EMOBILE: the mobile broadband revolutionist - Huawei

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Winners After the transformation, MegaFon could easily meet the user capacity expansion requirements for the solution’s large capacity of up to 3.2 million users in a single MSS. MegaFon was quickly expanding throughout the Russian Federation but their MGC-based network could not keep up. As the expenses mounted, with the looming award of 3G licenses, they decided that they needed to transform their network to All-IP. After partnering with Huawei, MegaFon implemented an All-IP converged 2G/3G core network that reduces their costs and positions them to continue growing. Covering the Russian Federation MegaFon was the first all-Russian GSM mobile operator. It was founded in 2002 through the combination of a number of regional operators and provides end users with comprehensive mobile communications services across the Russian Federation. After telecom reform in 1992, Russia and the CIS telecom industry grew rapidly, especially the mobile market. By the end of Q3 2008, MegaFon has more than 41 million subscribers and its consolidated revenue grew 24.9% for the nine months past. MegaFon is committed to its goal to become the revenue leader in Russian mobile communications. Out of capacity with surging subscriptions Two factors were influencing the direction of MegaFon’s planning. The first was dramatic growth in users. The second was caused by the fact that Russia planned to release 3G licenses for operators to deploy high speed mobile data service at the end of 2007. As a result of surging subscriptions, MegaFon’s existing core network was rapidly reaching its limit. Because the network was composed of oldstyle MSCs, which have a low individual capacity, the only way to increase capacity was to add more MSCs, but this would dramatically increase the network interconnections, raising costs. The existing network was also not well suited to handling mobile broadband connections, even for the relatively slow-speed EDGE connections. Based on the deep understanding of IP network, MegaFon had rolled out a 3-step All- IP transformation strategy, covering fiber to BTS/ Node B, IP-based core network, and IP RAN. One of the goals for MegaFon was to have a core network that could not only handle the growth of subscribers and low-speed data, but also be able to easily expand to support 3G in a way that optimized their investment. This new core network should simplify maintenance and reduce operational costs as well. Converged 2G/3G All-IP softswitches solve the problem MagaFon realized that the utilization of existing 43 Win-Win / FEB 2009
network resources must be maximized to host a 2G and 3G integrated network. Only in this way could MagaFon safeguard investment, lower TCO, and facilitate smooth future evolution to All-IP FMC networks. By partnering with Huawei, MegaFon implemented an All-IP converged 2G/3G core network that reduces their costs and positions them to continue growing. The successful deployment of a Huawei IP mobile softswitch (MSS) solution that replaced the traditional exchange network solved the problems MegaFon was encountering. After the transformation, MegaFon could easily meet the user capacity expansion requirements because of the solution’s large capacity of up to 3.2 million users in a single MSS. With 2G/3G dual access support, MegaFon can share the 2G core network resources with upcoming 3G users which will substantially save CAPEX for future 3G network construction. In addition, the IP MSS solution also supported increasing the capacity of the existing bearer network. Increased capacity, but reduced costs Even though the network capacity was greatly increased, the reduction in managed control points reduced routine operational expenses. The use of VoIP on the bearer network, with Huawei enhancements to IP capacity and quality, cut transmission cost by 25%, power consumption by 60% and footprint by 74%. Huawei’s specialized network design, high-quality products, timely delivery, and professional services helped MegaFon Ural capture emerging market opportunities, building a strong competitive position. According to Mr. Roman, a network manager of MegaFon Ural, “Huawei mobile softswitches with high capacity have simplified the network and they are quite stable, especially on overload condition.” Keeping a leading position When faced with a severe capacity problem and the future opportunities related to mobile broadband, MegaFon chose to make a major change to their network to embark on an IP transformation. To meet its strategic goals, MegaFon has been unrelentingly stringent in its choice of partner. TDM-to-IP transformation involves lengthy research, end-to-end solutions, and rapid network deployment. Not only does suppliers have to demonstrate relevant technological expertise, but their brand equity, service response, and delivery capacity are also under scrutiny. Since 2005, Huawei has been MegaFon’s major partner, and the two have cooperated in a wide range of fields spanning mobile BTSs, softswitch, wavelength division transmission, IP bearer, and service. As a young, ambitious company, MegaFon remains committed to maintain its leading All-IP position through customization, innovation and evolution. FEB 2009 / Win-Win 44
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