splendid ten years for access products · the face of full-scale competition the restructuring of...

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Splendid Ten Years for Access Products— ZTE Fixed-line Success Stories

www.zte.com.cn

The ten years from the end of the 1990s to now witnessed torrid development of access networks in the telecommunications industry, saw the arduous journey took by ZTE to transform from a switch manufacturer into a full-service equipment supplier, and testified ZTE’s development from creating the “flexible access layer network” concept to becoming the best cooperation partner for operators across the globe in large-scale deployment of optical access networks.

Broadband users worldwide expect a tenfold increase in data rates in every five years, which constitutes a unique “Moore’s law” of the telecommunications industry. User demand and technological development are the driving forces of the growth of communications networks. In the past ten years, user demand has evolved from the initial simple communications services into the current highbandwidth integrated services of data, video and voice as well as fixed-mobile convergent services. In the light of ever changing user demand, access technologies took a path from independent development to exploiting complementary advantages to eventual full-IP integration. In these developments, the access layer network, which is “the closest to the user”, witnessed the brand-new experiences brought to users by its technological innovations.

Higher bandwidth and density, longer reach, lower TCO, more environmentally friendly equipment are currently the most commonly cited requirements of access layer networks. To meet these requirements, operators across the

world are carrying out “Fiber In/Copper Out”, “broadband acceleration”, and FTTx network projects to adopt lower-cost equipment to build broadband networks that are capable of sustainable operation and provide users with varied colorful services.

Having acutely sensed these scorching developments, ZTE draws on its flexible customization capability to launch a range of solutions for various scenarios, such as MSAN integrated access solutions for bearing broadband and narrowband services on a unified platform, FSAP solutions for building high-speed broadband networks, FTTx solutions that deliver up to 1Gbps bandwidth right to the user, and operable, manageable network O&M solutions for the access networks. These solutions are the right answer to building access layer networks that provide “flexible” service access and address operators’ needs to fast build networks and fast turn profit and also better integrate legacy and future networks. Based on these solutions, ZTE assisted China Telecom in building the largest FTTx network in the world; joined with China Unicom and China Mobile to construct premium networks and implement network transformation; built an energy-saving, environmentally-friendly green network for Telecom Italia; helped Telecom Argentina S.A. to realize leapfrog developments; provided Turnkey services for ETC of Ethiopia to develop its national information network; offered customized services for a number of operators including PCCW in Hong Kong and MGTS in Russia….

PON will be the superstar in the future development of access layer networks. Thanks to sustained investment and in-depth operation in PON products, ZTE has accumulated rich experience in FTTx network construction and acquired a full range of network delivery capabilities from network planning to network deployment. ZTE GPON + VDSL2 won the InfoVision award in Broadband World Forum Europe (BBWFE) 2007, and ZTE ZXDSL 9806H grabbed the “Best Green Innovation” award presented by the International Engineering Consortium (IEC) at SOFNET forum in 2008. ZTE PON products currently are the Chinese market leader and have been widely applied in developed countries and regions including Italy, the Netherlands, Saudi Arabia, and Hong Kong.

Continuous development makes ubiquitous access layer networks. Thanks to diversified access modes, access layer networks are moving towards having higher bandwidth, providing services more conveniently, incurring lower construction costs, and consuming less energy. It will not be a dream for access layer networks to “provide users with any service anytime anywhere in any way”. More ten years that are more splendid are waiting for ZTE. Through its constant technological innovation, ZTE will help operators deliver better service experiences to users. A bright future for both of us will not hinge on our “success”. Rather, it will hinge on yours.

� ZTE Fixed-line SUCCESS STORIES �ZTE Fixed-line SUCCESS STORIES

Contents

FULL-SERVICE ACCESS

PERFECT TRANSFORMATION THROUGH FIBER IN/COPPER OUT

——ZTE HELPS CHINA TELECOM FORGE FULL SERVICE ACCESS FTTX NETWORK

BROADBAND NETWORK AS CORNERSTONE OF FULL SERVICE OPERATION

——ZTE HELPS CHINA UNICOM WITH BROADBAND UPGRADE AND ACCELERATION

NETWORK TRANSFORMATION BRINGS NEW OPPORTUNITIES FOR DEVELOPMENT OF TM

——INTEGRATED ACCESS SOLUTION SHINES WITH TM

CREATING NEW FIELD OF “FOUR NETWORKS IN ONE" IN SERVICE OPERATION

——MSAN SERVES PCCW

FIXED-MOBILE CONVERGENCE ASSISTS IN FULL SERVICE OPERATION

——ZTE’S FTTX HELPS CHINA MOBILE JIANGSU BRANCH TO IMPLEMENT FULL SERVICE ACCESS

RISING TO NEW LEVEL OF FIXED-MOBILE CONVERGENCE

——FTTX BEARING SOLUTION HELPS CHINA TELECOM SHANGHAI CORPORATION TO FAST DEPLOY

CDMA BASE STATIONS

FORGING NEW-TYPE NETWORK THROUGH INNOVATION AND COOPERATION

——ZTE FTTX HELPS SHANGHAI MBT CARRY OUT BIDIRECTIONAL NETWORK RECONSTRUCTION

“NERVE ENDING” OF QUALITY BROADBAND NETWORKS

——ZXDSL MODEM

APPLICATION SCENARIOS

SPREADING WINGS OF FTTX AND FLYING TO DREAMED LIGHT-SPEED AGE

——ZTE ASSISTING CHINA UNICOM HENAN BRANCH IN BUILDING NEW-GENERATION ACCESS NETWORK

OPTIMIZING INVESTMENT AND CUTTING ENERGY CONSUMPTION

——TI BUILDING ECONOMICAL ENERGY-EFFICIENT NETWORK

AT THE FOREFRONT OF FIBER IN / COPPER OUT

——ZTE ASSISTING CHINA TELECOM SHANXI CORPORATION IN CONSTRUCTING FTTX PILOT OFFICE

FTTX SHOWING STRENGTH IN RURAL AREAS

——CHINA TELECOM ANHUI CORPORATION CREATING NEW CONSTRUCTION MODE OF FTTV

INTEGRATED FIXED-LINE SOLUTION HELPING ETC TO MAKE RAPID PROGRESS

——NEW-GENERATION TURNKEY PROJECT FROM NETWORK CONSTRUCTION TO TALENT TRAINING

PERFECT INTEGRATION BETWEEN BROADBAND GROWTH AND USER EXPERIENCE

——TELECOM ARGENTINA MAKING PROGRESS IN LEAPS AND BOUNDS

INTEGRATED NETWORK MANAGEMENT

CARRY THROUGH HIGH-QUALITY SERVICE

—— ZTE ASSISTING OTE IN BUILDING EFFICIENT INTEGRATED NETWORK MANAGEMENT

A BRAND COMING FROM PURSUIT OF PERFECTION

—— CHINA TELECOM ZHEJIANG CORPORATION BUILDING EFFICIENT FTTX NETWORK OPERATION

SUPPORT SYSTEM


Perfect Transformation through Fiber In/Copper Out——ZTE Helps China Telecom Forge Full Service Access FTTx Network

Full-Service Access

In 2008, after a restructuring of China’s telecommunications industry, China Telecom was

granted a license to operate a CDMA network, formally becoming a full service operator. As one of China’s three integrated telecom operators, China Telecom operates the biggest fixed-line network in the world. By the end of 2008, it had 214 million fixed phone users, nearly 30 million mobile phone users, and 47.18 million broadband users.

China Telecom: transformation towards full service operation in the face of full-scale competition

The restructuring of China’s telecom operators produced a pattern in which the three integrated operators China Telecom, China Mobile, and China Unicom go head to head on all fronts. Escalation of competition in telecom service operation and continuing decline of traditional voice services are an important factor in the decrease of yields of fixed networks. Drastic cuts in mobile phone tariffs and the change from “two-way charging” to “one-way charging” accelerate fixed-mobile

substitution. Meanwhile, the issuance of mobile 3G licenses enables mobile bandwidth to steal users from the low-rate bandwidth offered by China Telecom’s fixed network.

Red-hot competition brings about an urgent need of full service operation. China Telecom badly needs to improve users’ service experience and awareness and fast deploy integrated wired and wireless services. Against this backdrop, China Telecom formulated a far-sighted network transformation strategy whose main component is Fiber In/Copper Out. By building an FTTx network, China Telecom hopes to increase access bandwidth and implement multi-service operation. Moreover, a key objective of the operator’s Fiber In/Copper Out strategy is to fulfill its corporate social responsibility by reducing overall TCO, saving energy, and cutting emissions.

ZTE helps China Telecom successfully transform into full service operator

ZTE enjoys an all-around strategic partnership with China Telecom and is its important xPON equipment supplier. Through flexible, diversified, and close cooperation including standards discussions, interoperability testing, pilot application, and high-level exchanges, ZTE tailor-made a total FTTx Fiber In/Copper Out solution for the operator.

The solution is based on an OLT platform for unified access of EPON/GPON/10G EPON and uses EPON for network construction and access. It effectively saves optical fiber resources and construction investments and achieves China Telecom’s transformation goal of making access optical. In addition, the system can smoothly evolve towards 10G EPON and has adequate expansion space, well protecting

Customer requirements● Advance Fiber In/Copper Out as quickly as possible, provide high access

bandwidth, improve user experience, and get a head start in competition. ● Reduce O&M costs, cut OPEX, and boost ARPU. ● Carry out full service operation to enhance network competitiveness and

display network value.

Solution● EPON/GPON/NG-PON-based integrated FTTx solution that meets the

customer’s requirements.● Integrated O&M management solution to boost network competitiveness

that is based on network operation.● Plan an access network that is capable of smooth evolution and sustainable

development based on the industrial chain and with future requirements in mind.

● Draw on outstanding ability to execute a comprehensive project to help the operator in building a high value network.

Customer benefits● A differentiated network construction plan ensured fast deployment of

broadband services and high speed growth of user numbers while giving the customer a head start in the Fiber In/Copper Out process.

● Network transformation and integrated operation improved the customer's full service operation capability.

● Through systematic operation that involved standard setting, testing and commercialization, the customer built a world-leading FTTx network, forged a leading brand image, and enhanced its good reputation among users.

network and equipment investments.

Revolving around China Telecom’s strategic goal of “broadband acceleration", ZTE integrated multiple technologies including LAN/xDSL/WiFi /POTS/CATV and provided serial customized ONU terminals including MDU/MTU/SBU/SFU/HGU to suit a number of application scenarios including FTTB/FTTO/FTTH/FTTV/FTTCab. By providing multi-service access for VoIP/HSI/IPTV/E1, the solution implemented fixed-mobile convergence and effectively supported China Telecom in building its “One Home”, “Business Navigation” and “E-Surfing” brands.

In the light of the passivity of PON and the distribution of a large number of devices deployed in corridors and outdoors, ZTE actively researched measures to reduce TCO, save energy and cut emissions. As a result, ZTE was able to offer an integrated O&M management plan that involves automatic service delivery, automatic fault location, and early warning; a multi-level power control plan; and an environmentally-friendly, energy-saving product design. Backed by these offerings, ZTE successfully built a brand-new green optical access network for China Telecom.

China Telecom successfully builds a world-leading FTTx network

In 2005, China Telecom started to explore the construction of Fiber In/Copper Out and initiated EPON pilots in the four provinces/municipalities of Guangdong, Shanghai, Hubei and Beijing. In 2006, it achieved chip-level interoperability of EPON and formulated its enterprise standard for EPON. In 2007, it initiated equipment-level interoperability testing of EPON. In August 2007, it launched its first group purchase of EPON equipment and started large-scale application. In 2008, it further improved its technical

standard for EPON according to network construction experience and expanded its FTTx construction scale. In 2009, it started to formulate its 10G EPON specification, which is a standard for EPON network evolution.

By the end of 2008, China Telecom had built a nationwide EPON network with a user scale of over 10 million that covers 31 provinces, autonomous regions and municipalities, achieving a perfect network transformation. By then, broadband access had become the first driving force of China Telecom’s business growth. In 2008, its revenue was RMB 43.7 billion, an increase of 29% over the same period of the previous year, and broadband access revenue accounted for 50% of value-added service.

China Telecom made noticeable contributions to the setting and perfection of standards on xPON technology and equipment. Since its optical access users grow fast, it has gained much attention and respect of operators across the world and become the object of their study and research.

Cooperation brings win-win progress. As China Telecom carries out its Fiber In/Copper Out strategy on a large scale and as EPON/10G EPON application advances, it now can be seen that the development of xPON technology fully agrees with China Telecom’s bandwidth development objective (that is, to provide 10~20M bandwidth for each household by 2010 and 40~100M bandwidth by 2015). China Telecom is smoothly implementing its broadband acceleration plan along the path of EPON/10G EPON, which guarantees smooth migration of legacy equipment, protects existing investments, enables fast development of services, and gives a crucial support in competition of the full service era.


Customer requirements● In network transformation, advance dual-network integration and build a

network oriented to full service operation. ● Amid increasing competition in the broadband access segment, raise the

overall competitiveness of the broadband fixed network.

Solution● Put forward an overall FTTx integrated service access solution that

incorporates Fiber In/Copper Out to raise broadband access rate. ● Well-rounded series terminal and customized solution to meet user

requirements in various scenarios. ● Industry-leading NG-PON solution to fully carry future network development.

Customer benefits● FTTx network construction improved the customer’s full service operation

capability, attracted more types of users, and helped the customer in operation transformation.

● A competitive upgraded and accelerated network was forged, which improved user awareness and experience and increased ARPU.

Broadband Network as Cornerstone of Full Service Operation——ZTE Helps China Unicom with Broadband Upgrade and Acceleration

In 2009, China Unicom launched its “Broadband Upgrade and Acceleration" project to increase

the bandwidth of its broadband network and boost its competitiveness.

Market competition prompts China Unicom to carry out its broadband upgrade and acceleration project

After the restructuring of China's telecom industry, the three operators have engaged in fierce competition with each other on all fronts. In a battle field of no smoke, victory means survival and growth while defeat means shrinkage of market share, and broadband holds the key.

Full-Service Access

Broadband business had become one of the main growth-driving forces of China Unicom, but its traditional fixed network broadband was mostly based on copper cable technology which only delivers 512 K ~ 2 M bandwidth for each user. With the development of 3G, the shared bandwidth of China Unicom’s WCDMA network will reach 3.84 M. In the light of its own conditions and the external competition environment, China Unicom must decide how to position its own fixed network broadband and 3G broadband. On that basis, it must implement a broadband upgrade and acceleration strategy to fast increase the bandwidth of its fixed network and thus boost its competitiveness.

ZTE assists China Unicom in implementing its “Broadband Upgrade and Acceleration" strategy in every aspect

As China Unicom’s foremost strategic partner, ZTE provided comprehensive support in its implementation of the broadband upgrade and acceleration project by offering a mature integrated EPON solution.

China Unicom faced different competition patterns in the northern and southern provinces, application requirements in cities were vastly different from those in rural areas, and technical plans for new construction areas and reconstruction areas were also different. Taking different application requirements into consideration, China Unicom and ZTE closely cooperated in overall planning and tailor-made 14 application modes for different scenarios, including FTTH/FTTO, P2P/EPON+FTTB/LAN, P2P/EPON+FTTB/DSL, FTTC, WLAN coverage, base station coverage, and DSLAM moving down.

In mobile network deployment, ZTE

creatively put forth an xPON bearing-based base station coverage solution according to China Unicom’s business development requirements. ZTE’s xPON solution is based on China Unicom’s ubiquitous fixed broadband network and offers TDM service + data service bearing functionality through xPON. It well supported China Unicom’s fast deployment of its 3G network, helping the operator to better cope with competition.

In addition, ZTE also provided an industry-leading 10G EPON solution which fully inherited and was compatible with the legacy EPON network. The solution enabled smooth evolution of the legacy EPON network and improved the bandwidth of China Unicom’s broadband network so that it could meet the requirements of service development.

Cooperation turns China Unicom into an emerging force in the broadband market

By implementing a broadband upgrade and acceleration project that focused on an EPON solution, China Unicom achieved a substantive transformation of its fixed broadband network. Its broadband access network gradually shifted from one that focuses on copper cables to an optical access

network that focuses on EPON, suiting the sustained evolution of the next-generation network. After EPON smoothly migrates to 10G EPON, network bandwidth can increase tenfold without changing the existing network architecture.

In provinces where China Unicom has implemented broadband upgrade and acceleration, such as Shandong, Henan, Beijing, Hebei, Shanxi, Liaoning and Zhejiang, while maintaining its ability to provide 2M bandwidth for all users, China Unicom now is capable of delivering 4M, 8M, 16M or even higher bandwidth as demanded, thus meeting different service requirements of different users. Increased bandwidth greatly improved users’ awareness, experience and satisfaction of broadband services and burnished China Unicom’s service brand. A higher ARPU increased the operator's yields and supported its growth.

According to China Unicom’s plan, implementation of the broadband upgrade and acceleration project will bring it RMB 49.6 billion in broadband business revenue and a 40 percent market share in 2011. Thanks to cooperation, China Unicom will develop by leaps and bounds in the broadband segment.


Customer requirements● Follow the network development trend to transform into an NGN network. ● Fast deploy a broadband network to enhance the loyalty of fixed network

users.

Solution● An IP + TDM integrated access solution which meets network conditions and

service requirements is capable of evolving synchronously with the future network and conforms to the full-IP network development trend.

● Flexible networking capability suits various application scenarios, simplifies network planning, and allows fast deployment of the network.

● Customized outdoor cabinets suit a harsh tropical environment and lower site selection requirements.

Customer benefits● The network construction plan is based on the existing network conditions to

lower construction costs. ● Flexible networking capability and super adaptive outdoor cabinets allow the

customer to fast carry out broadband services to meet the requirements of a high growth market, increase ARPU and get a head start in competition.

● The network is scalable, protecting legacy investment in the foreseeable future.

● Network flattening simplifies network architecture, facilitates management, and cuts operation costs.

Network Transformation Brings New Opportunities for Development of TM——Integrated Access Solution Shines with TM

its low tariffs. The superb mobility of wireless 2G/3G networks and the diversified service capabilities they offer also pose formidable challenges for traditional fixed network services. On the one hand, ageing TDM switches and multiple service access platforms increase O&M costs. While on the other side, it is difficult for new services to be implemented on the traditional TDM platform even though users have increasingly strong demand for high-speed broadband Internet. This leads to a high user churn rate and difficulties in signing up new users. In 2005, TM suffered a 0.08 percent year-on-year drop in its fixed-line business revenue and began to feel increased heat of competition.

Against this backdrop, a revolution was brewing for the traditional fixed-line telecommunications sector, and IP-based integrated access that bears high speed broadband services became the choice of numerous operators including TM. It was then imperative for TM to introduce an integrated access platform that could both inherit traditional services and deliver high speed broadband services.

The integrated access solution helps TM develop broadband services

Telecom Malaysia (TM) is the largest fixed network operator in Malaysia and the second

biggest multinational operator in Southeast Asia. In addition to traditional fixed-line voice services, TM also owns mobile subsidiary Celcom and multinational subsidiary TMI. In Malaysia, TM has 4.5 million narrowband users and 1.3 million

broadband users.

Full-IP network development has a huge impact on TM’s traditional PSTN operation

As a result of the rapid development of emerging Internet services, IP-based Internet telephony is eating away at traditional TDM services with

Full-Service Access

Against this background, in 2005, TM initiated a project for an integrated access platform that converged multiple narrowband and broadband services. ZTE, drawing on its unrivalled technical strength and customized service advantages, clinched a 250,000-line MSAN integrated access contract.

ATM or IP?

In 2005, there was still a dispute in the industry over whether to use ATM or IP technology to bear data services. For data services, both technologies meet application requirements. However, could they protect investment? Did they conform to technical trends? Did they provide an optimal-cost solution? An IP + TDM dual bus integrated access platform supported and inherited traditional TDM services while also well supporting IP-based broadband services including high speed Internet, multicast, video and IPTV. This enabled it to lay a solid network foundation for TM to develop broadband users.

The MSAN integrated access solution well inherited TM’s traditional services and provided non-standard interfaces needed to interconnect with traditional switches. More importantly, it supported the development of high bandwidth broadband services.

ZTE’s integrated access platform has a built-in integrated service scheduling platform to provide overall scheduling and reliable transmission for TM’s traditional narrowband voice and data services and broadband services, sparing the operator the need to deploy additional transmission equipment. The built-in integrated service platform can be flexibly built into multiple topologies, including star, ring, and tree topologies, which allowed TM to easily, fast deploy its access network.

Effective investment protection solution

ZTE’s MSAN integrated access platform could smoothly upgrade to MSAG, allowing TM to directly deploy MSAN into NGN or even IMS. This fully complied with the requirements of smooth network evolution and effectively protected legacy investment.

Adaptability is crucial

Malaysia is a tropical country where the high temperature, high humidity and rainy season posed a big challenge for outdoor deployment of the integrated access platform. To cope with this problem, ZTE tailor-made new rain- and water-proof cabinets for TM that could resist high humidity and high temperature.

Effectively reduced operation costs and sustained growth in profits

ZTE’s integrated access platform enabled unified access of narrowband and broadband services. In addition, its unified Network Management (NM) platform was capable of effective management of Network Elements (NEs) and its line detection system could accurately locate network faults. All these effectively reduced O&M costs, stemmed the turnover of voice users, and helped TM fast sign up broadband users. Amid the global financial crisis, TM’s profits achieved sustained growth, cementing its leadership position in Malaysia’s telecom market.

TM’s annual report 2008 shows that its operating profit for 2008 increased 4.6 percent year on year to 8.46 billion Ringgit. Not only was the decline in its fixed-line voice user numbers stemmed, its broadband users increased 26.7 percent year on year to 1.6 million. (Data source: TM's annual report 2008)

ZTE’s efficient response to customer requirements, stable equipment running capability, prompt logistical delivery capability, fast network building capability, and satisfactory after-sales services won high praise from various departments of TM. In TM’s MSAN construction project from 2006 to 2009, ZTE was its most important partner in integrated access construction.

In September 2008, TM formally signed a High Speed Broadband (HSBB) contract with the Malaysian government. In the next ten years, the Malaysian government and TM would co-fund a project to use xPON technology to build an FTTx high speed broadband network that delivers broadband access services to 1.3 million users. As TM’s strategic partner, ZTE is also actively participating in the HSBB project and striving to contribute to the development of Malaysia’s high speed broadband network.

10 ZTE Fixed-line SUCCESS STORIES 11ZTE Fixed-line SUCCESS STORIES

ZXSMG 5200 includes series of indoor and outdoor cabinets (such as ZXMSG 5200 and ONU100) to adapt to different site environments. ZXMSG 5200, as an integrated access platform for all kinds of interfaces,

realizes unified platform, unified construction, unified service provision and unified maintenance so that it greatly reduces both the CAPEX and the OPEX for PCCW.

ZTE’s ZXMSG 5200 has been running in a stable and reliable manner to provide legacy POTS line service. We are satisfied with ZTE’s technical support and after-sales service.

——Leader of PCCW’s softswitch and integrated access project

“Quadplay” allows various services to flexibly switch between mobile and fixed networks. The user can use different terminals to enjoy the data streaming services brought by a broadband network. Service operation through “Quadplay” requires perfect coordination between network equipment suppliers and PCCW as well as solid strength in R&D and commercial delivery.

Thanks to strong R&D capability, fast response and an outstanding solution, ZTE won the trust of PCCW. It became the operator’s strategic partner in its “Quadplay" project as the supplier of core softswitch and integrated access equipment.

Starting from 2006, ZTE cooperated with PCCW in fixed-network optimization. PCCW’s overall requirements for fixed-network reconstruction were building a fixed network centered on IP technology and oriented towards NGN that could provide integrated services of data, voice and streaming and connect end users through one platform.

In the core layer, the original layout where the services and control of PSTN were combined was changed; softswitch technology, which is based on IP technology, was used to separate service control from bearing, vastly improving the service delivery capability of the fixed network. In the

access layer, the ZXMSG 5200, an MSAN device based on an IP + TDM dual core, was employed to build an integrated service assess platform that simultaneously delivers narrowband and broadband services through one system. Considering that equipment room space and labor costs are a big challenge in Hong Kong, ZTE’s equipment has a large user capacity, is highly reliable, occupies a small area, and is flexible in configuration. It can be directly deployed at the user side as outdoor cabinets, drastically reducing dependence on equipment rooms and cutting PCCW’s OPEX and CAPEX.

PCCW’s fixed-network reconstruction project was completed and put into commercial use in June 2007. It has now offered integrated service access for over 100,000 users, making PCCW’s “Quadplay” service available to users in the wider region. As a large number of PSTN switches were replaced by the ZXMSG 5200, PCCW was able to cut a large number of equipment rooms and much occupied land in Hong Kong, which shortened the distance between access equipment and users and saved copper cable resources.

Meanwhile, PCCW's access layer network was improved on bandwidth provision capability, “Quadplay” and “NOW” service deployment.

PCCW reaps stable yields from its “Quadplay” strategy

Benefiting from the “Quadplay” strategy, PCCW has achieved strong growth in yields for its core business. By December 31, 2008, its core yields rose 7 percent to HK$22.008 billion. In the meantime, PCCW successfully maintained its leading position in the fixed voice market, with user numbers rising to 2.603 million, a 1 percent increase over 2007. Its broadband users reached 1.302 million, a 5 percent year-on-year gain, and its IPTV technology-based NOW broadband TV users rose to 953,000, an 8 percent year-on-year increase. (Data source: PCCW’s annual report 2008)

Creating New Field of “Quadplay" in Service Operation——ZTE MSAN PCCW

Customer requirements● Realize “Quadplay” and deliver a better service experience to users. ● Look for business partners to seek long-term development.

Solution● Brand-new “Quadplay” solution that is based on IP + TDM integrated access. ● Bearing of the existing services is supported, and customized new functions

are added.

Customer benefits● New services are fast deployed to increase ARPU. ● The network is optimized to provide quality services to users and maintain

the customer’s leadership position.

more robust demand for streaming services, PCCW formulated a “Quadplay” strategy which means the same information or entertainment content, application software, and transaction service can cross four platforms as needed – fixed network, broadband Internet, mobile telecommunications, and TV – and be delivered to the user. The user can decide how to use them in a way that fits his/her preferences and lifestyle.

It is very difficult for traditional PSTN to implement “Quadplay” and offer new services without full-IP network reconstruction. In light of this, PCCW chose to adopt NGN technology to upgrade and reconstruct its fixed network. To offer users a better experience of new services, PCCW selected MSAN from a number of options to replace its existing access equipment so that it could provide multi-service access on a unified access platform and lower O&M costs.

ZTE assists PCCW in implementing “Quadplay”

As a brand-new technical innovation,

Hong Kong, the “Oriental Pearl”, is a world-famous freewheeling and dynamic

metropolis. PCCW is the jewel of Hong Kong’s telecom industry for its leadership in the territory’s fixed-line market. It operates over 2.5 million business and residential lines. Its Everywhere brand offers stable, reliable Internet broadband services, allowing it to grab the biggest share of the local broadband market with 1.3 million individual and business users. Its IPTV-based NOW broadband TV services have signed up more than 1 million users.

Fierce competition prompts PCCW to choose “Quadplay”

Hong Kong is one of the most competitive telecom markets in the world, with all its telecom services opened up for competition. In this island territory of just a 7 million population, 15 telecom operators vie for business.

How could an operator maintain its leading edge in such fierce competition? In light of the conditions of the wireless and fixed networks it operated and considering the ever Figure 1 Development of PCCW’s Network Users in 2007 – 2008

Full-Service Access

1� ZTE Fixed-line SUCCESS STORIES 1�ZTE Fixed-line SUCCESS STORIES

Customer requirements● Full service operation with fixed-mobile convergence. ● Look for fast access for small base stations in the 3G era.

Solution● EPON technology-based accurate E1 bearing. ● Expandable full service access solution for fixed-mobile convergence.

Customer benefits● Small base stations cover bearing application and fast improve signal

coverage. ● Full service bearing capability attracts access by VIP customers and

establishes an image of full service operator. ● 3G indoor coverage expansion capability protects network investment and

reduces TCO.

China Mobile Jiangsu Branch is one of the strongest provincial-level branches of China Mobile

and has always stayed in the forefront within China Mobile in terms of growth. It is all along focused on development in the mobile communications field and advancement of the social informatization process.

With an outstanding foresight, China Mobile Jiangsu Branch was well aware that full service operation would be the direction for telecom operators. After fully analyzing its network conditions and full service operation requirements, China Mobile Jiangsu Branch selected EPON, which was mature in commercialization, to bear mobile base stations, synchronously construct fixed network service access, and fast deploy the fixed network. This move set an example

of a mobile operator developing fixed-line user access and put China Mobile Jiangsu Branch in a leading position in this segment in China.

China Mobile Jiangsu Branch strives for perfect fixed-mobile convergence in the full service operation era

In line with China Mobile’s big strategy of full service operation, China Mobile Jiangsu Branch needed an advanced access network bearing technology to build and commercialize new-type broadband access on a large scale and to bear such services as WiFi wireless city, high speed broadband access, and high definition video. In addition, wireless access in public indoor areas is an important application scenario for the operator’s TD network.

With its signal coverage kept improving, China Mobile Jiangsu Branch had been focusing its research on how to solve the problem of indoor coverage and access for small base stations through a convenient, fast, stable, and low-cost solution. After network coverage was dealt with, the operator also needed to work out how to fully utilize pipe, cable and optic fiber resources to flexibly, conveniently provide access for fixed-line VIP and high-value-added individual users.

Indoor coverage by base stations needs to deal with the following issues:

● Easy access Fast improve coverage of indoor and sparsely populated areas and conveniently provide high accuracy access.

● Minimum effect of cutover of micro base stations

Micro base station access for indoor coverage needs to avoid frequent ring network cutover and affecting the application of other base stations.

● Integrated with fixed-network access to deliver higher transmission bandwidth

Since base stations simultaneously bear voice and data services, requirements of high-bandwidth data services for access bandwidth need to be considered.

The following issues need to be

Fixed-Mobile Convergence Assists in Full Service Operation——ZTE’s FTTx Helps China Mobile Jiangsu Branch to Implement Full Service Access

Full-Service Access

addressed to provide access for fixed-line users:

● Network coverage can be flexibly, fast deployed.

Access coverage of the GSM network needs large quantities of access optic fibers, pipes and cables, and these resources can be fully used to flexibly connect VIP and enterprise users synchronously.

● Sustainable high-bandwidth provision capability

When service bandwidth keeps increasing, access layer network resources also need to be capable of increasing and providing bandwidth “along with demand” to implement full service operation.

● Easy to maintain and manage The maximum customer value should be obtained through the lowest cost without impacting on existing network maintenance and management costs. The basic network requirements for mobile coverage and fixe-line access are the same, so this part of resources can be fully used and properly planned to create more commercial value.

ZTE’s EPON helps China Mobile Jiangsu Branch with full service operation

Why should China Mobile Jiangsu Branch choose an FTTx solution that used EPON as the technological core in its attempt to provide mobile and fixe-line full service operation? What were the advantages and characteristics of EPON technology in service bearing, clock synchronization, and O&M management? All these doubts were removed after EPON base station access and VIP customer access were successfully implemented. Implementation of full service operation by China Mobile Jiangsu Branch showed that the EPON access solution also had adequate development space in the mobile network market.

● Accurate TDM service functionality of EPON

In EPON, clock synchronization between OLT and ONU is highly accurate and fully meets the clock requirements of base stations. In 2007, Jiangsu adopted ZTE’s EPON solution to cover service areas and provide access for outside-Base Station, M-Zone business halls (M-Zone is a mobile service brand of China Mobile), microcell base stations and agent stores. It has since been stably bearing TDM voice and GPRS data services for the base stations of the “Jiangning University Town”.

● Base station access and network coverage

EPON’s characteristics of long transmission distances and low network maintenance costs give it an advantage in base station access and coverage. China Mobile Jiangsu Branch has used EPON to implement access for over 1,000 base stations and microcells. Its overall network running is stable and the network coverage rate is further improved.

● Full service development At the same time, win-win new service application modes based on EPON bearing, including integrated community access, WLAN wireless city, streaming video ad push, and VIP customer access, laid the network conditions of fixed-line and mobile full service operation for China Mobile Jiangsu Branch.

EPON bearing is the choice of indoor coverage in the 3G era

As deployment of GSM networks improves and 3G networks are gradually constructed, operators need to deploy a large number of soft base stations, micro base stations, and Femtocell equipment to deliver services to users, especially in cities where users are concentrated. The base station bearing of China Mobile Jiangsu Branch’s GSM network provided a suitable complementary coverage mode for its 3G network. The accuracy of time synchronization

between OLT and ONU of EPON can reach 0.1 us (100 ns), fully meeting the time synchronization requirements of base station bearing of the TD-SCDMA network.

At the same time, China Mobile Jiangsu Branch deployed WLAN hotspot coverage on a large scale in hotspot business centers through PON bearing, which became a helpful supplement to TD-SCDMA network access in the 3G era. The high bandwidth of the EPON network boosted a number of commercial services such as electronic video advertising and high definition videoconferencing. Currently China Mobile Jiangsu Branch broadband access is signing up premium users, such as VIP customers and hotels as well as high-end home users in new upscale housing developments.

The EPON system is an effective supplement to a large-capacity transmission bearing system. Using an existing EPON network to bear micro base stations requires no additional investment in optic fibers, pipes and cables, thus effectively reducing construction costs. EPON’s technical maturity can be combined with the characteristics of TD base stations (no need for GPS, low costs, and high system security) to provide China Mobile Jiangsu Branch with integrated service operation incorporating the GSM, 3G and fixed network, which delivers better TCO.

The following summary of EPON’s bearing of mobile TDM and data services by China Mobile Jiangsu Branch’s Network Dept. well reflects the present situation of wireless-fixed integrated network operation: “We began to use EPON to bear the base stations in Jiangning University Town in October 2007. So far the system has been running stably. The maturity of EPON and the stability of ZTE’s equipment have been well tested in this pilot, which also produced an effective micro base station bearing mode for China Mobile Jiangsu Branch.”


Customer requirements● Implement fast deployment of CDMA base stations at the initial stage of

network integration. ● Full service access after broadband acceleration allows “E-Surfing” and the

fixed-line services to grow side by side.

Solution● World’s first EPON-based CDMA base station bearing solution. ● Perfect protection capability provides reliable bearing for integrated services.

Customer benefits● As a new approach to base station bearing, CDMA base stations are fast

covered, reducing network construction costs. ● Capability of carrying out broadband services is enhanced, and network

competitiveness is boosted.

Rising to New Level of Fixed-Mobile Convergence——FTTx Bearing Solution Helps China Telecom Shanghai Corporation to

Fast Deploy CDMA Base Stations

million, accounting for 82 percent of Shanghai's market and turning Shanghai into the true “No.1 Chinese city” in terms of broadband coverage.

How to fast connect base stations in network integration?

After network integration, existing CDMA base stations were transferred to China Telecom Shanghai Corporation. There was a serious shortfall in transmission resources between most base stations and China Telecom Shanghai Corporation’s access equipment rooms. In addition, China Telecom Shanghai Corporation was about to carry out CDMA 1X expansion and subsequent EV-DO construction. All these required added transmission between BSCs and BTSs and further exacerbated

China Telecom Shanghai Corporation (SHTEL) ranks first within China Telecom

Group in terms of revenue growth

and business transformation. By the end of 2008, the fixed-line broadband users of China Telecom Shanghai Corporation had exceeded 3.5

Full-Service Access

OLT, as the central-office convergence equipment of CDMA base stations. The uplink protection function of two STM-1 is used between the ZXA10 C220 and the upper-layer SDH transmission network. After services are converged by the ZXA10 C220, they are connected to SDH equipment and then transmitted to the remote BSC.

On February 13, 2009, China Telecom Shanghai Corporation and ZTE jointly carried out successful cutover which enabled EPON to bear CDMA 1X services and EVDO high speed data services. Long-time continuous on-site calling testing showed that conversation quality was good, signals for voice services were stable, EVDO data services ran stably, actually tested rates were over 190 K, and online video play was smooth.

The successful going live of this trial commercial deployment marks a breakthrough in China Telecom Shanghai Corporation's exploration of fixed-mobile convergence. It also signifies an initial success of ZTE’s EPON service bearing solution in the 3G mobile communications field.

In the future, EPON technology will also enable the IP interfaces of 3G base stations to upgrade fast and seamlessly. Combination of EPON and Femtocell technologies will further explore the boundless potential of EPON technology.

Successful commercialization of this solution further expanded the scope of EPON's full service bearing capability and demonstrated EPON’s unrivalled value in a full service operation market.

Fixed-mobile convergence boosts China Telecom Shanghai Corporation’s brand image

China Telecom Shanghai Corporation’s innovative application of the EPON bearing solution greatly advanced its “E-Surfing” service, whose core characteristic is “convergence”. It elevated service bundling to unified bearing of the basic network; took the lead in applying the one-stop service mode of fixed, broadband, and mobile convergence; and met users’ information requirements in commerce, entertainment and life.

the insufficiency of transmission resources. The operator urgently needed to use existing network resources to tackle the transmission problem of CDMA base stations.

By implementing its “Fiber In/Copper Out" strategy, China Telecom Shanghai Corporation used EPON technology to fast provide coverage for 15 district offices. Therefore, if it could effectively use the powerful service bearing capability of EPON technology to provide CDMA base station bearing, it would greatly cut construction investments while drastically improving the service provision capability of its basic network.

Realizing the bearing of 3G base stations through EPON for the first time in the world

ZTE’s EPON solution offers full service access capability for data, voice, video and TDM. It provides well-rounded TDM service bearing capability through CES over EPON technology and delivers transmission performance indices that rival those of SDH equipment.

In China Telecom Shanghai Corporation’s CDMA base station service bearing solution, the base station equipment room uses ZTE's ZXA10 F429, which is an EPON SBU, as the access end equipment to provide E1 interfaces for CDMA base stations. The Central Office uses the ZXA10 C220, which is a large-capacity

China Telecom Shanghai Corporation uses ZTE’s EPON unified bearing solution for CDMA base stations to fast deliver rich, reliable, and convenient 3G (CDMA2000) and fixed convergent services, effectively

reducing our overall network constructing costs. This is an important means for China Telecom Shanghai Corporation to push ahead with the “E-Surfing” plan. We expect more long-term, in-depth and effective

cooperation with ZTE in this field

——Shanghai Telecom


Customer requirements● Bidirectional reconstruction of MBT’s network. ● Provide users with multi-service access.

Solution● The customized FTTX access solution suits various reconstruction scenarios. ● The integrated service bearing plan helps MBT to expand service types.

Customer benefits● After bidirectional reconstruction, the network lays a foundation for service

development and attracts access by more types of users. ● Broadband service capability is markedly improved and network value is

increased.

Forging New-type Network through Innovation and Cooperation——ZTE FTTX Helps Shanghai MBT Carry out Bidirectional Network

Reconstruction

network of MBT cannot meet users’ video requirements, let alone fit the operator’s strategy of developing broadband services on a large scale. It urgently requires bidirectional, broadband-oriented reconstruction. MBT's concern focuses on how to effectively utilize already deployed optic fiber and cable resources to improve its multi-service access capability and overall service capability.

ZTE’s customized FTTX solution assists MBT in improving business and services

After meticulous technical assessment, MBT eventually selected FTTX as the core technology for its bidirectional network reconstruction and launched its bidirectional reconstruction project in January 2009. Drawing on a deep understanding of optical access technology and rich experience in network projects and in light of MBT’s requirements, ZTE put forth an integrated solution of FTTX+LAN and FTTX+EOC (Ethernet Over Cable) to meet the service access requirements of multiple application scenarios. The networking diagram is as follows:

● FTTX+LAN solution: Fit for new

Shanghai Minhang Broadcast and TV Technology Development Co., Ltd. (MBT) is a joint

venture of Shanghai Minhang District CATV Center, Shanghai Broadcast and TV Information Industry Group, and Shanghai Guangtong Network Co., Ltd. It is responsible for CATV and broadband network construction, service platform establishment, and system promotion and operation in Minhang district. The Minhang broadband broadcast and TV network is the largest broadband Metropolitan Area Network (MAN) in Minhang.

While focusing on cable TV, MBT is also actively exploring how to provide

voice and data services to further meet the increasing data and video service demand of group users, industrial users, business users, and users of E-government and fixed-line bidirectional networks.

Multi-service demand spurs MBT to carry out bidirectional network reconstruction

MBT currently offers broadband services based on DOCSIS through cable modems. However, a DOCSIS network is a shared network where each user’s bandwidth is less than 100 K, which virtually does not support bidirectional video. The existing

Full-Service Access

residential neighborhoods or those neighborhoods where Category-5 cables can go into homes, this solution simultaneously provides broadband access and upstream information transfer of digital TV. By directly extending Category-5 cables into homes, this solution involves a small work load, little difficulty in construction, and low terminal costs, thus saving investments of MBT.

● FTTX+EOC solution: This solution is especially customized by ZTE for MBT for bidirectional CATV reconstruction for residential neighborhoods or those neighborhoods where Category-5 cables cannot go into homes. Using frequency division multiplexing technology, the solution simultaneously transmits IP data packets and CATV Radio Frequency (RF) signals through the same coaxial cable. Eventually at the client, the RF signals are separated and connected to the TV or digital Set Top Box (STB), and IP data signals are separated and connected to the computer. More importantly, this solution can provide enough service bandwidth for users of various application

scenarios, provide power supply and power backup plans such as AC/DC/POE/60V, and implement unified management of FTTX and EOC equipment, thus drastically reducing management and O&M costs and fully meeting operation requirements.

ZTE’s integrated solution for FTTX-based bidirectional reconstruction won high praise from experts of MBT and its project tendering team for such advantages as solid xPON R&D strength, a leading technical architecture of equipment, rich experience in existing network application, a well-rounded Network Management System (NMS), superb lightning protection capability, and professional engineering services. As its exclusive strategic partner, ZTE pledged to jointly carry out the bidirectional network reconstruction project with MBT and signed a two-year cooperation agreement. Phase 1 of the project covers 80,000 users by providing multi-service access services.

Within one month of winning the bid, Phase 1 went live. ZTE’s efficient, perfect engineering services won high praise of MBT again. MBT is fast emerging as a new regional operator,

and ZTE will help it achieve its goal during this process.

MBT becomes the bellwether in bidirectional network reconstruction in the broadband and TV market

MBT uses ZTE's FTTX solution to carry out new bidirectional network reconstruction, which provides a data return transmission channel for interactive TV; vastly improves its broadband service provision capability; provides a reliable access platform for common broadband user access and such services as urban emergency command & dispatching, a monitoring network of “Safe City”, group users, industrial users, and business users; and greatly boosts MBT’s service capability and revenue generating capability.

MBT launched a number of marketing initiatives such as broadband and CATV binding and multiple flat rate packages. As a result, the number of broadband users increased 55% and its revenue rose 30%. In the future, it will roll out more differentiated marketing strategies targeting different customers.

Implementation of this project propelled MBT to the bellwether of bidirectional network reconstruction in the broadcast and TV market. Its network construction and marketing strategies create a new era of large-scale application of FTTX in the broadband and TV market and provide a positive reference and example for the district-level other broadband and TV bureaus of Shanghai and their counterparts in the other provinces of China. Moreover, MBT’s FTTX project is highly scalable. It is able to eventually evolve smoothly towards FTTH and is used to provide a useful foundation for real “three-network convergence” in the future.


burgeoning services in both fixed line and mobile networks fields. Faced with fierce competition and the nearly saturated traditional narrowband service, it actively develops new services, especially broadband multimedia services, to increase ARPU, enhance appeal to users, and reduce its user churn rate.

In 2007, TI was aware that its broadband network cannot meet users’ requirement and put forward a demand for 30 thousand of VDSL2. ZTE’s PON+VDSL solution successfully won TI’s broadband network construction project and ZTE become TI’s strategic partner in terms of the access networks. In order to develop broadband users as fast as possible, TI proposed stringent shipment and project period requirements. ZTE managed to overcome lots of difficulties and accomplished this project. After ZTE’s equipment was put into use, the number of users has been increasing continually. After commissioning, ZTE has been providing customized new functions and services to TI to meet its future requirements for multimedia services. Meanwhile, the stable operation of equipment and timely after-sales service receive commendations from TI.

Broadband access terminals assist global operators in network transformation

Now ZXDSL MODEM has become mainstream equipment on internationally mainstream operator’s networks and China Telecom’s, China Unicom’s, and China Mobile’s networks and private networks. It also becomes a modem brand with the largest domestic share. With advantages in techniques, service, and network investments, it gains admiration from a host of worldwide operators. Until 2009 Q1, over 30 million pieces of ZXDSL CPE has been used in more than 40 countries, including China, Italy, India, France, and Brazil.

It is proved through practical operations on networks that ZTE DSL MODEM operates stably with good terminal compatibility and outstanding transmission performance. It even shows excellent performance when running together with heterogeneous vendors’ DSLAM equipment in complicated line situations, receiving a high recognition from users. The ADSL/ADSL2+ series terminals have good compatibility and interconnectivity with DSLAM equipment from Huawei, ASB, Ericsson, and Siemens. With rich experience ZTE can provide better service to broadband networks and their expansion and looks forwards to collaborating with telecom operators in developing quality broadband networks for a better tomorrow.

networks

In order to meet the growing demand of large-upstream-bandwidth services, ZTE leads the industry in launching the ANNEX M solution on the basis of chip vendors’ R&D. ZTE ZXDSL 831D supports the ANNEX M function; it provides users with bidirectional large bandwidth, meeting the requirements of video surveillance, video conferencing, and Mega Eyes. ZXDSL 831D now has been used on a large scale in China Unicom Beijing Branch, China Unicom Jilin Branch, China Unicom Hebei Branch, China Telecom Sichuan Corporation, and China Telecom Jiangsu Corporation. In order to build a safe campus by implementing 24-hour remote surveillance of major areas of the campus, Jiangsu University, jointly with China Telecom Zhejiang Corporation, adopted ZTE’s Mega Eyes solution that is based on the ANNEX M technique to develop a broadband-network-based campus information surveillance & management system that consists of image surveillance, transmission, storage, and management. The phase one of the Mega Eyes surveillance & management system has been put into use now, providing an electronic security shield for Jiangsu University.

ZXDSL931CII, 931WII, and 931VII are multi-port VDSL2 MODEMs widely used in home and office network to provide broadband data transmission service. VDSL2 MODEM can support VDSL2 applications of downstream 100M and upstream 50M. ZTE ZXDSL 931CII passed China Telecom Group’s VDSL2 tests with flying colors: excellent transmission performance and good terminal compatibility. It has been used on a large scale home and abroad.

ZTE VDSL MODEM serving TI's network

Telecom Italia (TI) is the chief Italian telecom operator. With networks covering the entire country, TI has

“Nerve Ending” of Quality Broadband Networks——ZXDSL Modem

Customer requirements● The development of xDSL techniques demands synchronous upgrades of

terminal equipment. ● Cutting network investment costs and O&M costs.

Solution● Series modems meeting varied user requirements.● Green modems reducing network construction investments.● Good interconnectivity and interoperability and open interfaces.

Customer benefits● Constructing an information superhighway with a low TCO.● Ease of maintenance and a plunge of O&M costs.

With a burgeoning broadband access market, China’s broadband access user base

is soaring. According to authoritative statistics, China had over 80 million broadband users until the end of 2008, and it was predicted that this figure would grow to 112 million by 2010. Since home broadband users account for 80% of the broadband user base, pushing ahead with home-terminal-oriented broadband services is becoming a strategic focus of operators.

DSL chosen for “last kilometer” broadband access

As the mainstream access mode of China’s broadband access applications at present, the DSL technique serves 70% broadband users and will be adopted by many emerging Value-Added Services (VASs). As DSL

Full-Service Access

construction becomes increasingly rational, traditional fixed-line operators are paying more attention to develop value-added content and application services while retaining existing users and expanding fringe users. The primary problems that operators need to address when developing broadband services are those related to home networks that center on DSL terminals, such as installation and maintenance of home terminals, version upgrades and management of VAS software.

China Telecom and China Unicom are two extra-large state-owned communications enterprises and integrated information providers. They have a globally largest fixed-line network and Chinese language information network that connects rural and urban regions in China as well as other countries. They provide

the telephone service, Internet access and applications, video service, data communications services, and other integrated information service. In order to meet end users’ ever growing request on service quality and to attune to the emergence of the IPTV service, DSL access, the main means of last kilometer access, needs to adopt various new products and new techniques to meet users’ requirement for broadband services, boost VAS support quality, and optimize equipment management efficiency and level. The domestically famous brand ZXDSL MODEM, a series of products, is just the solution to the above problems.

IPTV is a new multimedia integrated service that has a good prospect in operators’ eyes and is very popular amid China’s fixed-line transformation wave. To cater to requirements of these VASs on broadband and service quality, ZTE provides ZXDSL 831CII, 931CII, 931WII, and other home gateway terminals. More than 500 thousand ZXDSL831C II are used in China Telecom Shanghai Corporation, China Telecom Guangdong Corporation, China Telecom Zhejiang Corporation, China Unicom Beijing Branch, China Unicom Zhejiang Branch, and other coastal developed provinces/municipalities, giving excellent support to new multimedia services on present networks.

Leading techniques and solutions meeting requirements of large-bandwidth services on present

�0 ZTE Fixed-line SUCCESS STORIES �1ZTE Fixed-line SUCCESS STORIES

ZTE’s FTTB+LAN solution that will evolve into 10G EPON is perfect with clear ideas. It provides a full rapid coverage

solution for Hebi’s network construction.

——Hebi Unicom

Customer requirements● After Fiber To The Building (FTTB), realizing full-service assess under the

pattern of wide coverage.● Flexible networking and rapid deployment.

Solution● An integrated FTTB+LAN service solution that can be upgraded to 10G EPON.● Multiple flexible plug-in service cards facilitate rapid capacity expansion.

Customer benefits● Fiber in / copper out, constructing an “information superhighway” at a low

cost.● The leading technique meets broadband upgrade requirements in the next 5

years.

Spreading Wings of FTTx and Flying to Dreamed Light-speed Age——ZTE Assisting China Unicom Henan Branch in Building New-

generation Access Networkactivity and has made progress by leaps and bounds in recent years. The full-service consolidation of telecom operators in 2008 brought opportunities and challenges to Hebi Unicom and stimulated fierce competition on the telecom market.

China Unicom Henan Branch seeking opportunities on a fiercely competitive telecom market

As the pattern of full-service competition takes shape after the restructuring of the telecom industry, Hebi Unicom began to focus on pushing ahead with strategic transformation, nurturing new service growth points, and meeting customers’ diversified requirements for data, videos, and other broadband VASs.

On the basis of China Unicom Group’s broadband acceleration strategy, China

Unicom Henan Branch formulated the strategy of large-scale access network upgrading with new techniques. Hebi city, a famous historical and

cultural city famous for “cranes perching on the edge of cliffs of the south mountain”, has beautiful mountains, rich resources, and talented people. Hebi Unicom is at the forefront of China Unicom Henan Branch’s broadband acceleration

China Unicom Henan Branch the forerunner of China Unicom’s broadband access

Hebi Unicom is China Unicom Henan Branch’s paragon of optical in / copper out strategy. China Unicom Henan Branch’s broadband networks are evolving from a DSL network to an EPON-based optical fiber access network. From January to April in 2009, FTTB+LAN broadband users have a net increase of 0.15 million, and become the main source of income growth.

Meanwhile ZTE and China Unicom Henan Branch carried out an all-round strategic collaboration that expands users in the market operation mode of service applications plus access. In this way not only the problem of large-scale broadband access is solved, but also abundant experience of construction, maintenance, and marketing in the full-service network field is accumulated.As for service collaboration, ZTE and China Unicom Henan Branch discussed and developed such new services as “Broadband Business”, “Broad View”, and “Familiarity 1+”. ZTE actively advances collaboration and assists China Unicom Henan Branch in building a high-quality broadband network, thus becoming China Unicom’s main strength in the broadband field and laying a solid foundation for full-service operations.

During the process of network planning and deployment, Hebi Unicom placed emphasis on building a foremost access network, implementing triple play, and meeting broadband upgrade requirements in the next 5-10 years. Hebi Unicom actively carried out China Unicom Henan Branch’s broadband network deployment plan and speeded up China Unicom Henan Branch’s broadband acceleration.

ZTE, China Unicom Henan Branch’s best partner in terms of broadband access products, proposed an advantageous solution, which cut construction and operation costs and improved quality of the existing network. Since the solution maximized China Unicom Henan Branch’s profits by taking into account long term development and user coverage on the largest possible scale, ZTE stood out from all competitors.

ZTE FTTB+LAN solution assisting Hebi Unicom in rapid broadband coverage

The EPON-based FTTB+LAN solution proposed by ZTE is a three-in-one (voice, data, and video) service bearer solution. It provides 1GE synchronous bandwidth and can be smoothly upgraded to 10G EPON by simply changing the PON board without any variation of the existing ODN network. It fully meets China Unicom Group’s standard of 50M-100M bandwidth by 2013, saves investments to a large extent, and saves enormous manpower and materials.

The investment per line of FTTB+LAN is much lower than that of the DSL and MSAG outdoor cabinet. It adopts ONU equipment with plug-in cards, which enable the ratio of broadband to narrowband flexibly configurable. Both ZTE’s OLT and ONU support the

smooth upgrade to 10G EPON, paving the way for the ultimate goal of FTTH. This solution can do a lot of good work within a fixed investment.

ZTE’s FTTB+LAN solution fully meets Hebi Unicom’s requirements. From January 2009, over 15000 lines have been constructed in less than 3 months. ZTE then has a share of over 90% on Hebi’s market and the solution construction becomes a highlight there. Through the construction phase one, OLT equipment and fiber optic trunk lines have all been deployed; the ODN network achieved coverage of target areas.

During subsequent capacity expansions, it is only necessary to add user boards to ONUs or add new ONU equipment. For areas that are not covered by optical splitters, it is only necessary to deploy new optical splitters and tail fibers and not necessary to lay new main optical cables. This mode makes service enabling convenient and greatly reduces capacity expansion costs. As the ODN network is gradually perfected, Hebi Unicom will have a complete point-to-multipoint star optical network, laying a good foundation for EPON access, or even 10G EPON access across the city, when there will be an information superhighway with a clear structure.

Application Scenarios

�� ZTE Fixed-line SUCCESS STORIES ��ZTE Fixed-line SUCCESS STORIES

Customer requirements● Seeking an economically feasible FTTx construction mode.● Reducing ever growing energy consumption of equipment.

Solution● A low-cost, future-proof FTTB/H solution.● Green energy-saving MDU series equipment.

Customer benefits● Dramatically decreasing network construction costs and enabling smooth

upgrades.● Cutting equipment energy consumption, controlling operation cost and TCO.

Optimizing Investment and Cutting Energy Consumption——TI Building Economical Energy-efficient Network

a long history, TI is faced with increasing competition with alternative operators and cable operators, especially in the burgeoning broadband access field. In order to solidify its leading position in Italy and meet growing requirements for broadband services, TI launched the NGN2 project in 2006, which is intended to build a next-generation optical fiber access network across Italy.

As an old telecom operator, TI owns huge copper cable and DSLAM resources. Therefore, TI is very concerned with how to make effective use of resources on existing networks and to build an economically feasible optical fiber access network.

Furthermore, the vast engineering expenditure of an ODN in the mainstream FTTx construction makes TI very careful about choosing from techniques and solutions. It has to consider that once an ODN is built, whether its investments can be protected in the future.

advancing the global deployment of this technique.

Assisted by ZTE and other equipment vendors, TI successfully hosted a number of forums with green, energy-saving subjects, and became the model operator for environmental protection in the world.

The collaboration between TI and ZTE on the FTTB/H project won international recognition: The FTTB solution of GPON+VDSL2 received the InfoVision award presented by the International Engineering Consortium (IEC) at Broadband World Forum 2007 in Europe; ZTE’s MDU equipment, ZXDSL 9806H won the “Best Green Innovation award” presented by IEC at the SOFNET Forum 2008.

The deepening collaboration between TI and ZTE has paved the way for their all-round exchanges in IPTV, transmission, multimedia, and other fields of new broadband services and techniques. Now TI has amassed abundant experience in FTTx network construction and possesses the early-development advantage in European FTTx market.

During the process of deploying a next-generation optical fiber access network, a large number of moved-down broadband devices and nodes also consume more energy. How to effectively control and reduce whole-network energy consumption also becomes TI’s concern.

TI building an economical energy-saving FTTB/H network

In April 2006 TI and ZTE discussed how to choose an appropriate FTTx construction mode. Some important results of the discussion played a key role in controlling FTTx network construction costs.

FTTB becomes the most economically feasible construction mode

Through multiple technical discussions with TI and other equipment vendors, it was established that the FTTB solution of GPON+VDSL2 was most suitable for TI’s practical situation. The solution adopted small-sized MDU equipment to provide VDSL2 access and provided users with bandwidth of 50-100M within 100 meters by making use of the existing copper cable resource. Moreover, the access capability of 64-line VDSL2 was most suitable for Italian buildings and population distribution. In this way, it avoided TI investing hugely to replace access-side copper cables on a large scale in order to increase users’ access bandwidth.

Taking into full consideration evolvement into next-generation PON The existing GPON technique will inevitably be unable to meet users’ ever growing bandwidth requirements. How to address this imminent problem? The plug-in characteristic of MDU uplink modules ensures that TI can upgrade the existing GPON to the next-generation PON in the future by replacing uplink modules. This

protects TI’s initial investments.

The low-consumption ONT ensures feasibility of the FTTH mode

When some high-end customers choose the FTTH mode, over 80% of energy consumption in the network comes from ONTs. Moreover, a large number of ONTs will pose the battery backup problem. The green innovative design of ZTE’s ONU ensures its per-port power consumption 20%-40% lower than the European standard Code of Conduct (CoC). The ONT not only lowers energy consumption of the whole network but also drops the requirement on backup UPS or batteries.

TI possessing early-development advantage on European FTTx market

Through long-term collaboration with ZTE in GPON and next-generation PON, TI proposed the FTTB construction mode in Europe for the first time and conducted argumentation and tests. It also quantified the TCO analysis model in different modes. As for the VDSL2 technique, TI and ZTE jointly proposed a new configuration management model, immensely Telecom Italia Group, the fifth

largest multinational telecom operator in Europe, consists of

Telecom Italia, Telecom Italia Mobile, Telecom Italia Media, Telecom Italia Lab, Olivetti that provides office and system solutions, and other enterprises. Telecom Italia Group delivers fixed line and mobile service with business scope mainly in Europe and South America. Its operating revenue in 2008 was 31.3 billion

Euros. The user number of Telecom Italy, its fixed–line operator, was over 22.8 million lines in 2008, in which 7.4 million lines were broadband users.

How to address challenges from alternative and cable operators and reinforce its position on markets

In recent years broadband services have become the focus of telecom operators’ competition. As a telecom operator with



Customer requirements● Broadband service development was faced with a bottleneck. ● Residential neighborhood broadband acceleration near at hand.

Solution● EPON-based FTTB+DSL customized solution.● Flexible plug-in-card MDU equipment and investment as needed.

Customer benefits● Improving broadband service quality.● Securing China Telecom Shanxi Corporation’s leading position in fixed-line

network field.

At the Forefront of Fiber In / Copper Out——ZTE Assisting China Telecom Shanxi Corporation in Constructing FTTx Pilot Office

demand and even common users are troubled by low network rates and frequent disconnections. It is imperative to take effective measures to transform the network for existing users.

Under China Telecom Group’s guideline of “fiber in / copper out”, China Telecom Shanxi Corporation set its goal of moving access points down to buildings, realizing urban fiber to buildings, and rural fiber to villages where it is possible in 2-3 years in order to solve the problems of multimedia service development for newly added broadband users and service quality raising for existing DSL broadband users. In order to achieve this goal, China Telecom Shanxi Corporation and ZTE carried out a lot of collaborations in terms of solution applications and broadband products, jointly shaping China Telecom’s “Shanxi mode”.

ZTE assists the customer with branding

China Telecom Shanxi Corporation was beset by problems during the process of fiber in / copper out

China Telecom Shanxi Corporation is the largest full-service operator in north-

west China. How to steadily advance operation transformation, nurture new service growth points, and to rapidly meet users’ increasingly verified requirements for broadband multimedia services have become

China Telecom Shanxi Corporation’s major concerns in recent years.

There are always twists and turns on the road. Broadband service is China Telecom Shanxi Corporation’s main profit source. Over 87% of China Telecom Shanxi Corporation’s broadband users are DSL users, of whom nearly 50% have access lengths of nearly 3km. The limitation of the cable resource makes the network unable to meet broadband users’

steadily in several months after the reconstruction, the average bandwidth ARPU also rose up gradually.

How to build, manage, operate, and maintain an EPON is a new task for China Telecom Shanxi Corporation. ZTE not only provides China Telecom Shanxi Corporation with a customized FTTB+DSL solution and high-quality products, but also provides it with network construction and O&M schemes, helping to burnish its image as the pacesetter for “fiber in / copper out” and EPON construction in China Telecom.

China Telecom Shanxi Corporation grows together with ZTE

As China Telecom Shanxi Corporation enlarged the scale of FTTx commercial deployment and speeded it up, its good performance in “fiber in / copper out” field received a high recognition from China Telecom Group.

In September 2008, experts from China Telecom Group and all its branch companies congregated in Xian to discuss China Telecom’s “fiber in / copper out” construction. The “Shanxi mode” established jointly by China Telecom Shanxi Corporation and ZTE has reference significance for China Telecom’s “fiber in / copper out” construction; China Telecom Shanxi Corporation also becomes China Telecom’s model office.

As the “fiber in / copper out” construction scale of China Telecom Shanxi Corporation is gradually enlarged, ZTE becomes China Telecom Shanxi Corporation’s important partner in terms of FTTB+DSL and other FTTx construction modes. China Telecom Shanxi Corporation and ZTE are growing together with its trust in ZTE extended to other fields.

By virtue of its research and exploration in the broadband optical access field over the years, ZTE, in view of China Telecom Shanxi Corporation’s fixed-line development problems and network status quo, considered the FTTB+DSL application mode to be the most suitable one for China Telecom Shanxi Corporation’s "fiber in / copper out” construction, especially the application scenario of residential neighborhood reconstruction ZTE recommended the EPON+DSL integrated solution to China Telecom Shanxi Corporation and supplied it with a full series of equipment including OLT, ONU, and the network management system. The EPON+DSL solution proves to advance China Telecom Shanxi Corporation’s broadband and multimedia services in an all-round way.

In the topology structure of China Telecom Shanxi Corporation’s FTTB+DSL residential neighborhood reconstruction solution, newly laid optical cables replace existing copper cables; service access points descend to buildings or residential neighborhoods; trunk lines adopt optical cables; end lines adopt twisted pair cable. ZTE EPON OLT equipment is placed in the equipment room of the central office and is connected upwards to the softswitch and IP MAN. The ODN uses MAN optical cables as the main optical cables of the

access network with splitters placed in connector boxes. EPON ONU equipment is placed in equipment rooms of residential neighborhoods or outdoor curb cabinets in residential neighborhoods. ADSL2+ and POTS are adopted to provide integrated service access to users; the VDSL2 access mode may be adopted if necessary. The access distance of copper cables is basically restricted to less than 300m, reserving sufficient bandwidth for China Telecom Shanxi Corporation to develop multiple services in the future while ensuring the expected rate at DSL user ports.

After the reconstruction, problems caused by long distance of copper cables such as disconnections and unstable Internet surfing were greatly alleviated; troubleshooting problems were also relieved: In four weeks, the average fault period decreased by 40%; the number of dispatched people decreased by 35.8%; the erroneous dispatch rate decreased by 48.9%.

Moreover, after the reconstruction, the access rate provided by the network increased obviously; users began to have the wish of using multiple VASs on the basis of the Internet service, which also laid a good foundation for China Telecom Shanxi Corporation to promote the IPTV service. The number of IPTV users of China Telecom Shanxi Corporation increased



Customer requirements● Broadband acceleration in rural areas.● Cutting the maintenance cost of copper cables.

Solution● Creating the new Multiservice Access Gateway (MSAG) over xPON scheme.● Fiber To The Village (FTTV), simultaneous access of broadband and

narrowband.

Customer benefits● Improve broadband service for users, cutting the cable maintenance cost.● “Over xPON” creates a new mode for village “informationization” construction.

FTTx Showing Strength in Rural Areas—— China Telecom Anhui Corporation Creating New Construction Mode of FTTV

Fuyang is situated in the north plain of Anhui province, and abuts Henan province. It is a typical, populous rural region. In the telecom construction aspect, since it has relatively concentrated traditional switching rooms, user access largely depends on a large number of pairs of copper cables, whose coverage radius is as long as 4-5 km.

This situation causes the following two problems: Firstly, the constant decrease of mobile communication fees has a negative impact on the fixed line income, and the broadband becomes a new growth point of telecom income. But curbed by extra-long copper cables, the ADSL development in rural areas is very slow. Secondly, long-distance aerial cables and the difficulty in

maintenance and monitoring in rural areas cause bird and mouse disasters and the copper cable ageing problem, making copper cable loss relatively serious. Fuyang spends over 10,000,000 yuan on copper cable maintenance in each year.

Fuyang Telecom’s problem is ubiquitous in Anhui and even the whole country. For Fuyang Telecom’s problem, replacement of copper cables by optical fibers is an undoubted good solution. Descending access equipment to the user side and replacing copper cables with optical fibers can shorten the distance of user cable, make broadband access feasible, and decrease the number of trunk copper cables, avoiding damage. But the descent of access equipment will add a lot of scattered access points. In this case, expensive MSTP transmission equipment and the inconvenience of multi-level networking of switching equipment are two large obstacles to implementing equipment descent.

Pioneering a new path, ZTE tailored the solution over xPON

Through analyzing China Telecom Anhui Corporation’s problem, ZTE proposed a solution that integrated the xPON technique with the MSAG integrated access technique to realize access equipment descent. The solution has the following features:

● Powerful service access capability: A single MSAG equipment node meets rural users’ both broadband and narrowband service requirement.

● Saving the optical fiber resource: The xPON technical feature of single fiber with 1: N splitting ratio saves a large quantity of trunk

optical cables.

● Ample space for service development: EPON/10G EPON and the platform architecture ensure short term and long term service development requirements.

● Long access distance: The 20km coverage radius of the xPON system meets the demand of rural residents whose homes are separated by long distance.

This solution uses the xPON as the bearer network of the MSAG, which implements broadband and narrowband access. Voice and data traffic of the MSAG converge on the xPON equipment, which sends them to the softswitch bearer network and the MAN respectively. This scheme prevents excessive damage to long-distance copper cables and saves millions of copper cable maintenance expenditure for Fuyang Telecom, and solves the problem of broadband access in wide rural areas. Fuyang Telecom’s service operation mode is gradually converting from voice service predominance to integrated information provision; its operating revenue is also soaring.

China Telecom Anhui Corporation created the FTTV construction mode, an impressive accomplishment

Assisted by ZTE and other equipment vendors, Fuyang Telecom completed its construction phase one of 76 “optical access points” at the end of December 2007. After that, the immensely shortened access copper cables largely eliminated complaints caused by subscriber line quality problems. Users could enjoy broadband Internet service even in remote rural areas. Thus Fuyang

Telecom wrapped up the government project of information to villages. Through a year’s construction in 2008, China Telecom Anhui Corporation completed “fiber in / copper out” for nearly 1.8 million fixed-line users, laying a foundation for rural broadband construction. The broadband service capability in reconstructed areas was notably improved.

According to the characteristics of this scheme, China Telecom Anhui Corporation put forward the concept of FTTV for the first time in the industry. This method not only realizes network evolution, but also provides an information window for village users, promoting local information exchanges with the outside and laying the groundwork for village informationization construction. Rural users are enabled to surf the Internet, adjusting agricultural production according to news updates; villagers’ income is guaranteed more reliably. China Telecom Anhui Corporation’s image is further burnished, and it becomes villagers’ trustworthy money-maker.

It is proved that the new optical access mode of xPON can make a great achievement in the “fiber in / copper out” construction in rural areas!

As the new focus of broadband access, the xPON technique is generally associated

with fashionable cities. As high-end users in costal developed cities catch the industry’s eyeball, a “revolution” that influences traditional switching networks has cropped up

in the agricultural province Anhui. However, it is xPON, which is barely associated with villages, that leads the “revolution”.

With the copper cable fix, Fuyang Telecom slowed down its service development




Customer requirements● Reconstruction of traditional PSTN network.● The requirement for mass deployment broadband access network.

Solution● An integrated fixed-line solution of broadband and narrowband services.● An efficient turnkey capability of large-scale telecom network construction

and deployment.● An all-round customer technique training system.

Customer benefits● Burgeoning telecom networks help to bolster the country’s economy. ● Training of excellent telecom talent lays the groundwork for network

development.

Integrated Fixed-line Solution Helping ETC to Make Rapid Progress—— New-generation Turnkey Project from Network Construction

to Talent Trainingservice telecom operator, Ethiopian Telecommunications Corporation (ETC) had a network scale of less than 0.6 million lines until 2006, and a penetration rate less than 1%. Furthermore, it had a fixed-line switching network with a small capacity, antiquated equipment, centralized offices, and some severely ageing subscriber lines. As for the broadband data service, the country only had one DSLAM pilot office in its capital; the installation charge for a download bandwidth of 2M was as high as 10,000 USD and a monthly fee for the same bandwidth about 5000 USD. The expensive tariff made the broadband service a luxury; its users were limited to some star-rated hotels, multinational corporations, and other high-end customers.

The original telecom network impeded the country’s economic growth

Ethiopia, the second most populous country in Africa, has a population of about

77 million and a large territory. It is renowned as "roof of Africa”. In recent years, the backward telecom facility becomes a major bottleneck of Ethiopia’s economic growth.

As Ethiopian sole state-owned full-

With continual capacity expansion and new construction, the network will expand from the capital and its13 peripheral second-line cities to 60 third-line cities throughout the country, helping Ethiopia to gradually achieve the goal of universal telecom service.

Telecom Network Development Advances Ethiopian Economy

The ETC integrated access network constructed by ZTE ushered in a new era of ETC’s fixed-line network. It not only obviously increased the popularity rate of Ethiopian broadband service, but also gave ETC remarkable income. ETC’s advanced telecom network has become the most important basis for the development of Ethiopian information industrial chain. And the rapid progress of the information industry will play an inestimable role in Ethiopian economic growth and the promotion of education and life quality.

ETC’s successfully constructed national telecom network was acclaimed by Ethiopian Prime Minister as “an unparalleled event in Ethiopian telecom construction history”.

ZTE Integrated Access Solution Rapidly Boost Ethiopian Telecom Network

Ethiopia has a vast territory and an unevenly distributed population: Its urban population is very concentrated; its suburb and rural population is sparse. After researching the ETC’s network meticulously, ZTE tailored the Next Generation Network (NGN) integrated telecom network solution for ETC in light of the all-IP evolution trend of telecommunications networks. ZTE eventually stood out from all rivals in the competition, and became ETC’s strategic partner that helped it to upgrade its existing telecom network in an all-round way.

In the fixed access aspect, ZTE proposed the integrated access solution, which took into consideration the protection ETC’s existing investments, ageing equipment replacement, new service provision, and saving new investments and O&M expenditure.

ZTE’s ZXMSG 5200 integrated access solution of broadband and narrowband services can meet the requirement of replacing old equipment and complies with the future network development trend with flexible small- and medium-sized equipment deployment. Moreover, it enables the subscriber line resource to be reused, saving the high subscriber line deployment expenditure; its new broadband service provision capability of 300, 000 lines serves as a guarantee of future development of ETC’s fixed-line network. ZTE’s IP-based integrated access solution ensures advancement and scalability of equipment, avoiding recurring investments in the future. The outstanding unified network management platform provides an efficient O&M management capability, dramatically reducing maintenance costs.

The FTTV solution is adopted in rural and remote areas, which provides broadband data and voice services to users by implementing network coverage as wide as possible.

Moreover, in order to boost ETC’s overall network operating capability, ZTE helped ETC to establish a large-scale technical training center. The training center is equipped with all types of ZTE’s equipment on Ethiopian existing network and has a network architecture that precisely simulates the existing network, providing an authentic simulation environment for ETC’s engineering and O&M personnel. The center solves ETC’s training difficulties of high expenditure and low quality that have long been nagging ETC and supplies ETC with excellent telecom talent continually.

After the large-scale NGN construction, ETC’s new telecommunications network can provide broadband and narrowband integrated services to over 300, 000 users in major cities of the country. The FTTV solution has accumulated experience of providing telecom service to a multitude of rural users, and encourages more social classes to receive telecom service.

ZTE Training Telecom Engineers for ETC

�0 ZTE Fixed-line SUCCESS STORIES �1ZTE Fixed-line SUCCESS STORIES

Customer requirements● Rapidly developing broadband services and providing FTTH service to high-

end users.● Seizing the opportunity of introducing new techniques to promote network

competitiveness.

Solution● Realizing integrated service bearer with a customized broadband access

solution.● An all-IP technical architecture that is in agreement with the network

transformation trend.

Customer benefits● High-speed Internet access through FTTH makes for enjoyable service

experience and an attractive network. ● The network value increases steadily; the operator makes a big fat profit.

Perfect Integration between Broadband Growth and User Experience—— Telecom Argentina Making Progress in Leaps and Bounds

A new round of broadband competition began in 2005. By then, Telecom Argentina, with only 20000 lines of DSLAM equipment of an ATM core running on its existing network was at a rather disadvantageous position compared with other operators who had 100,000 lines of ADSL. With looming market competition, how could it lose at the starting point? Telecom Argentina was brooding over this problem, trying hard to find a new navigation mark.

Challenged by such a crisis of market development and the stress of competing with MTOs, Telecom Argentina was seeking an opportunity of a breakthrough on the broadband market. It fully exploited the potential of its user base and energetically developed new services, especially broadband multimedia services to increase the ARPU and improve its appeal to users. It also made a long term development plan intended to introduce a best broadband access product partner and to gain a larger market share.

ZTE broadband access solution helped Telecom Argentina to

are more than 600,000 lines of ZTE ADSL equipment serving Telecom Argentina’s network.

Telecom Argentina’s network value grew steadily

ZTE has long been helping Telecom Argentina to develop broadband multimedia services with customized solutions and superb service, assisting it in gaining an absolute advantage in fierce market competition. According to statistics, the number of Telecom Argentina’s users increased by 75000 in the third quarter of 2006 compared with that in the second quarter and it become Argentina’s largest broadband operator. According to the latest fiscal report published on Telecom Argentina’s website, it had one million broadband users by the fourth quarter of 2008, an increase of 150% compared with the figure in 2006, and its broadband service revenue had increased by 35%. Now Telecom Argentina and ZTE have carried out all-round collaborations in IPTV, GPON, and multimedia service. Through all the collaboration, Telecom Argentina and ZTE have forged a close partnership.

progress in leaps and bounds

Telecom Argentina launched a new DSLAM construction project in 2005. In order to advance services rapidly and expand operation markets, Telecom Argentina, taking into consideration reduction of O&M costs at the beginning, put forward five customization requirements such as Portuguese standard-based splitter, subscriber cable, and controllable multicast intended to give better support to IPTV.

Based on a deep understanding of Argentina’s telecom market and thorough analysis of Telecom Argentina’s service development requirements, ZTE displayed a broadband access solution with an all-IP architecture that was in agreement with the network transformation trend and supported broadband services in an all-round way. ZTE organized a special team for this project, provided corresponding functions within a short period of time and passed strict tests smoothly.. Owing to the technical strength of its products and a flexible customization capability, ZTE gained a high recognition from Telecom Argentina and promptly delivered DSLAM equipment needed for network construction. Reasonable network planning and precise control of the project progress by engineering experts made commercial operation of the network very soon.

At that time, Argentina users had a strong requirement for high-speed data service, streaming, and other large-bandwidth services. When other operators could only provide a maximum bandwidth of 2M, Telecom Argentina, with a newly constructed network, declared that it could provide 5M bandwidth service. Furthermore, stable operation of ZTE’s equipment, considerate after-sales service, the

tariff, service, and response speed all gained high recognition from users. After the equipment was put into use, the number of users, Telecom Argentina’s network value and its market competitive power have been rising continually.

The number of Argentina’s broadband users surged in 2006, when the network constructed in 2005 could not meet users’ requirement any longer. In order to provide better broadband service to users, ZTE assisted Telecom Argentina in quickly implementing network capacity expansion. The unprecedented requirements on delivery and project period presented a formidable challenge. Telecom Argentina and ZTE, in close collaboration, eventually got around all difficulties and accomplished the broadband network capacity expansion project; and Telecom Argentina submitted an excellent annual fiscal report to share holders.

ZTE have helped Telecom Argentina to implement a lot of network capacity expansion, and continually provided it with customized service. Now there

Argentina, a beautiful and wonderful country in South America, not only has nurtured

the tango art and football prodigies, but also has Telecom Argentina, an excellent telecom operator that ranks among the world’s first 100 telecom operators. As the largest telecom operator in Argentina, Telecom Argentina has communications networks that cover the whole country as well as fixed-line and mobile services.

Telecom Argentina set a new goal in the fiercely competitive telecom market

Telecom Argentina was faced with an expectation of fierce competition on the increasing open telecom market. What about future network development? How to deal with other potent Multinational Telecom Operator’s (MTO’s) intervention in its market? These were Telecom Argentina’s thorny problems awaiting fast solutions. Telecom Argentina’s Broadband User Development 2005-2008 (Unit: 10 thousand)



Carry through High-quality Service—— ZTE Assisting OTE in Building Efficient Integrated

Network Management

Customer requirements● Smooth migration from existing Operating Support System (OSS) to network

maintenance.● Raising O&M efficiency, cutting O&M costs.

Solution● Simplify complicated network management, conduct O&M with ease.● Give rapid responses and deliver all-round service.

Customer benefits● The O&M flow is optimized; the O&M costs are decreased.● The unified network management platform improves management

efficiency.

OTE is the former monopoly of telecoms in Greece. This group provides full series

communications products and service, including broadband access, fixed-line telephone service, high-speed private data line, mobile service, and satellite communications service. OTE Group delivers communications service to six countries including Greece, Romania, Serbia, and Bulgaria.

ZTE and OTE jointly built a high-quality broadband network

The Olympic Games 2004 made Athens the focus of World’s attention. At this Olympics, ZTE, in close collaboration with OTE, provided DSL broadband network equipment to the main stadium, news center, swimming center, and other 13 major gyms, for the purpose of broadcasting Olympic information to the world. ZTE was highly acclaimed by OTE Group for the high reliability and stability of its ADSL equipment at the Olympics and perfect customer service. Now ZTE is one of OTE’s main DSLAM equipment providers with equipment covering 160 central offices in Greece.

Large-scale development of users presented a new O&M challenge

The number of OTE’s ADSL users exceeded 1.5 million by the end of 2008. With the rapidly growing user base and network traffic, OTE wished

to provide high-quality full service to its users, expand products and services on the basis of broadband, voice, and data service, continuously boost service quality, optimize its O&M flow, cut O&M costs, and improve its customer satisfaction rate and customer retention rate.

These changes in the network and service requirements presented new challenges to the OTE’s existing OAM system; the OPEX also threatened to rise.

How to optimize the existing OAM system and how to implement smooth interconnection between the vendor’s OSS and OTE’s existing OAM system were two urgent problems for OTE.

ZTE assisted OTE in building efficient network management

Based on a deep understanding of OTE’s network and a lot of exchanges about its requirements, ZTE tailored an integrated network management system for OTE. It is a customized, carrier-class, cross-platform, integrated network management system based on the bottom-up principle with an advanced, mature network management architecture. The system implements these functions:

1 Service release: automatic service release, instant enabling

2 Equipment commissioning

1) Providing users with the automatic

Integrated Network Management



Customer requirements● Building an efficient FTTx network operation system to support fast

development of its FTTx network.

Solution● Fast network deployment with zero on-site configuration and plug and play

equipment.● EPON Management System (EMS) batch data import, and electronic, instant

service enabling.● An end-to-end troubleshooting scheme that reduces the number of

complaints and increases the fault fix rate.● The perfect functions of FTTx system performance statistics and resource

management improve network manageability.

Customer benefits● The electronic O&M flow decreases manual intervention and raises reliability

and effectiveness of the O&M system.● With reduced operation costs and improved O&M efficiency, the FTTx service

develops rapidly.

A Brand Coming from Pursuit of Perfection—— China Telecom Zhejiang Corporation Building Efficient FTTx Network Operation Support System

existing OSS, fast responses to OTE’s requirements

As ZTE’s position in OTE’s network construction became increasingly important, OTE urgently needed to interconnect its existing Accenture system and ZTE’s unified network management platform system in order to implement fast service enabling and deployment and to cut maintenance costs and the time cost. ZTE quickly responded to OTE’s demand and realized interconnection with Accenture in less than two months, showing ZTE’s capability in providing customized solutions in tandem with the operator’s local partner and having abundant network interconnection experience and a fast response speed.

ZTE’s integrated network management system not only has good credentials and has set up co-labs with IBM and HP, but also has abundant successful interconnection experience, such as interconnection with IBM OSS in India BSNL project, interconnection with HP NETCOOL in Shanghai Telecom project, and interconnection with sure@NGOSS in Beijing Netcom project.

Carry through high-quality service

The integrated network management system jointly built by OTE and ZTE not only can deploy networks and applications according to OTE’s practical needs in a fast, flexible, convenient, economical way, but also can manage various network elements in the existing network, monitor network running situations, and improve network maintenance efficiency. With this system, OTE effectively cut its operation costs, provides users with service of higher quality, and gain good social and economic efficiency.

installation and commissioning function through graphic interfaces

2) Realizing management, configuration, and remote upgrading of home terminals

3 Routine maintenance

1) Right- and region-based unified equipment management

2) Flexible resource management, performance statistics, and monitoring

3) Remote version upgrades and

batch upgrades

4 Troubleshooting

1) End-to-end fault diagnosis implemented with the pre-processing system, broadband NO.112 system, remote terminal management, user-side fault self-diagnosis and surveillance.

2) The number of complaints is reduced and the problem fix rate is raised with user self-diagnosis and-recover.

Smooth interconnection with the As a developed costal province,

Zhejiang has long been leading the country in constructing the

telecom infrastructure. With China Telecom’s “fiber in / copper out” construction, China Telecom Zhejiang Corporation tried its hand at access network transformation in 2006 and began to adopt the EPON technique to advance fiber access. The province now has in excess of 250,000 lines of broadband and narrowband ports constructed in xPON mode and it is engaged in building a world-leading fiber city in the next 5-7 years.

As the number of users increases, the existing O&M support system of China Telecom Zhejiang



● Instant enabling: After the configuration is sent to the ONU, the service can be enabled instantly and the service can be verified on site.

The whole process does not need man intervention. This decreases the time spent on on-site communications about configuration between subscriber line personnel and the network management center, avoids erroneous information caused by oral communications, and makes the whole process more standard and efficient.

Meanwhile, since the telecom O&M support system is relatively complicated, in the mature mode, it needs a certain period of time to implement service handling and service enabling through the 97 system and the automatic work order system. When the interface between the automatic work order system and the EMS is not realized, it is necessary to manually enter ONU authentication, port rate configuration, ONU-embedded IAD and IP address configuration, and user information.

Corporation’s branch companies has difficulties meeting the current service development requirement. For example, in the FTTH mode, it takes 2-3 hours to open an account for a user – the low operation efficiency badly impedes the large-scale service growth. An FTTx network, different from the original copper cable access network, has descended access points. Therefore, while giving users a large bandwidth and high-quality service experience, it causes problems such as scattered, numerous sites and presents the challenges of service enabling mode and network maintenance mode.

Integrated broadband O&M system put into commercial use

The O&M mode of fiber access networks is a brand new subject for both operators and equipment vendors. ZTE began to collaborate closely with China Telecom Zhejiang Corporation Hangzhou Branch Company in the second half of 2007. After repeated discussions and verification, they specified the support system development interface and

details between the equipment vendor and the telecom operator, determined the ONU logic tag authentication scheme, realized zero on-site configuration, and standardized the FTTx service enabling flow.

The authentication process with the ONU logic tag scheme has these features:

● Zero on-site configuration: After pre-configuration of the engineering phase is completed, ONU logic tag input is directly implemented in the office according to the work order. Engineering personnel only need to install in the ONU on-site and power it up and do not need to report any information to the 97 system or the EMS.

● Plug and play: After the ONU switches on, it automatically registers itself to the OLT. The OLT authenticates the ONU according to the ONU logic tag, LOID. After the ONU passes the authentication, the OLT or EMS automatically sends pre-configuration to the ONU.

In the light of the ONU logic tag authentication scheme, ZTE tailored the EMS batch data import scheme for the xPON system to deal with this problem.

The flow of this scheme is as follows: ONU template configuration ->editing the xls file for ONU batch import ->batch adding ONUs offline ->ONU going online and automatic configuration.

This batch operation means effectively reduces the huge workload of entirely manual enabling when the telecom operation support system interface has not been developed.

China Telecom Zhejiang Corporation: profitable new bandwidth

The ONU logic tag authentication scheme and the EMS batch data import scheme are a part of Hangzhou Telecom’s automatic equipment commissioning system. Decreasing the FTTx commissioning time from former 2-3 hours to 20 minutes, they have reached the goal of “instant

commissioning, plug and play, and zero on-site commissioning”, dramatically boosting its resource management capability and operation efficiency. Now Hangzhou Telecom has completely adopted this FTTx operation system; China Telecom Zhejiang Corporation is also actively promoting this system in Zhejiang Province, laying the foundation for large-scale progress of FTTx.

During the process of full service operation, ZTE helps the customer to hold fast to the advantages of its traditional fixed-line network brand, and to nurture an efficient, perceptive, good-quality fiber network brand. Besides caring about the construction of the access capability of “fiber in / copper out” and branding of a fiber network, they actively perfected the operation support system, which clears the obstacles to service development in the future for good and serves as a milestone in the progress of FTTx.

China Telecom Group remarks: “As for IT support system reconstruction, Zhejiang Company has formed an equipment management and IT support scheme that is in agreement

with its practical situation and can effectively support equipment management in scenarios of FTTB, FTTH, and FTTN and the automatic FTTx service release flow based on the ONU logic tag, realizing management and automatic configuration of the line resource across the full distance."

Network Development Department of China Telecom Zhejiang Corporation remarks: “With the logic authentication tag scheme, the FTTx operation system can be considered together with the 97 system, resource management system, and automatic work order system. This scheme has solved the problem of automatic release of voice and data service, simplified the service release procedure, increased service release efficiency, and cut the manpower cost of service enabling.”

Hangzhou Branch of China Telecom Zhejiang Corporation says: “ZTE’s FTTx operation scheme reduces the FTTx commissioning time from the former 2-3 hours to 20 minutes, greatly boosting our resource management capability and equipment installation efficiency.”

FTTx Service Enabling Flow

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