Fashion Show of ZTE 3G Terminals

www.zte.com.cn 

A Monthly Publication 

Vol. 10 No. 1 Issue 96 January/2008 

P13 

Fashion Show of ZTE 3G Terminals 

Focus on Handsets 

ZTE U980 is the first dual-mode dual-standby intelligent handset in the 

industry supporting both TD-SCDMA and EDGE 

Corporate News 

Focus on Handsets 

3 

4 

MetroPCS Selects ZTE Handsets 

ZTE to Supply 5 mln Mobile Phones to 

Vodafone 

P9 

Messages from ZTE Top Management 

We are striving to be among the world’s leading 

handset manufacturers 

4 

ZTE Selects Trolltech’s Qtopia Phone Edition 

for U980 Smartphone Platform 

5 

ZTE to Build World’s First AVS-IPTV 

Commercial Network 

6 

6 

6 

ZTE India Aims for $ 1 Billion Revenue in 

2008 

ZTE Tops Gartner’s Latest Ranking 

ZTE Expounds Real Benefits of IMS 

P11 

Memorabilia of ZTE Handsets 

ZTE scored booming sales of WCDMA, CDMA 

and GSM handsets for the first half of 2007 with 

the half-year handset shipment exceeding its 

2006 annual target 

Press Clipping 

7 

8 

Global Cell Phone Use at 50 Percent 

China’s IPTV is about TV, not the PC 

P16 

3G Pioneering Experience Campaign 

ZTE took the lead to launch the “3G Pioneering 

Experience Campaign” in Shenzhen, Shanghai, 

Beijing and Xiamen, bringing 3G experience to 

general users for the first time

Focus on IPTV 

ZTE’s AVS-based IPTV Solution 

The successful application of AVSbased 

IPTV solution is no doubt of 

great help to promote the healthy 

development of IPTV industry in 

China 

P19 

Editorial Board 

Editor-in-Chief: Gu Yongcheng 

Deputy Editor-in-Chief: Huang Xinming 

Editorial Director: Zhao Lili 

Executive Editor: Yue Lihua 

Editor: Angela Amor T. Guinto 

Circulation Manager: Wang Pingping 

The IPTV Evolution 

IPTV has evolved through the following phases since its 

inception: Barebone IPTV, Enriched IPTV, Interactive 

IPTV, Personalized IPTV, and Comprehensive IPTV 

ZTE’s Feature-rich EyeWill Services 

IPTV provides two-way interactive communication, 

allowing subscribers to watch television while using the 

telephone line and broadband internet connection 

Successful IPTV Deployment in Jiangsu Telecom 

Based on ZTE’s unified IPTV platform, Jiangsu 

telecom can provide varieties of services ranging from 

basic audio/video services to value-added multimedia 

services 

P22 

22 

26 

28 

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is free of charge 

Tel: +86-755-26775203 

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Email: chen.jiali@zte.com.cn 

Website: www.zte.com.cn 

Editorial Office 

Marketing System 

11F, R&D Building, ZTE Plaza, 

Hi-tech Road South, Hi-tech Industrial Park, 

Shenzhen, P.R.China 

Postcode: 518057 

Tel: +86-755-26775191 

Fax: +86-755-26775217 

Email: yue.lihua@zte.com.cn 

P28 

ZTE Profile 

ZTE is a leading global provider of 

telecommunications equipment and network 

solutions. ZTE's product range is the most 

complete in the world—covering virtually 

every sector of the wireline, wireless and 

handset markets. The company delivers 

products and services to customers in more 

than 120 countries. 

 

January 2008 ZTE TECHNOLOGIES


MetroPCS Selects ZTE Handsets 

Leading U.S. Carrier to Offer ZTE's High Quality CDMA AWS and PCS Handsets 

to Subscribers in all Markets it Serves 

ZTE USA, Inc. a subsidiary of ZTE 

Corporation, today announced that 

MetroPCS Communications, Inc. has 

signed an agreement to purchase its CDMA PCS 

and AWS handsets from ZTE USA. MetroPCS, 

the nation’s leading provider of unlimited 

wireless communications service for a flat 

rate with no signed contract, will begin selling 

ZTE’s high quality, award-winning handsets in 

stores starting in January, 2008. MetroPCS has 

approximately 3.7 million subscribers and offers 

service in the Miami, Orlando, Sarasota, Tampa, 

Daytona, Melbourne, Atlanta, Dallas, Detroit, 

San Francisco, Los Angeles, and Sacramento 

metropolitan areas. 

“MetroPCS looks forward to working 

with ZTE and offering their handsets to our 

customers,” said Tom Keys, Chief Operations 

Officer of MetroPCS. 

ZTE USA manufactures high-quality handsets 

that are designed in partnership with its carrier 

customers. The company draws on its 

in-house design center to create awardwinning, 

innovative handsets that are 

attuned to the needs of U.S. subscribers. 

“Today’s news reflects ZTE’s ongoing 

commitment to equipping the U.S. 

market with handsets that strike the right 

balance between innovation, quality 

and affordability,” said Dr. George Sun, 

CEO of ZTE USA. “We see this as the 

first step towards forging a long-term 

business relationship with MetroPCS.” 

ZTE USA offers a full portfolio 

of end-to-end wireless handset and 

networking solutions in the U.S. The 

company’s handsets have won numerous 

design awards, and its flexible product 

design and manufacturing cycle enables 

ZTE USA to quickly deliver affordable 

products to customers. 

(ZTE Corporation) 

ZTE Handsets to Enter the U.S. Market 

December 19, 2007, Olga Kharif 

This was only a matter of time. Following in the footsteps of LG and Samsung, Asian 

companies Pantech and HTC have begun selling their cell phones in the U.S. in the past 

several years. Now, ZTE is jumping into the fray as well: On Dec. 19, the Chinese company 

announced it will make its first handset available in the U.S. through MetroPCS. 

And I have every reason to believe that ZTE's handsets might spread to other U.S. carriers as 

well. The phone's specs, as presented in filings with the Federal Communications Commission, 

look good: The flip phone comes with two color displays, a microSD port, and shiny good looks. 

And, since the phone will be made and designed in China, chances are, it will be pretty cheap. 

Already, ZTE plans to introduce multiple handsets through MetroPCS. And the company's 

phones could, eventually, make it into Sprint. In July, the company announced a deal with 

Sprint Nextel to supply the carrier with cards and modems for its WiMax network. While that 

build-out is in question, the deal could help ZTE worm its way into Sprint's phone line-up. 

(www.businessweek.com) 

ZTE TECHNOLOGIES January 2008


ZTE to Supply 5 mln Mobile 

Phones to Vodafone 

December 7, 2007 

ZTE is in talk with the world’s 

largest mobile service operator 

Vodafone that may allow ZTE 

to provide 5 million low-cost mobile 

phones to the UK-based telecoms giant. 

The mobile phones will apply for 

GSM (Global System for Mobile 

Communication) standards and are 

expected to be sold in India, ZTE’s 

second largest market after the Chinese 

mainland, said Liang Min, who is in 

charge of the company’s overseas market. 

It is the latest move for ZTE to 

expand its portfolio in the global market. 

ZTE has set up 13 regional distribution 

networks. It also won the cooperation 

with more than 500 operators in 

over 120 countries. Its overseas sales 

revenue has accounted for 52.3% of the 

company’s total by the end of June 30 

this year. 

(http://electronics.tdctrade.com) 

VDF125 

ZTE Selects Trolltech’s Qtopia Phone Edition for U980 

Smartphone Platform 


Trolltech, one of Norway’s most 

successful software companies, 

announced that Qtopia(R) Phone 

Edition, the company’s application 

platform and user interface for Linuxbased 

mobile phones, has been selected 

by Chinese mobile phone manufacturer 

ZTE as the Linux-based application 

framework for ZTE U980. The U980 is 

ZTE’s mobile phone platform created 

for China’s national 3G standard TD- 

SCDMA. Smartphones based on this 

platform will be supplied through China 

Mobile and sold into the market. 

ZTE is the biggest infrastructure 

supplier in China’s TD-SCDMA 3G 

market. To facilitate 3G smartphone 

development, ZTE created the U980 

platform to be one of the smartphone 

solutions used to create 3G phones. ZTE 

has long experience with Qtopia Phone 

U980 

Edition and Linux, having already 

released two Qtopia smartphones (the e3 

and e700) in the Chinese market. 

“Qtopia offers the advantage of a 

comprehensive development platform 

while being very flexible,” said Luo 

Zhong Sheng, Ph. D, General Manager, 

TD-SCDMA Product Line, Handsets 

Division of ZTE. “We hope to leverage 

both advantages when building our 

internal TD-SCDMA mobile phone 

platform, U980. It will enable us to 

create new and complex devices quickly 

and efficiently while supporting the 

Chinese 3G standard.” 

(www.euroinvestor.co.uk) 

 


ZTE to Build World’s First AVS-IPTV 

Commercial Network 

Further Strengthens ZTE’s No. 1 Position 

in China’s IPTV Market 

ZTE further solidifies its 

market position as a leading 

provider of IPTV network 

solutions by clinching 

another major deal in China recently. 

The company has won the world’s 

first AVS-IPTV commercial network 

development bid offered by the China 

Netcom Group Corporation (CNC), a 

leading broadband communications and 

fixed-line telecommunications operator 

in China. Under the contract, ZTE will 

be the sole provider of IPTV network 

solutions for the project. 

As the national audio/video coding 

and compression standard, AVS is a 

homegrown intellectual property in 

China that would enable local providers 

to save on patent fees imposed by 

foreign operators. China’s Ministry 

of Information Industry (MII) and 

CNC have been collaborating to 

drive the industrial implementation 

of AVS standard. Trial tests on the 

use of AVS-IPTV for commercial 

purposes in Dalian, China had started 

since November 2006, establishing 

a solid foundation for future IPTV 

d e v e l o p m e n t s n a t i o n a l l y a n d 

internationally. 

“We are proud to win the AVS-IPTV 

commercial network bid with China 

Netcom,” says Mr Yu Yifang, GM of 

ZTE Multimedia & Terminal Products. 

“AV S - I P T V i s 

a 

technology that is 

still in its infancy 

in China with huge 

business potentials 

f o r l a r g e - s c a l e 

deployment in the 

years to come. This 

deal certainly validates 

our leading market 

position as a reliable 

provider of IPTV network 

solutions with strong inh 

o u s e R & D c a p a b i l i t y 

and multiple IPTV network 

projects experience both locally 

and overseas. We expect the project 

to play a significant role on the future 

development of IPTV in China.” 

This is the first time that ZTE is 

collaborating with CNC to establish 

the IPTV/AVS commercial network, 

which required the company to manage 

within short production cycle and highly 

sophisticated architecture. With strong 

industry support and guidance from 

several local organizations including 

MII, CNC, CNC Research Centre, 

Liaoning Netcom and Dalian Netcom, 

ZTE has achieved optimal performance 

during the trial testing period thus 

ensuring future IPTV subscribers to get 

reliable network services. 

Currently, ZTE provides end-toend 

IPTV total solutions specifically 

designed for deploying multimedia 

services over an IP network, enabling 

o p e r a t o r s t o d e l ive r o n e - s t o p 

services over their existing network 

infrastructure. ZTE has conducted 

majority of IPTV trials in China, as well 

as deployed IPTV systems in Europe, 

Asia Pacific, Latin America, among 

others. In 2006, the company clinched 

deals to construct IPTV projects for 

Beijing Telecom, Shanghai Telecom, and 

China Netcom. ZTE has over 50 percent 

share of China’s current IPTV product 

solutions market. (ZTE Corporation) 



ZTE India Aims for $ 1 Billion Revenue 

in 

ZTE has announced that it is 

aiming to achieve US $ 1 

Billion revenue in 2008 in India. 

ZTE also claims that India is the most 

strategic market destination for them 

outside China. It plans to further recruit 

more than 500 engineers in 2008. ZTE 

India has also revealed its Contract 

revenue for the year 2007 has already 

crossed $800 million. India has become 

the 2nd largest market for ZTE after 

China. 

ZTE, a principal sponsor and a 

participant at the INDIA TELECOM 

2007 held from December 12th to 

15th at Pragati Maidan Exhibition 

Center, New Delhi, India, showcased 

its full range products and solutions 

under the theme of “Talking to the 

future”. During the show, one can 

witness company’s latest technology 

achievements including wireless 

network solutions, GSM/WCDMA/ 

CDMA2000, WiMAX, Mobile Core 

Network/IMS), F3G Network Solutions 

(Broadband Access, IPTV, Anyservice, 

F3G, etc.), Transmission System and 

Power Supply System. 

In addition to telecoms infrastructure 

solutions, ZTE also showcased its 

full range of mobile phones and data 

cards, including the latest 3G handsets, 

WCDMA/CDMA/GSM handset and 

fixed wireless terminal. 

ZTE Tops Gartner’s Latest Ranking 

ZTE receives another top ranking 

based on a report released by a 

leading international research 

firm. According to the report “Dataquest 

Insight: Mobile Network Infrastructure 

Contracts, Worldwide, 1H07” published 

by Gartner, the world’s leading 

information technology research and 

advisory company, ZTE ranks first in 

terms of the number of mobile network 

contracts signed in the first six months 

of 2007. 

Majority of the deals signed were 

GSM, CDMA and WCDMA contracts. 

ZTE tops the ranking in spite of 

a drop in the number of contracts 

announced in the first half of 2007, 

down 64% compared with the second 

half of 2006, according to the report. 

Despite the decline in overall mobile 

infrastructure revenue globally, ZTE 

still leads the industry by sealing the 

most number in the industry especially 

i n t h e A s i a Pa c i fi c r eg i o n a n d 

emerging markets, which constitute 

33% of all the announced contracts, a 

total of 188 deals. ZTE’s achievement 

is attributed to several significant 

partnerships the company forged 

with leading providers such as China 

Mobile, China Unicom, Reliance, 

Etisalat and Telenor. 

ZTE Expounds Real 

Benefits of IMS 

ZT E i s o n e o f t h e k ey 

s p o n s o r s o f t h e 2 0 0 7 

IMS Global Congress in 

Amsterdam, Netherlands. The 

company’s Director of Product 

Marketing for Western Europe, 

Franck Toupin, presented the 

topic “Using SDP as a Move to 

IMS” on December 6, 2007 to 

provide conference attendees his 

expert views on how to effectively 

transition from focusing on access 

to services and switch to SDP and 

IMS. 

The IMS Global Congress 2007 

is an annual conference hosted 

by IIR Telecoms & Technology 

London, a leading provider of 

strategic telecommunications 

conferences, to showcase how 

service providers worldwide are 

implementing IMS. 

“We are pleased to be one of the 

key global IMS providers to present 

and demonstrate our capability in 

this prestigious annual conference,” 

said Mr. Toupin. “We are one of 

the few vendors in the world with a 

full IMS product portfolio, offering 

3GPP/TISPAN-based solution 

for global mobile operators, fixed 

network operators, and full-service 

operators. Our end-to-end solution 

has been commercially deployed in 

China with the biggest IMS network 

globally while tailoring to the needs 

of both businesses and customers.” 

(ZTE Corporation) 

 



Global Cell Phone Use at 

50 Percent 

November 29, 2007, Tarmo Virki Source: WashingtonPost 

Fast growth in Asian 

wireless markets has since 

helped Korean Samsung 

Electronics and LG Electronics 

as well as China’s ZTE take 

their place among the top six 

cellphone vendors globally." 

Worldwide mobile telephone 

subscriptions reached 3.3 

billion–equivalent to half 

the global population–on November 

29, 2007, 26 years after the first cellular 

network was launched, research firm 

Informa said. 

Since the first Nordic Mobile 

Telephony (NMT) networks were 

switched on in 1981 in Saudi Arabia, 

Sweden and Norway, mobile phones 

have become the consumer electronics 

sector with the largest volume of sales in 

the world. 

“The mobile industry has constantly 

outperformed even the most optimistic 

forecasts for subscriber growth,” Mark 

Newman, head of research at Informa 

said in a statement. 

“For children growing up today the 

issue is not whether they will get a 

mobile phone, it’s a question of when,” 

Newman said. 

In recent years the industry has seen 

surging growth in outskirts of China and 

India, helped by constantly falling phone 

and call prices, with cellphone vendors 

already eyeing inroads into Africa’s 

countryside to keep up the growth. 

The Nordic start for mobile telephony 

was the basis for the success stories of 

Finnish Nokia and Sweden’s Ericsson. 

Fast growth in Asian wireless markets 

has since helped Korean Samsung 

Electronics and LG Electronics as well 

as China’s ZTE take their place among 

the top six cellphone vendors globally. 

But although mobile subscriptions 

have reached the equivalent of 50 

percent of the population, this does 

not mean that half the people in the 

world now have a mobile phone, since 

Informa said 59 countries have mobile 

penetration of over 100 percent–where 

some owners have more than one phone. 

“The economic difference between 

the more mature markets and those in 

developing countries is highlighted 

by the vast differences in operators’ 

revenues per user,” Informa said. 

Hutchison Whampoa’s 3 operation 

has an average revenue per user of just 

over $70 a month in Britain, while 

Hutchison’s Sri Lankan operator counts 

revenues of below $3 per user. 

According to the International 

Programs Center of the U.S. Census 

Bureau, the total population of the world 

reached 6,634,294,193 on Thursday. 

At the same time 2,571,563,279 

people were using GSM, the most widely 

used mobile technology, according to 

global trade body GSM Association. 

T h e s e c o n d l a r g e s t m o b i l e 

technology, CDMA, had 421.4 million 

users at end September. 



October 26, 2007, Robert Clark Source: telecomasia.net 

Mr. Yu Yifang (L) is interviewed by a reporter from telecomasia.net 

Open IPTV Forum Gains Momentum 

with New Top Tier Industry Members 


The Open IPTV Forum announced today that it has accepted new members 

from 9 different countries during October and November this year. Alcatel- 

Lucent, Amino Communications, Deutsche Telekom, Huawei, LG Electronics, 

Telefonica, TeliaSonera, Tilgin, Verimatrix Inc. and ZTE Corporation have all 

joined the effort to develop open, end-to-end specifications for IPTV based on 

existing technologies and open standards. 

Combining the expertise of major consumer electronics manufacturers 

with that of content providers, service providers, network operators and 

infrastructure vendors means that the forum is well placed to deliver on 

its promise–since its creation in March 2007–pan-industry end to end 

specifications for IPTV technologies. 

(www.openiptvforum.org) 

China’s unfolding IPTV market 

is about the TV, not the PC, 

says ZTE. 

Yu Yifang, GM of ZTE Multimedia & 

Terminal Products, says China’s market 

is being driven by the wide availability 

of broadband and of TV sets. 

The service, which he predicts will 

add 350,000 users next year, is targeted at 

rural dwellers and older people who are 

uncomfortable with using a PC keyboard. 

China has approximately 100 million 

broadband users and 350 million 

households with a TV. PC ownership in 

the countryside is under 3%. Up to now, 

China has just 1 million or so IPTV 

users in a handful of “trial” deployments 

around the country. 

But Yu believes that in the wake 

of the 17th party congress, which 

confirmed officials in new posts and set 

policy directions for the next five years, 

IPTV “will develop very fast.” 

ZTE IPTV solutions are running in 

more than ten trials around the country, 

supporting 250,000 users. 

The business challenge is to offer 

a service that is competitive with the 

cable TV, which can cost as little as 

$5 a month. “IPTV needs to offer 

differentiation,” Yu says, listing out 

video conference and communications, 

security surveillance, games, stock 

purchasing and value-added services 

as most likely applications. “We give 

the service providers a development 

kit so they can design a game or other 

application for IPTV,” he said. 

Abroad ZTE is running IPTV trials 

in a dozen emerging markets, including 

Russia, India, Venezuela, Thailand, 

Turkey and South Africa. 

 

January 2008 

ZTE TECHNOLOGIES

Messages from ZTE Top Management 

Mr. He Shiyou, 

General Manager of Mobile 

Phone Division; 

Senior Vice President of ZTE 

2007 is the 20th year anniversary 

of the commercial deployment 

of large-scale cellular mobile 

telecom system in China. O ver 

the past 20 years, China's mobile 

c o m m u n i c a t i o n s i n d u s t r y h a s 

witnessed an unprecedented growth 

rate, attracting great attention from the 

global communications industry. 

ZTE have defined the mobile phone 

as a high-tech product from the very 

beginning of its handset development. 

We commit over 10% of our annual 

revenue to R&D every year, and are 

actively applying for relative intellectual 

property rights (IPR) to protect our 

innovations and achievements. We 

have obtained nearly 1,000 handset 

patents by the end of June 2007. 

The continual investment in R&D has 

brought us great profit. In the first three 

quarters of 2007, we sold 22 million 

handsets across the world, 70% of which 

were shipped to overseas markets. In 

the high-end market, through our great 

R&D strength and outstanding product 

performance, we have earned trust from 

many world-famous telecom operators 

such as Orange (in France), Hutchison, 

British Telecom (BT), Telecom Italia Mobile 

(TIM), Sprint Nextel (in the US), Telefonica, 

Canada’s Telus and Australia’s Telstra. Our 

3G handsets have been exported to over 

20 countries and regions worldwide. 

In the TD-SCDMA field, we have 

launched the world’s first TD-SCDMA/EDGE 

dual-mode dual-standby intelligent phone. 

In May 2007, ZTE and Vodafone (the world's 

largest telecommunication operator) 

jointly announced the availability 

of Ultra Low Cost Handsets (ULCH) 

in the emerging markets of Austria, 

Turkey, South Africa and Egypt. We are 

the biggest winner in India’s CDMA 

handset market, with a market share 

close to 30%, outperforming wellknown 

mobile phone manufacturers 

like Samsung, Motorola and LG. 

To date, we have sold more than 70 

million handsets in over 70 countries 

and regions. According to a recent 

report by CCID Consulting, ZTE’s 

handset sales volume ranks first among 

the Chinese handset vendors, and sixth 

among global handset vendors. We 

are striving to be among the world’s 

leading handset manufacturers. 


As China is speeding up the commercial deployment 

of 3G technologies, 3G services will surely be 

available for ordinary users. This is a historical event 

of great significance that we should look forward to. 

Of course, we do not expect that everything gets ready 

for 3G when it is deployed. Like the development of the 

Internet, 3G needs time to mature and to find new service 

models and revenue generation models. The healthy 

and robust development of 3G in China also needs the 

participation of general users, who will help find the most 

valuable services and applications, and seek for a Chinese 

way to develop 3G. 

ZTE has always embraced innovations in the 3G 

development process. We focus on user experience, 

and have made considerable achievements. Our 3G 

terminals have been widely used in overseas markets. In 

the TD-SCDMA field, we are the leader to drive TD-SCDMA 

industrialization in China and worldwide. Therefore, we 

are full of expectation and confidence in the continuous 

progress and success of 3G development in China. 

Dr. Luo Zhongsheng, 

General Manager of 

TD-SCDMA Mobile Phone Division, 

ZTE Corporation 

Ying Kaner, 

Marketing Director of 

WCDMA Mobile Phone Division, 

ZTE Corporation 

ZTE started the research and development of WCDMA 

mobile phones in 1998. We launched the world’s smallest 

and lightest WCDMA handset in 2004; teamed up with 

Hutchison to supply 3G WCDMA handsets for sale in the UK 

market in 2005; rolled out the world’s first commercial HSDPA 

terminal in 2006; delivered a record of 3 million WCDMA 

handsets worldwide in 2007. 

We have been among the leading Chinese 3G handset 

vendors, and we are constantly trying to rapidly catch up with 

global handset giants. Our operation philosophy is to pursue 

technical innovation and excellent quality. In the handset 

industry, where the strong gets stronger and the weak gets 

weaker, we should keep moving ahead aggressively, making 

our 3G handsets more sophisticated, more fashionable, and 

closer to what consumers require. 

10 


Fan Ping 

ZTE started global strategy as early as 1995, and 

it has become the first and the most successful 

enterprise in China’s Hi-Tech industry to practice 

the “going out” strategy. For decades, the company has 

been actively expanding overseas markets while keeping a 

close watch on domestic markets. Now it is one of the few 

companies in the world with the capability of researching 

and developing all series of terminal products like 3G, 

GSM, CDMA and PHS. 

ZTE has established strategic partnerships with global 

top 10 telecom operators, such as Vodafone, Hutchison, 

France Telecom, British Telecom, Telecom Italia Mobile 

(TIM) and Sprint Nextel. To date, the company has sold 

more than 70 million handsets in over 70 countries and 

regions, including the USA, UK, France, Australia, Italy, 

Canada and India. 

In the domestic market, 

ZTE has captured nearly 

50% market share in the 

T D - S C D M A n e t w o r k 

construction project of 

China Mobile. The company 

has been selected as the sole 

vendor to provide indoor 

signal coverage for all 

Olympic venues in Beijing, 

the host city of the 2008 

Olympic Games. 

ZTE’s overseas handset sales account for more than 70% of 

the total sales volume. Most of the handsets sold overseas 

are customized for the operators. ZTE scored booming sales 

of WCDMA, CDMA and GSM handsets for the first half of 

2007 with the half-year handset shipment exceeding its 

2006 annual target. 

As the ratio of the company’s handset income to its total 

income increased to 25% from 20% in 2006, its handset 

business undoubtedly became the spotlight of the year 

2007. Furthermore, ZTE has made breakthroughs in the 

global high-end market and established cooperation with 

global top 10 telecom operators. 

ZTE has rolled out varieties of commercial 3G handsets 

supporting three major standards–WCDMA, CDMA2000 and 

TD-SCDMA. These 3G handsets have been sold in over 20 

countries and regions. 

In the WCDMA field, ZTE partners with the world’s top 10 

WCDMA operators such as Hutchison and Australia Telecom 

to achieve large-scale sales. The company shipped more 

than 1 million WCDMA handsets in the first half of 2007, 

representing over 100% increase compared to same period 

in 2006. 

In the first three quarters of 2007, ZTE’s handset sales volume 

exceeded 22 million units, ranking first among Chinese 

handset manufacturers. Now, the company is striving to be 

among the world’s leading handset suppliers. 

Up to the third quarter of 2007, ZTE has applied for over 

9300 patents, 90% of which are invention patents. In the 

handset area, ZTE has obtained 871 Chinese patents and 70 

international patents, ranking first among companies with 

the most number of handset patents in China. 

ZTE TECHNOLOGIES January 2008 11

November 2004 

July 2005 

December 2005 

February 2006 

June 2006 

August 2006 

August 2006 

February 2007 

March 2007 

May 2007 

June 2007 

August 2007 

October 2007 

ZTE launched F808, the world’s smallest, lightest, and most compact 3G handset. 

ZTE released U310, the world’s first TD-SCDMA handset for commercial use. U310 is 

also the world’s first TD-SCDMA handset with a network access license issued by China’s 

Ministry of Information Industry (MII). 

ZTE signed a 3G handsets deal with Hutchison to supply 300 thousand WCDMA handsets in 

the UK market. 

ZTE began to participate in the whole process of TD-SCDMA terminal tests, and achieved 

excellent results. ZTE made the top TD-SCDMA handset brand. 

ZTE won the world’s first big order of HSDPA data cards for its 3.6Mbps MF330 data card, 

and has started supplying batches of MF330 cards to major European operators. 

ZTE won a 3G data card supply contract from Telus, a leading telecom operator in Canada. 

ZTE rolled out U350, the world’s first TD-SCDMA/GSM dual-mode dual-standby handset. 

U350 is also the world’s first TD-SCDMA/GSM dual-mode handset with a network access 

license issued by China’s MII. 

ZTE reached an agreement with Telefonica, the Spanish telecom giant, to jointly manufacture 

and distribute 3G WCDMA handsets for the Spanish market. 

ZTE launched F159, the world’s first HSDPA handset with push-to-talk (PTT) functionality. 

ZTE also released the world’s first HSDPA data card with a downlink rate of 2.0 Mbps and an 

uplink rate of 7.2 Mbps. 

ZTE supplied Telecom Italia Mobile, an Italian mobile network operator, with 3G DVB-H 

mobile phones capable of receiving video sequences and television programs. 

ZTE was awarded the prestigious “Red Dot Product Design Award”, the “Oscars” of Industrial 

Design, for its D90 and S900 mobile phones, by the German design association. D900 is also 

the world’s first EV-DO handset with the CDMA Certification Forum (CCF) certification. 

ZTE and Canadian operator Telus announced the exclusive availability of ZTE D90 featuring 

Fastap keypad. ZTE becomes the first wireless phone manufacturer from China to directly 

offer mobile phones for sale in Canada. 

ZTE launched U980, the world’s first TD-SCDMA/EDGE dual-mode intelligent handset. 

12 


Chen Bingqi 

ZTE D90 

Fastap Keypad 

ZTE D90 is a high-end mobile 

phone tailored for overseas markets. 

It features a digital wireless Fastap 

keypad. Different from the full 

QWERTY keyboard design, the Fastap 

keypad is the first keypad in the world 

to integrate a full one-tap alphanumeric 

keypad on a mainstream flip phone. 

The device incorporates a new, 

specially-designed backlight Fastap 

keypad with semi-transparent key 

labels to make the D90 keypad look 

like a standard keypad at first glance, 

creating a sleek appearance–when in 

use, the letter keys instantly light up, 

highlighting the functionality of the 

Fastap keypad. 

With intuitive Fastap “hot keys”, the 

phone enables one-click access to many 

mobile data services. The user is able 

to easily personalize the Fastap “hot 

keys” to their favorite applications. For 

example, users can press and hold “M” 

for Messaging, and “T” for TV. 

Additionally, ZTE D90 integrates Zi 

Corporation’s eZiType word completion 

and correction software, which features 

intelligent, practical word completion, 

along with next word and phrase 

prediction, making message typing even 

quicker and more accurate. 

D e s i g n e d f o r u s e o n E V- D O 

networks, the ZTE D90 can support 

access to an array of advanced voice, 

data and multimedia applications 

including full track music downloads, 

video downloads, location-based 

services and messaging services 

including email, IM, text messaging and 

multimedia messaging. Other features 

include a primary TFT display, an 

exterior LCD, a 1.3 megapixel digital 

camera, MP3/MP4 player, Bluetooth, 

J2ME, microSD expansion, and 

GPSOne support. 

By combining the simple, intuitive 

and innovative Fastap keypad and the 

eZiType word completion engine on 

an elegant and slim flip phone, ZTE 

was awarded the prestigious “Red Dot 

Product Design Award” for its D90 

by the German design association. 

This marks the first time for a Chinese 

mobile phone manufacturer to receive 

that honor. 


ZTE F160 

Total Protection 

ZTE F160 is designed to be waterproof, dustproof and shockproof. The rubber shell 

casing feels quite strong, protecting the phone from water, dust and shock. 

The device can be a reliable companion for long tours and great adventures. Its 

1700mAh large-capacity lithium battery provides a standby time of up to 400 hours, 

and a talk time of up to 6 hours, ensuring smooth communication while on a journey. 

Its Assisted GPS (A-GPS) navigation function helps users find the way; its Push to 

Talk (PTT) function allows it to be used as a walkie-talkie, keeping users in contact 

with their travel companions even in the event of poor network coverage. Its MP3/ 

AAC+/MPEG-4/H.263/H.264 player makes leisure time relaxing through multimedia 

entertainment offerings; its 1.3 megapixel camera enables users to record beautiful 

sceneries and exciting moments, which can be easily shared with others via the 2.0-inch, 

176×220 pixel, 26200 color TFT screen, or by directly sending the files via Bluetooth. 

Its expandable memory gives way to store as many music, video clips, and photos as 

users like. 

Moreover, ZTE F160 supports GSM/GPRS/EDGE and WCDMA/HSDPA network 

standards. In other words, it can be used and enjoyed almost anywhere in the world. 

ZTE F230 operates on frequencies 

o f G S M / G P R S / E D G E 

900/1800/1900MHz and WCDMA/ 

HSDPA 2100MHz, and has a maximum 

data transmission rate of 3.6Mbps. 

The device supports various audio 

and video formats such as MP3, AAC+, 

MPEG-4, H.263, and H.264. A group 

of media player control keys are placed 

on the flip cover panel, allowing users to 

play and view their favorite music and 

video at any time anywhere. 

The phone comes with an array 

of features like a 2.0-inch, 176×220 

pixel, and 262K color TFT screen, 

ZTE F230 and F232 

3.5G Twins 

1.3 megapixel camera, email support, 

USB 2.0 data transmission, Bluetooth, 

microSD expansion, and J2ME (MIDP 

2.0) expansion. 

ZTE F232 has the same 93×47×17 

mm dimension and all the functionalities 

of ZTE F230 except some changes made 

to the appearance. Its music hotkeys 

are not placed on the flip cover panel. 

It uses an exterior OLED screen, which 

is completely hidden if the backlight is 

not lit up, enabling the flip cover to give 

an excellent mirror-like effect, looking 

more stylish. 

ZTE MU318 

Surfing Expert 

ZTE MU318 is the first TD- 

SCDMA USB modem in 

the industry that enables Internet 

connection via a TD-SCDMA 

3G or EDGE 2.5G network. The 

device specially designed for 

business users and network fans is 

small, stylish and portable. Users 

can plug it onto the USB interface 

of a laptop to access the Internet 

anytime and anywhere. 

14 


ZTE MF58 looks like the head of 

a robot at first glance. The cool 

and funny-looking device is actually 

a 3G monitor applicable for home 

surveillance. It enables users to keep a 

watchful eye on their homes, children 

and old parents when they are away. 

The amazing device is the most 

powerful 3G monitor in the world that 

comes with an array of features like 

infrared camera, remote control, black 

and white night view, password control, 

remotely controlled camera lens, 3x 

zoom, and high quality loudspeaker and 

microphone. 

ZTE MF58 

Magic Eye 

ZTE F908 

Television in Mobile 

ZTE F908 is China’s first DVB-H 

mobile TV that supports GSM/ 

GPRS/EDGE 900/1800/1900MHz 

and WCDMA/HSDPA 2100MHz. 

With a high download rate 

of 3.6Mbps or even 7.2Mbps, 

the device allows users to watch 

their favorite digital TV programs 

even while on the move. The TV 

programs can be played continuously 

for 3 hours if earphones are used or 

for 2 hours if the speaker is used. 

The 2.2-inch, 262K color and 

240×320 pixel QVGA screen offers 

a crystal-clear TV picture. By 

slightly rotating the screen to the 

right, users can achieve full screen 

display. Other features of the device 

include 2 megapixel camera, 72 

polyphonic ringtones, MP3/AAC+/ 

MPEG-4/H.263/H.264 multimedia 

player, microSD expansion, USB 

2.0 data transmission, Bluetooth 

(v1.2), J2ME (MIDP 2.0) and email 

support. 

Z 

TE U980 is the first dual-mode dual-standby intelligent handset in the 

industry supporting both TD-SCDMA and EDGE. The device has typical 

TD-SCDMA 3G functions including video phone, Internet access and streaming 

media download, bringing users an enjoyable experience of high-speed data 

services. 

With EDGE connection, the phone offers global roaming capability. 

The phone supports a multitude of applications including mobile office, GPS 

navigation and mobile investment. Although these applications are also available 

on a 2G mobile phone, they can be optimized for maximum performance with 

the help of 3G technologies. For example, as ZTE U980 has a larger-capacity 

mailbox, it enables server synchronization and on-line mail processing without the 

need to download the mail in advance. Moreover, the phone optimizes the video 

phone service by leveraging the company’s achievements on video technologies 

such as improved codec efficiency and image processing algorithms. 

ZTE U980 is expected to be upgraded to support 3.5G HSDPA in 2008, 

allowing users to enjoy a unique and exciting experience of higher-speed data 

service. 

ZTE U980 

TD-SCDMA/EDGE Dual-mode Access 


Fan Ping 

People expect much from 3G since its inception; they pose increasingly 

high requirements on 3G applications. As the 2008 Olympic Games is 

drawing near, China’s 3G networks will soon be put into commercial use. 

People are curious about what tremendous changes the 3G networks 

will bring into their lives. 

Being the 3G leader in China, ZTE took the lead to launch the “3G Pioneering 

Experience Campaign” in Shenzhen, Shanghai, Beijing and Xiamen of China, 

bringing 3G experience to general users for the first time. 

The three-month campaign attracted the attention of more than half a million 

people. Over 50,000 were included in ZTE’s 3G questionnaire survey, and nearly 

3000 net users participated in the 3G discussion. The cross-time and cross-space 3G 

experience campaign has greatly promoted interaction between the 3G industry 

and consumers in China. 

16 


ZTE 3G in Shenzhen 

On September 15, 2007, the 3G 

experience campaign was unveiled 

at the first stop, Shenzhen, one of the 

most economically-developed cities in 

China. Shenzhen is a production base, 

R&D base and transaction base of hightech 

products including computer and 

parts, communication equipment, audio 

visual products and electromechanical 

products. ZTE’s headquarters are located 

in this open and fast-growing city full of 

economic opportunities. 

The experience campaign in Shenzhen 

showed the company’s busy production 

lines, great R&D strength and cuttingedge 

3G technologies to the public. 10 

out of thousands of participants were 

selected to experience 3G mobile life in 

a simple and intuitive manner. 

“I used to see mobile phones with 

video functions on TV and movies, 

which I have always been longing for. 

Today I am very lucky to experience the 

real 3G mobile TV, and I’m impressed 

by the extremely fast download speed 

and crystal-clear picture quality that 

ZTE 3G handsets offer,” said one 

attendee after using a TV-enabled phone. 

“It is a great fun to visit ZTE’s 

handset production and test line. I have 

learned that each keypad, cover shell and 

even camera are assembled by different 

workers in different workshops; every 

handset must pass quality inspection 

before delivery, including drop test, 

shock-proof test, battery test, endurance 

test and so on,” said another attendee at 

the production line. 

ZTE 3G in Shanghai 

ZTE continued its 3G pioneering 

experience campaign at the second 

stop, Shanghai, on September 22. As an 

international metropolitan city, Shanghai 

is modern, fashionable, and full of 

energy and dreams. Having an R&D 

Center in this glamorous city, we believe 

that the fashion-led Shanghai can bring 

ZTE designers more inspiration. 

Different from the production and 

test line tour in Shenzhen, the activity in 

Shanghai included a visit to the handset 

ID design and open TD-SCDMA Lab. 

Attendees were very excited to see a 

veritable sea of amazing 3G handsets 

with attractive, stylish and creative 

designs such as the one awarded with the 

“Red Dot Award”; conceptual handsets 

as small as a USB flash disk; business 

handsets with a projector function; ultrathin 

handsets; gaming handsets; camera 

handsets; music handsets; candybar 

handsets; touch-screen handsets; 

f u l l - k e y p a d 

handsets and 

more. 

In addition 

to the varieties 

of 3G handset 

d e s i g n s , 

attendees were 

also fascinated 

by a wide array 

o f i n t u i t ive , 

powerful, entertaining and robust 3G 

services and deeply impressed by 

the company’s TD-SCDMA R&D 

capability. 


ZTE 3G in 

Beijing 

On October 17, 2007, the 3G pioneering experience 

campaign arrived at the third stop, Beijing, the 

capital of China and the nation's political, economical, 

and cultural center. The upcoming 2008 Olympic Games 

will bring more business opportunities and cultural 

exchanges with other countries. It is reported that China 

will provide 3G services during the Games, which means 

new challenges and opportunities for telecom operators 

and vendors. 

The campaign in Beijing offered attendees a chance to 

have a first-hand experience of 3G applications including 

videophone, mobile TV, high-speed data download and 

high-speed Internet access. An addition to this exciting 

event was the launch of two new types of 3G terminals: 

the industry-leading TD-SCDMA/EDGE dual-mode 

intelligent phone U980 and the industry’s first TD- 

SCDMA USB data card MU318. 

A girl coming from Tianjin city said with excitement, “I 

particularly like the ZTE U980 for its elegant appearance, 

exquisite design and amazing functionalities. I can use 

it to have a face-to-face communication with far away 

friends and relatives.” 

Another participant commented, “3G mobile phones 

will have a promising market prospect in China. I believe 

mobile TV will be one of the most desirable services in 

the 2008 Beijing Olympics. I look forward to that day 

when the Olympic Games are in our pocket.” 

ZTE 3G in 

Xiamen 

The 3G pioneering experience campaign reached the 

last stop, Xiamen, on November 3. Xiamen, located 

at the southeast coastland of China, is a port city with a 

unique local culture and beautiful sceneries. Moreover, 

Xiamen is among the first cities in China to try the TD- 

SCDMA network. 

As the 3G network trial covered almost the whole 

city, the campaign was launched in the beautiful campus 

of Xiamen University. The outdoor experience began 

with a game. Attendees were divided into several 

groups, and the handsets in each group were embedded 

with four different pictures of Xiamen University. The 

winner would be the first group to find the four places. 

All participants in the game used ZTE’s 3G handsets for 

video calling, and experienced 3G for the first time. The 

game gives them a good chance to touch the real “body” 

of 3G services. 

18 


Fengxi Yu 

Introduction 

IP T V, a s y s t e m b a s e d o n 

broadband networks, offers 

colorful multimedia video 

s e r v i c e s t o d i ff e r e n t u s e r 

terminals such as TV, PC and mobile 

phones. It is not only an efficient 

platform for the telecom operators 

to deliver triple-play services (i.e., 

telecom, cable TV and Internet), but 

it also gives the operators the best 

opportunity to transform themselves 

into comprehensive information 

providers. As a result, it has a 

promising prospect. The types of 

services the IPTV system offers 

are diverse, and they include video, 

telecommunication, information and 

entertainment. As to the forms of the 

services, there are live broadcast, video 

on demand (VOD), time-shifted TV, 

record & broadcast, karaoke, video 

communication, information service, 

finance and securities, interactive TV, 

e-commerce, distant learning, and so 

much more. These new, broadbandbased 

entertainment value-added 

services have a great number of 

prospective users. 

The development of IPTV system 

is closely tied to network technologies, 

including video coding/decoding, digital 


ights management (DRM), video 

distribution network (VDN), electronic 

program guide (EPG), stream media, 

and multicast. A complete end-toend 

IPTV solution is made up of the 

headend encoding system, the content/ 

service operation and support system, 

the terminal system (mainly set-top 

box, or STB), the distributed streaming 

service system, the content processing 

system, DRM, the comprehensive 

service management platform, EPG 

system, the value-added system and the 

broadband network equipment. So far, 

it is one of the solutions that cover the 

widest range of contents. 

ZTE AVS-based IPTV Solution 

The coding/decoding technologies 

used in IPTV are mainly Moving 

Picture Experts Group (MPEG)-2, 

MPEG-4, H.264 and AVS (Audio Video 

Coding Standard). Among them, AVS 

is a homegrown intellectual property 

in China, and has become a standard 

of International Standard Organization 

(ISO). The successful application of 

AVS-based IPTV solution is no doubt 

of great help to promote the healthy 

development of IPTV industry in China. 

Headend encoding system: AVS 

encoder 

The devices in the headend system 

are mainly AVS encoders, which falls 

into two kinds: real-time encoder and 

offline encoder. 

Real-time encoder: It encodes the 

video signals of the live-broadcast 

channel into AVS coding format in 

real time, and converts them into 

digital audio/video IP packets before 

transmitting them to the user for play. In 

current IPTV operation mode in China, 

the AVS program sources are directly 

provided by the content providers (e.g., 

China Central Television, Shanghai 

Media Group). 

Offline encoder: It encodes VOD 

Figure 1 AVS-based IPTV Solution 

programs into AVS format in advance, 

and stores them into the VOD server for 

the user to play as required. 

Service system 

The service system, consisting of 

content operation platform, service 

operation platform and VDN distribution 

p l a t f o r m , p u b l i s h e s , m a n a g e s , 

categorizes and distributes the AVScoded 

contents. 

The content and service operation 

platforms are basically for the AVS 

content providers and the IPTV service 

operators. They provide interfaces 

for IPTV users, content and services; 

manage EPG; and perform functions like 

authentication, authorization and billing. 

By interconnecting with Operations 

Support System/Business Support 

System (OSS/BSS), they control the 

operation of IPTV services. 

The AVS-based IPTV service 

operation platform is divided into two 

parts. 

T h e f i r s t o n e p r o v i d e s t h e 

following modules or functions: CP/ 

SP access interface, user equipment 

management, content management, 

service development and management, 

interconnection with OSS/BSS. With 

the CP/SP access interface, the operator 

can easily introduce and manage several 

AVS content providers. The content 

management module provides content 

source-related information to achieve a 

unified management of the contents. The 

service development and management 

module provides an interface for 

developing and introducing multiple 

services at any time and at any place. 

The second part provides interfaces for 

accessing the service operation systems of 

several manufacturers, allowing the IPTV 

operator to introduce and effectively 

manage other system solution providers. 

Service network: VDN 

Unlike other data services, the 

IPTV system occupies more network 

20 


andwidth, demands a higher network 

quality, and uses different sorts of 

stream media files. To ensure the service 

quality and offer users with better 

experience, a good solution currently 

is to widely use VDN stream media 

file distribution technology. The basic 

principle of the service network (i.e., 

VDN in the VAS-based IPTV solution) 

is as follows: it transmits service 

contents such as video/audio programs 

to the edge nodes with VDN technology 

to serve the users nearby; thus, the 

service quality is efficiently improved 

and the transmission pressure on the 

backbone network is reduced. Moreover, 

by flexibly configuring the video servers 

at the network edges, the network can 

be easily shrunk or expanded. The core 

technology used in the service network 

is the content and service distribution 

mechanism. The VDN service network 

makes the most important part of 

the IPTV solution, and it consists of 

distributed streaming system and service 

distribution and dispatch strategies. 

The distributed streaming system is 

further divided into two subsystems: 

content distribution and media service. 

■ The functions of the content 

distribution subsystem include 

AVS content management and 

buffering, service management, 

billing, resource reporting, alarm 

and configuration. Connected to 

the service system, the subsystem 

receives the configuration instruction 

from the service system and 

distributes AVS audio/video contents 

accordingly. 

■ The media service subsystem 

provides the AVS-coded media 

services such as VOD, live broadcast, 

carousel, and time-shifted TV. 

Bearer network 

The bearer network is always 

constructed on the basis of a broadband 

network (e.g., backbone network, 

convergence network and access 

network). If the AVS-based IPTV 

solution is to offer services on a large 

scale, the following have to be taken into 

account to enable the bearer network to 

support IPTV services: 

■ Quality of Service (QoS) guarantee: 

low packet loss rate, short latency 

and small jitter; prioritization of 

different services; enough bandwidth 

■ Multicast capacity: compatibility 

with multicast protocol, multicast 

control management; quick switch 

of channels; forwarding capability 

■ Security: content sources’ validity 

and transmission security; user and 

service provider management; video 

service isolation 

■ Reliability: reliable connection to 

the program source, and network 

reliability 

Home network 

T h e h o m e n e t w o r k p r ov i d e s 

comprehensive information services, 

e n a b l i n g m o d e r n f a m i l i e s t o 

communicate in various ways. With 

such value-added services as voice, 

broadband and data bound, the home 

networking scheme can meet the 

demands of modern families for voice, 

Internet and video services. 

In the IPTV solution, the main 

equipment for the home network is the 

STB. The STB is a terminal installed in 

the user’s home. It accesses the service 

network via ADSL or LAN line and 

connects the TV at the user end. With 

standardized universal input/output 

interfaces, STB functions to forward the 

information from both the network and 

the user, and convert the media format 

for playing in the display screen. 

Conclusion 

Recently, owing to its technically 

advanced solution and powerful 

service capability, ZTE defeated 

many competitors from all over the 

world, and solely won the world’s 

first AVS-IPTV commercial network 

development bid, the Dalian IPTV 

project. This success witnessed the 

strength of ZTE in multimedia IPTV 

market, marking ZTE’s continuous 

leading position in AVS-based network 

video and communication solution, 

following MPEG-4 and H.264. The 

commercialization of Dalian IPTV 

project will greatly promote the 

industrialization of AVS standard, and it 

is a victory for the Chinese information 

technology industry in breaking the 

monopoly of foreign technologies and 

sticking to the policy of “independent 

innovation”. 


Weijun Lee 

22 


The Promises of IPTV 

Despite all the promises of 

Internet Protocol Television 

(IPTV), an IPTV operator 

cannot really compete 

with well-established cable TV (CATV) 

and satellite TV providers if its IPTV 

solution is only designed, deployed, and 

perceived as another way to deliver the 

same traditional broadcast TV program 

with the same revenue streams and 

business models. 

In reality, IPTV has evolved from 

a simple broadband alternative to 

CATV in its early deployment to a 

convergent service platform that enables 

multiple revenue streams, including 

subscription, premium contents, targeted 

advertisement, and value-added services 

(e.g., televoting, games, video telephony, 

distant learning). 

When properly designed and 

deployed, IPTV can become the killer 

application for a telecom carrier. Imagine 

the following scenario: When an IPTV 

viewer notices some fancy-styled 

dresses or shoes worn by the leading 

actresses in the movie she is watching, 

she can easily pause the scene, pop up a 

window to show related information, find 

the price and comments left by other 

viewers in a cyber community, order the 

merchandises over the underlying IPTV 

service platform, and have it delivered to 

her home directly. How convenient it is! 

She does not even need to take out her 

credit card, make any phone call, or type 

in her home address, since her IPTV 

system already “knows” her billing data 

and delivery address! 

The Evolution History of IPTV 

IPTV has evolved through the 

following phases since its inception: 

Barebone IPTV, Enriched IPTV, 

Interactive IPTV, Personalized IPTV, 

and Comprehensive IPTV, as shown in 

Figure 1. 

Figure 1 IPTV evolution & revenue streams 

Barebone IPTV 

I P T V was i n i t s “ b a r e b o n e ” 

format (i.e., delivering broadcast TV 

programme over DSL or fiber) when it 

was first introduced several years ago 

by a few European carriers to compete 

against the invasion of triple-play 

offers (i.e., voice-over-IP, cable TV, and 

broadband Internet) by cable operators. 

By simply including the barebone 

IPTV service inside its own triple-play 

bundles, telcos can compete equally 

with cable operators. 

However, a barebone IPTV solution 

is a pure defensive strategy, and does 

not utilize the full potentials of the IPTV 

technology (e.g. interactivity, service 

integration). It brings neither new 

experience to end users nor additional 

revenue streams to carriers. 

Enriched IPTV 

Since “content is the king”, an IPTV 

operator may choose to offer premium 

contents to enrich its IPTV solution. 

The premium contents may be 

offered as live TV channels or Video-on- 

Demand (VOD). Live channels are most 

suitable for popular contents like sports, 

new releases. VOD is good for long-tail 

contents that cater to each small group 

with special tastes. 

The premium contents may be 

exclusive or non-exclusive. For example, 

PCCW in Hong Kong chooses to buy 

the long-term exclusive rights of certain 

premium channels. On the other hand, 

Verizon believes the hefty price of 

exclusive broadcast rights is unjustifiable 

and its FiOS service can fare well on its 

ultra-high bandwidth and video quality. 

In some cases (e.g., IPTV over 

WiMAX links that support less 

bandwidth than fiber or xDSL access 

lines), “Enriched TV” may be offered 

via some hybrid-TV solutions that 


■ TVOD stores all the programs in all the TV channels 

without being limited by the number of tuners (one or 

two) inside the STB or by the size of the local hard drive 

attached to a PVR. 

PVR and NPVR allow a subscriber to store the recorded 

content as long as he/she wants. Of course, it is possible for a 

viewer to combine TVOD with PVR or NPVR. 

Thanks to the “enhanced values” perceived by subscribers, 

IPTV service can be sold at a higher fee than competing 

services such as cable TV and satellite TV. 

consist of traditional broadcast TV channels (from cable TV 

or satellite) and premium on-demand contents (over IPTV 

channels). 

The “Enriched IPTV” solution has low technical 

complexity and is easy to implement, but it requires some 

business investment in premium contents. 

Interactive IPTV 

“Interactive IPTV” may be called the “true” IPTV solution 

because it is based on IPTV’s unique strengths: unicast and 

multicast, the two IP packet delivery methods not supported 

by the cable or satellite networks today. 

An “Interactive IPTV” solution unleashes a whole range of 

new features, for example, Time-Shifted TV (pause, rewind, 

fast forward), TV-on-Demand (TVOD), and Network-based 

Personal Video Records (NPVR). 

While some high-end set-top-boxes (STB) for cable TV or 

satellite TV viewers already adopt Personal Video Recorder 

(PVR) feature to record live TV or scheduled programs into 

local hard drives, the IPTV-enabled NPVR feature allows 

every set-top box to offer similar functions by storing the 

designated content on the network side. This enables a 

significant reduction in capital expenditure (CAPEX). 

The TV-on-Demand feature allows a user to watch any 

TV program that has been broadcasted in the last few days in 

his/her subscribed IPTV service package. Many users love the 

TVOD feature more than PVR and NPVR features for two 

unique reasons: 

■ TVOD requires no programming effort by the end user. 

Personalized IPTV 

Sharing the same root with Internet, IPTV has native 

support for various Web services, including intelligent 

personalization of subscriber profiles and usage habits. 

An IPTV viewer can easily create one or more personalized 

TV channels that contain his or her favorite programs chosen 

from multiple broadcast channels. 

The IPTV system can intelligently and statistically learn the 

usage habit of a subscriber, and make smart recommendations 

about relevant premium contents and merchandises. 

Some subscribers prefer privacy protection over the 

convenience of personalized advertisement; therefore the 

IPTV system must allow each subscriber to select his or her 

preferred level of privacy protection. 

Comprehensive IPTV 

“Comprehensive IPTV” represents the future of IPTV, 

i.e., making IPTV a convergent service platform that hosts a 

variety of value-added services including information portals, 

games, video telephony, video conferencing, TV-commerce, 

photo/video hosting, distant learning, and karaoke, as shown 

in Figure 2. 

Figure 2 A variety of value-added services 

24 


IPTV-based services will eventually become an 

indispensable part of our everyday life, and any telco that takes 

an early start towards this vision will ride this trend and enjoy 

competitive advantages. 

IPTV Brings Multiple Revenue Streams 

With versatile support for enriched contents, interactive user 

experiences, subscriber personalization, and comprehensive 

value-added services, IPTV brings multiple revenue streams to 

telcos. 

Media Group, its IPTV service significantly increases the 

viewing time between 10am and 6pm, as shown in Figure 

4. One of the possible reasons is believed to be the TV-on- 

Demand feature that allows housewives watch their preferred 

primetime TV programs during other times, e.g. day time. 

The increased viewing time transforms those traditionally 

less-attractive timeslots into premium spots for advertisement 

insertion. 

Subscription 

According to market date, the end users may be willing to 

pay a higher subscription fee for an IPTV service package that 

is more attractive and easier to use than the equivalent cable 

TV or satellite TV service packages. 

IPTV services may be offered in several tiers (packages) to 

cater different catergories of subscribers. Each IPTV service 

package is a mix of broadcast TV channels, premium contents, 

and certain types and amounts of value-added services. 

Premium contents 

With Time-Shifting TV feature and TV-on-Demand feature, 

IPTV may change the viewing habits of traditional TV 

viewers. 

According to a recent analysis by Shanghai Media Group 

– the IPTV operator in Shanghai, China – IPTV customers 

are more interested in programs such as movies, kids shows, 

reality shows (law), and sports (as shown in Figure 3) 

that they would have missed if without TSTV and TVOD 

features. 

Figure 4 IPTV adds viewing time 

Everyone dislikes irrelevant advertisements but seeks/ 

accepts relevant information. While the traditional broadcastbased 

advertisement model is impaired by the ad-skipping 

function in PVR and NPVR, the personalized intelligent 

advertisement model enabled by IPTV actually improves the 

relevance and acceptance rate of each advertisement. 

Value-added services 

IPTV is an intuitive graphical interface for many valueadded 

services. For example, televoting is a popular service 

for mass-competition TV programs such as “Dancing 

with Stars”. With IPTV, a viewer can vote with the remote 

control via an intuitive and reliable graphical interface, and 

can also check the statistics immediately afterwards. After 

the Dance Sport Final Competition in China in 2006, the 20 

million cable TV viewers cast only 40,000 votes via phone 

calls and short messages, but the 100,000 IPTV viewers 

cast about 5000 votes: a 25 times improvement in the 

voting rate! 

Figure 3 IPTV enables premium content 

Intelligent advertisements 

According to another related analysis by Shanghai 

Looking Forward 

IPTV seems the most promising killer application to bring 

telcos more and more revenue streams and edge out competitors 

if, and only if, it is properly evolved. 


ZTE’s Feature-rich EyeWill Services 

Xie Yubin 

Internet Protocol Television 

(IPTV), designed for live TV 

running over the Internet, has 

seen rapid growth in recent 

years. It utilizes the existing broadband 

architecture to deliver interactive digital 

television and entertainment services 

to every user. IPTV introduces a new 

medium for video creation and delivery, 

and becomes a compelling and highly 

competitive platform against traditional 

cable TV. It is generally agreed that 

IPTV will be the trend for the future of 

television broadcasts. 

As a leading player in the IPTV 

market, ZTE provides end-to-end 

IPTV solution under the brand name of 

EyeWill. To date, ZTE has conducted 

the majority of IPTV trials in China, 

and has deployed IPTV systems in 

Europe, Asia Pacific and Latin America, 

delivering a wealth of IPTV experience 

for nearly 420,000 subscribers. 

Service Introduction 

IPTV provides two-way interactive 

communication, allowing subscribers 

to watch television while using the 

telephone line and broadband internet 

connection. Imagine using a single 

device to watch television, browse the 

Web and make video telephone calls. 

This looks like the science fiction movie, 

but this capability is now available on 

your TV. There are numerous services 

that can be offered across an IPTV 

network. All these services are built 

from the power of the Internet to provide 

better throughput and superior quality. 

ZTE’s EyeWill total solution offers 

not only basic IPTV services but also 

feature-rich value-added services. 

ZTE EyeWill Basic Services 

■ Live TV 

Live TV, similar to cable TV, can 

be offered in both standard definition 

(SD) and high definition (HD) formats, 

supporting resolution of 480i and 

1080i respectively. An IPTV user can 

select flexible channel packages, such 

as monthly flat rate and pay per view 

(PPV). 

■ VoD 

Video on Demand (VoD) allows 

users to receive contents in the format 

of “Unicast Video Streaming” on a 

real-time basis. Users can have the best 

possible choice from a library of stored 

video content including TV shows, 

movies, and short clips. 

■ NPVR 

Networked Personal Video Recorder 

(NPVR) allows a user to record their 

favorite programs and play them back 

at their convenience. The live-channel 

programs are stored into a networked 

VoD servers or Set Top Box (STB) 

beforehand and viewed by users 

whenever they want. 

■ TSTV 

Time-Shift Television (TSTV) is a 

combination of live TV and on-demand 

broadcasting. When watching livechannel 

programs, users can implement 

26 


a desired trick play function such as 

pause, fast forward and fast rewind. 

■ TVoD 

TV on Demand (TvoD) is similar 

to TSTV, but it allows users to further 

rewind the content. For example, TVoD 

user may replay the content recorded 

in the VoD server several days ago, but 

TSTV users can only replay the content 

several hours ago. 

■ NVoD 

Near Video on Demand (NVoD) is a 

pay-per-view service that allows users to 

determine the starting time of a chosen 

program. It offers trick-mode viewing, 

enabling users to fast forward or rewind 

the content by time windows. 

■ MOD 

Music On demand (MOD) offers 

access to a vast library of music via 

the network. Users can enjoy the latest 

music and pop songs. 

ZTE EyeWill Value-added Services 

■ Karaoke 

■ Tele-voting & Tele-contest 

Tele-voting & tele-contest based on 

interactive telecommunications have 

distinct advantages over conventional 

postal or SMS ballots. Users may 

participate in tele-voting and live 

guessing games through remote control. 

The interactive function may be easily 

extended to gambling, interactive 

advertisement and on-the-spot friend 

hunting, plus a whole lot more. 

■ Interactive gaming 

ZTE’s EyeWill system offers a variety 

of interactive games that can be accessed 

by demand. Its open architecture allows 

operators to cooperate with professional 

third-party games providers to enrich the 

gaming service. Enhancements to this 

service include multiplayer capability 

and messaging during game play. 

■ Instant messaging 

■ Video communication 

Video communication allows faceto-face 

conversation across the network. 

It supports P2P video communication, 

multi-point video communication and 

interoperability with fixed and mobile 

terminals such as STB, PC and 3G 

terminals. 

■ Video surveillance 

ZTE EyeWill is an integrated solution 

simultaneously supporting global eyes 

and IPTV on the same unified platform. 

Typical applications of video surveillance 

include enterprise surveillance, city 

surveillance, public surveillance, family 

surveillance and so on. 

■ Live video conference 

ZTE’s EyeWill enables multi-party 

video conferencing. The live conference 

content is sent as a channel of program 

data to the encoder and then to the 

subscribers via the Video Distribution 

Network (VDN) platform. 

■ Subscriber self care 

Karaoke, a brand-new value-added 

service delivered over ZTE’s EyeWill 

IPTV system, allows karaoke lovers to 

sing along with the recorded soundtracks 

of their favorite songs. 

■ Information portal 

Information portal allows customers 

to access a flexible knowledge base via 

TV. The information offerings include 

traffic, weather forecasts, food, health 

care, real estates, TV yellow pages, 

entertainment, and a lot more. 

Instant messaging (IM) enjoys great 

popularity in PCs and handsets. Users 

can send short messages through ZTE’s 

EyeWill platform to another IPTV user 

or a mobile user. The infrared keyboard is 

an optional choice for sending messages. 

ZTE’s EyeWill solution provides 

subscribers with self care function, 

allowing users to preview their bills 

and order lists; they can also check 

their account usage, as well as get help 

information. 


Successful IPTV Deployment in 

Jiangsu Telecom 

Xie Yubin 

Based on ZTE’s 

unified IPTV platform, 

Jiangsu telecom can 

provide varieties of 

services ranging from 

basic audio/video 

services to value-added 

multimedia services, 

enabling a favorable 

combination of IPTV 

services, universal 

communication 

services and video 

surveillance services 

on one platform. " 

Background 

Jiangsu province, with the Yellow 

Sea to its east, is located along 

the eastern coast of China. The 

total land area of the province 

is 102,600 square km. Today Jiangsu 

has become one of the most developed 

provinces in China and is seen as one 

of the most important strategic telecom 

markets in the country. Jiangsu Telecom, 

a subsidiary of publicly-listed China 

Telecom, the largest fixed-line telecom 

operator in China, has become a major 

player in broadband services, serving 

more than 3.3 million broadband 

subscribers. The booming broadband 

Internet business is giving a boost to 

the Internet Protocol Television (IPTV) 

market in China. As IPTV promises a 

new revenue stream, fixed-line operators 

have been aggressively building trial 

IPTV networks since 2005. The number 

of IPTV subscribers in China increased 

to a record high of 840,000 by the end 

of the third quarter of 2007. 

Project Profile 

The IPTV project of Jiangsu Telecom 

is a key part of China Telecom’s IPTV 

trials. In Nov 2005, ZTE won the IPTV 

project in competition with most of 

the major international IPTV system 

providers like UTStarcom, Alcatel and 

Bell. Under the terms of the agreement, 

ZTE is the sole provider of IPTV system 

for Jiangsu Telecom. 

28 


The phase 1 project covers most 

developed cities in Jiangsu province 

including Nanjing, Suzhou, Wuxi, 

Yangzhou Taizhou and Yancheng, with 

a capacity of 100,000 subscribers. 

In the first half of 2007, the project 

was expanded to cover 13 cities of 

the province, with a newly-increased 

capacity of 42,000 lines. 

ZTE’s IPTV system has distinct 

advantages in service operation. It helps 

Jiangsu Telecom deliver basic IPTV 

services and feature-rich value-added 

services to attract more subscribers, 

such as video surveillance (also known 

as “Global Eye”), video conference, 

video communication, on-line or off-line 

gaming and karaoke. All of the services 

are based on the unified Operating 

Support Subsystem (OSS) platform and 

support IMS architecture. A total of 16 

live TV channels with time-shift TV 

function are available to subscribers. It is 

worthy of mention that Jiangsu Telecom 

is the first to deploy “Global Eye” and 

video communication in Chinese IPTV 

business. 

Project Highlights 

■ Video communication 

Many operators are driving towards 

offering IPTV services to battle the 

decline in traditional wireline voice 

services. Jiangsu Telecom leverages its 

broadband network advantages to deliver 

video communication services, greatly 

enhancing its competitiveness and 

chances of success in the marketplace. 

Video communication services can be 

offered in packages, and they come with 

features like P2P video communication, 

multi-point video communication and 

interoperability with fixed and mobile 

terminals such as Set-Top Box (STB), 

PC, and 3G terminals. 

■ Video surveillance 

ZTE’s end-to-end IPTV solution 

(also branded as “EyeWill”) is 

an integrated solution that can 

s i m u l t a n e o u s l y s u p p o r t v i d e o 

surveillance and other IPTV services on 

the same unified platform. The typical 

applications of video surveillance 

include enterprise surveillance, security 

city, public surveillance, family 

surveillance and so on. 

■ Live video conference 

Jiangsu IPTV project introduces 

live conference content as a channel of 

program data to be sent to the encoder. 

After encoding, the live conference is 

transmitted to the Video Distribution 

Network (VDN) platform and then to 

the subscribers. 

Future Prospects 

After analyzing the deployment of 

IPTV services at home and abroad, 

features of multimedia services as well 

as the local telecom market, ZTE and 

Jiangsu Telecom has jointly worked out 

three strategies for the marketing and 

promotion of IPTV businesses. 

Firstly, in addition to basic video 

programs, Jiangsu telecom offers 

interactive TV services such as televoting, 

karaoke, TV shopping and 

lottery, through the remote control and 

one-key operation. 

S e c o n d l y , Z T E p r o v i d e s 

Jiangsu Telecom with audio/video 

communication services based on 

ordinary TV terminals, and uses 

its softswitch network to enable 

interoperability between TV terminals 

and fixed-line terminals, laying a solid 

foundation for the future interoperability 

of 3G handset terminals. 

Thirdly, Jiangsu Telecom takes full 

advantage of TV and STB to introduce 

video surveillance services. The IPTV 

system platform, on which video 

surveillance services are delivered, needs 

to provide powerful unified services 

operation capability and subsystems 

management capability. Considering 

the features of large capacity, wide 

coverage, flexible dispatch and easy 

management, streaming media services 

can be delivered to a wide range of user 

groups including industry users and 

home users. 

Based on ZTE’s unified IPTV 

platform, Jiangsu telecom can provide 

varieties of services ranging from basic 

audio/video services to value-added 

multimedia services, enabling a favorable 

combination of IPTV services, universal 

communication services and video 

surveillance services on one platform. 

Jiangsu telecom keeps forging ahead 

aggressively in deploying IPTV business 

in China, bringing new prospects to fixed 

line operators. 


30

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