Smart Pipe Solution in Mobile Internet Era

Challenges Faced by Operators

It is forecast that by 2012, the number of mobile Internet users worldwide will exceed 2 billion, and revenue from global mobile data services will surpass $120 billion. This will account for more than half of global telecom revenue. A variety of new smartphones will also be introduced. Coda Research Consultancy predicts that 2.5 billion smartphones will be sold worldwide from 2010 to 2015, and sales will compound 24% annually by the end of this period. Network services will also grow rapidly. As of July 2010, sales of Apple’s iPhone had topped 50 million, more than 220,000 applications were available in the App Store, and over 5 billion applications had been downloaded from App Store. Since the launch of iPhone, Apple has generated over $100 million in revenue each quarter from AT&T revenue sharing.

Telecom infrastructure networks have always been seen as a core asset of operators. Communication links, call duration, and broadband ports are all closely connected with networks. In the mobile Internet era, however, things are changing. The whole industry chain is shifting its attention to terminals and services, while the value of operator networks keeps decreasing. Operators are tending to become pipe providers.  

At present, they cannot meet diverse user needs with their limited services, although they still play a key role in the traditional voice-dominated value chain. As portable smart terminals have a strong ability to access the Internet, a new operation model of mobile Internet can completely break the  old industrial pattern. The IT industry represented by Internet is quickly penetrating into the telecom market. Internet companies such as Google, Apple, Sina, Alibaba and Tencent provide unique content and are service providers. They are the leading players in the Internet era. Large amounts of free content pushed on the Internet is attractive to users, and this poses a challenge to traditional telecom operators―who are gradually lowering their position in the value chain and become pipe providers.

What can operators do to avoid becoming pipe providers? They need to urgently adjust their operation model and network architecture to adapt to high-speed growth of mobile Internet. The key is to build a smart pipe featuring low cost, high bandwidth, manageability, differentiated services, and sustainable Return On Investment (ROI). To address this issue, ZTE has put forward ZSP―an integrated smart pipe solution designed for next generation packet core networks.

Operational Requirements for Mobile Internet

To keep pace with Internet growth, mobile operators need to build an open, garden-like Internet eco-environment in the way of Wal-Mart. As well as providing fast and easy Internet access, they also offer differentiated services to content providers in diverse modes of supermarket management (retail store, franchise store, and supermarket’s speciality store). By analyzing market and user behaviour, they provide consultation and advertising services for content providers and one-stop VIP services for end users. In this way, operators can complete their multichannel profit model. To achieve this goal, operators have to build a next-generation packet core network oriented to mobile Internet. The network has the following features:

Low cost

A low-cost network requires a next-generation mobile packet core network that provides: 

■    Convergence: Multiaccess capability accommodating 2G/3G/LTE, WiFi, and fixed access; 

■    Evolution: Supports smooth evolution from 2G/3G to LTE and LTE+; 

■    Little change: New capabilities (such as internet offload and multiaccess bind capability) are added without major change to the network;

■    High integration: Provides high bandwidth, low power consumption, and small footprint.

Efficiency and intelligence

An efficient and intelligent network requires optimized operation and management of data services, so the next-generation mobile packet core network should provide:

■    Service inspection: Differentiate services based on deep inspection and analysis of L3-L7 protocols. This is the basis for an efficient and intelligent network;

■    Statistics and analysis: Analyze mobile data services and user behaviour to determine network usage and user preference; 

■    Service control: Help operators make good use of network resources and promote healthy business growth;

■    Content charging: Differentiate each service with independent charging modes to ensure every bit transmitted through the network generates revenue for operators. 

Sustainable ROI

A network with sustainable ROI requires that the packet core network be incorporated into the Internet industry chain and sustainable benefits be attained from Internet innovation. So the next-generation mobile packet core network should support:

■    Traffic flow optimization: Minimize traffic flow at the transmission and application layers, and continually cut down radio capacity expansion costs;

■    Content acceleration and adaptation: Reduce access delay, and continually improve user experience;

■    Content aggregation and distribution: Create a backward charging model, and continually increase ROI through Internet growth.

ZSP: ZTE Smart Pipe Solution

For sustainable business growth in line with Internet growth, ZTE has launched ZSP―a complete smart pipe solution that can help operators build an open, garden-like mobile Internet eco-environment. The solution consists of three sub-solutions: ZTE’s Effective Routing and Offload Solution (ZEROs), ZTE’s Optimized Operation and Management Solution (ZOOMs), and ZTE’s Content Optimizational Intelligent Network Solution (zCOIN).

ZEROs

ZEROs focuses on building a low-cost pipe without any alteration to the existing network. It helps reduce investment in network construction caused by rapid growth in mobile Internet data traffic. It effectively enhances bandwidth access to improve user experience.

ZOOMs

ZOOMs focuses on building a visible, manageable pipe. Through accurate inspection of user behaviour and traffic distribution and a flexible policy making mechanism, ZOOMs helps operators deliver differentiated services. Through integrated statistical analysis and deep data mining, it helps operators further enhance their service innovation capability.

zCOIN

zCOIN provides content optimization and processing. Through storage, acceleration, compression, adaptation and aggregation of service contents, it can effectively improve user experience and help operators obtain more revenue from the Internet.

ZSP allows for open service access, effective content distribution, hot content storage, and shared service adaptation. It increases the speed of access to self-operated services and mobile Internet applications, improves user service experience, and saves storage and management costs. The three sub-solutions can be combined or separated as required. They are the basis for next-generation packet core networks, helping operators change their operation mode to accommodate mobile Internet and take lead in future mobile internet development.