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EMOBILE: the mobile broadband revolutionist - Huawei

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Winners<br />

After <strong>the</strong> transformation, MegaFon could easily meet <strong>the</strong><br />

user capacity expansion requirements for <strong>the</strong> solution’s<br />

large capacity of up to 3.2 million users in a single MSS.<br />

MegaFon was quickly expanding<br />

throughout <strong>the</strong> Russian Federation<br />

but <strong>the</strong>ir MGC-based network<br />

could not keep up. As <strong>the</strong> expenses<br />

mounted, with <strong>the</strong> looming award of 3G licenses,<br />

<strong>the</strong>y decided that <strong>the</strong>y needed to transform <strong>the</strong>ir<br />

network to All-IP. After partnering with <strong>Huawei</strong>,<br />

MegaFon implemented an All-IP converged<br />

2G/3G core network that reduces <strong>the</strong>ir costs and<br />

positions <strong>the</strong>m to continue growing.<br />

Covering <strong>the</strong> Russian<br />

Federation<br />

MegaFon was <strong>the</strong> first all-Russian GSM <strong>mobile</strong><br />

operator. It was founded in 2002 through <strong>the</strong><br />

combination of a number of regional operators<br />

and provides end users with comprehensive<br />

<strong>mobile</strong> communications services across <strong>the</strong><br />

Russian Federation. After telecom reform in<br />

1992, Russia and <strong>the</strong> CIS telecom industry grew<br />

rapidly, especially <strong>the</strong> <strong>mobile</strong> market. By <strong>the</strong> end<br />

of Q3 2008, MegaFon has more than 41 million<br />

subscribers and its consolidated revenue grew<br />

24.9% for <strong>the</strong> nine months past. MegaFon is<br />

committed to its goal to become <strong>the</strong> revenue leader<br />

in Russian <strong>mobile</strong> communications.<br />

Out of capacity with surging<br />

subscriptions<br />

Two factors were influencing <strong>the</strong> direction of<br />

MegaFon’s planning. The first was dramatic growth in<br />

users. The second was caused by <strong>the</strong> fact that Russia<br />

planned to release 3G licenses for operators to deploy<br />

high speed <strong>mobile</strong> data service at <strong>the</strong> end of 2007.<br />

As a result of surging subscriptions, MegaFon’s<br />

existing core network was rapidly reaching its<br />

limit. Because <strong>the</strong> network was composed of oldstyle<br />

MSCs, which have a low individual capacity,<br />

<strong>the</strong> only way to increase capacity was to add<br />

more MSCs, but this would dramatically increase<br />

<strong>the</strong> network interconnections, raising costs.<br />

The existing network was also not well suited to<br />

handling <strong>mobile</strong> <strong>broadband</strong> connections, even for<br />

<strong>the</strong> relatively slow-speed EDGE connections.<br />

Based on <strong>the</strong> deep understanding of IP<br />

network, MegaFon had rolled out a 3-step All-<br />

IP transformation strategy, covering fiber to BTS/<br />

Node B, IP-based core network, and IP RAN.<br />

One of <strong>the</strong> goals for MegaFon was to have a core<br />

network that could not only handle <strong>the</strong> growth<br />

of subscribers and low-speed data, but also be<br />

able to easily expand to support 3G in a way<br />

that optimized <strong>the</strong>ir investment. This new core<br />

network should simplify maintenance and reduce<br />

operational costs as well.<br />

Converged 2G/3G All-IP<br />

softswitches solve <strong>the</strong> problem<br />

MagaFon realized that <strong>the</strong> utilization of existing<br />

43<br />

Win-Win / FEB 2009

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