Huawei Technologies

Transcription

1 Huawei Technologies

2 VOICE FROM OPERATORS T-Mobile Czech: convergence, aggregation and evolution Technology Director of T-Mobile Czech Republic, Frank Meywerk, met with WinWin and explained the operator s philosophy in providing broadband services and LTE evolution offering seamless mobile and fixed broadband experience through an aggregated network platform. By Joyce Fan Building an integrated service platform Although the mobile penetration rate in the Czech Republic reveals a mature market, opportunities still abound in both fixed and mobile broadband. T-Mobile Czech enjoys the largest subscriber base in the mobile domain, and recently it has acquired the DSL business from Ceske Radiokomunikace (CRa). The operator s Technology Director, Frank Meywerk, met with WinWin and explained T-mobile Czech s philosophy in providing broadband services and LTE evolution offering seamless mobile and fixed broadband experience through an aggregated network platform. WinWin: What current trends and opportunities are you observing in the Czech telecom market? Frank Meywerk: Well, a key point is that mobile penetration is around 130%, and this fact impacts further market growth potential. However, mobile data service penetration still lags behind other developed regions. For fixed broadband, various technologies are available now, including DSL, Wi-Fi and cable TV. As less than 40% of all household broadband services are connected through fixed ADSL broadband, there is still quite some room for us to develop. Generally, we believe that broadband is the most attractive area to explore at the moment. People want broadband on the move, and they want a different broadband experience at home. The incumbent operator in the Czech Republic provides mobile and DSL broadband services, while the cable operators are continuing to increase their market reach. So, we have to think about how to viably bundle fixed and mobile broadband and supply it with various services, such as voice, the Internet, video, and maybe TV. With the purchase of CRa s DSL 13

3 It s a good time for us to enter the fixed broadband market, leverage our nascent and efficient technologies, adapt our network structure, and maximize the synergies between our fixed and mobile network. Mr. Frank Meywerk, Technology Director of T-Mobile Czech Republic 14

4 VOICE FROM OPERATORS GSM has a far longer lifecycle than people expected. First, the vast numbers of GSM subscribers can t be easily migrated. Second, voice still generates by far the major share of the revenues. Third, we have to consider roaming. retail operations we can now enter the DSL market and provide bundled services at reasonable production costs. WinWin: Along with the dominant fixed incumbent and the growth of cable operators, what unique advantages can guarantee your success in the fixed broadband market? Frank Meywerk: Though the incumbent is strong, we currently co-lead the mobile market with them; also, we ve seized a larger market share and are generating higher mobile revenues. It s a good time for us to enter the fixed broadband market, leverage our nascent and efficient technologies, adapt our network structure, and maximize the synergies between our fixed and mobile network. On the other hand, we re creating an organizational infrastructure that marries fixed and mobile right from the beginning, unlike the majority of incumbents who have to approach them separately, which will take them a lot of effort and time to bring the parts together. I believe this will give us an edge. WinWin: Having acquired CRa, we can expect great value bundled offerings from T-Mobile. What are the network challenges to doing so and how are you planning to tackle them? Frank Meywerk: Fixed broadband services add revenues with lower margin. Therefore low production costs are key. Facing a variety of access technologies, such as mobile radio with GSM/EDGE, UMTS/HSPA and later LTE, plus Wi- Fi, ADSL and FTTx, we will need to focus on an efficient and future-proof network architecture. The key to efficiency lies in the access aggregation network as a first stage to collect all the data traffic from the various technologies. It should be based on IP/Ethernet which is being carried increasingly by fiber connections; however, microwave will be viable in many cases such as in more remote areas. The second large synergy potential comes from the common core backbone network which must be able to cope with the huge data volumes of the coming years. We are already deploying a fiber DWDM backbone structure with IP/MPLS which will be able to handle the broadband demand of the future years fixed and mobile broadband. This common aggregation network and core backbone describes the future of networks: flat and simple. GSM is here to stay WinWin: Given the high domestic penetration rate, T-mobile Czech recently partnered with Huawei to modernize its GSM network on a large scale. How do you justify this investment? Frank Meywerk: I m convinced that GSM has a far longer lifecycle than people expected even just a couple of years ago. The reasons are simple: First, the vast numbers of GSM subscribers can t be easily migrated the process is unavoidably long-term. Second, voice still generates by far the major share of the revenues. Third, we have to consider roaming not every market has the same pace on network evolution We will certainly see GSM beyond WinWin: Huawei s 4th generation BTSs have been deployed on a massive scale across your new 2G network. How are they performing and what are their benefits? Frank Meywerk: I think the first point is that Huawei has been able to build a strong local organization consisting of local partners and Huawei personnel. They ve a solid understanding of the market, of us as a customer and of the local environment. I think this capability is the key success factor. And, in terms of reliability and quality, the equipment is as good as we expected, and provides the availability we need. Also, the value of the technology will really come into play over the next years, and so we ll see how it matures into the future. Right now, we re extremely satisfied with the progress of our GSM modernization project. 15

5 The major challenge with data services though, is not only in the radio network but in backhaul. We are moving into more IP/Ethernet aggregation based on fibre while rolling out 3G. With this we will be excellently prepared for LTE. LTE, how to make it closer? WinWin: T-Mobile Group is a front-runner in LTE R&D. Can you tell us about T-Mobile Czech s preparation for LTE evolution? Frank Meywerk: The success of LTE certainly depends on the whole ecosystem: networks, services, and terminals. The network is well underway, and I m confident that it will be there in time. In our case, we just launched our 3G user friendly trial last December and continued with the commercial launch in Prague in January The project is designed as pre- LTE rollout. Although we re not late with 3G domestically, other countries are nevertheless ahead of us. So, if we do 3G today, we just do it as a preparation for LTE, and form part of our broader aim to provide a customized mobile Internet experience that, in particular, utilizes smartphones. WinWin: What is the current status of your 3G network and any challenges? Frank Meywerk: Currently, the rollout is going well and we re seeing a large traffic growth. The major challenge with data services though, is not only in the radio network. For operators, it s clear that the backhaul network is a major cost factor and it has to be able to cope with the rapidly increasing traffic volumes. Although our current access backhaul network is still microwave, we are moving into more IP/Ethernet aggregation based on fibre while rolling out 3G. With this we will be excellently prepared for LTE. In order to maximize the efficiency of the backhaul even today, we are deploying a Multi Service Packet Transport Platform (MSPTP) with Huawei, bringing 2G and 3G traffic onto one transmission network. WinWin: So you are confident about the network side. What do you think is the current bottleneck for large LTE deployment? Frank Meywerk: Yes, I m pretty confident about the network. There are still some question marks over terminals. We don t want to repeat the mistake that the mobile industry has made twice in the past. The LTE timeline will be determined by the availability of terminals: Their quantity, quality, price, and attractiveness to customers. Initially, we re envisaging terminals like USB sticks, followed by a second stage that must have handset/ smartphone character with voice capabilities in order to meet customer demand for voice and data on one device. WinWin: LTE can be deployed on any 3GPP frequency band, so different regions may have different bands. We know this will complicate global roaming with multifrequency and multi-mode network and chipset solutions. How can this problem be solved, and what do you expect to be the major future frequency bands and the time line? Frank Meywerk: The general big advantage of LTE is that it is much better scalable in terms of bandwidth and data speed. In Czech Republic we might first leverage the current 2100MHz and 1800MHz bands, provided that refarming or service neutrality is being approved. However, for providing mobile broadband services to more remote and rural areas, lower frequency bands will be needed. In this range we are facing the challenge that 900MHz is heavily utilized by GSM and freeing up of spectrum is difficult in the near future. Therefore an availability of Digital Dividend spectrum around 800MHz is important for Czech Republic. Later, in case of increasing capacity demands and for e.g. Femtocell deployment, 2600MHz spectrum might be necessary in addition. However, there are still many challenges to overcome. If terminals do not support these range of frequencies, the success of LTE will be greatly hindered as roaming between areas and nations will be extremely difficult. Users want ubiquitous coverage and seamless experience; so, once again, the question goes back to terminal suppliers. Editor: Gao Xianrui sally@huawei.com 16