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Vol. 13 No. 5 Issue 136 

Oct

VIP Voice 

3 

Ucell: The Way to Success 

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

2008, Ucell was rebranded and adopted a new slogan: “closer to 

the people.” Since then, it has rapidly increased its market share 

to become the second largest mobile operator in Uzbekistan. We 

interviewed Oguz Memiguven, CEO of Ucell. He shared with us 

the secrets of Ucell’s rapid growth, and also his thoughts on what 

makes for successful cooperation. 

Tech Forum 

3 

6 

6 

Desktop Cloud Application for Government and Enterprise 

The core idea of a desktop cloud is to transfer the host, OS, 

applications, and all data from personal terminals to a data center. 

This makes it easy for desktop users to select an OS, office software, 

R&D software, and other applications—just like using a remote control. 

Solutions 

8 

8 

11 

Uni-RAN: A Perfect Way to Modernize Mobile Networks 

Uni-RAN adopts a unified SDR platform that supports multiband and 

multimode radio configurations. By updating software and minimizing 

changes to hardware, Uni-RAN allows for smooth evolution from GSM/ 

EDGE to WCDMA and then to LTE. 

Building New-Generation GSM Networks with C-RAN 

14 

Creating Value with Efficient Spare Parts Management 

11

Success Stories 

16 

H3G Austria: A Musical Movement Towards Mobile 

Broadband 

H3G is the first operator in Austria to build a nationwide 

LTE/DC-HSPA+ network that will cover 94% of the 

country’s population with HSPA+ services and provide LTE 

services in major cities. 

Editorial Board 

Editor-in-Chief: Jiang Hua 

Deputy Editor-in-Chief: Huang Xinming 

Editorial Director: Liu Yang 

Executive Editor: Yue Lihua 

Editor: Paul Sleswick 

Circulation Manager: Wang Pingping 

19 

Reliance Communications: Built to Succeed 

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Tel: +86-551-5533356 

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Email: wang.pingping@zte.com.cn 

Website: wwwen.zte.com.cn/endata/magazine 

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22 

24 

24 

Cell C Striving Towards Leadership 

E-Plus Group Focuses on Future Technologies 

Made by ZTE 

News Brief 

27 

28 

E-Plus and ZTE Strengthen Partnership 

ZTE and Reggefiber Sign Power Supply 

Equipment Contract 

Editorial Office 

Address: NO. 55, Hi-tech Road South, 

ShenZhen, P.R.China 

Postcode: 518057 

Tel: +86-755-26775211 

Fax: +86-755-26775217 

Email: yue.lihua@zte.com.cn 

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. 

2 ZTE TECHNOLOGIES

VIP Voice 

Ucell: The Way to Success 

Reporter: Liu Yang 

Oguz Memiguven, CEO of Ucell 

Ucell is part of the Swedish- Memiguven, CEO of Ucell, on 

Finnish operator, TeliaSonera. September 4th, 2011. He shared with us 

In 2008, Ucell was rebranded the secrets of Ucell’s rapid growth. He 

and adopted a new slogan: “closer to also shared his thoughts on what makes 

the people.” Since then, it has rapidly for successful cooperation. 

increased its market share to become 

the second largest mobile operator Journalist: First, could you introduce 

in Uzbekistan. We interviewed Oguz your company, including its business 

and main focus area 

Oguz Memiguven: Ucell is part of 

TeliaSonera Eurasia. TeliaSonera is one 

of the biggest operators in Europe. It 

has operations in 7 countries in Eurasia 

and also has operations in Russia 

and Turkey. In Azerbaijan, we have 

Azercell, in Kazakhstan, we have Kcell, 

in Tajikistan, we have Tcell, in Georgia, 

we have Geocell, in Moldova, we have 

Moldcell, in Nepal, we have Ncell, 

and in Uzbekistan, we have Ucell. So 

these are the Eurasian operations of 

TeliaSonera. Ucell was established 

in 2007 and was rebranded with its 

current name in June, 2008. In June 

of this year, we refreshed the brand so 

that all TeliaSonera Eurasia companies 

now have the same visual identity. We 

also finished our new headquarters in 

the city center of Tashkent, the capital 

of Uzbekistan. At the opening of this 

prestigious and modern building, we 

introduced our new brand identity. 

Ucell started operations in 2008. 

When we took over the company, it had 

just over half a million subscribers and 

a 9 percent market share. Now it has 

8.5 million subscribers and a 34 percent 

market share. We are far ahead in data 

and 3G in the country and are perceived 

as a technology leader. In Uzbekistan, 

we are the second largest operator in 

terms of revenue and market share. But 

we are the first operator in the hearts and 

minds of the people. 

October 2011 

ZTE TECHNOLOGIES 

3

VIP Voice 

Our priority is to further expand 

our 3G and 4G network, focus on 

new 3G technologies, such as dual 

carriers, and establish long-term 

sustainable leadership, especially in 

data communications, 3G, and 4G. We 

also have a 4G trial network that has 

achieved quite good results, and we will 

extend our 2G as well. 

We have almost 900 workers in the 

company. We also have thirty offices 

and 2000 dealers all around the country. 

So we have an extensive distribution 

network. 

Uzbekistan has a population of 29 

million population, it has rich resources, 

and it has great potential. We are a very 

happy to operate there, and I think we 

will continue to invest in the future of 

Uzbekistan. 

Journalist: Ucell has a 

fast-growing subscriber 

base, around 34 

percent market share. 

At present, Ucell is the 

second largest mobile 

operator in Uzbekistan. 

Could you tell us the 

secret of your success 

Oguz Memiguven: 

We are a very 

interesting company. 

In the beginning, our 

slogan was “ожидать 

большего,” which 

in Russian means 

“expect more.” We 

have always tried 

hard to provide 

very attractive 

and economical tariffs for people. So 

we are a kind of a market maker, and 

everyone follows us. We have a very 

rich value-added services portfolio. 

We always present good, enjoyable 

and useful services to the people, 

including the youth. When we establish 

reasonable coverage, we also attract a 

lot of premium and corporate customers 

as well. Our success is due to the fact 

that we are affordable, we have a lot 

of variety in our services, and we 

have a very strong presence in data 

communications, the Internet market. 

That’s the reason why we are successful. 

Apart from this, we have a very 

young, ambitious, energetic, and agile 

management team. We are very quick, 

and our competitors have difficulty 

keeping up with us. There is no need to 

be humble on this issue. We are a very 

fast and agile company. 

Journalist: How are Ucell’s mobile users 

distributed What is the proportion of 2G to 

3G users And what are their mobile phone 

usage habits 

Oguz Memiguven: Uzbekistan is no 

different from the rest of the world. 

People want to reach the Internet. You 

have to simplify life for people so 

they can easily access the Internet. We 

provide a local phone to the market with 

the most visited Internet sites already 

presented as an icon. People want to 

go to social networks, for example, 

Facebook, Vkontakte, and other social 

networking sites in Russian. So when 

we sell a phone, these sites are there 

already. Then people touch the phone, 

and they are part of it. We make our 

strategy based on the most visited 

social networking sites. We provide 

them so easily, so quickly, and with 

uncomplicated pricing—simple flat 

pricing to reach those pages. This was 

warmly welcomed by the people, and 

caused a tremendous increase in data 

traffic, almost tenfold. 

Journalist: In December 2007, Ucell and 

ZTE signed a phase-I contract to construct 

a wireless network in Uzbekistan. In the 

following years, Ucell again selected 

ZTE several times to expand its network 

to the sixth phase. Why did you select 

ZTE as your partner How do you 

evaluate ZTE’s equipment and project 

team 

Oguz Memiguven: ZTE is a world- 

4 ZTE TECHNOLOGIES October 2011

class company. The products, services, 

and product roadmaps are quite 

impressive. Honestly, this is common to 

world-class suppliers. But what makes 

ZTE favorable to us is mainly the team. 

They are very attentive, they are very 

friendly, and they listen, which is very 

valuable to us. When we have problems, 

they take it so seriously. They want to 

help, and I value it very much. Also, 

ZTE always has a competitive price 

strategy. That’s also something I very 

much appreciate. But believe me, the 

most important thing is ZTE’s attitude. 

If ZTE does not lose such ambition and 

attitude towards its customers, it will 

bring them much fortune. The way they 

listen and try to help us I appreciate 

very much. I told them when they 

were building the first phase, “If you 

do it successfully, I’ll recommend you 

to other good companies.” And I did. 

They are now working 

with some other good 

companies right now. 

the other weeks. There were times 

when the results were not exceptional, 

but the week after, they closed the gap. 

Many times they did it. I was told they 

couldn’t make it, but they did, and I 

was surprised. I was surprised with their 

commitment, dedication, and energy. 

It’s not only me who feels this 

way about ZTE. Actually, within 

our organization, the marketing and 

technical people always talk about ZTE 

with respect. I have my own views 

about your company, but I listened to 

my people as well. When I listen to 

them, they always talk about ZTE with 

respect, and I am influenced by that 

as well. I am not the only one in the 

company that thinks like this. 

Journalist: In August 2010, ZTE helped 

Ucell deploy the LTE network. What is 

the significance for deploying LTE in 

Uzbekistan What do you expect it to be 

in the future 

Oguz Memiguven: We are at the very 

beginning with LTE, but LTE will 

change everything. You can watch the 

live TV with LTE. But we still have a 

long way to go with 3G. We want to 

start and see. With LTE, we become a 

kind of ADSL operator. We can give 

people high speed. When we consider 

wireless technologies, we can easily 

satisfy the needs of individual users for 

data connection. When it comes to big 

corporations, our current technology 

is not fast enough to give full-scale 

service. But with LTE, a big market is 

opening for us, and it can replace all 

this fixed infrastructure as well. I think 

there is a great future for operators and 

vendors. Ucell’s target is very clear—we 

want to be the leader in all aspects of 

mobile technologies in the country. 

Journalist: What has 

impressed you during 

the cooperation between 

Ucell and ZTE 

Oguz Memiguven: 

There are many things. 

In the beginning, I 

followed the progress 

very closely. Building a 

network from scratch is 

not easy, I know. But I 

really pushed them and 

gave them a heart attack. 

Every week I asked about 

the targets and I followed 

October 2011 


5

Tech Forum 

Desktop Cloud Application 

for Government and Enterprise 

By Liu Burong 

The core idea of a desktop cloud 

is to transfer the host, OS, 

applications, and all data from 

personal terminals to a data center. 

This makes it easy for desktop users 

to select an OS, office software, R&D 

software, and other applications—just 

like using a remote control. Desktop 

cloud is a brand-new concept that helps 

government and enterprises control their 

core internal information, reduce power, 

reduce TCO, and improve terminal 

management and maintenance. 

ZTE’s Desktop Cloud Solution 

System architecture 

ZTE has developed an end-to-end 

desktop cloud solution. Data processing 

and storage is concentrated at the data 

center, and terminals are turned into 

simpler cloud terminals. The data center 

assigns a virtual host to each terminal 

from a resource sharing pool. This 

enables the OS and application software 

to run in the data center while input and 

output operations are performed by the 

terminals. All user input into a terminal, 

such as mouse and keyboard operations, 

are synchronized with the server; and 

all output, such as screen refreshes, are 

synchronized with the terminal. 

Cloud terminals can be thin clients, 

traditional PCs, smart mobile phones, 

or tablets. Virtual desktop session 

management involves scheduling the 

virtual desktop system and verifying 

user identity. Virtual resource scheduling 

involves dynamic scheduling and unified 

management of computing resource 

6 ZTE TECHNOLOGIES October 2011

Terminal 

Access 

Layer 

Virtual 

Desktop 

Layer 

Virtual 

Resource 

Layer 

Physical 

Resource 

Layer 

Virtual Computing 

Resource 

Computing 

Device 

Virtual Storage 

Resource 

Storage 

Device 

Figure 1. Architecture of ZTE’s desktop cloud. 

pool, storage resource pool, and network 

resource pool. Cloud infrastructure 

provides servers, storage, networks, and 

security devices. 

Features 

ZTE’s end-to-end desktop cloud 

solution has the following features: 

Separation of data and terminals 

sothat sensitive information is 

secure: Terminals are separated from 

sensitive information. Desktops 

and data are centrally stored and 

processed in the background. Only 

screen refreshes are transmitted, 

without any data loss or breaches of 

confidence. Remote access is also 

authorized. 

Energy efficiency to reduce TCO: 

Thin terminals are quiet and 

consume less power. They are a 

solution to the problems of noise 

and high temperature in confined 

office environments and also reduce 

electricity costs. Thin clients and 

desktop operating systems do not 

need to be maintained. This simplifies 

O&M and reduces OPEX. 

Flexible access to mobile office: 

Data and desktops are stored and 

operated at the data center so that 

users can access mobile office 

anywhere and at any time. Users can 

Network 

Device 

Virtual Network 

Resource 

Security 

Device 

Cloud Terminals 

(Hardware) 

Virtual Desktop 

Session Management 

(Cloud Software) 

Virtual Resource 

Scheduling 

(Cloud Software) 

Cloud Infrastructure 

(Hardware) 

gain flexible remote access using 

their terminals without interrupting 

running applications. 

Unified O&M to enable resource 

sharing: Managing thousands of thin 

terminals is easy with the unified 

management platform. The data 

center uses virtualization technology 

to integrate all computing, storage, 

and network resources into a shared 

resource pool for simple and unified 

management, maintenance and 

technical support. This reduces 

management, purchasing, electricity 

and air conditioning costs. 

Application Models 

ZTE’s desktop cloud can be applied 

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

in government, large and medium 

enterprises, finance, education, and 

medical care. Application models can 

be designed for R&D departments 

and other offices that require high 

information security, public service halls 

and counters, integrated call centers, and 

mobile offices. 

ZTE’s desktop cloud is widely used 

in government and enterprise. 60% of 

the employees of a particular design 

institute are designers. These employees 

use AutoCAD for graphic design and 

have specialized workstations. 40% are 

office workers who use regular PCs. 

Graphic designs are stored in personal 

terminals, so there is a hidden risk of 

information being disclosed without 

authorization. A graphic workstation 

is also very expensive to purchase and 

operate. 

ZTE’s desktop cloud solution can 

address these problems. Graphic 

workstations are centrally located in 

a data center, and thin clients are used 

as PC terminals. The server provides 

workstations for the graphic designers 

and virtual hosts for the office workers. 

Core design information is kept in 

the data center and expensive graphic 

workstations are shared by users. 

Desktops for graphic workstations and 

office computers are also managed in a 

unified manner. This improves O&M. 

October 2011 


7

Solutions 

Uni-RAN 

A Perfect Way to Modernize 

Mobile Networks 

By Dai Zhao 

Demand for Network 

Modernization 

Mobile broadband continues 

to develop and succeed at 

a phenomenal pace. The 

Global mobile Suppliers Association 

(GSA) confirms that as of May 2011, 

more than 99.5% of the world’s 

WCDMA operators have deployed 

HSPA on their networks, and over 

30% of them have evolved to HSPA+. 

The GSA also anticipates that 81 

LTE networks will be in commercial 

service by the end of 2012 in addition 

to the existing 20 that have been 

launched commercially. The rapid 

growth of mobile broadband has placed 

high requirements on architecture 

and management of mobile bearer 

networks. 

GSM/EDGE has by far the largest 

subscriber base, accounting for more 

than 88% of global mobile subscribers. 

Yet most GSM operators are now 

facing pressure from the growing 

demand for data services and declining 

ARPU. Legacy network devices and 

architecture are barely able to meet the 

requirements. It is therefore imperative 

to modernize legacy mobile networks 

for high profitability and sustainable 

development. 

ZTE’s Uni-RAN Solution 

To modernize networks, ZTE has 

developed an innovative Uni-RAN 

solution that ensures smooth evolution 

and easy O&M without affecting 

existing services. 

Smooth evolution 

Uni-RAN adopts a unified SDR 

platform that supports multiband and 

multimode radio configurations. The 

CN and OMM parts of multiple radio 

systems are converged in Uni-RAN. 

This simplifies network architecture 

and makes network O&M easier and 

more reliable. By updating software 

and minimizing changes to hardware, 

Uni-RAN allows for smooth evolution 

from GSM/EDGE to WCDMA and 

then to LTE. In network modernization, 

it is quite important to balance 

investment in equipment, network 

O&M, and network profitability. 

Because it allows for smooth evolution, 

Uni-RAN can extend the lifecycle of a 

network for longer time. 

Flexible networking 

ZTE’s SDR base stations come in 

various types, ranging from indoor 

macro base stations for dense, hightraffic 

urban areas to outdoor micro 

base stations for remote coverage 

8 ZTE TECHNOLOGIES 

October 2011

in suburban areas. The advanced 

BBU+RRU structure is suitable for 

almost all application scenarios, and 

installation is also easy and efficient. 

Compared with legacy indoor macro 

base stations, the BBU+RRU design 

saves more than 75% of equipment 

room. With diverse base stations 

and flexible networking mode, Uni- 

RAN helps operators economize on 

manpower and material resources. 

Outstanding performance 

Uni-RAN has performance 

advantages that help operators reduce 

OPEX, especially transmission and 

energy costs. The all-IP platform 

used for SDR base stations greatly 

enhances communication efficiency 

and saves on rental fees for E1 

transmission. BBUs and RRUs are 

specially designed to suit different 

application scenarios. They are small, 

silent, energy efficient, and naturally 

cooled. Uni-RAN adjusts transmitting 

power of RF units according to realtime 

traffic load. These adjustments 

are made using software so that power 

consumption throughout the network 

is completely optimized. 

Speed Up Network Modernization 

By the end of 2010, ZTE had 

deployed GSM/UMTS networks 

for 120 operators in more than 100 

countries. ZTE’s SDR equipment―the 

c o r e o f U n i - R A N ― h a s b e e n 

recognized by operators worldwide 

since it was first launched in 2007. ZTE 

has achieved large-scale breakthroughs 

in the global high-end telecom market 

with the SDR base-station platform. 

Companies in Europe, such as KPN, 

Telenor, Telefonica, Optimus and H3G, 

are using SDR base stations deployed 

by ZTE. In 2010, the total shipment 

of ZTE’s SDR base stations exceeded 

700,000 units. 

Driven by an upsurge in mobile 

network modernization around the 

world, ZTE has seized the opportunity 

t o f o c u s o n n e t w o r k s w a p p i n g 

projects. The company has helped 67 

operators in 29 countries modernize 

their networks, swapping more than 

200,000 base station sites. In the first 

half of 2011, 160,000 GSM/UMTS 

carriers were successfully swapped 

by ZTE. Through cooperation with 

leading operators, ZTE has gained 

rich experience in network swapping 

and enhanced capabilities in logistic, 

engineering, and network optimization. 

CSL: create a simple network 

CSL is the largest mobile operator in 

Hong Kong with more than 3 million 

subscribers. CSL had four original 

mobile networks: a 900MHz GSM 

network, two 1800MHz GSM networks, 

and a 2.1GHz UMTS network. The 

maximum download rate supported by 

the UMTS network was only 2.1Mbps, 

which was insufficient for meeting the 

requirements of 3G subscribers. Various 

NMS interfaces were being used to 

accommodate multiple modes and 

frequency bands. So CSL had difficulty 

managing and maintaining individual 

networks. The complicated network 

architecture also made it difficult to 

evolve networks and ensure QoS. 

In 2008, CSL chose ZTE as a 

partner in its network reconstruction. 

October 2011 


9

Solutions 

Using Uni-RAN, CSL completely 

converged its GSM 900/1800M, 

UMTS 900M, UMTS 2.1G and LTE 

1.8G/2.6G networks within two years. 

Unified network management was 

also implemented. 2500 base station 

sites were swapped. The restructured 

HSPA+ (or Next G) network is 

capable of downloading data at up to 

21Mbps. According to internal research 

conducted by CSL in 2010, data traffic 

has increased by more than 65 times 

since the Next G network was launched 

in early 2009. 

During the network swapover, 

CSL cut down the total number of 

base stations from 5050 to 2050, 

replaced original E1 transmission 

with FE transmission, and saved 20% 

transmission resources. CSL reduced 

network OPEX by 35.7% and greatly 

improved its profitability. 

Ncell: make a miracle on the Top of 

Mt. Everest 

Ncell is a wholly owned subsidiary 

of TeliaSonera and is the second largest 

mobile operator in Nepal. Its network 

covers 42% of mobile subscribers in 

the country. Ncell aims to capture the 

largest market share. 

Nepal contains part of the 

Himalayas, the highest mountain range 

in the world. Eight of the world’s ten 

tallest mountains, including the highest 

point on Earth, Mt. Everest, are located 

in the country. Deploying base stations 

on the world’s highest mountain 

presented big challenges to Ncell. 

For fast deployment and smooth 

evolution, Ncell adopted ZTE’s 

Uni-RAN solution in its network 

reconstruction project. Micro base 

stations using the SDR platform 

consume less power, have a small 

footprint, and are easy to install. A onepiece 

mast and insulated shelter are 

used for the stations, and this allows 

the base stations to be installed quickly 

without the need to move earth or 

construct foundations. Solar panels 

are incorporated into the design to 

ensure that base stations have power 

supply throughout the year and are 

environmentally friendly. These 

features allow each base station to 

operate at optimal levels with minimal 

power usage even in temperatures as 

low as 30˚C to 40˚C. Overcoming 

altitude sickness and harsh natural 

environment, ZTE engineers deployed 

eight 3G base stations on Mt. Everest 

one month ahead of schedule. 

After 500 base station sites were 

swapped in the initial phase, Ncell 

reduced energy consumption by over 

45% and saw a rapid rise in their 

subscriber base and data traffic. 

10 


October 2011

Solutions 

By Hu Kaiwei 

As 3G users become more 

habitual in their use of 

microblogging and mobile 

video, the era of mobile Internet is 

approaching at an ever-increasing 

pace. Competition facing mobile 

operators is fierce, and with the 

explosion of mobile Internet traffic, the 

costs of constructing, operating, and 

upgrading wireless access networks 

are increasing. However, in many 

cases, APRU is not increasing much 

or is even dropping. The development 

of mobile Internet is being hampered 

by traditional mobile networks, which 

cannot meet the demands of large 

amounts of mobile data. 

Restrictions in Traditional 

Mobile Networks 

Mobile Internet users with smart 

terminals and tablet PCs require 

ubiquitous signal coverage. Highorder 

modulation, high spectrum, and 

high bandwidth are characteristics 

of LTE—a new wireless broadband 

technology designed to support mobile 

Internet access via cell phones and 

handheld devices. Microcell coverage 

is preferred in LTE; however, 

traditional mobile network design 

restricts the development of highspeed 

mobile Internet. 

Construction and O&M costs for 

traditional mobile networks are 

high because auxiliary facilities 

such as equipment room, air 

conditioners, transmission and 

power supply are needed for base 

stations. Infrastructure equipment 

accounts for about 30% of TCO. 

Auxiliary facilities also consume 

much energy. 

Cell signals in a traditional 

mobile network are separate and 

processed independently. Also, 

there can be much interference and 

little collaboration between base 

stations. Therefore, high bandwidth 

is not supported. 

The capacity of a mobile network 

varies from time to time and from 

place to place. This causes a tidal 

effect. Each cell in a traditional 

mobile network is designed with 

maximum capacity. If there is 

spare capacity, resources cannot 

be shared throughout the network. 

This is inefficient. The tidal effect 

is more pronounced in the mobile 

Internet era because of higher data 

throughput, and it is necessary to 

share network resources. 

Where multiple wireless systems 

coexist, wireless networks 

with different standards can be 

operated. However, multisystem 

convergence is difficult with a 

traditional network design. 

To address these problems, China 

Mobile has put forward C-RAN—an 

innovative and environmentally 

friendly access network architecture 

for wireless networks. C-RAN has 

October 2011 


11

Solutions 

captured the attention of multinational 

operators. 

The C-RAN Concept 

C-RAN is a collaborative, real-time 

cloud radio access network. It is based 

on an open platform and consists 

of centralized baseband processing 

pools (virtual BTS pools), RRUs, and 

antennas. 

Clean system, collaborative radio, 

and cloud computing is the essence of 

C-RAN. A complete industry study on 

C-RAN has already been carried out. 

ZTE was the first vendor to propose 

a “super baseband pool” solution. 

ZTE has worked with China Mobile 

to develop a baseband pool solution 

that supports more than a thousand 

carriers, to develop a prototype based 

on general-purpose processors, and 

to develop a future-proof C-RAN 

solution involving active antenna and 

LTE-A prototype. 

To speed up network modernization, 

China Mobile has put higher 

requirements on its GSM network. 

More 3G (and even 4G) technologies 

will be applied. The introduction of 

C-RAN into such a large-scale GSM 

network will bring many benefits. 

Energy saving 

In a traditional mobile network, 

the cost of equipment rooms, 

transmission, and air conditioners 

chews up more than 60% of CAPEX. 

And when calculated over several 

years, OPEX accounts for more than 

60% of TCO. A great deal of OPEX 

comes from power for air conditioners 

and from the rent of equipment rooms. 

Using C-RAN, operators can focus 

their investment on infrastructure 

equipment, optical fibers, and 

communication pipes while greatly 

reducing the costs of auxiliary 

equipment. Baseband resource 

sharing and flexible dispatch can also 

be implemented. This significantly 

improves resource use. If an operator 

builds six sites in rural areas using 

C-RAN architecture, they can save 

equipment costs by around 9%, 

construction costs by around 30%, and 

O&M costs by around 76%. 

Collaboration and sharing 

China Mobile operates the world’s 

largest GSM network. Due to an 

upsurge in data traffic, the GSM 

network is heavily burdened, and 

resource use in the wireless network 

exceeds 75%. Each cell in urban sites 

has more than eight carriers, and the 

frequency reuse coefficient is less 

than 10. This is causing spectrum 

shortage. As more sites are built at 

intervals of less than 350 meters, 

network planning is becoming 

extremely complicated. The 

traditional way of expanding capacity 

by splitting cells and adding carriers 

has caused bottlenecks. 

The tidal effect impacts wireless 

resource use, but C-RAN is designed 

to automatically adjust network 

resources as traffic migrates. 

Centralized baseband pools and 

multi-RRU cell combination 

technology solve problems caused 

by the tidal effect and also increase 

diversity gain through collaborative 

multi-RRU coverage. 

GSM C-RAN Solution 

ZTE has introduced C-RAN into 

its wireless network solution through 

technological innovation. 

12 


October 2011

RRUs will be networked and pooled 

together. This will simplify network 

architecture, reduce interactive 

latency between base stations, and 

provide basic architecture for wireless 

signal management and collaborative 

multicell radio management. 

Sharing baseband resources 

ZTE places the baseband parts of 

all wireless equipment on the BBU. 

The GSM BBU can dynamically 

share baseband resources of 108 

carriers. By the end of 2011, ZTE will 

realize baseband resource sharing 

for over 1000 carriers. This will lay 

the foundation for collaboration and 

sharing between large-scale base 

stations. 

Large capacity, low power 

consumption and flexible 

networking 

ZTE has developed an innovative 

2T4R RRU based on advanced 

multicarrier power amplification 

technology. A single RRU module 

supports 12 carriers and cross-cell 

configuration. Auxiliary facilities 

are unnecessary. The RRU is easy to 

install, has flexible networking (ring 

or chain topology), and is energy 

efficient (consumes only 460W peak 

power). 

Multinetwork coexistence and 

smooth evolution 

ZTE’s wireless networks are built 

on the unified SDR platform and 

open μTCA standard. This allows for 

smooth evolution of BBU and RRU. 

Baseband processing units of GSM, 

TD-SCDMA, and LTE networks based 

on the same platform architecture 

can be placed on the same BTS rack. 

They can share the same backboard, 

power supply, main control, clock, and 

transmission facilities. In the future, 

GSM, TD-SCDMA and LTE networks 

will share the same BBU, and multiple 

Complete transmission and O&M 

China Mobile adopts SDH in its 

GSM bearer network. Usually, six to 

eight sites form a ring and share a pair 

of fiber optic cables. Using innovative 

technologies such as fast phase locking 

and high-quality clock, ZTE’s GSM 

C-RAN supports 18 chassis cascade. 

It employs 6G optical ports between 

BBU and RRU and consumes the same 

number of fiber optic resources as a 

conventional SDH bearer network. 

It also supports fiber connection and 

colored fiber connection and can be 

applied in various scenarios. ZTE uses 

the idle field of CPRI protocol between 

BBU and RRU to develop an array of 

functions for centralized O&M. This 

makes the network controllable and 

manageable. 

The C-RAN architecture creates 

large capacity and uses a small 

number of nodes to dramatically 

reduce CAPEX. This helps operators 

build new-generation GSM networks. 

Today, GSM devices are being 

purchased in bulk to replace old 

devices. C-RAN-based GSM will 

become the equipment of choice for 

more operators. 

Further research needs to be 

done on C-RAN. Mobile operators, 

equipment vendors, and traditional 

IT suppliers will jointly drive the 

growth of C-RAN and shorten the 

time to market for new-generation 

environmentally friendly RAN 

architecture. 

October 2011 


13

Solutions 

Creating Value with Efficient 

Spare Parts Management 

By Mehrzad Nabavieh 

In the telecommunication industry, cleaning and logistics. However with for customers, ZTE assures cost 

the critical importance of spare SPM, the vendor owns and stores the efficiency and adheres to the SLA. 

parts management (SPM) cannot spare parts, undertakes repairs, and ZTE’s SPM encompasses spare parts 

14 ZTE TECHNOLOGIES October 2011 

be underestimated. SPM is more 

a science than an art and involves 

balancing inventory levels with 

service level agreements (SLAs). This 

requires a great deal of high-precision 

forecasting. Unpredictable demand 

and infrastructure conditions coupled 

with exacting SLAs make precision 

forecasting extremely important. 

When managing spare parts, telecom 

operators must make a strategic choice 

between repair and return or SPM. 

With repair and return, the vendor is 

only responsible for repairing faulty 

units and delivering them back to the 

operator. The operator must purchase 

and store spare parts and is wholly 

responsible for inventory, testing, 

handles all related logistics. In most 

SLAs, the vendor is responsible for 

maintaining a suitable range of stock 

at adequate levels. When choosing 

between the two options, an operator 

must consider whether they are 

prepared for the risks of handling spare 

parts, and whether ownership of spare 

parts will require overly high CAPEX. 

At present, the trend is very clear. 

Most operators are opting for full 

turnkey SPM, which requires vendors 

to provide accurate and cost-effective 

solutions. As technology evolves and 

new equipment enters the market 

more frequently, there are fewer 

incentives for operators to own and 

keep spare parts. In an SPM contract 

dimensioning, provision, warehousing, 

inventory management, establishing 

a distribution chain, repairs, and all 

associated logistics activities. Before 

the service is provided, ZTE considers: 

an agreed SLA that varies according 

to the critical necessity of spare 

parts 

equipment mean time between 

failure (MTBF), which is a dynamic 

factor that changes as a product 

evolves 

prevalent infrastructure in an area 

and site accessibility 

required spare parts hubs, service 

organization, existing and future 

support systems. 

ZTE produces a plan that includes:

a bill of quantities (BOQ) for the 

spare parts 

distribution plan and proposed 

logistic channels 

organization and support systems. 

The BOQ is adjusted for business 

continuity and disaster recovery. 

The distribution strategy is vital to 

reduce inventory levels. A vertical 

spare parts distribution plan with 

several spare parts hubs at the central, 

regional and local level is not an 

optimal solution in many cases. 

Fewer layers in the distribution plan 

normally lead to higher efficiency and 

reduced inventories. Geography and 

accessibility are important factors for 

the distribution plan structure as is the 

critical necessity of the spare parts. 

Hence, different plans are normally 

implemented in an SPM service. 

Merging SPM logistics with O&M and 

sharing facilities reduces the cost of 

both O&M and SPM. 

Another way to reduce the cost 

of SPM is to set up fault diagnostics 

labs in central or regional spare parts 

centres. A proportion of faulty units do 

not require comprehensive repair, and 

certain common or basic faults can be 

detected at spare parts centres. These 

faults can then be repaired by service 

technicians without the equipment 

being dispatched to a repair centre. 

Establishing proper support 

systems is imperative in SPM. There 

are numerous inventory and asset 

management applications for spare 

parts tracking and ordering. Many of 

these applications use RFID for greater 

accuracy and easier management. 

These support systems have embedded 

work-flows and procedures that can 

be customized to match an operator’s 

preferred working processes. Inventory 

ordering can be also handled through 

the same system. Advanced inventory 

management support systems can be 

integrated into an operator’s enterprise 

resource management (ERP) and 

operation and support system (OSS) in 

order to provide a holistic view of the 

network structure. ZTE has developed 

its own inventory management system 

that uses the same data platform 

as ZTE’s OSS, and this enables 

smooth integration. ZTE’s inventory 

management system also supports 

several common interface standards 

that facilitate integration with other 

suppliers’ software platforms. 

In an SPM contract, ZTE proposes 

the most appropriate support systems 

for an operator with regards to 

the operator’s defacto platforms. 

Moreover, ZTE implements, 

customizes, and integrates the support 

system so that there is fully functional 

inventory management supporting 

SPM. 

ZTE’s SPM is vendor-independent 

and can be applied to all equipment 

deployed in a network, regardless of 

the suppliers. 

Cost optimization in SPM is 

an ongoing activity. The aim is to 

continuously find ways to reduce the 

inventory level while adhering to 

SLA. Hence, forecasting and work 

procedures are always a focus for 

improvement. 

October 2011 


15


H3G Austria: 

A Musical Movement Towards 

Mobile Broadband 

By Yin Danyun 

Austria is known as a country 

historically steeped in music. 

But few might realize that 

it is also highly developed in mobile 

communications. Austria has 9.6 

million mobile subscribers and a 

mobile penetration of 120 percent. 

Hutchison 3G (H3G) is a leading 

mobile operator in the country. H3G 

Austria obtained its 3G license in 

2000 and began marketing its services 

in 2003. The company now provides 

voice and data communications for 

subscribers nationwide. 

H3G Austria’s old network 

equipment could not be upgraded 

smoothly and was performing 

poorly. This was seriously affecting 

user experience, restricting market 

exploration, and creating operational 

difficulties. Therefore, H3G Austria 

set about modernizing their mobile 

networks, with a view to improving 

network performance and evolving 

smoothly to 4G. The ultimate aim of 

H3G Austria is to build up a profitable 

mobile broadband network that offers 

excellent user experience. 

Smooth Evolution: A Prelude 

After communicating with 

equipment providers, H3G Austria 

decided that ZTE’s Uni-RAN 

solution based on SDR technology 

was an ideal choice for its 

development plan. The Uni-RAN 

solution allows for multiband and 

multimode radio configurations and 

also supports HSPA+ at 21.6Mbps 

and DC-HSPA+ at 43.2Mbps through 

software upgrade. Moreover, it can 

evolve to LTE by re-using frequency. 

With the Uni-RAN solution, H3G 

16 


October 2011

Based on the excellent contribution of ZTE project 

members and their management, we are fully convinced 

this project will be a great success and will help us 

improve our network quality on a constant basis. 

—Matthias Baldermann, CTO of H3G Austria 

Austria can quickly enter into 

the high-performance mobile 

broadband age, and in the process, 

enhance its brand image and market 

competitiveness. In the long run, 

H3G Austria will save on investment 

and improve operational efficiency. 

H3G Austria has had a strategic 

partnership with ZTE since 2010, 

when it decided to completely 

upgrade its networks. The campaign 

involved reconstructing H3G 

Austria’s radio access, core, and 

bearer networks, with the goal of 

building up a cutting edge mobile 

broadband network. ZTE was 

contracted to provide six years of 

managed services to H3G Austria, 

and ensure long-term, stable, highperformance 

network operation. 

Customization: The High C 

In March 2010, H3G Austria 

chose ZTE as its exclusive supplier 

for the network reconstruction. The 

reconstruction is progressing as 

planned, and by the end of 2011, H3G 

Austria will have swapped about 

4000 base station sites, replaced 

more than 3000 hops of microwave 

equipment, and reconstructed its 

core network. H3G Austria worked 

with ZTE in defining targets for the 

project. Several project teams were 

set up for problem-free logistics, 

engineering implementation, and 

quality control. In order to lower 

network construction costs and 

shorten the construction period, H3G 

Austria sought to use existing outdoor 

cabinets as well as antenna and feeder 

systems. Customized solutions needed 

to be devised to make equipment from 

different manufacturers compatible 

with each other. 

The key to reusing cabinets is to 

solve the problem of heat dissipation 

and find space for installation. Given 

the differences in structural layout 

and design between new and old base 

stations, the air ducts in different 

base stations were incompatible. This 

meant that if the new base stations 

were installed in old cabinets, they 

might not be cooled well enough for 

reliable long-term operation. 

After carefully surveying the 

base station sites, ZTE’s technical 

experts came up with a customized 

solution. Two types of compact base 

station were selected and modified 

to match the original cabinets. When 

totally embedded in the cabinet, 

these compact base stations were a 

perfect fit in terms of air ducts and 

cabling. Results of the field test were 

satisfying. The customized solution 

helped H3G Austria shorten their 

construction period and save CAPEX. 

Reusing antenna and feeder 

systems was a more challenging 

task. One of the headaches was to 

make good use of more than 10,000 

tower mounted amplifiers (TMAs) 

for enhancing radio signals. These 

TMAs had private protocols and 

non-standard supervision and power 

supply. To remove or replace TMAs 

from the tops of the towers would 

have cost up to €1000 for each site. 

If the TMAs were reused, the new 

base stations would be incapable 

of energizing or supervising them 

through standard interfaces. So the 

October 2011 ZTE TECHNOLOGIES 

17


TMAs had to be modified. H3G 

Austria teamed up with ZTE to 

classify all the TMAs and their 

corresponding feeder connectors 

into eight categories. Each type of 

TMAs had its own connectors and 

cables. In this way, all TMAs in 

the network could be reused, which 

saved up to €10 million in labour 

costs. Customization is therefore 

considered the high C of H3G 

Austria’s musical movement towards 

mobile broadband. 

Rapid Deployment: A March 

Towards Mobile Broadband 

Mobile multimedia business is 

booming in Austria. This provides 

opportunities for H3G to achieve 

major breakthroughs in the market. 

The operator required more than 

1100 sites in key areas to be swapped 

by the end of 2010 and network 

modernization to be completed 

by 2011. With its professional 

project delivery teams and custommade 

solutions, ZTE succeeded in 

swapping and commercializing 1336 

sites at the end of 2010 and 2600 

sites in May 2011, which was far 

ahead of schedule. 

The performance of the new 

network has been significantly 

improved. On June 2, 2011, H3G 

Austria and ZTE released independent 

test results showing the LTE/DC- 

HSPA+ network to be the fastest in 

Austria, with the widest coverage. 

Jan Trionow, CEO of H3G Austria, 

presented results of network evaluation 

analyses based on the measurements 

done with speedtest.net, a reliable 

tool to test internet connection speed. 

These results indicate that H3G’s 

network has higher throughput for 

download and upload than any of its 

competitor’s networks in Austria. 

Network capacity has increased ten 

times that of the previous network, and 

data throughput of the entire network 

has doubled. ZTE’s Uni-RAN solution 

supports LTE/DC-HSPA+ integrated 

networking, which enables efficient 

network upgrades and reduces TCO. 

The solution meets increasing user 

requirements for mobile bandwidth 

and multimedia services. 

The whole project is scheduled to 

be finished by the end of 2011. H3G 

is the first operator in Austria to 

build a nationwide LTE/DC-HSPA+ 

network that will cover 94% of the 

country’s population with HSPA+ 

services and provide LTE services in 

major cities. H3G Austria is poised 

to offer leading mobile broadband 

services and improve user lifestyles. 

18 


October 2011

By Xue Fei 

India is the seventh largest 

country by geographical 

area and the second most 

populous country in the world. Its 

large population, low telephony 

penetration, and rising consumer 

spending power have made it the 

fastest growing telecommunication 

market in the world. As of April 

2011, there were 826.93 million 

mobile subscribers in India, and that 

number is predicted to rise to 1.159 

billion by 2013. 

The market is very promising in 

India, and more than ten operators that 

exist there are engaged in cut-throat 

competition. Reliance Communications, 

the flagship company of Reliance Anil 

Dhirubhai Ambani Group (ADAG), 

stands out from most of its competitors. 

With a subscriber base of 128.87 

million as of February 2011, it is the 

second largest telecommunication 

company in India and the 16th largest 

operator in the world. The company’s 

vision is “to be amongst the top 3 most 

valued Indian companies by 2015; to 

provide information, communication 

and entertainment services, and to be 

the industry benchmark in customer 

experience, employee centricity and 

innovation.” Reliance Communications 

has always been committed to cuttingedge 

technologies and cost-effective 

solutions. 

Successful Strategy in the 

2G Era 

Although Reliance is the largest 

CDMA operator in India, it still 

offers GSM to support data services, 

diversify terminals, and enrich user 

experience. In 2007, Reliance was 

issued with a GSM license and 

embarked on its GSM journey. 

Ever since the CDMA era, ZTE’s 

innovative designs have deeply 

impressed Reliance. ZTE converged 

CDMA and GSM into one rack, 

significantly helping the operator 

decrease their network construction 

costs and shorten their engineering 

time. Reliance named the solution 

“combo box.” 

To tackle the problems of difficult 

engineering and poor coverage, 

Reliance adopted ZTE’s SDR 8000 

base stations with dual-density TRX 

units. They also adopted highly 

October 2011 


19


integrated indoor macro base stations 

from ZTE as well as the industry’s 

smallest micro base stations and an 

all-IP indoor pico base station. These 

enable deep and seamless coverage 

in dense urban areas. 

ZTE’s innovative Netspeed 

technology assisted Reliance to 

achieve premium quality coverage 

in suburbs. This speeds up 

network deployment and reduces 

maintenance costs. 

In rural areas, the ZXSDR 8000 

BTS family satisfied Reliance’s 

requirements for coverage, service 

capacity and future evolution. 

With distributed structure 

and intelligent power control 

technology such as intelligent 

carrier shutdown and intelligent 

cell shutdown, the ZXSDR 8000 

BTS family easily adapts to its 

surrounding environment and 

substantially cuts down network 

OAM. 

Reliance transformed its mode 

of operation from single CDMA 

to CDMA/GSM dual-mode. As of 

September 2010, the number of GSM 

subscribers was 6.205 million. This 

makes Reliance the second largest 

integrated telecommunications 

service provider in India. Reliance 

operates mobile and fixed networks, 

and offers broadband, direct distance 

dialing (DDD) and international 

direct distance dialing (IDDD). They 

also offer data services and valueadded 

services. 

Front-Runner in the 3G World 

India’s 3G spectrum auction 

concluded in May 2010. Reliance 

paid a huge amount of money for 

Figure 1. Combo box. 

13 telecommunication circles. The 

auction has created expectations 

for the next great wave of mobile 

connection growth. 

However, there are still many 

people at the bottom of the 

consumption pyramid. 

It is predicted that the largest 

source of income for Indian 

telecommunication companies 

in the next decade will continue 

to be voice services. GSM will 

continue to dominate the Indian 

market, with operators focusing 

their 3G strategies on urban areas 

and promoting subscriber growth 

by expanding 2G services into rural 

areas. Converged voice and data 

services enabled by 3G networks 

will become more significant in 

the Indian market as operators 

look for ways to address the falling 

profitability of voice services. 

Cost-effective voice strategies 

have thus emerged as operators seek 

to exploit the efficiency of 3G to 

offer lower-cost voice services. This 

improves margins in a market where 

tariffs are so low. Cost-effective 

voice services benefit operators that 

have been forced to provide cheaper 

voice tariffs and improve their 

profitability. 

Compared with other 3G 

operators, Reliance has no coverage 

gaps using 2G. In light of current 

trends, Reliance formulated the 

following strategies that take 

advantage of its nationwide 2G 

coverage: 

Optimize the original CDMA 

network, changing obsolete 

network architecture to improve 

competitiveness and solidify 

subscriber base 

Reuse the dominant CDMA 

network to deploy EV-DO 

Develop UMTS, EV-DO and LTE 

Prioritize resource allocation to 

UMTS. 

ZTE’s SDR base stations have 

a unified platform that shares 

baseband processing units and RF 

modules. GSM, UMTS, CDMA 

and LTE multimode networking 

can be fulfilled in one rack. Using 

20 


October 2011

the SDR base station, Reliance 

took a big step forward in 3G 

network construction. 

CDMA/GSM/UMTS/LTE BBUs 

and RRUs in one rack with large 

capacity 

small footprint to reduce OPEX 

cutting down power consumption 

by over 50% 

flexible network deployment 

smooth evolution to HSPA+/LTE 

commercial launch of MIMO to 

improve network throughput 

After signing the contract with 

ZTE in August 2010, Reliance 

received 600 base stations within 

30 days. The first 3G call was 

made after only eight days, and a 

record was set for the swap over 

of 1120 GSM base stations in 38 

days and 952 3G sites in 22 days. 

Reliance had swapped over 2000 

2G sites and 1100 3G sites by the 

end of 2010, and 8300 2G sites 

and 4000 3G sites by June 2011. 

The networks were also optimized. 

The greatly enhanced network 

performance brought about rapid 

growth in subscriber numbers. In 

Q1 2011, Reliance gained 3 million 

GSM subscribers, a 12% increase 

on the previous year. 

In December 2010, Reliance 

announced the launch of 3G services 

in Delhi, Mumbai, Kolkata and 

Chandigarh, and it also plans to 

extend 3G coverage across the whole 

country by the end of 2011. This 

means that Reliance has become the 

second private telecommunication 

company in India to launch 3G 

services and the first to offer 3G 

services in India’s three biggest 

cities―Delhi, Mumbai and Kolkata. 

Winner in the Future 

According to a report from Ovum, 

the number of 3G connections in 

India will grow to 142 million by 

2015. This represents a compound 

annual growth rate of approximately 

80% over the next five years. 

In partnership with ZTE, Reliance is 

fully prepared for this great opportunity. 

A future-proof SDR 3G network has 

been deployed and is ready for the future 

evolution to HSPA+/LTE. With a solid 2G 

foundation, a far-seeing 3G strategy, and 

with the assistance of reliable partners, 

Reliance is destined to be the winner in 

the future. 

October 2011 


21


Cell C 

Striving Towards Leadership 

By Lv Xun 

“ We want to be the data 

leader in South Africa,” 

said Lars Reichelt, former 

CEO of Cell C. “We believe that is the 

way to go. We have the firepower, the 

technology, and by the end of next year, 

we will cover 97% of the country’s 

population with our network.” 

Cell C is South Africa’s third largest 

cellular mobile operator after Vodacom 

and MTN. But the company doesn’t 

want to remain on the tail of the two big 

shots. It is looking to wear the crown in 

the South African telecom market. 

However, becoming the leader 

is a long, hard road for Cell C, and 

the company must overcome two 

unavoidable obstacles: Vodacom and 

MTN. Vodacom is the top operator 

in South Africa, a subsidiary of the 

most powerful operator, Vodafone. 

MTN also has a firm hold on the 

South African telecom market and it is 

difficult to shake the alliance between 

these two giants. 

Reichelt’s vision, however, proved 

to be more than just words. In less 

than two years he rebranded Cell C, 

rolled out new network infrastructure, 

introduced new pricing, and opened 

new retail stores. 

“Combating Cell C in the past was 

child’s play for MTN and Vodacom,” 

said Simon Dingle, a telecom 

marketing analyst. “As the schoolyard 

bullies, they could easily shove aside 

the awkward kid trying to get a share 

of the sandpit that’s South Africa’s 

cellular market. But Cell C has grown 

up and discovered steroids. It has 

older siblings that have taught it how 

to fight, and it has a vendetta against 

the two incumbent networks that have 

made its life hell for a decade. But 

it will have to beat down some other 

kids along the way.” 

It boils down to a question of who is 

the older sibling and who will provide 

the firepower and the technology 

for Cell C. The answer is not hard 

to uncover. ZTE, a Chinese telecom 

vendor, seems to be the older sibling 

teaching Cell C how to fight. ZTE is 

providing firepower for Cell C. 

In January 2010, Cell C signed a 

network construction contract with ZTE 

for approximately 2400 2G/3G sites. 

22 


October 2011

This is a turnkey contract, meaning 

ZTE will deliver a well-constructed 

high-performance network in the same 

way a house broker delivers the front 

door key to a new owner. In such a 

turnkey project, ZTE will respond to 

everything, including site construction 

and acquisition. 

W h y w o u l d a S o u t h A f r i c a n 

company choose a Chinese company to 

teach it how to fight and ascend to the 

top 

ZTE was the first promoter of SDR 

technology in the telecommunications 

industry, and in recent years, it has 

achieved global success with its Uni- 

RAN solution based on SDR. Its SDR 

series base stations can be smoothly 

evolved from GSM to UMTS and 

even to LTE. Only software upgrades 

and minimal hardware changes are 

necessary, and this is very appealing 

to operators all over the world. It is 

especially appealing to operators like 

Cell C who face the challenges of 

shrinking capital investment and slowgrowing 

revenue. Since ZTE sold its 

first SDR base stations in 2008, more 

than 500,000 units have been deployed 

worldwide and serve more than 120 

operators. These numbers prove that 

ZTE is the partner of choice. 

ZTE’s very substantial global 

experience and advanced SDR 

technology are the reasons why the 

Chinese vendor was chosen to teach 

Cell C how to fight. 

Also, by brokering a deal with the 

China Development Bank, ZTE has 

secured funding of more than 2 billion 

rand and has helped Cell C reduce its 

considerable debt. Two billion rand is 

so powerful that Cell C now has enough 

firepower to clear its path to the top of 

the South African telecom market. 

In 2010, the Cell C network was 

baptized by the World Cup. A huge 

number of subscribers joined the Cell 

C network. Almost everyone in the 

stadium wanted to send messages to 

their friends and share the electric 

atmosphere of live football. The Cell C 

network had to deal with a huge influx 

of traffic. Supported by ZTE engineers, 

the Cell C network performed well and 

more than passed the test. 

October 2011 


23


E-Plus Group Focuses on 

Future Technologies Made by ZTE 

By Susanne Baumann 

ZTE has signed partnership 

agreement with E-Plus Group 

and KPN Belgium. Under this 

agreement, ZTE will help E-Plus expand 

its mobile network to 4G HSPA+. ZTE 

is also supporting E-Plus Group to 

implement the LTE standard. 

“The coming years will bring massive 

changes in the use of mobile devices. 

Besides voice and SMS, more and more 

people will make use of the Internet. 

Mobile browsing with a smartphone 

has developed dynamically into a mass 

market.” 

Gerhard Lüdtke, access network 

director at E-Plus Group, believes 

there is good reason to invest heavily 

in the development of data networks. 

“We expect a massive increase in data 

volume on the networks. To absorb 

this, we need competent partners who 

can assist us to expand our networks 

with mature technology. ZTE is one of 

those partners.” KPN, the Dutch parent 

company of E-Plus, has been in contact 

with ZTE since 2005—when ZTE was 

its supplier of UMTS data cards. 

In December 2009, E-Plus and KPN 

Belgium agreed to take advantage of 

ZTE’s HSPA+ technology to extensively 

expand their data network. “In the largest 

network expansion initiative in our 

history, we are making big steps every 

month on the road to becoming a 4G 

mobile operator,” said Luedtke. “This 

will benefit our customers who use the 

Internet via their mobile phones. User 

experience is critical; our customers 

demand smooth and reliable surfing.” In 

the second step, the new LTE standard 

will be introduced. Since March 2011, 

ZTE and E-Plus have been conducting 

tests on three frequency bands. 

“The priority for us is the expansion 

of the data network with HSPA+. 

HSPA+ devices are available in sufficient 

quantities and at good prices. This is not 

the case with LTE,” said Matthew Geller, 

24 


October 2011

Then there was a flurry of events. At the 

end of April, ZTE handed the network 

operator the first node B site ready for 

use. In June 2010, a customer help desk 

was set up. The help desk provides 24/7 

service and guarantees short response 

times. That same month, interoperability 

tests were completed. ZTE equipment 

was installed on existing stations and had 

to be compatible with existing material. 

At the end of June, ZTE, Alcatel Lucent, 

and E-Plus signed service contracts for 

maintenance of the networks. 

Always Close to the Customer 

At the same time, ZTE set up a 

new project office next to the E-Plus 

headquarters in Düsseldorf. ZTE 

established regional offices to coordinate 

on-site activities and to support E-Plus 

project managers all over Germany. 

Regional offices are located in Munich, 

Berlin, Hanover and Frankfurt. This 

shows how important the business 

customer focus is. Short distance from 

customers means quick response times. 

In the first half of July, a large number 

of site installations were completed. 

In August, the last two radio network 

controllers of the initial phase were 

installed and connected to the E-Plus 

network. In November, ZTE completed 

testing on the operations support system. 

Thousands more sites in Germany will 

be upgraded or swapped with ZTE 

technology in the future. 

ZTE’s engineering has brought several 

advantages to E-Plus. Data throughput 

has been significantly improved, and 

ZTE modules use less energy, generate 

less heat, and are compact. They can 

be transported easily so that installation 

and maintenance are simplified. ZTE 

also used SDR base stations for network 

expansion. SDR technology allows 

multiple wireless standards to be applied 

to a base station, and the change from 

HSPA to LTE can be done via software 

upgrades. This makes the E-Plus system 

futureproof. With the new network, the 

cost of logistics is reduced, support is 

considerable, and new services can be 

easily created. New revenue opportunities 

can be exploited in the shortest possible 

time. 

End-to-End Solution 

The agreement with E-Plus is not 

procurement manager at E-Plus. 

Rapid Implementation 

In December 2009, the contract for the 

expansion of the E-Plus data networks 

had barely been signed when ZTE began 

work on the project. First, ZTE installed 

the entire project infrastructure, setting 

up a team of technicians and engineers 

(local and Chinese) as well as a training 

center. ZTE trainers taught service 

companies, contractors, and employees 

working with E-Plus how to deal with 

the new systems. In mid March 2010, 

initial tests were carried out on the new 

system, and the results were successful. 

October 2011 


25


limited to the provision of access 

technology. It includes the delivery of 

core network technology and terminals, 

which provides E-Plus with end-toend 

solutions—from the core network 

via access technology to handsets. In 

December 2010, E-Plus launched the 

first ZTE smartphone under the name 

“Base lutea” (ZTE Blade). 

When asked whether E-Plus fears 

becoming too dependent on ZTE, 

Matthew Geller replied, “Europe is a 

very attractive destination for Asian 

companies. If we become disappointed 

with ZTE or any other Chinese 

company, this would jeopardize their 

reputation in Europe. And nobody 

wants that. Besides, ZTE is totally 

transparent. We always know who 

is responsible for what and what the 

balance sheets say. This promotes 

confidence.” The German Federal 

Network Agency, a state regulatory 

body, sees no problem in the close 

cooperation between KPN and ZTE. 

E-Plus has the next wireless standard 

in its focus, namely, LTE. Even here, 

E-Plus has been working closely with 

ZTE. Since February 2011, E-Plus has 

been conducting LTE field tests on 

ZTE technology using three frequency 

bands. The technology is being 

prepared for deployment of LTE in the 

E-Plus data network. 

Learning from China Mobile 

In Germany, the 2.6 GHz band is 

being used for TDD-LTE trials for the 

first time. TDD-LTE has mainly been 

used commercially in Asia, but E-Plus 

is pioneering a quasi-Asian standard 

in Europe. E-Plus is working together 

with the world’s largest mobile 

operator, China Mobile, and drawing 

on their rich experience in operating 

TDD technology. China Mobile brings 

expertise in operating and maintaining 

TDD networks and has supported the 

tests done by E-Plus. 

However, conditions in China differ 

to those in Germany, particularly in 

relation to customer behavior and 

acceptance. TDD-LTE services large 

populations in China and throughout 

Asia, and it is the only way to offer fast 

Internet access in Germany without the 

using expensive fiber optics. Therefore, 

the standard has been well received 

to date. Gerhard Lüdkte of E-Plus is 

confident that Germany will accept the 

new technology. 

Double Challenger Strategy 

“We are a challenger in the German 

mobile market, and ZTE is also a 

challenger in their field. The chemistry 

between the two companies is just 

right,” said Gerhard Lüdtke. “We 

had ZTE on our screen since our 

first contact in Shenzhen in 2005. In 

Asia, ZTE is already an established 

supplier of sustainable technology 

and communication. They have a 

remarkable track record of projects in 

various states, not only in China. As 

for the technology, ZTE can compete 

with other suppliers and is even superior 

to them.” Geller added, “We need a 

strong partner, because we are exposed 

to fierce competition. ZTE provides us 

with solutions that simply work well.” 

“With our power to innovate, 

we push E-Plus to the forefront. 

E-Plus can absolutely rely on us as 

a partner,” says Li Jun, CEO of ZTE 

Holland and head of the network 

expansion project at E-Plus and 

KPN Belgium. “For us, the network 

expansion for KPN International 

is a milestone on the way into the 

European market.” 

26 


October 2011

News Brief 

E-Plus and ZTE Strengthen Partnership 

Senior executives meet in Berlin to discuss expansion of 

ZTE’s mobile device portfolio in Germany 

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

the BASE media meeting 

9 September, 2011, 

Berlin ― At the BASE 

media meeting held in 

Berlin, ZTE met with 

senior executives from 

the E-Plus Group to 

discuss expansion of its 

mobile device portfolio in 

Germany. 

E-Plus, one of the 

largest mobile operators 

in Germany, has been 

collaborating with 

ZTE since 2010 on the 

expansion of the E-Plus broadband network. Following the successful launch of the 

BASE Lutea smartphone and BASE Tab, E-Plus decided to introduce ZTE mobile 

devices to enable subscribers to use data services offered by E-Plus’s advanced 

mobile data network. 

The BASE media meeting attracted more than 500 key decision makers from 

media, economics, and politics. Sporting and cultural identities also attended to 

celebrate the successful partnership between the two companies. 

ZTE, Telkom Kenya-Orange Announce 

Nation’s Fastest Commercial HSPA+ Network 

8 September 2011, Shenzhen ― ZTE and its partner, Telkom Kenya-Orange, 

launched Kenya’s fastest HSPA+ network, based on Uni-RAN, in Nairobi. The 

network allows Kenyans to access high-speed wireless Internet with a download 

rate of up to 21Mbps. 

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

200 guests. 

The newly developed network greatly improves user experience, dramatically 

reduces operating expenses, and can evolve to LTE. The joint project is a 

combination of flexible and efficient networking. As part of the agreement, ZTE 

provided Telkom Kenya-Orange with Uni-RAN-based all-IP solutions. The 

platform was then used to build a unified 2G/3G mobile network for the operator. 

ZTE Unveils First 

4-Path TD-LTE RRU 

with 40MHz and 80W 

Capabilities 

7 September 2011, Shenzhen ― 

ZTE announced it has introduced 

the industry’s first 4-path TD- 

LTE remote radio unit (RRU). The 

RRU operates at 40MHz and has 

transmitting power of 80W. 

The new high-powered, largecapacity 

RRU supports 2 × 20MHz 

TD-LTE carriers and 80W (20W 

× 4 paths) of transmission power. 

It increases the efficiency of edge 

frequency by more than 30 percent. 

The RRU also increases network 

coverage and reduces TCO for 

operators. By supporting two carriers, 

the RRU reduces the number of 

base station devices needed by an 

operator, and costs are saved. The 

RRU can also be upgraded to support 

LTE-A, which can further protect 

investment. 

When used with ZTE’s smart 

antenna technology, the RRU 

balances capacity and coverage, 

which reduces CAPEX. The RRU 

will be widely used with future TD- 

LTE networking systems. It can 

also be configured into two 2 × 

20W 2T2R RRUs through software 

configuration to provide a low-cost 

TD-LTE networking solution. 

October 2011 


27

News Brief 

ZTE and Reggefiber Sign Power 

Supply Equipment Contract 

15 August 2011, Shenzhen ― 

ZTE announced that it has signed 

a contract to provide Reggefiber 

with power supply equipment. 

Reggefiber is the leading 

constructor and operator of fiber 

networks in the Netherlands. 

ZTE will supply 

uninterruptible power supply 

(UPS) solutions for Reggefiber’s 

points of presence (POP) sites 

over the next four years. Reggefiber aims to build more 

than 200 new POP sites in the Netherlands annually. 

Compactness, high efficiency, and high reliability 

are the key benefits of ZTE’s UPS solutions. After 

conducting tests, Reggefiber concluded that ZTE’s 

modular UPS solutions solve problems associated 

with space, efficiency, and reliability and will assist 

Reggefiber in saving TCO. Modular UPSs are a trend 

in telecommunications because they are easy to expand 

and maintain. 

ZTE Introduces Industry’s First 

UWB Dual-Mode RRU 

Product increases spectral edge frequency by more than 30% 

23 August 2011, Shenzhen ― ZTE announced that it 

has introduced the telecommunication industry’s first TD- 

SCDMA/TD-LTE ultra-wideband (UWB) dual-mode 

remote radio unit (RRU) working at 50MHz. 

The new RRU can support TD-LTE applications at two 

20MHz frequencies in band E (2320MHz─2370MHz) 

and TD-SCDMA applications at 10MHz (6-carrier) 

simultaneously. The RRU has transmit power of up to 

100W (50W × 2 paths), which increases the spectral edge 

frequency by more than 30%. This product is a milestone in 

the development of UWB dual-mode technologies because 

it enables customers to build TD-SCDMA/TD-LTE indoor 

networks at the same time. 

ZTE India Establishes Global 

Experts Resource Hub 

Center aims to expand ZTE’s technical expertise to key 

global markets 

18 August 2011, Shenzhen ― ZTE announced it has 

designated ZTE India as the company’s global experts 

resource hub. 

ZTE India is a wholly owned subsidiary of ZTE 

Corporation and will serve as a key technical resource 

provider for ZTE’s operations and subsidiaries in other 

countries as the company continues to scale up its global 

growth. To date, 200 ZTE India employees have been 

deployed to company projects in Africa, Europe, Hungary, 

Turkey and the UAE. The company aims to have 2000 

employees at the center in two years. 

ZTE Partners with BSNL to Enhance 

Broadband Connectivity in India 

Tie-up includes contract to deploy 3 million subscriber 

broadband units 

8 August 2011, Shenzhen ― ZTE announced that 

it has entered into a strategic partnership with Bharat 

Sanchar Nigam Limited (BSNL), India’s leading 

integrated telecom service provider, with the aim of 

enhancing broadband services in the country. 

ZTE will deploy ultra high-speed ADSL2+ and 

next-generation VDSL2+ broadband devices across 

BSNL’s network in 15 circles. This deployment 

will expand the reach and quality of BSNL’s fixed 

network broadband services across the country 

and address the requirements of future multimedia 

broadband services. ZTE has already deployed over 

3 million subscriber broadband units for BSNL. 

Eighty percent of the networks equipped with these 

units use ADSL2+; the remaining 20 percent use 

VDSL2+. ZTE will command 40 to 45 percent of 

BSNL’s DSL market share. 

28 


October 2011

ZTE Records 21.52% Increase in Revenue to RMB37.3 

Billion in First Half 2011 

Revenue in Europe and America grows 62% 

30 August 2011, Shenzhen ― ZTE 

today announced a 21.52% increase in 

operating revenue to RMB37.337 billion 

for the six months ended June 30, 2011. 

Based on HKFRS, interim net 

profit fell 12.33% to RMB769 million. 

Basic earnings per share amounted to 

RMB0.27. 

In China, ZTE reported that operating 

revenue increased to RMB16.527 billion, 

44.26% of ZTE’s total operating revenue 

for the first half of 2011. Although there 

was a slowdown in overall investments 

in the domestic telecom industry, ZTE 

grew operating revenue by improving 

the competitiveness of its products and 

by expanding market share for wireless, 

data communication, terminal, and other 

products. 

During the first half of 2011, the 

international part of ZTE Corporation 

reported an operating revenue of 

RMB20.810 billion, 55.74% of its total 

operating revenue and representing 

year-on-year growth of 36.41%. 

Strength from the international market 

was the key driver for the rapid 

growth in the first half of 2011. ZTE’s 

diligence in developing international 

markets was demonstrated in a variety 

of ways. While gaining market share 

in emerging markets, ZTE also 

continued to make large-scale alliances 

with global mainstream carriers by 

cooperating on different products. 

This helped boost revenue from the 

international business. 

Europe and America were the 

fastest-growing regions among the top 

three overseas markets, rising 62% 

to RMB8.99 billion and accounting 

for 24.1% of ZTE’s entire revenue. 

ZTE Asia-Pacific (excluding China) 

accounted for 18.2% of revenue, and 

Africa accounted for 13.4% of revenue. 

ZTE registered year-on-year revenue 

growth of 8.01% for carrier networks, 

43.96% for terminal products, and 

42.29% for telecommunication 

software systems, services, and other 

products during the period. 

ZTE Ships 35 Million Handsets in First Half of 2011 

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

9 August 2011, Shenzhen ― ZTE 

today announced that it shipped 60 

million terminal products, including 

35 million handsets, in the first 

half of 2011. This is approximately 

30% increase year-on-year in 

total handsets shipped worldwide. 

Smartphone sales increased 400%, 

and the US market grew 300% yearon-year. 

Following the announcement of 

ZTE’s innovative smart terminal 

strategy, sales of smart terminals 

reached five million in the first half 

of 2011, a 400% increase yearon-year. 

In 2011, ZTE Blade also 

became one of the world’s top-selling 

smartphones. Through partnerships 

with approximately 80 operators, 

ZTE Blade is now available in nearly 

50 countries and regions. Daily sales 

of Blade in China are the nation’s 

highest for Android smartphones, 

averaging 16,000 units per day. 

ZTE has now sold 2.5 million Blade 

handsets globally and expects to 

break the five million mark this year. 

ZTE also aims to ship 12 million 

smart terminals in the second half of 

the year. 


29

30 

ZTE TECHNOLOGIES

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