China Unicom's innovative application of Femto solutions fully validates business models and diversification

China Unicom's innovative application of Femto solutions fully validates business models and diversified scenarios

Femto home base station has become a hotspot in the industry since 2009. According to Femto Forum (the most influential international organization in the Femto field, it has more than 70 members, including operators, system equipment vendors, terminal manufacturers, chip manufacturers, etc. (Members) revealed that by the end of 2009, dozens of world-renowned operators such as Vodafone, Orange, AT & T, SprintNextel, China Unicom, StarHub, etc. had launched WCDMA and CDMA home base station commercial or trial commercial services. The main supply in this field Vendors include Huawei, Nokia Siemens, Alcatel-Lucent, Samsung, NEC, Airvana, picoChip and other well-known manufacturers in the industry.

Femto's China business model will become a key factor in determining future trends

From the day it was launched, Femto faced two major issues. The first issue was the business model. How did Femto enter the customer's home? Is it purchased by customers or provided by operators for free? How to combine with fixed broadband? What differentiated value-added services are provided? What kind of tariffs are used to obtain the choice to win customers?

From the industry's point of view, Femto is an efficient solution to achieve 3G indoor coverage and fixed mobile convergence services. After users or small and medium-sized enterprises install Femto in their homes or offices, high-quality 3G signal coverage is available everywhere, and home users or enterprise users can obtain more economical and richer integrated services. Users access the mobile network or the Internet through fixed broadband indoors, and switch to the mobile network outdoors, thereby reducing mobile tariffs.

In the short term, Femto has both Internet access and mobile features, so it can become an effective means of bundling services, and can bundle broadband access services and mobile services of family / enterprise members. Femto helps operators introduce new billing and service bundling strategies. Operators can use Femto to provide new services. Operators launch tariff packages for homes or businesses. Femto can "bundle" family members or business members to use the carrier's various basic voice services and value-added services such as location-based applications.

In the long run, Femto will integrate with devices such as home gateways, enterprise gateways, and enterprise information machines to become a brand-new business integration platform, and truly realize quadraple play on the Internet, TV, fixed, and mobile.

2009 was the first year of China's 3G. Femto officially entered China, the world's largest 3G market. Over the past year, China Unicom and Huawei and other suppliers have conducted in-depth discussions and pilot verification on Femto's business model. From the results of the research In view of this, the key to the business model lies in the issue of market value. From the operator's perspective, the market value is the issue of Femto's return on investment (ROI). From the perspective of end-user consumer behavior survey analysis and financial calculations, Femto will play an active and effective role in China Unicom's rapid development of 3G users and the increase of users' ARPU value with FMC services. At the same time, if Femto's commercial application reaches a certain level The scale and long-term investment income are also promising.

China Unicom's multi-scenario verification Femto solution achieves the best coverage of 3G networks

In addition to the eternal topic of business model, there is still a question that has always troubled people in the industry. Does Femto's translation of the Chinese word "home base station" fully reflect its function? The extended question is such a question: What scenarios will Femto be used for, and are there any SME offices besides the family? Or are there other places?

In terms of traditional household coverage and integration services, China Unicom and Huawei conducted Femto coverage pilot testing and verification in 2009 in Beijing, Sichuan, Hubei, Liaoning and other provinces. Currently, there are a total of 10 northern provinces, as well as Dalian and Shanghai12 All cities have completed the construction of the Femto system platform. In connection with the business support system (BSS / OSS), many provinces such as Beijing and Hebei have completed the docking transformation of the business support system, and a series of functional and performance tests have been completed. , Is entering the final preparation stage before commercial use. According to the pilot situation of China Unicom in the past year, the Femto solution is the best 3G network coverage solution to solve the cost, coverage and capacity problems in multiple scenarios. It is expected that in 2010, a larger scale and a larger range will be obtained. deploy.

At the beginning of 2010, the new generation of home base station products provided by Huawei with high performance, volume, and weight more suitable for consumer needs have successfully completed the network test of the telecommunications equipment of the Ministry of Industry and Information Technology. Currently, EPLMN and parameters in two important cities in the north have been completed. For the effect test, all test items passed. Provincial branches of China Unicom will follow up on the entire network configuration based on experience, laying a solid network foundation for the large-scale entry of home base stations into various scenarios.

1) Shanghai Unicom innovatively applies Femto solution to achieve 3G coverage of historically protected buildings

The Shanghai Pudong Development Bank Building at No. 12 Zhongshan 1st Road, Shanghai is the largest and most well-built historically-preserved building in the Bund International Building Complex. The granite exterior wall and marble partitions of the historical building caused the macro network base station signal The attenuation rate is relatively high, and at the same time, the excavation, perforation, and cable may cause irreparable damage to the precious painted wall inside. The 3G coverage problem of this building has been unresolved. In order to effectively support the development of 3G services and bring customers a wonderful experience of 3G as soon as possible, after in-depth communication and verification with the supplier Huawei, Shanghai Unicom actively innovated and changed the traditional macro station and indoor coverage construction methods, using Femto The home base station solution pilot implemented the 3G coverage of the building.

The magnificent Pudong Development Bank building
The magnificent Pudong Development Bank building

It is difficult to use traditional methods for 3G coverage inside the Pudong Development Bank building
It is difficult to use traditional methods for 3G coverage inside the Pudong Development Bank building

After precise preliminary investigation, design and on-site installation, debugging and optimization, the 3G network coverage of SPDB was successfully completed. The opening test shows that the user's mobile phone signal is full; the caller of the voice service is normal and the voice is clear; the videophone service is normal and the picture is smooth; the data service realizes a single user service experience of up to 5Mbps (downlink) / 1Mbps (uplink). Taken together, the Femto solution provides users with a business experience close to indoor coverage, and SPDB customers are very satisfied with it.

2) Femto entered the university campus for the first time in the world and Tianjin Unicom won the gold medal of informatization

From the perspective of China Unicom, Femto Home Base Station is a wireless access device placed in small indoor environments such as homes and buildings. It can use fixed broadband access as its backhaul method. It has the advantages of small size, convenient layout, fast coverage, and disassembly. The advantages of simple installation and so on make up for the short period of the traditional construction means and the short board constrained by the computer room site to a certain extent, which effectively solves the current difficulties in the transmission access and indoor distribution of some buildings.

In addition to Shanghai Unicom's introduction of Femto into a heavy historically protected building, China Unicom has verified the unique advantages of the Femto solution in a variety of scenarios over the past year. In 2009, Tianjin Unicom used Femto to solve the problem of 3G coverage and capacity in another scenario, that is, 3G coverage of college campuses.

In early 2009, Tianjin Unicom launched the city's 3G network deployment plan. Considering that an important part of the potential user group of 3G is college students, according to various survey conclusions, it can be understood that college students have a clear sense of fashionable and fresh 3G business. It is beyond the interest of ordinary people, so 3G network coverage and business experience in the area where this type of user group is located have become the focus of attention of Tianjin Unicom in network planning and deployment.

Tianjin Unicom uses Femto solution to achieve 3G coverage in some areas of Tianjin University
Tianjin Unicom uses Femto solution to achieve 3G coverage in some areas of Tianjin University

If the traditional macro network method is used to solve the network coverage of colleges and universities, there are obviously several problems. First, the selection of base station sites is time-consuming and expensive, and the cost is high. In addition, the quality of coverage in indoor scenarios such as dormitory is difficult to guarantee. The density of users on campus is very high, and students' demand for mobile data services is also very large. In general, it is difficult for macro cellular networks to solve the two problems of indoor coverage and data service capacity.

Comprehensively considering the needs and practical difficulties of 3G network coverage, Tianjin Unicom and Huawei cooperated and took less than two months to use the Femto solution to complete the 3G coverage of dormitory areas in many universities in Tianjin. On May 17, 2009, Tianjin Unicom first officially released the Femto pre-commercial network at Tianjin University and Nankai University. The first phase of the project covered two dormitory buildings in two universities, and a total of about 100 FemtoePico (Femto Enterprise AP nodes) were applied. ), Covering more than 2,000 students, effectively solving the needs of high-speed data services for students with high traffic and high concurrency rates. At present, Tianjin Unicom and Huawei are working on the second phase of the Femto campus network construction, and have selected six universities in Tianjin to cover all campus dormitories.

According to the news obtained from various channels, it is the first time in the world to achieve the campus coverage of 3G networks through the Femto solution. The project won the fourth national information application and excellent communication technology innovation in October 2009. Achievement bonus award.

3) Quickly realize the business experience of important venues to ensure Femto's small use

In early February 2010, at a hotel in Xiqing District, Tianjin, the "Tianjin Informatization Construction Symposium" was successfully held by the Tianjin Economic and Information Commission and co-organized by Tianjin Unicom. During this meeting, Tianjin Unicom The city's government and enterprise leaders, industry partners, and important customers demonstrated a series of 3G and mobile Internet services. The high bandwidth and large capacity business experience provided by WCDMA / HSPA left a good impression on the participants.

Tianjin Unicom plans to demonstrate to the participants live access to the Internet using iPhones and HSPA data cards during the meeting. In order to ensure the best results of business presentations, after discussion between Tianjin Unicom and Huawei, the Femto solution was determined to solve the network coverage and network Capacity issues. Both parties use the hotel's optical fiber and Category 5 wiring system, and do not involve any complicated tasks such as wiring and power transformation. They completed the deployment of Femto base stations in the business demonstration area within a few hours, and completed the commissioning and optimization of various services for conferences. The convening provided an efficient, low-cost, and good experience support network.

Femto industry is about to take off, China Unicom is expected to play a key driving force

Due to various factors such as system maturity, equipment price, and unknown business model, the entire industry was basically in the stage of equipment function verification before 2009. The world's first 3G Femto commercial network was born in Singapore's StarHub in early December 2008. Huawei exclusively provided system equipment and home base stations. In 2009, suppliers such as Huawei, picoChip, and Airvana successively launched commercially available Femto commercial system solutions and smaller home base stations. The support for high-speed data services, switching to macro networks, and converged services are more satisfying for operators and consumers. Operators ’needs are more positive towards Femto. As of the end of 2009, eight well-known operators such as Verizon Wireless, AT & T, Sprint, Japan DoCoMo, and UK Vodafone have officially launched Femto commercial services.

With the further maturity of the Femto industry chain, the industry generally predicts that 2010 will be a year of real growth for the Femto industry. The consulting and research agency ABI Research predicts that the global Femto users will reach the level of 8.4 million in 2010. Up to 101%. In terms of usage scenarios and user segmentation, consumers (home users) are the main, Enterprise (small and medium-sized business offices) and Metro (metropolitan macro network) coverage supplementary scenarios have also begun to grow rapidly from 2011, and are expected to be in 2014 Femto users in different scenarios around the world will reach: households (109 million), SMEs (13 million), and metro coverage (15.1 million), a total of 137 million. Compared to the Enterprise and Metro markets, Consumer (family users) is Femto The main body of the user market accounts for about 80%.

Femto Global User Development Forecast (Source: ABI Research)
Femto Global User Development Forecast (Source: ABI Research)

In October 2009, Simon Saunders, Chairman of Femto Forum, said at the "2009 China Home Base Station Summit Forum" that China is now the best market for Femto deployment, which in turn is facing the best time for Femto deployment for China. It is believed that China's 3G large-scale deployment will help Femto reduce costs, and this view has also been recognized by many key suppliers in the Femto field.

China Unicom is one of the world's largest full-service operators, and is currently the world's largest WCDMA operator in terms of network size. At the same time, China has mega cities with very high population densities such as Beijing, Shanghai, and Guangzhou. China Unicom is on Femto Every move will have an important impact on the development of Femto's entire industry chain. Once the Femto network in its major cities is built, it will undoubtedly become a global model. Its deployment, operating experience and new business models that have been born will have a global impact. Other markets have very important reference value.

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