Huawei 2013 Annual Report Download - page 27

26 Management Discussion and Analysis
Fixed Networks
Sales revenue from our fixed network equipment
totaled CNY45,085 million in 2013.
The fourth information revolution, represented by
cloud computing and Big Data, smart devices, HD/
ultra HD video content, and the popularization of
over the top (OTT) products are leading the ultra-
broadband industry into a new era.
To enhance the social and economic value of
the ultra-broadband industry, we proposed the
BOOST ultra-broadband business strategy. This
strategy focuses on bandwidth management,
industry cooperation, collaboration between
fixed and mobile networks, and on-demand
network construction, helping carriers address
the new challenges posed by the ubiquitous ultra-
broadband environment. We advocate that carriers
improve user experience, achieve differentiated
operations, and provide higher bandwidth at no
extra charge by providing appealing content and
implementing bandwidth management. In addition,
we are strengthening industry cooperation with
OTT service providers by embracing the shift from
the traditional OTT cooperation model into the Via
the Telecom (VTT) model. This approach promotes
joint development of content and broadband
technology to create win-win outcomes. To
enhance the overall return on investment (ROI) for
carriers, fixed broadband can be jointly deployed
with mobile broadband. This provides users with
access to converged fixed and mobile broadband
anytime, anywhere with unified service packages
while improving efficiency in network construction
to the benefit of carriers. On-demand network
construction can be implemented in the last mile
to leverage existing copper wires, coaxial cables,
power lines, and so forth, thereby achieving
optimum use of fiber and deployment resources
and alleviating pressure in terms of ROI while
satisfying increasing requirements for bandwidth
from subscribers.
During the construction of high-speed ultra-
broadband networks, we constantly focus on
customer needs and lead the development of the
fixed network industry. In the IP network field,
Huawei has taken a leadership role in the core
router domain with the launch and large-scale
commercial implementation of the first 400G/1T
core router one year ahead of other industry
players. Our 1T router line card won a prestigious
award from InfoVision at the Broadband World
Forum 2013. In the optical transport network
field, we were the first to launch the all-optical
switching network (AOSN) architecture, a critical
milestone in the development of optical network
technologies. Our 40T WDM equipment supports
up to 10 million users concurrently playing HD
video on demand and lays a solid foundation
for the construction of a high-speed transport
network as wide as the Pacific Ocean. In the access
network field, we launched the Vectoring system,
which provides the industry’s highest capacity,
capable of concurrently supporting 100 Mbit/s
broadband access for 768 users. The world’s first
Fiber to the Door (FTTD) solution leverages existing
cable resources to help carriers quickly provision
services and increase ultra-broadband speed based
on customer needs.
In 2013, our innovative fixed network products and
solutions and excellent service gained worldwide
customer recognition. Huawei’s 400G core router
won 49 customers worldwide and became the
world’s largest supplier for commercial 400G
core routers. We helped Russia’s MegaFon build
the world’s longest 100G WDM network across
the Eurasian continent, and constructed over
two hundred 100G WDM commercial networks,
covering more than 200,000 kilometers in total –
more than five loops around the earth. We offered