CSL: LTE Creating Blue Ocean Opportunities

In the aftermath of the global financial crisis, LTE development is thriving. This is especially true in North America and Europe where commercial LTE networks have already been deployed. Hong Kong is a leader in the Asian telecom industry, and LTE is the inevitable choice for network evolution throughout the city. CSL, the largest mobile operator in Hong Kong, is pushing hard to be the first to deploy LTE. So why has CSL chosen ZTE as its LTE supplier?

The following factors are driving CSL to be a pioneer in LTE:

External factors:

■    Hong Kong has a highly saturated voice market with a mobile penetration rate of 173% in 2009;

■    Hong Kong has a large youth market who demand quality data services;

■    There is high data throughput for each base station due to high population density;

■    A new business model has arisen with iPhone;

■    Fierce competition exists between mobile operators in Hong Kong.

Internal factors:

■    CSL previously had a declining market share and APRU;

■    User loyalty is low due to mobile number portability service; 

■    High bandwidth is required for new technologies and services;

■    CSL’s network structure has previously been complicated and inefficient, and OPEX was high;

■    Network convergence and evolution was difficult.

Since the launch of the Next G all-IP mobile broadband network in March 2009, data traffic has increased by a factor of 65, and now comprises more than 80% of CSL’s total network traffic. It is clear that there is a strong need for LTE in Hong Kong and for provision of superior customer experience. CSL needs high-bandwidth, low-cost network technology to enhance its market competitiveness. With a bit-cost advantage over 2G and 3G technologies, LTE can greatly reduce network deployment costs and increase an operator’s profit margin. For CSL, LTE is the ultimate technology for implementing a “blue ocean” strategy.

Best Network Solution for the Most Complicated Wireless Environment

One of the most prosperous cities in the world, Hong Kong is famous for its forest of skyscrapers and vibrant downtown areas. The environment in which wireless networks must operate is extremely complicated, and constructing wireless networks is challenging.

CSL’s four original networks with dual modes and three frequency bands had high maintenance costs and were not competitive in data services. Their complicated network structures made upgrading difficult. To simplify network structure, CSL adopted ZTE’s SDR-based Uni-RAN solution, which allows for coexistence of 2G, 3G, and LTE. With distributed BBU+RRU, better use can be made of equipment rooms and difficulty in acquiring new sites is avoided. CSL’s network structure was simplified in terms of wireless, core, transmission, and management. Operation and maintenance costs were reduced by an astonishing 61.4%.

SDR is an innovative technology at the forefront of the wireless broadband revolution. ZTE’s state-of-the-art SDR technology not only reflects the company’s keen pursuit of advanced technology but also its precise grasp on future technical trends. The SDR-based Uni-RAN solution for CSL has the following attractions:

■    Unified and future-oriented SDR platform that enables smooth network evolution while protecting investment to the greatest possible extent;

■    Rapid customization and service development that satisfies the requirements for multiband, multimode radio reconfiguration;

■    Enhanced spectral efficiency, peak data rate, throughput, cell edge coverage, and QoS that ensures excellent network quality;

■    The world’s first commercial 1.8G/2.6G dual-band LTE network that takes advantage of CSL’s spectrum position to provide customers with better coverage for a more satisfying communications experience. 

World’s First Commercial LTE/DC-HSPA+ Network

On 18 October 2010, CSL went on a media tour to introduce its commercial LTE/HSPA+ network. A live LTE/HSPA+ network was showcased at four sites, and among the audiences were Tsim Sha Tsui, Lan Kwai Fong, Mong Kok, and Sai Kung. Multimedia conferencing, HD video downloads, high-speed tests, and online games were demonstrated. The actual download speed confirmed by testspeed.net ranged from 50Mbps to 70Mbps. The demo achieved good results and gave media delegates a first-hand experience of impressive high-speed LTE services.

On 25 November 2010, CSL announced the launch of the world’s first LTE/DC-HSPA+ network, heralding a new era in mobile communications. After a commercial LTE trial network had been established by CSL, Telstra, and ZTE in September 2009, LTE was then formally deployed in Hong Kong with peak downlink speeds of 100Mbps and low latency. At the launch ceremony, CSL demonstrated how LTE/DC-HSPA+ will outperform existing mobile technologies and how CSL would build on its partnership with ZTE. The new LTE/DC-HSPA+ network will take advantage of CSL’s leading position on spectrum to provide total coverage and world-class mobile broadband performance throughout Hong Kong. It will provide seamless connectivity that redefines the mobile broadband experience with ultra-fast speed, high bandwidth capacity, and personalization that has never been seen before in mobile services.

As well as offering high-speed highly reliable mobile data services, the LTE/DC-HSPA+ network will improve the lives of Hong Kongers by taking entertainment and interaction to new levels—anytime, anywhere—with 3DTV, interactive gaming, and e-learning. These applications will not just be novelties to be experienced and forgotten, they will become an integral part of a daily mobile lifestyle.

Awards and Recognitions

■    June 2009: CSL and ZTE were awarded the prestigious National Mobile Services award for Wireless Network Infrastructure at the GTB Innovation Awards in London. This award recognized the outstanding achievement of fully replacing CSL’s original 2G and 3G networks with a world-class integrated all-IP SDR based HSPA+ network capable of downlink speeds up to 21Mbps.  

■    June 2010: CSL and ZTE won the LTE Infrastructure Innovation award for the second consecutive year. This was awarded by Global Telecoms Business magazine for innovation in CSL’s Next G network. With an impressive peak rate of 21Mbps, the Next G network launched by Telstra—CSL’s Australian parent company—has been recognized as the world fastest mobile broadband network by Guinness World Records.

■    June 2010: Test results of independent benchmarking firm, Celfinet, confirmed that CSL provided the best overall performance in terms of average speeds, coverage, broadband coverage, voice quality, and data throughput.

■    July 2010: Reputable Hong Kong journal e-zone tested voice quality and data rates of four local UMTS operators: SmarTone-Vodafone, CSL, H3G, and PCCW. The results showed that CSL’s network provided smooth, stable video programs with quick response.