Telenor Constructs a Digital Hungary

Hungary has mobile penetration of more than 100 percent and is one of the fastest growing telecom markets in Europe. In the mobile broadband era, Hungary represents a huge opportunity for operators, but customers there also have high requirements and market competition is intense.

New Challenge, New Opportunity
Telenor Hungary is the second largest mobile phone operator in Hungary. With the coming of mobile broadband and 4G, Telenor Hungary has launched a "digital Hungary" program. Telenor's existing network was modernized so that it could smoothly evolve to HSPA+ and LTE. This modernization has improved network performance and market competitiveness and helped Telenor meet the growing need for simple-to-use, value-for-money mobile communications. Customers have been provided with faster, more reliable services.

ZTE's Uni-RAN Solution
On August 23, 2010, ZTE announced it had signed a contract with Telenor Hungary to build a GSM/UMTS/LTE network in Hungary. ZTE agreed to provide radio and core infrastructures that include its industry-leading end-to-end and Uni-RAN solutions. The deployment for Telenor was the first GSM/UMTS/LTE co-networking deployment in the telecom industry.
ZTE's SDR-based Uni-RAN meets all of Telenor's requirements. With the software-defined radio (SDR) technology and unified hardware platform, different baseband processing boards can work together in a BBU. A single site can support multiple modes and same-band networking, for example, GSM 900 MHz and UMTS 900 MHz. ZTE provided a unique 2T4R dual-PA radio unit that supports different modes and cross-sector configuration (a radio unit supports two sectors at the same time) to save capex and opex. It also supports MIMO without needing new radio units. This reduces equipment cost, and the service network is not affected. Telenor did not need to alter the cost-effective configuration of its network at the beginning of swap and had control over its investment throughout the network evolution. Because ZTE iBSC has large capacity, the number of BSCs used in the mobile network was reduced from 42 to 14, which significantly saves capex. ZTE's Uni-RAN also enhances user experience for Telenor's customers.

Highly Efficient Network Management
Telenor Hungary operates a triple technology network on four spectrums at the same time. As a result of intense market competition, increased demand for services at low prices, and frequent technology changes in an ever-changing environment, Telenor needs to continuously upgrade its network. This requires investment and leads to a decrease in ROI. 
ZTE's RAN OSS can manage radio equipment such as RNC, Node B, BSC, BTS, and eNode B. RAN OSS manages faults, configuration, inventory, performance security, topology, and an integrated analysis system. It supports centralized management, monitoring, and statistical analysis. It also supports SON, which has many intelligent, automatic management functions, such as self-configuration, self-optimization, and self-healing. SON can automatically configure and optimize the network with less human intervention.
ZTE's RAN OAM has a flexible architecture and uses independent modules. This allows for fast deployment and flexible management and reduces capex and opex for Telenor Hungary.

Hybrid Transmission
Depending on site transmission requirements, before the swap, 2G BTSs were using E1, and 3G sites were using E1 and IP. Telenor Hungary did not upgrade its transmission network to all-IP until 2012. ZTE's base stations support TDM and IP hybrid transmission; TDM is used for 2G sites, and IP is used for 3G and LTE sites. Therefore, the existing transmission resources can be effectively used in the new network.
ZTE's SDR base stations have an all-IP switch architecture so that they can evolve to all-IP transmission. Furthermore, 2G, 3G and LTE networks can share existing transmission resources, and this improves transmission efficiency and reduces operation costs.

Advanced Network Security Solution
There are transmission challenges when a network evolves to all-IP architecture. Base station data is transmitted in plain text, which means that it can be easily deciphered, intercepted, counterfeited, and tampered with. Most base station nodes are located in unsecured environments and are open to attack. In addition, backhaul transmission is usually on a third-party network, which implies a degree of risk. IP protocol does not take these security factors into account. ZTE's base stations support IPSec solution from BTS, NodeB and eNodeB to BSC, RNC and CN. ZTE's RAN network issues and manages the certificate through CA. A certificate is automatically managed; the certificate status can be checked, updated, and cancelled in real time. IPSec ensures transmission security in the IP layer. By using encryption, authentication, and other security technologies in the IP layer, TCP/IP protocols and network are more secure. IPSec is flexible and efficient. It improves network safety and reduces maintenance.

Customized Service
During the network swap, more than 40 percent of outdoor power supply cabinets were reused. This reduced costs and hastened project progress. ZTE has all types of base stations for outdoor, indoor, and street scenarios. ZTE BBUs can be installed in existing outdoor cabinets; standard 3U, 19-inch BBUs meet installation and heat dissipation requirements. ZTE engineers tested installation design, simulated thermal scenarios, and performed other practical tests on-site to ensure that BBUs installed in power supply cabinets would work normally and not affect the cabinets themselves. ZTE's professional, customized services pushed forward Telenor's network modernization.
By October 2012, ZTE had swapped more than 2800 sites and commercialized more than 500 new sites. ZTE provided strong support to Telenor Hungary to deliver high-speed data services on high-quality GSM, UMTS and LTE networks.

A Wonderful Digital Life
Telenor Hungary built a separate brand called "Hipernet" for its broadband network. All services, included LTE services, are marketed under the Hipernet brand without reference to 3G or 4G. Telenor has a mobile internet package suitable for completely replacing fixed-line internet in several locations in Hungary. Telenor has completely overhauled the networks of 671 towns and villages, and similar upgrades are in progress throughout the rest of Hungary. Users can now enjoy a mobile internet network that offers faster data and better quality than ever before. Telenor is now offering a maximum nominal download speed of 60 Mbps in 76 towns. According to the company, Hipernet MBI will bring information services and business opportunities to people in rural areas where the internet has traditionally been difficult to access. Working with large files is now possible. The latest addition to Telenor's range of mobile internet services allows HD-quality video conferencing, transfer of large graphics files, and remote management of distributed databases. Popular cloud services are also faster and more convenient to use with Hipernet MBI.

Financial Improvement
Telenor Hungary disclosed its financial results for the first quarter of 2012; revenue, EBIT, and ARPU had increased year-on-year in Q1 2012. "For the first time in a long while, this quarter we can report an increase in voice and non-voice revenues alike. In recent years, we have been badly hit by the economic crisis, the gradual reduction of termination fees, and a tax crisis. This improvement demonstrates not only the attractiveness of our commercial offers but also the quality of our new network. We are very proud that last year's very fast network modernization program now allows us to offer high-quality mobile internet services. In addition, we also enhanced the quality of our voice services. These improvements are appreciated by new and existing clients alike," said Christopher Laska, CEO of Telenor Hungary.

Milestones

• August 2010: Telenor Hungary signed the GSM/UMTS/LTE contract with ZTE.
• December 2010: Test bed verification finished.
• September 2010: LTE 2.6 field test finished.
• December 2010: LTE 1.8GHz sites prepared.
• October 2011: LTE network was pre-commercialized.
• April 2012: Swap project completed three months ahead of schedule.
• July 2012: LTE network was commercially launched on 1800 MHz spectrum.