ZTE NG DSLAM: A New Generation Broadband Access PlatformAs the operators are transforming themselves–transitioning their legacy networks to next generation networks (NGN)–a third generation DSLAM–NG DSLAM–is introduced.

The Evolutionary Path of Fixed Networks An evolutionary path is envisaged for the fixed network.

ZTE Showcases at the 3GSM World Congress 2007

ZTE and Samsung Team up for Home NodeB R&D

ZTE Launches the World's Fastest HSUPA Data Card

ZTE to Develop Third Generation Mobiles for Telefonica

Vodafone Signs Handset Procurement Agreement with ZTE

ZTE High-end Routers Product Enters European market

Tech Features

News Briefing

ZTE—Your Expert on WDM Optical TransmissionBacked by strong R&D capabilities ZTE is continually innovating and has developed a range of advanced solution to help provide high levels of services to customers.

Booming Growth for ZTE’s Data ProductsZTE’s full series of routers and switches have achieved continuous breakthroughs in the Chinese carrier and enterprise network markets as well as the oversea markets.

Tech Features

8

Tech Features

Tech Features

www.zte.com.cn/magazine/English

Vol. 9 No. 2 Issue 85 February/2007

1

2

2

3

4

12

R&D Closeup

Beijing R&D Center Sharpens the Competitive Edge of ZTE

6

A Monthly Publication

Leading Edge

Air Interface Evolution of CDMA2000

18

153

3

ZTE TECHNOLOGIES

Editorial Board

Editor-in-Chief: Gu Yongcheng

Vice Editor-in-Chief: Huang Xinming

Editorial Director: Zhao Lili

Executive Editor: Liu Yang

Circulation Manager: Chen Jiali

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ZTE Profile

ZTE is a leading global provider of telecommunications equipment and network solutions. ZTE's product range is the most complete in the world—covering virtually every sector of the wireline, wireless and handset markets. The company delivers products and services to customers in more than 100 countries.

Integration of IPTV into Existing Operating SystemsThe middleware provides abundant application program interfaces (APIs) that allow integration with the current billing and operating system.

Tech Features

'In 2007, we expect to sell around 25 mn handsets globally of which 10 mn will be sold in India'

Press Clipping

23

Project Management Leads to Network Optimization SuccessWith a focus on a series of project-specific factors, the network optimization project came to a successful conclusion within the specified timeframe.

Case Study

23

21

26

Main Topic of Next Issue: IMS

21

ZTE Inks Deal with China Unicom for CDMA Handsets

Handsets

27

ZTE TECHNOLOGIES

News Briefing

1

ZTE, a leading global provider

o f t e l e c o m m u n i c a t i o n s

e q u i p m e n t a n d n e t wo r k

so lu t ions , showcased i t s l a t es t

technologies, services and solutions at

the 3GSM World Congress 2007, the

mobile industry’s premier event that

took place from February 12th to 15th

in Barcelona, Spain.

U n d e r t h e s l o g a n ‘ S t r o n g e r

Together’, ZTE displayed innovative

mobile and wireless technologies and

products such as WCDMA products,

its UMTS series of base stations,

WiMAX products, IMS equipment,

and a full range of handsets.

ZTE also delivered a speech at one

of the 3GSM World Congress 2007

forums. Mr. Shen Donglin, deputy

general manager of ZTE’s mobile

division, speaked on ‘Next Technology

Evolution’ on Tuesday, February 13th.

Additionally, ZTE launched a new

base station and made a series of major

announcements with leading telecom

operators during the 3GSM World

Congress 2007.

Mr. Wen Ku (2nd R), Director General of Department of Science & Technology, MII, and Cao Shumin (2nd L), Vice President of the China Academy of Telecommunication Research (CATR) at ZTE’s booth

ZTE Showcases at the 3GSM World Congress 2007

ZTE TECHNOLOGIES

News Briefing

2

ZT E C o r p o r a t i o n , a

l ead ing g loba l p rov ide r

o f t e l e c o m m u n i c a t i o n s

equipment and network solutions, has

signed an agreement with Samsung

to jointly work on the research and

development of WCDMA-based

Home NodeB products.

The Home NodeB, also referred

to as ‘femtocells’, will be specifically

d e s i g n e d t o m a n a g e i n d o o r

telecommunications and enable new

broadband network applications,

ZTE Corporation, a leading global provider of

telecommunications equipment and network

solutions, launched the world’s fastest HSUPA

data card at 3GSM World Congress 2007 in Barcelona,

Spain.

The MF362, scheduled to enter into market in

Q2 2007, is a HSDPA/HSUPA compatible data card

supporting a wireless uplink transmission rate of

2.0Mbps and a wireless downlink of 7.2Mbps.

The MF362 is one of the first HSUPA cards to be

introduced to the market. It will be sold in volume to

operators around the world for sale to end users as a

ZTE or operator branded device.

ZTE Launches the World's Fastest HSUPA Data Card

The signing ceremony for the Home NodeB R&D agreement between ZTE and Samsung

ZTE and Samsung Team up for Home NodeB R&D

such as assisting in the convergence

of fixed and wireless telecoms in the

home. The Home NodeB optimizes

the in-building 3G experience for the

subscriber within their home or work

place.

“Samsung is not only one of

the world’s major handset vendors

but also one of the major telecoms

equipment providers, and Samsung

and ZTE are both leading telecoms

players in their respective areas with

different products in different markets.

3G boosted to enable true convergence in the home

This cooperation will help combine

our strengths to jointly compete in the

global 3G market,”said Samsung Vice

President Mr Li Xiaozhong.

ZTE TECHNOLOGIES 3

Vodafone Group and ZTE

Corporat ion announced

a handse t p rocurement

a g r e e m e n t w h i c h w i l l s e e t h e

Chinese company produce a range of

Vodafone-only branded, ultra-low cost

handsets for sale across Vodafone’s

Markets.

The handsets will only carry the

Vodafone name, adding to the range

of devices which Vodafone offers

branded in this way for the consumer

Vodafone Signs Handset Procurement Agreement with ZTE

market, and marks the continuation

of Vodafone’s Or ig ina l Des ign

Manufacturers’ strategy, which is

intended to bring to market high-

quality and low-cost devices under the

Vodafone name.

Vodafone anticipates offering

the first Vodafone-branded, ZTE-

manufactured handset, a 2G ultra-

low cost device, created particularly

for sale in Emerging Markets, in the

second quarter of 2007.

Telefonica Espana and ZTE,

a leading global provider

o f t e l e c o m m u n i c a t i o n s

equipment and network solutions,

have reached an agreement to jointly

manufacture and distribute 3G mobile

telephones for the Spanish market. The

new ZTE phones will be launched by

Movistar during 2007 and will boast

the latest technology and features at a

highly competitive price.

Telefonica and ZTE will form a

joint team to work on the development

projects and an independent team

He Shiyou (L), SVP of ZTE and General Manager of ZTE's Handset Division, and Luis Ezcurra, General Manager of Business at Telefonica Moviles Espana

will be formed to develop ZTE

products in Spain. The first product

of the collaboration will be a 3G

phone, called the F230, developed for

Movistar by ZTE.

Zheng Qi, Director General of the

Spanish office of ZTE in Madrid, said:

“From a geographical and economic

point of view, Spain is a key market

for ZTE. Therefore, an agreement with

the leader in that market–Telefonica

–is an ideal opportunity to show

our technological expertise in the

development of new 3G handsets.”

ZT E C o r p o r a t i o n , t h e

f a s t e s t g r o w i n g g l o b a l

telecommunications equipment and

network solutions provider, has been

awarded a contract to provide high-

end router and switching products to

Vestitel, a subsidiary of Bulgaria’s

largest natural gas company Overgas,

helping Vestitel to expand its triple-

play network from the country’s

capital city Sofia to four other major

cities, Varna, Bourgas, Rousse and

Veliko Tarnovo.

ZTE High-end Routers Product Enters European market

ZTE to Develop Third Generation Mobiles for TelefonicaMovistar to launch new F230 phone this year

ZTE TECHNOLOGIES

R&D Closeup

4 ZTE TECHNOLOGIES

Beijing R&D Center Sharpens the

transmission. The establishment of

the Beijing R&D center facilitated the

company’s expansion into the arena

of high-capacity transport network

in late 1990s, greatly enhancing the

competitiveness of ZTE’s optical

products. After almost ten years of

development, this center has become

a mainstay of innovation in optical

transport for ZTE.

The center broadened its R&D

scope when a data communications

R&D base was set up in August 2006.

It’s been expanded further when the

company centralized its operating

branches in Beijing on a single site

at the beginning of this year. Hence,

the center is expected to play a bigger

role in the company’s development:

attracting more talents and increasing

the company’s overall strength before

the 3G license is issued and before the

Beijing 2008 Olympic Games is held.

At present, nearly 300 engineers are

engaged in research and development

of optical transport, among whom, 70

percent holds a master degree. With

well-defined product development

technology roadmap and objectives,

the center has built a cohesive fighting

force with the employee commitment

and satisfaction maintaining at a high

level. It is through their dedicated

effort that the center have made

improvements in R&D process

normalization, talents cultivation, R&D

efficiency, logistics operation, product

planning, standardization activities,

p a t e n t s p o o l i n g , a n d p l a t f o r m

development. The center passed the

TL9000 certification initially and its

DWDM First Year Return Rate (YRR)

reached the lowest level in the industry.

A good startOne year after the center was set

up, ZTE and Beijing University of

Posts and Telecommunications (BUPT)

In 1998, ZTE opened the Beijing

R&D center in Beijing, China’s

capital city, cultural, political, and

economic center, as part of its drive to

increase optical R&D. The research

areas of the center now include

DWDM, CWDM, and ROADM as

well as data communications.

As people demand a broad variety

of services, greater emphasis is put

on large capacity and long distance

Competitive Edge of ZTE

ZTE TECHNOLOGIES 7

jointly undertook the OADM subject

of National 863 Programme in China.

In 2001, the OADM equipment of

this project passed the appraisal by

an expert team. ZTE sustained its

momentum of success with a series

of breakthroughs both in the Chinese

and international markets including the

west ring project of China Mobile.

As ZTE had accumulated a certain

amount of experience in ultra long-

haul projects, it was appointed as editor

to draft recommendation on Raman

amplifier technology in 2003, which

was approved in 2005. In September

2005, ZTE was asked by ITU to draft

the standard on adaptive dispersion

compensators.

A s Z T E i s p a r t i c i p a t i n g i n

international standardization activities

and pushing to set the standards, it is

also vigorously implementing patents

strategy. It has acquired more than 100

patents in the optical communication

f i e l d , a m o n g t h e m , t h e c l o c k

management and protection techniques

won China Excellent Patent Awards.

ZTE has been active in research and

development on standards and patents

relating to optical communications. Take

2006 as an example, ZTE registered 108

Chinese patents, and 11 international

patents , and made a total of 23

contributions to ITU.

As a result of its strong R&D

ability, ZTE’s DWDM system has

realized a leap-forward development,

with a capacity of reaching 1.6Tb/s,

fully satisfying the requirement of

next generation services. With the

adoption of multiple industry-leading

technologies such as Raman amplifiers,

enhanced FEC, dynamic power

equalization, and distributed dispersion

management, it can implement super

long-haul non-REG transmission

distance of more than 5000km over

G.652 and G.655 optical fibers.

R&D bears fruitsWith cutting-edge technologies,

ZTE has succeeded in carving a niche

for itself in the optical networking

product space. Today, ZTE’s WDM

products are widely used in trunk line

networks and local area networks of

China’s major operators while entering

countries in Southeast Asia, South

Asia, the Pacific region, Western

Europe , Eas te rn Europe , South

America and North Africa. ZTE has

had the highest average sales growth

rate of all the mainstream optical

transport equipment providers from

2003 to 2005 according to global

telecoms analyst organization, OVUM-

RHK.

Indeed, ZTE has made a great

headway with its WDM solutions since

its triumph in 2002 (China Mobile’s

west ring project). In India, ZTE was

selected to build Phase I of the BSNL

national backbone network and was

authorized to carry out the Phase II

capacity expansion project. This is the

first national-level backbone network

installed by ZTE outside of China,

covering two thirds of India. In China,

ZTE was chosen by late 2005 to carry

out the expansion phase of China

Mobile’s west ring project, which

boasts the most nodes and the longest

transmission distance.

In 2006, ZTE has been riding a new

wave of optical growth. In the first half

of 2006, ZTE’s share of the Chinese

WDM market was first and its share

of the international LH DWDM was

third. Meanwhile, ZTE has made solid

progress in one of its most important

market, Europe. It signed with GTS

Central Europe in early 2006 for

deployment of an ultra long-haul

DWDM backbone transmission network

spanning Eastern and Western Europe.

ZTE offers a comprehensive range

of optical products for all kinds

of networks, meeting customers’

demand at all levels. For the metro

network, ZTE offers the WDM metro

equipment that has special designs

for metropolitan networks such as

multi-service OTU and T-MUX as

well as a most complete protection

switching structure in the industry.

The ROADM-based DWDM system

is used in metro core, meeting the

situation when traffic continues to

grow. ROADM offers advantages

over the conventional OADM such

as flexibility for bandwidth growth. It

features add-drop capability of 40 and

80 wavelength, and “pay as you grow”

scalability. ZTE’s compact and high

performance metro CWDM system, on

the other hand, is used in metro access

networks.

Innovation is key to ZTE’s business

success. R&D has always been the

cornerstone of the company’s strategy.

The Bei j ing R&D center as the

backbone of ZTE’s optical transport

development will keep innovating with

a market-oriented approach, and make

innovation propel the development of

ZTE.

5

ZTE TECHNOLOGIES

Leading Edge

6 ZTE TECHNOLOGIES

Th e T h i r d G e n e r a t i o n

Partnership Project 2 (3GPP2)

standards organization is

developing the next generation of

CDMA2000 wireless communications.

CDMA2000 has a long-term evolution

path which offers significant benefits

such as enhanced technological

performance, low-cost delivery and

short time-to-market. The CDMA2000

evolut ion includes air interface

evolution and core network evolution.

Fig.1 demonstrates the evolution path

of the CDMA2000 air interface.

Each step in the evolut ion of

CDMA2000 cap i t a l i z e s on t he

inhe ren t advan tages o f CDMA

while introducing new technologies,

including Orthogonal Frequency

Divis ion Mul t ip lexing (OFDM)

or OFDM Access, multiple-input

multiple-output (MIMO), and space

division multiple access (SDMA), to

offer high network capacity, high data

rates, and low latencies, minimizing

the operational cost.

EV-DO Rev. B The EV-DO Rev. B or multi-carrier

EV-DO standard is the “CDMA2000

High Rate Packet Data Air Interface

Specification” published in May 2006

by 3GPP2. Rev. B provides higher

peak data rates and improved support

for delay-sensitive applications. Fig. 2

is a basic comparison among different

EV-DO technologies.

Numerous techniques are used to

enhance the performance of EV-DO

Rev. B. These include:● Channel aggregation that allows

operators to combine 1.25MHz

channels, the current 1x channel

width in agglomerations of up 15

or 20MHz total which would allow

73.5Mbps downlinks ● Multi-carrier EV-DO which supports

the symmetric and asymmetric

forward and reverse link carriers ● Multi-carrier terminals supporting

Rev. A devices and operation on

non-contiguous carriers● Improved HARQ and multi-user

diversity in the frequency domain

to achieve higher spectral efficiency

for the forward link ● Support flexible duplexer spacing,

which enables hybrid frequency

deployment scenarios

Air Interface Evolution of CDMA2000

Fig. 1 CDMA2000 roadmap

Zhu Xiaoguang, Yu Yuanfang, Xin Yu, Zhao Xiaowu

ZTE TECHNOLOGIES

EV-DO Rev. B

Multiple carriers, higher performance per carrier

Broadband applications

RAN

Key features

Key services

EV-DO

All-IP, high FL data rates

Best effort downstream services (Internet access, MoD, VoD, BCMCS)

EV-DO Rev. A

Improved QoS, high RL data rates

Low latency communication services (Video telephony, VoIP, EBCMCS)

FL 2.4Mbps 3.1Mbps 73.5Mbps

RL 153kbps 1.8Mbps 27Mbps

DataRate

Fig. 2 A basic comparison among the evolutionary steps of the EV-DO standard

5

● Improving terminal battery life

with discontinuous transmission

and reception in talk time and quick

paging channel in the standby time.

Rev. B is a very competitive and

cost-effective wireless broadband

solut ion in the near and middle

future. The cost of upgrading to Rev.

B is low as EV-DO Rev. B can reuse

EV-DO Rev. A network, minimizing

hardware investments. The existing

Rev. A base station channel cards

can be easily upgraded to Rev. B.

Compared with the Rev. A protocol

structure, there are no more changes

in Rev. B except adding the multi-

carrier protocol to the Connection,

MAC layer and physical layers. As

Rev. B is backward compatible with

Rev. A devices and applications,

operators can roll out Rev. B as

needed in selected areas.

EV-DO Rev. C3GPP2 brought forth Loosely

Backwards Compatible (LBC) and

Strictly Backwards Compatible (SBC)

options for Rev. C. In the SBC mode,

the legacy units are required to be

supported on the SBC carrier; in the

LBC mode, the legacy units don’t need

to be supported on the LBC carrier.

The LBC scheme was supported by

almost all the companies while those

who opted for SBC are just but a few.

The LBC mode uses the FDD mode or

the TDD mode. The LBC TDD hasn’t

been discussed in detail yet.

A LBC framework proposal for

FDD was accepted by the TSG-C

meeting in July 2006. It is based on a

proposal submitted by Huawei, KDDI,

LG Electronics, Lucent, Motorola,

Nortel, Qualcomm, RITT, Samsung,

China Unicom and ZTE. The final

version of LBC FDD was scheduled to

be published by June 2007.

The framework requires the system

to operate in the full and half duplex

FDD mode, supporting scaleable

bandwidth. The system is designed to

be capable of delivering robust mobile

broadband access to users and can

improve the spectral efficiency and

latency with advanced modulation,

link adaptation and multi-antenna

transmission techniques. Features

necessary for mobile operation such as

fast handoff, fast power control, inter-

sector interference management are

integrated into the design.

T h e r e t r a n s m i s s i o n l a t e n c y

in the framework is quite small,

approximately 7ms on the forward link

and reverse link. The peak rate is over

260Mbps in a 20MHz forward link,

and 70Mbps in a 20MHz reverse link.

The system in the proposal uses

Orthogonal Frequency Divis ion

Multiple Access (OFDMA) on the

forward link and supports antenna

techniques like MIMO and SDMA.

The reverse link is quasi-orthogonal,

i.e. it employs orthogonal transmission

based on OFDMA, together with non-

orthogonal multiplexing with layered

superposed OFDMA (LS-OFDMA).

The reverse link also includes optional

CDMA transmission for low-rate traffic.

I n t e r f e r e n c e m a n a g e m e n t i s

obtained through fractional frequency

reuse (FFR), improving coverage

and edge user performance. The

FFR is now under study. Optimized

throughput/fairness tradeoff is achieved

through distributed power control

based on other cell interference.

With the belief that the technology

evolution promises product enhancements

and better customer services, ZTE

will continue to closely monitor

the evolution of the CDMA2000

technology and actively participate in

the development of it.

7

ZTE TECHNOLOGIES8

From the 19th century to the

beginning of the 20th century,

the global public switched

telephone network (PSTN) subscribers

have experienced a high speed growth

and the fixed voice service is the

main contributor to carriers’ revenue.

But in recent years, the worldwide

PSTN telephone networks have finally

reached a plateau.

Data from Gartner (see Fig. 1)

indicates that the number of the

global PSTN subscribers will reach

its peak in 2007 at about 1.3 billion,

The Evolutionary Path of Fixed Networks

and then register a negative growth.

On the other hand, Voice over Internet

Protocol (VoIP) service, also known

as IP te lephony is moving in to

mainstream. The consumer VoIP

market will increase at a compound

growth rate of 55 percent while the

business VoIP will record phenomenal

compound growth rate of 72 percent.

VoIP picks up fast in Europe and North

America. Broadband Internet access

also maintains its growth momentum.

As growth in broadband access internet

and VoIP revenues remain robust, the

voice service is projected to account

for 48 percent of operator’s fixed

services revenue by 2009, as compared

with 65 percent in 2003.

New modes of competition, cross-

elastic effects from mobile and VoIP

services are gradually eroding the

PSTN business. Circuit-switched

technology is being replaced by more

cost-effective packet-based wireless

and Internet technologies, leading

to a lower profit margin of voice

service and a continuous decrease of

average revenue per user (ARPU). The

Mu Anrong

Tech Features

ZTE TECHNOLOGIES 9

fixed operators’ revenues are sliding

obviously in recent years. We, here

at ZTE, believe that the traditional

PSTN network is not as competitive

as the mobile and VoIP networks are,

and this can be attributed to the closed

architecture of PSTN that is incapable

of creating diversified services for

users.

Migrating towards NGNHave fixed networks already reached

ceiling performance? What’s the future

development of fixed networks? Fixed

network operators are looking to

transformations.

According to the need hierarchy

theory of Maslow, the human being

will move to high level needs after the

lower level needs are met. That’s the

same in the communications industry.

Voice communications is a basic

service that has already got high

standards and operators need to offer

services beyond basic voice (e.g.

data, broadband multimedia services)

when the world economy is growing

fast. In other words, we not only

need the communications technology

(CT) to suit our basic communication

needs, but also information and

communication technologies (ICT)

that prompt changes in our lifestyles.

As next genera t ion ne tworks

(NGNs) technologies are maturing,

n e w t e c h n o l o g i e s s u c h a s I P

Multimedia Subsystem (IMS), and

Fixed Mobile Convergence (FMC)

emerge one a f t e r ano the r, new

opportunities are created for new

services offering and operators are

impelled to accelerate the pace of

transformation.

What is the direction of fixed

network transformation? Experience

shows tha t th i s t r ans fo rmat ion

will require operators to redefine

themselves as something greater than

merely basic voice service providers to

more of integrated information services

providers. This involves transformation

in marketing strategy, operational

mode, organization structure, and

network architecture.

T h e n e t w o r k a r c h i t e c t u r e

transformation requires a fundamental

change in the way PSTN services are

provided. As we know, although the

PSTN technologies are very mature,

the PSTN network has poor service

provision capability as it is a closed

network. Since it is difficult to provide

attractive and value-added services,

operators should establish an open

network architecture to facilitate

deployment of new services.

NGN is the development trend of

fixed networks which allow operators

to create an architecture based on CT-

IT convergence. Softswitch is the

best solution for the optimization and

reconstruction of the PSTN network

at present. NGN introducing the

Softswitch technology has emerged at

the forefront of the telecoms industry

and is proven mature by a host of

successful deployments. It has the

following advantages in its technology:● Open and hierarchical architecture

NGN is divided into multiple layers

Fig. 1 Worldwide fixed network size data

ZTE TECHNOLOGIES10

Tech Features

with standard-based protocols and

interfaces between them. ● Strong networking and access

capability

NGN support mult iple access

technologies tailored to different

application environments such as

FTTC, FTTZ, FTTB, FTTH, FTTO,

DSL, hybrid fiber coaxial (HFC),

CDMA WLL, and wireless. ● Flexible creation of services and

improved time-to-market

NGN provides a fully open service

platform architecture which allows

Internet service providers (ISPs), even

customers themselves to develop new

services. ● Operation Expenditure (OPEX)

r e d u c t i o n w i t h c e n t r a l i z e d

management

Evolutionary phases of fixed networks

I n t h e s e c o n d h a l f o f 2 0 0 5 ,

migration from PSTN to NGN has

entered a substantive stage. Many

mainstream operators especially

those in China, Russia, India, Brazil,

Malaysia, Pakistan are embarking

on NGN migration projects. These

movements to NGN are motivated

by the need to support end users’

demands, to exploit the synergies that

new technologies bring as well as the

need to replace the legacy obsolete

network. Regardless of their different

motivations, operators all emphasize

on the open architecture, flexible

creation of new services, all kinds

of broadband access networks, and

abundant bandwidth, and Softswitch

is the first step in their PSTN network

Stage 1: Construct an IP Backbone

network based on Softswitch network

technology. Fixed operator wil l

implement an open NGN architecture

to take advantage of the new market

demands, optimizing the legacy

network while replacing obsolete

PSTN equipment. NGN can access

multiple types of services including

the traditional voice service. The

Softswitch network will coexist and

interwork with the PSTN network at

this stage.

S t a g e 2 : F i x e d n e t w o r k

intellectualization stage. Introducing

the Smart HLR (SHLR), operators

can bring next generation value-added

services to legacy users. To meet the

requirements of emerging broadband

mult imedia services, intel l igent

terminal devices will be employed. At

an essential step for those operators

whose networks have a small capacity

and a simple structure. For them, the

network-wide intellectualization can

be implemented in Stage 1.

Stage 3: Evolution from Softswitch

to IMS. As IMS t echno logy i s

gradually getting mature and users

increasingly demand multimedia

services, it’s inevitable that Softswitch

will be substituted by IMS. Based

on a layered a rch i tec ture , IMS

and Softswitch in fact have a lot

in common. Both have the same

functional model, and the same SIP

architecture–both support intelligent

dev ices and a l low opera tors to

deliver multimedia services. The IMS

architecture was initially proposed

for use in mobile networks by 3GPP,

and now being adapted for use in

migration strategy.

PSTN has an evolutionary path as

illustrated in Fig. 2. Of course, some

operators can utilize IMS architectures

to optimize their networks if the PSTN

reconstruction pressure is not intense.

the access layer, Multi-Service Access

Network (MSAN) and Multi-Service

Access Gateway (MSAG) are favored

solutions as they can provide various

narrowband and broadband services.

It’s worth noting that Stage 2 is not

Fig. 2 General evolution path for fixed networks

ZTE TECHNOLOGIES

huge potentials and display great

functions in each link in the new industry

value chain created by broadband

multimedia services. As the global

economy is fastly growing, there is no

limits to people’s demand for multimedia

services, content-based services and

bandwidth, spurring development

of new technologies and innovative

services, which in turn stimulate user

demands. We have full confidence that

the “Springtime” for fixed network will

come soon.

11

fixed access networks by TISPAN and

ITU-T standard bodies.

At present, IMS is not mature

enough to be able to address the

problems that may arise in PSTN

E m u l a t i o n S u b s y s t e m ( P E S ) .

Moreover, there is no example of IMS-

based PES application in real world.

So, in the recent two years, Softswitch

will still be the major element in the

transformation of PSTN.

However, operators and vendors

in anticipation of IMS are working

d i l igen t ly to ou t l ine evo lu t ion

strategies from Softswitch to IMS. The

universally approved evolution path is

shown in Fig. 3.

Stage 3 probably takes two to three

years. Commercial deployment has

a long way to go before a full set of

standards and a viable business model

are developed. Therefore, Softswitch

is an impassable stage. Incumbent

operators are advised to start their

transformation with the Softswitch

approach.

Stage 4: FMC. Fixed and Mobile

convergence (FMC) is the ultimate

goal of fixed network development.

While GSM/CDMA networks are

evolv ing towards mobi le NGN,

also known as mobile Softswitch

architectures (R4 in 3GPP and LMSD

in 3GPP2), PSTN networks are moving

to the fixed network Softswitch, or

fixed NGN, paving the way for FMC.

In fact, FMC will take place at each

layer of the network. For instance, at

the service layer, the unified service

delivery platform enables simultaneous

delivery of services over fixed and

mobile networks. At the access layer,

integrated gateways support wireless-

wireline convergence. At the core

layer, IMS provides unified control for

both fixed and mobile networks.

Fixed network now has a slow

development pace as if it entered

“the hibernation state”. However,

fixed operators are accelerating the

transformation process and developing

towards multi-dimensional operations.

They are expanding their voice and data

service offering with the addition of

multimedia services. They will unleash

Fig. 3 Smooth evolution to IMS

◆ Softswitch(SS)canbeupgraded toprovide functionsof the followingnetwork

elementsbasedon thedifferentnetworkingsituations:CallSessionControl

Function (CSCF),MediaGatewayControlFunction (MGCF),AccessGateway

ControlFunction (AGCF),PSTNEmulationandSimulationSubsystem(PES/

PSS).

◆UpgradeSHLRtoprovidetheIMSHSSfunction,andupgradeSSor introduce

IMSsubsystemformultimediaserviceprovision.

◆UpgradeSStoprovidetheMGCFfunction for full interoperabilitybetweenIMS

andtheexistingnetworks,upgradeSStoprovideAGCFfunctionorintroducethe

IMSelementAGCFforPESservicesupport,cutoverpartofNGNsubscribers

to IMS.At thebeginningof IMSconstruction, it is recommendedtodeliver the

narrowbandvoiceservicethroughSoftswitch.

ZTE TECHNOLOGIES12

Tech Features

ZTE NG DSLAM: A New Generation Broadband Access Platform

The general consensus among

telecom operators is that

transformation is a must and

a strategy. Operators are beginning to

implement transformation, changing

their roles from a traditional basic

n e t wo r k o p e r a t o r t o a m o d e r n

comprehensive information service

provider. Service is critical to network

transformation as there is a growing

demand for rich services. By migrating

to a s e rv i ce -o r i en t ed ne twork ,

operators hope to increase their overall

operational effectiveness. Based

on advanced network technology,

the network transformation is to

revamp the network from a traditional

multi-layer network with mutually

separated layers to a customer-

centric, convergent, and reliable next

generation network that can also

enable more manageable services.

Yan Chengming，Chen Hao

ZTE TECHNOLOGIES 13

There is an accelerating development

of the broadband network infrastructure

and an increasing number of broadband

users. According to industry analyst

f i r m G a r t n e r D a t a q u e s t , D S L

subscribers worldwide had reached 183

million by late June 2006, increasing

by 44 million over late 2005.

As broadband is an irresistible

development trend, it is necessary

to develop principles to guide the

designing and planning of the next

generation broadband access network.

These principles are:● Integrating with the next generation

network, fulfilling its requirements

at the service layer, control layer,

and bearer layer● Developing a full service access

platform to meet high-bandwidth

consumption requirements of

advanced applications● Adopting a flat architecture which

offers wide area broadband access● Enhancing its management and

control capabilities: Providing end-

to-end QoS and enough security

to VoIP, 3G and VPN services;

supporting more precise bandwidth

resources management , IPTV

multicast, and broadband security

measures● Offering an operation & maintenance

solution that integrates test, test

result analysis, and maintenance

Next generation DSLAMTo mee t requ i rements o f the

development of the network and

services as mentioned above, the

broadband access equipment will

evolve towards an integrated platform.

Digital subscriber l ine access

multiplexers (DSLAMs) is a major

b r o a d b a n d a c c e s s t e c h n o l o g y.

The development of DSLAM has

experienced two phases. The first

generation DSLAM is based on ATM,

and the second generation DSLAM

is characterized by IP. Both of them

fit uses of different networks and

applications. As the operators are

transforming themselves–transitioning

t h e i r l eg a cy n e t w o r k s t o n ex t

generation networks (NGN)–a third

generation DSLAM–NG DSLAM is–

introduced.

According to the trends of the

access segment of NGN and the variety

of services demands, NG DSLAM

shall have the following features:● A n o p e n a n d m u l t i - g i g a b i t

architecture that provides high-

bandwidth connectivity and precise

bandwidth control● Strong mul t icas t cont ro l and

switching capabilities as well as a

complete QoS guarantee mechanism● Full service access with high service

sensitivity that enables control

of various classes of services.

(A smooth evolution to FTTx is

supported)● S e c u r i t y f u n c t i o n s s u c h a s

identifying the port of a broadband

subscriber● Strong support for bandwidth

operation & maintenance system● Carrier-class reliability and service

protection capabilities● A uniform platform oriented to next

generation services and network,

enabling seamless integration with

NGN

Typical NG DSLAM equipment–FSAPFull Service Access Platform

(FSAP) is a typical NG DSLAM

equipment.

ZTE, leveraging years of R&D

experience in broadband access, has

launched the FSAP products to meet

large capacity, high-bandwidth, and

high-quality requirements of video,

data and interactive services, easing

the transition to NGNs.

Emerg ing new se rv ices such

as IPTV rely heavily on DSLAM

to provide h igh bandwidth and

multicast capability. The ZTE FSAP

has a gigabit non-blocking switch

architecture which can handle a high

throughput to ensure high quality

IPTV video.

T h e F S A P h a s a p o w e r f u l

Zhongxing Group Management

System (ZGMS). It does not only

supports rich multicast protocols and

technologies such as The Internet

Group Management Protocol (IGMP)

Snoop ing , IGMP Proxy, IGMP

routing, and IGMP v1, v2 and v3, but

also multicast VLAN, Channel Access

Control (CAC), program preview

(PRV), call detail records (CDR), and

creation and execution of multicast

control policies, implementing an

overall control and management of

multicast channels, multicast groups,

and multicast users.

Its capability to support the delivery

of triple play services was proved

in a multi-service performance test

organized by China Telecom Research

Institute in March 2006. The results

of testing demonstrated that ZTE

NG DSLAM has a perfect QoS and

ZTE TECHNOLOGIES

Tech Features

14

provides telecom operators with

an image transmission monitoring

solution, and the key customer segment

with a high-speed access solution.

The ZTE VDSL2 has the following

features:● High-speed transmission

The ZTE VDSL2 can provide

100Mbit/s transmission (both up and

down) over a short distance when a

spectrum of 30MHz is used.● Remote transmission

The ZTE VDSL2 has a maximum

downlink transmit power of 20.5dBm

and can reach a distance of over 2.5km

when using an upstream “0” band,

echo suppression and time domain

equalization techniques.● Various configuration profiles

The ZTE VDSL2 has different

profiles and bandplans targeting

different deployment scenarios. It

operates at a maximum bandwidth of

30MHz. For frequency band between

1MHZ to 12MHZ, it is based on the

existing 997 and 998 plans included

in ITU-T Recommendation G.993.1.

For frequency band between 12MHz

and 30MHz, it adopts one or more

upstream and downstream bands to

suit various applications.● Compatible with ADSL/ADSL2+

The ZTE VDSL2 uses Discrete

Multi Tone (DMT) modulation, a

multi-carrier communication system.

It supports STM and Packet Mode

transmission (PTM) based on the

IEEE802.3ah 64/65 byte encapsulation,

in addition to the ATM transport used

by ADSL and ADSL2+ networks.● Better support for video services

To offer optimal video services, the

ZTE VDSL2 provides Impulse Noise

Protection (IMP) through the use of

interleaving. The interleaving depth

is dynamically adjusted according

to varying error codes. Besides, it

offers a dual latency path for a mix of

traffic (especially the video service)

that has different packet loss rates and

latencies.

FSAP supports evolution to NGNZTE has actively attended standard

organizations such as DSL Forum

and established itself as one of the top

three global DSL equipment vendors.

The company has a deep understanding

of broadband access networks as well

as supporting technologies and future

development trends.

O p e r a t o r s a r e u n d e r g o i n g

tremendous business transformation.

Critical to this transformation is the

introduction of NG DSLAM which

not only keeps in line with the network

evolution trend but also sustains long-

term development as it has a strong

scalability.

T h e Z T E F S A P 9 8 0 0 s e r ve s

as a powerfu l p la t form to he lp

operators build a service-rich access

network. It is a perfect fit for new

generation communication services

due to its advanced architecture and

extensibility. Moreover, flexibility

and upgradeability are required for

DSLAM as the access network has

a large coverage area and scale.

However the ZTE FSAP 9800 meets

all these challenges with the best of

breed of features, allowing operators

to successfully evolve into a next

generation network .

security guarantee, winning praises

from officials and experts.

As there is an increasing need

to deliver high-speed symmetrical

broadband for advanced IPTV services,

ZTE took the lead in the introduction

o f t h e l a t e s t D S L b r o a d b a n d

technology, called VDSL2.

With a support for very-high-bit-

rate digital subscriber line2 (VDSL2)

technology, the ZTE NG DSLAM

ZTE TECHNOLOGIES 15

As data traffic, especially

IP-based data traffic

en joys exponen t i a l

growth, and the Internet is gaining

worldwide populari ty, more

bandwidth is needed. Wavelength

Division Multiplexing (WDM)

technology which can optimize

cost-efficiency in the network,

tackle fiber constraints and solve

long-haul transmission issues has

achieved a dominating position in

the global trunk line transmission

market. Furthermore, its two main

technical development trends,

dense WDM (DWDM) and coarse

WDM (CWDM) are wide ly

used for metro area network

construction and have an upward

spiraling growth tendency because

of its distinctive advantages.

A full line of WDM productsZTE is one of the backbone vendors

in China who began research and

development of optical communication

products as early as 1990s. With

research on WDM underway for over

a decade now, ZTE holds two editor

positions in ITU standard activities

and is one of the main contributors

t o d o m e s t i c W D M s t a n d a r d s .

Having served the needs of operators

wor ldwide , ZTE knows wha t a

ZTE—Your Expert on WDM Optical Transmission

customer wants, needs and expects.

Today, it has successfully launched

a full line of products covering the

backbone, convergence and access

layers of MANs.

The ZXWM M900 trunk line

DWDM system The ZXWM M900 is a large-

capacity ultra long-haul DWDM

equipment which provides full-rate

optical access to services with speeds

f rom OC-3c/STM-1 to OC-

192c/STM-64 as well as enables

integrated access to POS, ATM,

GE and PDH services.● Large capacity and ultra-

long-haul DWDM equipment. It

can multiplex up to 160 different

wavelengths in a single core fiber,

and its total transmission capacity

can reach 1600Gbs. ● The modular design enables a

capacity scale design of 400Gbs,

800Gbs and even 1600Gbs. The

system adopts flexible designs:

MUX/DMUX+Interleaver+C/L

passband OMU/ODU to ensure

smooth scalability and capacity

expansion. ● Using advanced technologies

such as FEC/EFEC, Raman

a m p l i f i e r, R Z c o d i n g , a n d

dispersion management. The 160

wavelength×10Gb/s system is able

to fulfill ultra long-haul transmission

over 5000km (54×27dB) without a

regenerator. ● Accommodating a var iety of

services, including STM-N, GE, FE,

Fiber Channel, Enterprise Systems

Connection (ESCON), Digital

Video, and Fiber Connectivity

(FCON); WDM offers powerful

access and convergence capabilities

for low-rate services and is able

Xiao Li

ZTE TECHNOLOGIES

Tech Features

ZTE TECHNOLOGIES16

to converge up to eight Any×Any

rates traffic onto STM-16/STM-64. ● Easy maintenance is possible

through use of advanced techniques

such as optical power control,

wavelength stabilizing, on-line

adjustment of wavelength and

power, on-line performance test,

built-in optical performance test,

fault location function, and OTN

overhead testing.● Offering an industrial-leading,

flexible, and mature protection

s o l u t i o n , c o n s i s t i n g o f s i x

protection modes for the optical and

service layers. They are 1+1 path

protection, two-fiber bi-directional

path shared protection (BPSR), two-

fiber bi-directional multiplexing

section shared protection, sub-

network connection protection,

1+1 multiplex section protection

and equipment-side 1:16 OTU

protection. The 1+1 path protection

and path shared protection have

been put into commercial use on a

large scale.● I n d u s t r y - l e a d i n g i n t e l l i g e n t

amplification and power control

techniques. In addition to automatic

ga in lock ing and EDFA ga in

variable techniques, the system can

balance multi-power energy from

path to the multiplex section via line

attenuation compensation (LAC),

variable gain slope compensation

( V G S C ) , p a t h p o w e r p r e -

balancing (VMUX), dynamic gain

equalization (DGE), and high-power

optical booster amplifier (HOBA)

techniques.● Flexible network typologies: chain,

star, cross, two-ring tangent and two-

ring intersection networks, applicable

for different network layouts.

ZXMP M800 metro ROADM

systemThe ZXMP M800 designed for

MAN or local transmission networks

s u p p o r t s f l e x i b l e w a v e l e n g t h

d i s p a t c h i n g , s u b - w a v e l e n g t h

switching, multi-service convergence

while allowing smooth upgrade and

expansion. Based on the reconfigurable

o p t i c a l a d d / d r o p m u l t i p l ex i n g

(ROADM) func t ions , opera tors

can provision wavelength services

dynamically, add or change services

flexibly, simplifying network planning;

create end-to-end wavelength service

rapidly and build mesh and ring

topologies.● Offering 80 optical transmission

channels with a maximum capacity

of 800Gb/s. The node’s wavelength

is upgradeable from 1 to 32, 40, 80.

The system has the ability to add/

drop or multiplex any number of

wavelengths at any node to satisfy

dynamic requirements for service

dispatch. ● Capability for transporting overall

integrated services. It offers open

protocols and rich client layer

interfaces, which can carry various

services typical of a metro network,

including STM-N (N=1, 4, 16, 64),

GE, FE, Fiber Channel, ESCON,

ZTE TECHNOLOGIESZTE TECHNOLOGIES 17

Digital Video, and FICON. It also

offers highly efficient and flexible

sub-rate convergence of services,

including 4×155/622Mbs, 2×GE, 4

×2.5Gbs and 8×Any, incorporating

the ability to realize multiple service

hybrid multiplexing.● Offering a flexible industrial-leading

protection solution, consisting of six

protection modes for optical layer

and service layer. ● Flexible networking modes. With a

ROADM, carriers can implement

a variety of network topologies

e.g. multi-ring interconnect, mesh,

chain, star, cross, tangent ring,

intersectant ring, which allows

carriers to develop new application

or change service and t raffic

patterns in metro networks.

ZXMP M600 metro CWDM systemDue to low cost, large capacity,

service transparence and scalability,

the ZXMP M600 metro CWDM

equipment is an economical and

practical WDM system. It is employed

widely in the metro convergence, and

access layers and the metro backbone

layer of medium-sized and small cities.● Low cost. Typically, its cost is only

one third of other DWDM products. ● Tr anspa ren t t r an smi s s ion o f

integrated services. It supports

services with variable rates from

10M to 2.5G and various protocols

like SDH, POS, ATM, GE as well

as Fiber Channel, ESCON, FICON

and DVB-ASI. ● Flexible sub-rate convergence. The

system can implement convergence

of 4×Any, improving transport

network channel utilization ratios as

well as reducing bit operation cost.

It can also provide 1+1 path and

multiplex section protection modes

for services. ● Easy scalability with modular

design. Along with the increase in

bandwidth, it can realize smooth

capacity upgrades on condition

that the existing services are not

interrupted. Ease of maintenance,

compact characteristics and low

power consumption mean that it

satisfies the numerous requirements

of installation environments.

Rapidly growing market shareZ T E a t t a c h e s i m p o r t a n c e t o

lowering network construction cost

and improving operation efficiency.

Backed by strong R&D capabilities

ZTE is continually innovating and

has developed a range of advanced

solution to help provide high levels of

services to customers. ZTE has been

steadily increasing its global market

share of optical products with a series

of significant achievements made.

On the international front, following

the deployment of national trunk lines

and transmission networks in many

countries including India, Pakistan,

Indonesia, Bulgaria, Portugal, Venezuela,

Morocco, Algeria and Zambia, ZTE has

established a long-term partnership with

Korea Telecom (KT) and SK Telecom, a

subsidiary of SK Group. The succession

of continuing contracts indicate that

ZTE’s optical transmission products

have already entered a period of stable

growth.

Growth in the Chinese domestic

market for ZTE’s optical transport

products has also been strong in 2006,

with a 70% share of China Telecom’s 2006

WDM national trunk line project won

earlier 2006. ZTE also bid successfully

for China Unicom’s first 800G national

trunk line project, China Netcom’s

five national WDM trunk lines, and

the northwest ring project of China

Railcom.

In 2006, ZTE announced many

milestone achievements. The company

has entered its fourth-phase expansion

of China Mobile’s west ring project (the

largest DWDM backbone in the world),

installed a CWDM network for Shanxi

Mobile (the largest CWDM network

in the world). For the world’s highest

altitude rail service, the Qinghai-Tibet

Railway, ZTE not only provided a

wireless communication network but

also built a video monitoring transport

network–the largest commercial RPR

project in China.

With powerful technical strength

and r ich exper ience in network

construction, ZTE has established

a leading position in the optical

transport market. At present, ZTE’s

optical products have been deployed

by over 130 operators in more than 70

countries. By the end of September

2006, the accumulated length of WDM

transmission lines built by ZTE was

over 230,000km which, if stretched

end to end, would go around the earth

five and a half times.

In 2007, ZTE, as always, will

provide superior products and services

for carriers around the world and

work with them to create a new

chapter of global optical transmission

development.

ZTE TECHNOLOGIES

18

In 2006, ZTE has become the dark

horse of the data communications

market. ZTE stood out as a strong

performer in 2006 when its sales of

data products increased 100 percent

compared to the previous year. Its full

series of routers and switches have

achieved continuous breakthroughs

in the Chinese carrier and enterprise

network markets as wel l as the

oversea markets. According to CCID

Consulting, ZTE became one of the

top three companies in the enterprise

network market in China.

A full range of data productsData product was listed as one of

the company’s strategic product series

in 2005. With a devotion to providing

customized data networking solutions

and high quality data products, ZTE

has developed more than 100 types

of products, which are categorized

into seven series: Routers, Ethernet

Switches, Broadband Multi-service

Booming Growth forZTE’s Data ProductsSandra Wang, Shirley Yu

Tech Features

ZTE TECHNOLOGIES

ZTE TECHNOLOGIES

Booming Growth forZTE’s Data Products

s y s t e m , k n o w n

as ZTE Smart IP.

T h e “ S m a r t I P ”

system is expected

to rebuild the IP

va lue cha in and

enab les ca r r i e r s

to transition from

being traditional

telecoms carriers

t o i n t e g r a t e d

information service providers. In

addition, it solves a major issue

for enterprise CIOs by creating an

integrated and simple information

platform for delivery of multiple voice,

data and video services.

ZTE is fined tuned to the customers’

needs. Besides the heavy-weight

Smart IP solution, the company also

provides a series of winning solutions

for every segment of the market.

For service providers, it provides

a range of data network solutions

including Metro Ethernet Networks,

IP Core Networks, NGN/IPTV/3G IP

Bearer Networks, etc. For enterprise

customers, it offers integrated solutions

for many industries, such as education,

government, finance, transportation,

electricity, energy, and manufacturing.

Wide applicationsTo date, ZTE’s data products have

been widely deployed in both the

Chinese domestic and the international

market, providing reliable services to

millions of users.

In the Chinese carrier market, ZTE

has established close cooperation with

China Telecom, China Netcom, China

Unicom, China Railcom, etc. ZTE

has accompl i shed

many projects that are

offered as models. For

instance, when China

Telecom was building

an IP Next Generation

Network, or CN2,

ZTE deployed a high-

end routing switch

in the core of China

T e l e c o m ’ s C N 2

project; and built an IP metro area

network in 2005 in Mianyang City,

Sichuan Province, which is a CN2

MAN optimization trial.

Its G series 10G routing switches

are now widely used in the carrier

markets in Jiangsu, Guangdong,

Sichuan, Fujian, Hebei, Guizhou

Provinces, and etc.

In the IPV6 field, ZTE provided

its high-end routers for core nodes of

China Telecom and China Mobile; for

the China Next Generation Internet

(CNGI) backbone network of China

Unicom; and for IPTV bearer networks

of the Jiangsu, Guangdong, Shanghai,

Kunming, Quanzhou, Tianjin branches

of China Telecom..

Meanwhile, its middle-range and

entry-level switches are applied in the

construction of carriers’ broadband

access networks.

In 2006, ZTE’s high-end routers

and switches continued to demonstrate

its strength in the market. ZTE was

selected as the service router vendor

for the metropolitan networks of

the Sichuan, Yunnan, and Guizhou

branches of China Telecom. The

company was a l so awarded an

exclusive contract to supply service

19

Routing Switches, Broadband Remote

Access Servers (BRAS), Unified

Network Management System, ZTE IP

Service Access Management System

(ZXISAM), and Broadband Value-

Added Platform.

The product line became more

complete with the introduction of

the ZXR10 ZSR3800 Intell igent

Integrated Service Router, ZXR10

5900 and 5200 Series Intelligent

Routing Gigabit Switch, which have

earned a great reputation both in

the market and media. At the 7th

CBI China IT Channel Forum 2006

sponsored by Computer Business

Information Newspaper, ZTE won

“the most satisfying brand” and “the

most promising brand” awards for its

switch products and router products

respectively. In 2006, ZTE passed

the certification of “IPv6 ready”,

demonstrating that ZTE has the ability

to provide globally standardized IPv6

equipment.

With strong product innovation

Fig. 1 ZTE’s carrier-class core routers

capability, ZTE leads the development

trend of data network. ZTE became a

highlight of the ITU Telecom World

2006 in Hong Kong when it launched

the intelligent IP network management

ZTE TECHNOLOGIES20

routers to Shaanxi Telecom’s CN2

MAN project.

The company has also achieved

great success in the Chinese enterprise

market by entering many key industries

like government, finance, education,

establishing partnerships with over 400

companies. At present, ZTE has set up

a tiered distribution channel structure,

which includes general distributors,

industrial agents, primary agents,

core dealers, channel dealers, senior

regional agents, and project agents,

implementing integrated distribution

chain.

The distributor channel network

is expanding and an efficient channel

d i s t r i bu t i o n s y s t e m i s g e t t i n g

established in China. Through a

multitude of distribution channels, ZTE

data products were used in various

projects in China. For examples,

a pol ice metro area ne twork in

Changsha, Hunan Province; an electric

power communication network in

Tongchuan City, Shaanxi Province; a

mining security information network in

Jixi, Shanxi Province, an educational

backbone network in Jiangsu, as

well as a national military broadband

network; and etc.

ZTE not only reaped a good harvest

in the Chinese domestic data market,

but also recorded an outstanding

performance overseas. ZTE data

products have successfully entered

the market of developed countries in

Europe and North America. To date, its

data products have been widely used

to construct the carrier networks and

enterprise networks in more than 30

counties and regions.

Its G series high-end switches and T

series high-end routers have penetrated

coun t r i e s i nc lud ing Co lombia ,

Vietnam, Thailand, India, Indonesia,

and etc.

Its mid-range and entry-level switch

series are shortlisted by Telefonica,

one of the world’s largest multinational

carriers, and Etisalat, the multinational

carrier in the Middle East, and have

entered the European high-end markets

e.g. Romania, Finland.

With its IP data network solution,

ZTE has built the Bulgarian integrated

triple play delivery platform, Colombian

Emcali’s NGN-based bearer network,

Greek Telepassport’s IPTV bearer

network, and CDMA-based IP bearer

network in the Philippines.

A bright futureInnovation-based product is key

to the company’s market success.

Reinforcing its R&D is a must for ZTE

to maintain its core competitiveness. At

present, there are more than 1000 R&D

engineers on data communications,

half of them are Ph.D and Master

Degree holders.

In May 2006, a data research

sub-center was set up under the

central academy at the company’s

headquarters, to consolidate research

and development of IP stack and high-

end routers through efforts done at

company level.

T h e f o l l ow i n g A u g u s t , Z T E

launched a Beijing data research sub-

center which is engaged in research

an development on Ethernet switch,

enterprise networks products, and

security products. Apart from a strong

R&D team of elite talents, the company

also has a complete marketing, R&D,

manufacturing, logistics, and quality

management systems to satisfy the

needs of its customers.

A d va n c i n g w i t h eve r l a s t i n g

innova t ion , ZTE accompl i shed

fruitful achievements in the data

communications market. At the 2007

China Telecommunication Market

Annual Conference organized by

CCID Consult ing, ZTE won the

China Data Communications Best

Brand of 2006. With the continuous

development of its R&D, products,

distribution channel, and service,

ZTE believes that the company will

become a mainstream provider of data

network solutions to the global market,

providing worldwide customers with

high-class technical support and

maintenance services.

Tech Features

ZTE TECHNOLOGIES 21

Integration of IPTV into Existing Operating Systems

Ra p i d b r o a d b a n d g r ow t h

a n d c o n s u m e r d e m a n d

for advanced TV services

fuel the Internet Protocol Television

(IPTV) market. To capture this revenue

opportunity, carriers should promptly

respond to constant changes in the

market, to customer demands for new

features and services, by quickly and

cost-effectively evolving their IPTV

offering as needed. Their service

offering should be diverse, attractive

and unique to local market.

ZTE’s IPTV platform provides

carriers a proactive as well efficient

way to offer new and customized

services. Besides, ZTE has developed a

highly-skilled IPTV team of R&D and

marketing, to ensure fast and high quality

service delivery, and that the individual

Hu Cuiwen

needs of each local market are met.

One of the challenges that face

operators is that whether their Billing

Operating Support Systems (BOSS)

systems can support these new services.

ZTE’s middleware well solves this

problem. The middleware, as the core

software of IPTV system, provides

abundant standard and open application

program interfaces (APIs) that allow

integration with operators’ existing

billing and operating systems. A deep

collaboration between operators and

equipment providers is necessary

to facilitate integration between the

middleware and the external OSS.

Socket interfaceNew IPTV services entail great

impact on operator’s existing BOSS

systems. The IPTV deployments require

the integration of legacy systems into

IPTV systems. Fig. 1 illustrates the

network configuration between the

middleware and operation system.

As it shows, socket as an interface for

communication between IPTV system

and operation system is introduced.

M M L s t a n d s f o r m a n - m a c h i n e

language, a computer language.

A “ s o c k e t ” i s a l o o s e t e r m

used to define “an end point for

communication.” Berkley sockets is

an API developed at the University of

California at Berkeley, The Berkley

ZTE TECHNOLOGIES

provide UI notification and group

management. The interfaces and

their parameters could be customized

a c c o r d i n g t o d i f f e r e n t s y s t e m

interfaces.

With respect to the billing system,

it supports two ways of integration

as there are different data transfer

requirements. If the IPTV platform

needs to offer real-time billing for

prepaid services, it requires an open

API to connect with the billing system.

In the non-real time billing mode, it

sends the Call Detail Records (CDR)

data to the billing system.

ConclusionOne of the challenges in IPTV

deployment is to interwork with

the existing BOSS infrastructure on

which to offer new services. ZTE as

a leading IPTV vendor provides a

middleware that features open APIs for

the integration of the existing BOSS.

Through ZTE’s middleware solution,

operators can implement a unified

operating and billing platform, improve

efficiency of their network, and enhance

their revenue streams.

22

socket API consists of a set of C

function calls to support network

communication.

Transmission Control Protocol/IP

(TCP/IP) stack is the basis for Internet

and new services like IPTV. A socket

is used as an interface to TCP/IP. The

socket API is not specifically designed

for TCP/IP. Therefore, more overhead

programming and understanding is

required to develop TCP/IP applications.

A TCP/IP socket connection with

the IPTV system is established before

the BOSS system sends messages

interactively, then gets disconnected

when it stops sending the messages.

The service message of the socket

in terface protocol t ransfers the

operation information. The service

message is a minimum unit between

t h e B O S S a n d I P T V s y s t e m s ,

according to the format of which, the

BOSS system converts MML command

into a properly-encoded

message, and sends it to

the IPTV system while

synchronously encoding

the received message.

Integration into BOSS T h e A P I s e a s i l y

integrate the IPTV system

into the operator’s existing

BOSS that is responsible

fo r p rov is ion ing end

u s e r s a n d o p e r a t i n g

contents and services. The APIs allow

integrators to create and manage user

accounts, as well as service packages

and pay-per-view services, and also

ZTE Promotes IPTVChina Telecom and Shanghai

Media Group (SMG) have officially

s tar ted the al locat ion of IPTV-

enabled phone numbers in Shanghai

in September 2006, indicating that

the operator’s IPTV network is now

available for commercial use. This

marks a new stage of IPTV application

in China and as such has attracted

worldwide attention.

ZTE Awarded IPTV ProjectZTE has won a 100,000 subscriber

IPTV contract from the Jiangsu Branch

of China Telecom in November 2005.

Jiangsu is one of the most developed

provinces in China and one of the most

important strategic telecoms markets

in the country. The IPTV project with

China Telecom’s Jiangsu Branch is

a key part of China Telecom’s IPTV

trials. ZTE won the IPTV project in

competition with most of the major

international IPTV system providers.

ZTE Selected to Install NGNEmcali, one of Colombia’s four major

fixed-line operators, planned to deploy

triple play service in the country’s

second largest city, Cali. In October

2005, ZTE was chosen to provide the

infrastructure for Emcali’s upgraded

Softswitch-based NGN, standing

out as the only vendor of a complete

triple play solution including ZXBIV

system, Softswitch system, broadband

products and terminal products.

Fig.1 Network configuration between middleware and OSS

At a Glance

Tech Features

ZTE TECHNOLOGIES 23

Project management theoryIn 1984, the Project Management

I n s t i t u t e ( P M I ) p u b l i s h e d t h e

project management standard. The

organization released “A Guide to

the Project Management Body of

Knowledge” (PMBOK Guide) First

Edition in 1996, which is widely

regarded as an essential tool to

practice the profession. Based on the

framework of PMBOK, International

S t a n d a r d s O rg a n i z a t i o n ( I S O )

formulated ISO10006 standards. In

2000, the PMBOK Guide-Second

Edition was published. With more

than a million copies of the 2000

edition in use, it has become the global

management standard. The next edition

was published in 2004.

According to the PMBOK, a project

is “a temporary endeavor undertaken

to create a unique product, service

or result”. The concept highlights

two features of a project: temporary

and unique. Project management,

on the other hand, means applying

knowledge, skills, tools, and techniques

to finish a project that meet or exceed

the needs or expectations of a project’s

stakeholders.

As shown in Fig. 1, in order to

meet or exceed stakeholder needs and

expectations it is necessary to strike

a balance between competing needs

in the specific project management

process:● Scope, time, cost, and quality● Stakeholders with different demands

and expectations● Requirements (demands) stated

expressly and not implicitly

CDMA Network optimization through project management

Guizhou Unicom (a subsidiary of

China Unicom) achieved large-scale

development of CDMA network in

2004. Although the network topology

had changed and the user base was

growing, the process of network

optimization was slower than network

construction. By the forth quarter of

2004, the Guizhou provincial CDMA

network performance indices showed

an obvious declining tendency when

compared to the beginning of that year.

In October 2004, ZTE initiated a

CDMA network optimization plan

for the CDMA network of Guizhou

Telecom. ZTE made it as a high

priority project, devoted large amounts

of time and human power to it; and

Pan Chunjin

produced outstanding project results

with a project management approach.

It built a large network optimization

team which consisted of personnel

from Guizhou Unicom, outsourcing

firms, and etc.

Integration managementIn a bid to meet the demands of

Guizhou Unicom, the project leaders

allocated human resources while

taking project scope, time, quality,

cost, and risk into consideration, so

Project Management Leads to Network Optimization Success

Case Study

ZTE TECHNOLOGIES24 ZTE TECHNOLOGIES

that the team can run effectively with

high efficiency.

Project management

preparations (object and scope

management)A key part of project management

is communication with the project

stakeholders. In the early project phase,

ZTE and the operator had jointly

defined objectives of the network

optimization project. The main object

of this project would be to improve

the Erl drop ratio. Take Guiyang as

an example, it was necessary for the

BSC0’s Erl drop ratio to increase

from 120 minutes to 140 minutes

(customer’s needs); and to reach 160

minutes (customer’s expectations). The

Erl drop ratio of BSC1 was required

to increase from 90 minutes to 120

minutes (customer’s needs).

Apart from the project objectives,

the team had also defined the project

scope, i.e., optimizing voice application

in the service areas of Guiyang

Telecom, which includes checking out

new base station transceivers (BTSs),

optimizing RF and radio parameters,

and handling user complaints.

Work breakdown (time and

human resource management)Guizhou Province s i tuated in

southwest China is a mountainous

province which may be affected by

adverse weather conditions during

winter. It has many service areas (nine

areas) with unsatisfactory high road

conditions in some areas. These are the

factors that project stakeholders took

into consideration when establishing

the project timetable.

The developed project plan was

like this: implementing the project

in six service areas from November

2004 to February 2005; then starting

optimization for the remaining three

service areas in March 2005. Each

service area became a sub-project, for

which a detailed work plan had been

developed based on available human

resources and testing equipment.

Take the sub-project in Guiyang, the

capital city of Guizhou Province, as

an example. Twenty engineers were

assigned to the field project team and

nearly 10 engineers were allocated

with backup services. The project was

planned to be completed in 40 days.

Project process control (cost,

risk, quality, and communication

management)The project cost management

involved the following aspects:● Human resource cost: Divide up the

task assignments clearly, making

effective use of people involved in

the project.● Time cost: With sufficient human

resources, the optimization project

was carried out in several service

areas simultaneously, and in the

same service area, several groups

conducted network optimization

simultaneously.● Resources cost : ZTE checked

out both the new BTSs and the

problematic BTSs, and performed

preliminary RF adjustment while

conducting the pre-optimization test

in the suburban areas. Moreover,

optimal test routes were designed

to save time and reduce expense

associated with test vehicles.

To eleminate potential risks during

the planning phase, the work plan had

considered risk factors such as weather,

terrain conditions, and contingencies

such as equipment failure, and personal

injuries.

To ensure the project met the

quality requirements, the engineers

careful ly checked the new base

stations and those that greatly affected

the system performance, and verified

their performance after the network

optimization was completed.

D u r i n g t h e p r o j e c t p e r i o d ,

communications methods, such as

e-mail, telephone, facilitated smooth

communications within the project

Case Study

Fig. 1 PMBOK structure

ZTE TECHNOLOGIES 25ZTE TECHNOLOGIES

technical methods to reduce dropped

calls at a certain base station:● Single-stat ion check and pre-

optimization test

The team performed single-station

check on most new BTSs as well

as the old BTS that had high

dropped call rates through

ana lyz ing dr ive tes t

data and background

statistics data. Some

BTSs were found

to be improperly

i n s t a l l e d .

I n f o r m a t i o n

col lec ted a t the

s i t e s a r e u s e f u l

for the future RF

optimization.● Statistical analysis on

test data and background

data

Despite heavy workload and tense

schedule, the team members finished

analyzing the drive test data at an

early time and made a corresponding

network opt imizat ion plan. The

test data and background statistics

data acquired after implementing

network optimization, proved that the

optimization measures were effective.● RF optimization

The RF optimization includes

adjusting antenna pointing and height.● Wireless parameter optimization

A f t e r c h e c k i n g t h e w i r e l e s s

parameters of all BTSs, the team

optimized the wireless parameters of

the BTSs that had high dropped call

rates.

Wi th th ree-month e ffor t , the

Guizhou CDMA network optimization

project had made remarkable progress.

Take the Guiyang service area as an

example, its busy hour Erl drop ratio

had been greatly improved. The busy

hour Erl drop ratio of

BSC0 had

i n c r e a s e d

from 127 minutes to 172 minutes

after optimization, which not only

met, but exceeded Guiyang Unicom’s

expectation (160 minutes). Similarly,

the busy hour Erl drop ratio of BSC1

had increased from 90 minutes to 132

minutes.

By applying the PMBOK theory,

the project team strengthened the

project management which includes

clarifying project goals, specifying

how goals are achieved, along with

project control. With a focus on a

series of project-specific factors

(time, scope, labor, quality, cost,

r i sk , and communicat ions) , the

network optimization project came

to a successful conclusion within the

specified timeframe.

team and between front line personnel

and back side support personnel.

Project closureThe las t phase of the project

included outputting the network

optimization report for each service

area to capture experience of, and

lessons learned from the project. At the

end of the project, the Erl drop ratio

of the optimized service area had been

greatly increased, realizing the initial

objectives of the project.

Network optimization servicesThe CDMA network optimization

project was focused on improving the

Erl drop ratio results. In cases where

an important network performance

indicator is focused, the “TOP10”

analysis method can improve the work

efficiency. The Erl drop ratio is an

approach to understand the network

performance, and it is computed using

the following formula: the busy hour

Erl drop ratio (in minutes) = Busy hour

traffic load (Erl) (without handover)

×60/total number of dropped calls in a

traffic channel.

It is obvious that to improve the Erl

drop ratio, it is necessary to reduce

the number of dropped calls. The

project team began the optimization

process by selecting the top 10 base

stations that had the largest numbers

of dropped calls; finding out reasons

of dropped calls and poor quality

service by analyzing the equipment,

network, and resource utilization; and

offered targeted technical assistance

to enhance the overall performance of

base station controllers (BSC).

The engineers adopted the following

ZTE TECHNOLOGIES26

'In 2007, we expect to sell around 25 mn handsets globally of which 10 mn will be sold in India'

What’s your handset strategy?

From 1998, ZTE has been manufacturing handsets and is presently a well-known brand. We have a complete portfolio of handsets both on 2G as well as on 3G spaces. On the technology front, we cater to GSM, CDMA, PHS, and TD-SCDMA. When we started in 1998, we were strong in communication systems and started our global expansion in 2004. Presently, we have our presence in 50 countries.Earlier to 2004, we were focusing only on China and utilized our handset experience and understood the requirements of different handset segment categories for different markets.

Basically, we are focusing on two markets–developed and developing. In developed, we are looking at Western Europe and North American market whereas in developing market we are looking at India, Pakistan, Latin America, and African countries. For developing market, the focus is on multimedia handsets, Mobile TV and HSDPA whereas for developing market, we are looking at basic voice and SMS.

How would you rate India vis-à-vis other markets? What’s your strategy for the Indian market?

India is a very important market for ZTE. There is a huge potential for local companies to contribute to the Indian economy. Since 2005 and till date, we have sold more than 5 mn handsets in India. Our next strategy is to bring more products and technologies, localize manufacturing and R&D facility. By serving Indian market we can contribute to other developing market also. India, China and developing economy are the foundation triangle for our growth. So our focus will be investing more in R&D and services, thus continue to grow the market.

We started our GSM expansion in 2006. We visualize that there is a huge growth in Indian GSM market and plans are to replicate CDMA success in GSM. For CDMA, we are focusing on US, Canada, and Mexico whereas for GSM we are looking at India, Africa, and Latin American markets.

Press Clipping

In 2007, we expect to sell around 25 mn handsets globally of which 10 mn will be sold in India. On the technology front, GSM will contribute around 40% whereas CDMA will contribute around 60% for the India market.

Are you planning to change your distribution strategy in 2007?

In China, we used to sell through distributors but in 2007 we are changing our strategy to sell more handsets through operators.

When are you planning to close the mega order with Reliance Communications for GSM infrastructure?

So far there is no official announcement, Presently, if something happens we will put it on our website.

What’s happening on the BSNL 70 mn tender ?

As you know operators have own right to make decision and there are many factors affecting their decisions. From supplier’s point of view, ZTE is involved in negotiating and participation in this kind of project and we make sure to always do our best.

How are you planning to move ahead on the FIPB front for setting up a manufacturing base in India?

As you know communication system is complex and we need approval from Indian authorities. We will move step by step so that our manufacturing technology can be fully brought to India.

Will ZTE set up a manufacturing base in India in 2007?

Since we have a comprehensive product line, I won’t put any timeline. For certain products, some part is manufactured in India whereas some part is manufactured elsewhere. There is always a gradual process of bringing manufacturing in India.

JANUARY 2007

He Shiyou, SVP of ZTE Corporation and General Manager of Handset Division, talks to VOICE&DATA

magazine about the company's handset strategy and its strategy for the Indian market.

ZTE TECHNOLOGIES

ZTE Corporation, a leading global

provider of telecommunications

e q u i p m e n t a n d n e t w o r k

solutions, has won a contract to provide

China Unicom with 900,000 CDMA

handsets during the operator’s 2007 Q1

central procurement period.

Seven vendors in total were named

as suppliers in the contract. ZTE won

the biggest proportion of the contract,

agreeing to provide 40% of the total

two million handsets to the operator.

ZTE is currently the leading supplier

of CDMA handsets to the rapidly

growing Chinese market, and has

already supplied over 16% of China

Unicom’s CDMA handsets.

ZTE will provide the award-winning

bar style C172 and C300 models and

the clamshell style C350. The handsets

provided will be customized for China

ZTE Inks Deal with China Unicom for CDMA Handsets

Unicom’s urban low-end and rural

markets to enable China Unicom to

offer a very competitive price, but they

will still be able to support multiple

value-added services.

China Unicom adopted a central

handset procurement model in 2005,

and its sales of CDMA handsets rose

20 percent to a record high of eight

million in 2006.

ZTE has been providing CDMA

handsets to China Unicom for over

five years, covering high, middle and

low-end markets. In January of this

year, China Unicom awarded the

“Most Popular CDMA Handset” title

to ZTE because of its leading sales

figures. By August of last year, ZTE’s

global CDMA handset shipments had

exceeded 10 million, around seven

percent of the world market.

27

C172 C300C350

Handsets

ZTE TECHNOLOGIES