boost the Application of Data Services
Customers have demonstrated a growing enthusiasm for high-speed data services, which is illustrated the increasing global commercial application of HSDPA. As the first key step for WCDMA evolution, HSDPA possesses the advantages of both mobile telecommunications and broadband services. Not only can HSDPA greatly enhance mobile networks' bandwidth bearing, but it also enables consumers to enjoy multimedia communications anytime and anywhere.
The expansion of 3G networks in Europe is leading operators to provide more indoor coverage and deliver HSDPA services to key areas. DoCoMo plans to launch HSDPA services in Japan, and, according to Strategy Analytics, an industry milestone is set to occur with Cingular's planned HSDPA deployment in America.
Mass-scale HSDPA application will doubtlessly boost data card development, of which Option and Huawei are two leading global providers. Huawei is currently the second largest data card provider for Vodafone, and its E620 data card family has been widely adopted by South Africa's top two operators, Vodacom and MTN, resulting in their leading market share. At CommunicAsia 2006 held in Singapore, Huawei launched the world's smallest and fastest HSDPA USB modem E220, which largely facilitates wireless network access for both laptops and PCs. Subsequent to its large-scale 3G handset exhibition in China last year, Huawei showcased its 3G handset U528, fully illustrating the company's confidence in China's rocketing 3G market.
3G in China, Well Prepared to Win
Before the eagerly anticipated licenses to 3G services are awarded by the national government, the mobile market in China is witnessing a sustained and rapid growth, and, by 2008, statistics indicate that the mobile subscriber base may exceed 500 million. China boasts the world's largest handset market and the huge market potential of around 12 billion US dollars is causing a scramble amongst global telecom equipment vendors to seek partners in China ready for when licenses are awarded. This is demonstrated by Vodafone's contract with Huawei signed earlier this year, and DoCoMo's pledge to seek partners in China immediately after 3G licenses are released.
As the TD-SCDMA standard, which is competing with WCDMA and CDMA2000 as a 3G technology, is to unveil the issue of 3G licenses in China, incumbent operators and equipment vendors are looking to deployments. Successive to its large-scale 3G handsets experience showcase held in China last year, Huawei launched the world's smallest and quickest HSDPA USB modem E220 and its 3G handset U528 in Singapore, fully showing its confidence in China's 3G market in 2006.
An operator-led 3G market that features solution customization has gradually come into being, and operators and vendors such as Vodafone, DoCoMo, Hutchison, Huawei, Nokia, and Samsung, are jointly promoting the rise of 3G. It is expected that market segmentation coupled with the expansion of the industry chain will more ably place mobile operators at the core telecommunications. The future of the 3G market will be stimulated by developments in the convergence of service, technology, networks, applications, as well as widely collaboration, and flexible customization model and charging package.
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