Telecom Malaysia: The Road to Full-Service Operation

Background

Telecom Malaysia (TM) is the largest telecommunication company in Malaysia. It has a monopoly on fixed-line networks and has a considerable share of the mobile market after acquiring Celcom and merging with its mobile operations arm, TMTouch. TM has 4.5 million narrowband subscribers and 1.6 million broadband subscribers.

With the rapid growth of the Internet and IP services, low-tariff VoIP is threatening traditional TDM-based telephony. Mobility and diverse services in 2G and 3G mobile networks is also a big challenge to traditional fixed-line services. Increasing demand for high-speed broadband in recent years has meant that TM has gradually been losing subscribers and not attracting new subscribers. Fixed-line revenue is declining. Faced with this competitive pressure, TM has come to realize that it must transform into a full-service operator.

TM has sought to build a quality and low-cost network that offers excellent service. A new-generation Metro-Ethernet network with open architecture and full-service bearer capability is their preferred choice. TM chose ZTE as its strategic cooperative partner because ZTE has a deep understanding of IP networks, quality products, and optimal solutions. 

MSAN: The Door to Broadband Convergence

TM initiated a broadband/narrowband multiservice integrated access platform in 2005. ZTE tailored a 250,000-line multiservice access network (MSAN) solution for TM, which paved the way for TM to build a converged broadband network.

The MSAN solution has non-standard interfaces for connecting with traditional switches and supports the development of high-bandwidth broadband services. An embedded MSAN integrated access platform allows for integrated scheduling and reliable transmission of narrowband voice and data services as well as broadband services. Additional transmission equipment does not need to be configured. Network topologies such as star, ring, or tree are formed as required. This helps TM rapidly deploy an access network. Through the integrated access platform, TM can smoothly deploy MSAN in NGN or even IMS. This meets the requirements for smooth network evolution and protects existing investments.

The MSAN solution also provides a unified network management platform for efficient management of all network elements. The unified access and management platform reduces operating costs.

Unified Full-Service Bearer Platform

Driven by the rapid development of broadband services and the evolution of wireless services, TM is acutely aware that a unified bearer platform supporting full-service operation is the basis of its business growth. In 2008, after its MSAN had been in operation for three years, TM proposed building a unified full-service bearer platform. TM needed a high-speed, low-cost and easily maintainable all-IP network that allowed for multiservice bearing and multiservice access. The network had to allow access to existing services and emerging services. To prepare for the evolution to LTE, the network also had to support 2G/3G/LTE RAN hybrid bearer services.

ZTE supplied TM with a complete carrier-class IPTN Ethernet solution. This adopts well-defined MAN architecture consisting of MAN convergence layer and MAN access layer. At the MAN access layer, single ring, multi-ring, and star networking modes can be deployed according to topology requirements. The MAN access layer also adopts carrier-class Ethernet ring protection switching (ESRP). ZTE’s innovative multiservice bearer platform is used at the MAN convergence layer—which has modular design and multicast replication. Carrier-class IPTN Ethernet is designed for a high-performance and reliable network. This lays a solid foundation for TM to implement full-service operation.

Customized Auxiliary Facilities

Malaysia has a tropical climate. The temperature is over 30˚C throughout the year, and the rainy season can last as long as eight months. In these weather conditions, telecom cabinets need to be waterproof, windproof and not easily corroded. They also need to be well cooled. ZTE’s cabinets are thoughtfully designed and equipped with heat exchangers to ensure equipment operates normally. The cabinets protect against mould, moisture, salt fog, corrosive industrial gases, and solar radiation. They are suitable for hot and humid climates as well as more severe environments.

Reliable power supply is the basis for stable network operation. ZTE developed custom-made power products for TM. The wiring for power supply was modified to reduce the carbon footprint of equipment and to make equipment easy to maintain. For core equipment, backup power supply was provided to improve system reliability. The lightning protection system was optimized to protect against severe local thunderstorms. Remote IP-based intelligent network and battery management were also implemented.

ZTE’s tailor-made cabinets and power supply products are designed for the special weather conditions in Malaysia. They performed excellently during five months of strict testing by TM.

Continuous Profit Growth

The transition to full-service operation enables TM to grow against the backdrop of the global financial crisis. TM continued to maintain its leadership position in the broadband segment in Malaysia with 1.68 million customers at the end of 2010, up 17.4%. 

Through five years of close cooperation in the MSAN project, TM considered ZTE one of its most important partners. ZTE’s quick response, on-time logistics and delivery, fast network construction, and superior after-sales service are highly recognized by TM.

In September 2008, TM took on a bigger role in broadband development when it signed a private public partnership with the government to launch a premier High Speed Broadband (HSBB) service in Malaysia. At the end of 2010, ZTE—TM’s strategic cooperative partner—won more than 50 percent share of the HSBB MSAN and Metro-E project.