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LTE Competitive Analysis

Huawei’s LTE RAN

June 2010
Al Williams
LTE Portfolio Management Team
Al.Williams@alcatel-lucent.com
Huawei LTE RAN Competitive Analysis
Contents

1 Executive Summary – Quick overview of position, product and differentiation.


2 Market Position – Relative ranking, contract/trial activity, share, etc.
3 RAN Product
3a Baseband/Radios – Details on each element in the portfolio
3b Configurations – High-level view of macro, distributed eNodeB, micro, etc.
3c SingleRAN/Evolution – How does the eNodeB support multiple technologies and evolve?
4 How Do We Win? – Huawei strengths/weaknesses vs. ours; How do we attack them?
5 For Further Information – Pointers to other resources
This document is updated regularly. You can find the latest version plus other documents about our LTE
RAN competitors on the Wireless Marketing Toolbox.
http://wireless.app.alcatel-lucent.com/marketing_toolbox/competitive_intelligence/lte.htm
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Version History

Date Changes
Oct 13, 2009 Initial Version

June, 2010 Major update: Addition of exec summary, rewrite of market section, updates of product
sections, addition of selling points throughout.

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1
Huawei’s LTE RAN
Executive Summary
Executive Summary
Huawei Intends to Win
Huawei’s goal is to become the #1 LTE vendor in the world.
Is this a reasonable goal? Consider three key points regarding Huawei:
1. Huawei’s wireless growth has been rapid – providing a strong base for LTE
2. Huawei SingleRAN meets our customers’ LTE need – and drives them to demand converged RAN
3. Most analysts are picking Huawei in the top 2 in LTE – ahead of Alcatel-Lucent

Given their current position, it seems that their goals are reasonable. But Huawei can be beaten – they are
not without fault or flaw. The LTE market is young enough that anything can happen and momentum can be
changed. We must attack them head-on to be sure they don’t establish a strong foothold.

This package explains Huawei’s product and position – then addresses “How do we compare?” and “How do
we counter?”

Yes, Huawei has strengths:


• A well defined purpose, strong execution/speed, low costs, ability to throw people at
their problems, deep cash reserves and financing, simple/straightforward products, etc.

But Huawei also has weaknesses:


• A low reputation, out-of-control growth, weak services division, not enough local staff,
security concerns, still too dependent on Chinese market, etc.

We CAN beat them


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Executive Summary
Huawei’s Rapid Wireless Growth Provides a Strong Base
Huawei: Company Revenues – 2001 to 2009

Huawei’s Growth: Target: +20% for 2010

Financials
 Most telecom vendors struggled in 2009, yet
Huawei had strong increase in revenues
 Huawei targets 20% increase again in 2010

Market share
Huawei: RAN Market Share – 2007 to 2009
 In 3 years, Huawei has risen from a small
player to #3 rank in the RAN infrastructure 2007 2008 2009
market Total 4.1% 10.3% 18.1%
 Strong share in all technologies GSM 5.7% 10.6% 19.5%
 Only weak spot is the NAR region CDMA 1.6% 5.8% 16.4%
WCDMA 3.2% 15.0% 19.1%

Why is this Growth Relevant to LTE?


• It demonstrates credibility to potential new customers.
• It deepens relationships with existing customers.
• Increased scale provides volume to keep costs down.
• Recent 2G/3G deliveries are on SingleRAN - easier LTE upgrade path for these operators.
Alcatel-Lucent’s small WCDMA embedded base is often cited as a weakness in our LTE story.
See Section 2 for more on market share and financials.
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Executive Summary
SingleRAN Drives the Customers’ Need and Drives Converged RAN
BTS3900 Macro Node B
Distributed
Node B
Micro Node B

• BTS3900 is Huawei’s only base station for all


wireless applications.
• It supports GSM, CDMA, WCDMA, TD-SCDMA,
WiMAX, and LTE FDD/TDD.
• It was released in 2008 and has already been Indoor Outdoor
BTS3900 DBS3900 BTS3900C
deployed broadly for 2G/3G.

SingleRAN BTS3900 (WCDMA+LTE)

• SingleRAN is a brand/concept name.


WWW
• The BTS3900 supports multiple RF technologies C C C L L L Any RF technology
D D D T T T can be plugged into
from same cabinet at the same time. MMM E E E any slot.
• A customer can deploy an earlier technology, A A A

then adopt newer technologies via software


Baseband unit
upgrade and/or addition of new HW boards. supports any 2 RF
techs at same time
• One OA&M system manages all technologies.

“Converged RAN” has become a demand by key customers


Huawei is commonly credited with its rise, but ZTE, Ericsson, NSN’s products also support it.
Converged RAN has several key advantages for the vendor:
• Earlier sales: “Can’t decide on HSPA+ or LTE? No worry, just buy our SingleRAN and you can upgrade when you’re ready.”
• Easier LTE upgrade pitch: “Now that you have SingleRAN, you can add LTE easily without an overlay.”
• Network refresh opportunities: “SingleRAN saves OPEX. Swap out your old – save money, be ready for the future.”
See Section 3 for more on LTE eNodeB and SingleRAN.
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Executive Summary
Huawei is an Early Leader in LTE … Picked ahead of ALU

Analyst Opinions
Analysts reflect market perception, but they also can
influence operator decisions. What they say matters.
• IDC commented in April: “The rest of the vendor community
will have to play catch up to Ericsson and Huawei.”
• Gartner also ranked Huawei high, particularly in their ability
to execute (see the chart on the right).
Source: Gartner
Operator Engagements
• In October, Huawei claimed to have 25 trials – since Huawei claims 10 contracts ???

then the number has risen to 60! 1 TeliaSonera Lost


2 Telenor (Norway) Contract
• Certainly, this number includes some creativity (double
3 China Mobile Trial
counting, including lab trials,etc.) But what the market hears 4 Proximus (Belgacom) “LTE ready”
is that Huawei is very active. 5 Net4Mobility (Sweden) Contract
• Now, the announcements have shifted to contracts. 6 T-Mobile ??
7 Zain (Saudi Arabia) Trial
• Again, Huawei’s claim is high and careful study shows that
8 Wind (Italy) Contract
they aren’t all real contracts. Yet analysts believe the
9 MTS (Uzbekistan) Trial
number and report it as fact. 10 MTS/K-Telecom (Armenia) “LTE ready”

Analysts have picked Ericsson and Huawei as the LTE winners


Really? Huawei’s trial number isn’t believable. Their contracts aren’t all valid, nor are any of them as
important as Verizon and AT&T. A few analysts see cracks in Huawei’s story.
We’re working with IDC, Gartner, and other analysts to improve their view of Alcatel-Lucent.
See Section 2 for analyst opinions and trials/contracts.
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Executive Summary
How do we Beat Them?
Huawei is a formidable competitor … but not unbeatable.
Do not misunderstand: Huawei is delivering a quality product in a timely manner with good prices. In
order to win, we will have to work every opportunity that we can. We will have to show the value of
our solutions and show the value of partnering with Alcatel-Lucent.

Beating them requires that we know them well and attack them head-on:
• Sales: (1) Attack specific Huawei weaknesses, (2) Question their value as a partner (spread FUD)
• PM/marketing: (1) Fix our product gaps, (2) Meet Huawei head-on in the marketing wars

Regarding Huawei: ALU perspective:


• Can they keep up with the growth and still satisfy • We’re turning the corner on our financials. We also have
Rapid their customers? a strong embedded base on which to build.
Growth • How fast are they really growing? Financials and • Huawei hasn’t shown added value – so far, they’re mostly
shipments are based on Huawei statements. pipe building. Our approach is different.
• Prove it! Is converged RAN really as important as • Others are catching up. Huawei had an early advantage,
SingleRAN Huawei says? but the rest of the vendors can now offer it too.
• Evolution isn’t as simple as they say. Huawei still • We are reworking our converged RAN solution to put us
needs a HW change in most upgrades. even or ahead of Huawei.
• Is their success real? Can they convert marketing • Win, Win, Win. We have to add to the Verizon and AT&T
Early LTE wins to major customer wins? success with major wins in other regions.
Success • Fight marketing with marketing. E.g. can we increase our
trial/contract numbers by creative counting?

These are high-level, broad ideas.


Throughout the rest of this document, you’ll find specific counterpoints to Huawei’s strengths and
ideas for how to attack them. Section 4 provides a comprehensive summary.
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2 Huawei’s LTE RAN
Market Position
Huawei LTE Market Position
Introduction

Huawei is a top tier vendor – possibly #2


Analysts rank Huawei among the leaders:
•Their SingleRAN solution is a game-changer and market factor
•They have a rapidly growing base of 2G and 3G networks – mostly built on SingleRAN
•They have a large number of LTE trials - at least that’s what they claim
•They have at least two significant LTE contracts – maybe more

What Huawei is missing is a flagship LTE sale:


•Huawei did not win any of the first Japanese contracts (Docomo and KDDI)
•Huawei did not win either of the first two big US contracts (Verizon and AT&T)
•Huawei will get a large piece of China Mobile, but that won’t launch until late 2011 at the earliest

To remain among the leaders, Huawei must win one of the big European-based operators:
•Vodafone, Telefonica, T-Mobile, etc.

This section describes Huawei’s current position – and digs beneath the surface.

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Huawei LTE Market Position
What the Analysts are Saying
The rest of the vendor community will have to play catch up to Ericsson and Huawei.
IDC, April 2010
By many analysts’ tallies, Huawei is creeping up on
No. 1 infrastructure supplier Ericsson, The race is on with traditional
particularly in the LTE equipment sector. That’s market leader Ericsson taking the
partly because the scions of telecom, including early lead and fast rising Huawei
Nokia Siemens Networks (NSN), Nortel in aggressive pursuit.
Networks, Alcatel-Lucent and, yes, even IDC, April 10.
Ericsson, have a hard time pricing their products
as low as Huawei does.
Huawei, ZTE … are pretty
Thanks to these factors, Huawei is landing major much shoo-ins for a large
3G and 4G deals around the world – much of the percentage of the [China
reason it expects an almost 30 percent increase Mobile TD-LTE] contracts.
Huawei is likely to gain a
in sales for the year. And Huawei is making good share of the LTE SRG, June 10.
headway not just in emerging markets like infrastructure market, with
Africa, but in areas where NSN, Nortel, Alcatel- more early momentum than
Lucent, Ericsson and others tend to reign. Press it had in the 2G/3G sector.
report Jan10 Gartner, May 2010.

Reading these reports makes you believe that ALU and NSN are in a battle for 3 rd place.
•Danger: Analyst opinions can shape our customers’ initial opinions.
•Reading deeper into the reports, much of their opinions are based on information provided by Huawei!
•Our analyst relations team is working to shape the analyst opinions to be more favorable to ALU.

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Huawei LTE Market Position
LTE Trials
Huawei claims to have 60 LTE trials.
This shows the ongoing trials we can identify.
Note they are active in all regions. T-Mobile
Trial Mobilkom
Vodafone Trial
Trial
US Cellular TMN Swisscom
Trial Trial Trial China Mobile
Expo (TDD)
Cox
Telefonica
Trial
Trial
Softbank
Trial
Telecom Italia
Trial
Cricket
Trial CMCC-HK
Zain
Trial
Trial
MTS Uzbek.
STC Trial
AMX Telstra
Trial Etisalat
Trial Trial
Trial Maxis
Trial Singtel
Trial

KEY
Huawei’s claim of 60 trials compares to 45 from ALU, 45 from E/// and 25 from NSN.
Trial (public)
• We believe Huawei’s number is inflated - including lab demos, double-counting, etc.
Trial (rumored)
ALU has fewer claimed trials, but we are certainly not behind:
• In US, we have as many trials + two big awards
• In China, we’re working with both CMCC and CT – Huawei only CMCC
• In Europe, we have 10 placements vs. their 11
Alcatel-Lucent Proprietary/Confidential Jan 2010
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Huawei LTE Market Position
LTE Contracts
SingleRAN
Operator Assessment Award date Comments
Huawei claims 10 “LTE a factor?
Huawei won phase 1 (with E///) and reportedly
commercial contracts” 1 TeliaSonera Replaced by NSN
Phase 1: 01-09
performed well. However in phase 2 bidding, NSN bid
Phase: 01-10
• The list on the right shows the lower and replaced Huawei.
10 we think they’re talking Huawei will provide LTE as well as large-scale
about. Not all are legitimate. modernization of 2G/3G networks. Value €170M over 6
Telenor years. Huawei won based on “technical quality,
• Note that Huawei’s claimed 2
(Norway)
Significant win November 2009
reliability and commercial terms”.
Yes
number is 2nd only to NSN. We Telenor says this partnership could extend to other
don’t think NSN’s number is Telenor properties outside Norway.
valid either. Huawei lists China Mobile as a “commercial customer”,
• Note the impact of SingleRAN 3 China Mobile Shanghai Expo November 2009 but the only activity right now is the Shanghai Expo –
in the contract awards. we don’t think Huawei is being paid for it.
Proximus Huawei will upgrade the entire network, starting with
4 “LTE ready” November 2009 Yes
(Belgacom) 2G and 3G. No dates given for deployment of LTE.
Contracts Huawei is sole winner of LTE network that will cover
Vendor Net4Mobility all of Sweden by end of 2013. Also includes expansion
claimed 5 Significant win December 2009 Yes
(Sweden) of GSM network by 30-50%. Ericsson claims Huawei
ALU 3 won on price, not superior performance.
Huawei and NSN reportedly will win T-Mobile Germany
6 T-Mobile ?? April 2010 business, but no public announcement … and no Yes
E/// 5
contracts signed yet.
Zain Huawei built an “experimental LTE network” for Zain.
Huawei 10 7 Trial only May 2010
(Saudi Arabia) (So did Motorola and Ericsson.)
Wind Rollout of HSPA and LTE networks – plus IMS, fiber,
NSN 12 8
(Italy)
Significant win June 2010
network design/build.
Yes
MTS Huawei building trial network. No announcement of
Moto 2 9 Trial only? October 2009
(Uzbekistan) commercialization of LTE.
Huawei supplies 3G equipment to MTS in Armenia.
MTS/K-Telecom
ZTE 5 10 “LTE ready” ?? When LTE network is built, Huawei will get the Yes
(Armenia)
business.

Only 3 on Huawei’s list are confirmed and See “LTE CI Market Position” in marketing toolbox for other vendors’ contract lists.
represent true, near-term LTE contracts. http://wireless.app.alcatel-lucent.com/marketing_toolbox/competitive_intelligence/lte.htm

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Huawei LTE Market Position
2G/3G Market Share
2G/3G Market Share is an important predictor for future LTE sales.
This is particularly true for Huawei sales of the last 2 years, because these networks have been delivered
on the SingleRAN platform – allowing an easier transition to LTE.

Huawei: Significant uptrend over


last 3 year, but are they
finally flattening out?

ALU: We rose in a declining


market, the only vendor to
increase.

Sources: Dell’Oro and internal

Be careful with market share and financial results for Huawei. Since Huawei is not publicly traded,
getting hard numbers on shipments/revenues is difficult. They are often overstated.
Note the discrepancy within a single news report in January 2010:
•“Global telecom major, Huawei Technologies claims achieving the number one spot for wireless base station
shipments in the year 2009 overtaking market leader Ericsson.”
•“Its market share in the global telecom gear market stood at 20.1% at the end of Q3 2009 as compared to market
leader Ericsson’s 31.6% as per market research firm, Dell’Oro Group.”
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Huawei LTE Market Position
Is SingleRAN Fueling 2G/3G Growth?
The BTS3900 was launched in 1Q 2008
•This makes Huawei the first vendor to deliver a “next gen base station”
•Huawei is delivering most new GSM, CDMA and WCDMA networks via the BTS3900 family
•New BTS3900s are being portrayed as “LTE Ready”, whether LTE is planned or not.
•If today’s deployments are engineered right, LTE HW can be inserted in empty slots
•This builds a base of networks that should be “easy wins” for Huawei in LTE

Deployment status
•According to Huawei, 30 operators have adopted the BTS3900 over 50,000 sites.
Typical
•Industry analysts have slightly more conservative figures:
exaggerated
–Current Analysis says 10,000 units were deployed by April 2009 claim from
–TBR says 1.5 million TRXs were shipped by June 2009 Huawei

Customers who are Reportedly Deploying the BTS3900


•Telfonica-O2 (Germany)
•Axis (Indonesia)
•Telus/ Bell Mobility
•Vodafone
•America Movil
•T-Mobile
•Chinese operators

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Huawei LTE Market Position
… Or will 2G/3G Renovation Fuel LTE growth?
awarded to Huawei

LTE contract awarded to Huawei

LTE contract awarded to Huawei

Feb 2010

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Huawei LTE Market Position
How to Attack their Position?
Strengths Issues
•Aggressive behavior • Poor Reputation
• Low prices, high promises • History of inconsistent performance; Credibility issues
• Rapid expansion of 2G/3G base • Security concerns from government and business
• Chinese base and backing provide safety net • Exaggerated trial/contract counts are normal
•Product • Can they Win the Big Ones?
• SingleRAN provides entry, with promise of LTE • Often included in bids simply to lower the price
•Market performance • Will major operators be willing to depend on them?
• Contract wins lend credibility: Telenor, Net4Mobility • Rapid growth
• Trial participants everywhere • Will it put pressure on already weak services business?
• Can they maintain their low-cost profile while
supporting multiple markets and multiple generations?

Not everyone loves Huawei!


Read these comments from Gerson Lehrman Group in April 2010
“Huawei is going to implode and in a BIG way! Here are 5 reasons:
1. Giving away free mobile network hardware to win contracts does win new operator customers but that doesn't
mean the mobile operator loves you. They don't. They actually can't stand your presence within their network but
you just saved them over $300+ million for a national mobile network.
2. Customer relationship can not be performed by a dedicated team that doesn't speak to the rest of the Huawei
organization…
3. Arrogance killed Alcatel, Nortel and Lucent...trust me it will kill Huawei too!
4. Hiring new employees at a growth rate of 100% every 6 months leads to inefficiencies and stagnation …
5. Mobile operators will absorb all your new ideas and strategies but will not invest their future in you unless you’re
willing to give it all away again for free.”
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3 Huawei’s LTE RAN
Product Description
Huawei LTE RAN Product Description
Introduction

Huawei introduced SingleRAN (converged RAN) to the marketplace.


Now it has become a key factor in operator selection of vendors.

• The SingleRAN concept says one platform can support all RF technologies

• Huawei’s base station is called the BTS3900


• It supports GSM, UMTS, CDMA, TD-SCDMA, WiMAX and LTE
• The BTS3900 has been shipping for 2G/3G since 2008; LTE is being added now

• Huawei LTE delivery is in a similar timeframe to E/// and ALU; a little ahead of NSN

• Huawei will support both FDD and TDD on SingleRAN


• The TDD delivery roadmap is 3-6 months behind FDD

The other leading vendors also offer converged RAN for 3GPP RF (GSM, WCDMA, LTE).
• Only Huawei and ZTE cover all leading RF technologies.
• The difference is in the details – OA&M support, shared antennas, how many boxes required, etc.

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Huawei LTE RAN Product Description
Portfolio Overview
The BTS3900 is Huawei’s LTE eNodeB
• All configurations are based on three common units (BBU, RFU, RRU)
• Supports GSM, W-CDMA, CDMA, TD-SCDMA, WiMAX and LTE
• Single OA&M system works with any RF technology
• BTS3900 first introduced in 2008; 2G/3G base stations already deployed

Distributed Node B Micro Node B


Q2 2009
Macro Node B
Q1 2010 Multi-mode BTS

BTS3900C

DBS3900

BTS3900 BTS3900A
(Indoor) (Outdoor) RRU RFU

BBU
Huawei presents this as a complete, fully flexible portfolio. Two counterpoints:
• Only the distributed eNodeB was available in the first LTE release – macro, micro later
• Only two RF technologies can be supported at one time in a BBU – more than 2 require 2nd BBU
See Sections 3a/3b for more details on BTS3900
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Huawei LTE RAN Product Description
SingleRAN Concept
SingleRAN is Huawei’s marketing story re: BTS3900 evolution
• The idea is that you can deploy multiple networks using a single design/platform (e.g. GSM + UMTS)
• After deploying one technology, you can evolve the base station to add a 2 nd (see diagram)
• Advantages of SingleRAN:
1. Single BTS for multiple technologies simplifies OA&M, wiring, backhaul, real estate, etc.
2. BTS3900 is a modern/green base station, so it will be more cost effective than the old equipment
3. Operator can deploy BTS3900 today – and decide which next-gen technology to use later
4. Once BTS3900 is deployed for one technology, adding a second is cheap and easy (no overlay)

Adding LTE to G+U network:


• Simple: Add new LTE RF
boards and new baseband
boards.
Adding UMTS to GSM network:
• However: There wasn’t room
left, so a 2nd macro had to be
• Simple: Add new UMTS RF
stacked on top.
boards and new baseband
boards.
• Still have advantage:
Footprint, OA&M
• However: You had to pre-
engineer the network at
half-capacity to be able to
do this.

Huawei was first to market with SingleRAN – but other vendors offer similar advantages.
For example, Cosmote says Huawei SingleRAN saved 70% in footprint and 60% in energy over their old
GSM/UMTS equipment. This is true, but similar results would come from using anyone’s new equipment.
See Section 3c for more details on SingleRAN evolution.
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Huawei LTE RAN Product Description
BTS3900 LTE Roadmap
2009 2010 2011
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FDD
eRAN1.0 eRAN2.0 eRAN3.0

• Distributed eNodeB • Macro eNodeB • Pico eNodeB


• RRU 3201 • MBMS
• 700/AWS/2600/850/900/ • RAN sharing
1900 • 100 km cell radius
• 5/10/15/20 MHz • Rx diversity
• 15km cell radius • ICIC
• Basic SON • Enhanced SON

2009 2010 2011


1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
TDD
eRAN1.0 eRAN1.1 eRAN2.0

• Distributed eNodeB • 2300/2600 • Micro eNodeB


• 2300, 2600 (trial only) • 5/10/15/20 MHz • 4x4 MIMO
• 10/20 MHz • 4x2 MIMO • TD-LTE to TD-SCDMA
• 2T2R RRU • Enhanced SON handover
• 2x2 MIMO • VoIP
• FDD->TDD BBU upgrade
• Basic SON

These roadmaps are based on limited information. More to come …


Note that TDD is first released about 6 months after FDD.
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Huawei LTE RAN Product Description
OA&M
The iManager M2000 is Huawei’s Element Management System
Functions include data configuration, alarm monitoring, performance
monitoring, software upgrades, etc … classic functions for an EMS.
• Huawei is very clear that the M2000 allows you to run your SingleRAN
(2G/3G/LTE) networks from one place, using one team of people.
• "iManager M2000 is the unified platform that provides centralized
management to all wireless technologies of Huawei, including GSM, UMTS,
CDMA, WiMAX, LTE and more.”
• Another reference says the M2000 platform also manages the EPC and IMS.

Basic SON Functionality (eRAN1.0)


• Huawei tested so-called “SON Phase 1” in a trial with T-Mobile Austria during late 2009. Reports seem to indicate that
this basically included only Automatic Neighbor Relations (ANR).

Enhanced SON Functionality (eRAN2.0) includes:


• Automatic configuration
• Automatic Neighboring Relation
• Automatic detection of Physical Cell Identifier (PCI) conflicts, sleep cells, and antenna faults
• Mobile Robust Optimization (MRO)

Huawei is delivering it’s OA&M capabilities in stages – in a similar timeframe as all LTE vendors.
Huawei may have an edge with the single OA&M system that runs 2G, 3G and LTE.

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Huawei LTE RAN Product Description
Caution

The following sections give detail on Huawei’s LTE/SingleRAN product offer and
should help the reader to clearly understand what operators will get from Huawei.

Some of the information comes from Huawei, thus it is reliable only “in theory”:
• In other words, it clearly describes what they are promising.
• It doesn’t necessarily describe what they will actually deliver.

We often get comments from field trials that Huawei has used prototypes or has
adjusted parameters to ensure successful results. For example, one customer
commented that: “Huawei used March 09 alignment (instead of the required June 09) and
their mobile is not compliant with 3GPP Cat 3 definition.”

While this practice is not unusual (for any vendor), it is particularly common in this
fast-paced LTE market where customers want everything sooner than vendors are
ready to deliver.

Pay attention to the red boxes on each page – they provide the ALU counterpoint to
Huawei’s claims.

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Huawei’s LTE RAN

3a Baseband/Radio
Huawei LTE Elements
BBU3900 Baseband Unit

The BBU3900 is the digital baseband unit for the BTS3900 family and is used in all
configurations. It supports one or two technologies simultaneously (GSM, CDMA, WCDMA,
TD-SCDMA, WiMAX, LTE). The BBU3900 is 2U high, 310mm deep and 19” rack mountable.

Macro Macro
Indoor Outdoor

BBU

Distri-
buted
Micro

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Huawei LTE Elements
BBU3900 Control and Modem Cards
The BBU3900 chassis has eight slots into which different cards will be inserted based on the
technologies being supported. A working BBU will require a control card plus multiple
modem cards. (Some technologies will also require other special-purpose cards.)
The LTE control card is the “LMPT”
•The LMPT goes into slots G or H
• Two can be equipped for redundancy
•The LMPT has built-in FE/GE opt/elec interfaces
The LTE modem card is the “LBBP”
•The LBBP goes into slots A through F
F A E •Each LBBP card has 6 CPRI interfaces, but only 3 are
B F
PWR used currently
A C G •Note: In the first release of Huawei’s LTE BBU, the
N D H
PWR modem cards were double-height. In the second
release, they are now normal (single) height

Each RF technology requires its own unique


F PWR control and modem cards
LBBP •Slots A to F will be used for modem cards,
A LBBP
PWR transmission cards and lightning protection cards, so
N LBBP LMPT you normally can’t use six slots for modems
NOTE: The Huawei BBU supports many RF technologies, but only 2 at one time.
Why? Because there are only 2 slots in the BBU that can contain control cards.
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Huawei LTE Elements
BBU3900 LTE-only Specifications

Capacity
• Cells per LBBP: 3, each 2x2 MIMO @ 20 MHz
• 172 Mbps DL/57 Mbps UL per UE
Specifications
• Size: 84 x 446 x 310mm (HxWxD)
• Weight: 12 kg (full configuration)
• Power supply: -48VDC, +24VDC
• Power consumption: 250W max
• Temp range: -20 to 55 C

F PWR Interface with RRUs


LBBP • CPRI connection at up to 2.4 Gbps
A
LBBP
N PWR Transmission Interfaces
LBBP LMPT
• 2xFE/GE electrical
• 2xFE/GE optical

The BBU3900 above is the maximum configuration for an LTE-only installation.


In fact, only 2 LBBPs are required for a fully equipped LTE macro.
See Section 3c for mixed-technology examples.
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Huawei LTE Elements
Radio Unit Choices
Huawei provides two configurations for LTE radios – both are supported by the BBU3900:
1. Radio units (RFUs) are housed in a macro cabinet
2. Remote radio heads (RRUs) are mounted at some distance from the BBU
 RRU3201 – LTE only Being replaced by RRU3203?
 LRFU – LTE only Capacity: 2 carriers
Output: 2 x 40W **
Capacity: 2 carriers Frequencies: 2600/700/AWS
Output: 2 x 40W Availability: Q2 2009
Frequencies: 700/AWS/900/1800/2600
Availability: Q1 2010  RRU3808 – WCDMA/LTE
Capacity: 2 LTE carriers
Output: 2 x 40W
 mRFU – GSM/WCDMA/LTE Frequencies: 2100
Based on WCDMA RRU 3804
Availability: Q3 2009 (LTE)
Capacity: 2 LTE carriers
Output: 2 x 40W
 RRU3908 – GSM/WCDMA/LTE
Frequencies: 900/1800/850/1900
Availability: H2 2009 (for GSM/WCDMA) Capacity: 2 LTE carriers
Output: 2 x 40W
Note each
Frequencies: 900/1800/850/1900
RRU has a
Similar function to an mRFU
** Huawei’s FCC filing for the RRU3201 says 2x40W, different
but recent marketing info says 2x20? Availability: Q2 2009 (GSM/WCDMA)
form-factor.
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Huawei LTE Elements
LRFU/mRFU Macro-based Radio Unit
The BTS3900 macro base station has six slots for radio units (RFUs). There are different
flavors of RFUs to support different RF technologies (GSM, CDMA, WCDMA, LTE). The most
recent development is the mRFU which can be software programmed to support either GSM
and WCDMA - it will be extended to also support LTE.

Specs:
 WCDMA RFU: 4 carriers, 80W total
 mRFU: 3 carriers, 60W
 LTE RFU: 2 carriers, 40W each

Note: The availability dates for LTE support on mRFU


are soft. We’ve seen 2Q09, 3Q09 and 2010.
The confusion probably is because it will be available
for GSM/UMTS first – with LTE added in the future.

In the meantime, they will use the LRFU (LTE only).

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Huawei LTE Elements
RRU3201/RRU3203 LTE Remote Radio Head
The RRU3201 is Huawei’s original LTE RRU and has been used in early deployments.
In May 2010, Huawei filed a report with the US FCC for the RRU3203. This new RRU
looks identical to the RRU3201, with minor specification differences (see below).
RRU3203 differences
Twin TRX:
 Two Tx, two Rx, one feedback channel
 Each channel supports one carrier
Output power:
 40W per antenna port
 Measured: 36.3W to 37.2W
Other Specs:
 Frequencies: 700/AWS/2600 Only 700 filed with FCC

 Bandwidths: 5/10/20 MHz 1.4MHz -> 20MHz

 Size is different for 700 vs. AWS

We don’t have a good explanation yet for why Huawei released a


new RRU – rather than just a new version of the 3201.

Could there be contractual obligations requiring Huawei to


retrofit 3201s if a new version is released?
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Huawei LTE Elements
RRU3808 WCDMA/LTE Remote Radio Head

The RRU3808 appears to be based on the RRU3804, Huawei’s flagship WCDMA base
stations. The hardware is “LTE ready”, needing just a software upgrade to be able to
support both WCDMA and LTE (in the same frequency).

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Huawei LTE Elements
RRU3908 GSM/WCDMA/LTE Remote Radio Head

The RRU3908 is Huawei’s newest RRU – supporting GSM, WCDMA and LTE. The hardware
is “LTE ready”, needing just a software upgrade to be able to support LTE.

This RRU appears to be functionally similar to the mRFU radio


unit. Just as with the mRFU, the availability date shown is
probably for GSM/WCDMA – with LTE available later.

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Huawei LTE Elements
Compare with Other LTE Vendors

Alcatel-Lucent Huawei Ericsson Nokia Siemens


LTE carriers 6 6 6 3
(2x2 MIMO @ 20MHz)

Height 2U 2U 1.5U 3U
Baseband Unit
GSM, WCDMA,
RF techs LTE CDMA, TD-SCDMA, GSM, WCDMA, LTE GSM, WCDMA, LTE
supported GSM, WCDMA, CDMA planned
WiMAX, LTE
LTE carriers / 2 / 2x40W
Radio Unit 2 / 2x40W 3 / 3x60W
output power (LTE RFU)

2 / 2x40W 2 / 2x40W 2 / 2x30W 1 / 1x60W


(RRU3201/3203) (RRUS11)
LTE carriers / 2 / 2x40W
Radio Head
output power (RRU3808)
2 / 2x40W
(RRU3908)

Huawei Strengths:
Huawei Issues:
• BBU can support multiple technologies
• BBU can only support 2 technologies
• Radio units can support multiple
simultaneously
technologies
• Availability dates are floating
• Small BBU cards for flexibility
• Why was RRU3201 replaced?
• Integrated GE interfaces

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Huawei’s LTE RAN

3b Configurations
Huawei LTE Configurations
DBS3900 Distributed Base Station

The DBS3900 is Huawei’s solution for overlaying existing networks and for applications with
space constraints. It initially consisted of two parts: the BBU3900 and the RRU3201.
• It supports other RRUs as they become available.
• The RRUs support daisy-chaining, so there can be more than 3 RRUs.

Capacity (as shown)


3 carriers, 2x2 MIMO
40W per channel
Interfaces
FE or GE (elec. or opt.)
Comments
The Physical Throughput: Up to 173 Mb/s in a downlink with 2×2
MIMO; 64QAM, 20 MHz and 84 Mb/s in an uplink with 1×2 SIMO,
64QAM, 20 MHz per cell.

Flexible Bandwidth Support: The BBU3900 LTE supports channel


bandwidths of 5, 10, 15, and 20 MHz in the first release.

Note that these comments apply to all configurations.

Huawei’s first LTE release, eRAN1.0, was based on this


distributed solution.

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Huawei LTE Configurations
BTS3900 Indoor Macro

The Indoor Macro BTS meets ultra-high capacity requirements for dense urban application.

Capacity
6 carriers, 2x2 MIMO (12 total)
40W per channel
Interfaces
RFU FE or GE (elec. or opt.)
Specifications
Size: 900 x 600 x 450 mm
Weight: 120 kg (typical)
Power Consumption: 2400W
(6 x 2x2MIMO @ 10MHz)

BBU Two macros can be stacked, providing double capacity in the


same footprint. The physical design of the cabinet creates a
cooling chimney when stacked.

At MWC 2010, Huawei showed another double-capacity


configuration called the BTS3900L. It again appeared to use the
same elements - simply combining them into a single cabinet.

The macro was first available for LTE in eRAN2.0, 1Q2010.

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Huawei LTE Configurations
BTS3900A Outdoor Macro

The Outdoor Macro single cabinet BTS will also be applied in high capacity situations, but
is in an enclosure for outdoor deployment. Options are provided for different sizing and
for inclusion of batteries.

Capacity (single)
3 carriers, 2x2 MIMO
40W/channel
BBU Capacity (double)
RFU
6 carriers, 2x2 MIMO
40W/channel
Interfaces
FE or GE (elec. or opt.)
Specifications
Size: 900 x 600 x 450 mm
Power Consumption: 2440W
Standard size Standard size Double size (6 x 2x2MIMO @ 10MHz)
(w/ batteries)

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Huawei LTE Configurations
DBS3900 Outdoor Distributed Base Station

Huawei also provides a solution for deploying the BBU outdoors.

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Huawei LTE Configurations
BTS3900C Micro Outdoor

The Micro is targeted at “suburban applications, blind spots, and hot spots”. Note that the
BTS3900C has not been marketed for LTE yet, but is part of their CDMA and WCDMA offer.

Capacity (assuming RRU3201)


1 carriers, 2x2 MIMO
40W/channel
Interfaces
FE or GE (elec. or opt.)
Specifications
Weight: 35 kg (typical)

RRU3804
(or RRU3201?)
The availability of the micro is unclear. Sometimes it is shown,
BBU3900 sometimes a pico is shown. There are no firm delivery dates
for either one.
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Huawei LTE Configurations
Compare with Other LTE Vendors

Alcatel-Lucent Huawei Ericsson Nokia Siemens


Macro indoor Yes Yes Yes Yes*

Macro outdoor Yes Yes Yes Yes*

Micro/Mini Yes Yes

Distributed Yes Yes Yes Yes*

1st BTS release 2008 2008 2009 2005

1st LTE release Q3 2009 Q3 2009 Q2 2009 Q4 2009


* NSN stacks Flexi units to
make each configuration

Huawei Strengths:
• Full range of options
Huawei Issues:
• All configurations built from same
elements • Many, confusing options
• “Mature” base station design • Uncertain small cell direction
• All RF technologies available

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Huawei’s LTE RAN
SingleRAN/Evolution

3c
Huawei’s SingleRAN
BTS3900 Supports Multiple Technologies
The BTS3900 is designed to be the only base station that the operator needs to deploy. It
was released in 2008 and has been deployed for GSM, CDMA, WCDMA and WiMAX
applications. LTE (FDD and TDD) is the next technology to be added.
BBU 3900
The BBU3900 can contain two control boards, therefore can
support two technologies simultaneously. If there is empty
space in an existing BBU, you can add a 2nd technology by
adding appropriate control and modem cards.
RFUs
The macro radio shelf can contain 3 to 6 radio units. Again, if
there is empty space, you can add a new RFU into any empty
slot. (If mRFUs are deployed, you could do a software upgrade
to change an existing one to support LTE.)
RRUs
Huawei has multiple flavors of RRU, several of which support
multiple technologies (in a single frequency band). You can
reuse an appropriate existing RRU or deploy a new one.

Since the BBU, RFU and RRU are the key elements in all BTS3900s, any of the configurations
can be easily upgraded – macro indoor, macro outdoor, micro and distributed.
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Huawei’s SingleRAN
SingleRAN Examples
These pictures show how to add LTE to an existing WCDMA deployment. Note addition of
hardware required in both baseband and radio elements.
BTS3900 (WCDMA only) BTS3900 (WCDMA+LTE)

W W W W W W
C C C C C C L L L Any tech RFU
D D D Add 3 LTE RFUs D D D T T T can be plugged
M M M M M M E E E into any slot.
A A A A A A

Add LTE controller BBU supports 2


and modem technologies
simultaneously

DBS3900 (WCDMA only) Add RRU


LTE
Most RRUs
Add LTE controller support multi-
and modem techs
WCDMA
WCDMA
… or you can
WCDMA
just deploy
WCDMA another RRU

DBS3900 (WCDMA+LTE)

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Huawei’s SingleRAN
BBU3900 Options
The key cards in the BBU are the control and modem cards (as discussed in the last
section). Because of the independence of the BBU slots, multiple combinations of
technologies can be supported.

WCDMA modem Transmission WCDMA modem WCDMA modem


F WCDMA modem
PWR F PWR
GSM control + WCDMA modem WCDMA modem
A WCDMA modem modem A LTE modem WCDMA control
N WCDMA modem WCDMA control
PWR N PWR
LTE modem LTE control

GSM + WCDMA WCDMA + LTE

empty Transmission CDMA modem CDMA modem


F empty
PWR F CDMA modem CDMA modem
PWR
GSM control +
A LTE modem modem A LTE modem CDMA control
N PWR N LTE modem LTE control
PWR
LTE modem LTE control

GSM + LTE CDMA + LTE

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Huawei’s SingleRAN
Radio Units

Each RRU in Huawei’s portfolio supports a different combination or technologies. The


RRU3804 is a multi-carrier unit that will support both WCDMA and LTE. It can be
reprogrammed as the network evolves.

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Huawei’s SingleRAN
Example: WCDMA/LTE

Huawei BTS3900 WCDMA networks are “LTE Ready”. This means the operator can deploy
LTE without replacing equipment, however they still must upgrade SW and/or HW.

New HW for
different
band

HW upgrade
required

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Huawei’s SingleRAN
Example: WCDMA/LTE
New WCDMA+LTE network
Existing WCDMA network Each base station has 3 5MHz WCDMA carriers
Each base station has 3 5MHz carriers And 1 20MHz LTE carrier

Transmission Transmission
F PWR F LTE modem
PWR
A A WCDMA modem LTE control
WCDMA modem
N PWR N WCDMA modem WCDMA control
PWR
WCDMA modem WCDMA control

WCDMA only WCDMA + LTE

Capacity:
Capacity:
•Each WCDMA modem card supports 3s2c
•Each WCDMA modem card supports 3s2c •Each LTE modem card supports 3s 2x2 MIMO (@20 MHz)
• Could deploy 2 or 3 modem cards
depending on growth planning
Interfaces:
Interfaces: •2 FE connections to network for WCDMA (1 from
WCDMA controller, 1 from transmission card)
•2 FE connections to network (1 from
WCDMA controller, 1 from transmission card)
•3 CPRI links to RRUs (from modem cards)
•3 CPRI links to RRUs (from modem cards) •1 GE connection to network for LTE (from LTE modem
card)

BBU engineering isn’t consistent across technologies, so the operator must design the
WCDMA network with the intent to upgrade to LTE. Otherwise, change can be difficult.

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Huawei’s SingleRAN
Example: GSM/LTE
Two steps in this evolution:
1.Addition of GSM 1800 and LTE 2600
2.Reduction of GSM900 – replaced with LTE900

If the GSM900 was deployed using MRFUs instead of GSM-specific RFUs, the second
step can be done via software instead of replacing RFUs.

G G G L L L G G G L L L
1 1 1 2 2 2 1 1 1 2 2 2
8 8 8 6 6 6 8 8 8 6 6 6
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0

G G G G G G
9 9 9 9 9 9 G G G G G G G G G L L L
0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0

G444 G666/LTE G444/LTE (wider bandwidth)

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Huawei’s SingleRAN
SingleRAN Realities
Huawei portrays SingleRAN evolution as a simple upgrade, typically requiring only
software. Let’s look a little closer at some of the real limitations.

Adding the 3rd technology


requires a 2nd BBU.

Using an MRFU will simplify


things by allowing a SW-only
upgrade of radios.
However, you either:
• Bought unneeded capacity
initially or
• Must decommission the
original RF network first.

New radio and New radio and BBU Empty space required for
BBU hardware hardware simple upgrade. Does
operator want to initially
deploy half-full macros?
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Huawei’s SingleRAN
SingleRAN@Broad
What is it?
At Mobile World Congress 2010, Huawei unveiled their SingleRAN@Broad marketing campaign, discussing
expansion of mobile broadband to LTE and beyond.
This continues their recent history of rolling out new campaigns at MWC:
2008 – Fourth Generation BTS; 2009 – SingleRAN; 2010 – SingleRAN@Broad
The diagram on the right shows the basic
principles of SingleRAN@Broad:

1.Capacity will increase by 500x


 New topologies
 New use of spectrum
 New technology

2.OPEX per bit will drop to 1/35th


 RAN site savings
 Transport savings
 Improved OA&M tools

3.User experience will increase as a


result
 Voice
 Data

Be Careful: This is not a product/offer. There are no specific Huawei products mentioned.
Any vendor could draw this chart.
• “SingleRAN” is a concept with specific current products that support it.
• “SingleRAN@Broad” requires future developments like LTEAdvanced to achieve the promised results.
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Huawei’s SingleRAN
How to Position Against It?

Huawei Strengths: Huawei Issues:


• Single design structure for all RF •“Software only” upgrade claim
technologies ‐ Yes if RRH is the right one
‐ Yes if frequency is the same
• Single OA&M system for all ‐ Never true in BBU – always need HW
applications
•“Simply add cards to BBU” claim
• Relatively simple evolution
‐ Only works if you have empty space
• Numerous options for upgrade ‐ Did you overbuy initially?
• Operators are already deploying ‐ Or did you pre-equip with LTE?
“LTE Ready” networks ‐ How did you know where/how much?
• Customers have bought into the ‐ Do you have both GSM+UMTS already?
‐ You’ll need a new BBU.
converged RAN concept and see
Huawei as the leader •Generations
‐ Huawei is cheap in initial purchase and
expensive in extensions. If the customer
didn’t lock-in prices when first deploying
SingleRAN, they may get surprised.
‐ Huawei has reputation of coming out with
new hardware and abandoning the old.
Example, RRU3201 -> RRU3203.

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4 Huawei’s LTE RAN
How Do We Win?
Beating Huawei
Introduction
Huawei is Formidable – but NOT Unbeatable
There are three general directions we can take to attack Huawei:

1. Attack their “Market Leadership Position”


• Are they really a leader? Analysts think so, but they still haven’t won the “big LTE contracts” or delivered
the “big LTE networks”. There are still question marks here.
• The next 6 months will tell whether Huawei can continue their highly respected position.

2. Attack their LTE product offer


• This is a tough one, because Huawei’s SingleRAN concept is a game-changer for wireless – and the BTS3900
eNodeB matches the competition in capacity, flexibility, etc.
• We must redirect the argument - don’t start with a side-by-side comparison against our product. Instead,
talk about network design – “Is a converged RAN really the most cost-effective solution for you?” Talk about
the total network – end-to-end services, network reliability, total cost of ownership, etc.

3. Use fear, uncertainty and doubt (FUD)


• Huawei has a history of unreliability and questionable business practices. Even if those are problems of the
past, we still put questions in our customers minds
• This category should really be the foundation when competing with Huawei. “Who do you want as a
partner?” “A low-cost manufacturer or Bell Labs?” “A seller of box-oriented solutions or an end-to-end
solution?” “A company with a long history of meeting your needs or an upstart with a spotty reputation?”

The next page has a summary of Huawei’s strengths and weaknesses. Following that are ideas for
attacking Huawei – organized in the 3 categories listed above.

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Beating Huawei
Strengths/Weaknesses
Strengths Issues
•Low prices • History of inconsistent performance
•High promises • Credibility issues
• Security concerns due to government/military links
•“Guaranteed” China volume helps scale
• Growth and globalization will put pressure on their
•R&D strength in numbers and accomplishments low-cost profile
Business

•Customer-centric approach (quickly bring • Still not fully embraced by operators, often brought
resources to bear on customer hot buttons) into bids simply to lower prices
•Turning corner from tier 2 vendor to major • A weak reputation in the professional services
player in wireless infrastructure market compared to Ericsson, NSN and ALU.
• Huawei is currently challenged by ZTE for 3G
leadership in China. To lead worldwide, Huawei
must lead in its domestic market.
•Strong presence in LTE trials • Still selling boxes, not end-to-end
•Wins with TeliaSonera, Telenor, Net4Mobility • Loss at TeliaSonera!
•Strong growth in wireless (GSM, CDMA, WCDMA) • Marketing says “software upgradable”, but most
•Single base station for all technologies upgrades require some new hardware
LTE

•2008/2009 deployments are “LTE Ready” • Capacity limitations on LTE dual-mode BBU?
•Flexible BBU-based solution • No evolution path from older base stations (pre-
•“Easy” evolution to LTE BTS3900); requires overlay with new hardware
•Strong “green” marketing => reduced TCO

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Beating Huawei
Attack Market Position

Ideas:
Attack Huawei’s
• ALU is a tier 1 vendor, Huawei just want to be
claimed “leadership • How many trials does Huawei really have?
position” • How many significant contracts does Huawei really have?
• ALU has Verizon and AT&T plus a long list of significant trials.
• Huawei won TeliaSonera … but then lost it
• Huawei is a recent large contributor to standards bodies – ALU has
been a leader in 3GPP and 3GPP2 for years

Messages:
•“End to end LTE solution leader”
•Huawei is unclear in their EPC, ecosystem, transport solutions
Attack Huawei’s •ALU has leading solutions in IMS, applications, META, …
marketing messages •“Green solution. TCO savings.”
•Many of their claims are based on generic LTE advantages
•We can also demonstrate TCO savings with our solutions via Bell
Labs Modeling
•“Software Defined Base Stations”
•Most of H’s base station evolutions require new HW, not just SW
•SDR? We’ve done it for years. We’ve also led in the
development of MIMO, SON, OFDM, beamforming, flat IP …

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Beating Huawei
Attack Product

Examples:
• SingleRAN’s biggest differentiator was time-to-market – Huawei doesn’t
Attack Huawei’s have a TTM advantage for LTE
• The BTS3900 BBU has engineering restrictions and capacity limitations
LTE offer
• Their EPC solution is evolved from their GSM/WCDMA mobile core
• Limitations in OAM tools and methodical/structured procedures

Areas:
• Huawei still has a small embedded base
• You need an embedded base in order to evolve it
Attack Huawei’s • We have CDMA and HSPA market leadership
evolution story • The Huawei evolution story is focused on the new BTS3900
• Evolution from previous versions is weak/ignored
• Churn, churn, churn – evolution requires new hardware/software

Reports:
Attack Huawei’s • The BTS3900 looks good on paper. How does it really perform?
• Recent outages in Canada reflect poorly on Huawei (see next slide)
BTS3900 performance
• Reports from China indicate Huawei is missing promises, slipping
deliveries and delivering reduced capacity solutions

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Beating Huawei
Example of Product Failures
 In late February, a major impacting network outage that lasted in the
3G Network Outage at Bell regions of 4 hours in Toronto that degraded 3G data services in Telus and
Bell networks. Toronto is Huawei's main market. The feedback from local
Canada and Telus Mobility, teams was that Huawei's capacity claims or engineering dimensioning did
February 2010 not support the traffic demand and did not live up to expectations,
possibly the Radio Network Controllers (RNC) were under provisioned. Our
local sales teams confirmed that Bell Mobility network outages were
caused by a failure in Huawei's RNC in the Bell network and their technical
“ Bell had a six hour degradation on two teams were still investigating this case.
RNCs last Friday. According to TELUS the
RNCs were under provisioned so they were
running hot. Telus and Bell Mobility RAN  Based on information from the Sales Teams, it seems that Telus SGSN
share so an outage actually effects both” (provided by NSN) was ‘flooding' Bell 's RNC (provided by Huawei) with
(Alcatel-Lucent Canadian Teams) traffic (Multi-Operator Core Network - MOCN environment). The amount of
concurrent traffic generated by the Telus SGSNs caused the degradation in
Bell 's Huawei RNCs. Some of the causes of the failure may have been
“Many Telus and Bell 3G (Apple iPhone, problems with the SGSN configuration in Telus, bad dimensioning of
Blackberry Bold, HTC Hero) users Huawei's RNC or any bug in RNC/SGSN. However, independently of the root
experienced a 4 hour outage in the Greater cause of the failure the RNC should arguably have been more resilient
Toronto Area yesterday. Service was during the overload. This event questions whether Huawei's RNC provides
resumed last night. The cause of is the issue the Telco grade high traffic performance that is expected in demanding
still remains unknown, but Telus says it was markets.
caused by a “3rd party vendor”. All users  More details available at ‘Alerts’ : http://wireless.app.alcatel-
are advised to perform a soft reset on their lucent.com/marketing_toolbox/competitive_intelligence/wireless.htm
handset”
Source:

- Toronto outage, February 25th , 2010


http://www.aingaran.com/4-hour-3g-outage-in-toronto-for-bell-and-telus

- Sales Teams

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Beating Huawei
Use FUD
Examples:
• Huawei’s a privately held company and their financials are “non-
transparent”
Attack Huawei’s • Huawei reports strong growth in “contracts”, not “revenues” – not always
credibility the same thing
• Won’t talk directly about financing from the Chinese government
• Repeated reports of ethical problems
• Governments have security concerns, including reports of spying by
employees and close ties to the military (note recent problems in India).

Examples:
•Huawei is investing in local resources now … it will take sometime for these
teams to be well established
Attack Huawei’s
•Limited professional service capabilities
•They’re experiencing rapid growth. How will it impact them?
lack of maturity •Can their support structures handle the growth?
•Can they be a true global vendor (rather than low-cost box vendor)?
•They buy market position via low entry costs – when do they cash in?
•Limited experience with tier 1 operators

Alcatel-Lucent Proprietary/Confidential
60 | Huawei LTE RAN CI | June 2010 All Rights Reserved © Alcatel-Lucent 2009
Beating Huawei
More FUD

Examples:
• Promises made in sales cycle must be negotiated post contract –
often creating costly changes
Attack Huawei’s • Huawei notorious for under-pricing an initial deal, only to gouge the
track record customer on future needed features and licenses
• Huawei has a history of discontinuing product lines deployed in the
field requiring costly upgrades or replacements over time
• Huawei creates a false appearance of being responsive, e.g., Flying in
100’s of people from China to fix a problem

For published articles and more detail on these issues,


read “Huawei – The Unpleasant Truths” (updated quarterly)
http://wireless.app.alcatel-lucent.com/marketing_toolbox/competitive_intelligence/wireless.htm

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5 For Further
Information
For Further Information
Marketing Toolbox for Competitive Intelligence

 To communicate to the ‘wider Wireless community’ CI analysis, reports and product


benchmarks produced by different CI groups

http://wireless.app.alcatel-lucent.com/marketing_toolbox/competitive_intelligence/lte.htm

Huawei LTE RAN Analysis

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63 | Huawei LTE RAN CI | June 2010 All Rights Reserved © Alcatel-Lucent 2009
For Further Information
Wireless CI Forum
For the ‘wider Wireless community’ (GSM, CDMA, WCDMA, Mobile NGN and LTE). Allows discussion on
news, products, issues, field experiences, knowledge sharing and expression of opinions related to
Wireless infrastructure competitors
http://forum.app.alcatel-lucent.com/viewforum.php?f=236

Alcatel-Lucent Proprietary/Confidential
64 | Huawei LTE RAN CI | June 2010 All Rights Reserved © Alcatel-Lucent 2009
www.alcatel-lucent.com
www.alcatel-lucent.com

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65 | Huawei LTE RAN CI | June 2010 All Rights Reserved © Alcatel-Lucent 2009

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