Asia-Pacific FTTx Business Model

The telecom industry escaped the worst effects of the 2008 global financial crisis and is now experiencing robust growth. In Asia-Pacific, telecom investment has generally become more diversified, but broadband is still the central focus for investment in network construction.

Broadband consumption is fragmenting, and demands for video, social networking, and location services are growing rapidly. Because users require high-bandwidth access anytime and anywhere, a broadband long-tail effect is taking shape. Changes in telecom consumption are accelerating the transformation of traditional ICT services into a complex ecological system of services. Video services are the most bandwidth-hungry services.

The Asia-Pacific telecom sector has moved from being a fledgling competitor on the international stage to being a mature, all-out competitor. The position of operators in countries such as China, Malaysia, and Indonesia is diversifying. But although they are developing into modern operators, they still retain vestiges of their role as government agencies. Some of these operators have a semi-monopoly on technology, capital, management expertise, and telecom regulation. And this gives them advantages over competitors.

Telecom operation models have undergone major transformation worldwide, and this has been brought about by the development of broadband services. Asia-Pacific operators have chosen the following path for network development:

■    Network transformation: Building a manageable, controllable transmission pipe so that transmission is capability adaptable rather than traffic transparent.

■    Value extension: Leveraging advantages in capital, technology, and management to extend value to both the cloud (service) and terminal (home network) sides.

FTTx Business Model

ZTE cooperates closely with all major Asia-Pacific operators and understands broadband trends in the region. The company has conceived an Asia-Pacific FTTx business model with the following characteristics:

Fast broadband connection to support multiplay services

Video has become a popular multimedia service driven by the growth of HDTV and 3DTV. So operators in Asia-Pacific have a clear objective of broadband development. In the short term, bandwidth capability needs to reach 20Mbps, with a view towards 50Mbps in the mid-term and 1Gbps in the long term. To reach this goal, existing copper networks need to be immediately reconstructed. Most operators in this region are boosting bandwidth by shortening the length of copper cables and adopting GPON/EPON or even NG-PON technology.

3G traffic offload and fixed-mobile convergence at the access layer

User information consumption habits are becoming more fragmented, so operators need to integrate the network at the terminal and access layers to provide high-bandwidth access anytime, anywhere.

■    3G traffic offload: PON + WLAN covers homes and public places and provides supplementary Internet access for mobile broadband users. This reduces data traffic pressure on 3G networks and improves the quality of broadband services.

■    Mobile backhaul over GPON: PON is used at the access layer for accessing mobile base stations. This reduces bearer pressure on 3G networks and increases PON utilization.

A manageable and controllable network

Changing business models mean greater requirements on networks. These requirements include smooth end-to-end service flows, fast and flexible service configuration and provision, fast fault location and diagnosis, and an end-to-end implementation mechanism for network alarms and testing. A manageable and controllable network enables equipment plug-and-play, immediate service activation, early alarms, and bandwidth speed prediction. These reduce user complaints and enhance satisfaction.

A low TCO and green network

Building green networks has become central to the corporate social responsibility of Asia-Pacific operators. Networks must save energy,  and this can be achieved through good equipment design and network optimization. Broadband networks must also allow for sustainable and smooth evolution. In the future, TCO can be reduced by adopting IPv6, cloud computing, and NG-PON technologies. 

Uni NGA Solution

ZTE’s Uni NGA solution is tailor-made for operators in Asia-Pacific and meets network requirements of Asia-Pacific business models. It is designed to help operators build high-value cutting-edge broadband networks based on a terminal-pipe-cloud architecture. The solution focuses on network planning, operation, and green communications.

■    High-speed broadband connection: ZTE’s future-proof unified broadband access platform allows full-service access and full-scenario coverage. It is designed to deliver bandwidth-intensive video services such as high definition TV and 3D TV. It is also designed to accommodate bandwidth planning for 20Mbps in the short term and 50--100Mbps in the mid to long term.

■    Integrated platform: ZTE’s unified access platform addresses bandwidth bottleneck using xPON-based mobile backhaul. It also diverts 3G traffic in hotspot areas through xPON+WLAN, effectively meeting the growth needs of mobile Internet.

■    Easy O&M: ZTE focuses on the manageability and operability of network terminals, end-to-end automatic service activation, and all-round service guarantee so that broadband networks can be easily operated and maintained.

■    Green communications: Working on the principle of “less consumption, lower cost, and better life,” ZTE helps operators build low-TCO networks with green technology and equipment solutions.

Speeding up broadband connection is a core goal for operators. ZTE’s Uni NGA solution integrates mobile backhaul and WLAN, allows for automatic end-to-end service activation and easy O&M, and has energy-saving and emissions reduction features. This helps operators build low-TCO, high-value broadband networks.

Success Cases

Many operators in Asia-Pacific are using the FTTx business model. By building smart pipes and extending the value of “cloud and terminals,” they have successfully transformed their broadband networks.

ZTE has provided Telecom Malaysia (TM) with a tailor-made MSAN integrated access solution for unified access to both broadband and narrowband services. This solution includes a unified network management platform that effectively manages all network elements as well as a line detection system that accurately locates network failures. These greatly boost TM’s efforts to build an integrated broadband network.

In Indonesia, ZTE has provided a number of solutions that cater for the different scenarios and requirements of TELKOM’s GPON project. ZTE has assisted TELKOM in building a full-service network that incorporates traditional voice services and new multimedia services with particular focus on the mobile backhaul application. These help TELKOM raise customer loyalty and ARPU.

In China, ZTE has provided China Telecom with a complete FTTx solution following close cooperation on issues such as standards, interoperability testing, and trial application. The solution is based on a unified OLT platform for access to EPON, GPON, and 10G EPON and includes a series of custom-made ONU terminals (MDU/MTU/SBU/SFU/HGU). It also includes measures to cut TCO, save energy, and reduce emissions. These will help China Mobile build a manageable, maintainable, and high-bandwidth green FTTx network.