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HU
AW
EI CO
MM
UN
ICA
TEFEB
2010 ISSUE 54
FEB 2010 ISSUE 54
HU
AW
EI CO
MM
UN
ICA
TEFEB
2010 ISSUE 54
Internet of Things and its future
To France Telecom, LTE means a new horizon
Get ready for 900MHz refarming
Telecom industry trends in the next decade
The LTE dream is coming true
Sponsor: Huawei COMMUNICATE Editorial Board,Huawei Technologies Co., Ltd.
Consultants: Hu Houkun, Xu Zhijun, Xu WenweiDing Yun, Wan Biao, Zheng ChunhuaLiu Dongfang, Zhang Hongxi
Editor-in-Chief: Gao Xianrui ([email protected])
Editors: Xu Peng, Xue Hua, Li Xuefeng, Xu Ping, Yao HaifeiHuang Zhuojian, Fan Ruijuan, Chen Yuhong, Pan TaoZhu Wenli, Long Ji, Wang Hongjun, Liu Zhonglin Zhou Shumin, Mike Bossick, Gary Maidment
Contributors: Hou Jinlong, Zhu Yonggang, Shao Yang, Cai Mengbo Cui Jinglong, Lu Xingang, Xiong Wei, Yan Jun Du Yeqing, Lv Xiaofeng, Wu Hui, Lei Yanping Zhou Jianhua, Zhao Yuan, Liu Qingliang
E-mail: [email protected]
Tel: +86 755 28356172, 28356173
Fax: +86 755 28356180
Address: A10, Huawei Industrial Base, Bantian, Longgang, Shenzhen 518129, China
Publication registration No.: Yue B No.10148
Copyright © Huawei Technologies Co., Ltd. 2010. All rights reserved.No part of this document may be reproduced or transmitted in any form or by any means without prior written consent of Huawei Technologies Co., Ltd.
NO WARRANTYThe contents of this document are for information purpose only, and provided “as is”. Except as required by applicable laws, no warranties of any kind, either express or implied, including but not limited to, the implied warranties of merchantability and fi tness for a particular purpose, are made in relation to contents of this document. To the maximum extent permitted by applicable law, in no case shall Huawei Technologies Co., Ltd be liable for any special, incidental, indirect, or consequential damages, or lost profi ts, business, revenue, data, goodwill or anticipated savings arising out of or in connection with any use of this document.
Is the cold economic winter of 2009 giving way to a more colorful spring in 2010? Battling against sluggish subscriber growth, declining ARPUs, and stagnant revenues, operators are looking at LTE to cast a ray of sunlight across the telecom ecosystem and catalyze its future growth.
Conventional network construction has strangled the profit potential of mobile broadband with prohibitively high deployment costs and subsequent prices. To curtail costs, operators have no choice but to boost spectrum efficiency, simplify network architecture, and optimize base station and O&M effi ciency. New air interface technology and streamlined network architecture must minimize per bit costs and transfer delays. Equally, seamless coverage, roaming capabilities, guaranteed security, and multi-standard interoperability complete the complex set of ingredients necessary to nourish future ICT. LTE can realize these ambitious goals, and is making its play as the premier next generation mobile communication technology.
The rapid growth of mobile broadband has accelerated LTE commercialization. In December 2009, Huawei helped TeliaSonera to launch the world’s fi rst commercial LTE network in Oslo. Achieving speeds of 96Mbps and a maximum rate of 100Mbps, this global milestone in network development is a staggering 10 times faster than 3G networks.
Th ough LTE is coming out of the shadows, its large-scale commercial deployment is still fraught with obstacles. The heavy investment already injected into 3G is encouraging many operators to either retain 3G as their area of focus while balancing evolution to LTE, or enhance 3G coverage with 4G as a supplement. Given this, the optimum choice is network convergence.
SingleRAN has evolved to meet market demands and is already widely employed across the globe. With its integrated design, SingleRAN can accommodate different wireless standards and enable smooth future evolution. It poses minimum risk as an investment choice and reduces overall network deployment and maintenance costs, especially during initial LTE construction. As a result, several operators, including Teliasonera, Telenor, Belgacom, and Net4Mobility, have partnered with Huawei to deploy LTE.
By the end of 2009, over 50 operators in 30 countries had established LTE commercialization schedules, shining some welcome sunlight on the telecom ecosystem.
LTE on the fast track
Wan Biao
President of Huawei
Wireless Product Line
What’s inside:
P.11 P.16
02 Huawei to construct railway communication network in Australia by GSM-R system
News
01 Singapore’s M1 chooses Huawei to provide ATCA-based IMS solution
23 Internet of Things and its futureBy Xing Zhihao & Zhong Yongfeng
06 How can operators maximize the mobile broadband opportunity?
By Thomas Wehmeier from Informa
03 To France Telecom, LTE means a new horizonHow should mobile operators take on the daunting challenge from the massive surge in mobile data traffic on their networks? Philippe Lucas, Senior VP International Standards & Industry Relationships, France Telecom, gave us the answer.
By Philippe Lucas from FT
Expert’s Forum
20 Cloud computing: a world-changing power
With breakthroughs made in relevant service and business models, cloud computing will inevitably expand its role as a backbone for IT services. As a revolutionary concept, its technological realization is set to change the way people work and live.
By Dr. Fang Binxing
Main Topic
17 Telecom industry trends in the next decade
Cover Story
11 LTE is nowOn December 14, 2009, TeliaSonera announced that the world’s first commercial LTE network was officially up and running in Norway. This network represents a milestone in realizing the LTE dream.
By Yan Yun & Zhao Yuan
P.28P.31
Let’s COMMUNICATE beyond technology and share understandings of the latest industry trends,
successful operational cases, leading technologies and more. Based on in-depth analysis of the
matters that lie close to your heart, we will help you stay on top in the competitive telecom industry.
31 Visualized IP network O&MAn IP network needs to be measurable with visualized operations and maintenance (O&M) for sound management and critical improvements.
By Wang Libin
33 Make the best of WiMAX for broadband
By Qi Rui
39 Precision network planning for green mobile networks
By Yang Bo
41 Cooperative development strategy of 3G and WiMAXDeveloping 3G and 4G networks such as WiMAX cooperatively can improve network resource allocation, boost wireless broadband network popularization and give users a superior experience.
By Li Guodong
43 GSM-R: keeping communications on track
By Wang Zhoujie
36 Get ready for 900MHz refarming900MHz refarming solutions based on Huawei’s SingleRAN let operators use the GSM frequency to quickly deploy a low-cost UMTS network with wide coverage. Users get seamless 2G and 3G services with two networks integrated on the same platform.
By Li Chunlin
Solution
27 Huawei, the front-runner in the 4G arena
By Qiu Huihui
Media Insight
28 PLAY my own wayMr. Hans Cronberg, CTO of PLAY, shares the fundamental success factor for start-up operators during the interview with COMMUNICATE–never try to copy what the existing players have done in the market, but try to find the new and effective solution.
By Joyce Fan
How to Operate
News
FEB 2010 . ISSUE 541
Huawei demonstrates delivery of voice calling, high definition video via LTE for Cox Communications
PLANO, Texas, 26 January, 2010,
Huawei announced the successful
completion of voice calling and
high definition video streaming over
wireless networks using Long Term
Evolution (LTE) technology for Cox
Communications, the third-largest
cable provider in the United States.
Cox's 4G technology and service
trials utilized the AWS and 700MHz
spectrum that it acquired in Federal
Communication Commission auctions
in 2006 and 2008.
" O u r c o l l a b o ra t i o n w i t h
Huawei has enabled us to achieve
monumental strides in the trial,"
said Stephen Bye, Cox's Vice
President of wireless. "Huawei's
dedicat ion and support , the
understanding of our requirements
and ability to meet our aggressive
project milestones were key factors
in selecting them as a partner for
the trials. We are encouraged by
the success of the trials, which
further validate our decision to
pursue 4G based on LTE, specifically
the 3GPP Release 8 standard."
"Huawei is the industry leader
on LTE technology and is already
deploying LTE networks for several
operators globally," said Wan Biao,
President of Wireless Product Line,
Huawei. "As we continue building
on the North America LTE field trials
started in 2008, this is another
milestone reflecting our unwavering
commitment to helping operators
deliver advanced mobile broadband
services to their customers."
China Telecom launches CDMA2000 EV-DO Rev.B pre-commercial network with Huawei’s solution
Guangzhou, China, 21 January,
2010, Huawei announced that it has
successful delivered two CDMA2000
1x EV-DO Rev.B networks in Beijing
and Guangzhou for China Telecom.
Huawei's industry-leading EV-DO
Rev.B solution will enable operators
to improve capacity, throughput
and latency on their existing EV-DO
networks and offer sophisticated 3G
services to the subscribers of China
Telecom, including VoIP, voice on
demand, and streaming media.
The EV-DO Rev.B networks are the
fastest 3G networks to date in China,
supporting downlink data rates of up
to 9.3Mbps per user. Based on 2.1GHz
and 800MHz dual-band, the EV-DO
Rev.B networks will be able to enhance
the carrying capacity to deal with the
explosion of data services and provide
stable and reliable high-speed mobile
broadband experiences for 3G users.
Zhao Ming, President of Huawei
CDMA Product Line said, "Huawei
is fully engaged with world leading
CDMA operators, including China
Telecom to drive CDMA's evolution and
commercial development. Establishing
two EV-DO Rev.B networks for China
Telecom in a short time demonstrates
Huawei's commitment to providing
our customers with innovative mobile
broadband services. "
As the leading CDMA end-to-end
solutions provider, Huawei released
the first commercial EV-DO Rev.B
solution at the fourth Global CDMA
Operation and Development Forum in
June 2009.
Singapore’s M1 chooses Huawei to provide ATCA-based IMS solution
Shenzhen, China, 25 January,
2010, Huawei announced that
MobileOne ("M1"), one of the
leading mobile communications
prov iders in S ingapore, with
more than 1.7 million customers,
has selected Huawei as the sole
provider of an ATCA (Advanced
Telecommunications Computing
Architecture) platform based IMS
solution to enrich its national
broadband services and build its
FMC capabilities. This IMS solution
will allow M1 subscribers to enjoy
rich multi-media services such as
VoIP, IPTV, Centrex, and HD video
conferencing.
Leveraging Singapore's Next
Generation National Broadband
Network (NGNBN) initiative, M1
will offer both fixed and mobile
network services. The integration of
Huawei's IMS solution will enhance
M1's capabilities in an increasingly
converged world and enable M1 to
smoothly transform from a mobile
operator to a fixed and mobile
service provider.
"With Huawei's IMS system, M1
will build up an advanced future
oriented network architecture,
which gives us the capability to
deliver new multimedia services
to both our fixed and mobile
customers in the future," said Mr.
Patrick Scodeller, CTO of M1.
"Huawei's customized ATCA-
b a s e d I M S s o l u t i o n s a l l o w
operators to achieve rapid network
deployment and shorten time to
market and support M1's business
t ransformat ion by prov id ing
subscribers with advanced multi-
media services," said Mr. Jin Huang,
Vice President of Core Network,
Huawei.
Huawe i ' s IMS vo i ce ove r
broadband (VoBB) solution adopted
a standard ATCA platform. One
ATCA frame is able to provide all of
M1's requirements. As a pioneer in
global IMS applications, Huawei's
IMS solution is being adopted to
enable rapid development and
delivery of differentiated IMS-
enabled services by leading operators
worldwide, including CLP Group
(Germany), EDF Group (France),
Telefonica, SFR (France), Cox
(USA), Etisalat, STC (Saudi Arabia),
Vimpelcom (Russia), Telmex (Mexico),
Telecom (Argentina), China Mobile,
China Telecom, TM (Malaysia), and
WIND (Italy).
FEB 2010 . ISSUE 54 2
Huawei deploys new generation blade mobile softswitch for Zain Nigeria
Shenzhen, China, 18 January, 2010,
Huawei and Zain Nigeria announced
the successful deployment of a next-
generation blade mobile softswitch in
Nigeria.
The deployment in Nigeria
represents a major milestone for Zain
as it meets the requirement from fast
growing customers and effectively
controls the TCO. The project can
help operator reduce the 60% of
equipment room and save about
65% power consumption.
Focused on "customer experience-
centered" management, the solution
can provide real-time monitoring,
fault location and automatic recovery
features to help Zain to build
the capability in intelligent All-IP
operation.
In addition, based on the MSC
Pool networking architecture,
Zain can quickly achieve network
resource sharing, guarantee the
services continuity, and improve
the system's reliability achieved up
to 99.9999%. In the future, the
network can evolve to IMS network
smoothly, which lowers operator's
CAPEX significantly.
"Zain is always committed to
providing world-class experience
for its growing customer base by
continuously adopting leading
network technology. Huawei's new
generation blade mobile softswitch
solution meets our requirement
on All-IP network operation. The
excellent solution will help us
advance network efficiency, reduce
operation cost, and provide better
services to the rapidly growing
customer base" said Mr. Alain Sainte-
Marie, CEO of Zain Nigeria.
Huawei unveils world’s first backbone network synergy planning solution
Shenzhen, China, 19 January,
2010, Huawei launched the world's
first synergy planning solution for
backbone networks. This solution,
which is backed by a multi-layer
network planning tool cal led
iManager MDS6600, enables synergy
between the IP and transport layers
of the backbone network, offering
highly efficient network resource
utilization, greater reliability, and
lower operations and maintenance
(OM) costs.
Enhanced network resource
ut i l izat ion is poss ible due to
the solution's management of
bandwidth resources, which are
assigned based on traffic in a
unified manner, thus achieving
synergistic traffic processing across
the IP and transport layers. This
interaction between the IP layer and
transport layer eliminates repetitive
protection when an issue occurs,
reduces wasted resources, and
offers highly efficient protection
and enhanced network reliability.
Huawei's synergy solution also
provides high capacity and an ultra-
broadband backbone network for
operators.
"Huawei's innovative synergy
planning solution is the first in the
world to offer inter-layer traffic
synergy, protection synergy, and
management synergy, helping
operators to increase network
efficiency, mitigate pressures on the
backbone network and optimize
network reliability, while slashing
OM costs," said Mr. Christian
Chua, President of the Converged
Backbone Solution in Huawei's
Network Product Line.
Huawei to construct railway communication network in Australia by GSM-R system
Shenzhen, China, 18 January, 2010,
Huawei announced its selection by
UGL Limited, Australia's largest rail
engineering company, to be the sole
supplier of technology and equipment
and deliver its GSM-R solution for
RailCorp's radio communications
upgrades to the metropolitan rail
network in New South Wales (NSW).
UGL was awarded the tender
on the 21st December 2009, to
design, supply, install and maintain
a state-of-the-art digital train radio
system (DTRS) on NSW RailCorp's
electrified rail network.
GSM-R technology is vital for
improving rail network safety,
offers value-added functions,
and provides greater coverage
than analogue radio networks.
Huawei's GSM-R solution will link
all rail operations on the network,
providing an integrated voice
communications system optimising
train control, signaling, shunting,
trackside, as well as improving
communications between train
crews and transit officers.
"Huawei's GSM-R solutions
are recognised as state-of-the-art
wireless communications systems
that deliver safer, more advanced,
railway networks." said Peter Rossi,
CTO, Huawei Australia.
"Our international experience
and expert ise wi l l ass ist UGL
in providing seamless wireless
coverage across RailCorp's metro
n e t w o r k . We w e l c o m e t h e
opportunity to work with UGL and
RailCorp to improve the important
metropolitan rail network in NSW
to create a safer, smarter rail service
for people in NSW." Mr. Rossi said.
Huawei began researching
GSM-R technologies in 2001, and
has since become one of only a
few end-to-end GSM-R solution
suppliers in the world.
Huawei ' s GSM-R so lut ion
ful ly complies with European
Integrated Railway Radio Enhanced
Network (EIRENE) specifications
and requ i remen t s , and ha s
successfully passed Lloyd's product
certification.
I n A p r i l 2 0 0 9 , H u a w e i
successfully launched its GSM-R
communication system for the
Shijiazhuang-Taiyuan passenger
transport railway, which can reach
speeds of up to 250km/h and
covers 189.93km throughout
China. The Shijiazhuang-Taiyuan
railway includes Asia's longest
tunnel, the 28km Taihang double-
tube tunnel. Huawei's GSM-R
solution solves coverage problems
experienced inside long tunnels.
"The challenges we came up
against in China can be applied to
the Australian environment. Long
tunnels, vast distances, and high
traffic areas–all of these problems
were overcome using Huawei's
innovative GSM-R solutions," Mr.
Rossi said.
To France Telecom, LTE means a new horizon
How should mobile operators take on the daunting
challenge from the massive surge in mobile data
traffi c on their networks? Philippe Lucas, Senior VP
International Standards & Industry Relationships,
France Telecom, gave us the answer.
By Philippe Lucas
Expert’s Forum
FEB 2010 . ISSUE 54
To France Telecom, LTE means a new horizon
3
FEB 2010 . ISSUE 54
Huawei Communicate
Philippe Lucas is VP International Standards & Industry Relationships of the FT/Orange Group. Philippe is also on the Executive Committee of the GSMA, the ETSI Board and the OMA Board. He was previously an independent consultant on mobile strategy for government, operators and manufacturers.
LTE, part of our mobile broadband strategy
he past few years have seen a drastic increase in data traffic on mobile networks. Coping with this surge of data traffi c is a
daunting challenge that operators have to take on and overcome, while LTE is poised to be a solution that can provide the right capacity at reduced cost for networks.
A solid 3G infrastructure
France Telecom Orange is now present in 28 countries with around 130 million mobile customers. In terms of broadband penetration, Orange had more than 22% of its customers in 2008 using 3G networks, and many of them are from emerging countries.
With the developments of our 3G networks in the U.K., France, Spain, Poland, and the rest of Europe, we are able to provide mobile services in most of the countries by consistently using a single technology family: GSM, EDGE, UMTS, HSPA, HSDPA, and HSUPA. The 3G coverage by population in our four major countries is: 75% for France, 94% for the U.K., 83% for Spain and 53% for Poland, The main technologies employed are HSDPA and HSUPA.
Upsurge of data traffi c
The low bandwidth available on data networks such as GPRS and EDGE makes it imperative for Orange to move to 3G.
To cope with the surging data traffic, we can increase the network capacity, or offload the traffic onto alternative radio access networks and Wi-Fi network when available. In addition, we need the right handsets available and make the best use of all spectrum resources, including the current GSM and UMTS bands, as well as new bands such as UMTS extension bands and the digital dividend band.
Leading to LTE/EPC
We are seeing the increase of data capacity on both f ixed and wireless networks in parallel. On the fi xed or wire line, broadband capacity is dedicated to each line, whereas mobile broadband capacity is shared by all customers in the same cell. Mobile broadband has been continuously advancing to cope with new usages, though always trailing behind fi xed broadband. When LTE comes, it is expected that mobile devices can reach the same bandwidth as the fi xed line or fi ber.
In LTE, we may operate in many different bands or channel carriers. We need to increase throughputs and reduce the latency to 50ms or less. We also need to work on the convergence of different voice and data services on one LTE network, while ensuring QoS with reduced OPEX. In addition, increased bandwidth requires new backhaul and core networks for IP traffi c.
From the market demand and technical perspectives, all these elements point to the conclusion that LTE/EPC is the best solution to our issues or the answer to the new requirements.
4
The turning point for data consumption was the arrival of the iPhone. Besides, we have data cards that are generating much traffic on data and service networks as most of the data traffi c is from data cards on the PC side. Th e traffi c growth in our four main European countries (France, the U.K., Spain, and Poland) had been multiplied by five and half in the single year of 2008. In France with a huge number of iPhones on networks, the data growth is far higher.
Moreover, new HSPA devices and video-/Internet-based services on 3G networks will attract immense traffic to the networks. For example, the Orange TV provided on French 3G networks has derived huge traffi c.
TIn LTE, we may operate in many different bands or channel carriers. We need to increase throughputs and reduce the latency to 50ms or less. We also need to work on the convergence of different voice and data services on one LTE network, while ensuring QoS with reduced OPEX.
Expert’s Forum
FEB 2010 . ISSUE 54
LTE: benefits and challenges
LTE is supported by the GSMA as the natural evolution path for GSM/UMTS operators, and declared by NGMN as the technology closest to its objectives. Operators on the planet have selected or committed to use LTE, including many EVDO operators like Verizon and KDDI. LTE is set to extend the GSM/UMTS world footprint, resulting in greater economy of scale and wider roaming.
Advanced technology at reduced cost
Different from 2G or 3G, LTE has a flatter and simpler architecture, which helps operators to reduce OPEX in the long run. Operating in packet-only mode, LTE comes with a new radio interface and achieves various carrier spacing ranging from 1.4 to 20MHz and better efficiency (high throughput UL&DL, lower latency, higher cell capacity) than 3G, providing tens of Mbps for a 20MHz channel. More important, it supports backward terminal compatibility, enabling LTE devices to use 2G or 3G network service.
As for CAPEX, LTE provides flexibility for rollout thanks to the fallback on the HSPA layer. Initial LTE rollout can focus on dense areas, on existing sites (co-sited with 3G). Further rollout can be driven by market demand. LTE also leads to reduced OPEX thanks to self-optimized network (SON) and improved spectral efficiency.
Not without its challenges
LTE’s development has challenges, especially from the frequency bands and voice side.
The spec t rum usage in LTE i s s t i l l ve r y complicated. In the U.S., Verizon is targeting at 700MHz bands; China may adopt 2.3GHz, and Europe 2.6GHz. The base station is not a big issue, but the devices can become one, especially with roaming. Despite a global technical standard, we do not have a global frequency band. This will increase the cost of devices, and the time for selecting the band when roaming in a given area will be extremely long.
Voice on LTE is a big challenge as the LTE network is packet switched only and the relevant standard has not been optimized. When using LTE for radio access but there is no voice provided by LTE, customers have to switch back to 3G or 2G networks, which increases delay. Delivering voice to LTE customers is of great importance. With LTE, VoIP is steered by IMS with efficient use of radio resources and services.
The rich communication suite (RCS) being trialed in France is very helpful to voice on IMS. We are currently promoting the RCS on the existing networks with voice over circuit switch. When VoIP over IMS is proven to be the right technology, it will be quite easy to combine voice and the RCS on IMS. At the border of LTE coverage, single radio VCC (SRVCC) will provide handover with 2G and 3G coverage by the same operator, enabling international roaming with 2G and 3G networks.
All LTE mobile devices will be multimode but maybe some USB dongles, therefore benefiting from voice service on legacy networks. Provided that LTE handsets are available before IMS deployment, there are interim solutions or technologies such as HSPA and HSDPA, which allow fallback on the 3G network for voice, as standardized by 3GPP by using CS fallback (CSFB).
France Telecom’s new horizon
We are operating in a mature European market with many countries where the mobile penetration rate has surpassed 100%. With increasingly less 2G and EDGE, we are gradually moving upward to incorporate LTE capabilities, and extend in parallel our UMTS coverage using the 900MHz band. As we are evaluating the possibility and timeline of LTE, there are many factors to take into account.
LTE spectrum al locations are expected to come through in Europe by 2010. We plan to commercially launch LTE around 2012, mainly in the mature markets under the Orange brand. However, we will first ensure that the standards are mostly finalized; then we will start looking at the digital dividend available.
Devices are a tricky issue. From the mass market perspective, we will not be able to get massive deployment of devices with voice capabilities as we have today. In the meantime, boards and cards inside PCs or laptops will emerge at the initial phase of development, to be followed by data centric devices. Afterward, LTE smartphones may come in 2012.
As for network equipment readiness, vendors must ensure that things are moving well. At Orange France, we are starting trialing LTE in our labs in Paris. We are expecting commercial progress in our launching trial in Paris in the first half of 2010.
To conclude, although outstanding issues related to device, open interface, etc. remain, LTE/EPC with its superior technological advantages is no doubt a new horizon for mobile technology, and France Telecom is committed to bringing it to reality.
Editor: Long Ji [email protected]
To France Telecom, LTE means a new horizon
5
FEB 2010 . ISSUE 54
Huawei Communicate
6
How can operators maximize the mobile broadband opportunity?
No one doubts that mobile broadband is big business. But how operators might leverage the potential remains unclear. Thomas Wehmeier, a principal analyst from Informa Telecoms & Media, spoke to us about mobile broadband opportunities and shared Informa’s views on how operators can maximize gains from mobile broadband business.
Today’s world
A period of transition
oday’s operating environment is characterized by a period of transition.
The economy has forced operators to find new and innovative ways to drive cost out of their business to protect hard-earned margins.
Competition is as intense as ever. A proliferation of players in emerging markets has resulted in intensive price compet i t ion. This compet i t ion, in combination with regulatory requirements, is intensifying pressure on ARPU and revenues. Operators are forced to develop new strategies to mitigate churn and to increase customer loyalty.
Telecoms and web convergence is a well-developed concept. The threat to mobile operator revenues is no longer l imited to rival MNOs or fixed-line counterparts.
The challenge has expanded to include Internet-based companies and other parts of the telecoms value chain focused on winning share in the services arena. To appreciate the emergence of these new
competitors, think of Skype’s success in VoIP, Google’s entry into mapping, email and IM, or Apple’s application store.
As we move into the mobile broadband era, 2010 sees us reaching a crucial tipping point where global data traffic carried over mobile networks exceeds voice traffic for the first time. This is creating a global connectivity opportunity of huge proportions. Most significantly, we believe it is the emerging markets that will see new mobile broadband networks creating unprecedented opportunities.
A connected world
It has been just over 30 years since Japan’s NTT DOCOMO launched the world’s first commercial cellular mobile phone network, on 1 December 1979. The way the industry has progressed since then is nothing short of remarkable.
Despite a slowdown in the rate of customer additions, the global mobile market still grew over 16% in terms of new connections in 2009. Asia alone reported more than 360 million new connections in 2009, while the industry as a whole surpassed 4.5 billion connections worldwide in October 2009.
Mobile technology has simply become
Thomas Wehmeier is a principal analyst within Informa Telecoms & Media’s Industry Research division. His specialized interests lie in analyzing mobile operator strategies, in particular looking at the impact of technological evolution from 2G through 3G to 4G from an operator perspective. Thomas also looks closely at the impact of regulation on mobile operator business models.
By Thomas Wehmeier
T
Expert’s Forum
FEB 2010 . ISSUE 54
Operators have been bullish in pushing and promoting this new source of revenue, not only by dedicating valuable retail space to products such as netbooks and laptops but also by aggressively subsidizing the segment as they seek to attract new customers, retain high-value users and carve out their own slice of what stands to be a nearly 40 billion USD annual business in 2013.
Challenges and considerations for MBB deployment
Next, we will speak candidly about the types of challenges that lie ahead, the considerations this imposes on CTOs and the strategies being adopted throughout Asia to address the challenges.
Ready to support the exaflood?
An exaflood of traffic is on the horizon a s smar tphone usage and por tab l e broadband connections drive a surge in demand for bandwidth.
Although we see the growth of the portable broadband user base from less than 60 million in 2009 to about 300 million in 2013, this revenue opportunity does not come without its own problems. As users of portable broadband services proliferate, their average monthly usage will grow equally quickly as they become familiar with the value of broadband on the go. The average data t ra f f ic consumption per month for portable users is forecast to skyrocket from 500MB in 2009 to 990MB in 2013. When we take both the rising user numbers and the growing average usage together, it’s not hard to see why we will be entering the era of the exaflood. In 2013, total annualized traffic is forecast to reach more than 8 exabytes, compared with less than 0.5 exabytes in 2009. For the record, an exabyte is roughly equivalent to 50,000 years of DVD-quality video. The sheer volume and cost of supporting this upcoming data flood is unparalleled. How will networks prepare, and what are the real challenges posed by this new era?
7
the most global, the most pervasive and the most loved form of technology ever invented.
Mobile broadband trends and forecasts
All over the world, from Africa to Asia, from China to Chile, we have seen investment in and deployment of mobile broadband networks. Today’s global telecoms arena consists of almost 400 separate mobile broadband networks in operation, truly creating a world united by a global tide of mobile broadband connectivity.
Mobile broadband growth into 2013
In 2013, mobile broadband users will number more than 1.4 billion. Growth is being led today by North America, Europe and the more developed markets of Asia in Japan and South Korea. Asia’s importance to the global mobile broadband user base will surge starting in 2011, when we expect to see present investments in 3G networks in China, India, Indonesia, Vietnam and many others evolve into huge motors of growth for worldwide mobile broadband usage.
HSPA will be the dominant global technology for the next three year. We will see more than 900 million HSPA users around the world in 2013–more than two-thirds of all mobile broadband users–and close to 350 million of these will live in Asia.
LTE will come on stream from 2010 onward. We expect to see the first early-adopter launches in Asia, and in North America and Europe, happening during the final phases of 2010, but we also expect take-up to be slow while deployments remain small in scope and the availability of appealing, mass-market devices is limited.
Mobile data is big and getting bigger
We spend considerable time berating ourselves as an industry, ruing the fact that
voice still accounts for more than 70% of global mobile service revenues. But when you remember that our industry is worth more than 900 billion USD in operator service revenues alone, you realize even 20% makes up a huge market. In 2008, mobile data generated 107 billion USD in revenues and P2P SMS generated 76 billion USD. Combined they accounted for 23% of the overall industry revenue.
We forecast mobile data revenues, along with P2P SMS, will grow from 184 billion USD of 2008 to more than 330 billion USD in 2013.
Portable segment emerges as a key new revenue stream
P2P SMS is unsurprisingly still the largest data service, but newer revenue streams are witnessing rapid expansion. Today’s fastest-growing data service is the provision of Internet connectivity through nonhandset devices, such as USB modems, netbooks, embedded laptops and PC attachment devices–what we refer to as the “portable broadband” segment. It has already emerged as an industry worth over 10 billion USD.
If we take a look at the global data revenues by application in 2009, we see that broadband connectivity is the fastest-growing data service globally for operators with mobile broadband networks, and the third most important source of nonvoice revenue, with around 11 billion USD–second to P2P SMS’s 80 billion plus USD and the mobile Internet’s approximately 67 billion USD in 2009. It accounts for 5% of global data revenues and 9% of non-SMS data revenues.
Although traditional handset form factors will far outweigh them in terms of volumes, nonhandset devices, such as dongles, will grow to become a sizable segment. We estimate there to be 60 million portable device users, with USB modems as the dominant choice of form factor.
In Asia we have already seen more than 20 million users throughout the region take up primarily dongles. Asia accounts for about one-third of the global portable market, with the region forecast to grow to more than 107 million by the end of 2013.
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The cost element drives operators toward LTE, network outsourcing and sharing, converged control and transport layers and SDR-based access networks, while the service-value element is why operators are looking to intelligent packet management and opening up network APIs, such as location, user metadata and real-time delivery.
Traffi c vs. revenue
Given the exaflood of traff ic, the data-traffic growth stands to far outstrip i ts revenue upside. Informa spent a painstaking six months in early 2008 and then six more months in late 2009 studying and quantifying this trend globally. So although we see healthy growth of 180% in data-service revenues from 2008 to 2013, that figure will be dwarfed by the growth in data traffic–rising to 17 times today’s volumes.
• Flat rate: one of the culprits
The revenue generated per megabyte has been driven to a fraction of its former levels by the advent of the flat-rate era. Informa spoke with an Asian operator that had introduced HSPA to its network in 3Q07, thereby helping push revenue steadily upward, but in the past two years the operator has also seen a 900-fold growth in traffi c.
In the space of just nine quarters between 2Q07 and 2Q09, the average revenue per gigabyte for this operator fell from over 5,600 USD to just 11 USD. In megabyte terms, the operator is now generating just 1 dollar on average. Nothing more explicitly demonstrates how mobile broadband and the fl at-rate model are shaping a new world for network operators around the world and why we must question the economics of today’s mobile broadband models.
• New services generate lower value per megabyte
In 2009, Informa calculated the average revenue per megabyte generated for mobile broadband, P2P email and P2P SMS to be 0.05, 0.37 and 260.72 USD per megabyte, respectively.
Ne w e r s e r v i c e s s u c h a s m o b i l e broadband generate much lower returns than traditional data services. Indeed, service value and traffic volume have become very much decoupled in a fl at-rate world.
Th is leaves operators facing a dual-edged challenge: They must develop charging and pricing models to maximize revenue per megabit while working incessantly to
drive down production cost per megabyte. Th e cost element drives operators toward LTE, network outsourcing and sharing, converged control and transport layers and SDR-based access networks, while the service-value element is why operators are looking to intelligent packet management and opening up network APIs, such as location, user metadata and real-time delivery, to generate additional value from existing service-delivery models.
Network pipes are going to be full of traffi c from these lower-revenue-generating services. When we look at the split of global data-traffic origin by device type, traffic from higher-value handset-based services (1.25 USD per megabyte) will fall as a proportion of overall network traffi c from 40% in 2008 to around 16.5% in 2013, meaning the pipes become full of traffic (by portable devices at 0.05 USD per megabyte) and will generate about one-25th of the amount of revenue per megabyte from other data sources. Average revenue per megabyte will fall to 0.20 USD and 0.01 USD for handset-based data services and portable device-based, respectively, in 2013.
Another dilemma: resource monopolization
As ever, the distribution of network resources to users is far from balanced. Another dilemma is imposed by the monopolization of the resources by a small hard-core minority of users–typically 5-10% of an operator’s customers–with the effect that a fraction of users drives CAPEX requirements.
Some might say, well fine–we now know that 95% of users must be highly profitable, because they use up so little traffi c. True, perhaps, but the real challenge is that without active management, it’s the small group that drives busy-hour peaks higher and therefore skews provisioning requirements and ultimately ends up forcing investments to ensure that network quality doesn’t suff er.
The train of thought, within both the CTO and CMO offices, is now rolling on toward the introduction of more intelligent packet-management strategies, enabling them to develop models to cope with the hard-core minority of bandwidth-hogging customers. CTOs need ways to help fl atten peak bandwidth demands and optimize utilization levels in order to keep small groups of users from driving “busy hour” provisioning and therefore driving CAPEX levels up.
How operators move into this brave new world
Bearing in mind the forecast explosive growth of the portable segment, it’s natural to ask how operators are prepared to move into this brave new world.
• Real strategies
To m e e t t h e e x a f l o o d h e a d o n , throughout Asia we see multiple strategies being deployed by operators to embrace and address the tidal wave of traffic anticipated for the region.
Perhaps most h igh prof i l e i s the movement toward next -genera t ion network deployments and the promise of HSPA+ and LTE helping drive down the cost of production per megabyte and allowing operators to scale traffic growth profi tably. As ever, technology innovation will be led from Asia, and we expect to see early LTE deployments in 2010 in Japan, followed by more commercial networks
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in China, Hong Kong and South Korea sometime around 2011. At least s ix HSPA+ networks are already in service in Asia, from Hong Kong to Singapore to Japan–including EMOBILE, StarHub and SoftBank, just to name a few.
But existing technologies also have a long l i f e t ime . Inve s tment in the densifi cation and expansion of networks is happening at an accelerated rate to meet users’ capacity demands. I was particularly interested to note that KTF in South Korea recently just lit not its second or third but its fourth carrier for HSPA in South Korea. Capacity is being eaten up as quickly as it’s deployed.
Operators are being forced to examine supplies of their basic raw materials too. Spectrum is the lifeblood of operators’ networks, and more innovative approaches to spectrum usage are demanded in the new mobile broadband world. Th is means opening up new bands, such as the digital-dividend band, 2.6GHz or 1.5GHz, and it also means more-intelligent use of existing bands.
Traffic offloading and indoor coverage are two other critical issues. How can operators re l ieve pressure f rom the macronetworks and get access points closer to their users to achieve more-effi cient bit rates? Femtocells and a multimode access strategy encompassing Wi-Fi are two core options, and we see this being adopted in Asia. NTT DOCOMO, StarHub and SoftBank have all made announcements regarding their femtocell plans.
• Maximize today’s mobile broadband opportunity
So how do we believe operators can position themselves to maximize today’s mobile broadband opportunity?
The re mus t a ho l i s t i c ne twork -deployment strategy to manage the move into this new paradigm without blowing profi tability.
The first is to ensure that networks a re s e t up to cope . Inves tments to boost speeds are necessary to ensure network competitiveness and to address the demands of bandwidth-intensive applications. Coverage too is critical. Today’s mobile broadband users expect to exploit networks anywhere and anytime.
Inside coverage in particular must be addressed, given that 70% of traffic originates within four walls.
Operators must a l so look to add intelligence into their cores. Intelligent shaping of traffic will be a fundamental strategy to help deliver optimum utilization levels, to help segment users effectively, to develop QoS-based services and to introduce more fl exible and real-time billing and payment propositions/platforms.
Th e network and connectivity in itself is not just a service but an enabler. Operators are evolving their strategies to open up their networks so they can move into an era of service enablement and service delivery for upstream third parties seeking to exploit their network assets.
Monetizing with an open network strategy
Network always at the core
Now let’s focus on monet izat ion strategies for next-generation services and analyze how an open network- and service-enablement strategy can forge a path to the world beyond a “dumb pipe.”
In the developed arena in particular, operators are reaching a crossroads–real questions are being posed as to whether an
operator’s role should simply be limited to providing fl ows of data–an access pipe and nothing more. This is based on doubt as to whether operators can develop, market and generate profi t from their own set of successful services. Vodafone 360 has some promise, but for every Vodafone 360 there are a dozen failed attempts by operators to create and monetize their own-branded services.
Th e emergence of the application store and other above-the-line services delivered from the Internet world has the potential to cut out the operator entirely–to relegate it to being a “dumb pipe.”
An absolute cornerstone to understanding this debate is the need to recognize that the network is, always has been and will remain a key form of differentiation and innovation for any mobile network operator. Whatever doubts might be raised by network outsourcing or ubiquitous network coverage, don’t think for a minute that the network no longer plays a role in an operator’s core strategy. What’s more, the network when acting as a smart or intelligent pipe can also be a high-margin service–something echoed by T-Mobile USA’s and Vodafone’s CEOs.
In fact, it’s not unreasonable to say that in today’s new world, the most important thing to control is not the customer but the network.
Once understood, this mindset becomes a key driver to opening up networks, and understanding it can not only provide services directly to consumers but also act as an enabling platform for an unlimited long tail of other applications that can leverage the unique capabilities of today’s mobile networks.
Motivations for opening up networks
Revenue pressure on core services is forcing operators to find and develop new revenue streams. Competition is forcing operators to develop new forms of customer loyalty, and at the same time they are also being forced to react to the threat of disruptive new entrants into the new service-oriented value chain by bringing out, for example, their own application stores, diff erentiated by the integration of their own unique network APIs, such as
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The network is, always has been and will remain a key form of differentiation and innovation for any mobile network operator. Whatever doubts might be raised by network outsourcing or ubiquitous network coverage, don’t think for a minute that the network no longer plays a role in an operator’s core strategy.
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billing, location and voice and messaging integration (and hundreds of others).
Added to this, more and more third parties see the commercial, societal or even environmental value of integrating wireless connectivity into their own vertical products, and this is creating a wave of demand to access and use operators’ networks. An open-network approach is essential to jumping on this opportunity.
Finally, by offering network assets to developers and effectively outsourcing se r v ice c rea t ion and deve lopment , operators can reduce the cost and risks attached to service development and can improve time-to-market.
Customer for tomorrow: B2Anything
These ever-morphing changes in the industry are also creating a paradigm shift in the definition of an operator’s customer.
Now, h ow e v e r, o p e r a t o r s m u s t complete ly redef ine the concept of who their potential customers are. In a communications world, humans are the core customer base, but in a world where the network is also a service enabler for third-party organizations, customers can be anybody or anything–it’s the move from B2H to B2Anything, from the small application developer in the garage to Amazon, BMW and the government health ministry.
And an open -ne twork po l i c y i s essentially a strategic structural shift to address the long tail of demand for access to mobile network assets–whoever that potential partner may be. Vodafone exemplifies this trend toward an open network platform and vision of service enablement. As Mr. Vittorio Colao, CEO of Vodafone Group, said: “Our vision is efficient pipes, smart networks and a communication-centric platform. This is our vision for the future, and this is also the concept of Power to You, the new brand position that we have: power to the customers, freedom to the customers, but enablement through our efficient commercial and technical platform.”
How can operators grow new revenue streams
O f c o u r s e , t h e k e y q u e s t i o n i s how operators can make money from opening up their networks. What is the monetization strategy (or monetization approaches for open-network strategy) in this new age of service delivery?
There are several ways operators can develop new incremental revenue streams from pursuing an open network model.
Fi r s t i s the two- s ided whole sa l e model. I primarily see this as an evolved wholesale strategy, offering up wholesale access to their network services (e.g. volumes of data) that can be integrated into downstream service propositions sold by third parties. The classic example is the Kindle model, in which Sprint is making high-margin incremental revenue from wholesaling data capacity on its network. Each Kindle connected to its network might be worth only about 2 USD a month in ARPU to Sprint, but this is incremental new revenue–also much higher margin, given that there is no need to support CRM or to invest in marketing, advertising or distribution.
Second i s chargeab le APIs . Thi s is simple: charging a fee to access an operator’s network assets. This could be, for example, charging a set monthly fee to allow a developer to use an operator’s b i l l ing p lat form for in-appl icat ion payments.
Third is revenue-sharing–the classic model in which an operator takes a slice of overall revenues. For example, an operator could take 30% of any application revenue generated from applications downloaded via its own app store.
F o u r t h i s s e r v i c e m a s h - u p s –a monetization stream opened up by incremental traffic volumes created over its network by service mash-ups that use an operator’s core voice and messaging capabilities. A successful example is Orange France’s monetization of an application used by pharmacies to deliver prescription advice to patients via an application. Not a massive traffic driver, but new billable traffic on the network.
More than new revenue streams
But let’s be clear: Although paths to monetization in the era of next-generation
service delivery exist, it is far from being all about increasing revenues. There are more strategic motivations for developing an open and innovative next-generation service-delivery platform, which include cu s tomer a cqu i s i t i on , l oya l t y and churn reduction, new and incremental revenue streams, and brand value and differentiation, all surrounding customer-value creation.
Alongside the revenue models I have outlined, an open network can create value by attracting new customers to an operator’s network. This is especially true where strong brands from the Internet wor ld can be embraced as par tners and used to attract customers to their networks. In Sweden, TeliaSonera, the incumbent mobile operator, has partnered with Spotify to deliver enhanced music services–with its primary goal to drive acquisition and retention in a competitive climate.
More important, next-generation service delivery is a way to ensure that the network and its value remain central to everything. An application with an operator’s billing and location assets integrated is by definition more valuable to an end-user, while a VoIP proposition that leverages an operator’s ability to provide QoS guarantees is also of higher worth. An e-reader with mobile connectivity is an enhanced value proposition for users. All of this additional value provides an opportunity to earn new revenue. It requires a massive shift of mindset and structural reorganization, but the opportunity is real.
To conclude, mobi le broadband, with the opportunity it promises with an estimated 38 billion USD revenue by 2013, also brings unprecedented challenges for network managers. Operators must invest in intelligent packet management to segment mobile broadband users, create new revenue opportunities and manage network resources more efficiently. We are glad to see operators embracing open network strategies to maximize the revenue opportunities from next-generation service delivery. Keep going. A brave new world lies ahead.
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Editor: Zhu Wenli [email protected]
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LTE is now
LTE is nowOn December 14, 2009, TeliaSonera announced that the world’s fi rst commercial LTE network was offi cially up and running in Norway. This network represents a milestone in realizing the LTE dream.
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Why LTE?
s smart phones such as the iPhone and Gphone continue hitting the mainstream, the use of data services and the demand for
bandwidth are exploding among subscribers. Operators are forced to cut per-bit costs to competitively supply Internet access via mobile phones, especially the increasingly popular and bandwidth-hungry HD VOD.
Th e LTE solution has come at the right time. LTE technology raises bandwidth and lowers latency, while its flat All-IP architecture simplifi es networks and reduces the number of required NEs and thus the maintenance burden for operators. These gains in turn push down TCO and allow operators to cut per-bit costs. Moreover, data services over LTE networks are ultra-fast and QoS is high thanks to greater service diversity and tailoring capabilities. Unsurprisingly, operators are beginning to position LTE as the future of mobile technology.
ABI reports that LTE networks will really become visible during 2010 and 2011 in the shape of 15 commercial LTE networks worldwide. By 2013, an estimated 30 million mobile broadband subscribers will have access to LTE network services through 70 or so LTE networks. Between 2014 and 2015, commercial LTE networks will be deployed on a massive scale and, by 2016, 10% of all mobile broadband subscribers will be accessing LTE services.
TeliaSonera: today shapes tomorrow
TeliaSonera has taken an early and impressive lead in the LTE era. As the largest telecom operator in the Nordic and Baltic Sea region, TeliaSonera operates networks in 18 countries and serves 182 million mobile subscribers. As a known technical innovator and pioneer, TeliaSonera built Europe’s fi rst 3G network in 2003 and the continent’s fi rst HSPA network in 2007. In 2008, data service traffic across its networks rocketed by 492%, boosting related revenues by over 60%.
Strategically, TeliaSonera innovates its way
into a leading market position and keeps prices competitive. Its confi dent foray into LTE is no exception. Lars Nyberg, the company president and CEO, remarked, “Mobile broadband accounts for most of the growth in broadband services. And mobile broadband will carry the growth within the mobile business for another 10 years. We really see mobile broadband taking off and we aim for the same market leading position in mobile data in Sweden and Finland, as in other services.”
According to Mr. Nyberg, there are three factors that are essential for operators to successfully transform their service portfolios. First is network quality, which is the top priority; Second is rapid and high-quality services that are capable of garnering customer loyalty. And lastly, OPEX needs to be lower than that incurred by competitors.
In January 2009, TeliaSonera contracted Huawe i to cons t ruc t the wor ld ’s f i r s t commercial LTE network in Oslo. Lars Klasson, Senior Vice President and CTO, Mobility Services of TeliaSonera said, “We have chosen Huawei as our partner based on their strong focus on LTE development and early deployment capabilities, as well as Huawei’s impressive and proven worldwide track record in advanced mobile technology.”
Th e partnership culminated in the world’s fi rst mobile broadband access via a commercial LTE network on June 3, 2009. The two companies used an LTE modem to connect a laptop to the Internet to bring alive the full range of mobile data services–including movie downloads and commerce at much faster speeds than ever achieved by fi xed broadband. June 2009 also saw the partners’ cooperation deepen, with TeliaSonera selecting Huawei to deploy Europe’s first commercial SingleRAN network. Th e solution utilizes software defi ned radio (SDR) technology to shift broadband from fi xed to mobile in the remote rural areas of Finland.
LTE speeds up in Europe
While TeliaSonera’s innovations have consistently achieved global fi rsts and remain the building blocks of the company’s success, it is not the only operator with its eye on LTE–several multinational giants from Europe are already making their play. Three of the five publicly announced LTE contracts are from
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LTE is now
European operators, confirming Europe as the major stage for LTE competition.
The rise of LTE
In October 2009, MTS, the CIS’s largest mobile operator, contracted Huawei to deploy the region’s first LTE network in Uzbekistan.
Oleg Raspopov, Vice President and Head of Business Unit “MTS Foreign Subs id ia r i e s” remarked, “MTS has launched 3G network in Uzbekistan recently, and intends to further introduce the cutting edge telecom technologies in the country. I’m sure that the license for LTE networking that we obtained, and an agreement we signed with Huawei regarding our intentions to develop this telecom standard in Uzbekistan will contribute to the introduction of this technology as well as give a powerful incentive to the development of the telecom sphere in the country.”
In November 2009, Telenor, one of the world’s top ten mobile operators, c o n t r a c t e d Hu a w e i t o d e p l o y i t s commercial LTE network in Norway. As the exclusive vendor of Telenor’s wireless networks for the next 6 years, Huawei
plans to migrate and upgrade the operator’s 2G and 3G networks, and deploy Europe’s largest commercial LTE network across Norway.
A few days later, Belgacom, Belgium’s largest telecom operator, signed a contract with Huawei to deploy its SingleRAN solution and fourth generation SDR base stations. The solution will migrate and upgrade Belgacom’s 2G and 3G networks into high performance, large capacity, and future-oriented HSPA+ networks, and integrate the operator’s GSM, WCDMA networks with its LTE network that covers Belgium.
Brussels is often regarded as the capital of Europe given its political significance. Including the EU and NATO, over 100 key institutions are based in the city and the number of high-end subscribers requiring high grade mobile services is considerable.
Project complet ion wi l l rea l ize a much simpler network structure that will raise reliability and performance in order to satisfy local high-end consumers and provide over 5 million Belgacom subscribers with next generation mobile technology.
“By partnering with Huawei for the
progressive swap of the current radio network, Belgacom continues to pursue its fixed mobile convergence strategy in a controlled way,” Scott Alcott, Executive Vice President at Belgacom remarked. “It will allow us to reinforce our mobile leadership in Belgium over the years to come.”
Trial networks
P r e c e d i n g f u l l LT E n e t w o r k commercialization, many operators are deploying LTE trial networks.
In August 2009, Vodafone Germany and Huawei announced joint plans to conduct the industry’s f i r s t LTE performance and application test within the Digital Dividend Band, which covers the 790 to 862MHz range freed up by the change from analog to digital TV. Known as the “Gold Band”, the range offers wider than usual coverage and a larger transmission capacity. Consequently, it is a hotly contested prize for operators.
Utilizing the Huawei E2E solution, the Vodafone/Huawei test aims to enhance mobile broadband network coverage and confirm that LTE technology, digital TV, and broadcast technologies are compatible
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within the “Gold Band”. In October 2009, Huawei and the global leader,
T-Mobile, successfully performed the world’s first self-organizing network (SON) function test across the Innsbruck’s trial LTE network. As a key LTE solution, SON can self-configure, self-optimize, and self-maintain. SON technology sustains connectivity and performance even when network topology changes, which simplifies and reduces O&M for technical staff, and lowers the OPEX incurred by planning, optimization, and deployment.
Prior to the test, T-Mobile and Huawei had already deployed Europe’s largest LTE/SAE trial network in Innsbruck, across which the partners conducted the world’s f irst multi-subscriber mobile broadband service test. Mirroring an actual environment, the role of the LTE/SAE trial network is to better understand end user experience and the technologies involved.
As LTE’s core network, SAE provides high per formance, h igh re l iabi l i ty, and seamless evolution capabilities across a unified and large capacity platform. With T-Mobile’s expectation of incorporating the test results into the industry standard, the LTE/SAE trial network performed solidly in a range of complex scenarios.
In November 2009, Telecom Italia contracted Huawei to deploy the first LTE trial network in Turin, Italy, reaffirming that LTE is firmly on Europe’s doorstep.
TD-LTE technology debuts at 2010 Shanghai Expo
The World Expo, the Olympic Games and the World Cup are three major global events that demonstrate the unity of modern civilization by showcasing our greatest technological and sporting achievements. At the 2010 Expo in Shanghai, Huawei will demonstrate its capabilities in TD-LTE network deployment, service application, and technical services.
The Huawei E2E demo network is already operational across the 5.28km2 site, providing users with high speed mobile broadband services at a downlink rate of 29Mbps. Integrating LTE wireless access and an SAE core with catch-and-transfer terminals, users can transmit data across the LTE module’s high-speed mobile Internet, including live HD video, files and photos.
Visitors around the Expo site and even those in the bus or relaxing on yachts on the Huangpu River can also access detailed information about the Expo through HD mobile video, bringing an unprecedented level of information access right into the palm of people’s hands. Additionally, the system will guarantee safety through onsite security centers that use TD-LTE-based HD image collection to monitor vehicles, boats, and attendees.
Li Changzhu, Deputy Chief for Huawei in China, explains the significance of TD-LTE networks:
While TeliaSonera’s innovations have consistently achieved global firsts and remain the building blocks of the company’s success, it is not the only operator with its eye on LTE–several giants from Europe are already making their play. Three of the five announced LTE contracts are from European operators, confirming Europe as the major stage for LTE competition.
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“There will be a major attraction at the World Expo 2010 Shanghai, and the profile of LTE among global operators and industry organizations is sure to increase as a result. In particular, our industry-leading FD/TD LTE solution offers higher bandwidth, fewer delays and more efficient spectrum utilization than ever before. On a wider scale, we’ve already deployed unified SAE core networks across the globe, and are making great progress in the field.
“By realizing mobile Internet through broadband, we believe that our demo network will fortify the Expo’s theme of ‘Better City, Better Life’, and represent a milestone in terms of its overall development.”
Huawei leading LTE commercialization Cumulative experience plays a pivotal role
As a globally-leading mobile communications solution provider, Huawei is confident that LTE technology will lead future-oriented network evolution. Huawei began to develop LTE technology as early as 2004 and, with cumulative experience and sustained investment, has helped stimulate the maturity of the LTE industry through its key role in several LTE standards’ organizations.
In 2006, Huawei set up several TD-LTE and FD-
LTE technology pilot networks in China, Europe, North America, and Japan, and initiated several E2E field test projects before producing the world’s first LTE sample in early 2007. Huawei’s LTE networks are more mature and stable than the global trend as they are underpinned by Huawei’s industry-leading fourth generation base station platform. In 2008, Huawei consolidated its leading position by verifying dual-mode HSPA/LTE, CDMA/LTE, and TD-SCDMA/TD-LTE services. At the Mobile World Congress in Barcelona in February 2009, Huawei unveiled the industry’s first FD-LTE and TD-LTE integration solution, before releasing the world’s first commercial LTE eNode B at the Huawei Global User Conference in Munich in July 2009. This ratified its place as the world’s first equipment provider capable of developing commercial LTE networks. To date, Huawei has deployed over 25 LTE networks throughout the world.
Flawless performance
The super ior per formance of the Huawei LTE solution also sharpens its competitive edge. Through advanced technologies including MIMO, soft frequency reuse, and interference control, the Huawei LTE solution increases cell capacity, enhances the stability of wireless access, and raises network coverage capabilities. Additionally, Huawei has launched its E2E LTE/SAE solution featuring
With only two markets in the world graced by commercial LTE services as of mid-December (TeliaSonera’s launches in Stockholm and Oslo), it’s clearly too early to make any iron-clad declarations. That said, one need only look back to Stockholm and Oslo to identify what should be two LTE front-runners: Huawei and Ericsson.
Huawei claims one of the fastest growing (and most financially successful) wireless infrastructure businesses backed by a cost-effective set of products that stretch from the mobile edge into the carrier core and what it claims is a strategic focus on ramping up its professional services capabilities.
Perhaps more importantly, its multi-standard base station platform has been in the market for some time, proving out its capabilities and setting up LTE upgrade opportunities. And, where an operator wants a real end-to-end solution (or just a little help in ramping up early device supplies), Huawei is well known for supporting operators with mobile broadband devices including USB dongles and phones.
As of December 2009, among the 12 high-profile trials and commercial LTE contracts already publicly announced, Huawei had bagged 6 contracts, making it the leader of LTE market.
From LTE – The Market & Its Requirements by Current Analysis: Huawei pulls ahead in LTE
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integrated terminals , O&M, eNode Bs, Evolved Packet Cores (EPCs), and transmission. Th e solution is designed to boost operators’ business development space and lower the CAPEX incurred by network upgrades.
Huawei’s diversified eNode B and EPC product series minimizes delays and raises speed. The series also provides high spectrum utilization, All-IP flexible networking capabilities, and can seamlessly evolve 2G/3G networks into LTE. Field tests demonstrate a physical layer downlink rate of up to 173Mbps, the highest in the industry, coupled with a switch success ratio that exceeds 99%.
As the industry’s fi rst vendor to develop power amplification technology in RF equipment, Huawei has made efficiency gains of 40% in wireless base stations and leads the industry in terms of reducing the power consumption of LTE base stations, which significantly reduces operators’ OPEX and boosts operators’ profi tability.
Most patents
Huawei has the largest number of LTE patents of all global equipment providers. ETSI statistics record that Huawei had
obtained 168 LTE patents by the end of November 2009, around 10% of the world total of 1,650.
Promotes industry chain development
The goals of industry leaders transcend self growth and actively seek to guide the development of the whole industry chain. In July 2009, the open LTE laboratories set up by Huawei in Texas and Tokyo were offi cially put into operation. Th e Texas lab in Richardson serves as an open LTE technical platform for North American operators and partners to rigorously test LTE systems before deployment, which will be crucial for LTE development in the nation.
The Tokyo l ab i s a cut t ing-edge technological incubator with complete testing facilities that mirror an actual environment to test peak throughput, delays, multiple subscriber usage, switches, and SONs. Equipped with Huawei’s DBS3900 fourth generation base stations, the latest commercial LTE software, and a full range of testing terminals, the lab provides testing and training services to fully prepare operators and partners for the commercial deployment of next generation
wireless technology and LTE networks.With a full knowledge of the importance
that terminals have on the whole industry chain, Huawei is jointly conducting IOTs with numerous LTE terminal vendors. In November 2009, Huawei and Samsung conducted a successful and milestone joint IOT on a Huawei-deployed LTE network that incorporates Samsung’s commercial LTE modem. Th e success of the test signals the end of the technical bottleneck plaguing LTE terminals, and helps close the E2E loop that is essential for large scale LTE deployment.
The strong development of the LTE industry responds to society’s higher requirements for mobile communication services. Huawei is a proven powerhouse in the LTE field, having contributed s i gn i f i c an t l y t o bu i l d ing the LTE industry chain and leading the field in commercially applying LTE networks. Through sustained investment in LTE technologies and deeper cooperation with third party players and operators, Huawei will utilize the breadth of its experience and knowledge to enhance the personal and professional lives of people across the globe through LTE.
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Telecom industry trends in the next decadeFor 20 years, continuous technical transformation and information waves have driven high growth in the telecom industry. However, an age with saturated telecom penetration is coming, and telecoms industry is facing a brand new situation. Looking to the next decade, how can the telecoms industry adapt itself to the requirements of the new age in the changed environment? Through “Four Surpasses”, the telecoms industry will continue to achieve high growth in the next decade.
Surpassing population and developing new subscribers: the Internet of Things opens a door to new opportunities
he r ap id deve lopment o f mobile communication and the Internet facilitates the approach ing o f a “g loba l
village”. In some developed countries and regions, mobile communication penetration rate has already reached or surpassed 100%. In the coming two years, the number of mobile subscribers will be up to 5 billion, and the network will cover over 80% of the global population.
T
However, it is far from enough to achieve the connection of “human beings” and utilize the intelligence of “human beings”. Today, we are faced with many common problems. For example, energy shortages coexist with massive wastes of energy. According to research from United States Department of Energy, electrical energy loss accounts for 67% of the total electrical energy produced. Science and technology improves our lives, yet on the other side it results in serious environmental pollution. Statistics from the Asian Development Bank shows 20% of the global population lacks access to safe drinking water, 50% of the population does not have adequate health care…
The Internet of Things emerges under this background. The essence of the Internet of Th ings is to apply information
and communication technology (ICT) to different industries, thus realizing “Intelligent Perception and Intelligent Control” via the adoption of ICT and achieving the objective of “efficiency improvement, scientific decision making, e n e r g y s a v i n g a n d e n v i ro n m e n t a l protection, and cost savings” to promote the upgrade and development of human society from an electronic society (E society) to a ubiquitous society (U society).
The Internet of Things describes an unprecedented blueprint for industries such as telecom and IT. It is predicted that by 2020, the ratio between machine type communications to human type communications will reach 30:1, which wil l a l low operators to extend their subscriber base from 6 billion people to 50 billion or even over a trillion machines and
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Telecom industry trends in the next decade
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objects, and thus opens a new door and serves as the basis for “surpass population and developing new subscribers” for the telecoms industry.
Surpassing voice communications and developing new services: mobile broadband contributes to the industry’s rapid development
The revenue for voice services has saturated or even gradually declined
w i t h t h e d e ve l o p m e n t s o f m o b i l e communication in the past decade. In the past five years, the revenue for fixed voice services was reduced by 15%, and the growth rate of mobile voice services decreased from 17.5% in 2004 to 1% in 2009 in Spain. Even in emerging markets represented by India, the revenue per minute (RPM) of mobile operators in 2008 fell 50% compared with the same period in 2007.
At the same time, mobile broadband is entering a golden age of development, bringing human society to a new height of ubiquity. The number of mobi le broadband subscribers wil l increase tenfold, reaching 3 billion in the next 5 years. However, we still have not fully utilized mobile broadband, which depends on the joint eff orts of the entire industry
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chain, including “terminal, network, and service”. Although new network technologies such as HSPA/LTE are capable of supporting the cost eff ectiveness of mobile broadband development, there are many challenges ahead in facing the thousandfold traffic increase of mobile broadband for the next decade. New types of smart terminals such as iPhone bring convenient man-machine interactions, yet the high price of smart terminals is the biggest bottleneck that restricts the popularity of mobile broadband. WOA technology, represented by “Widget”, can move Internet services and industry s e r v i ce s to mobi l e phones , g rea t ly enriching the services and applications for mobile broadband.
Currently, an open ecological environment that includes “terminal, network, and
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service” which centered on broadband experience is in an early form. With the challenges of traffic and cost being overcome, it is predictable that mobile b r o a d b a n d w i l l b e c o m e t h e m o s t significant force to promote industry development. Operators can achieve sustainable growth i f they focus on developing mobile broadband services rather than voice communications.
Surpassing the pipeline, and exploring new business model: cloud computing brings new opportunities
The popularity of broadband provides a basis for cloud computing. Cloud computing appears in the form of an “information power plant”, and is overturning the traditional business mode of software, hardware, and media. That is, users are moving from “buying products” to “buying services”.
The change in the business mode is redefining the industry structure. By changing the distribution mode of software to “terminal (iPod/iPhone) + application (iTunes/Appstore)”, Apple has surpassed Wal-Mart and become the largest music distribution channel; Google is incubating a larger revolution to achieve development, deployment, and operation of software and services through its APP engine, with flexible expansion based on traffic through the cloud computing platform and cloud storage platform at the bottom layer. In this case, there is no need for software vendors and users to buy any hardware equipment or platform software. This technology will overturn the sales modes of hardware and software for companies such as IBM, HP, Microsoft, and Oracle.
The development of cloud computing also brings opportunities for operators. On the one hand, cloud computing has shown the significance of networks and thus promotes network development. On the other hand, cloud computing services rely
PCs and mobile phones. The third is a sensor network. The fourth is a video surveillance network. The fifth is a home network. The sixth is an interconnection and control network. Among the six components, the TV screen is the first to experience revolutionary change. “On-line and On-demand” will bring consumers a brand new service experience. Consumers can freely select contents, releasing themselves from a rigid schedule. The brand new service experience will overturn the video industry dominated by “broadcast and DVD”.
Microsoft CEO Steve Ballmer said in June 2009 that traditional media would disappear within 10 years, being replaced by Internet-based content. EU pointed out in “Internet of 2020” that by then, TV channels are distributed as other Internet services, and do not need terrestrial or satellite broadcasting anymore, except in isolated areas. If the past decade witnessed the convergence of telecom and the Internet, the next decade will witness the convergence of broadcast, TV, and the Internet.
Ho m e n e t w o rk i n g i s t h e m a j o r battlefield for “network convergence of telecoms, TV and the Internet”. The “bi-direction and high bandwidth” features of the telecom network have an advantage in network convergence, and provide unprecedented strategic opportunities for operators to “surpass telecom, and enter into new industries”.
Looking forward to the next decade, “four surpasses” will help operators break the ceiling of “population, voice, pipeline, and industry”, and bring the telecom industry to a new height. However, it takes a long, hard time to achieve “four surpasses”, especially faced by the hundredfold increase in network traffic brought by mass terminals and mass digital contents.
The traffic of mobile networks will increase a thousandfold, bringing unprecedented challenges to bandwidth and cost. Huawei will innovate products, services, architectures, and technologies as always, develop a future-oriented single network strategy to support growth of future services, and promote sustainable development for the entire industry.
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Telecom industry trends in the next decade
Editor: Gao Xianrui [email protected]
on “secure and reliable” service providers, and “secure and reliable” are exactly advantages of operators. Conversely, we always see Internet service providers, no matter large or small, shut down Internet services or even go bankrupt. If operators enter the cloud computing market, they can form new services and experiences based on secure and reliable mass computing storage by integrating industry contents and applications in the digital supermarket mode, provide customers with new values, and give full play to operators’ networks and subscriber advantages. In addition, by utilizing reliable and enormous user assets obtained through customer locations and user experience, operators can employ new business models and cultivate new revenue streams through building data mining and advertisement platforms.
The market for cloud computing will move into a rapid development phase, with the market s ize exceeding 200 billion USD in the next five years. Cloud computing will be the key for business development for operators, to realize “extending network value by surpassing the pipeline”.
Surpassing telecom and extending to other industries: the revolutionary experience of home networking creates new markets
It is well known that the new experience of “digital music” and music modes like MP3 overturned the CD and music distribution industry; that is, the revolution of the user experience overturned an industry. With the increase in broadband penetration, what kind of revolution of user experience will home networking bring? Which industries will be overturned?
Let’s look at the composition of home networking. The first is an audiovisual enter ta inment network dominated by a “ TV sc reen” . The s econd i s a communication network dominated by
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Cloud Computinga world-changing power
By Dr. Fang Binxing
Definition of cloud computing
loud computing is basically a bus iness-or iented form of Internet computing and ac tua l l y an ex t en s ion o f
grid computing. Grid computing was not widely applied due to its lack of business potential. Developed to research distributed computing, grid computing comprises a super vir tual computer capable of performing ultra-large tasks via a cluster of cooperating, loosely-networked computers. Cloud computing evolved this concept and gave it a business edge. The earliest definition was coined in 1997 by Ramnath K. Chellappa, an associate professor of economics at the University of Texas. He explained cloud computing as a “computing paradigm where the boundaries of computing will be determined by economic rationale rather than technical limits.”
Cloud computing began to be popular in the computing world at the end of 2007 and has now almost entirely replaced grid computing. Nevertheless, its definition is still contested: at the international cloud computing conference in January 2009, over 22 definitions were proposed, though admittedly many of these covered some of its conceptual attributes.
What is cloud computing? I believe that it is a computing and processing model for facilitating the unlimited use of Internet computing resources through a computer terminal. Cloud computing
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CCloud computing is reshaping the computing and Internet landscape. With breakthroughs made in relevant service and business models, cloud computing will inevitably expand its role as a backbone for IT services. As a revolutionary concept, its technological realization is set to change the way people work and live.
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Cloud Computing: a world-changing power
space size, but not storage mechanics. This has given us “Software testing as a Service” (StaaS). Users want their requests to be satisfied, but are not concerned with the process, creating “Platform as a Service” (PaaS). Finally, users are concerned with the availability of computing systems, not the infrastructure through which they are implemented. This has brought about “Infrastructure as a Service” (IaaS).
Cloud computing security
Cloud computing changes personal and enterprise computing models in a way that makes information security as relevant as it is for online banking services. Though c loud computing has been applied to network security, it remains to be seen whether its architecture is an information trap that is ripe for misuse or exploitation. To provide secure services, cloud computing must address this issue at the following three levels:
How does cloud security work?
In the current networking environment, client-based Trojan checks are increasingly di scredi ted as a so lut ion. To check malicious codes, security vendors need a cloud computing platform where an inbuilt cloud security system pre-scans web pages and immediately informs the user of a page’s safety. The advantage of cloud security is its ability to scan all web pages using large-scale computing capabilities. For end users, the web is only one danger source; others include emails and USBs, though the cloud security system does not apply to users who do not wish to publish their personal information.
H o w e v e r , t h e c l o u d s e c u r i t y system has a fatal weakness–its over-reliance on transmission channels. User information and resources are handed over to the cloud for processing and transmission and security depends on the internal transmission channels. In order for cloud computing to unleash its potential, cloud service providers must work with broadband service providers to bui ld a broadband t ransmiss ion
a “search cloud” by prearranging and converging all available information on the Internet so that the user can quickly get the search result. The highly popular taobao.com centralizes and converges online stores to form a “cloud” market much in the same way that a traditional shopping mall converges physical stores. Moreover, if we converge video data collected from myriad video cameras installed on city streets to provide VOD, we can establish a “cloud view”.
Capability supply
What does a cloud bring us? To be called a cloud, it must supply computing and processing capabilities and share resources. In the early 1990s, we researched computing capability supply with a focus on presenting storage space and databases and interfaces for delivering their storage and search functions. Converged resources and computing capabilities are useless without a supply channel in the same way that taobao.com would be useless without a shopping platform to enable transactions.
Service model
The “as a service” (aaS) model is gaining popularity in the computing world. It is about services, not technologies, for users usually care about the services they are getting, not the technologies or resources involved. For example, we initially bought full-priced software and prepared necessary resources for it, no matter whether we would use it or not. Later, we shared software on the Internet at a lower cost without needing to prepare resources on the client though a fixed cost was still incurred for the usage over a certain period of time. With cloud computing, we can directly use the software function (the service) provided by the cloud even without knowing the software, on a pay-per-use basis without an awareness of the software involved.
Many similar applications exist to convert available capabilities and resources into the services required by users. Users care about software functions but not where the software is installed, which has spawned “Software as a Service” (SaaS). Equally, users are interested in storage
serves users through a central resource pool. Conversely, grid computing serves a limited number of users by concentrating the resources of mult iple channels . Despite their technical similarities, cloud computing is essentially a business model while grid computing is not.
A u n i f i e d i n d u s t r y s t a n d a rd o r definition of cloud computing is yet to be established. However, it is widely accepted as an emerging computing and business model instead of merely new technologies or products. This new model has promising potential for its capability of converging Internet computing resources.
Key elements of cloud computing
Cloud computing involves three key elements, namely, resource pooling, capability supply, and the service model. As a process, the cloud provider concentrates a mass of resources and seamlessly provides them for users. These three elements are described below:
Resource pooling
Various kinds of resources are converged to form a cloud. Though a revolutionary concept, this already exists in practice in various forms. Search engines construct
Dr. Fang Binxing, President of Beijing University of Posts & Telecommunications
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Editor: Xu Peng [email protected]
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system appropriate for cloud services. A recommended solution involves the integration of the cloud security system into telecom networks so that the former scans web pages and the latter sends risk alerts.
Is the cloud itself safe?
The cloud must be open to provide s e r v i ce . Opennes s usua l ly l eads to vulnerability, though. So it is a problem how to protect the cloud against attacks and ensure that the c loud provides services continuously. The recent system crash at Amazon web services, the cloud service provider, caused Twitter and other prominent websites to fail. If this type of crash causes loss of user data, users will doubt the security of cloud computing. Solutions may include backups and additional monitoring, both of which should provide vital areas for future research.
How does the cloud ensure user security?
In the cloud, the security level of user routines is not analyzed, nor is data copied, in order to protect business secrets and personal data of users. Cloud services can be widely used only when they are reliable. However, unlike investigating a retailer before buying products from it, cloud service users cannot check the reliability of a cloud because they do not know which part of the cloud is serving them. If users transmit encrypted data, the user routines will be ineffi cient.
The openness of a cloud may render it a malicious tool. Currently, harmful Internet activities require the control of the terminal. For example, phishing requires fake sites that look and feel almost identical to legitimate ones, and Trojans require network controllers. The cloud model opens up new possibilities for criminal and malicious behavior.
Economics of cloud computing
The rationale behind the cloud model and the idea behind resource provision is fl exibility. For example, a user requires 10,000 computers as nodes to work at a full load for a couple of months but for the rest of the year requires only 5% to 20% of these nodes. Such a user can apply for 200 to 1,000 nodes for normal operation and 10,000 nodes in the peak period.
To ensure security, some exist ing cloud systems provide exclusive private resources for users at certain costs that basically equal those required to own these resources. This solution obviously goes against the economics of cloud computing, making it unnecessary for users to apply for resources in the cloud. It remains a subject of debate and research whether this is in fact a cloud model.
system appropriate for cloud services.
security level of user routines
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Internet of Things
and its future
By Xing Zhihao & Zhong Yongfeng
Power companies read meters through tele-metering systems instead of visiting houses; doctors remotely monitor the conditions of their patients 24/7 by having the patients use devices at home instead of requiring the patients to stay at hospital; vehicle-mounted terminals automatically display the nearest parking space; sensors in smart homes turn off utilities, close windows, monitor security, and report to homeowners in real time. These are scenarios that only existed in science fi ction previously. With the coming of age of the Internet of Things, however, they are becoming a reality.
What is the Internet of Things?
lso called M2M standing for Machine to Machine, Machine to Man, Man to Machine, or Machine to Mobile, the
Internet of Things intelligently connects humans, devices, and systems. Considered as another IT wave following computers, the Internet, and mobile communications, it represents the pinnacle of our current ICT ambitions.
The ITU states that the goal of ICT is to connect all objects on the basis of networked individuals to form a ubiquitous network, which is called the Internet of Th ings. In layman’s terms, this network covers all everyday objects such as watches, keys, household appliances, cars, and buildings.
When embedded wi th ch ips and sensors, these objects can “think”, “feel”, and “talk” with each other. Together with the infrastructure of the Internet and mobile networks, these objects can communicate with humans, and enable
us to monitor and control them anytime anywhere and enjoy their intelligent service, making the idea of a “Smart Planet” a dream come true.
As for the goal of telemetry and remote management of distributed assets, M2M bears much similarity to the Supervisory Control and Data Acquisition (SCADA) system early on. Deployed in centralized control centers to monitor remote devices and assets, SCADA was widely employed in such areas as industrial automation, util ities, and energy. When the first SCADA systems were deployed in the
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absence of universally accepted standards and reliable public networks, however, engineers were almost forced to design and maintain proprietary wired/wireless networks and protocols, thus creating a series of rigid and closed communications infrastructures. In contrast, modern M2M technologies have been born under a totally different scenario:
1. The Internet and cellular networks have become a worldwide standard, with unprecedented levels of coverage, reliability and affordability;
2. Smaller and smarter “devices” are constantly hitting the industrial and consumer markets, making it easier to conceive and provide new after-sales and remotely managed services;
3 . So f t w a r e d e s i g n a n d s y s t e m interoperability standards like XML, web services and SOA are converging to create fertile ground for M2M communications technologies, making it easier to apply them hor i zonta l l y ac ros s d i f f e rent industries, with a much lower CAPEX versus the past.
Huge market potential
The Internet of Things is likely to have a staggering impact on our daily lives and become an inherent part of areas such as electricity, transportation, industrial control, retail, utilities management, healthcare, water resources management, and petroleum. It can greatly improve p r o d u c t i v i t y a n d o u r l i v e s . A n d unsurprisingly, its great market potential is attracting investments from governments, telecom operators, manufacturers, and industry users.
After becoming the President of the United States at the beginning of 2009, Barack Obama enthusiastically responded to IBM’s “Smar t P l ane t” concep t , positing new energies and the Internet of Things as the two major weapons for economic revitalization. Various countries subsequently developed their Internet of Things strategies in less than a year, including i-Japan Plan, Sensing China, and the EU’s Action Plan on the Internet of Things.
Since revenues from voice services
specific M2M applications such as its New Horizon series–Bank New Horizon, Ocean New Horizon, and Logistics New Horizon.
Internet of Things from a technical perspective
Technically, the Internet of Things integrates multiple wired and wireless c o m m u n i c a t i o n , c o n t r o l , a n d I T technologies, which connect various terminals or subsystems under a unified management platform that employs open and standardized data presentation technologies such as XML/web services/SOA. Its system functions include remote monitoring, automatic alarms, control, diagnosis, maintenance, global device management, and integrated, intelligent information services for users.
As an example of the system’s application po ten t i a l , equ ipment and sy s t ems monitoring pollution sources and discharges can be connected through wireless sensors deployed on-site. The data is sent through mobile networks to various environmental protection agencies and finally the State Environmental Protection Administration (SEPA) for total management.
Architecturally, the Internet of Things can be divided into the sensing, communication, management, and application layers.
Sensing layer
The sensing layer collects and gathers physical parameters such as the temperature, humidity, and air composition. It comprises: 1) field devices that have sensing, computing, and communication capabilities, like RFID labels and readers, cameras, the GPS, sensors and actuators, and 2.5G/3G/4G terminals; 2) field networks that are formed by interconnecting these devices.
The field networks used at the sensing layer include various short-range wireless network standards and more than ten field bus standards such as Modbus, Foundation Fie ldbus, CAN, and Prof iNet . It i s difficult to tell which standard is better, because every standard is applicable to a given scenario. As the Internet of Things spans various industries and a range of
cont inue to dec l ine , opera tor s a re ceaselessly looking for new growth areas. With the huge market potential and demand stimulated by immense traffic from trillions of connected devices, the Internet of Things provides operators with the means to expand their service portfolios and increase revenues beyond the pipe.
Internet of Things in China
China Mobile believes that Internet of Things services will attract hundreds of millions of subscribers. In 2007 the operator launched M2M services, which it consolidated with an operation center in Chongqing in 2008 to research and develop a national Internet of Things platform and M2M products.
It has s ince launched three M2M products: Car Service Link, Elevator Guardian, and Fire Control System, in addition to developing industry-specific solutions for logistics, electricity, finance, etc. So far it has deployed more than two millions of terminals as the interfaces for the Internet of Things throughout China, and the number is expected to increase by 60% or more in the next five years.
At the end of 2007, China Telecom began constructing an Internet of Things platform. Now nearing completion, the platform supports multiple types of terminals and systems, and integrates various service functions such as remote management, operation monitoring, alarm management, protocol adaptation, industry service access, and transparent data transmission.
Currently, the operator is preparing M2M service trials in Jiangsu, Zhejiang, Anhui, Fujian, Hubei, and Shanghai. Qi Qingzhong, Vice President of China Telecom’s Shanghai Research Institute, is convinced that operators will capitalize on the tremendous potential of the Internet of things for effective differentiated operations.
Though it has not put forward any specific concept for the Internet of Things, China Unicom has launched some sector-
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user requirements, the above systems will probably coexist in field network standards for a long time to come.
With the maturity of wireless sensor network technologies such as ZigBee in recent years, communication modules become more energy-efficient and cost-effective. Networks using these technologies do not need cables and support multi-hop routing, self-organization, and self-recovery. Moreover, their ease of deployment and maintenance is very suitable for connecting large number of field devices at the sensing layer.
The gateway, a core device for M2M applications, exists on the boundary of field networks, and comes with field network and IP WAN interfaces for forwarding data between field networks and various IP WANs. It also manages field networks and releases their management APIs to the remote management platform.
Now mult iple network types and systems exist in the field. To reduce network complexity and the costs for developing M2M applications, networks and sys tems need be c la s s i f i ed and hardware and software APIs standardized under a unified platform.
Certain applications require field devices at the sensing layer to be directly embedded with wired/wireless modules that can communicate through IP WANs and transmit the sensing data directly to the management hub rather than using a gateway.
Communication layerThe communicat ion l ayer i s the
information trunk for the Internet of Things. It consists of various IP WANs provided by operators, including wired networks (such as the ATM, xDSL, and fibers) and mobile networks (such as GPRS, 3G, and 3G+). Whilst wired networks use various underlying protocols at the communication layer, all upper-layer protocols are under the TCP/IP stack.
C o m p a r e d w i t h w i r e d n e t w o r k technologies, mobile technologies allow M2M applications to be deployed more flexibly. The advent of wireless broadband has accelerated M2M service development and promoted 3G networks a s the preferred medium for M2M applications.
Management layer
Integrating M2M and sector-specific technologies, the management layer is a solution set for a wide range of intelligent applications. As a management platform, this layer is integral to the Internet of Things architecture and industry chain, integrating management, control, and operat ions on terminals and assets , including mobile assets.
The management platform comprises the following software sets: integrated f r a m e w o r k s , I n t e r n e t o f T h i n g s middleware, industry suites, and industry application solutions. The middleware abstracts and implements the bas ic function sets of the management platform, such as network and device management, authent icat ion, author izat ion, and accounts (AAA) management , data management, and service management. The industry suites are a series of support models, tools, and service sets designed to address sector-specific requirements.
As the management platform controls the Internet of Things, operators take it as a foundation for development and deployment, and many have in place an operable platform. In turn, certain M2M software manufacturers have released
powerful middleware, industry suites, and even complete management platform solutions.
Problems and challenges
Applications for the Internet of Things are still at the promotional phase and have yet to move past enterprises. In China, though increasingly in demand in such areas as energy, industry, finance and security, M2M applications are mainly used in the electricity and transportation sectors, which account for 86.5% of all Internet of Things terminals available in China. The main hurdle against large-scale commercial use of the Internet of Things is the lack of standards and a mature business model.
Standardization and integration
Any large-scale service deployment needs to be f ramed wi th in a se t o f s t andards . The Inte rne t o f Things involves many manufacturers, spans multiple industries, and differs widely i n app l i c a t i on s c ena r i o s and u s e r requirements. Standardization has been sluggish, impacting large-scale commercial deployment of related services.
Uneven competition between different types of devices is affecting the overall quality of the applications. Terminal manufacturers and solution providers have to develop M2M applications ad hoc, which reduces efficiency. As most personal applications are standardized and customized, the expansion of M2M serv ices to indiv idual users wi l l be detrimentally affected if the terminals are not standardized.
The standardization for the Internet o f Th ing s invo l ve s the ho r i zon t a l common technical layer and the vertical industry application layer. The former c o v e r s c o m m o n c o m m u n i c a t i o n protocols at, for example, the carrier level; terminal description and service discovery mechanisms; and application data switching mechanisms such as technologies based on XML, SOAP, and web services. The latter covers terminals, communication protocols, and application
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In China, though increasingly in demand in such areas as energy, finance and security, M2M applications are mainly used in the electricity and transportation sectors, which account for 86.5% of all Internet of Things terminals available in China. The main hurdle against large-scale commercial use of the Internet of Things is the lack of standards and a mature business model.
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specifi cations.Fortunately, companies are beginning
to prioritize standardization. Peter Friess of the EU’s Networked Enterprise & RFID Unit requires that the EU should develop an Internet of Things standard that covers multiple layers including technology, operation, and services, and urges all member countries to develop an international standard.
In China, operators are aggressively p romot ing the In t e rne t o f Th ing s and deve loping re levant s tandards . Nevertheless, enterprises and organizations across industries need to contribute for this to be successful.
China Mobile has developed and upgraded the Wireless M2M Protocol ( W M M P ) a n d s t a n d a r d i z e d t h e communication protocols between GPRS terminals, the Internet of Th ings operation platform, and terminals’ communication modules. The operator requires that all GPRS data traffic related to devices should pass through the Internet of Th ings operation platform to encourage terminal manufacturers to use the WMMP for product certifi cation.
China Telecom is actively pushing household appliance manufacturers to s tandardize te rmina l inter faces , and will soon expand its partnerships to other terminal sectors for broader standardization. Now the operator is leading standardization for the interfaces between the home gateway and the Internet of Th ings management platform and those between the home gateway and collection devices.
A win-win industry chain
Th e industry chain for the Internet of Things is long and encapsulates module suppliers, device manufacturers, platform software providers, system integrators, ne twork opera tor s , and end use r s . Therefore, role division in software and hardware production need to be further optimized, and the roles and profi t models of all stakeholders in the industry chain must be accurately defined so that the potential can be fully tapped.
Operators, system integrators and service providers are seeking to maximize profits. Generally, operators are involved in M2M services either by leasing network capacity to independent M2M providers or by providing the services themselves, which i s more pro f i t ab l e . As mos t operators now provide pipes only, profi ts from M2M services are low. Realistically, a central role in platform construction and standardization is the only viable way out.
Further exacerbating developmental difficulties in China are the industry barriers, which force current users to develop their own solutions instead of using those off ered by specialist providers.
Development trend
Extending to individual and home users
Th e gradual establishment and improvement of a standards system will inevitably extend the scope of M2M applications and lower deployment costs so that such applications will become part of our daily life.
Th e Internet of Th ings and
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mobile networks
Theoretically, M2M services can be carried over various networks. Mobile networks are usually preferred for the deployment flexibility it provides for M2M applications. 3G mobile networks provide higher available bandwidth, which is a precondition for the quality of M2M services and stimulates data transmission demand.
Developing M2M services is a practical imperative for mobile operators who are mainly focused on data services on their 3G networks. In this view, the Internet of Things is in line with their 3G network development strategies.
Th e ubiquitous network
The In t e rne t o f Th ing s ex t ends communications beyond the traditional boundar ies . Refr igerators , washing m a c h i n e s , v e n d i n g m a c h i n e s a n d containers, previously considered as unrelated to communications, can now be networked with intelligent communication modules. As more devices are added into communication networks, ubiquitous networks will take shape and grow.
At the current phase of the Internet of Th ings, most applications are independent and deployed for specifi c users. With the development and maturity of distributed inte l l igent in format ion proces s ing technologies, Internet of Things systems will make intell igent sensing widely available through information sharing and collaboration. Th en, we will begin to move into a ubiquitous network era.
Editor: Pan Tao [email protected]
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By Qiu Huihui, from 21st Century Business Herald
Huawei, the front-runner in the 4G arena
hina has moved past its role as follower in the 2G and 3G eras and has taken an active part in the competition for 4G wireless
broadband standards. At the sixth meeting of the ITU Radiocommunications Working Party in Dresden on October 15, 2009, China’s TD-LTE-Advanced technology was listed as one of six 4G standard candidates. According to China’s Wen Ku, Director of the MIIT’s Science & Technology department, the nation’s domestically developed technology has already impressed and received support from the 3GPP and several major industry players.
On November 18, Huawei and Telenor signed a 176 million USD agreement that contracts Huawei to deploy a 4G LTE network for the operator. Involving 10,000 legacy base stations and extensive replacement and upgrades, the network is destined to become the largest commercial LTE network in Europe.
Ying Weimin, who heads the Huawei LTE Product Line, notes that Huawei is currently one of the front-runners in terms of LTE network deployment. “By the end of 2009, Huawei had deployed the most trial, pre-commercial, and commercial LTE networks in the world. For example, in 2008 we launched the fi rst trial network, and then commercial LTE network for TeliaSonera in Norway, which point to the fact that Huawei is six months ahead of our peers in 4G era.” Ying views late 2009 through 2010 as the critical time for LTE roll out, and states that companies who seize opportunities now will dominate 4G, especially with terminals such as iPhone sending data traffi c into the stratosphere.
In less than a year since 3G debuted in China, global 4G competition has picked up speed. ETSI statistics hold that by November 13, 2009, Huawei has applied for 168 patents, compared with 151 from
Nokia, 98 from Ericsson, and 9 from Alcatel-Lucent.
Prelude to the 4G era
The s ix 4G solutions unvei led at the ITU meeting in Dresden represent interests of nations and organizations from Europe, North America, Japan, Korea, and China, and cover two main categories. First, technical standards based on upgrading and converting IP technology, including IEEE 802.16m (WiMAX), and the 802.16 standard used in Japan and Korea; and second, LTE-Advanced technology based on upgrading conventional telecom networks, which subdivides into LTE TDD and LTE FDD, and is represented by Europe’s 3GPP, China, and Japan.
Generally, North American, Indian and some South East Asian operators from Malaysia, and Indonesia are following 802.16m, while China and Europe which has already developed relatively mature 3G services are focusing on LTE-Advanced technology. In turn, Japan and South Korea are balancing the two technologies.
The major supporters of 802.16m are the North American Internet giants, Google and Intel, and Cisco remains the major WiMAX player following Nortel’s nosedive. Conversely, most major vendors, including Ericsson, Nokia Siemens, and Alcatel-Lucent, are focusing on LTE-Advanced technology. In Korea, Samsung is treating WiMAX and LTE-Advanced technology equally. Although Chinese vendors are aiming to cover all major 3G and 4G technologies, most, like Huawei, are prioritizing LTE-Advanced technology. Nevertheless, in December 2009, the Global WiMAX Summit was hosted in Beijing to court Chinese vendors and
C explore the technology’s prospects in the nation’s 3G market, including mobile WiMAX for remote and mountainous areas.
China’s home-made LTE-Advanced technology is relying on the development of China Mobile’s TD network, the optimization of which began at the end of 2009. Th is followed on from the joint TD-LTE field tests conducted by China Mobile and Huawei in May 2009, and the progress has been 6 months ahead of other peers.
The early birds
In 2009, the use of data services over TeliaSonera’s network increased by 492%, powering a 60% increase in re lated revenues. Telenor and Telefonica also experienced a similar boom as part of a trend that will reverse the stagnant 3G market and encourage operators to expand their networks. Ying views that, “Operators’ network upgrades should support 3G to 4G evolution. For example, Telenor is upgrading its network to become data-centric, which is essentially LTE.”
Ying mentions that LTE and WiMAX do not compete as they use different frequencies. Given the existing 3G global layout, LTE will outshine other future technical standards, and is increasingly backed by the world’s leading vendors.
Ying expects that LTE deployment will accelerate in 2010 and that network construction will surge between 2011 and 2012. Although current trends show that the technical gap has narrowed from 4 to 10 years in the 2G and 3G eras to six months to one year in the 4G era, Huawei has taken the first vital step to gain a competitive edge.
Editor: Pan Tao [email protected]
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MEDIA INSIGHT
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PLAY my own wayBy Joyce Fan
he penetrat ion rate in the Pol i sh mobi le market i s a saturated 115%, which is split three ways between Polkomtel,
PTC and Orange. When the three major players were continuing their neck-to-neck competition for the first place of market share, a challenger appeared, PLAY, who stepped differently into the mobile arena in March 2007 with 3G services. Though PLAY had attracted around 5% of the market by Q2 2009, its impressive achievement rested with being the fastest growing operator of all new subscribers quarter by quarter and its leading position in new mobile broadband customer acquisition.
Mr. Hans Cronberg, CTO of PLAY, shares the fundamental success factor for start-up operators during the interview with COMMUNICATE–never try to copy what the existing players have done in the market, but try to find the new and eff ective solution.
A distinctive start off
Having deployed its 3G network first before aggressively pursuing GSM rollout when other operators were shying away from new construction of 2G network, PLAY’s initial foray into the mobile world was unconventional to say the least. Mr. Cronberg explains that “2G and 3G are fully complementary – this is reflected by the high growth we’ve enjoyed in the prepaid market and the large number of 2G handsets owned by our existing customers.”
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How to Operate
Though PLAY had attracted around 5% of the market by Q2 2009, its impressive achievement rested with being the fastest growing operator of all new subscribers quarter by quarter and its leading position in new mobile broadband customer acquisition.
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— Mr. Hans Cronberg, CTO of PLAY
We’ve deployed GSM at 900MHz above our UMTS network, to which we’ll later add new technologies; we already have SDR based radio in place. Still, we need more frequencies, but we can deploy LTE at 900MHz assuming cooperation with other operators and frequency sharing. There are so many possibilities!
3G opens the market
PLAY entered the market a rmed only with a 3G license. From this, the company built dense 3G networks that covered Poland’s major cities and small communities. Mr. Cronberg explains his 3G philosophy: “For PLAY, 3G is a key area that stimulates massive growth. Our mobile broadband service is highly successful and popular, and is even starting to compete with fixed broadband. Many customers in the big cities and small communities have found our services reliable and much more value for the money. In fact, in small communities we might even see faster take off because we offer the broadband connection in the most efficient way.”
“We’re confident that we’ll have well above 3 million customers by the end of 2009, with some 10% of them being mobile broadband customers and we also expect to see Smart Phones and other new devices take off. We recently released HTC Hero in Poland, our first Android based handset, and so far it’s been a big hit. Mobile broadband is growing faster than we expected and so now we’re evaluating introducing HSPA+ based services to raise both speed and quality.”
2G brings more opportunities
In December 2008, PLAY acquired license at 900MHz frequency and began an aggressive GSM network deployment progress. It has rolled out a GSM network on top of its UMTS network, which is covering 80% of the Poland’s population, at a pace of 1000 base stations within 4 months.
As other European operators are talking about the lifecycle and maintenance of GSM network, many industry insiders might question PLAY’s investment choice. Even though PLAY began with 3G, its network was still accessible to 2G phones, and the company offered 2G voice services through its partners’ 2G networks via a national roaming agreement. When PLAY continuously increases its customer base, it generated a bigger traffic in the national roaming network. And with the tens of millions of GSM phones available in the prepaid market, PLAY believes it is a very
big market to tap into. Mr. Cronberg bel ieves that GSM
primarily gives voice services with the data speed of EDGE. UMTS also provides cost-effective and high quality voice services for major cities. “Mobile broadband services have helped us attract voice customers through the optimum combination of UMTS voice in dense urban areas and wider coverage to smaller places with 2G at 900MHz frequency. It is a really good complement as voice services are more profitable than data. Also nothing stops us for turning it into UMTS 900 in the future with minimum additional investment.”
Mr. Cronberg further justifies PLAY’s 2G investment: “Our GSM network is paying for itself by the savings made in national roaming costs. In less than a year, we almost have recouped our 2G investment. Also, there’s nothing stopping us from acquiring new frequencies.”
New technologies, more possibilities
Due to their late market entry, challengers often lag behind established operators in terms of network scale, market share, and brand recognition. However, later GSM network deployment coupled with a dense UMTS network has provided PLAY with a more flexible network deployment strategy. A key differentiator in the company’s approach was deploying UMTS before GSM.
Mr. Cronberg remarks on the chasm that divides the established players and contenders in Europe. Unconstrained by a legacy network, PLAY can just use new technologies and focus on developing 2G, 3G, and HSPA+ services, whereas established operators are burdened with upgrading their networks and protecting legacy investment. “We’re growing rapidly. Our 2G network has given us several years’ growth capacity and we’re seizing a sizable market share with customers arriving at our door all the time. We’ve applied the latest distributed architecture base station, which has given us an easy to maintain, energy-lite network that’s far more efficient than the networks of operators who’ve been in the game since the 90’s.” Clearly, PLAY is enjoying an advantageous,
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Choosing the right strategy
PLAY wi l l mainta in i t s s t ra teg ic direction and advise other newcomers that, “The key thing for a challenger is to avoid copying others. Find new solutions that are more efficient, be open to innovation, and manage CAPEX and OPEX wisely.” He elaborates on PLAY’s corporate strategy: “We’ve tried to avoid becoming too big an organization. We wanted a select number of high quality employees with a challenger mindset. Overall PLAY has about 300 engineers doing internal IT, billing, network design, network cooperation, and network build-out, which is between a quarter and one-third of the average. In addition to the experience of my technical divisions, I think we’ve a common understanding that the most important thing is attracting customers. Without customers, we wouldn’t have invested heavily in the first year and entered the market at all.” Mr. Cronberg sums up his advice in a single sentence, “Get customers first, get them early, and bring something new to the table.”
Finding the right partner
Mr. Cronberg believes that since PLAY signed up with Huawei in 2006, the two have demonstrated the wisdom of PLAY’s strategy. Mr. Cronberg praises the efforts Editor: Gao Xianrui [email protected]
forward-looking position: “All our base stations have IP interfaces and we’re now testing backhaul transmissions over IP with Huawei. So, we’re very lucky, and our life is much easier than it might otherwise be. We’re not worried about existing investment as, from that perspective, we’ve nothing really to protect.”
PLAY’s UMTS network has laid a solid foundation for attracting broadband and voice customers and for future evolution. PLAY will deploy 3,000 Node Bs in over 600 villages and cities by the end of 2009, and is planning to extend its broadband reach to around several hundred more villages over the next 2 years. “Our UMTS network benefits from an excellent site infrastructure that can co-locate other new technologies such as LTE using existing 2100MHz frequency or after acquiring new frequencies in 1800MHz and /or 2600MHz. We’ve deployed GSM at 900MHz above our UMTS network, to which we’ll later add new technologies; we already have SDR based radio in place. So far, all these technologies are fit very well. Still, we need more frequencies, but we can deploy LTE at 900MHz assuming cooperation with other operators and frequency sharing. There are so many possibilities!”
A challenger’s wisdom
30
of Huawei: “Huawei has proved everyone wrong who doubted you. You have not only provided good technology but are even leading technology today. Your ability to really focus on strong R&D and on bringing unified technologies with All-IP strategy is being tremendous benefit for us. We were the first All-IP core network in Europe.”
He outlines the project details that particularly impressed him: “We finally rece ived the GSM l i cense on 10th December 2008; on the 12th Dec we signed the LOI with Huawei and on the 23rd we had 150 base stations in our warehouse which were flying from China. By the end of January 2009–remember we’re talking just 45 days after getting the license–we had delivered, installed, commissioned, and commercialized 300 base stations all over Poland. Within 4 months, 1,000 base stations were in place and today about 1900. That’s an outstanding achievement and was only possible with very strong cooperation. We broke all the records in Poland and everyone was surprised. Nobody could believe what we’d done. The project demonstrates the way in which base stations with distributed architecture can help customers build their networks extremely quickly and cost-effectively. The Huawei-PLAY partnership has been a phenomenal success.”
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Visualized IP network O&M
Visualized IP network O&M
An IP network needs to be measurable with visualized operations and maintenance (O&M) for sound management and critical improvements.
By Wang Libin
Three invisibilities
hree aspects are not visualized and reduce IP network O&M efficiency.
First, the quality of services carried on IP network is not visualized with an unsecured QoE. A traditional network management system (NMS) manages mainly the network performance instead of the service quality. As service and network depar tments can have different references for fault identification, cross-departmental coordination is needed for troubleshooting. It requires skillful staff members, yet work efficiency is often low as responsibilities are hard to clarify.
Second, routes and transmiss ion
Tpaths are not visualized. IP network features dynamic routing and the service transmission on Layer 3 is not visualized. During IP network O&M, maintenance staff have a hard time identifying faults even after customer complaints. The fault cannot be tracked through history records while the hidden fault needs to be resolved and data communication experts are needed to troubleshoot. Invisible routes can also cause route flapping, which can have a catastrophic impact on networks.
Third, end-to-end transmission is not visualized and hard to realize. An end-to-end tunnel is created by connecting d i f f e ren t domains w i th a complex configuration. The traditional single-domain NMS can not realize visualized and efficient service delivery, nor visualized
tunnels. During service deployment, engineers need to consider the parameters of each node and the relationship between them. If one parameter is incorrectly set, it is difficult to rectify and requires that the O&M staff have a high degree of skill and knowledge.
Changing to proactive O&M
IP network reliability can be ensured by changing from inactive to proactive O&M. Inactive O&M is used for troubleshooting after a complaint. IP network O&M requires operators to expose and prepare for potential network defects.
Proactive O&M monitors the end user s’ exper ience , and per iodica l ly
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fi nd solutions to IP network O&M issues.Newly developed by Huawei, the
U2520 is a service assurance system for IP network. Supporting broadband bearer, mobile bearer, and IP core layers, the U2520 consists of the service monitoring system and the network evaluation unit.
The service monitoring system can: monitor network and service quality, test on demand, plus manage alarms, probes, systems and reports. Th e network evaluation unit can be deployed at the network access layer and the convergence layer. The evaluation unit can collect the performance data of networks and services, and report the data to the service monitoring system.
The Huawei U2520 helps operators to have a much clearer picture of their IP networks and has the following technical advantages.
Visualized IP transmission platform: The U2520 can monitor the quality of services like IPTV, VoIP, HSI, and VPN to ensure end user QoE. By segmenting traffic by nodes and comparing service quality, maintenance personnel can defi ne their responsibility and perform timely troubleshooting. Having the same QoE indicators between the O&M department and service department can also help to defi ne service faults.
collects network performance and service data. Operators can also mine data to identify consumption trends for later marketing activities. By forecasting the potential faults and network defects, the end users’ experience can be ensured before service downgrades occur. With thorough preparation against potential threats, operators can lower the number of complaints and enhance loyalty while reducing O&M costs.
The necessity for proactive O&M is illustrated by the rising investment by operators on their O&M systems. A Gartner study indicates that “proactively p r e v e n t i n g n e t w o r k p e r f o r m a n c e problems” becomes the f i r s t dr iver of O&M investment among 27% of respondents. “Troubleshooting network faults faster” and “meeting application performance SLAs” rank second and third respectively with 15% and 12% of the respondents surveyed.
IP network O&M has three major requirements. First is fast troubleshooting. Once they happen, network and service faults should be quickly identified and solved. Second is proactive prevention to monitor network and service performance in real time to discover problems. By identifying the services to be impacted, the system can give an alarm in advance. Th ird is daily maintenance. By setting the systems for network quality monitoring and health evaluation, operators can use a set of KQI/KPI indicators to refl ect and monitor user experience and network status.
Management and improvement are based on measurements . Visual ized IP network O&M is measurable and definitely helps to solve and prevent problems.
The U2520: IP network’s dashboard
There are many ways to manage IP network. Network stability and rich service bearing are ensured by visualized O&M, close QoE monitoring and service-centric operations. Huawei is a pioneer in visualized IP network O&M that spans IP service quality, routing and deployment. Huawei is committed to helping operators
Visualized IP control platform: The U2520 automatically calculates and displays the transmission routes of IP services, monitors and analyzes route changes, and prevents network faults caused by route flapping. Then, maintenance personnel can quickly analyze, locate and rectify faults in the IP network.
With visualized IP transmission and control functions, the U2520 can test service packets as well as the transmission paths. If the transmission path of a Layer 3 service changes, the U2520 can fl exibly adjust the test for automatic monitoring. Once service transmission quality worsens, an intelligent diagnostic system will be triggered to identify the cause and give troubleshooting suggestions. With enhanced efficiency, the U2520 can help to achieve SDH-like O&M for IP networks and with enhanced QoE.
Th e U2520 provides complete network performance indicators and a health evaluation system, enhancing O&M capability by providing valuable references. By analyzing indicators, maintenance personnel can solve problems and fi nd the root cause, while preventing human errors and enhancing O&M efficiency. The U2520 can also provide entire network monitoring and adapt to various networks that accommodate equipment from diff erent vendors.
Partnered with the U2520, the Huawei U2000 NMS pools the service parameters. With the U2000, operators can create E2E services with one mouse click, dynamically configure service parameters and manage the logical relations between parameters. The U2000 can automatically detect configurations and connectivity while confi guring services and NEs in a unifi ed manner. Other functions include: VPN-based E2E service delivery, visualized E2E operations and visualized service transmission.
After being launched in the third quarter of 2009, the U2000 has been warmly welcomed in the marketplace and selected by over 30 major operators, including Vodafone, Deutsche Telekom, China Mobile, China Unicom, France Telecom, Telefonica, and Swisscom.
Newly developed by Huawei, the U2520 provides complete network performance indicators and a health evaluation system, enhancing O&M capability by providing valuable references. By analyzing indicators, maintenance personnel can solve problems and fi nd the root cause, while preventing human errors and enhancing O&M effi ciency.
Editor: Xu Peng [email protected]
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Make the best of WiMAX for broadband
0
7 6.75
Global population
Based on research published by Informa Telecom & Media, 2009
Internet subscribersCellular subscribers
Subs
crib
ers
in b
illio
ns
Broadband subscribers
4.05
3.5
0.5
5
6
4
3
2
1
Fig. 1 Broadband has fewer subscribers than the Internet and cellular system
Increasing bandwidth demand and sluggish broadband network development present issues but also a great opportunity for broadband network construction and WiMAX development. Presently, the most important elements of a WiMAX business model are the market segmentation strategy and deployment strategies for both service and network.
By Qi Rui
Make the best of WiMAX for broadband
New opportunities in the broadband market
nternet applications are shifting from l ight-traff ic services l ike texting, email and chatting, to bandwidth hungry services like
video streaming and online gaming. People want increasingly higher bandwidth, but network development is lagging behind demand.
By the end of 2009, the number of worldwide broadband subscribers was less than 500 million or one-seventh the number of Internet subscribers. It is predicted that by 2020, global broadband connections will reach 4 billion, meaning that there will be 3.5 billion new users in
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US-based Clearwire and Yota in Russia, have launched multimedia websites tailored to WiMAX broadband access with exclusive news, entertainment, and social networking space for subscribers. For WiMAX operators temporarily unable to build their own platforms, cooperating with content providers can also help to cultivate user habits and enhance stickiness.
Enterprise subscribers
It is more practical for some enterprises to use wireless instead of wired access, such as small representative offices of multinational companies, the remote w o r k s t a t i o n s o f e n e r g y o r p o w e r companies, and remote schools and hospitals. These enterprises also require high network stability and WiMAX is fully stable and flexible in serving enterprise subscribers.
C o m p a r e d w i t h o t h e r w i r e l e s s technologies, WiMAX distinguishes itself in the QoS mechanism, enabling end-to-end QoS guarantees and allowing WiMAX to fully support carrier-class enterprise LANs. A WiMAX-based enterprise VPN provides reliable broadband services, IP Centrex, and video conferencing.
Traveling subscribers
Statistics from the World Tourism Organization show that there are 800 million person-times of international travelers every year starting from 2005. If family and enterprise subscribers are fi xed assets, travelers are liquid assets and a lucrative source of profi ts for operators.
Travelers use the Internet in many ways that WiMAX operators can cater to. Travelers traditionally would send an email home after they arrive at their destination. With the popularity of digital cameras and camcorders, travelers share photos and video clips by email or in their blogs; social networking sites like Facebook and Twitter also accelerate this trend.
As millions of travelers frequently update pictures and videos on the Internet, WiMAX i s a l l se t to meet the h igh traffic and bandwidth requirements, plus provides wireless access to allow travelers
technology.With rich frequency resources, WiMAX
provides a stable connection for heavy-traffic services and features low cost, fast deployment, quick service launch and quick return on investment (ROI).
Other benefits include: higher ARPU because WiMAX provides a high access rate and rich QoS levels, resulting in higher tar i f f s . Second, the pr ice of WiMAX terminals is coming down. Third, the WiMAX frequency spectrum is cheaper in most countries, less than 1/3 the price of a 3G license with the same frequency bandwidth. In Europe where 3G licenses were quite expensive, a WiMAX license now is priced about 1/1000 of an original 3G license. In addition, most countries generally have looser regulations on WiMAX licenses compared to 3G and WiMAX licenses are easier to get.
These advantages greatly shorten the ROI time for WiMAX. Most WiMAX operators expect to become profitable in three to fi ve years and sometimes only two years in favorable markets. By December 2009, 519 WiMAX networks had been deployed in 146 countries, with more than 4 million WiMAX subscribers. A large number of new WiMAX operators are emerging all over the world and most are performing well in their markets.
For operators, good business models are the basis for success. Presently, the WiMAX business model contains two key elements: market segmentation and service and network deployment.
Segmentation strategy
Target subscribers for WiMAX are those requiring multimedia services with high bandwidth and traffi c. Operators need to analyze their needs and launch customized services while cultivating new user habits.
Home subscribers
Research shows that homes are the favorite place for Internet usage with over 50% of subscribers accessing the web at home and the multimedia Internet is gradually replacing the text-based Internet.
Leading WiMAX operators, such as
the next ten years, or an average increase of 350 million each year. The growing subscriber base wil l result in higher bandwidth Internet traffic and the slow broadband network construction actually provides promising opportunities for both operators and WiMAX development.
HSPA and WiMAX are two major options for mobile operators to develop data services. As most HSPA networks are integrated with legacy GSM systems, subscribers are inherited. Th is puts HSPA in an advantageous position, but limits its ability to support heavy-traffic services. A large subscriber base requires high bandwidth Internet service, while HSPA with limited frequency bandwidth can hardly meet the requirements. As a result, WiMAX emerges as the best supplemented
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to send experienced engineers to evaluate whether subscribers are in the coverage area, and then test signals to identify workable terminals. If the signal is weak, operators need to deploy an outdoor CPE or antenna by choosing the location, antenna angle and with complex engineering. The entire process is labor intensive, requiring skilled and experienced engineers, vehicles and specialized tools.
If no seamless network coverage is provided, it is difficult for subscribers to access WiMAX services, while QoS and user experience are degraded. In this context, operators may lose more than they saved by not investing in equipment at the beginning.
Analysis shows that, if operators can provide a seamless WiMAX network connection, they can develop between 150,000 and 200,000 subscribers within two years, while gaining profitability within three years. In a WiMAX network without a seamless connection, less investment and slow subscriber acquisition, it would take five years to become profitable.
Differentiated packages
WiMAX has high bandwidth and with up to a 45Mbps theoretical rate in a single sector, it can provide broadband services at different rates. By combining various payment modes and service rates, operators can then create diversified packages for different subscribers.
Take home broadband as an example. Operators can classify the home subscribers into high-income and low-income residential areas. Subscribers in high-income areas generally consume more, have more disposable income and are less sensitive to prices, but they want fast speeds and stability. Subscribers in low-income areas consume less and are more sensitive to price, but also more tolerant of low-rates and unstable services.
This allows operators to design two packages. For subscribers in high-income areas, operators can provide discounted high-bandwidth packages with the requirement of signing up for long term service packages of six months, a year, or even two years. For subscribers in low-income areas, operators can offer monthly packages with lower bandwidth, or allow several homes to share one WiMAX terminal to save money and share bandwidth.
Differentiated service packages fully use the flexible broadband capabilities of WiMAX. By combining various tariffs with payment modes, operators can maximize WiMAX advantages, attract subscribers and nurture greater profits.
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Make the best of WiMAX for broadband
Editor: Wang Hongjun [email protected]
to easily surf the web.
Niche market
WiMAX-based streaming media and video surveillance have great potential in areas such as distance education, medicine, emergency communications and monitoring of property, personnel or children. These applications are usually used by government units, schools, and oil and power companies. These customers using WiMAX are an important source of generous profits and also a source of good word of mouth advertising.
WiMAX deployment strategies
The deve lopment of Yota and Globe in the Philippines shows that attracting a sizable subscriber base within the shortest possible time and at the lowest cost, is of prime importance for operators. The ability to quickly develop a subscriber base is at the core of a successful ROI model and sustainable development; it is also the key to profitable WiMAX networks and service deployment strategies.
Focusing on dense urban areas
WiMAX operators that have had sound development in 2009 have targeted densely populated areas like residential communities, commercial areas and industrial zones.
In these areas, WiMAX often faces competition from ADSL or HSPA. However, dense urban areas have a huge service potential and some services lag behind market demand. Compared with ADSL and HSPA, WiMAX can be flexibly deployed, provide high bandwidth and supplement other technologies, making WiMAX services more likely to succeed in dense urban areas rather than in suburban areas.
Seamless coverage
After choosing the target area, operators need to deploy networks with seamless coverage.
With seamless coverage, operators can develop subscribers quickly without wasting time and resources on number allocations. Seamless coverage requires a larger number of base stations and more investment, but it is worth it in terms of quickly cultivating subscribers.
Non-seamless coverage saves base stations and investment, but brings other issues. Operators need
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Get ready for 900MHz refarming900MHz refarming solutions based on Huawei’s SingleRAN let operators use the GSM frequency to quickly deploy a low-cost UMTS network with wide coverage. Users get seamless 2G and 3G services with two networks integrated on the same platform.
900MHz refarming: a growing trend U M T S n e t w o r k c a n b e
constructed in the GSM900 frequency band at a lower cost with better coverage than a
UMTS2100 network. According to radio wave propagation
features, radio signals are transmitted farther at a lower carrier frequency and allow one site to cover a wider area. Th is makes the UMTS900 an excellent wide coverage solution. Therefore, investment for mobile networks goes down as wider coverage per site means fewer sites.
Second, the UMTS900 network is better for indoor coverage and has better network coverage performance. Low-frequency carrier signals suffer less loss when penetrating building walls. Thus, with a UMTS900 network quality of
service (QoS) is improved and better user experience enabled.
When const ruct ing a UMTS900 network, operators can protect their investment in the original GSM network by reusing infrastructures like the antenna and site.
However, due to limited spectrum resources on the GSM900 band, most operators cannot provide a complete 5MHz frequency band to bui ld the UMTS network. In addition, the existing GSM900 network has accumulated a large subscriber base and is an important source of profits for operators. This is why the GSM/UMTS 900MHz refarming solution was proposed in the hope of constructing low-cos t UMTS900 networks wi th wide coverage and implementing joint networking between UMTS and GSM networks while ensuring the continuous capacity expansion and QoS of the GSM network.
Due to the advantages of a UMTS900 network, increasingly more countries have begun to formulate policies regulating the deployment of 3G networks on the 900MHz band.
The EU passed a new resolution on July 27, 2009, approving refarming the 900MHz band and requested that its member countries enforce the bill within six months to drive the development of the 3G mobile communications industry. 900MHz opera tor s can u t i l i ze the frequency for any technology, at their own discretion, without license restrictions.
SingleRAN based refarming solutions
When performing 900MHz refarming, operators need to address the following four key issues: 1) The interference between GSM and UMTS networks must
A
By Li Chunlin
FEB 2010 . ISSUE 54
Solution
be minimized; 2) Feeder and Antenna sharing to protect existing investment; 3) Guarantee of GSM network capacity enhancement and continuous development; 4) Unified operation and maintenance of the two networks to reduce OPEX.
As a leading Next Generation Mobile Network solutions provider, Huawei has launched innovative SingleRAN solutions based on 4th generation base stations. Huawei then releases its end-to-end commercial SingleRAN based refarming solutions, which effectively address the four key issues above.
GSM/UMTS site sharing solution
For GSM/UMTS joint networking, two scenarios can be applied: site sharing and non-site sharing. As the coverage radius of a UMTS network is larger than that of a GSM network, in the non-site sharing scenario, the number of UMTS sites can be reduced and equipment investment thus less.
This also has some disadvantages. First, sites are not shared and network deployment cannot be performed as per the original cellular structure. The original GSM site resources cannot be completely utilized, which will give rise to a large number of new sites and cost more for auxiliary equipment. Second, when the GSM and UMTS networks do not share sites, the interference between GSM and UMTS networks will increase.
In the site sharing scenario, interference between GSM and UMTS networks i s reduced, and operators do not have to construct new sites, saving money on auxiliary equipment. By adjusting the transmitted power of the UMTS network, the GSM coverage area and that of UMTS networks may be basically the same. When antennas are not shared, by adjusting the downtilt angle and azimuth, each network can achieve the best coverage performance.
The Huawe i S ing l eRAN based 900MHz refarming solutions can effectively meet the site sharing requirements for GSM/UMTS joint networking. Also, the GSM and UMTS networks can use the same RF module through software upgrades and cut equipment costs.
Adjacent frequency guard band solution
Huawei SingleRAN based frequency refarming solutions mainly support two types of frequency allocation: edge-type and sandwich-type allocation.
Figure 1 shows the edge-type GSM/UMTS frequency allocation method.
Frequency gap (f1) between the GSM band edge and the center of the UMTS band can be configured based on the gap requirement of the product. For f2, the frequency gap with other carrier’s band must
be no less than 2.6MHz. If less than 2.6MHz, the other carrier’s GSM network, given its unknown RF performance, may interfere with the UMTS network, especially when the system is used on the Broadcast Control Channel (BCCH) or Packet Data Channel (PDCH). Since the power control is disabled, more interference will be generated on the UMTS.
For the frequency gap f1, Huawei SingleRAN based 900MHz refarming solutions support a minimum bandwidth of 2.4MHz in urban areas and 2.2MHz in rural. For the frequency gap f2, if the adjacent frequency is idle, the solutions support a minimum bandwidth of 2.5MHz. If the adjacent frequency is occupied as other carrier’s GSM band, the bandwidth spacing must be no less than 2.6MHz.
Figure 2 shows the sandwich-type GSM/UMTS frequency allocation. Within the carrier’s frequency band, the UMTS frequency is placed in the middle, with GSM frequency band on its two sides. The frequency gap between the center of UMTS and the GSM on its two sides, is equal and can be configured based on the gap requirement of the product.
If f1 and f2 are equal and both are less than 2.6MHz, the frequency bands on two sides of the UMTS can share spectrum resources with the GSM system. Compared with edge-type allocation, this method doubles the number of the GSM carrier spectrums.
According to sandwich-type allocation, the UMTS carrier spectrums can be placed anywhere within the spectrum of the operators (not necessarily the center of the spectrum). This can be determined based on the operation strategies of the operators. For example, the carrier may split some spectrums in the future to obtain 2 UMTS bands, which can reduce subsequent UMTS frequency adjustments.
For the frequency gap of f1 and f2, Huawei SingleRAN based 900MHz refarming solutions support a minimum bandwidth of 2.4MHz in urban areas and 2.2MHz in rural.
Co-frequency buffer zone solution
When the UMTS and the GSM networks use the same frequency band, the signal of base stations or terminals in one system falls within the reception area of the other system. This interference cannot be suppressed by the receiving filter. Instead, only an appropriate frequency buffer zone can be set between the two systems within the same frequency band to accelerate attenuation of the interfering signal and guarantee normal operation of the two systems.
For this purpose, Huawei has developed an innovative co-frequency buffer zone solution, resolving co-frequency interference between two
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Get ready for 900MHz refarming
Huawei Communicate
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maintenance costs.Fourth, the improvement of network
p e r f o r m a n c e a n d t h e s u s t a i n a b l e development of the GSM network can be assured.
Huawei has independently developed a series of technologies for interference pre-elimination and interference reduction. They can effectively improve network performance, increase network capacity, enhance spectrum utilization efficiency, improve user experience and increase revenues. Consequently, the capacity and quality of the GSM network can be improved despite limited spectrum resources.
The tight frequency reuse solution from Huawei, together with the optimized channel allocation policy, can effectively reduce and suppress network interference, increase system capacity by up to over 200% with limited frequency resources and guarantee voice quality of the entire network. This is especially helpful in scenarios with low network capacity, high traffic and an insignificant improvement from frequency hopping.
Commercially mature environment
systems. The solution has been put into successful commercial use by Optus in Australia.
Bringing multiple values
Huawei’s SingleRAN based 900MHz refarming solutions bring value in four major ways:
First, they optimize the RF fi lter of base stations and use an advanced algorithm to provide frequency refarming solutions for small frequency spacing in various scenarios minimizing the impact of the UMTS900 on existing GSM by making full use of scarce 900MHz frequency resources.
Second, by adopting SDR technology, Huawei SingleRAN-based 900MHz refarming solutions enable the GSM and UMTS to output signal on one power amplifier and share antennas naturally, reducing the network construction costs.
Third, with the Huawei SingleRAN based 900MHz frequency refarming solutions, GSM and the UMTS networks are fully integrated on the same hardware platform. Co-RRM (co-radio resources management), Co-O&M (Co-operation & maintenance), and Co-RNP/RNO (Co-radio network planning/radio network optimization) are realized with software, consol idat ing the two independent networks to allow users to enjoy high-end 2G and 3G services without a hitch.
By us ing GSM/UMTS Co-RRM, radio resources of various standards can be fl exibly allocated, with channel allocation, power control and handover policy under various standards optimized based on service and capacity requirements to maximize the utilization of radio resources.
Wi th GSM/UMTS Co-O&M, a unifi ed operation & maintenance interface, configuration control commands, as well as normalized measurement reports and statistics reports can reduce the complexity and cost of maintenance. With the GSM/UMTS Co-RNP/RNO tool, planning and optimization of the GSM and UMTS networks can be carried out in a unified way to improve the accuracy of network planning, and boost construction of high-quality networks, while reducing
Th ree vendors in the industry, including Huawei, have successfully developed a commercial UMTS900 network. So far, Huawei has constructed and released more than three GSM900/UMTS900 SDR commercial networks. Ten UMTS900 networks in the industry have been put into successful commercial use and at least 60 UMTS900 networks are being planned or deployed in 2010.
Terminal vendors are speeding up the R&D and manufacturing of UMTS900 terminals. According to a survey by Global mobile Suppliers Association (GSA), 34 terminal vendors in the world have released 190 UMTS900-HSPA terminals, including 118 UMTS900-HSPA mobile terminals and 39 USB dongles. Routers, PC cards and built-in modules that support the UMTS900 have also been commercially released and all UMTS900 terminals support GSM/EDGE functions.
In Europe, Middle East, Africa and the Asia Pacifi c region, the UMTS900 is becoming a standard terminal frequency.
Growing mobile broadband service demands, deregulation of telecom policies on 900MHz, as well as the launch of a large number of terminals means that increasingly more UMTS900 frequency refarming networks will be operational.
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GSM systemGSM system of other operators
GSM system GSM system
UMTS system
UMTS system
f1
f1
f2
f2
Fig. 2 Sandwich-type GSM/UMTS frequency allocation
Fig. 1 Edge-type GSM/UMTS frequency allocation
Editor: Liu Zhonglin [email protected]
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Solution
Precision network planning for green mobile networksPrecision mobile network planning helps operators optimally allocate network resources, reduce power consumption, enhance network performance, and build efficient, eco-friendly mobile networks.
By Yang Bo
Precision planning and coverage on demand
adio network planning usually employs 3D digital maps to ident i fy l and use prof i l e s , ranging from densely-populated
urban and factories to open land and rural area. However, a limited accuracy of around 20m coupled with map makers’ patchy knowledge of local terrain tends to cause errors, such as clutter and size.
Huawei has solved these problems with its Visual Aid Planning system, integrating highly accurate 5m resolution satellite
unnecessary sites, curtail site survey costs, and reduce power consumption.
Two complementary clouds
Broadband networks have to meet the high-speed data service requirements of specific user groups as well as the general requirements of subscribers. For example, greater network resources are demanded in top-grade office buildings, high-class residential areas, large shopping centers, airports, galleries, and coffee shops. As conventional macro-cell networks are failing to cater to high use areas, Huawei has proposed the “Two Clouds” concept, comprising the continuous cloud and the high speed cloud.
The continuous cloud targets average user groups and aims to meet their data service requirements through the wide coverage capabi l i t ies of high power distributed BTSs or macro BTSs. The high speed cloud is designed to meet higher level usage and is typically deployed in densely-populated urban areas and comprises low power micro BTSs, such as Pico, ePico, and Home AP, that cover narrower areas,
The two clouds complement each other by combining low and high power BTSs, which significantly reduces network power consumption and greatly improves throughput perception and network coverage quality.
images and visual environments, such as Google Earth Pro, with the Huawei network planning software, GENEX U-Net. The solution’s output can be displayed on traditional digital maps in a visual environment setting, vastly increasing coverage prediction accuracy.
Combined with Huawei’s Smart Cell Planning module, the system dynamically adjusts cells’ azimuths and downtilt in line with clutter definition and provides recommendation for transmission power and network installation.
The Visual Aid Planning method precisely identifies the network coverage area and target, which helps operators eliminate
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Precision network planning for green mobile networks
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Editor: Liu Zhonglin [email protected]
Optimized network resource allocation
T h e H u a w e i S i n g l e R A N C o -RNP&RNO (Radio Network Planning and Radio Network Optimizat ion) solution uses a unified tool platform to collaboratively plan and optimize multiple networks, such as GSM and UMTS. The solution optimally allocates network resources and requires just one team.
Col laborat ive coverage p lanning provides an area-specific coverage mode to achieve seamless network coverage with adjacent networks, save site resources, and avoid wasted additional investment. Collaborative capacity planning tailors service strategies to different user groups, wh ich e f f i c i en t l y u t i l i z e s ne twork resources and maximizes network capacity. Collaborative quality planning optimizes network parameters to promote inter-system cooperation, improve network KPIs, and boost user experience.
The solution incorporates an analytical platform that serves to assess status and then optimize the per formance of multiple networks. Collaborative Radio Resource Management (Co-RRM) effectively identifies inefficient resource use and balances traffic to avoid congestion. Collaborative interference analysis can analyze and thus reduce network interference to avoid issues such as excessive power transmission of wireless network and increased power consumption by mobile phones.
Reducing power use with multiple technologies
transfer excessive UEs from an overloaded cell to low-load cells based on a specified load limit. Doing so reduces the access rejection rate and increases system capacity.
Interference Control and Interference Coordination (ICIC): Coordinates different edge bands between neighboring cells to reduce inter-cell interference. ICIC raises the throughput of cell-edge UEs by up to 20%, thus improving user experience.
Intelligent Combiner Bypass
Intelligent Combiner Bypass technology can reduce power consumption by about 30% in low traffic cases.
For heavy traffic, half the power (3dB) in a double-density module is lost after a combiner subsumes two carriers. The Intelligent Combiner Bypass configures one carrier to support traffic when traffic is low. Power Booster technology configures a double-density module–such as DTRU, DRFU, and DRRU–as a single-carrier module. After modulation and digital-to-analogue (DA) conversion, RF signals enter the power amplifier by two outputs, and are then combined. This kind of combiner amplifies double signal power as the phases of the two signal outputs are fully aligned. In this way, Intelligent Combiner Bypass technology significantly reduces the power used by BTSs whilst keeping the same transmission power.
Distributed BTS
The Distributed Base Station system innovated by Huawei allows RRUs to be mounted close to antennas, which nearly doubles antenna output power and significantly increases network coverage. The number of BTSs required is reduced by around 30% and power consumption is cut by between 30% and 40%. In addition, distributed BTSs do not require an equipment room, which realizes a zero footprint, and reduces the requirements on feeders and tower mounted amplifiers.
In 2007, Vodafone reported that its legacy BTS in Spain consumed around 925W to yield 20W to antennas. The new Huawei BTSs use just 480W to produce 40W at the top of cabinet, meaning that each BTS annually saves an average of 3.9MWh.
Power sharing
Statistics show that the power used by radio-frequency (RF) elements accounts for around 40% of the tota l power consumption in a site. Multi-Carrier Power Allocation/Power Sharing (MCPA) technology can improve coverage by 8% to 20%, with a given static output power from the power amplifier.
The following table shows the power and coverage improvements in cells (S3 and S4) each with one multi-RF unit (MRFU) when MCPA is deployed.
Self-organizing Network
The Self-organizing Network (SON) solution curtails OPEX, the CAPEX incurred by network p lanning and optimization, and the carbon footprint of networks. Huawei has allocated considerable resources to SON development and has already commercially launched its solution.
SON mainly provides the following features:
Auto Neighbor Relat ion (ANR): Automatically discovers neighboring cells to minimize missed cells, maximize handover success, and reduce the time locating neighboring cells and the power consumption of mobile phones.
Mobility Robust Optimization (MRO): Reduces abnormal handovers by balancing premature and delayed handovers. The MRO forward or reverse adjusts the Cell Individual Offset (CIO) in line with the delayed/premature handover ratio, and can also adjust the A2 threshold in an inter-system environment.
Mobil ity Load Balancing (MLB): Negotiates with neighboring cells and modifies relevant mobility parameters to
Table 1 BTS power and coverage improved by MCPA
TRXs 3 4
Static Set-top Power 27W / 44.3dBm 20W / 43dBm
Dynamic Shared Set-top Power 31W / 44.9dBm 27W / 44.3dBm
Power Increase 0.6dB 1.3dB
Coverage Radius Increase About 4% About 9%
Coverage Area Increase About 8% About 18%
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SolutionCooperative development strategy of 3G and WiMAX
Cooperative development strategy of 3G and WiMAXDeveloping 3G and 4G networks such as WiMAX cooperatively can improve network resource allocation, boost wireless broadband network popularization and give users a superior experience.
Opportunities for WiMAX
G technology is popular in many mobile broadband markets, especially regions that cannot be covered by ADSL or other wired technologies and 3G is preferred by broadband network users.
Yet, 3G also has some development bottlenecks like spectrum resource acquisition and balancing cost and operational revenues.
As one of the main commercial 4G technologies, WiMAX picked up in 2009. Many GSM operators began shifting their attention to WiMAX. Even GSM operators with 3G licenses or services began to deploy and launch WiMAX networks.
WiMAX technologies and 3G technologies, instead of competing or conflicting with each other as some used to think, actually are complementary to each other. In the foreseeable future, these two technologies will coexist for a long time as part of strategic deployment plans.
Challenge for 3G
What’s behind network congestion?
In a densely-populated Latin American country, 3G services developed rapidly and thousands of base stations were deployed in a short period in major cities. Advertisements were everywhere and service subscriptions flooded in. Most subscribers enjoyed fast web access and smooth data downloads. Yet, with the subscriber base continuously expanding, there was serious network congestion with increasing inter-subscriber interference, higher packet loss ratio and declining network speed.
At the initial deployment stage, the service peak appeared in suburban areas instead of densely-populated urban areas as expected. Radio network controllers (RNCs) cover around 1,800 subscribers in suburban areas, but only about 600 subscribers in densely-populated urban areas. More surprisingly, the required average data speed was merely 300Kbps in densely-populated urban areas, while in suburban areas it was
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By Li Guodong
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up to 700Kbps. The overall throughput in suburban areas was 6 times higher than that of densely-populated urban areas.
This was because highly-populated urban areas had abundant cable resources, and people there preferred network access via ADSL or cables to wireless network access. So the wireless subscriber base was smaller and the average data speed was lower. In contrast, people in suburban areas which were not covered by cable could only choose wireless broadband networks, resulting in network congestion.
Operators launched their 3G network capacity expansion strategies to alleviate the shortage of air interface and channel resources. After the first round of network capacity expansion and optimization, the subscriber base increased and the pattern of subscriber and traffic distribution changed.
The subscriber base in densely-populated urban areas expanded from 600 to 2,200, and in suburban areas grew from 1,800 to 4,800. But unexpectedly, while the average data speed in urban areas increased from 300Kbps to 500Kbps, the suburban areas dropped from 700Kbps to 300Kbps. Despite similar throughputs in urban and suburban areas, the experience of subscribers in suburban areas had become worse and the existing capacity of the system was dangerously close to its limit.
Limitations of 3G solutions
3G solutions are developed to meet the mobile data access requirement and indeed have strong advantages in this aspect. However, in actual network operations, 3G subscribers include a large group of fixed or nomadic subscribers whose data demands are dozens of times higher than those of mobile subscribers. This is why network capacity is evenly distributed, while subscriber demand is not evenly distributed after network capacity expansion.
This fully shows that 3G service has not yet won the really valuable subscribers. In countries with low broadband penetration, fixed or nomadic subscribers with a high demand for data service are willing to pay a premium for data access and show strong loyalty.
From a technical perspective, 3G technology is developed based on the
5MHz bandwidth. More sites or frequency resources are needed for further network capacity expansion. When adding new sites, operators will face difficulties acquiring sites, especially in regions where many already exist. Meanwhile, the decreasing coverage radius of base stations will result in more interference, which will seriously threaten network planning and accelerate saturation of system capacity.
If operators apply for more frequencies, frequency resources can be wasted in certain areas, such as densely-populated urban areas. Moreover, each country has limited 3G frequency resources. Without sufficient frequency resources, subscribers get a low quality experience plagued by network congestion and as a result, tend to unsubscribe from 3G services.
3G and WiMAX: a successful combination
Operators can use WiMAX to attract high-throughput subscribers, meeting their requirements for massive-scale data access, while constructing a 3G-based mobile broadband network. In this way the combined advantages of WiMAX and 3G technologies can be fully leveraged. With one 3G frequency band, high-quality, nationwide mobile broadband data services that allow for roaming can be enabled. The 30MHz WiMAX frequency band can help facilitate high-speed downloads in high-traffic areas and prevent network congestion. This synergy leads to markedly improved service and overall customer satisfaction, which is obviously to the benefit of operators.
First of all, operators do not need to acquire new sites when using the base station integration technology developed by Huawei. WiMAX base stations can be integrated with 3G or GSM base stations, substantially reducing the space required for installation. The Huawei integrated base stations can also share transmission, power, towers, and other site resources which will lower the TCO.
Second, the 30MHz bandwidth of WiMAX networks, compared with the 5MHz bandwidth of 3G networks, is much easier and cheaper to acquire in terms of
spectrum acquisition. For example, in India, the WiMAX spectrum acquisition cost per Hz is just a quarter of the 3G spectrum acquisition cost per Hz and a WiMAX network provides 250MHz of bandwidth to choose from. WiMAX technology also allows for flexible configuration of the basic bandwidth according to traffic models. Operators can implement different spectrum allocation strategies to meet the requirements of different subscribers and traffic distribution models merely by modifying software parameters.
WiMAX networks a l so fac i l i t a te expanding capac i ty and decreas ing interference with MIMO and multi-antenna technology especially when subscr ibers are not moving around m u c h ; Wi M A X n e t w o rk s s u p p o r t capacity expansion through high-order modulation and new technologies. This is why WiMAX networks are preferred by both household and enterprise fixed subscribers. For example, Huawei 4T4R and MIMO technologies can give a better experience to fixed WiMAX subscribers than ADSL technology can. Coupled with 3G networks featuring high mobility and widespread coverage, operators can build up a strong competitive edge and optimize user experience to promote the sound development of mobile data services.
Equipment providers are also making great efforts to strengthen their competitive edge in network integration technology. For example, Huawei has implemented a series of network optimization measures for operators to support WiMAX service charging through existing GSM accounts. GSM subscribers only need to subscribe to wireless broadband service through their existing accounts without opening a separate WiMAX account.
By popularizing broadband access services through the combination of WiMAX and 3G technologies, operators can address the uneven distribution of wireless broadband data subscribers and traffic, meet subscribers’ broadband access requirements cost effectively and balance technology, spectrums and investment to improve their own profitability. Moreover, with an increasingly large subscriber base, a high quality 3G user experience can be guaranteed.
Editor: Li Xuefeng [email protected]
FEB 2010 . ISSUE 54
Solution
GSM-R
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GSM-R keeping communications on track
A bright future
he GSM-R system is based on the reliable and mature GSM platform. By inheriting applicable GSM technologies a c c u m u l a t e d o v e r t h e p a s t t w o
decades, the GSM-R systems’ new functionality is tailored to suit various requirements for railway communications. As a digital communications platform, the GSM-R provides not only voice communications services that span wireless train dispatching, shunting yard, emergency call, and maintenance communications, but also transfers
diagnostic data, freight and passenger information while delivering other value-added services.
Since the construction of trial networks in France, Germany, and Italy in 1997, the GSM-R has become the global standard for railway communications. The system has been widely deployed in the UK, Switzerland, the Netherlands and Spain. Other countries, such as India, Saudi Arabia, and Indonesia, have also actively planned to deploy the GSM-R system.
With the most population in the world, and an extensive railway network to serve them, China has made huge progress in railway construction. Stretching across this big nation, railways are playing an increasingly important role in daily life.
T
Based on the European Integrated Railway Radio Enhanced Network (EIRENE) specifications, the GSM-Railway (GSM-R) is a system customized for digital wireless railway communications. Powered by cutting-edge technologies, this system provides robust technical support for railway communications in the new era.
By Wang Zhoujie
keeping communications on track
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powerful customization and development capabilities, Huawei provides a complete range of GSM-R solutions that covers co re ne twork s , w i re l e s s ne twork s , terminals, transmission networks, data communications networks and other auxiliary facilities. Moreover, Huawei has made remarkable achievements in standard setting, product development and project delivery.
Tackling coverage challenges through distributed BTSs
Due to the large coverage and complex geographical conditions of the railway network, the wireless coverage has a lot of weak fields. In addition, with the higher train speed the doppler Effect is more prominent, indeed worsening the quality of communication.
S ince more GSM-R sy s t ems a re deployed, i s sues re lated to wire less coverage are worsening at weak fields such as track combining and crossing areas, large railway stations, tunnels, bridges and train yards. The limited frequency resource of the 4MHz band is the major bottleneck for the traditional BTS for covering such areas.
In September 2008, at the Berl in InnoTrans 2008 Congress in Germany, Huawei launched the industry’s first GSM-R distributed BTS solution to resolve issues related to wireless coverage for railway systems. In this solution, a GSM-R distributed BTS is comprised of a baseband unit (BBU) and a remote radio unit (RRU) connected by optical fibers.
Huawei has designed a Multi-site Co-Cell sharing technology, especially to cater the railway communication needs. It helps to solve problems associated with frequent network handover and the weak fields in a high-speed environment. Controlled by the BBU, the RRUs from multiple physical sites are homed in to the same cell. The technology reduces network handover time and increases handover success rate in a high-speed environment and substantially saves frequency resources.
For a railway operating at a speed of 300km/h or above, Huawei offers two wireless coverage solutions: dual-network coverage and neighboring BTS cross
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According to the latest mid-to long term railway development plans by 2020, the total railway mileage operating at a speed of 250km/h or above will reach 16,000 kilometers in China. This will create many further opportunities for GSM-R development.
Constantly improving technologies
With r ich exper ience in wire les s communica t ions t echno log i e s and
coverage. These solutions can prevent single-point failures from interrupting services in a high-speed environment.
In the dual-network coverage solution, two BTSs are deployed at the same physical site to achieve dual-network coverage. When one BTS fails, the other BTS takes over from the failed BTS to ensure consistent wireless coverage. In the neighboring BTS cross coverage solution, one BTS is deployed at a site. When the BTS of a site fails, the BTSs of neighboring cells can ensure the normal handover of wireless channels.
Mobile softswitch supports remote hot backup
The security and reliability of railway communications is increasingly important, e spec i a l l y w i th expand ing r a i lway construction. As a special part of the railway communications network, a mobile switch usually covers multiple railway lines in a large area. Any operational errors, faulty devices or natural disasters can cause a mobile switch to fail and interrupt service on a large scale, putting the operation of multiple railway lines at risk. It is essential that core networks provide disaster recovery capabilities like a hot backup to ensure network security and reliability.
Mobile softswitch can be deployed on core networks to address these issues. Features include: excellent disaster recovery capability, remote separated installation of a MSC server and a media gateway (MGW), plus support for N+1 disaster recovery backup. In China, typically four to five backup softswitches are deployed in an area-by-area basis along nation-wide railway lines to serve as hot backup for switches for 18 railway administrations.
To further secure networks and enhance the disaster recovery capabil ity, the GSM-R system also offers two softswitches for key lines to achieve 1+1 disaster recovery backup. These two softswitches work simultaneously and serve as the active and backup devices respectively, synchronizing data through a heartbeat link. When one softswitch fails, the other immediately takes over to independently switch services for the entire line. When the failed softswitch recovers, services
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Solution
are automatically switched back to resume the load sharing mode.
In 2003, Huawei debuted the world’s first mobile softswitch solution based on the 3GPP standard architecture. Through years of steady development, Huawei has set the pace in the global mobile softswitch market. By Q3 2009, Huawei’s mobile softswitch has served 1.6 billion users in more than 100 countries. Also, Huawei has established long-term partnerships with leading operators in the core network area, including: China Mobile, China Telecom, China Unicom, Vodafone, Orange, KPN, Telenor, Reliance and Etisalat.
Securing railway communicationsSmooth communications for heavy haul railways
As one of the most important heavy haul railways in China, the Datong-Qinhuangdao line (Da-Qin line) is the first line integrating the GSM-R system. On the Da-Qin line, the 2700-meter-long train has 214 coaches and provides a transportation capacity of 20,000 tons and a single train is driven by multiple engines operating synchronically.
In 2004, Huawei was awarded a contract to deploy the GSM-R networks for the Da-Qin line. All trains on this line must communicate at the same time with high quality wireless coverage. Within less than a year, Huawei successfully delivered this national-level key project to the Taiyuan Railway Administration. The annual transportation capacity of the Da-Qin line has increased from 100 million tons in 2002 to 340 million by the end of 2008, making it the most important coal transportation line in China.
In 2008, the Da-Qin Railway Heavy Freight Transportation Technologies and Applications project was awarded the First-Class National Science and Technology Progress Prize and Huawei’s GSM-R communications technologies were highly recognized. The award encouraged Huawei to devote more effort to GSM-R networks. Following the Da-Qin line, other branches, such as the Qian-Cao line and Beitongpu lines have also been covered by GSM-R wireless networks. Therefore, Huawei has paved the way for the telecommunication development of heavy haul transportation in China.
Providing coverage solutions for high-speed passenger railways
As one of the world’s fastest passenger railways, the Guangzhou-Shenzhen Express, with a speed of
350km/h, is some of the most advanced technology in use today. This line transports millions of passengers each year along 110 kilometers of track. Moreover, this line serves as one of the two arteries in the inter-city railway network of the Guangzhou-Shenzhen area, and is also an important part of the Beijing-Hong Kong passenger railway.
To ensure wireless coverage quality in a high-speed environment, the neighboring BTS cross coverage so lut ion i s adopted for the ent i re Guangzhou-Shenzhen Express. This helps ensure normal operation when single-point failure occurs. In addition, due to the complicated geographical conditions along the line, Huawei has conducted field surveys on the Guangzhou-Shenzhen section many times to work out wireless coverage solutions for weak-fields.
The 10.8 kilometer long Lion Ocean tunnel located on this section is the first underwater railway tunnel in China. For working within the limited space inside the tunnel caused by its shuttle-shaped shield design, Huawei mapped a solution where the two shuttle-shaped ends share the same cell (thus avoiding cell handovers) and all the BTSs are deployed outside the tunnel. This ensures wireless coverage and simplifies device maintenance.
In a d d i t i o n t o f u l f i l l i n g h i g h c ove r a g e requirements, the GSM-R system on the Guangzhou-Shenzhen Express is also required to carry the train control information for the Chinese Train Control System Level 3 (CTCS-3), posing great challenges to relevant QoS indexes such as E2E delay in the entire GSM-R system.
In response, Huawei GSM-R system provided a signaling carrier system at a high security level for this line. With this system, trains can operate without traffic lights, and the security of train dispatching on the line is ensured.
Currently, Huawei experts are devoted to the R&D of GSM-R technologies and actively participate in standardizing GSM-R technology. So far, Huawei has submitted more than 60 proposals to relevant international organizations. Developed on the widely-used GSM platform, the Huawei GSM-R system completely complies with the EIRENE specifications and is highly compatible. Its maturity and reliability have been fully recognized.
In December 2009, Austral ia’s largest rai l engineering company UGL Ltd. has chosen Huawei as its sole supplier of GSM-R system technology and equipment. As technology advances, so does Huawei and the GSM-R system is ready to fulfill the requirements for railway communications on trains with faster, safer, more customized solutions.
Editor: Li Xuefeng [email protected]
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