Where is the Next Gold Mine for CDMA?

In November 2009, global research and consulting firm Frost & Sullivan awarded ZTE the prestigious title “World’s Best CDMA Equipment Manufacturer” at the Enterprise Communications Summit & Award Ceremony held in Shanghai. The ceremony aims to recognize outstanding performance of global CDMA equipment vendors in areas such as service, product R&D, and innovation. Over the past 10 years, ZTE has been creating waves in the global CDMA market with a global CDMA subscriber capacity that has now reached 250 million. Since 2006, it has ranked first in terms of the number of CDMA base stations shipped globally, and has become the leading CDMA supplier in China, holding a 43.1% domestic market share.

Greater challenges, however, follow closely on the heels of achievement. CDMA has previously demonstrated strong growth—from the earliest markets of North America, to the bellwethers of the Asian economy, Korea and Japan, and the Chinese and Indian markets with huge population bases. But currently, the global CDMA operation market is experiencing a downturn, especially after China Telecom acquired China Unicom’s CDMA business and began large-scale expansion of its CDMA networks. Where is the next gold mine for CDMA? It is a question confronting all CDMA equipment manufacturers. As one of the few vendors that insist on high investment in CDMA, ZTE pays great attention to the development of the global CDMA market. It believes that updating and upgrading equipment in conventional CDMA markets will be the next gold mine for the company.

Network Upgrade in Developed Markets

For ZTE, North America presents such an opportunity. Operators in North America continue to use out-of-date equipment that may be affecting their market competitiveness. While entry into the North American market is not easy, ZTE is confident in the unparalleled technical advantages its CDMA products offer. The company attaches great importance to the upgrading and reconstructing of incumbent networks, with the view of helping operators reconsider the value of CDMA.

There are several issues that need to be addressed in future network upgrade and development. Network planning, for example, is difficult because different networks operate on different frequency bands and cover different areas. Transmission facilities also need to be reconstructed and made suitable for bearing high data traffic. ZTE uses intelligent network optimization—including automated network analysis and flexible terminal tools—that can greatly reduce network optimization costs.

Smooth Evolution to LTE

Though the CDMA market is relatively small compared to that of 3GPP UMTS, the CDMA industry chain still maintains its vitality and has distinct advantages in smooth network upgrade and investment protection. LTE has become the technology of choice for future wireless networks. CDMA2000 1X/EV-DO Rev.A can be upgraded to EV-DO Rev.B to meet the needs of current users; LTE networks can be deployed in urban hotspots after conditions have matured, and then gradually LTE coverage can be expanded. CDMA and LTE networks complement each other; the CDMA network offers seamless coverage for voice and low- and medium-rate data services, while the LTE network provides hotspot area coverage for high-speed data services. They can coexist for a long period of time.

ZTE’s Uni-RAN solution adopts advanced Software Defined Radio (SDR) technology that allows networks such as CDMA, GSM, UMTS and LTE to run on a unified platform. Using SDR technology, network upgrade and evolution can be achieved through software configuration; that is, merely adding or changing baseband processing boards. The Uni-RAN solution takes into full consideration operators’ needs for multi-mode integration, unified transmission, unified network management, and energy conservation. These help operators reduce their CAPEX and OPEX, shorten the time-to-market of LTE, and thus greatly improve infrastructure competitiveness.

 CDMA-to-LTE evolution cannot be accomplished in one move. It is a gradual process involving the long-term coexistence of two networks. This places high requirements on the connectivity and interoperability of the two networks. A vendor who supplies only LTE equipment cannot adequately service an operator running two or more networks. Those who can supply a full range of equipment—including CDMA, GSM, and LTE—will gain favor with operators. This is ZTE’s advantage. ZTE currently has the widest and most complete wireless product range in the world, and its CDMA equipment has been highly recognized by global mainstream CDMA operators.

Speedy Commercialization of CDMA2000 1x EV-DO Rev.B

In today’s fiercely competitive 3G market, although voice remains a basic telecommunication service, wireless broadband access has been the focus of attention. Providing users with broadband access anytime and anywhere has become the main issue for operators in their network construction.

From the perspective of future competition, CDMA operators must maintain their data service advantage in CDMA until the LTE era arrives, or they will find themselves working for others without profiting themselves. CDMA data services are an important foundation for potential LTE needs. Since UMTS operators are not so concerned with pushing network evolution, LTE will create an important opportunity for CDMA operators to change the current competition pattern.

Although LTE is still a long way from actualization, EV-DO Rev.B is easy to deploy. With available spectrum, carriers can be bundled with software upgrade and changed channel boards, so that network access bandwidth can be significantly improved at very low cost, and the advantages of high access rates can be maintained.

At present, the EV-DO Rev.B Phase I system has proven successful in commercial use. Field-proven products such as base stations, terminals, chips, and test equipment have been introduced in all links of the industry chain. However, commercial chips for the Phase II system are still waiting to be launched. Like evolution in other wireless communications technologies, EV-DO Rev.B will have fewer terminals at the beginning of Phase II. But with continuous progress, data cards will be launched prior to mobile phones and will not hinder the further development of EV-DO Rev.B.