New Network, New Opportunity, and New Dream——TM’s Path of Full-Service Network Development
2010-06-08
Telecom Malaysia (TM) is the largest fixed network operator in Malaysia and the second biggest multinational operator in Southeast Asia. In addition to traditional fixed-line voice services, TM also owns mobile subsidiary Celcom and multinational subsidiary TMI. In Malaysia, TM has 4.5 million narrowband users and 1.6 million broadband users.
Challenges Presented by Development of Full-IP Networks and Full-Service Operation
As a result of the rapid development of emerging Internet services, IP-based Internet telephony is eating away at traditional TDM services with its low tariffs. The superb mobility of wireless 2G/3G networks and the diversified service capabilities they offer also pose formidable challenges for traditional fixed network services. Users’ ever increasing demand for high-speed broadband Internet in recent years had led to a high user churn rate and difficulties in signing up new users for TM.
Emerging services, especially new Ethernet-based services, drives TM to transform into full-into operation, where its focus is on building a high-quality, low-cost network that delivers a rich user experience. Against this background, TM chose the new-generation METRO-E network, which, with its open architecture, full-service bearing, and IP-based integrated access, provides users with high-speed broadband services. Thanks to our profound understanding of IP networks, state-of-the-art products and solution portfolio, ZTE was selected by TM to supply an end-to-end IP network solution for its full-service operation.
In 2005, TM initiated an integrated access platform project which aimed to provide multiple broadband and narrowband convergent services. To help TM build an integrated broadband network, ZTE tailor-made a 250,000-line MSAN integrated access solution.
The MSAN integrated access solution well inherits TM’s traditional services and provides non-standard interfaces needed to interconnect with traditional switches. More importantly, it supports the development of high bandwidth broadband services. These advantages prompted TM to make this solution its first choice.
ZTE’s integrated access platform has a built-in integrated service scheduling platform to provide overall scheduling and reliable transmission for TM’s traditional narrowband voice and data services and broadband services, sparing the operator the need to deploy additional transmission equipment. The built-in integrated service platform can be flexibly built into multiple topologies, including star, ring, and tree topologies, allowing TM to easily, fast deploy its access network.
Effective investment protection solution
ZTE’s MSAN integrated access platform can smoothly upgrade to MSAG, allowing TM to directly deploy MSAN into NGN or even IMS. This fully complies with the requirements of smooth network evolution and effectively protected legacy investment.
Highly efficient network management solution
ZTE’s integrated access platform enables unified access of narrowband and broadband services. In addition, its unified Network Management (NM) platform is capable of effective management of Network Elements (NEs) and its line detection system can accurately locate network faults. All these effectively reduce O&M costs, stem the turnover of voice users, and help TM fast sign up broadband users.
In light of the rapid development of broadband services and the evolution of wireless services, TM was keenly aware that a unified bearer network which supported full-service operation was the basis for business growth. Therefore, after three years of mature MSAN operation, in 2005 TM posed requirements for building a unified full-service bearer platform. The objective was to construct a high-speed, low-cost, and easy-to-maintain full-IP network that provides multi-service bearing and access.
The network would provide access not only for services of the incumbent network but also for new services emerging in the future. Fixed-line services to be borne by the network include HSI, VoIP, IPTV and VPN. In terms of wireless services, the new network must allow for evolution to LTE and be able to bear hybrid services delivered by 2G, 3G and LTE RAN networks.
To meet the above requirements, ZTE produced a solution that involved IPTN series Carrier-Ethernet products. Based on an analysis of network traffic and the service model, this solution adopts a clearly layered, easy-to-maintain Metropolitan Area Network (MAN) architecture that is divided into two parts: MAN convergence layer and MAN access layer. In the MAN access layer, a number of topological connections, including single-ring, multi-ring, and star topologies, are used to suit different requirements. In terms of reliability, the Ethernet protection technology ESRP, whose standardization work involving ZTE, is adopted. In the MAN convergence layer, ZTE used a brand-new multi-service bearing platform. Advantages of the platform include modular universal design, cards with the highest processing performance in the industry, redundancy for key boards, and powerful multicast replication capability. In addition, the equipment is low in power consumption, small in size, and easy to maintain. This architecture ensures the high performance and quality of the network, providing a solid foundation for TM to carry out full-service operation.
In-depth Customized Development Ushers ZTE and TM into New Era of Strategic Partnership
As a tropical country, Malaysia has a hot climate with temperatures above 300C throughout the year. It is a rainy and lightning-prone country whose rainy season lasts for as long as eight months each year. To make things worse, Malaysia is adjacent to the ocean and thus has an extremely high degree of salinity in the air. The harsh natural environment requires that cabinets be waterproof, wind-proof, heat dissipating, and anticorrosive. ZTE’s series cabinets are well designed and come with a heat-exchanger to ensure that equipment works in normal status. They offer excellent protection against external environments, including protection against mildew, damp, salt mist, industrial corrosive gases, and solar radiation. This feature makes them particularly suitable for a hot and humid climate as well as a harsh environment.
As a basic network device, power supply devices must meet high standards in terms of reliability, stability, and power consumption. In light of TM’s needs, ZTE developed a series of customized features. Modifications to wiring allow the devices to save more equipment room space and make it easier to maintain. Remote network management and intelligent management of batteries based on an IP network place every power supply device under the control of the remote monitoring center. Power supply with system-level backup in the core equipment room greatly boosts the availability of the system. The lightning protection system underwent optimized configuration to suit the local climate which sees frequent thunderstorms. All these features were satisfactorily proven in the five months of stringent testing conducted by TM in Malaysia.
Amid the global financial crisis, TM’s profits achieved sustained growth, cementing its leadership position in Malaysia’s telecom market.

Source: TM Annual Report 2008
TM’s annual report 2008 shows that its operating profit for 2008 increased 4.6 percent year on year to 8.46 billion Ringgit. Not only was the decline in its fixed-line voice user numbers stemmed, its broadband users also increased 26.7 percent year on year to 1.6 million. (Data source: TM Annual Report 2008)
ZTE’s efficient response to customer requirements, stable equipment running capability, prompt logistical delivery capability, fast network building capability, and satisfactory after-sales services won high praise of various departments of TM. In the three years to 2009 of TM's MSAN project, ZTE became the foremost partner of TM. In September 2008, TM signed a contract with the Malaysian government for a High Speed Broadband (HSBB) project. Under the contract, the Malaysian government and TM would invest 2.4 billion and 8.9 billion Ringgit respectively in the next ten years. TM would use xPON technology to build an FTTx-based high-speed broadband network to provide broadband access services for 1.3 million users.
As TM’s strategic partner, ZTE grabbed again an over 50% share of TM’s HSBB MSAN and METRO-E project at the end of 2009.
Cooperation promotes development, and development spurs further cooperation. We believe that, with our strength and commitment, we will help TM achieve more successes in its network development and service operation.