The ‘terminal-pipe-cloud’ concept re-establishes operators as the key link in the broadband services value chain

28 September 2011, Paris, France – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, is using Broadband World Forum to demonstrate its ‘terminal-pipe-cloud’ concept as the paradigm shift that will enable service providers to maximize returns from broadband service delivery.

Service providers face an uncertain future as Internet enterprises fast expand into the telecoms sector. A smart pipe delivers more satisfactory services to users, increasing the operators’ yields and re-establishes them at the core of the value chain. ISPs/ICPs can boost their appeal and the competitiveness of their services and create a harmonious value chain and a win-win situation where high quality service is delivered to premium providers.

Chen Jie, ZTE Senior Vice President, is on hand at Broadband World Forum to point out that a crucial part of the current smart pipe construction is just like building highways and dividing vehicle lanes. The strategy is to build a high-speed pipe to lay the foundation for a smart pipe and thus meet the requirements of carrying intelligent management and multiple services.

“ZTE provides an end-to-end intelligent network solution that covers both the intelligent access network and intelligent bearer network. The solution enables network-level service and user identification and offers end-to-end assurance for different services,” said Chen Jie. “Making pipes smart is the ongoing trend. ZTE has given full consideration to smart access, smart bearer, smart services, and smart management.”

ZTE’s basic model for making the access network smart is as follows: First, technologies including GPON/NGPON and VDSL2 system-level vectoring are used to deliver super-high-bandwidth access for users. Second, Deep Packet Inspection (DPI) technology enables the operator to clearly see the services and applications in the pipe and to provide QoS assurances for high-value services. In terms of service assurance, the GPON O&M solution achieves on-site zero-touch configuration, plug-and-play, and instant enabling. To maximize the value of the pipe, open access technology, which has already been put into mature application in Europe and America, can be used to open up the pipe to other operators.

The bearer network is a hub in the overall architecture of the smart pipe. Above it integrates wireless and wired access; below it converges with the core network. ZTE introduced a solution characterized by “smart”, “convergent”, “broad” and “stable”. “Smart” is the objective; services will be differentiated through an intelligent optical network and precise service operation. “Convergent” is the core; access convergence, convergence of the service and control layers, and convergence of the IP and optical networks improve network efficiency and reduce TCO. “Broad” is the foundation; an end-to-end 10G solution and large-capacity cluster equipment enable a super broad network. “Stable” is the guarantee; comprehensive reliability, integrated security, IPv6, green and energy-saving technologies deliver high stability and sustainable development of the network.

At BBWF Europe 2011, a number of operators visited ZTE’s booth. Carriers from countries including the UK and Turkey also attended the broadband workshop held by ZTE and responded favorably to ZTE’s smart pipe solution.