KPN Mobile International Partners ZTE for Network Development

KPN is the leading telecommunications and IT service provider in the Netherlands and one of the most important transnational operators in Europe. KPN’s history can be traced back to 1852 when the Dutch government constructed telegraph lines. From 1994, the government gradually privatized KPN and in 2006, sold its remaining stake in the company.

In the Netherlands, KPN offers wireline and wireless telephony, internet, and TV to customers. It also offers complete telecommunications and IT solutions to business customers. Outside the Netherlands, KPN operates mobile phone services as a MNO in Germany (E-Plus Group) and Belgium (KPN Group Belgium). KPN has followed a multibrand strategy in its mobile operations and holds number three market positions through E-Plus and KPN Group Belgium. Through iBasis, KPN provides wholesale network services to third parties and operates an efficient, global IP-based infrastructure.

Historic Overview

The strategy in 2008−2010 was devised to tackle challenges in the telecom markets of the time. KPN set new strategic priorities that led to increased growth from 2008 to 2010. The objective for KPN Mobile International was to continue along the profitable growth path that it had begun as part of its successful challenger strategy. In particular, its network strategy was an important part of achieving profitable growth. E-Plus centered this network strategy around investing in the right technology at the right time according to customer demand.

In 2010, KPN Mobile International created a roadmap for accelerating the rollout of high-speed data networks in Belgium and Germany. These networks would be designed to capitalize on the mobile data opportunities that had arisen as a result of spectrum acquired in the German auction in Q2 2010 and as a result of various operational, technological, and commercial partnerships. The partnership with ZTE also played an important role in ensuring a fast, low-cost rollout of mobile broadband.

Building an All-IP Modernized Network with Cutting-Edge Technologies

ZTE provided complete Uni-RAN and Uni-Core solutions for KPN in Germany and Belgium.

●  SDR-based high performance network for smooth evolution

Cost effectiveness and high performance are the keys to business success in mature European telecom markets. To reduce the cost of acquiring new sites, ZTE proposed a distributed Node B solution that involved building an overlay network at E-Plus’s and KPN Group Belgium’s existing sites. Distributed Node Bs can reduce the network deployment time, and installing RRUs near antennas decreases feeder loss and improves coverage. BBUs can be inserted into legacy racks to save space.

For high performance, ZTE uses the MicroTCA platform in the design of Node B baseband. The MicroTCA platform minimizes a base station’s physical dimensions and optimizes system performance. Baseband processing resources are pooled more efficiently on the MicroTCA platform than on other platforms. Another advantage of MicroTCA is multimode baseband processing. ZTE provides GSM, UMTS, and LTE baseband processing in a BBU based on MicroTCA with different BP boards. This greatly reduces operator capex and saves the transmission to RRUs. For operators that run radio network with different standards, this design can be used to construct a deeply converged network.

End users demand the benefits of the latest technologies, and continual evolution is the only way to win. ZTE’s Node Bs are built to be compatible with and evolve to HSPA+, smart phone storming solutions, and other technologies. 

ZTE also provides advanced technologies to KPN Mobile International for lower opex. Multicarrier power amplifier (MCPA) technology allows for easier expansion of network capacity compared with radio products with legacy architecture. The native IP-based solution minimizes transmission cost.

ZTE provides KPN Group Belgium with a 900 MHz UMTS network solution based on re-farming. The solution can support 900 MHz GSM, 900 MHz UMTS, or two technologies in concurrent modes. A 900 MHz UMTS solution has better radio propagation than a 2100 UMTS solution. A 900 MHz UMTS Node B also has better coverage than a 2100 MHz UMTS Node B. A 900 MHz UMTS solution is also cost-effective because most of the deployed 900 MHz GSM infrastructure can be reused.

●  Large-capacity platform avoids operational bottleneck

ZTE provides E-Plus with a Uni-Core solution that supports seamless evolution from 2G/3G packet core to evolved packet core (EPC). It also helps E-Plus provide unified 2G, 3G and 4G access. ZTE’s intelligent packet core network is based on ETCA and a high-performance router platform that can build a future-proof data network. The intelligent packet core network greatly reduces equipment footprints and saves investment. It also satisfies data throughput requirements for the next several years and greatly improves the processing capability of the legacy network.

●  Optimizing operations for more revenue

ZTE Uni-Core solution provides a powerful user behavior analysis system (UBAS) that helps KPN build a smart pipe that supports service differentiation, smart traffic distribution, and flexible policies. E-Plus can now provide more innovative services and compete on the strength of its network.

●  Reliable implementation and engineering sourcing

ZTE cooperates with appointed engineering vendors. ZTE’s efficient, streamlined project management has been critical to rolling out a 3G network in Germany based on all possible equipment configurations.

Achieving Better Experience for Customers

With ZTE, KPN has been improving the quality and capacity of its mobile networks in Germany and Belgium, ramping up the average speed even further. ZTE successfully swapped over a large number of sites in Germany for KPN. E-Plus covered more than 85% of the population with HSPA+ (speeds of up to 21 Mbps) by the end of 2012 whereas KPN Group Belgium reached HSPA+ coverage of more than 95% of the population. The current focus is on HSPA+ and rollout of LTE will depend on customer demand for data capacity and will begin somewhere between 2013 and 2014.

 KPN’s goal is to enable all customers to enrich their work and leisure time with a range of communication services. Together with ZTE, KPN is accelerating the rollout of the best regional mobile broadband network. KPN continues to grow and create long-term value for its customers.

Milestones

Dec. 2009: Contract officially signed

Mar. 2010: First site installed

Dec. 2010: High-speed data services initially launched in nine urban areas in Germany

Dec. 2011: A large number of swapovers finished and new sites installed in Germany and Belgium

Dec. 2012: HSPA+ rollout: more than 85% population coverage (with speeds of up to 21 Mbps) in Germany and more than 95% population coverage in Belgium by the end of 2012

2013−2014: First commercial LTE will be launched