Huawei Technologies

Size: px

Start display at page:

Download "Huawei Technologies"

Christian Shaw
6 years ago
Views:

1 Huawei Technologies

2 Winners Nextel winning both PTT and 3G broadband It can be challenging for telecom operators struggling to keep pace with fast growth in Peru. This is one reason why the industry is moving to 3G to meet the growing communication needs in this ancient cultural center and Nextel Peru is poised to tap the vast potential of 3G and mobile broadband services. By Yi Lifeng Editor: Xue Hua 45

Steeped in Incan tradition and set against the backdrop of the spectacular Andes, Peru is a major South American tourist destination.

This is one reason why the industry is moving to 3G to meet the growing communication needs in this ancient cultural center and Nextel Peru is poised to tap the vast potential of 3G and mobile

Though its market share is not high, Nextel Peru boasts the highest ARPU (an average of 30 USD in 2008) and the lowest churn rate (an average of 1.8% in 2008) in the Peruvian mobile market.

3 Steeped in Incan tradition and set against the backdrop of the spectacular Andes, Peru is a major South American tourist destination. With wide open spaces, big mountains and modern metropolitan areas, it can be challenging for telecom operators struggling to keep pace with fast growth. This is one reason why the industry is moving to 3G to meet the growing communication needs in this ancient cultural center and Nextel Peru is poised to tap the vast potential of 3G and mobile broadband services. PTT: once a secret weapon Nextel is a brand of NII Holdings and operates five subnets in Latin America. Nextel Peru is the third largest mobile operator in Peru. Though its market share is not high, Nextel Peru boasts the highest ARPU (an average of 30 USD in 2008) and the lowest churn rate (an average of 1.8% in 2008) in the Peruvian mobile market. Their major group service push to talk (PTT) also has helped boost the ARPU and reduce the churn rate. Nextel Peru s PTT service is provided through the integrated digital enhanced network (iden), featuring fast access and high service quality. If users like a certain service, they can invite relatives and friends to join the group. Once these group users have formed habits and patterns, they are less likely to be lured away by other operators and separated from their groups, significantly reducing churn rates. PTT service is especially suited for group communications among government agencies and public utilities. These high-end subscribers have given Nextel Peru an ARPU 25% higher than its rivals. Urge to develop 3G services The Latin American telecom market has seen explosive growth. Operators in Peru have launched 3G services to entice subscribers and cater to the affluent tourist market. Mobile operators like Claro and Movistar have rolled out 3G mobile broadband services, attracting a large number of subscribers and allowing the introduction of the highly successful iphone. In contrast, limited by iden technology, Nextel Peru found it hard to compete in diversified multimedia data services and smart phones, since they could provide only traditional voice service (bi-directional wireless intercommunication) and pure SMS service. Nextel Peru initiated major strategic transformation in First, Nextel Peru hoped to maintain its existing 46

4 Winners Huawei partnered with Qualcomm to develop a customized PTT over WCDMA solution which made it possible for PTT services to be laid over the WCDMA network, enabling users to enjoy 3G mobile services while using PTT wireless service. advantages in the PTT service, especially its leading position in the public security and service areas. At the same time they aimed to vigorously develop value-added services to enrich the service experience. For example, the PTT service based on mobile networks was added with feature services such as status presence (enabling one subscriber to know when another is online) and point-tomultipoint group calls. Second, for the tourist sector, Nextel Peru planned to develop mobile broadband services to attract roaming subscribers who could bring a high ARPU and sharpen their competitive edge. Nextel Peru realized that it had to break through constraints of the original iden network and quickly construct a 3G network. In 2008, with the support of telecom regulator MTC, Nextel obtained an operating license for the 1900MHz band, and took the subnet in Peru as the first stop in transforming the iden network into the 3G network. Future-oriented strategic planning After being licensed the 1900MHz band, Nextel Peru conducted an analysis of the 3G systems that would be conducive for better service development and have more appeal to subscribers. After a comprehensive comparison of CDMA and WCDMA in terms of terminals, marketing costs, and network evolution, Nextel Peru finally chose WCDMA for the 3G network. Constructing a new WCDMA network in an economical and effective mode was a big challenge. At the onset of network construction, Nextel Peru explicitly pointed out that this was a service-driven network, requiring each layer of the network to accommodate the future needs of end users for high bandwidth and high rates. Nextel Peru planned on it taking five years to construct a WCDMA network with a total of over 600 sites covering every corner of the country. The first phase would cover the capital city, Lima and the second and third largest cities in Peru. After considering Huawei s impressive track record for successful 3G implementation, Nextel Peru chose Huawei as its partner for 3G network construction. Build end-to-end advantages Though the traditional WCDMA network could provide high-speed mobile broadband data services like HSPA, there was a blank spot for PTT applications. To continuously provide high quality PTT services, meet the consumption habits of end users, reduce the churn rate, and smoothly realize network transformation, Huawei partnered with Qualcomm to develop a customized PTT over 47

5 WCDMA solution. This solution made it possible for PTT services to be laid over the WCDMA network, enabling end users to enjoy 3G mobile broadband data services while using PTT wireless service. Nextel Peru and Huawei conducted a thorough analysis of the projected mobile market in Peru for the next three years, and based on the forecast of subscriber scales and business models, mapped out a detailed plan for each layer of the network. Huawei s end-to-end 3G solution for the entire network will not only help Nextel Peru resolve the node complexity problem, but also simplify the interworking of equipment from multiple vendors, and realize quick, low cost network construction. The best service quality is ensured through an endto-end QoS guarantee. Huawei s industry-leading 3G solution will significantly enhance Nextel Peru s network capacity. After the realization of VoIP over HSPA, network capacity will be 1.5 times higher than a traditional WCDMA network. By adopting Huawei s latest ATCA-based core network, Nextel Peru will gain even higher capacity and reliability and realize a CAPEX reduction of at least 30%. At the transport layer, Nextel Peru adopts the world s first IP-based packet microwave combined with the wireless PTN bearer network, which can realize IP transport of the entire network and will help Nextel Peru to save an estimated 35% of CAPEX and 25% of OPEX. Representing the largest chunk of investment, wireless access is always at the core of Nextel Peru s network planning. Site leasing is extremely tough, especially in densely-populated central business districts. By sufficiently utilizing the existing network resources and based on the flexibility, small size, and easy installation of Huawei s distributed base stations, Nextel Peru constructs its WCDMA network at the same sites of the existing iden network and effectively reduces construction costs. Nextel Peru also fully considers future evolution and protects their original investment by choosing Huawei s SingleRAN solution, which can help them transform smoothly into the HSPA+ and LTE networks. At the core network side, they only need to upgrade software to address the needs of IMS and future network architecture. Steven M. Shindler, Executive Chairman of NII Holdings was quite positive about the future, We re deploying a 3G network in Peru as a way to offer higher speeds and capability to our existing customers, maintaining our differentiation of Push to Talk and creating a path for us to move eventually into some of the higher consumer segments with a pre-paid offering, which could potentially as much as double our target market in a place like Peru. The E2E 3G solution for the network will not only help Nextel Peru resolve the node complexity problem, but also simplify the interworking of equipment from multiple vendors, and realize quick, low cost network construction. 48

The Growth and Evolution of CDMA2000 1xEV-DO

The Growth and Evolution of CDMA2000 1xEV-DO February 2004 CDMA2000 1xEV-DO The fastest mobile wireless networks in the world, from Seoul to San Diego and Sao Paolo, are powered by CDMA2000 1xEV - DO