OctVol. 13 No. 5 Issue 136

Tech Forum

Desktop Cloud Application for Government and EnterpriseThe core idea of a desktop cloud is to transfer the host, OS, applications, and all data from personal terminals to a data center. This makes it easy for desktop users to select an OS, office software, R&D software, and other applications—just like using a remote control.

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Ucell: The Way to Success Ucell is part of the Swedish-Finnish operator, TeliaSonera. In 2008, Ucell was rebranded and adopted a new slogan: “closer to the people.” Since then, it has rapidly increased its market share to become the second largest mobile operator in Uzbekistan. We interviewed Oguz Memiguven, CEO of Ucell. He shared with us the secrets of Ucell’s rapid growth, and also his thoughts on what makes for successful cooperation.

Solutions

Uni-RAN: A Perfect Way to Modernize Mobile NetworksUni-RAN adopts a unified SDR platform that supports multiband and multimode radio configurations. By updating software and minimizing changes to hardware, Uni-RAN allows for smooth evolution from GSM/EDGE to WCDMA and then to LTE.

Building New-Generation GSM Networks with C-RAN

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Creating Value with Efficient Spare Parts Management14

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H3G Austria: A Musical Movement Towards Mobile BroadbandH3G is the first operator in Austria to build a nationwide LTE/DC-HSPA+ network that will cover 94% of the country’s population with HSPA+ services and provide LTE services in major cities.

Cell C Striving Towards Leadership

Reliance Communications: Built to Succeed

E-Plus Group Focuses on Future Technologies Made by ZTE

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Editorial BoardEditor-in-Chief: Jiang Hua

Deputy Editor-in-Chief: Huang Xinming

Editorial Director: Liu Yang

Executive Editor: Yue Lihua

Editor: Paul Sleswick

Circulation Manager: Wang Pingping

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ZTE ProfileZTE is a leading global provider of

telecommunications equipment and network

solutions. It has the widest and most complete

product range in the world—covering virtually

every sector of the wireline, wireless, service

and terminals markets. The company delivers

innovative, custom-made products and

services to over 500 operators in more than

140 countries, helping them achieve continued

revenue growth and shape the future of the

world’s communications.

Success Stories

News Brief

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ZTE and Reggefiber Sign Power Supply Equipment Contract

E-Plus and ZTE Strengthen Partnership

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Reporter: Liu Yang

October 2011

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Ucell: The Way to Success

Ucell is part of the Swedish-Finnish operator, TeliaSonera. In 2008, Ucell was rebranded

and adopted a new slogan: “closer to the people.” Since then, it has rapidly increased its market share to become the second largest mobile operator in Uzbekistan. We interviewed Oguz

Memiguven , CEO o f Uce l l , on September 4th, 2011. He shared with us the secrets of Ucell’s rapid growth. He also shared his thoughts on what makes for successful cooperation.

Journalist: First, could you introduce your company, including its business

and main focus area? Oguz Memiguven: Ucell is part of TeliaSonera Eurasia. TeliaSonera is one of the biggest operators in Europe. It has operations in 7 countries in Eurasia and also has operations in Russia and Turkey. In Azerbaijan, we have Azercell, in Kazakhstan, we have Kcell, in Tajikistan, we have Tcell, in Georgia, we have Geocell, in Moldova, we have Moldcell, in Nepal, we have Ncell, and in Uzbekistan, we have Ucell. So these are the Eurasian operations of TeliaSonera. Ucell was established in 2007 and was rebranded with its current name in June, 2008. In June of this year, we refreshed the brand so that all TeliaSonera Eurasia companies now have the same visual identity. We also finished our new headquarters in the city center of Tashkent, the capital of Uzbekistan. At the opening of this prestigious and modern building, we introduced our new brand identity.

Ucell started operations in 2008. When we took over the company, it had just over half a million subscribers and a 9 percent market share. Now it has 8.5 million subscribers and a 34 percent market share. We are far ahead in data and 3G in the country and are perceived as a technology leader. In Uzbekistan, we are the second largest operator in terms of revenue and market share. But we are the first operator in the hearts and minds of the people.

Oguz Memiguven, CEO of Ucell

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Our priority is to further expand our 3G and 4G network, focus on new 3G technologies, such as dual carriers, and establish long-term sustainable leadership, especially in data communications, 3G, and 4G. We also have a 4G trial network that has achieved quite good results, and we will extend our 2G as well.

We have almost 900 workers in the company. We also have thirty offices and 2000 dealers all around the country. So we have an extensive distribution network.

Uzbekistan has a population of 29 million population, it has rich resources, and it has great potential. We are a very happy to operate there, and I think we will continue to invest in the future of

Uzbekistan.

Journalist: Ucell has a fast-growing subscriber b a s e , a r o u n d 3 4 percent market share. At present, Ucell is the second largest mobile operator in Uzbekistan. Could you tell us the secret of your success?Oguz Memiguven: W e a r e a v e r y interesting company. In the beginning, our slogan was “ожидать большего,” which in Russian means “expect more.” We have always tried h a r d t o p r o v i d e v e r y a t t r a c t i v e

and economical tariffs for people. So we are a kind of a market maker, and everyone follows us. We have a very rich value-added services portfolio. We always present good, enjoyable and useful services to the people, including the youth. When we establish reasonable coverage, we also attract a lot of premium and corporate customers as well. Our success is due to the fact that we are affordable, we have a lot of variety in our services, and we have a very strong presence in data communications, the Internet market. That’s the reason why we are successful.

Apart from this, we have a very young, ambitious, energetic, and agile management team. We are very quick, and our competitors have difficulty

keeping up with us. There is no need to be humble on this issue. We are a very fast and agile company.

Journalist: How are Ucell’s mobile users distributed? What is the proportion of 2G to 3G users? And what are their mobile phone usage habits?Oguz Memiguven: Uzbekistan is no different from the rest of the world. People want to reach the Internet. You have to simplify life for people so they can easily access the Internet. We provide a local phone to the market with the most visited Internet sites already presented as an icon. People want to go to social networks, for example, Facebook, Vkontakte, and other social networking sites in Russian. So when we sell a phone, these sites are there already. Then people touch the phone, and they are part of it. We make our strategy based on the most visited social networking sites. We provide them so easily, so quickly, and with uncomplicated pricing—simple flat pricing to reach those pages. This was warmly welcomed by the people, and caused a tremendous increase in data traffic, almost tenfold.

Journalist: In December 2007, Ucell and ZTE signed a phase-I contract to construct a wireless network in Uzbekistan. In the following years, Ucell again selected ZTE several times to expand its network to the sixth phase. Why did you select ZTE as your partner? How do you evaluate ZTE’s equipment and project team?Oguz Memiguven: ZTE is a world-

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class company. The products, services, and product roadmaps are qui te impressive. Honestly, this is common to world-class suppliers. But what makes ZTE favorable to us is mainly the team. They are very attentive, they are very friendly, and they listen, which is very valuable to us. When we have problems, they take it so seriously. They want to help, and I value it very much. Also, ZTE always has a competitive price strategy. That’s also something I very much appreciate. But believe me, the most important thing is ZTE’s attitude. If ZTE does not lose such ambition and attitude towards its customers, it will bring them much fortune. The way they listen and try to help us I appreciate very much. I told them when they were building the first phase, “If you do it successfully, I’ll recommend you to other good companies.” And I did. They are now working with some other good companies right now.

Journalist: What has impressed you during the cooperation between Ucell and ZTE?O g u z M e m i g u v e n : There are many things. I n t h e b e g i n n i n g , I followed the progress very closely. Building a network from scratch is not easy, I know. But I really pushed them and gave them a heart attack. Every week I asked about the targets and I followed

the other weeks. There were times when the results were not exceptional, but the week after, they closed the gap. Many times they did it. I was told they couldn’t make it, but they did, and I was surprised. I was surprised with their commitment, dedication, and energy.

It’s not only me who feels this way about ZTE. Actually, within our organization, the marketing and technical people always talk about ZTE with respect. I have my own views about your company, but I listened to my people as well. When I listen to them, they always talk about ZTE with respect, and I am influenced by that as well. I am not the only one in the company that thinks like this.

Journalist: In August 2010, ZTE helped Ucell deploy the LTE network. What is the significance for deploying LTE in

Uzbekistan? What do you expect it to be in the future?Oguz Memiguven: We are at the very beginning with LTE, but LTE will change everything. You can watch the live TV with LTE. But we still have a long way to go with 3G. We want to start and see. With LTE, we become a kind of ADSL operator. We can give people high speed. When we consider wireless technologies, we can easily satisfy the needs of individual users for data connection. When it comes to big corporations, our current technology is not fast enough to give full-scale service. But with LTE, a big market is opening for us, and it can replace all this fixed infrastructure as well. I think there is a great future for operators and vendors. Ucell’s target is very clear—we want to be the leader in all aspects of mobile technologies in the country.

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ZTE’s Desktop Cloud Solution

System architectureZTE has developed an end-to-end

desktop cloud solution. Data processing and storage is concentrated at the data center, and terminals are turned into simpler cloud terminals. The data center assigns a virtual host to each terminal from a resource sharing pool. This enables the OS and application software to run in the data center while input and output operations are performed by the

Tech Forum

The core idea of a desktop cloud is to transfer the host, OS, applications, and all data from

personal terminals to a data center. This makes it easy for desktop users to select an OS, office software, R&D software, and other applications—just like using a remote control. Desktop cloud is a brand-new concept that helps government and enterprises control their core internal information, reduce power, reduce TCO, and improve terminal management and maintenance.

Desktop Cloud Application for Government and Enterprise By Liu Burong

terminals. All user input into a terminal, such as mouse and keyboard operations, are synchronized with the server; and all output, such as screen refreshes, are synchronized with the terminal.

Cloud terminals can be thin clients, traditional PCs, smart mobile phones, or tablets. Virtual desktop session management involves scheduling the virtual desktop system and verifying user identity. Virtual resource scheduling involves dynamic scheduling and unified management of computing resource

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gain flexible remote access using their terminals without interrupting running applications.

Unified O&M to enable resource sharing: Managing thousands of thin terminals is easy with the unified management platform. The data center uses virtualization technology to integrate all computing, storage, and network resources into a shared resource pool for simple and unified management, maintenance and technical support. This reduces management, purchasing, electricity and air conditioning costs.

Application Models ZTE’s desktop cloud can be applied

Figure 1. Architecture of ZTE’s desktop cloud.

Figure 2. Application scenarios for ZTE’s desktop cloud.

pool, storage resource pool, and network resource pool. Cloud infrastructure provides servers, storage, networks, and security devices.

FeaturesZTE’s end-to-end desktop cloud

solution has the following features:Separation of data and terminals sothat sensitive information is secure: Terminals are separated from sensitive information. Desktops and data are centrally stored and processed in the background. Only screen refreshes are transmitted, without any data loss or breaches of confidence. Remote access is also authorized.

Energy efficiency to reduce TCO: Th in t e rmina l s a re qu ie t and consume less power. They are a solution to the problems of noise and high temperature in confined office environments and also reduce electricity costs. Thin clients and desktop operating systems do not need to be maintained. This simplifies O&M and reduces OPEX.Flexible access to mobile office: Data and desktops are stored and operated at the data center so that users can access mobile office anywhere and at any time. Users can

in government, large and medium enterprises, finance, education, and medical care. Application models can be designed for R&D departments and other offices that require high information security, public service halls and counters, integrated call centers, and mobile offices.

ZTE’s desktop cloud is widely used in government and enterprise. 60% of the employees of a particular design institute are designers. These employees use AutoCAD for graphic design and have specialized workstations. 40% are office workers who use regular PCs. Graphic designs are stored in personal terminals, so there is a hidden risk of information being disclosed without authorization. A graphic workstation is also very expensive to purchase and operate.

ZTE’s desktop cloud solution can address these problems. Graphic workstations are centrally located in a data center, and thin clients are used as PC terminals. The server provides workstations for the graphic designers and virtual hosts for the office workers. Core design information is kept in the data center and expensive graphic workstations are shared by users. Desktops for graphic workstations and office computers are also managed in a unified manner. This improves O&M.

October 2011

Virtual ResourceScheduling

(Cloud Software)

Terminal Access Layer

VirtualDesktop

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Virtual Resource

Layer

Physical Resource

Layer

Cloud Terminals (Hardware)

Virtual Desktop Session Management

(Cloud Software)

Cloud Infrastructure (Hardware)

Virtual Computing Resource

Virtual StorageResource

Virtual Network Resource

ComputingDevice

StorageDevice

NetworkDevice

Security Device

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Solutions

By Dai Zhao

Demand for Network Modernization

Mobile broadband continues to develop and succeed at a phenomenal pace. The

Global mobile Suppliers Association (GSA) confirms that as of May 2011, more than 99.5% of the world’s WCDMA operators have deployed HSPA on their networks, and over 30% of them have evolved to HSPA+. The GSA also anticipates that 81 LTE networks will be in commercial service by the end of 2012 in addition to the existing 20 that have been launched commercially. The rapid growth of mobile broadband has placed high requirements on architecture and management of mobile bearer networks.

GSM/EDGE has by far the largest subscriber base, accounting for more

than 88% of global mobile subscribers. Yet most GSM operators are now facing pressure from the growing demand for data services and declining ARPU. Legacy network devices and architecture are barely able to meet the requirements. It is therefore imperative to modernize legacy mobile networks for high profitability and sustainable development.

ZTE’s Uni-RAN Solution To modernize networks, ZTE has

developed an innovative Uni-RAN solution that ensures smooth evolution and easy O&M without affecting existing services.

Smooth evolutionUni-RAN adopts a unified SDR

platform that supports multiband and multimode radio configurations. The

CN and OMM parts of multiple radio systems are converged in Uni-RAN. This simplifies network architecture and makes network O&M easier and more reliable. By updating software and minimizing changes to hardware, Uni-RAN allows for smooth evolution from GSM/EDGE to WCDMA and then to LTE. In network modernization, i t i s qui te impor tant to balance investment in equipment, network O&M, and network profitability. Because it allows for smooth evolution, Uni-RAN can extend the lifecycle of a network for longer time.

Flexible networkingZTE’s SDR base stations come in

various types, ranging from indoor macro base stations for dense, high-traffic urban areas to outdoor micro base stations for remote coverage

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Uni-RANA Perfect Way to Modernize

Mobile Networks

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in suburban areas. The advanced BBU+RRU structure is suitable for almost all application scenarios, and installation is also easy and efficient. Compared with legacy indoor macro base stations, the BBU+RRU design saves more than 75% of equipment room. With diverse base stations and flexible networking mode, Uni-RAN helps operators economize on manpower and material resources.

Outstanding performanceU n i - R A N h a s p e r f o r m a n c e

advantages that help operators reduce OPEX, especially transmission and energy costs. The all-IP platform used for SDR base stations greatly enhances communication efficiency and saves on renta l fees for E1 transmission. BBUs and RRUs are specially designed to suit different application scenarios. They are small, silent, energy efficient, and naturally cooled. Uni-RAN adjusts transmitting power of RF units according to real-time traffic load. These adjustments are made using software so that power consumption throughout the network is completely optimized.

Speed Up Network ModernizationBy the end of 2010, ZTE had

deployed GSM/UMTS networks for 120 operators in more than 100 countries. ZTE’s SDR equipment―the c o r e o f U n i - R A N ― h a s b e e n recognized by operators worldwide since it was first launched in 2007. ZTE has achieved large-scale breakthroughs in the global high-end telecom market with the SDR base-station platform. Companies in Europe, such as KPN, Telenor, Telefonica, Optimus and H3G, are using SDR base stations deployed by ZTE. In 2010, the total shipment of ZTE’s SDR base stations exceeded 700,000 units.

Driven by an upsurge in mobile network modernization around the world, ZTE has seized the opportunity t o f o c u s o n n e t w o r k s w a p p i n g projects. The company has helped 67 operators in 29 countries modernize their networks, swapping more than 200,000 base station sites. In the first half of 2011, 160,000 GSM/UMTS carriers were successfully swapped by ZTE. Through cooperation with leading operators, ZTE has gained rich experience in network swapping

and enhanced capabilities in logistic, engineering, and network optimization.

CSL: create a simple networkCSL is the largest mobile operator in

Hong Kong with more than 3 million subscribers. CSL had four original mobile networks: a 900MHz GSM network, two 1800MHz GSM networks, and a 2.1GHz UMTS network. The maximum download rate supported by the UMTS network was only 2.1Mbps, which was insufficient for meeting the requirements of 3G subscribers. Various NMS interfaces were being used to accommodate multiple modes and frequency bands. So CSL had difficulty managing and maintaining individual networks. The complicated network architecture also made it difficult to evolve networks and ensure QoS.

In 2008, CSL chose ZTE as a partner in its network reconstruction.

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SolutionsSolutions

Using Uni-RAN, CSL completely converged i ts GSM 900/1800M, UMTS 900M, UMTS 2.1G and LTE 1.8G/2.6G networks within two years. Unified network management was also implemented. 2500 base station sites were swapped. The restructured HSPA+ (or Next G) ne twork i s capable of downloading data at up to 21Mbps. According to internal research conducted by CSL in 2010, data traffic

Ncell: make a miracle on the Top of Mt. Everest

Ncell is a wholly owned subsidiary of TeliaSonera and is the second largest mobile operator in Nepal. Its network covers 42% of mobile subscribers in the country. Ncell aims to capture the largest market share.

N e p a l c o n t a i n s p a r t o f t h e Himalayas, the highest mountain range in the world. Eight of the world’s ten tallest mountains, including the highest point on Earth, Mt. Everest, are located in the country. Deploying base stations on the world’s highest mountain presented big challenges to Ncell.

For fast deployment and smooth evolut ion, Ncel l adopted ZTE’s Uni-RAN solution in its network reconstruction project. Micro base stations using the SDR platform consume less power, have a small footprint, and are easy to install. A one-piece mast and insulated shelter are used for the stations, and this allows the base stations to be installed quickly without the need to move earth or construct foundations. Solar panels are incorporated into the design to ensure that base stations have power supply throughout the year and are environmental ly fr iendly. These features allow each base station to operate at optimal levels with minimal power usage even in temperatures as low as 30˚C to 40˚C. Overcoming altitude sickness and harsh natural environment, ZTE engineers deployed eight 3G base stations on Mt. Everest one month ahead of schedule.

After 500 base station sites were swapped in the initial phase, Ncell reduced energy consumption by over 45% and saw a rapid rise in their subscriber base and data traffic.

has increased by more than 65 times since the Next G network was launched in early 2009.

During the network swapover, CSL cut down the total number of base stations from 5050 to 2050, replaced original E1 transmission with FE transmission, and saved 20% transmission resources. CSL reduced network OPEX by 35.7% and greatly improved its profitability.

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SolutionsSolutions

By Hu Kaiwei

Solutions

As 3G users become more hab i tua l i n t he i r u se o f microblogging and mobile

video, the era of mobile Internet is approaching at an ever-increasing pace. Competition facing mobile operators is f ierce, and with the explosion of mobile Internet traffic, the costs of constructing, operating, and upgrading wireless access networks are increasing. However, in many cases, APRU is not increasing much or is even dropping. The development of mobile Internet is being hampered by traditional mobile networks, which cannot meet the demands of large amounts of mobile data.

Restrictions in Traditional Mobile Networks

Mobile Internet users with smart terminals and tablet PCs require ubiquitous signal coverage. High-order modulation, high spectrum, and

high bandwidth are characteristics of LTE—a new wireless broadband technology designed to support mobile Internet access via cell phones and handheld devices. Microcell coverage i s p r e f e r r e d i n LT E ; h o w e v e r, traditional mobile network design restricts the development of high-speed mobile Internet.

Construction and O&M costs for traditional mobile networks are high because auxiliary facilities such as equipment room, a i r conditioners, transmission and power supply are needed for base stations. Infrastructure equipment accounts for about 30% of TCO. Auxiliary facilities also consume much energy.

Ce l l s igna l s in a t r ad i t iona l mobile network are separate and processed independently. Also, there can be much interference and little collaboration between base stations. Therefore, high bandwidth

is not supported. The capacity of a mobile network

varies from time to time and from place to place. This causes a tidal effect. Each cell in a traditional mobile network is designed with maximum capacity. If there is spare capacity, resources cannot be shared throughout the network. This is inefficient. The tidal effect is more pronounced in the mobile Internet era because of higher data throughput, and it is necessary to share network resources.

Where multiple wireless systems c o e x i s t , w i r e l e s s n e t w o r k s with different standards can be operated. However, multisystem convergence is difficult with a traditional network design.

To address these problems, China Mobile has put forward C-RAN—an innovat ive and environmental ly friendly access network architecture for wireless networks. C-RAN has

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captured the attention of multinational operators.

The C-RAN ConceptC-RAN is a collaborative, real-time

cloud radio access network. It is based on an open platform and consists of centralized baseband processing pools (virtual BTS pools), RRUs, and antennas.

Clean system, collaborative radio, and cloud computing is the essence of C-RAN. A complete industry study on C-RAN has already been carried out. ZTE was the first vendor to propose a “super baseband pool” solution. ZTE has worked with China Mobile to develop a baseband pool solution that supports more than a thousand carriers, to develop a prototype based on general-purpose processors, and to develop a future-proof C-RAN solution involving active antenna and LTE-A prototype.

To speed up network modernization, C h i n a M o b i l e h a s p u t h i g h e r requirements on its GSM network. More 3G (and even 4G) technologies will be applied. The introduction of C-RAN into such a large-scale GSM network will bring many benefits.

Energy savingIn a tradit ional mobile network, t h e c o s t o f e q u i p m e n t r o o m s , transmission, and air conditioners chews up more than 60% of CAPEX. And when calculated over several years, OPEX accounts for more than 60% of TCO. A great deal of OPEX comes from power for air conditioners and from the rent of equipment rooms.

Using C-RAN, operators can focus their investment on infrastructure e q u i p m e n t , o p t i c a l f i b e r s , a n d communication pipes while greatly reduc ing the cos t s o f aux i l i a ry

e q u i p m e n t . B a s e b a n d r e s o u r c e sharing and flexible dispatch can also be implemented. This significantly improves resource use. If an operator builds six sites in rural areas using C-RAN architecture, they can save equipment cos ts by around 9%, construction costs by around 30%, and O&M costs by around 76%.

Collaboration and sharingChina Mobile operates the world’s

largest GSM network. Due to an upsurge in data traffic, the GSM network is heavily burdened, and resource use in the wireless network exceeds 75%. Each cell in urban sites has more than eight carriers, and the frequency reuse coefficient is less than 10. This is causing spectrum shortage. As more sites are built at

intervals of less than 350 meters, n e t w o r k p l a n n i n g i s b e c o m i n g e x t r e m e l y c o m p l i c a t e d . T h e traditional way of expanding capacity by splitting cells and adding carriers has caused bottlenecks.

The tidal effect impacts wireless resource use, but C-RAN is designed to automatical ly adjust network r e s o u r c e s a s t r a f f i c m i g r a t e s . Central ized baseband pools and m u l t i - R R U c e l l c o m b i n a t i o n technology solve problems caused by the tidal effect and also increase diversity gain through collaborative multi-RRU coverage.

GSM C-RAN Solution ZTE has introduced C-RAN into

its wireless network solution through technological innovation.

SolutionsSolutions

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RRUs will be networked and pooled together. This will simplify network archi tec ture , reduce in terac t ive latency between base stations, and provide basic architecture for wireless signal management and collaborative multicell radio management.

Complete transmission and O&MChina Mobile adopts SDH in its

GSM bearer network. Usually, six to eight sites form a ring and share a pair of fiber optic cables. Using innovative technologies such as fast phase locking and high-quality clock, ZTE’s GSM C-RAN supports 18 chassis cascade. It employs 6G optical ports between BBU and RRU and consumes the same number of fiber optic resources as a conventional SDH bearer network. It also supports fiber connection and colored fiber connection and can be applied in various scenarios. ZTE uses the idle field of CPRI protocol between BBU and RRU to develop an array of functions for centralized O&M. This makes the network controllable and manageable.

The C-RAN architecture creates large capaci ty and uses a smal l number of nodes to dramatically reduce CAPEX. This helps operators build new-generation GSM networks. Today, GSM dev ices a r e be ing purchased in bulk to replace old devices. C-RAN-based GSM will become the equipment of choice for more operators.

Fur the r r e sea rch needs to be done on C-RAN. Mobile operators, equipment vendors, and traditional IT suppliers will jointly drive the growth of C-RAN and shorten the time to market for new-generation env i ronmen ta l l y f r i end ly RAN architecture.

Sharing baseband resourcesZTE places the baseband parts of

all wireless equipment on the BBU. The GSM BBU can dynamically share baseband resources of 108 carriers. By the end of 2011, ZTE will realize baseband resource sharing for over 1000 carriers. This will lay the foundation for collaboration and sharing between large-scale base stations.

L a r g e c a p a c i t y , l o w p o w e r c o n s u m p t i o n a n d f l e x i b l e networking

ZTE has developed an innovative 2 T 4 R R R U b a s e d o n a d v a n c e d multicarrier power amplification technology. A single RRU module supports 12 carriers and cross-cell configuration. Auxiliary facilities

are unnecessary. The RRU is easy to install, has flexible networking (ring or chain topology), and is energy efficient (consumes only 460W peak power).

Mult inetwork coexistence and smooth evolution

ZTE’s wireless networks are built on the unified SDR platform and open μTCA standard. This allows for smooth evolution of BBU and RRU. Baseband processing units of GSM, TD-SCDMA, and LTE networks based on the same platform architecture can be placed on the same BTS rack. They can share the same backboard, power supply, main control, clock, and transmission facilities. In the future, GSM, TD-SCDMA and LTE networks will share the same BBU, and multiple

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for customers, ZTE assures cost efficiency and adheres to the SLA. ZTE’s SPM encompasses spare parts dimensioning, provision, warehousing, inventory management, establishing a distribution chain, repairs, and all associated logistics activities. Before the service is provided, ZTE considers:

an agreed SLA that varies according to the critical necessity of spare partsequipment mean time between failure (MTBF), which is a dynamic factor that changes as a product evolves prevalent infrastructure in an area and site accessibility required spare parts hubs, service organization, existing and future support systems. ZTE produces a plan that includes:

In the telecommunication industry, the critical importance of spare parts management (SPM) cannot

be underestimated. SPM is more a science than an art and involves balancing inventory levels with service level agreements (SLAs). This requires a great deal of high-precision forecasting. Unpredictable demand and infrastructure conditions coupled with exacting SLAs make precision forecasting extremely important.

When managing spare parts, telecom operators must make a strategic choice between repair and return or SPM. With repair and return, the vendor is only responsible for repairing faulty units and delivering them back to the operator. The operator must purchase and store spare parts and is wholly responsible for inventory, testing,

cleaning and logistics. However with SPM, the vendor owns and stores the spare parts, undertakes repairs, and handles all related logistics. In most SLAs, the vendor is responsible for maintaining a suitable range of stock at adequate levels. When choosing between the two options, an operator must consider whether they are prepared for the risks of handling spare parts, and whether ownership of spare parts will require overly high CAPEX.

At present, the trend is very clear. Most operators are opting for full turnkey SPM, which requires vendors to provide accurate and cost-effective solutions. As technology evolves and new equipment enters the market more frequently, there are fewer incentives for operators to own and keep spare parts. In an SPM contract

By Mehrzad Nabavieh

Creating Value with Efficient Spare Parts Management

SolutionsSolutions

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a bill of quantities (BOQ) for the spare partsdistribution plan and proposed logistic channels

organization and support systems. The BOQ is adjusted for business

continuity and disaster recovery. The distribution strategy is vital to reduce inventory levels. A vertical spare parts distribution plan with several spare parts hubs at the central, regional and local level is not an optimal solut ion in many cases. Fewer layers in the distribution plan normally lead to higher efficiency and reduced inventories. Geography and accessibility are important factors for the distribution plan structure as is the critical necessity of the spare parts. Hence, different plans are normally implemented in an SPM service. Merging SPM logistics with O&M and sharing facilities reduces the cost of both O&M and SPM.

Another way to reduce the cost of SPM is to set up fault diagnostics labs in central or regional spare parts centres. A proportion of faulty units do not require comprehensive repair, and certain common or basic faults can be detected at spare parts centres. These faults can then be repaired by service technicians without the equipment being dispatched to a repair centre.

E s t a b l i s h i n g p r o p e r s u p p o r t systems is imperative in SPM. There are numerous inventory and asset management applications for spare parts tracking and ordering. Many of these applications use RFID for greater accuracy and easier management. These support systems have embedded work-flows and procedures that can be customized to match an operator’s preferred working processes. Inventory ordering can be also handled through the same system. Advanced inventory

management support systems can be integrated into an operator’s enterprise resource management (ERP) and operation and support system (OSS) in order to provide a holistic view of the network structure. ZTE has developed its own inventory management system that uses the same data platform as ZTE’s OSS, and this enables smooth integration. ZTE’s inventory management system also supports several common interface standards that facilitate integration with other suppliers’ software platforms.

In an SPM contract, ZTE proposes the most appropriate support systems for an opera tor wi th regards to

the operator ’s defacto platforms. M o r e o v e r , Z T E i m p l e m e n t s , customizes, and integrates the support system so that there is fully functional inventory management supporting SPM.

ZTE’s SPM is vendor-independent and can be applied to all equipment deployed in a network, regardless of the suppliers.

Cos t op t imiza t ion in SPM i s an ongoing activity. The aim is to continuously find ways to reduce the inventory level while adhering to SLA. Hence, forecasting and work procedures are always a focus for improvement.

October 2011

16 ZTE TECHNOLOGIES

By Yin Danyun

Austria is known as a country historically steeped in music. But few might realize that

it is also highly developed in mobile communications. Austria has 9.6 million mobile subscribers and a mobile penetration of 120 percent. Hutchison 3G (H3G) is a leading mobile operator in the country. H3G Austria obtained its 3G license in 2000 and began marketing its services in 2003. The company now provides voice and data communications for subscribers nationwide.

Success Stories

Smooth Evolution: A Prelude A f t e r c o m m u n i c a t i n g w i t h

equipment providers, H3G Austria d e c i d e d t h a t Z T E ’s U n i - R A N solution based on SDR technology w a s a n i d e a l c h o i c e f o r i t s development plan. The Uni-RAN solution allows for multiband and multimode radio configurations and also supports HSPA+ at 21.6Mbps and DC-HSPA+ at 43.2Mbps through software upgrade. Moreover, it can evolve to LTE by re-using frequency. With the Uni-RAN solution, H3G

H 3 G A u s t r i a ’s o l d n e t w o r k equipment could not be upgraded s m o o t h l y a n d w a s p e r f o r m i n g poorly. This was seriously affecting user experience, restricting market exploration, and creating operational difficulties. Therefore, H3G Austria set about modernizing their mobile networks, with a view to improving network performance and evolving smoothly to 4G. The ultimate aim of H3G Austria is to build up a profitable mobile broadband network that offers excellent user experience.

H3G Austria: A Musical Movement Towards Mobile Broadband

October 2011

17ZTE TECHNOLOGIES

A u s t r i a c a n q u i c k l y e n t e r i n t o t h e h i g h - p e r f o r m a n c e m o b i l e broadband age, and in the process, enhance its brand image and market competitiveness. In the long run, H3G Austria will save on investment and improve operational efficiency.

H3G Austria has had a strategic partnership with ZTE since 2010, when i t d ec ided t o comple t e ly upgrade its networks. The campaign i n v o l v e d r e c o n s t r u c t i n g H 3 G Austria’s radio access, core, and bearer networks, with the goal of building up a cutting edge mobile b r o a d b a n d n e t w o r k . Z T E w a s contracted to provide six years of managed services to H3G Austria, and ensure long-term, stable, high-performance network operation.

Customization: The High C In March 2010 , H3G Aus t r i a

chose ZTE as its exclusive supplier for the network reconstruction. The reconstruct ion is progressing as planned, and by the end of 2011, H3G Austria will have swapped about

4000 base station sites, replaced more than 3000 hops of microwave equipment, and reconstructed its core network. H3G Austria worked with ZTE in defining targets for the project. Several project teams were set up for problem-free logistics, engineering implementation, and quality control. In order to lower ne twork cons t ruc t ion cos t s and shorten the construction period, H3G Austria sought to use existing outdoor cabinets as well as antenna and feeder systems. Customized solutions needed to be devised to make equipment from different manufacturers compatible with each other.

The key to reusing cabinets is to solve the problem of heat dissipation and find space for installation. Given the differences in structural layout and design between new and old base stations, the air ducts in different base stations were incompatible. This meant that if the new base stations were installed in old cabinets, they might not be cooled well enough for reliable long-term operation.

Based on the excellent contribution of ZTE project members and their management, we are fully convinced this project will be a great success and will help us improve our network quality on a constant basis. —Matthias Baldermann, CTO of H3G Austria

After careful ly surveying the base station sites, ZTE’s technical experts came up with a customized solution. Two types of compact base station were selected and modified to match the original cabinets. When totally embedded in the cabinet, these compact base stations were a perfect fit in terms of air ducts and cabling. Results of the field test were satisfying. The customized solution helped H3G Austria shorten their construction period and save CAPEX.

R e u s i n g a n t e n n a a n d f e e d e r systems was a more challenging task. One of the headaches was to make good use of more than 10,000 tower mounted amplifiers (TMAs) for enhancing radio signals. These TMAs had private protocols and non-standard supervision and power supply. To remove or replace TMAs from the tops of the towers would have cost up to €1000 for each site. If the TMAs were reused, the new base stations would be incapable of energizing or supervising them through standard interfaces. So the

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18 ZTE TECHNOLOGIES

Success Stories

TMAs had to be modif ied. H3G Aust r ia teamed up wi th ZTE to c lass i fy a l l the TMAs and their corresponding feeder connectors into eight categories. Each type of TMAs had its own connectors and cables. In this way, all TMAs in the network could be reused, which saved up to €10 million in labour costs. Customization is therefore c o n s i d e r e d t h e h i g h C o f H 3 G

Austria’s musical movement towards mobile broadband.

Rapid Deployment: A March Towards Mobile Broadband

Mobile multimedia business is booming in Austria. This provides opportunities for H3G to achieve major breakthroughs in the market. The operator required more than

1100 sites in key areas to be swapped by the end of 2010 and network modern iza t ion to be comple ted by 2011 . Wi th i t s p ro fe s s iona l project delivery teams and custom-made solutions, ZTE succeeded in swapping and commercializing 1336 sites at the end of 2010 and 2600 sites in May 2011, which was far ahead of schedule.

The pe r fo rmance o f t he new ne twork has been s ign i f i can t ly improved. On June 2, 2011, H3G Austria and ZTE released independent test results showing the LTE/DC-HSPA+ network to be the fastest in Austria, with the widest coverage. Jan Trionow, CEO of H3G Austria, presented results of network evaluation analyses based on the measurements done with speedtest.net, a reliable tool to test internet connection speed. These results indicate that H3G’s network has higher throughput for download and upload than any of its competitor ’s networks in Austria. Network capacity has increased ten times that of the previous network, and data throughput of the entire network has doubled. ZTE’s Uni-RAN solution supports LTE/DC-HSPA+ integrated networking, which enables efficient network upgrades and reduces TCO. The solution meets increasing user requirements for mobile bandwidth and multimedia services.

The whole project is scheduled to be finished by the end of 2011. H3G is the first operator in Austria to build a nationwide LTE/DC-HSPA+ network that will cover 94% of the country’s population with HSPA+ services and provide LTE services in major cities. H3G Austria is poised to offer leading mobile broadband services and improve user lifestyles.

October 2011

19ZTE TECHNOLOGIES

By Xue Fei

India is the seventh larges t c o u n t r y b y g e o g r a p h i c a l a r e a a n d t h e s e c o n d m o s t

populous country in the world. Its large population, low telephony penetration, and rising consumer spending power have made it the fastest growing telecommunication market in the world. As of April 2011, there were 826.93 million mobile subscribers in India, and that number is predicted to rise to 1.159 billion by 2013.

The market is very promising in India, and more than ten operators that exist there are engaged in cut-throat competition. Reliance Communications, the flagship company of Reliance Anil Dhirubhai Ambani Group (ADAG), stands out from most of its competitors.

With a subscriber base of 128.87 million as of February 2011, it is the second largest telecommunication company in India and the 16th largest operator in the world. The company’s vision is “to be amongst the top 3 most valued Indian companies by 2015; to provide information, communication and entertainment services, and to be the industry benchmark in customer experience, employee centricity and innovation.” Reliance Communications has always been committed to cutting-edge technologies and cost-effective solutions.

Successful Strategy in the 2G Era

Although Reliance is the largest

CDMA operator in India, it still offers GSM to support data services, diversify terminals, and enrich user experience. In 2007, Reliance was issued with a GSM license and embarked on its GSM journey.

Ever since the CDMA era, ZTE’s innovative designs have deeply impressed Reliance. ZTE converged CDMA and GSM into one rack, significantly helping the operator decrease their network construction costs and shorten their engineering time. Reliance named the solution “combo box.”

To tackle the problems of difficult engineering and poor coverage, Reliance adopted ZTE’s SDR 8000 base stations with dual-density TRX units. They also adopted highly

October 2011

20 ZTE TECHNOLOGIES

integrated indoor macro base stations from ZTE as well as the industry’s smallest micro base stations and an all-IP indoor pico base station. These enable deep and seamless coverage in dense urban areas.

ZTE’s i nnova t ive Ne t speed technology assisted Reliance to achieve premium quality coverage i n s u b u r b s . T h i s s p e e d s u p network deployment and reduces maintenance costs.

In rural areas, the ZXSDR 8000 BTS family satisfied Reliance’s requirements for coverage, service capaci ty and future evolut ion. W i t h d i s t r i b u t e d s t r u c t u r e and in te l l igen t power con t ro l technology such as in te l l igent carrier shutdown and intelligent cell shutdown, the ZXSDR 8000 BTS family easily adapts to its su r round ing env i ronmen t and substantially cuts down network OAM.

Reliance transformed its mode of operation from single CDMA to CDMA/GSM dual-mode. As of September 2010, the number of GSM subscribers was 6.205 million. This makes Reliance the second largest integrated telecommunicat ions service provider in India. Reliance operates mobile and fixed networks, and offers broadband, direct distance dialing (DDD) and international direct distance dialing (IDDD). They also offer data services and value-added services.

Front-Runner in the 3G WorldIndia’s 3G spectrum auction

concluded in May 2010. Reliance paid a huge amount of money for

13 telecommunication circles. The auction has created expectations for the next great wave of mobile connection growth.

However, there are still many p e o p l e a t t h e b o t t o m o f t h e consumption pyramid.

It is predicted that the largest s o u r c e o f i n c o m e f o r I n d i a n te lecommunica t ion companies in the next decade will continue to be voice services. GSM will continue to dominate the Indian market, with operators focusing their 3G strategies on urban areas and promoting subscriber growth by expanding 2G services into rural areas. Converged voice and data services enabled by 3G networks will become more significant in the Indian market as operators look for ways to address the falling profitability of voice services.

Cost-effective voice strategies have thus emerged as operators seek to exploit the efficiency of 3G to offer lower-cost voice services. This improves margins in a market where

tariffs are so low. Cost-effective voice services benefit operators that have been forced to provide cheaper voice tariffs and improve their profitability.

C o m p a r e d w i t h o t h e r 3 G operators, Reliance has no coverage gaps using 2G. In light of current trends, Reliance formulated the fo l lowing s t ra teg ies tha t t ake advantage of its nationwide 2G coverage:

Optimize the original CDMA ne twork , changing obso le te network architecture to improve competit iveness and solidify subscriber baseReuse the dominan t CDMA network to deploy EV-DODevelop UMTS, EV-DO and LTEPrioritize resource allocation to UMTS.ZTE’s SDR base stations have a unified platform that shares baseband processing units and RF modules. GSM, UMTS, CDMA and LTE multimode networking can be fulfilled in one rack. Using

Success Stories

October 2011

Figure 1. Combo box.

21ZTE TECHNOLOGIESOctober 2011

Winner in the FutureAccording to a report from Ovum,

the number of 3G connections in India will grow to 142 million by 2015. This represents a compound annual growth rate of approximately 80% over the next five years.

In partnership with ZTE, Reliance is

fully prepared for this great opportunity. A future-proof SDR 3G network has been deployed and is ready for the future evolution to HSPA+/LTE. With a solid 2G foundation, a far-seeing 3G strategy, and with the assistance of reliable partners, Reliance is destined to be the winner in the future.

the SDR base station, Reliance took a big step forward in 3G network construction.CDMA/GSM/UMTS/LTE BBUs and RRUs in one rack with large capacitysmall footprint to reduce OPEX cutting down power consumption by over 50%flexible network deployment smooth evolution to HSPA+/LTEcommercial launch of MIMO to improve network throughputAfter signing the contract with

ZTE in August 2010, Reliance received 600 base stations within 30 days. The first 3G call was made after only eight days, and a record was set for the swap over of 1120 GSM base stations in 38 days and 952 3G sites in 22 days. Reliance had swapped over 2000 2G sites and 1100 3G sites by the end of 2010, and 8300 2G sites and 4000 3G sites by June 2011. The networks were also optimized. The great ly enhanced network performance brought about rapid growth in subscriber numbers. In Q1 2011, Reliance gained 3 million GSM subscribers, a 12% increase on the previous year.

In December 2010, Reliance announced the launch of 3G services in Delhi, Mumbai, Kolkata and Chandigarh, and it also plans to extend 3G coverage across the whole country by the end of 2011. This means that Reliance has become the second private telecommunication company in India to launch 3G services and the first to offer 3G services in India’s three biggest cities―Delhi, Mumbai and Kolkata.

22 ZTE TECHNOLOGIES

We want to be the da ta leader in South Africa,” said Lars Reichelt, former

CEO of Cell C. “We believe that is the way to go. We have the firepower, the technology, and by the end of next year, we will cover 97% of the country’s population with our network.”

Cell C is South Africa’s third largest cellular mobile operator after Vodacom and MTN. But the company doesn’t want to remain on the tail of the two big shots. It is looking to wear the crown in the South African telecom market.

However, becoming the leader is a long, hard road for Cell C, and the company must overcome two unavoidable obstacles: Vodacom and MTN. Vodacom is the top operator

in South Africa, a subsidiary of the most powerful operator, Vodafone. MTN also has a firm hold on the South African telecom market and it is difficult to shake the alliance between these two giants.

Reichelt’s vision, however, proved to be more than just words. In less than two years he rebranded Cell C, rolled out new network infrastructure, introduced new pricing, and opened new retail stores.

“Combating Cell C in the past was child’s play for MTN and Vodacom,” s a i d S i m o n D i n g l e , a t e l e c o m marketing analyst. “As the schoolyard bullies, they could easily shove aside the awkward kid trying to get a share of the sandpit that’s South Africa’s

cellular market. But Cell C has grown up and discovered steroids. It has older siblings that have taught it how to fight, and it has a vendetta against the two incumbent networks that have made its life hell for a decade. But it will have to beat down some other kids along the way.”

It boils down to a question of who is the older sibling and who will provide the firepower and the technology for Cell C. The answer is not hard to uncover. ZTE, a Chinese telecom vendor, seems to be the older sibling teaching Cell C how to fight. ZTE is providing firepower for Cell C.

In January 2010, Cell C signed a network construction contract with ZTE for approximately 2400 2G/3G sites.

Success Stories

Cell C Striving Towards LeadershipBy Lv Xun

October 2011

“

23ZTE TECHNOLOGIES

This is a turnkey contract, meaning ZTE will deliver a well-constructed high-performance network in the same way a house broker delivers the front door key to a new owner. In such a turnkey project, ZTE will respond to everything, including site construction and acquisition.

W h y w o u l d a S o u t h A f r i c a n company choose a Chinese company to teach it how to fight and ascend to the top?

ZTE was the first promoter of SDR technology in the telecommunications industry, and in recent years, it has achieved global success with its Uni-RAN solution based on SDR. Its SDR series base stations can be smoothly evolved from GSM to UMTS and

even to LTE. Only software upgrades and minimal hardware changes are necessary, and this is very appealing to operators all over the world. It is especially appealing to operators like Cell C who face the challenges of shrinking capital investment and slow-growing revenue. Since ZTE sold its first SDR base stations in 2008, more than 500,000 units have been deployed worldwide and serve more than 120 operators. These numbers prove that ZTE is the partner of choice.

ZTE’s very substantial global e x p e r i e n c e a n d a d v a n c e d S D R technology are the reasons why the Chinese vendor was chosen to teach Cell C how to fight.

Also, by brokering a deal with the

Cell C Striving Towards Leadership

China Development Bank, ZTE has secured funding of more than 2 billion rand and has helped Cell C reduce its considerable debt. Two billion rand is so powerful that Cell C now has enough firepower to clear its path to the top of the South African telecom market.

In 2010, the Cell C network was baptized by the World Cup. A huge number of subscribers joined the Cell C network. Almost everyone in the stadium wanted to send messages to their friends and share the electric atmosphere of live football. The Cell C network had to deal with a huge influx of traffic. Supported by ZTE engineers, the Cell C network performed well and more than passed the test.

October 2011

24 ZTE TECHNOLOGIES

By Susanne Baumann

E-Plus Group Focuses on Future Technologies Made by ZTE

ZTE has signed partnership agreement with E-Plus Group and KPN Belgium. Under this

agreement, ZTE will help E-Plus expand its mobile network to 4G HSPA+. ZTE is also supporting E-Plus Group to implement the LTE standard.

“The coming years will bring massive changes in the use of mobile devices. Besides voice and SMS, more and more people will make use of the Internet. Mobile browsing with a smartphone has developed dynamically into a mass market.”

Gerhard Lüdtke, access network director at E-Plus Group, believes

there is good reason to invest heavily in the development of data networks. “We expect a massive increase in data volume on the networks. To absorb this, we need competent partners who can assist us to expand our networks with mature technology. ZTE is one of those partners.” KPN, the Dutch parent company of E-Plus, has been in contact with ZTE since 2005—when ZTE was its supplier of UMTS data cards.

In December 2009, E-Plus and KPN Belgium agreed to take advantage of ZTE’s HSPA+ technology to extensively expand their data network. “In the largest network expansion initiative in our

history, we are making big steps every month on the road to becoming a 4G mobile operator,” said Luedtke. “This will benefit our customers who use the Internet via their mobile phones. User experience is critical; our customers demand smooth and reliable surfing.” In the second step, the new LTE standard will be introduced. Since March 2011, ZTE and E-Plus have been conducting tests on three frequency bands.

“The priority for us is the expansion of the data network with HSPA+. HSPA+ devices are available in sufficient quantities and at good prices. This is not the case with LTE,” said Matthew Geller,

Success Stories

October 2011

25ZTE TECHNOLOGIES

E-Plus Group Focuses on Future Technologies Made by ZTE

Then there was a flurry of events. At the end of April, ZTE handed the network operator the first node B site ready for use. In June 2010, a customer help desk was set up. The help desk provides 24/7 service and guarantees short response times. That same month, interoperability tests were completed. ZTE equipment was installed on existing stations and had to be compatible with existing material. At the end of June, ZTE, Alcatel Lucent, and E-Plus signed service contracts for maintenance of the networks.

Always Close to the CustomerAt the same time, ZTE set up a

new project office next to the E-Plus headquarters in Düsseldorf. ZTE established regional offices to coordinate on-site activities and to support E-Plus project managers all over Germany. Regional offices are located in Munich, Berlin, Hanover and Frankfurt. This shows how important the business customer focus is. Short distance from customers means quick response times. In the first half of July, a large number of site installations were completed. In August, the last two radio network

controllers of the initial phase were installed and connected to the E-Plus network. In November, ZTE completed testing on the operations support system. Thousands more sites in Germany will be upgraded or swapped with ZTE technology in the future.

ZTE’s engineering has brought several advantages to E-Plus. Data throughput has been significantly improved, and ZTE modules use less energy, generate less heat, and are compact. They can be transported easily so that installation and maintenance are simplified. ZTE also used SDR base stations for network expansion. SDR technology allows multiple wireless standards to be applied to a base station, and the change from HSPA to LTE can be done via software upgrades. This makes the E-Plus system futureproof. With the new network, the cost of logistics is reduced, support is considerable, and new services can be easily created. New revenue opportunities can be exploited in the shortest possible time.

End-to-End SolutionThe agreement with E-Plus is not

procurement manager at E-Plus.

Rapid ImplementationIn December 2009, the contract for the

expansion of the E-Plus data networks had barely been signed when ZTE began work on the project. First, ZTE installed the entire project infrastructure, setting up a team of technicians and engineers (local and Chinese) as well as a training center. ZTE trainers taught service companies, contractors, and employees working with E-Plus how to deal with the new systems. In mid March 2010, initial tests were carried out on the new system, and the results were successful.

October 2011

26 ZTE TECHNOLOGIES

limited to the provision of access technology. It includes the delivery of core network technology and terminals, which provides E-Plus with end-to-end solutions—from the core network via access technology to handsets. In December 2010, E-Plus launched the first ZTE smartphone under the name “Base lutea” (ZTE Blade).

When asked whether E-Plus fears becoming too dependent on ZTE, Matthew Geller replied, “Europe is a very attractive destination for Asian companies. If we become disappointed wi th ZTE or any o ther Chinese company, this would jeopardize their reputation in Europe. And nobody wants that. Besides, ZTE is totally transparent. We always know who is responsible for what and what the balance sheets say. This promotes confidence.” The German Federal

Network Agency, a state regulatory body, sees no problem in the close cooperation between KPN and ZTE.

E-Plus has the next wireless standard in its focus, namely, LTE. Even here, E-Plus has been working closely with ZTE. Since February 2011, E-Plus has been conducting LTE field tests on ZTE technology using three frequency bands . The technology is be ing prepared for deployment of LTE in the E-Plus data network.

Learning from China MobileIn Germany, the 2.6 GHz band is

being used for TDD-LTE trials for the first time. TDD-LTE has mainly been used commercially in Asia, but E-Plus is pioneering a quasi-Asian standard in Europe. E-Plus is working together wi th the world’s larges t mobi le operator, China Mobile, and drawing

on their rich experience in operating TDD technology. China Mobile brings expertise in operating and maintaining TDD networks and has supported the tests done by E-Plus.

However, conditions in China differ to those in Germany, particularly in relation to customer behavior and acceptance. TDD-LTE services large populations in China and throughout Asia, and it is the only way to offer fast Internet access in Germany without the using expensive fiber optics. Therefore, the standard has been well received to date. Gerhard Lüdkte of E-Plus is confident that Germany will accept the new technology.

Double Challenger Strategy“We are a challenger in the German

mobile market, and ZTE is also a challenger in their field. The chemistry between the two companies is just right,” said Gerhard Lüdtke. “We had ZTE on our screen since our first contact in Shenzhen in 2005. In Asia, ZTE is already an established supplier of sustainable technology and communication. They have a remarkable track record of projects in various states, not only in China. As for the technology, ZTE can compete with other suppliers and is even superior to them.” Geller added, “We need a strong partner, because we are exposed to fierce competition. ZTE provides us with solutions that simply work well.”

“With our power to innovate , we push E-Plus to the forefront. E-Plus can absolutely rely on us as a partner,” says Li Jun, CEO of ZTE Holland and head of the network expansion project at E-Plus and KPN Belgium. “For us, the network expansion for KPN International is a milestone on the way into the European market.”

October 2011

Success Stories

27ZTE TECHNOLOGIES

News Brief

October 2011

E-Plus and ZTE Strengthen Partnership ZTE Unveils First 4-Path TD-LTE RRU with 40MHz and 80W Capabilities

ZTE, Telkom Kenya-Orange Announce Nation’s Fastest Commercial HSPA+ Network

Senior executives meet in Berlin to discuss expansion of ZTE’s mobile device portfolio in Germany

9 September, 2011, Berlin ― At the BASE media meeting held in Berlin, ZTE met with senior executives from the E -P lus Group to discuss expansion of its mobile device portfolio in Germany.

E-Plus , one of the largest mobile operators in Germany, has been c o l l a b o r a t i n g w i t h ZTE since 2010 on the

expansion of the E-Plus broadband network. Following the successful launch of the BASE Lutea smartphone and BASE Tab, E-Plus decided to introduce ZTE mobile devices to enable subscribers to use data services offered by E-Plus’s advanced mobile data network.

The BASE media meeting attracted more than 500 key decision makers from media, economics, and politics. Sporting and cultural identities also attended to celebrate the successful partnership between the two companies.

Mr. Shi Lirong (L), ZTE CEO and Mr. Thorsten Dirks (R), E-Plus CEO at the BASE media meeting

8 September 2011, Shenzhen ― ZTE and its partner, Telkom Kenya-Orange, launched Kenya’s fastest HSPA+ network, based on Uni-RAN, in Nairobi. The network allows Kenyans to access high-speed wireless Internet with a download rate of up to 21Mbps.

The launch was attended by Kenyan President Mwai Kibaki and more than 200 guests.

The newly developed network greatly improves user experience, dramatically reduces operating expenses, and can evolve to LTE. The joint project is a combination of flexible and efficient networking. As part of the agreement, ZTE provided Telkom Kenya-Orange with Uni-RAN-based all-IP solutions. The platform was then used to build a unified 2G/3G mobile network for the operator.

7 September 2011, Shenzhen ― ZTE announced it has introduced the industry’s first 4-path TD-LTE remote radio unit (RRU). The RRU operates at 40MHz and has transmitting power of 80W.

The new high-powered, large-capacity RRU supports 2 × 20MHz TD-LTE carriers and 80W (20W × 4 paths) of transmission power. It increases the efficiency of edge frequency by more than 30 percent.

The RRU also increases network coverage and reduces TCO for operators. By supporting two carriers, the RRU reduces the number of base station devices needed by an operator, and costs are saved. The RRU can also be upgraded to support LTE-A, which can further protect investment.

When used with ZTE’s smart antenna technology, the RRU balances capacity and coverage, which reduces CAPEX. The RRU will be widely used with future TD-LTE networking systems. It can also be configured into two 2 × 20W 2T2R RRUs through software configuration to provide a low-cost TD-LTE networking solution.

28 ZTE TECHNOLOGIES

News Brief

23 August 2011, Shenzhen ― ZTE announced that it has introduced the telecommunication industry’s first TD-SCDMA/TD-LTE ultra-wideband (UWB) dual-mode remote radio unit (RRU) working at 50MHz.

The new RRU can support TD-LTE applications at two 20MHz frequencies in band E (2320MHz─2370MHz) and TD-SCDMA applications at 10MHz (6-carrier) simultaneously. The RRU has transmit power of up to 100W (50W × 2 paths), which increases the spectral edge frequency by more than 30%. This product is a milestone in the development of UWB dual-mode technologies because it enables customers to build TD-SCDMA/TD-LTE indoor networks at the same time.

8 August 2011, Shenzhen ― ZTE announced that it has entered into a strategic partnership with Bharat Sanchar Nigam Limited (BSNL), India’s leading integrated telecom service provider, with the aim of enhancing broadband services in the country.

ZTE will deploy ultra high-speed ADSL2+ and next-generation VDSL2+ broadband devices across BSNL’s network in 15 circles. This deployment will expand the reach and quality of BSNL’s fixed network broadband services across the country and address the requirements of future multimedia broadband services. ZTE has already deployed over 3 million subscriber broadband units for BSNL. Eighty percent of the networks equipped with these units use ADSL2+; the remaining 20 percent use VDSL2+. ZTE will command 40 to 45 percent of BSNL’s DSL market share.

15 August 2011, Shenzhen ― ZTE announced that it has signed a contract to provide Reggefiber with power supply equipment. R e g g e f i b e r i s t h e l e a d i n g constructor and operator of fiber networks in the Netherlands.

Z T E w i l l s u p p l y uninterruptible power supply (UPS) solutions for Reggefiber’s points of presence (POP) sites

over the next four years. Reggefiber aims to build more than 200 new POP sites in the Netherlands annually. Compactness, high efficiency, and high reliability are the key benefits of ZTE’s UPS solutions. After conducting tests, Reggefiber concluded that ZTE’s modular UPS solutions solve problems associated with space, efficiency, and reliability and will assist Reggefiber in saving TCO. Modular UPSs are a trend in telecommunications because they are easy to expand and maintain.

18 August 2011, Shenzhen ― ZTE announced it has designated ZTE India as the company’s global experts resource hub.

ZTE India is a wholly owned subsidiary of ZTE Corporation and will serve as a key technical resource provider for ZTE’s operations and subsidiaries in other countries as the company continues to scale up its global growth. To date, 200 ZTE India employees have been deployed to company projects in Africa, Europe, Hungary, Turkey and the UAE. The company aims to have 2000 employees at the center in two years.

ZTE Introduces Industry’s First UWB Dual-Mode RRU

ZTE and Reggefiber Sign Power Supply Equipment Contract

ZTE India Establishes Global Experts Resource Hub

ZTE Partners with BSNL to Enhance Broadband Connectivity in India

Product increases spectral edge frequency by more than 30%

Center aims to expand ZTE’s technical expertise to key global markets

Tie-up includes contract to deploy 3 million subscriber broadband units

October 2011

29ZTE TECHNOLOGIES

Company sees 400% increase in smartphone sales, 300% US market growth

9 August 2011, Shenzhen ― ZTE today announced that it shipped 60 million terminal products, including 35 million handsets, in the first half of 2011. This is approximately 30% increase year-on-year in total handsets shipped worldwide. Smartphone sales increased 400%, and the US market grew 300% year-on-year.

Following the announcement of ZTE’s innovative smart terminal strategy, sales of smart terminals reached five million in the first half of 2011, a 400% increase year-

on-year. In 2011, ZTE Blade also became one of the world’s top-selling smartphones. Through partnerships with approximately 80 operators, ZTE Blade is now available in nearly 50 countries and regions. Daily sales of Blade in China are the nation’s highest for Android smartphones, averaging 16,000 units per day. ZTE has now sold 2.5 million Blade handsets globally and expects to break the five million mark this year. ZTE also aims to ship 12 million smart terminals in the second half of the year.

Revenue in Europe and America grows 62%

ZTE Records 21.52% Increase in Revenue to RMB37.3 Billion in First Half 2011

ZTE Ships 35 Million Handsets in First Half of 2011

30 August 2011, Shenzhen ― ZTE today announced a 21.52% increase in operating revenue to RMB37.337 billion for the six months ended June 30, 2011.

Based on HKFRS, interim net profit fell 12.33% to RMB769 million. Basic earnings per share amounted to RMB0.27.

In China, ZTE reported that operating revenue increased to RMB16.527 billion, 44.26% of ZTE’s total operating revenue for the first half of 2011. Although there was a slowdown in overall investments in the domestic telecom industry, ZTE grew operating revenue by improving the competitiveness of its products and by expanding market share for wireless,

data communication, terminal, and other products.

During the first half of 2011, the international part of ZTE Corporation reported an operating revenue of RMB20.810 billion, 55.74% of its total operating revenue and representing year-on-year growth of 36.41%. Strength from the international market was the key driver for the rapid growth in the first half of 2011. ZTE’s diligence in developing international markets was demonstrated in a variety of ways. While gaining market share in emerg ing marke ts , ZTE a l so continued to make large-scale alliances with global mainstream carriers by

cooperating on different products. This helped boost revenue from the international business.

Europe and America were the fastest-growing regions among the top three overseas markets, rising 62% to RMB8.99 billion and accounting for 24.1% of ZTE’s entire revenue. ZTE Asia-Pacific (excluding China) accounted for 18.2% of revenue, and Africa accounted for 13.4% of revenue.

ZTE registered year-on-year revenue growth of 8.01% for carrier networks, 43.96% for terminal products, and 42 .29% fo r t e l ecommunica t ion software systems, services, and other products during the period.

30 ZTE TECHNOLOGIES