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Page 1: Telecom Italia and ZTE · Telecom Italia and ZTE: L’Aquila, ... Senior Vice President of ZTE, Sun Yuxi, Chinese Ambassador to Italy, Oscar Cicchetti, ... The FTTx solution, converged
Page 2: Telecom Italia and ZTE · Telecom Italia and ZTE: L’Aquila, ... Senior Vice President of ZTE, Sun Yuxi, Chinese Ambassador to Italy, Oscar Cicchetti, ... The FTTx solution, converged

Telecom Italia and ZTE:

L’Aquila, 17 December 2009 ―Telecom Italia with the support of ZTE, has offered a significant boost to post-earthquake reconstruction by laying modern fibre-optic network infrastructure into every single new home in the C.A.S.E. project (the acronym stands for Earthquake-Proof, Sustainable and Environmentally-Compatible homes).

Under the “L’Aquila Ultrabroadband Project” init iat ive, on schedule, al l

183 buildings on new plots have had ultra broadband connections installed capable of offering speeds of up to 100Mbps. Every family assigned one of the 4,600 new homes will have access to telecommunications services and broadband links with sufficient capacity to offer groundbreaking services such as IPTV and high-speed internet access.

Building the new fibre-optic network in L’Aquila is part of Telecom Italia’s

Next Genera t ion Network (NGN2) development project, which has begun in Milan and Rome with a view to equipping the country with modern ultra-broadband telecommunications infrastructure.

The “L’Aquila Ultrabroadband Project” required installing fibre-optic network infrastructure combining FTTB and FTTH architecture.

ZTE helped to supply transmission equipment and all network solutions both from the exchange to the building and within buildings (GPON and VDSL2), using high-density, low-energy line cards.

Oscar Cicchetti, Head of Technology & Operations at Telecom Italia, says, “Telecom Italia has made a significant contribution to the whole earthquake relief effort, from handling the emergency to supporting people in the aftermath of the earthquake. As part of this commitment, the company was keen to build a modern fibre optic network for L’Aquila capable of delivering advanced telecommunications services. We are pleased with what we have achieved with ZTE, and with our joint commitment to building a major piece of infrastructure that should help the city back on track economically and materially.”

Next-generation ultra broadband infrastructure (NGN) available in all 183 C.A.S.E. project buildings –– a total of 4,600 apartments –– offering links at speeds of up to 100Mbps Over 17,000 people will be able to use telecommunications services and broadband links designed for innovative services

From left to right: Zhu Jinyun, Senior Vice President of ZTE, Sun Yuxi, Chinese Ambassador to Italy, Oscar Cicchetti, CTO of Telecom Italia, and Massimo Cialente, Mayor of L'Aquila

Fibre-Optic Network Installed in New Houses at L’Aquila

News Brief

Page 3: Telecom Italia and ZTE · Telecom Italia and ZTE: L’Aquila, ... Senior Vice President of ZTE, Sun Yuxi, Chinese Ambassador to Italy, Oscar Cicchetti, ... The FTTx solution, converged

Vol. 12 No. 1 Issue 120 January/2010

A Monthly Publication

Cover Story

Sticking to Differentiated InnovationAn interview with Chen Jie, Senior Vice President of ZTE Corporation

P3

P12Long Term Evolution ― Imagine Life Now It can be expected the coming 4G technology brought by CSL will lead the wireless telecommunication market and bring an extremely fast experience to the people of Hong Kong

IMS: Key in LTE Age The nature of IMS allows it to easily fit into LTE network and create rich services for end users

P15

Focus

P10

P8 Infinite Integration Creating Everlasting ValueWith years of technology accumulation in the field of wireless broadband, ZTE ensures that its LTE products have a high technical level and can rapidly achieve technical convergence and be put into commercial use

Digital Dividend: A Driver of LTE Development in European MarketBecause of the digital dividend, LTE application seems to be more reasonable

www.zte.com.cn

Page 4: Telecom Italia and ZTE · Telecom Italia and ZTE: L’Aquila, ... Senior Vice President of ZTE, Sun Yuxi, Chinese Ambassador to Italy, Oscar Cicchetti, ... The FTTx solution, converged

2 ZTE TECHNOLOGIESJanuary 2010

Editorial Board

Editor-in-Chief: Gu Yongcheng

Deputy Editor-in-Chief: Huang Xinming

Editorial Director: Zhao Lili

Executive Editor: Yue Lihua

Circulation Manager: Wang Pingping

Subscription / Customer Services

Subscription to ZTE TECHNOLOGIES

is free of charge

Tel: +86-551-5533356

Fax: +86-551-5850139

Email: [email protected]

Website: www.zte.com.cn

Editorial Office

Product Marketing System

11F, R&D Building, ZTE Plaza,

Hi-Tech Road South, Hi-Tech Industrial Park,

Shenzhen, P.R.China

Postcode: 518057

Tel: +86-755-26775211

Fax: +86-755-26775217

Email: [email protected]

ZTE Profile

ZTE is a leading global provider of

telecommunications equipment and network

solutions. It has the widest and most complete

product range in the world—covering virtually

every sector of the wireline, wireless, service

and terminals markets. The company delivers

innovative, custom-made products and

services to over 500 operators in more than

140 countries, helping them achieve continued

revenue growth and shape the future of the

world’s communications.

Solution

Intelligent CDMA Network Solution The intelligent CDMA network solution offers intelligent capability throughout the whole network lifecycle including network planning, deployment, operation and maintenance, and optimization

26

Research Note

20Pivotal Role of Heterogeneous Networks in 4G Deployment Heterogeneous networks hold great promise to meet consumer demand for rich mobile Internet data, while providing optimum total cost of ownership for the network operators

Broaden Your Way with Resilient WiMAX Network The innovative concept of building a resilient WiMAX network has an insight into the operators’ needs from the perspective of hybrid macrocell networking and layered micro/pico/femtocell networking

23

P23

News Brief 28

P17

Third Eye

17Gartner’s Dataquest Insight: Scorecard for Vendors of LTE Network Infrastructure According to Gartner, ZTE is a strong player in the LTE industry with a quality product portfolio and a growth strategy that is both prudent and sustainable

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3ZTE TECHNOLOGIES January 2010

Cover Story

Sticking to

An interview with Chen Jie, Senior Vice President of ZTE Corporation

Chen Jie graduated from Nanjing University of Posts & Telecommunications in 1989 and received her master degree in Computer Science from the City University of New York in 1995. In 1989–1992, she was Manager of the Development Department, Zhongxing Semiconductor Co. Ltd. In 1995–2002, she worked as Senior Researcher, Manager of Research Department of AT&T Bell Labs, and later as General Manager of ZTE’s Branch in USA. In 2002–2007, she was appointed Vice President of ZTE and General Manager of ZTE Network Division. From 2007 till now, she serves as Senior Vice President of ZTE, responsible for management of the company’s wired infrastructure business. Chen Jie has gained rich experience in technology and management in the telecom industry for 20 years.

By Zhao Lili

Th o u g h o v e r s e a s t e l e c o m operators slowed down their pace of growth in 2009 due the

global financial crisis, the issuance of 3G licenses in China stimulated a new upsurge in 3G network construction. China’s three major telecom operators are competing for full-service operation and for higher wireline and mobile broadband speeds. ZTE has achieved outstanding performance in both optical access and bearer network products. Recently, the journalist of ZTE TECHNOLOGIES interviewed Chen Jie, Senior Vice President of ZTE Corporation.

Journalist: With the adjustment of strategic framework in the telecom industry, more and more operators worldwide have become full-service operators and are seeking to transform into service providers. What has ZTE done to its Wired & Service Products in face of the transformation trend? Is there any targeted strategy for product development?

Chen Jie: The transformation trend to full-service operation is bound to bring great changes to the industry chain. Equipment vendors support the transformation of operators, speed up the Internet infrastructure construction, and attempt to deploy new Internet applications; terminal vendors take

Differentiated Innovation

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4 ZTE TECHNOLOGIESJanuary 2010

Cover Story

advantage of mobile Internet to strengthen their competition for user interfaces and service platforms and to acquire other enterprises in the industrial chain; IT hardware providers, service operators and Internet service providers are actively building next-generation Internet computing and storage platforms, such as cloud-based server and storage devices; and VAS platform suppliers are using the Service Delivery Platform (SDP) to offer open access to Internet services.

The operators’ full-service operation poses a challenge to equipment vendors. However, international experience allows ZTE to have more space for development. We have helped many well-known global operators gradually transform into full-service operators. Being the equipment vendor that has the widest and most complete product range in the industry, ZTE is capable of providing total solutions at all network levels. This is our advantage. While the operators are seeking to transform into service providers, we keep on growing and consider the future te lecom development on the operators’ position. Now we can not only provide operators with custom-made solutions, quality project delivery and engineering service, and series products that support smooth evolution and upgrade, but also adopt the environmental-friendly and energy-saving concepts and technologies to help them implement full-service operation.

The FTTx solution, converged b e a r e r n e t w o r k s o l u t i o n , a n d Anyservice solution developed by ZTE Wired & Service Product Division help operators build their broadband access networks and bearer networks as required, and offer operable feature-rich value-added services. The major task for full-service operation is to

widely deploy broadband services over a high-bandwidth, quality and healthy broadband network. ZTE Wired & Service Product Division has been committed to delivering complete broadband products and solutions. In the field of service provisioning over the broadband network infrastructure, w e c a n h e l p o p e r a t o r s d e p l o y multimedia video business on a large scale. We have deployed large-scale commercial IPTV networks in many regions around the world, and believe that we will have a promising prospect in the video service arena.

J: Currently, the xPON technology has been widely recognized by the industry as the first choice for FTTx. Would you please introduce the development of ZTE xPON products in the global market? What do you think of the future of the xPON technology?

Chen Jie: Our ZXA10 xPON optical access products have leading

We have captured over 45% share in China’s xPON market and have widely deployed our xPON products in many countries and regions such as Italy, Sweden, Hong Kong, Malaysia, Thailand, Saudi Arabia, and Indonesia. As of September 30, 2009, our xPON products had reached 26 million lines in commercial use worldwide, with broadband ports exceeding 10 million lines.

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5ZTE TECHNOLOGIES January 2010

of resources in cloud computing, IOT and mobile Internet. What we are doing is not exactly an innovation, but a reasonable integration and evolution based on exis t ing technologies . ZTE has been studying the related fundamental technologies for many years. Take cloud computing for example, we have more than 6 years of accumulated experience in studying i ts core technologies , including virtualization, distributed computing and distributed storage. At the same time, we have developed a series of software and hardware platforms centered on these technologies, and some of the platforms have been widely applied to our products.

In addi t ion to developing our own technologies, we also pay great at tention to the cooperation and development of the industrial chain. We have established a comprehensive partnership with global well-known enterprises and research institutes. Recently, we held a forum on cloud

service access platform supporting GPON, EPON and P2P as well as the emerging next generation 10G-EPON and NG-PON in a single shelf.

The basis for the operators to choose ZTE as their strategic partners lies in our continuous investment in the xPON field. We will actively participate in the next-generation nationwide broadband network projects around the world and take it as our own responsibility to significantly improve the broadband access experience for subscribers.

J: The current hot technologies like cloud computing and Internet of Things (IOT) have attracted increasing attention from operators and equ ipment vendors . ZTE recently held a forum in Hainan on cloud computing. Could you tell us ZTE’s decisions and measures on service innovation?

Chen Jie: ZTE has been committed to innovating and developing its services and has invested a great deal

advantages in the global market. Among the world’s first vendors to develop and commercialize optical access products, ZTE has a profound unders tanding and c lear market positioning of the xPON technology.

We have captured over 45% share in China’s xPON market and have widely deployed our xPON products in many countries and regions such as Italy, Sweden, Hong Kong, Malaysia, Thailand, Saudi Arabia, and Indonesia. As of September 30, 2009, our xPON products had reached 26 million lines in commercial use worldwide, with broadband ports exceeding 10 million lines.

In product design, we take into full consideration the product compatibility and inheritance to protect the operator’s i n v e s t m e n t . O u r e x i s t i n g O LT equipment supports mixed insertion of GPON and 10G EPON. ZTE launched the world’s first next-generation PON prototype, which is a green, converged, future-proof, high-capacity, multi

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6 ZTE TECHNOLOGIESJanuary 2010

Cover Story

computing services.In addition, we have long recognized

the importance of cooperation in the industry chain. To meet the arrival of 3G, ZTE has set up a healthy ecological value chain in the form of “ZTE + CP/SP + terminal partners + operating partners”, effectively supporting the operators’ business growth. To make service innovations under the new circumstance, ZTE also needs cooperation to achieve win-win development. We will continue to expand cooperation with our partners in the new field and to jointly push forward a sustained and healthy development of software and service products.

J: ZTE’s wired infrastructure solutions, such as FTTx solution and RPR-embedded E-MSTP solution, have won the Infovision Awards at Broadband World Forum Europe. Could you say something about these achievements?

Chen Jie: First of all, we stick to the strategy of sustained product innovation. Being one of the first vendors to develop and commercialize optical access products, ZTE has a profound understanding and clear market positioning of the optical network technology, and attaches great importance to its product strategy. As our optical access series products are the major source of our business and also one of our strategy and development directions, they have been highly valued by top leaders of the company. We have set up R&D centers and innovation labs in Beijing, Shanghai, Nanjing and Shenzhen. By sticking to the strategy of sustained product innovation, we can maintain the leadership and competitiveness of core bearer network technologies and help our customers take the lead in

technologies and networks.Secondly, we stick to the strategy of

going deep into the market. Our product management team always dives deep into customers’ needs. Considering the technological innovation and product differentiation, we set up an expert team consisting of the chief engineer, marketing director, product managers, planning managers and marketing managers, who are sent deep into the frontline to do market research. Starting with the market environment, key needs of VIP customers and the competition situation, they excavate our product differentiation highlights and look for market opportunities.

Thirdly, we stick to the strategy of “creating highlights on the basis” in product differentiated innovation. “Basis” refers to basic product functions, such as the advantages of high reliability, high stability, and easy management in the E-MSTP solution. “Highlights” refer to the product differentiated highlights. For example, the E-MSTP solution provides enhanced packet processing capability. Such strategy concept can completely leverage our existing advantages while helping operators fast deploy their optical networks and protect their investment.

J: It is known that ZTE’s power supply products have seen rapid growth in the past two years. What are the current situation and possible trend for them?

Chen Jie: In 2009, our power supply products took the largest share in China’s te lecom power supply market and made strategic breakthroughs in many regions around the world, such as Asia-Pacific, India, South Africa, Europe and so on. Our overseas sales volume in power supply business increased by 200% on a year-

computing in Sanya, China’s Hainan province and got support from many partners and research institutes. The forum was also an interactive showcase of the phase achievements we have achieved in cloud computing.

Noticing that cloud computing has achieved great success in the Internet, ZTE is now working hard to promote this technology in the telecom field, or specifically, to apply it to the existing telecom equipment and software service with a view to offering operators new type of “service” products featuring cost-effectiveness, ease of deployment and high reliability. These products are quite different from the original ones in design pattern and business model. Customer-centered design and service-centered business model are the core of these new products.

N o w w e c a n p r o v i d e a f u l l range of cloud computing products including infrastructure, platforms and applications. In particular, we can supply the Unified Open Environment (UOE) platform for rapid development of telecom and Internet services. This platform helps third-party software providers simplify the process and reduce the difficulties in developing converged telecom and Internet services and products, even if they have no solid background in telecom domain. In this way, the software developers can focus their attention on service innovation rather than implementation of technical details in telecom.

We can also offer a large number of cloud computing products and services. On the one hand, we have “clouded” our original value-added service products, allowing them to directly offer cloud computing services; on the other hand, we have applied cloud computing platform directly to the IOT and mobile Internet to deliver cloud

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7ZTE TECHNOLOGIES January 2010

include better customization of service and terminal products and increased investment in the R&D of Managed Wired & Service Products.

J: Finally, would you please tell us ZTE’s development vision for its Wired & Service Products and its overall development strategies?

Chen Jie: Our development vision in the Wired & Service Product sector is to become world’s leading provider of new-generation wired network solutions, ranking top three in the global market share in 2012.

“ C o s t l e a d e r s h i p , r a p i d c u s t o m i z a t i o n a n d s u s t a i n e d innovation” are our overall product d e v e l o p m e n t s t r a t e g i e s . C o s t leadership strategy is one of our major development strategies we have insisted on. ZTE’s Wired & Service Product Division has been devoted to reducing product costs, helping customers’ reduce their TCO to cope with the increasingly cost pressure and get a competitive edge in the long run.

We insist on customer-oriented philosophy to offer customers tailor-made products. Rapid customization is one of our core competitive edges. We also insist on the strategy of sustained product innovation to maintain the leadership and competitiveness of our core technologies, helping our customers take the lead in technologies and networks.

overseas platforms, 96 overseas offices and 29 domestic offices, there are maintenance engineers specialized in Wireline & Service Products who can provide various on-site service models such as supervision and software debugging. To ensure quality projects, all service models are operated and managed through PMO.

There are hundreds of turnkey wired network projects we are doing or have finished around the world. For example, the CADAFE project is a turnkey project in Venezuela. It contains DWDM and MSTP/10G SDH transmission networks, with a total length of 6800Km and features like multi-service support capability, large capacity, high bandwidth, flexible scalabil i ty and abundant service interfaces. We adopt the advanced management model to ensure perfect customer service and high-quality project delivery.

Wi t h t h e t r a n s f o r m a t i o n o f global operators, major equipment manufacturers in the industry begin to implement strategic transition, adjust their organizational structure, integrate resources and increase investment in telecom service. Their revenues from telecom service are increasing year by year. One of our strategic goals is to develop from a hardware provider to a provider of excellent software and service products. Our major developments in the service area

on-year basis, laying a solid foundation for future market expansion.

The current financial crisis has led to reshuffling of the global telecom power supply market. To further reduce procurement cost, global MTOs trend to independent model selection and centralized purchase of power supply products, which will create an unprecedented opportunity for fast and large-scale deployments of power supply products worldwide. We continue to increase our investment in the R&D of environmental-friendly, energy-saving and efficient power supply products and offer renewable energy solutions to over 40 operators around the world, including CMPAK, MTN, TMI, ET, ETC and so on; we have strategic cooperation with high-end operators, providing custom-made and differentiated power supply solutions for them, such as the co-site power supply solution for operators in the Indian market and the 48V/24V co-rack power supply solution for MTN in South Africa.

The direction of our efforts in power supply business in the next 3-5 years is to focus on Tier-1 markets and promote the sales growth in overseas markets, making us among the global mainstream providers in the field of telecom power supply.

J : W h e n c o o p e r a t i n g w i t h operators in the Wired & Service Product sector, how does ZTE ensure perfect customer service and high-quality project delivery? What are your comments on the growth of ZTE’s Wired & Service Products in the service area?

Chen Jie: We have set up a global customer service network capable of delivering fast and convenient service to customers worldwide. In ZTE’s 12

Our development vision in the Wired & Service Product sector is to become world’s leading provider of new-generation wired network solutions, ranking top three in the global market share in 2012.

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8 ZTE TECHNOLOGIESJanuary 2010

Focus

From 2G, 3G to 4G, also from the terminal, the equipmentto the services, ZTE has been

leading the industry of communication technologies and provided integrated solutions to global operators. In 2005, ZTE started tracking and standardizing LT E t e c h n o l o g y a n d a c t i v e l y participated in LTE standardization efforts at organizations like 3GPP.

So far, ZTE has joined more than 40 standard organizations, alliances and forums, actively participated in the discussion and drafting of standards at ITU, 3GPP, 3GPP2, IEEE, OMA and other organizations, and submitted over 1,800 proposals to 3GPP covering wireless air interface, RAN and CN, of

Infinite Integration Creating Everlasting Value

which, more than 500 proposals have been adopted by 3GPP. In addition, ZTE possesses 8 rapporteur seats in 3GPP. As of September 2009, ZTE had submitted to 3GPP a total of more than 1,500 proposals on LTE/SAE. In December 2006, ZTE became one of the first equipment vendors to join Next General Mobile Network (NGMN), and in October 2007, ZTE became one of the first equipment vendors to join LTE/SAE Trial Initiative (LSTI). ZTE has been actively promoting the LTE industry development.

W i t h y e a r s o f t e c h n o l o g y accumulation in the field of wireless broadband, ZTE ensures that i ts LTE products have a high technical

l e v e l a n d c a n r a p i d l y a c h i e v e technical convergence and be put into commercial use. Currently, ZTE has established R&D centers in Xi’an, Shenzhen, Shanghai, Nanjing, the United States, Europe and other places. Over 2,000 engineers are devoted to LTE research and development.

Z T E a c t i v e l y c o m m u n i c a t e s and cooperates with the world’s leading operators to jointly make product planning and push forward LTE indus t r ia l iza t ion . The LTE series products currently under its research cover FDD LTE and TDD LTE, including macro base stations, d i s t r i b u t e d b a s e s t a t i o n s , c o r e network equipment, unified network

By Liu Shouwen, Zheng Hong

Review of ZTE’s LTE Development

Focus

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9ZTE TECHNOLOGIES January 2010

business Evolved Packet Core (EPC) to complete the total system tests. As an industry first to use third party UE to complete the tests, ZTE achieved its expected results, including zero fault, zero malfunction and 100% connection rate. This TD-LTE test also makes ZTE the first company to complete a performance test under a 350Km/h high-speed mobile channel model, reaching the best theoretical value. With its excellent testing results, ZTE was selected to deploy TD-LTE indoor network for Expo 2010 in Shanghai

In October 2009, ZTE s igned trial agreement with Etisalat, the largest international operator in the Middle East. And in November, ZTE was invited by SingTel, a leading multinational operator in the Asia-Pacific region, to participate in the united LTE test. The trials, which are scheduled to commence in the first half of 2010, will take place over a period of six to nine months.

In June 2009, Gartner released “Scorecard for Vendors of LTE Network Infrastructure” and graded the products and services of 10 existing LTE vendors in the following seven areas including market understanding, offering/product strategy, geographic strategy, sales and marketing strategy, market responsiveness and track record, and overall viability to reflect the comprehensive strength of each vendor in LTE, and with its continuous investments in the field of LTE and good performance, ZTE ranked third globally.

With the aim of becoming one of the leading manufacturers of LTE, ZTE will continue to invest in LTE, contribute to the development of next generation network together with global operators, and play a dominant role in next generation network construction.

management, service products and terminal products, meeting various needs of the market. Meanwhile, ZTE keeps on innovating LTE terminals, investing a great amount of R&D resources in them. Now, it has mastered core technologies of LTE terminals and possessed many core patents, capable of providing LTE terminals compatible with several standards. As a vendor of both network equipment and terminals, ZTE is committed to developing the LTE industrial chain.

ZTE LTE products enjoy leading performance, with a single cell providing data rates of up to 150Mbps on the downlink and 50Mbps on the uplink, thus allowing many mobile phone users to enjoy high-speed data services in dense traffic urban areas while reducing the TCO of network construction. Under the single-mode LTE, the output power of a RRU can reach 2 × 40W. The base station platform adopts high efficiency power amplifier, capable of saving 40% energy consumption. The SDR base stations can save 70% TCO compared with traditional base stations.

ZTE’s SDR technology enables the evolution and upgrade from WCDMA, CDMA2000, TD-SCDMA to LTE based on the same unified hardware platform. With this technology, multi-standard wireless communications systems can coexist on the same hardware platform and the network can be flexibly deployed.

ZTE is the first one in the industry to adopt, in its wireless products, the advanced MicroTCA platform, which boasts such outstanding advantages as multi-standard, multi-module, high performance, high reliability and low-cost. The evolution to LTE simply requires adding the LTE BP board, and the hardware structures, control and access modules can be reused, reducing

costs to the maximum. ZTE’s wireless solution Uni-RAN

provides a unified, integrated and evolving wireless access network. Through a unified platform structure, i t p rovides a un i f ied SDR base station solution, unified RNC/BSC platform solution and unified network management solution to meet the current multi-band and multi-standard convergence requirement and realize a smooth evolution to the next generation technologies. At the same time, the network structure can be simplified and the TCO can be effectively reduced.

ZTE began to design and develop LTE system in 2007; launched LTE prototype in early 2008; launched LTE test prototype and participated in testing and trials hosted by standard organizations and operators at the end of 2008; in 2009, ZTE made a phenomenal progress in the R&D and marketing of LTE and has entered partnerships with over 10 leading operators worldwide including Telstra’s CSL, Telefonica and SingTel.

In the Asia-Pacific region, ZTE is collaborating with CSL to build the world’s first dual-band LTE commercial trial network that supports LTE/UMTS dual-mode operation and will test LTE at the 2.6 GHz /1.8GHz dual bands in phases.

In Europe, ZTE received LTE testing permission from Telefonica and would do relevant LTE tests in Madrid. Moreover, ZTE signed a LTE trial agreement with Vodafone D2 in Germany. The two companies jointly conducted a GSM/LTE dual-mode demo and launched the LTE field test at the Digital Dividend (DD) band.

In China, ZTE was the first company to complete and pass the TD-LTE Phase II test with China Mobile; ZTE became the only vendor to use pre-

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10 ZTE TECHNOLOGIESJanuary 2010

Focus

Digital DividendA Driver of LTE Development in European Market

Overview

Long Term Evolution (LTE) is currently under development. It provides a chance for operators

to migrate networks systematically over a long period of time. However, LTE faces a lot of challenges:■ Economic cr is is impedes the

investment in the system.■ LTE signal is fragile due to the

higher grade modulation. 2.6GHz has sufficient bandwidth but bad propagation capability.

■ Traditional voice and SMS services are st i l l the main business of operators. But the standard strategy towards these services has not been formed. Which will be the winner ― CS Fallback, IMS or Voice over LTE via Generic Access (VoLGA)?

■ When LTE provides data rates of up to 100Mbps per site, the backhaul will become a bottleneck.

■ Terminal availability determines the success of large-scale LTE commercial application.

Most of operators have already recognized these challenges and

continuously adjusted their strategies, which has caused a delay in the process of LTE commercialization. The LTE era would arrive only when the challenges are all solved.

Digital Dividend European countries usually allocate

UHF band to digital TV. As digital TV uses spectrally-efficient digital t ransmission, a port ion of radio spectrum in the UHF band (790–862MHz) can be freed up and re-farmed for the mobile communication application. This portion of radio spectrum is called digital dividend (DD). Most of European countries will complete the transition towards digital TV and release DD spectrum by early 2012.

Germany has been a leader in the release of DD spectrum and began R&D of it at the beginning of 2009. In Germany, wireless microphones in theaters are using DD band and the DD band will be put up for auction in 2Q 2010. After the auction, the DD band will be used initially for “wireless

DSL” service in the rural areas. The service will be put into commercial use before Christmas in 2010.

All the operators in Germany are considering deploying LTE in DD band (see Table 1). ■ Vodafone Group has the strategy of

moving to the HSPA+ and then to LTE. But Vodafone D2, a mobile telephone company operating in Germany, will move straight to DD band LTE before end of 2010.

■ T-Mobile had planned to deploy LTE at the beginning of 2010. But it put its plan on hold as the conditions are immature and the DD band is yet to be liberated.

■ Another German mobile operator E-plus has already trialed HSPA in DD band. Now it is preparing to trial LTE in DD band.

The 790–862MHz band (channels 61–69) has a 12MHz central gap between DL and UL directions (see Table 2). Comparing to the other bands, DD has such advantages: At first, DD band allows for a single cell coverage radius of over 8Km in the rural area.

By Yu Luo

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11ZTE TECHNOLOGIES January 2010

ChallengesDD band is superior to the other

bands. But deploying LTE in DD may still encounter many obstacles like dealing with millions of useless wireless microphones in theaters; the adjacent DVB channel interference; the relatively low terminal chipset R&D speed compared to LTE network deployment.

ZTE began to invest hugely on DD LTE at the beginning of 2009. The frist DD LTE showcase was launched in October this year. While keeping its strong R&D capability, ZTE cooperates closely with many terminal chipset manufacturers. The frist commercial DD LTE dongle will be ready in May 2010. Moreover, ZTE has reached agreements with China Banks to provide up to US$25 billion credit for overseas projects, so it can offer end-to-end solutions which are attractive both technically and financially.

Because of the digital dividend, LTE application seems to be more reasonable. We believe that LTE could really make profits for the operators in the near future.

decreased ― the coverage radius of DD base station is expected to be 10.10Km while that of the 2.6GHz base station is 1.61Km according to the UL link budget of Okumura-Hata coverage model for rural area. Secondly, the operation and maintenance costs will be greatly reduced due to the less complex network structure. Thirdly, the side effects brought by the global financial crisis can not be removed in a short term. Operators care much about decreasing CAPEX, and DD LTE just provides reduced CAPEX.

Other European Countries’ StrategyIn UK, the 61, 62 and 69 channels

a r e o c c u p i e d b y n o n m o b i l e communication services. The UK government plans to clear these channels of the existing services so as to align its approach to the digital dividend with other European countries. France will release the digital dividend by 2012. European countries are inspired by the digital dividend opportunity and pay great attention to it.

In the dense urban area, it is capable of penetrating into buildings. Secondly, in the first stage of DD LTE, the focus is on data service coverage in the rural areas of Germany, and there is no need to consider the CS service, while on the other hand CPE terminals of big size are allowed, which wins time for R&D of smaller terminals.

The DD LTE application in Germany will set successful examples to operators in other European countries. The LTE deployment in DD band next year could use the following plan:■ R u r a l : 1 0 M H z D D b a n d f o r

continuous coverage■ Urban: 10MHz DD band for in-

building penetration■ CBD: 20MHz 2.6GHz/2.1GHz/

1 8 0 0 M H z f o r c a p a c i t y a n d performance

The sufficient bandwidth of higher frequencies provides an important supplement to the DD band in terms of capacity and performance.

The DD LTE will deliver great benefits to operators. Firstly, the quantity of base stations will be greatly

Table 1. German operators’ LTE progress

Operator 2.6G LTE Deployment Time DD Band LTE Deployment TimeT-Mobile 2011 End of 2010

Vodafone D2 After 2012 End of 2010

E-plus Unknown End of 2010

O2 Unknown End of 2010

61 62 63 64 65 66 67 68 69790–798 798–806 806–814 814–822 822–830 830–838 838–846 846–854 854–862

Downlink Duplex Gap Uplink

30MHz (6 blocks of 5MHz) 12MHz 30MHz (6 blocks of 5MHz)

Table 2. 790–862MHz DD band

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12 ZTE TECHNOLOGIESJanuary 2010

--- Imagine Life NowZTE Helps CSL Deploy First LTE Commercial Trial Network in Hong Kong

By Tang Yong, Zheng Hong

Focus

In March 2009, CSL, Hong Kong’s leading mobile operator, together with ZTE, announced that they had deployed the world’s first large-scale HSPA+ all-IP

commercial network with download rates of up to 21Mbps, which brought a “shock” to the mobile operating market of Hong Kong. Only half a year later, on Sept 2, 2009, CSL and ZTE jointly held an event to demonstrate new LTE technology with peak download rates in excess of

Long Term Evolution

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13ZTE TECHNOLOGIES January 2010

migration with only software upgrade. The current CSL 2G/3G network adopts the SDR technology and can easily achieve flexible network upgrade or enable coexistence of 2G, 3G, and 4G systems.

L o n g - t e r m c o e x i s t e n c e o f 2 G , 3 G a n d LT E i s a m o b i l e telecommunication trend, so it will be difficult for an operator to maintain its leading position in the new round of competition. The accelerating competition, disappointed financial payback on 3G and global economic slowdown aggravate many problems in the te lecom industry such as reduced inves tment , decreas ing Average Revenue Per User (ARPU), h igh maintenance cos t of aging equipment . There are more and more factors that operators need to consider when making LTE network planning, such as Total Cost of Ownership (TCO) savings, investment protection, easy and flexible operation and maintenance , compat ib i l i ty with other networks and service’s c o m p e t i t i v e n e s s a n d p o t e n t i a l

120Mbps, and CSL promised to build the LTE commercial network in Hong Kong in Q4 2009.

At the event, ZTE revealed details of the plans for CSL’s Next G network and demonstrated LTE services to the friendly users and 150 media reporters from all over the world. “By using LTE technology, it only takes 0.5 second to download an MP3, 5 seconds a music album, and only 10 seconds a movie with 100M,” CSL’s Chief Technology Officer, Mr Christian Daigneault said. The download speed surprised all the audience. Mr. Tarek A. Robbiati, Chief Executive Officer of CSL, said, “LTE is no longer a lab technology, and we have experienced its charm today. In the future, we will work closely with ZTE to enable the people of Hong Kong to enjoy the fast and reliable LTE services anywhere.”

The showcased LTE equipment looks no different from the 2G/3G equipment utilized currently by CSL as it employs ZTE unified Software Defined Radio (SDR) platform, which can accomplish smooth network

Leaders from CSL, Telstra and ZTE attend the jointly-held event

By using LTE technology, it only takes 0.5 second to download an MP3, 5 seconds a music album, and only 10 seconds a movie with 100M.

Long Term Evolution

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14 ZTE TECHNOLOGIESJanuary 2010

Focus

64QAM and MIMO functions, and a high-speed HSPA+/LTE network will be launched.

Fast customization Meeting Customer Needs

Actually there was a small episode dur ing the cooperat ion between ZTE and CSL. In March 2009, ZTE and CSL announced availability of the HSPA+ commercial network with high-speed wireless download rates of up to 21Mbps. In order to consolidate its network leadership in Hong Kong and continuously exceed customer expectations, CSL decided

support 1.8Mbps. Its leading image was greatly affected. Even worse, the high maintenance cost and weak competitiveness of data services of its previous four networks, which have two standards and three bands, stood in the way of network optimization, convergence and smooth evolution. Thus, CSL decided to adopt new t echno logy to have a tho rough network optimization and upgrade. It required the supplier to not only integrate its existing networks into a single network but also transform them to HSPA+ and LTE.

After many technical discussions, a

profitability. To solve the above problems,

ZTE launches its leading-edge Uni-RAN solution based on its unified SDR platform and end-to-end LTE solutions, which can help operators stand out in the competitive markets in the LTE era.

SDR Simplifying Complex Network SDR is an innovative technology

that leads to a revolution in the whole wireless broadband field. CSL deployed ZTE’s state-of-the-art SDR technology, which not only reflects its keen pursuit of advanced technology and high network quality but also its precise grasp of future technical development trend. Thanks to SDR, the maximum download and upload speeds of the HSPA network have been improved to 14.4Mbps HSDPA and 5.76Mbps HSUPA respectively. In the near future, the network can be migrated to LTE with only software upgrade and the people of Hong Kong can experience the world’s fastest mobile broadband network.

Mr. Robbiati announced in the p re s s confe rence tha t CSL had signed a contract with ZTE on LTE commercial network deployment at the end of 2009 and the network would be the world’s first dual-band LTE commercial network operating at 2.6GHz and 1.8GHz. “CSL adopts ZTE unified SDR platform and it can migrate to 4G network flexibly. The construction cost will be significantly reduced and the network construction speed will be much faster than other operators,” said Mr. Robbiati.

However, more than a year ago, CSL faced many chal lenges. I ts r ivals had delivered 3.6Mbps or even 7.2Mbps HSPA services, while CSL HSDPA network could only

It can be expected the coming 4G technology brought by CSL will lead the wireless telecommunication market and bring an extremely fast experience to the people of Hong Kong.

lot of field research and comprehensive comparison of solutions of different telecom vendors, CSL finally chose ZTE’s Uni-RAN solution based on SDR technology. The Uni-RAN solution can accomplish multi-network convergence and significantly improve the network performance.

According to the plan, ZTE will replace the existing 2,800 base stations with its SDR base stations gradually, and the replacement process is divided into 3 stages: In the first stage, ZTE will use SDR equipment to replace WCDMA 2100MHz equipment and establish some new sites; in the second stage, all the GSM 900MHz and 1800MHZ equipment will be replaced, and a WCDMA 900MHZ network will be deployed; in the third stage, the network will be upgraded to support

to deploy the first LTE network in Hong Kong. ZTE was under great pressure at that t ime as the LTE standards were just finished. After thorough communication between both sides, ZTE committed more resources on LTE system, spent only several months to bring out products and functions ahead of the schedule, and achieved satisfying results in this demonstration. Mr Daigneault said, “ZTE is strong in R&D and quick in response. We hope for further cooperation with ZTE. We will build a large-scale LTE commercial trial network at the end of 2009.”

It can be expected the coming 4G technology brought by CSL will lead the wireless telecommunication market and bring an extremely fast experience to the people of Hong Kong.

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15ZTE TECHNOLOGIES January 2010

IMS:

End users always expect to enjoy ubiquitous high-bandwidth services through t h e i r m o b i l e p h o n e s .

Mobile operators, in order to get an edge in the competition, are stepping into LTE testing and deployment stage with the purpose of providing high-performance, high-bandwidth and better user experience for their customers. They also hope to get an upper hand in operating LTE networks and services. In the next three to eight years, LTE will undoubtedly become an important enabler in the transformation of mobile networks.

The high bandwidth of LTE will result in rapid increase of packet traffic. Thus higher requirements are raised for operators’ network resource management, for example, how to implement policy-based resource management, and how to charge flexibly. The resource management, traffic control, DPI, and charging functions have transformed operators

into “smart pipe” providers that have good service awareness. However, the operators are not satisfied to be considered as simple pipe providers. Most of them still hope to have control over services, play an even more important role in the value chain, leverage the advantage of managing large user data base, and generate more revenues from a variety of new service deployments.

IMS, based on SIP call control architecture, adopts the separation of media, services and control that enables fast deployment of all kinds of multimedia services through a flexible and open service platform. Its access-agnostic nature and resources control features provide the operators with sources of income from application services.

ZTE, a global leader in mobile communicat ions , has ro l led out i ts IMS solution for LTE access (see Figure 1) based on the years of experience in deploying Circuit

Switched (CS), Packet Switched (PS), and IMS services.

ZTE is capable of delivering end-to-end IMS solutions including IMS core network, service platform, access, and operations support. It provides operators with network resources management as well as self-operating services. ZTE’s Resource and Charging Cont ro l P la t fo rm (ZXUN RCP) provides resource admission control, policy and charging control. When there is heavy LTE data traffic, ZXUN RCP can coordinate with ZTE’s Call Session Control Function (ZXUN CSCF) and ZTE’s Gateway (ZXUN xGW) to allow real-time services like voice and video to get the priority in using transmission resources, thus effectively ensuring the quality of LTE real-time services. The Session Continuity Application Server (SCAS) in Figure 1 is used to ensure the continuity of voice and other multimedia services with the existing CS services. This is especially important in the initial deployment

By Chen Dan

Key in LTE Age

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16 ZTE TECHNOLOGIESJanuary 2010

key driving force for LTE, voice over LTE is a must because it is still the big revenue generator. Currently LTE uses the Single Radio (SR) mode, which makes it impossible to deploy services on both LTE and UTRAN/GERAN, so there are requests for voice handoff and CS access , especial ly when LTE is initially deployed as hotspot islands. One approach is to instruct an LTE handset to “fall back” to the CS network when a voice call is being imitated or received; another approach is Single Radio Voice Call Continuity (SRVCC), which uses IMS system to perform call anchoring and handover based on third party call control mechanism.

Backed by a sound IMS core network, powerful packet data service control units ZXUN uMAC and ZXUN xGW, and the Mobile Service Control Server/Mobile Gateway (ZXWN MSCS/MGW) supporting evolution to LTE, ZTE is capable of delivering complete voice and multimedia over LTE solutions, including the CS Fallback (CSFB) solution and the IMS-based SRVCC solution.

We believe LTE deployment will boost IMS market. The nature of IMS allows it to easily fit into LTE network and create rich services for end users. ZTE is one of the few vendors in the world that offer end-to-end IMS solutions. In September 2009, ZTE launched its brand-new ZIMS 2.0 solution, featuring full-service operation capabilities. It takes the lead in Chinese IMS market, with large-scale commercial deployments throughout the Chinese market. With numerous innovative and mature application cases, ZTE has been among the global mainstream IMS providers.

surveillance, three-screen (PC, TV and mobile phone) interaction, multimedia ring tone, and multimedia called ID. Apart from the services defined by the RCS Initiative such as Presence, Instant Messaging, Media Sharing, and Network Address Book, ZTE can also offer file sharing, click-to-dial, electronic whiteboard service, etc.

To work with Web 2.0, ZTE’s IMS system also offers open interfaces for application developer to use the call control, messaging, conference capabilities to integrate into their own applications.

With the launch and development of LTE mobile phones, multimedia services over LTE will definitely become the key to attracting users.

Voice Services over LTEThe high bandwidth, high mobility

and low latency of LTE ensure that users can enjoy the same voice service over LTE as over tradit ional CS network. In the LTE specifications, the CS core network is no longer supported. Even though voice is not the

stage when the LTE coverage is not so wide.

Multimedia Services over LTEAs a new wireless broadband

technology, LTE boasts a wireless data rate comparable to the fastest one so far supported by the fixed broadband technology, which can greatly reduce latency and allow users to experience quality multimedia services on a real- t ime basis . In addit ion, the open structure of IMS also helps to shorten the time required for service deployment, facilitating operators to deliver feature-rich services.

Multimedia services are the key to attracting end users. ZTE’s IMS provides operators with an ideal architecture to deploy their own-con t ro l l ed mul t imedia se rv ices and meanwhile it is open to other application developers that could bring more varieties of applications.

ZTE’s IMS solution can provide individuals and enterprise users with diversified services including high-definition video conference, video

Figure 1. IMS solution for LTE access.

IM/PS/GM Media Sharing

HD MultimediaConference

Service Continuity

ZXUN HSS

ZXUN CSCF

ZXUN RCP

IBCF IBGF

MGCF MGW/SGW

IP Network

PSTN

PLMN

LTEZXUN iMAC ZXUN xGW

Other Access

MSCServer /MGW

CS

Focus

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17ZTE TECHNOLOGIES January 2010

Third Eye

June 29, 2009 By Sylvain Fabre, Frank Marsala, Jouni Forsman, Tina Tian, Joy Yang, Akiyoshi Ishiwata

Gartner’s Dataquest Insight:

as companies.

Strategic Scorecard for LTE Network Equipment Vendors, 2009

Gar tne r r a t ed t he qua l i fy ing mobile infrastructure vendors using seven standard Gartner criteria on a scale from 1 to 5, with 1 being best and 5 worst. The seven criteria include Product or Service, Market Understanding, Offering/Product Strategy, Geographic Strategy, Sales and Market ing Strategy, Market Responsiveness and Track Record,

An LTE market opportunity has emerged during the past two years. Most vendors now

have relatively well-defined solutions, which are scheduled to be ready for initial rollout by the end of 2009. LTE technology may reduce carriers’ operating costs for mobile data — compared with third-generation (3G) technology — as data volumes increase and as mass use of the mobile Internet is enabled by compatible devices and fast, low-latency backhaul.

In this document we evaluate the main vendors of LTE network infrastructure. Some focus on the r ad io capab i l i t i e s o f the i r LTE offerings, while others have a more comprehensive view including the evolution of an all-IP core. Other factors that distinguish one vendor from another include the scalability, interoperability and modularity of their products, their ability to deliver and deploy networks, their skills in facilitating carriers’ moves to IP networks, and their perceived viability

and Overall Viability. In addition, each criterion was given a numerical weight. The vendors were then ranked according to overall score, with each score rounded up to the nearest digit, and the results color-coded for easier comprehension.

Scorecard for Vendors of LTE Network Infrastructure

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18 ZTE TECHNOLOGIESJanuary 2010

Third Eye

Our comparison of LTE vendors based on these seven criteria yielded the results shown in Table 1. There are several types of vendors in the sample group, and not all are strictly comparable from the perspective of LTE offerings. For example, while Ericsson, Huawei, NSN, ZTE, Alcatel-Lucent and Nortel (at least until the NSN transaction goes through) can be considered end-to-end vendors, others, like Starent (focused on EPC core and without a radio offering) and Motorola (with its own radio product but an EPC from Starent), are more specialized. Hence our ratings aim to capture the overall relative value and attractiveness of each vendor’s LTE offering, regardless of the specific parts of the network being focused on.

Overall Evaluation of Global LTE Network Equipment Market Opportunity

Gartner expects that LTE will become the dominant mobile network technology and that most network operators will upgrade to it . But operators are actively evaluating

multiple technology options. Some may choose to extend the life of WCDMA networks by deploying HSPA+, a technology that could support up to 80Mbps download rates in its most sophisticated (and costly) configuration, making it comparable to LTE. This could delay the need for LTE until LTE Advanced (LTE-A) or other fourth-generation (4G) technology options are more widely available (around 2012). Evolution from High-Speed Downlink Packet Access (HSDPA) or High-Speed Uplink Packet Access (HSUPA) to HSPA+ could be less disruptive for operators than moving to LTE, and potentially cheaper too.

But both HSPA+ and LTE will require new client devices as well as upgraded transport infrastructure — consumer and business customers will need to be persuaded to upgrade to high-end handsets and new wireless broadband modems.

Gartner believes that most operators wi l l see the market ing benef i t s of investing in the latest, fastest technologies, such as LTE, rather than taking the incremental step of

upgrading to HSPA+.Key predictions:

■ LTE will become the dominant 4G technology for CDMA (3GPP2) and GSM/UMTS (3GPP) carriers.

■ More than 70% of UMTS carriers w i l l t a k e e v e r y s t e p o n t h e migratory path, including moving to HSPA+ and then LTE.

■ No UMTS carriers will change to WiMAX as their dominant mobile technology.

■ Over 90% of CDMA carriers will adopt LTE.

■ Most cdma2000 deployments will stop at EV-DO Rev. A.

■ More than 90% of WiMAX mobile carriers will not leapfrog to LTE; they will consider upgrades to IEEE 802.16m, if possible.

Overview of ZTE LTE Business

ZTEZTE receives an overall rating of

Strong for its LTE business.I t has a good set of products.

Its growth strategy is prudent and sustainable. ZTE is also getting better

Table 1. Strategic scorecard for leading vendors of LTE network infrastructure, 2009

Criterion Ericsson Huawei ZTENokia

SiemensNetworks

StarentNetworks

AlcatelLucent Fujitsu Motorola NEC Nortel

Product Service VS S S S S S S S S SR

Market Understanding VS S S S S S S S ST ST

Offenng/Product Strategy VS S S S S S ST S ST SR

Gecgraphic Strategy VS VS VS VS ST VS S S S S

Sales and Marketing Strategy S S ST S S S S S ST ST

Market Responsiveness and Track Record VS S S S S S S S S ST

Overall Viability S VS S ST S SR ST SR ST HR

Overall Rating VS S S S S S S S ST SR

VS=very strong; S=strong; ST=stable; SR=some risk; HR=high risk Source: Gartner (June 2009)

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19ZTE TECHNOLOGIES January 2010

at marketing itself outside China, although its strategy for infrastructure remains very regional. This regional focus is partly a positive thing, since Asia/Pacific generally offers good growth opportunit ies for mobile infrastructure vendors.

ZTE positions itself as an alternative p a r t n e r f o r o p e r a t o r s f o r LT E infrastructure. It will mainly focus on North America, Western Europe, Japan and China.

ZTE has been involved in LTE-related work for some years. Before 2006, it was involved in R&D work on MIMO and OFDM technology. In 1Q06,itbeganparticipatinginresearchtoward the 3GPP standard. In 4Q06, it was among the early group of sponsors joining the Next Generation Mobile Networks (NGMN) Alliance. In 1Q07, ZTE began R&D on LTE, and in 1Q08 demonstrated an LTE prototype live in Barcelona. In 4Q08, ZTE exhibited a pre-commercial LTE system in Beijing. ZTE’s plans for 2010 include a commercial LTE application in the first half of the year.

The company’s product set includes the ZTE Unified Radio Sub-System Platform and OneNetwork platform. ZTE has several form factors planned for eNodeBs: distributed, compact, femtocell and picocell.

ZTE receives a Strong rating for overall viability. This is the result of a strong rating for cash flow (cash from operations as a percentage of revenue for the past 12 months was 8.4%), a good rating for profitability (a net margin of 4.0% in the past 12 months), a strong rating for revenue growth (26.7% in the past 12 months), and a good score for the balance sheet metric that measures solvency (the current ratio is 1.41). The company’s strong financial position has allowed it to

maintain its R&D spending at 10% of revenue, which should put it in a good position to capitalize on the growth expected from LTE.

The Impact■ Although we expect LTE networks

to exhibit multivendor scenarios in both core and radio networks, there are too many vendors in this sector at present. We expect further rationalization and fewer vendors as the economic downturn and the trend for reduced capital expenditure continue.

■ Since all but one of the vendors analyzed have a rating of at least Strong for their products, the choice of vendor may hinge more on their perceived overall strength or risk, rather than on technological superiority.

■ Only the leading vendors can sustain the level of R&D necessary for LTE technology to succeed while also enjoying the support of an existing installed base for legacy revenue. This leaves the door open

to further mergers and acquisitions. Ericsson’s LTE business merits an

overall rating of Very Strong.■ The LTE businesses of Huawei,

ZTE, NSN, Starent, Alcatel-Lucent, Motorola and Fujitsu each merit an overall rating of Strong.

■ The LTE business of NEC merits an overall rating of Stable.

■ The LTE business of Nortel merits an overall rating of Some Risk.

ConclusionEricsson comes out on top in our

analysis of LTE network infrastructure vendors. Perhaps the most striking feature of our scorecard is the many vendors, including two from China, with overall ratings of Strong. Most of the vendors analyzed are technically skilled, so the key differentiator may rather be the perceived overall risk profile of a vendor, with the smaller ones, and those whose financial results may be a concern, being viewed by operators as riskier propositions when it comes to choosing a long-term partner for LTE.

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20 ZTE TECHNOLOGIESJanuary 2010

Terabytes(000) Dick'sprojection

LTE

3G

4,000

3,000

2,000

1,000

0

2010 2011 2012 2013 2014

Source: Verizon Wireless (recreated by SRG)

Research Note

By Caroline Chan, Geng Wu

One of the biggest challenges facing wireless operators today is the explosion of wireless

data growth, and how their network can cope with the demand under CAPEX and spectrum constraints. This paper describes the issues, solutions available today, and why an optimized heterogeneous network is pivotal for tomorrow’s wireless networks.

Exponential Wireless Data GrowthWireless service providers worldwide

are struggling under the strain of unprecedented traffic growth. This traffic growth is accelerated by the proliferation of advanced devices, services and applications. The challenges facing AT&T in the U.S. market are well documented as the operator has struggled to deal with a 5,000% growth in data over the last three years (AT&T report on LTE Americas, Sept. 2009).

The traffic demands for mobile broadband services vary across a wide variety of devices that can be categorized roughly in the following categories:■ Simple feature phones: They are

devices designed primarily for voice and text-based messaging services. They play a minor role in the mobile broadband market.

■ Smartphones: Devices such as the Apple iPhone and Google Android are equipped with larger screens, longer battery life, advanced OS, and a broad range of applications ― all features that encourage higher data consumption. Cisco Visual Networking Index report estimated the capacity consumption of an iPhone is estimated to be 30 times that of a simple phone.

■ Connected computing devices: Examples include dongle and PC card connected devices, embedded laptop devices, netbook, tablet PC and MID. Because of their large form factor and rich application environments, computing devices tend to consume larger service

bandwidth than mobile devices. According to research published by the Cisco Visual Networking Index report, a laptop can consume up to 450 times more bandwidth than a simple phone and 30 times more than a smartphone. As laptop and netbook adoption continue to rise, primary mobile broadband for all devices will further fuel the wireless data growth mega-trend.

Operators are well aware of these challenges. Dick Lynch, CTO of Verizon Corp, the largest wireless service provider in the US, recently projected the following at the LTE Americas Conference in Sept 2009 (see Figure 1).

Service Providers Options

Figure 1. Exponential wireless data growth.

4G Deployment

Pivotal Role of Heterogeneous Networks in

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21ZTE TECHNOLOGIES January 2010

( t h o u s a n d s o f u s e r s ) , m i c r o (hundreds of users), pico (tens of users), femto (<10)

■ Licensed and unlicensed spectrum■ Nodes owned and operated by

service providers, enterprises and consumers

■ Wired or wireless backhaul with guaranteed QoS or best effort QoS

■ A range of multimode devices inc luding handhelds , lap top , netbook, MID, tablets, connected consumer electronics and machine-to-machine nodes

This type of network poses a new set of challenges including:■ Cross tier interference: For example,

a dense femtocell deployment poses significant interference to macro cells. While interference to data can be addressed via intelligent use of Fractional Frequency Reuse (FFR), interference to control signals

Figure 3. Heterogeneous network architecture. Figure 4. Cost structure CAPEX+OPEX (new sites).

Figure 2. Wireless data traffic vs. network capacity in typical congested metro.

Traffic in 2015

Traffic today

Capacity today

Upgradebackhaul

Addspectrum/bandwidth

Upgradetech

Split cells Capacity in 2015

Backhaul transmissionSite buildout, installation+leaseRadio equipment, O&M, power

1,00

0,80

0,60

0,40

0,20

0,00Macro Micro Pico WLAN

Fem to-AP(Indoor coverage & offload macro-BS)

Fem to/WiFi-AP(Offload Macro-BS)

Client Relay

RelayCoverage Hole

Pico-BS(Areal capacity)

Wireless AccessWireless backhaul

Macro-BS

consist of different cell scales which range from macro to micro, pico and even femtocells, potentially sharing the same spectrum. Nodes can deploy different access technologies such as WiMAX and WiFi, over both licensed and unlicensed bands.

T h e b i g g e s t a d v a n t a g e o f a heterogeneous network is the significant gains in network capacity via aggressive spatial spectrum reuse and use of unlicensed bands. For example, co-channel femtocells can provide linear gains in air interface capacity with increasing number of femto-APs in a hybrid deployment. While the macro network provides coverage, small cells (pico and femto) are better suited for capacity infill and indoor coverage.

In addition, the small cells require no tower infrastructure or low lease cost, therefore drastically cutting the operational and capital expenditures (see Figure 4).

Heterogeneous Network ChallengesAs described in previous paragraph,

the heterogeneous network consists of a garden variety of nodes, each with potentially different RF and network characteristics:■ Coexistence of numerous access

technologies■ Different network scales: macro

4G Deployment

With traditional network design strategies, mobile service providers essentially have three primary capacity expansion tools, including:■ Increase macro cell site density:

Each cell spl i t would require regulatory approval, new sites and civil work.

■ Technology upgrade to OFDMA-based 4G technologies WiMAX and LTE: To achieve a 3 to 4x increase in capacity.

■ Expand radio spectrum resources: Acquiring new spectrum can beexpensive, limited by availability and subject to government regulatory timelines.

I n e a c h c a s e t h e b a c k h a u l transmission network may also need to be upgraded accordingly.

The traditional capacity expansion so lu t i ons r equ i r e h igh CAPEX inves tmen t , and In t e l r e s ea r ch (technology upgrade data from 3GPP, WiMAX Forum; backhaul and spectrum data from ABI, 10GEA) shows that they will not meet the network capacity demand forecasted through 2015 (see Figure 2).

To address these challenges, service providers are increasingly adopting a heterogeneous network architecture as depicted in Figure 3.

The heterogeneous network can

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2222 ZTE TECHNOLOGIESJanuary 2010

Research Note

transmit independent data streams to increase peak throughput.

(2) On the network side, provide connectivity and service continuity between different access protocols in the network.■ Dynamical ly swi tch be tween

WiFi and WiMAX to minimize interference and to optimize capacity and coverage.

■ Map applications to different access technologies based upon QoS requirements.

(3) On the client side, develop client co-operation where clients jointly transmit and/or receive information in wireless environments. For example, service providers may deploy clusters of stationary/nomadic WWAN clients with WiFi P2P connectivity. The idea is to exploit client clustering and P2P communication to transmit/receive information over mult iple paths between the base station and client. This creates the potential for improvement in throughput, capacity and reliability without increased infrastructure cost. This solution is particularly interesting for M2M communications.

(4) On the radio access network, deploy MIMO. ■ Network MIMO algorithms enabled

by central cloud processing ■ Cooperative MIMO and Distributed

Antennas ac ross t i e r s in the heterogeneous network

The proposals listed above are only intended to be a starting point for the development of future wireless broadband networks. Intel is also developing and evaluating other forward looking techniques such as interference alignment and innovative radio access network architectures. By sharing ideas,

Intel hopes to galvanize the ecosystem partners to join in the exploration of enhancing the performance and cost structure of next generation wireless networks to accommodate the co-existence of a variety of access standards, multimode devices and disparate spectrum.

ConclusionMobile voice service is already

considered a necessi ty by many consumers and is quickly moving to a commodity status in mature markets. Mobile data driven by consumer demand for rich mobile Internet data is now the primary driver for both consumer purchasing and network o p e r a t o r d e p l o y m e n t s . M o b i l e subscribers desire the same rich content available on their fixed broadband Internet connections ― including streaming video ― to be available on their mobile devices. Mobile M2M connections will also increase wireless data consumption. As wireless broadband continues to be rolled out worldwide, the demand for wireless data shows all signs of accelerating demand. Heterogeneous networks hold great promise to meet consumer demand, while providing optimum total cost of ownership for the network operators. However, these networks have many technical challenges at the air interface and network layers which the wireless community is working to address in standards forums. Heterogeneous networks will enable the cost effective deployment of high performance networks in order to bring wireless broadband to every corner of the globe.

(Caroline Chan, Director of Wireless Market Development, Wireless Program Office, Intel; Geng Wu, Director of Wireless Technology, Intel Labs)

requires new mechanisms.■ Mobility management: Handover

across small cells at moderate to high speeds hogs network resources, and can degrade user experience if not managed well. Heterogeneous networks must adopt an intelligent mechanism to manage inter or intra-tier handover. We expect multimode devices themselves to play a more significant role in mobility algorithm implementation.

■ Self-Organizing Networks (SONs) are essential for consumer deployed nodes like femtocells, and are important for managing inter-tier deployment.

■ Security management between nodes of different ownership (consumer, enterprise, operators).

■ Service continuity, QoS management and delivery across multiple tiers are essential for high performance and high capacity heterogeneous networks.

What Is NextThe Intel Labs has been doing

extensive research to tackle these challenges. The team recently submitted a contribution in the IEEE 802.16 Plenary that outlines a number of key areas the IEEE community should focus upon in the next generation of 802.16 technology development, including:

(1) Develop co-operative WiMAX and WiFi networks to create virtual WiMAX carriers by aggregating spectrum across licensed and unlicensed space.■ Create virtual WiMAX carriers

through WiFi, for example, via an integrated WiMAX/WiFi femtocell.

■ Use the additional spectrum to improve diversity, and code rates with incremental redundancy.

■ Use the additional spectrum to

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23ZTE TECHNOLOGIES January 2010

In recent years, as the ARPU value of voice services continues to decline, wireless broadband data

services have become the new growth magnet that network operators are looking for. According to Cisco’s 2009 analytical data, wireless broadband data services will show a hundredfold growth t rend and a t remendous potential during the next five years. It has been proved that large-screen terminals like downsized Laptops, UMPCs, IPhones, and Smart Phones that are emerging one after another, have lead to a sharp increase in the demand for wireless broadband data services. 3G networks have now been overwhelmed and wireless bearer networks with higher speeds are needed.

WiMAX emerges to meet this demand, serving as an edged tool for emerging operators to rapidly deploy new networks, seize market opportunities, and gain an upper hand in the competition; and also as an effective means for traditional large fixed-line operators to retain and expand existing user groups, improve ARPU value, and strengthen their leading positions.

Resilient WiMAX NetworkBy Liu Min, Xu Ruixue

Broaden Your Way with

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2424 ZTE TECHNOLOGIESJanuary 2010

Research Note

Different from the previous data value-added technology, WiMAX is designed from the ground up to provide broadband data services. Its very nature in network construction f o l l o w s t h e c h a r a c t e r i s t i c s o f broadband data services. Firstly, capacity is a KPI to assess network quality and its macrocell construction focuses on balancing network capacity with network coverage. WiMAX can stand out from the market competition only if it provides a DSL-like rate that is several t imes higher than HSPA. Secondly, major services (like Internet) and terminal modes (like laptops and PCs) have determined that the dominant service models for WiMAX are fixed and nomadic access, which allow a discontinuous and uneven traffic distribution. In-depth hotspot coverage has become the foremost issue to be considered when designing a WiMAX network. Based on these two characteristics of data network construction, ZTE put forward its innovative concept of building a resilient WiMAX network that has an

insight into the operators’ needs from the perspective of hybrid macrocell networking and layered micro/pico/femtocell networking.

Hybrid Networking Adaptive to Various Scenarios

From the above ana lys i s , we can see that one characteristic of wireless broadband data network is the uneven geographical distribution of traffic demand, namely 70% of traffic is concentrated in 30% of the geographical area, such as the CBD, residential areas, hotspots, e tc . Therefore , tha t 30% of the geographical area is a major source of profit for the operator. We call it the value area and the remaining 70% is the non-value area. Figure 1 shows the site distribution of an HSPA+ network in Hong Kong (yellow dots represent sites). It is very clear that 50% of its sites are deployed and distributed in the Golden Bowl area, covering less than 5% of the whole networking area, which can ensure adequate competitiveness by providing an

average flow of 6Mbps per user. Clearly, traffic features are different

in the value area and the non-value area. The value area enjoys a high intensity of users and a gathering of high-end users. What the operator has to resolve is Internet quality. Therefore, large capacity is the key to meeting the users’ needs in this area. However, as the non-value area is scarcely populated, it is more important for users to get access to the Internet than to enjoy high transmission rates. Therefore, ensuring wide network coverage is the core factor in this area. Considering different core needs in the value and non-value areas, it is necessary to adopt the hybrid networking to enable the optimum balance of coverage and capacity.

For densely populated or valued urban areas, we can use capacity density, the ratio of network capacity against coverage area, to accurately reflect end-user service experience. The simulation results show that with the same multi-antenna technology and signal path environment, MIMO 2T2R boas t s abou t 72% h igher capacity intensity than MIMO 4T4R, meaning that MIMO 2T2R can provide a higher average throughput per unit area while offering a higher download flow (34.3% higher) to edge users. Therefore, within the value area, the 2T2R networking can achieve the optimum balance of capacity and coverage to meet the key needs of users for high capacity.

For scarcely populated suburban and rural areas, or non-value areas, network construction aims at maximizing the coverage area, reducing the number of sites deployed and lowering the Total Cost of Ownership (TCO). Because of the gap in transmit power between Base Stations (BSs) and terminals,

Figure 1. Site distribution of an HSPA+ network in Hong Kong.

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25ZTE TECHNOLOGIES January 2010

generates less interference. Micro/pico/femto BSs have small, easy-to-design transmit power that can greatly reduce the interference to macro BS. Thirdly, it has low deployment. The cost of micro/pico/femto new BS sites is far lower than macro BS sites.

Indoor coverage has attracted more and more attention from operators because it is the most important hotspot coverage. According to the statistics of Japanese operator NTT DoCoMo, although the indoor coverage occupies only 20% of the entire coverage area, over 70% of data services, especially high-speed data services occur indoors. The quality of indoor coverage directly influences operators’ competitiveness. Because WiMAX uti l izes higher frequency bands, it has more blind spots in indoor coverage that can not be easily solved through outdoor macro BSs when compared to 2G and 3G networks. Considering that indoor vertical capacity intensity is several or even dozens of times higher than that of outdoors, and that the wireless environment is complicated, it is practical to deploy several pico BSs at every layer to fully absorb capacity. The three-dimensional in-depth coverage of buildings can be achieved through the co-frequency reuse among different layers.

ConclusionZ T E h a s b e e n c o m m i t t e d t o

developing a full range of custom-made WiMAX product series including 2T2R macro, 2T4R macro, 4T8R macro, micro, indoor and outdoor pico BSs, and delivering end-to-end WiMAX solutions. Using the hybrid and layered networking, i t helps operators build WiMAX resilient networks that can effectively improve their ROI.

against the uneven distribution of data services. Layered architecture is the optimal solution for this problem.

Layered network architecture is similar to the “heterogeneous network” advocated in the industry. Its main idea is that network capacity, especially large capacity in hotspot areas, can not be solely carried by macrocells, but be unloaded gradually at different layers through the layered stack of micro/pico/femtocells. As shown in Figure 2, micro/pico/femtocells are layered and complement one another to build a resilient network capable of flexible capacity expansion.

The layered network architecture has advantages over t radi t ional macrocell capacity unloading. Firstly, it is flexible. As wireless data network services are unevenly distributed, the network capacity can by no means be increased evenly across the whole network. Instead, hotspot areas would become the first to have insufficient carrying capacity; micro/pico/femto BSs could be deployed on demand to make full use of every space. The BS size (micro/pico/femto) is flexibly chosen according to the traffic intensity and coverage. Secondly, it

Macro

Micro

Pico

Femto

Figure 2. WiMAX layered architecture.

the bottleneck that restricts network coverage lies in the uplink. It has been proved that the best way to improve uplink coverage and achieve a balance between the uplink and downlink coverage is to adopt asymmetric 2T4R (4Rx against 2Tx provides 4.5dB antenna gain and 40% reduction of sites) or 4T8R (8Rx against 4Tx means 2–3dB antenna gain and 30% reduction of s i tes) . In addi t ion, high-gain terminals and ultra-far area coverage solutions are also used to effectively enhance network coverage.

The hybrid networking can not only ensure large capacity for microcells in the value area, which helps to improve user experience, but also achieve wide coverage for macrocells in the non-value area, which helps to reduce TCO. Therefore, it is the preferred solution for operators to optimize the whole network planning and increase their Return On Investment (ROI).

Layered Architecture for Smooth Capacity Unloading

Though the hybrid networking balances macrocell capacity and coverage, another problem emerges ― how to extend the hotspots coverage

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2626 ZTE TECHNOLOGIESJanuary 2010

Solution

By Dai Ronghui

Wireless communications belong to capital intensive industry due to the massive

cost inputs needed to support the whole network lifecycle. Mobile operators’ initial Capital Expenditures (CAPEX) for wireless network construction only occupy a small fraction of their Total Cost of Ownership (TCO), while the cost inputs on operation and maintenance after the network is put into operation occupy most of their TCO.

Due t o t he i nc r ea s ing f i e r ce competition in the wireless market, the operators’ major concerns are how to optimize their cost structure and quickly expand their user base. Based on its insight into the needs of CDMA operators, ZTE has rolled out its intelligent CDMA network solution that offers intelligent capability throughout the whole network lifecycle including ne twork p lann ing , dep loyment , operat ion and maintenance, and optimization. The solution helps CDMA operators reduce their CAPEX, optimize their cost structure and enhance their market competitiveness.

Intelligent Network PlanningNetwork planning and simulation

is the fundamental work for wireless network construction. ZTE provides intelligent network planning tool (ZXPOS CNP1) that can help operators implement network planning quickly and accurately, conduct network

simulation precisely and scheme out the best network configuration based on full consideration of all the constraints in network capacity, coverage, environmental factors, and investment budget. ZXPOS CNP1 has the following attractions.Auto network-topology design:Itcanimprove the efficiency and quality of initial network planning while taking into consideration all the constraints in network capacity, coverage, investment cost, and site utilization.Intelligent carrier planning, PN planning and neighbor cell planning: It can automatically calculate out the related system parameters based on the network topology, so as to maximally improve the efficiency of network deployment, expansion and optimization.

Auto module tuning: It can conduct module tuning in an automatic and batch manner based on the drive test data, so as to achieve low-cost network planning.Adaptive propagation model: Itcanimplement increasing-precise iterative network planning in an efficient and intelligent manner.

Intelligent Network DeploymentEngineering progress is qui te

important in deploying a CDMA network. In order to speed up the engineering progress while guaranteeing the network quality and reducing personal error, ZTE has developed a series of intelligent tools for network deployment that can ensure the network is well commissioned on schedule (see Figure 1).

Figure 1. Intelligent network deployment.

Boosting Operators’ CompetitivenessIntelligent CDMA Network Solution

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27ZTE TECHNOLOGIES January 2010

tools. To meet these requirements, ZTE has developed its intelligent network optimization system.ZXPOS software tool suite (CNT/CAN): It can implement data mining based on large amount of statistical data; make an intelligent analysis of network problems and give suggestions for improvement; provide enterprise-level in tegra ted repor t ; suppor t conventional network KPI optimization; focus on user experience enhancement; and support automatic neighbor cell optimization and auto PN optimization for different scenarios such as network expansion and swapping. Call Detail Trace (CDT): CDT traces the key data of each call made by each user in the current access system, including the wireless environment for user access and the key data handled by the internal system in the access process.Innovative T-phone driver test tool: Due to the complicated operation, high cost and small coverage of the traditional driver test tool, ZTE has developed handheld T-phone drive test tool. With a single intelligent T-Phone, network optimization engineers can collect all kinds of wireless data and use CNT/ANA to analyze them. The professional drive test can be performed at anytime and anywhere.

ConclusionIntelligent network is an important

trend for wireless network evolution. Improving efficiency and saving energy have become the focus of all operators. Based on its insight into the needs of clients, ZTE put forward a whole package solution for intelligent CDMA operations, helping operators reduce their energy consumption, lower their operation costs, and boost their market competitiveness.

efficiently and reduce network OPEX.■ Intelligent carrier adjustment:

Adjust the number of carriers output by BTS based on the cell traffic change, and close the carriers that are not in operation to reduce power overhead. For example, the power consumption for the 2-carrier 3-sector configuration can be reduced by 15%.

■ I n t e l l i g e n t p o w e r a m p l i f i e r shutdown: Shut down the power amplifier when the Abis link of BTS breaks, which can transfer the terminal to the operating BTS and avoid unnecessary power consumption. This technique is widely applied in China, India, Southeast Asia and Africa.

■ Intelligent temperature control: Reduce the operating t ime of air conditioner to achieve the subs tan t ive sav ing of power and BTS environment control. Averagely, in more than 80% time of a year, the natural ventilation technique can be used to replace the air conditioner, which brings up to 70% energy savings.

■ I n t e l l i g e n t p o w e r s u p p l y management: Turn on and off the rectifier module automatically based on the output current and the number of operating rectifier modules, and make the power supply system work with a high efficiency of 50–85%. This technique improves power efficiency and brings energy savings.

Intelligent Network OptimizationWith the increase of subscribers and

the commercialization of 3G networks, higher requirements are raised for network optimization. There are urgent demands for interoperable, automatic, intelligent and visualized optimization

Auto conversion of planning data: The Office Dependent Database (ODD) tool enables parallel processing. The network planning department starts to prepare planning data while the engineering department is conducting site debugging and installation; as soon as the engineering department finishes its job, the network planning department can write the data into the ODD and input them into the OMC. The ODD tool helps to improve work efficiency by 20 times and it can also avoid errors possibly arising from manual input.Auto data integrity check: The OMC checks the integrity of imported configuration data based on certain rules and eliminates configuration errors at the earliest time possible.Auto configuration of IP l ink: Because the Abis l ink suppor ts DHCP, the IP address of BTS can be acquired automatically instead of being configured manually at the BTS site, which greatly improves efficiency of site deployment.

Intelligent Network Operation and Maintenance

In order to help the operators better operate and manage their networks, ZTE’s intelligent multi-mode CDMA network solution offers the following functions.Intelligent fault isolation and self-recovery: The faults occurred in the network elements, links and modules can be isolated and self-recovered automatically, which enables the network to operate smoothly with little manual intervention.Intelligent upgrade: The automatic one-key upgrade can improve upgrade efficiency and reduce the risks.Inte l l igent energy-sav ing and emission-reduction: It can save energy

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28 ZTE TECHNOLOGIESJanuary 2010

News Brief

ZTE Partners with SingTel to Run LTE Trials

1 December 2009, Shenzhen, China ― ZTE announced that it will collaborate with SingTel to carry out LTE trials in the Philippines market. The two companies also agree to work on long-term planning for LTE network infrastructure as well as strategic management of the network. LTE is forecasted to become the dominant 4G technology for CDMA and GSM/UMTS carriers.

The trial is scheduled to run for six to nine months starting early 2010 in order to meet the strong local market needs for broadband and high-speed network access.

ZTE has been in partnerships with

different operators worldwide including Telstra’s CSL, Telefonica, SingTel and China Mobile, securing a total of 10 LTE contract wins and/or trials to date. By leveraging its expertise in complex network construction and world-class product quality, the LTE trials ZTE has been running with different global operators has helped the company successfully penetrate into various high-end overseas markets including Spain, North America and Hong Kong, making it one of the key equipment providers helping to propel 4G LTE network development.

Company has secured 10 LTE contract wins and/or trials to date

“Innovation, Green, Commitment”ZTE Celebrates Its 10th Anniversary in Indonesia

11 December 2009, Jakarta ― ZTE Indonesia announced its 10th Anniversary of operations in Indonesia. During this period, ZTE Indonesia has supported Indonesia with implementation capabilities (for mobile and fixed networks), service solutions, applications, sustainable R&D capability and services for customers. Besides offering a unique and innovative product portfolio, ZTE has also forged strategic partnership with local entities including telecommunication providers, government , pr ivate sectors , and education institutions to shape the IT and telecommunication landscape in Indonesia as well as contributing to its Indonesian stakeholder communities through social responsibility initiatives.

During its 10 years of operations, ZTE has set up six regional offices in Indonesia including in Jakarta, Surabaya, Central Java, Bandung, Kalimantan, Sulawesi and Sumatra. Its head office in Jakarta is also the office of ZTE’s Asia Pacific regional division platform.

Company helps to drive the development of LTE TDD IODT between industry and chip manufacturers

10 December 2009, Shenzhen, China ― ZTE announced that it has successfully demonstrated i ts TD-LTE network technology and achieved a downlink speed of 130Mbps, the highest level in the industry. ZTE is the first company to reach the theoretical limit of TD-LTE throughput in downlink. Utilizing third-part terminal testing tools, ZTE conducted the tests using its system products including EPC, eNodeB, etc in Guangzhou in November.

ZTE has created a simple and smooth transition path for operators to move to LTE through its mature and stable SDR

base stations. Networks can be upgraded from TD-SCDMA to TD-LTE or to TD-S/TD-LTE dual-mode through a simple software upgrade, saving operators time and money. At the present time, there are more than 200,000 sets of ZTE SDR products running throughout the world, including in China mainland, Hong Kong, India, Chile and other countries. In May 2010, ZTE and China Mobile will jointly deploy a TD-LTE network at the Expo News Center for the World Expo Shanghai 2010.

ZTE Achieves Industry-High TD-LTE Network Downlink Speed of 130Mbps

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29ZTE TECHNOLOGIES January 2010

E-Plus Group and KPN Group Belgium to Significantly Expand 3G Networks in Cooperation with ZTE

ZTE Introduces GC990 to Continue Its Success in the Mobile Market

1 1 D e c e m b e r2009, Jakarta ― ZTE launches i ts la tes tQWERTY and dual-mode dual-on handset; ZTE GC990 will give more options to the market. ZTE continues i t s succe s s i n t he

mobile market by launching a device that has high specifications with affordable price.

The new handset is designed with the latest technologies and features that enable users to enjoy and experience mobile Internet access and latest mobile applications. With its slim appearance, it will represent a fashionable yet functional handset since it is equipped with QWERTY keyboard with both GSM and CDMA frequency. The dual-mode function will get everything easier and more efficient. This product is targeting the youngsters since it has trendy, fast and user friendly features.

23 December 2009, Belgium ―The E-Plus Group and KPN Group Belgium have selected ZTE to supply HSPA-enabled 3G equipment for further expansion and technical upgrade of their mobile networks. ZTE will support both operators in all aspects of their customer-oriented voice and data network expansion strategy, focusing investment in the right technology at the right time.

In cooperation with ZTE, E-Plus Group and KPN Group Belgium plan to further expand their 3G networks over the next years. With ZTE’s future-proof technologies the operators will offer mobile data services at speeds up to 21.6 Mbps and ensure a faster roll-out of mobile broadband coverage at significantly lower costs. Furthermore ZTE’s technology affords an easy and fast integration of future data acceleration standards in the new network infrastructure in Germany and Belgium.

ZTE Partners with China Mobile to Complete Industry-First Commercial IMS-Based HD Video Conference System

ZTE Collaborates with China Telecom to Build IMS Network Solution

30 November 2009, Shenzhen, China ― ZTE announced it has partnered with China Telecom to build the operator’s IP Multimedia Subsystem (IMS) in five costal provinces of China among seven key locations, as part of its 3G network infrastructure plan. Under the construction plan, ZTE will provide end-to-end IMS solution for China Telecom to deliver a full-range of services that will meet local market needs.

As one of the key partners of China Telecom in building its core network, ZTE has been selected to provide various critical solutions ranging from PSTN to Softswitch and IMS. On April 10, 2009, ZTE successfully conducted the first IMS-based mobile video telephony call on its CDMA EV-DO network, making it first call of its kind in China.

27 November 2009, Shenzhen, China ― ZTE announced that it has completed the industry’s first commercial IP Multimedia Subsystem (IMS)-based high definition (HD) video conference system for China Mobile. This industry breakthrough announcement was made at the 2009 IMS Forum in Beijing, China.

The IMS-based commercial HD video conference system has been integrated in China Mobile’s IMS office network to help reduce China Mobile’s CAPEX and OPEX through unified network operations and easy maintenance.

The system enables China Mobile to enjoy converged multimedia conference functions via various terminals, including fixed line telephones, TD-SCDMA handsets, and desktop soft-clients.

3G infrastructure provides full-range of services to meet local market needs

Comprehensive features meet market needs and help operator reduce CAPEX and OPEX

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30 ZTE TECHNOLOGIESJanuary 2010