www.zte.com.cn

Managed ServicesValue Appreciates Profession

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Working closely with you, ZTE determines and applies effective methods for reducing and controlling capital and operational expenses.

Overview

In the telecom industry, intense competition and complicated network operation

and management put great pressure on operators. To achieve sustainable

enterprise development in a rapidly changing market environment, operators

must adapt business and management changes in both high-growth markets and

developing markets for management efficiency improvement and cost reduction.

ZTE Managed Services helps operators deal with operation and maintenance

challenges caused by technology updates and network convergence, develop core

business, improve operation efficiency, network quality and user experience, and

achieve cost reduction and revenue growth.

Managed Services

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ZTE Managed Services is a

trusted long-term solution that

allows operators to focus on

core business and market share. In close

cooperation with operators, this solution

intends to keep and improve network

availability and reliability, maintain high

network quality, and improve end-user

satisfaction. The following is a summary

of benefits of ZTE Managed Services

solution.

Managed Services

After long-term cooperation with

operators, ZTE can profoundly understand

local market and the challenges faced

by the operators, and develop more

targeted solutions that help the operators

to create more value. On the one hand,

ZTE provides operation and maintenance

intelligence and improves operation and

maintenance efficiency by implementing

standardization processes, and integrating

and deploying advanced operation tools.

On the other hand, ZTE help operators

design sound business development

strategies to achieve revenue growth

through long-term tracking and analysis

of the market and end users.

Operators can mobilize resources to

meet the network and service growth

requirements. Lack of experience may

prevent quick launch of new services

due to rapidly changing market and

technology. ZTE Managed Services help

operators adapt to new technologies.

Operators will be benefited from quickly

launching new services and sharing

ZTE’s global expertise and leading

technologies.

ZTE provides centralized network

management and innovated field

maintenance management to avoid

potential risks and reduce costs.

Furthermore, ZTE supports organization

and workflow optimization based on

the actual operation conditions. The

optimization reduces unnecessary and

overlapping positions, and thus improves

operation efficiency and shortens the

incident escalation process.

With considerable experience and

professional competence, the team

responsible for the Managed Services

solution is capable of meeting the needs

of operators for network assurance,

improving network performance with

prompt response, handling faults

without service interruption, and

supporting continuous service and

customer experience oriented network

optimization. All these capabilities help

operators enhance end-user satisfaction.

Operators become aware that it is vital

to change focus from technology to

customer and service. Routine network

operation, although still very important,

should not be considered as the core

competency of an operator. By choosing

Managed Services and outsourcing

operation and maintenance, operators can

be relieved from complicated technical

issues and focus on the core competence

such as strategies, marketing & sales,

customer care, and billing. ZTE will deal

with all technical issues for the operators.

Create Value IncreasinglyLess Time to Launch New Services

OPEX Saving and Efficiency Improvement

Network Assurance and Improved Customer Experience Focusing on Core Business

Benefits

Create Value Increasingly

Less Time to Launch New Services

OPEX Saving and Efficiency Improvement

Network Assurance and Improved Customer Experience

Focusing on Core Business

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ZTE Managed Services Solution

ZTE Managed Services is a

solution that can be tailored

to meet different requirements

from customers. Through the large

number of projects around the worlds,

ZTE have established the advanced

delivery capability, accumulated rich

experience in network operat ion

and maintenance, HR transfer, asset

management, contract management

and other operation management

capability. In addition, new technologies

and tools, such as CEM and SQM,

are applied in the solution to improve

delivery quality and help operators

develop more business opportunities

and create more value.

Network Operation and MaintenanceZTE provides traditional Network

Operation and Maintenance services

for various technologies (CDMA, GSM,

Telecom Network Enterprise/Government Network

Business

Service

Network

Operation Consultancy Customer Experience Management

New Service Launch

Consultancy

Service Provisioning

Management

Service Quality

Management

NOC OperationPerformance

ManagementCPE Management

OSS Integration and

Transformation

Field MaintenanceSpare Parts

ManagementEnergy Management IT System Management

UMTS, LTE, FTTx, and IPTV), such as

NOC Operation, Field Maintenance,

Performance Management, Spare Parts

Management, and CPE Management.

In order to improve operation and

maintenance efficiency and reduce

the cost, ZTE extends the outsourcing

model to support network equipment

maintenance. The extended services

inc lude Energy Management , IT

Managed Services, and OSS Integration

and Transformation. By using these

services, operators are released from

network operation and maintenance to

focus on their core businesses.

Service Operation ManagementWith the growth of data services,

operators focus more on service KQI

than network KPI, and service quality

management becomes more important.

ZTE supports effective monitoring,

analysis, and optimization to improve

the quality of services. Meanwhile,

necessary support is available for

launching and provis ioning new

services, assisting operators expand

their businesses.

Business Operation SupportZTE can monitor and analyze customer

experience indicators and find the

causes that affect customer experience

based on a large amount of key service

performance data and user data from

different dimensions. The business

operation support prevents customer

churn and profit decrease and achieves

better business operation for operators.

Z T E c a n p r o v i d e c o n s t r u c t i v e

suggestions for business operation in

the local market of operators based on

the analysis results, and help operators

design business development and

expansion strategies and plans.

Managed Services

Stable Effective Controllable Advanced

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Global Delivery ExperienceZTE has won more than 125 global Managed Services contracts, covering 160,000 sites

and 140,000,000 subscribers of 45 operators and more than 132,000 kilometers of OFC

maintenance, set up 14 regional service platforms serving over 100 countries and regions

around the world, and secured abundant O&M resources. ZTE is able to provide the most

competitive customized O&M services for customers around the world through global

distribution of resources and efficient organizational management.

Cooperation with morn than 3,000 Local Service Partners

050

100

150

200

250

300

350

400

So

utheast Asia

Asia and

Pacific

Russia

So

uth Asia

No

rth Africa

So

uth Africa

Mid

dle E

ast

Mid

dle-W

est Africa

India

East E

urop

e

West E

urop

e

No

rth Am

erica

No

rth Euro

pe

So

uth Am

erica

Strategic PartnershipsZTE has more than 3,000 certified service partners in the whole world. The partners come

from various industries, such as logistics, network buildup and construction, equipment

installation and commissioning, operation and maintenance, and consultancy support. ZTE

builds up partnerships with leading logistic companies.

Managed Services

Our Advantages

North America

South America

Canada PMI Venezuela CADAFE Colombia Comcel Colombia Telefonica Chile Telefonica

Africa

Egypt Etisalat Ghana GLO MTN Nigeria/Swaziland Kenya Orange Telkom South Africa Cell C Angola Mundo Startel

Europe

Poland Polkomtel Austria H3G

Middle East

Saudi Arabia Atheeb Saudi Arabia STC Saudi Arabia Zain

China

China Mobile China Unicom

CIS

Uzbekistan UCELL Tajikistan TKMobile

Asia

Indonesia HCPT Nepal Ncell Pakistan Telenor Pakistan CMPark Pakistan Moblink Malaysia Digi India Aircel/MTS/TTSL

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Professional Service Tool Set

ZTE Service Tool Set is a set

of special tools covering all

network services and resources

and different phases, from service

provisioning to service assurance. ZTE

Managed Services and ZTE Service Tool

Set can be combined to ensure smooth,

easy, and efficient routine operation.

Resource management, service

activation, and workforce management

supports the provisioning of end-to-

end services.

Unified fault management, performance

Service

Resource

Unified Interface Platform &Comprehensive report Present

CM/SARM

CEMC

SQM

PMS FMS E-FlowB2BESB

WFMS

ITNMS

SLA

TT & WFMSIT NE, NMS, Probe

management, integrated IT network

management, and electronic operation

& maintenance flow (E-Flow) support

comprehensive Multi-Technology

Mult i -Vendor (MTMV) network

management and electronic operation

& maintenance works.

Customer Experience Management

Center (CEMC) and Service Quality

Management (SQM) tools are used

to upgrade operation & maintenance

features from the network layer to the

business, service, and customer layer.

All network operation & maintenance

tools can be accessed, centralized,

and integrated through the Portal.

Service Level Agreement (SLA)

p resents ne twork ind ica to rs ,

business indicators, and operation

& maintenance indicators for unified

management, and supports statistics

and visualization of network quality

and operation &maintenance actions.

Enterprise Service Bus (ESB) supports

integrating the service tool set with

the existing tools of other vendors.

Managed Services

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Managed Services

Critical Successful Factors

Comply Law Closely Partnership

RespectIndividual

Seamless Transition

TUPE

Local Labour Law

Customer

Incumbent MSV

Labour Union/

Work Council

Care for Hearts & Minds Transfer Plan

Business as

Usual (BAU)

Risk Mitigation

Recruiting

Training

System

Performance

Evaluation

Reward

System

HR

Planning Reasonable Transformation

Design Corresponding Training

Diversity Channels

Better / Match

Knowledge Management Matched

to Career Path

Critical Incidents

Inputs to Training &

Reward Allocation

Big Family

Culture Harmonization

Multi-national Working Environment

Employee

Relationship

HR Solution

In order to meet the requirements of customers,

ZTE provides the whole set of HR solution for

MS project. It includes HR transfer, Organization

Transformation, Performance Management and

etc. According to the best practice, we think these

factors as following pictures are very important

during different period. During Transition period,

if there is need to transfer employee, we focus

on local law, setting up the closely partnership,

how to respect transferred employee and

detailed transition plan; during operation period,

we provide effective ways to Human Resource

Management corresponding our MS strategy.

Transition period

Post-Transition period

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Global Network Operation Center in Budapest, Hungary

On M a y 2 n d , 2 0 1 2 , Z T E

l a u n c h e d a n e w G l o b a l

Network Operation Center

(GNOC) in Budapest, Hungary, which

is intended to improve management

quality for telecom operators and

expand delivery capacity in Europe

for ZTE. Based on the new GNOC,

ZTE provides European te lecom

operators with high speed, quality-

guaranteed, and efficient management

services. The new GNOC, providing a

comprehensive management service

solution, consists of a customer service

center, a network monitor center,

Global Network Operation CentersGlobal Network Operation Center in Delhi, India

The Global Network Operation

Centre (GNOC) in Delhi, India is

the largest NOC of ZTE outside

China, which remotely manages and

monitors services for Indian telecom

operators. ZTE has invested over US $4

million dollars to set up the GNOC. The

GNOC establishment is an important

part of ZTE’s global strategy and the

GNOC becomes a showcase of ZTE’s

excellent engineering capabilities.

Spreading over 15,000 square feet, the

GNOC is located in Gurgaon and has

200 employees, including 80% local

employees. The GNOC is integrated

with ZTE Global Customer Support

Center (GCSC) in China and Local

Customer Support Center (LCSC) in

Delhi, India to enhance cooperation

between ZTE and telecom operators.

These three centers serve as backup

to each other. Deployed with the

latest ZTE equipment and advanced

technologies, the GNOC provides a

unified management platform that helps

Indian telecom operators reduce their

Total Cost of Ownership (TCO). Tata

Teleservices is the first operator to use

the services provided by the GNOC.

The GNOC provides various services

GNOC

to telecom operators in India with the

aim of reducing their total operation

and maintenance costs, including the

following three key services:

Utility Network Management System

(UNMS) supports personalized

service management depending on

the needs of different operators.

Resource Management System

(RMS) manages ne twork and

business resources effectively.

Electronic Operation & Maintenance

System (EOMS) supports effective

duty management.

a fault handing center, a network

performance optimization center, a call

center, and a spare part management

and repair center.

T h e n e w G N O C , w h i c h c a n b e

expanded to 600 square meters, can

accommodate 100 technicians and

experts. It is capable of managing

up to 40,000 network elements, and

supervising and managing almost all

types of elements in fixed networks

and mobile networks.

ZTE has lots of projects and great

partners in Europe. With the rapid

market expansion, ZTE increases

investments in Europe. The GNOC is a

new investment about ten million Euros.

ZTE, having a subsidiary in Hungary,

chose Budapest as the location of the

GNOC due to good humanities and

natural environment of the city.

Managed Services

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Reference CasesO

n March 2010, H3G Austria

chose ZTE as its partner to

deploy a high-performance

and future-proof mobile broadband

network. The swap of 4080 base

station sites and the reconstruction

of transmission and core networks

were required in addi t ion to s ix

years of managed services. ZTE

Managed Services solution provides

corrective maintenance, preventive

maintenance, change management,

spare parts management, performance

m a n a g e m e n t , c o n f i g u r a t i o n

management, quality management,

and expert technical support. During

the swapping of H3G base station

sites, large amounts of third-party

base stations were replaced, and the

existing auxiliary devices are reused,

including power supplies, towers, air

conditioners, shelters, relay nodes,

S D H h u b s i t e s a n d m i c r o w a v e

equipment.

After ZTE completed the network

d ep l oymen t and took ove r t he

network operation and maintenance,

the month ly SLA leve l exceeds

99%. One year later, the network

KPIs were signif icantly improved

due to ZTE’s professional operation

and maintenance. At the end of

November 2011, Europe’s largest

telecommunicat ions publ icat ion,

Connect, organized a formal test

on the mobile networks of eleven

operators, covering various aspects

such as download speed, upload

speed, and user experience. H3G

Austria’s average rate was greater

than that of the second-fastest

n e t w o r k . O n S e p t e m b e r 2 0 1 2 ,

Connect organized another test

on all networks in Austria. The test

results showed that H3G Austr ia

network won the top position. “H3G

Austr ia was not only the fastest

network, it also achieved a score

of 476 out of a poss ib le 500 in

customer eva luat ions of overa l l

network performance,” said Connect

editor Bernd Theiss.

H3G ZTE Competitor 1 Competitor 2 Competitor 3

Fig 1. H3G mobile network ranked first in the Connect network test 2011&2012

Managed Services

Operator Time Market Position

Market Share

2010 2 42%

2011 1 49%

2012 1 53%

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Managed Services

On April 2011, ZTE announced

it had secured an exclusive

three-year Managed Services

project with Nepal’s Ncell which is part

of TeliaSonera, a leading European

telecommunication company. The

contract includes Managed Services

for Ncell’s existing network as well as

all the main equipment and accessory

facilities of the BTS and Node B sites

for the next three years. It will include

site maintenance, management of

equipment from multiple vendors

(including Ericsson/HUAWEI/NSN/

Ceragon/Harris/Emerson/Delta) and

OPEX optimization.

About Ncell:

Ncell is No.1 mobile operator in Nepal

with over 8 million subscriptions,

covering all the 75 administrative

districts and about 90 percent of

Nepal’s population

In October 2010, Ncell launched mobile

data services in the world’s highest

location in the Mount Everest area

ZTE MS Solution and Customer Benefits:

SPOC -> S imp l i f i ed ne twork

management

Improved network efficiency ->

Better service assurance

Global MS

standardization and

experience lead to MS

process optimization

and efficiency

improvement

1st , 2nd MS & 3rd line

MSS collaboration brings

productivity improvement and

higher response of network Faults

Network Performance Management ->

Stable and improved network quality

Since 2011, Ncell has had the best

mobile network quality in Nepal

confirmed by third party surveys

and tests.

From http://www.teliasonera.com

Improved infrastructure management

-> At least 15% OPEX Saving for Ncell