ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today shared its insights into key issues of 5G development by Mr. Wang Xiyu, the Chief Technology Officer at ZTE. According to Mr. Wang Xiyu, the company has been committed to 5G technological innovation for digital transformation push.

In 2018, the 5G NR specifications were frozen. Many countries moved faster to allocate spectrum. Vendors had network product portfolios ready and started to launch commercial devices. Field trials were booming. Governments, operators, vendors, and vertical market companies were working together to accelerate 5G commercialization. Now, 5G is arriving while 4G is still flourishing. And 2019 will be the first year of 5G commercial deployments.

5G will definitely change all aspects of the world. But what would be the changes? How can ZTE maintain its leading position in 5G? What 5G product and solution portfolios does ZTE offer? In the wave of 5G, operators face many challenges in their digitization. How does ZTE become the best partner of operators?

Please refer to the below part for the detailed Q&A:

Q1: How do you think 5G will impact the society?

A: The 5G network will be 10 times faster than 4G and connect a massive number of things. Latency will decrease to 1ms, dozens of times less than that of 4G. As virtualization, cloudification, and AI technologies are introduced, the whole network will be more flexible and agile based on requirements. With the breakthrough in these capabilities and the adoption of AR, VR, and AI, 5G will advance the development of a comprehensive and intelligent ICT infrastructure that integrates communications, cloud, intelligence, and applications to drive the digitization of the world.

Firstly, there will be unlimited potential in new services like VR and AR, in new markets and applications like IoE and Industrial Internet, and in new business models. They will bring exciting user experience and encourage operators to refine their operations and create more value. They will also create more industry opportunities and boost related markets, which promote one another to form a positive cycle.

Secondly, 5G will empower the digitization of all industries directly. It will expand the capability boundaries of related industries and increase efficiency significantly, laying a solid foundation for industry upgrading.

In addition, the IoE in the 5G era will converge the virtual and physical worlds. It will enable real-time sensing and interactions of all things in the physical world and extensive AI applications. We will be able to make predictions and intervene before an event occurs rather than knowing about an event after it has happened, like in the Internet era.

ZTE has been working with operators and partners to demonstrate how 5G will empower traditional industries in vertical markets like new media, IoT, Internet of Vehicles, industrial Internet, smart grids, and smart cities. The demonstrations have shown the new capabilities of 5G. As commercial 5G networks are deployed, more innovative companies will leverage 5G networks to develop new services and models to meet the requirements of different industries.

Though 5G business models are still being explored, the requirements that drive the exploration are real, and the enabling technologies are solid. We believe that we will succeed in achieving the digitization of the whole society based on the 5G infrastructure.

Q2: How does ZTE ensure its leading position in 5G development?

A: The telecommunications industry has a high technology threshold, and telecommunications technologies have been evolving. To maintain competitiveness in this industry requires long-term accumulation of technologies and core capabilities, precise insights into tech trends, and a good understanding of the market. Over the past 30 years approximately, ZTE has adhered to customer requirements as the traction and to technology leadership. It is how ZTE ensures its leading position in 5G.

Adhering to customer requirements as the traction does not mean to meet any customer requirement. Only when the common pain points behind the requirements are discovered can we develop valuable solutions and lead the industry in innovation and development. In the past decades, ZTE has been focusing on attracting and developing a large number of technology talents. Meanwhile, ZTE has been following with markets closely and working closely with customers. Based on the precise insights on technology trends and customers’ common pain points, ZTE has launched many solutions that are leading in terms of innovation. For instance, ZTE’s SDR base stations help customers operate three generations of networks and evolve them continuously. ZTE’s UBR helps customers solve problems relating to antenna platforms and costs for multi-band base stations. Pre5G helps customers meet increasing data requirements prior to 5G deployment. Common Core helps customers get relieved from investment confusion when they experience 4G-to-5G evolution and virtualization. ZTE is able to support both 5G NSA and SA networks, but we suggest operators to choose SA, as it enables 5G networks to have better performance and service extension. The 5G SA networks feature a lower TCO of network building in the middle term and long term. They are also flexible in selecting suppliers. All of these will bring higher value to operators. Therefore, it is the focus on customer requirements and concerns that helps ZTE create higher value for customers and promote its own development.

Adhering to technology leadership helps ZTE outperform competitors and better meet customer requirements. The technology leadership can be illustrated from the aspects of infrastructural architectures, efficient delivery, core algorithms, and intelligent network O&M. In infrastructural architectures, ZTE’s core communications chipsets, including baseband, intermediate frequency, packet, and network processor chipsets, are based on advanced 7nm process. Their excellent performance facilitates 5G commercial deployment at low cost, low energy consumption, high quality, and large scale. They ensure leading product performance and smooth long-term evolution. In efficient delivery, based on agility and DevOps, Internet openness, and efficient process, the software architectures are becoming component-based, microservice based, virtualized, open and programmable. These facilitate rapid product delivery and address operators’ demand for cloud-based networks and open network ecosystems. In core algorithms, ZTE has over 30 years of experience in optimization of core algorithms for the physical, link, and network layers. Meanwhile, platform-based development helps grow such core capability and ensures the leading performance of customers’ networks. In intelligent network O&M, ZTE network intelligence solutions, based on ubiquitous AI, realize network resource optimization and failure prediction and analysis to increase efficiency and lower costs.

It is adhering to customer requirements as the traction and technology leadership that help ZTE increase its core competency and obtain a leading position in the 5G segment.

Q3: In the 5G era, what is ZTE’s strategy in product and solution portfolios?

A: ZTE focuses on end-to-end 5G solutions and has developed a full range of products, solutions, and services that cover five key areas, including 5G devices, RAN, bearer network, core network, and vertical applications. ZTE is a major provider of end-to-end 5G solutions in the industry.

ZTE has been developing technologies that are essential to 5G for many years. These technologies include Massive MIMO, NFV, end-to-end slicing, edge computing, AI, and cloud-network convergence. We have launched commercial end-to-end 5G product portfolios for all bands and scenarios.

In the area of RAN, ZTE has been leading in Massive MIMO technologies. We have over four years of experience in commercial deployments, with an accumulative number of shipment of over ten thousand sets. ZTE’s industry-leading multi-mode IT BBUs and a full range of RRU and AAU products for flexible combination can meet the requirements at different frequencies and in various scenarios.

In the area of 5GC, ZTE will be the first to launch the commercial version of a fully converged core network solution based on SBA. It will support 2/3/4/5G and fixed networks and thus increase network convergence and resource utilization.

In the area of 5G transport network, ZTE was the first to offer a unified solution for 5G fronthaul, mid-haul, and backhaul. It is leading the industry in FWA, ultra-wide pipe, elastic network slicing, lowest latency, ultra-high reliability, and high-precision time synchronization. This solution helps customers build super-fast, intelligent, and converged 5G transport networks. TITAN, ZTE’s new-generation flagship optical access platform developed for 5G and network re-architecture, has been commercialized in many countries across the world.

In the area of devices, ZTE will launch its commercial 5G mobile phones in the first half of 2019. ZTE is also developing 5G tablets, in-door/outdoor CPEs, hotspots, data terminals, and other 5G products, to meet different consumers’ requirements.

In the area of self-developing chipsets, ZTE has developed and produced at scale over 100 types of chipsets for over two decades, covering transport, access, and terminal areas. Its latest multi-mode chipsets support all of the current 5G specifications and realize the convergence of 2/3/4/5G. To save energy, ZTE adopts advanced processes, new materials, and new architectures of essential chipsets to lower energy consumption and increase power and PA efficiency. In combination with network optimization such as intelligent network shutdown, ZTE’s solutions help operators reduce OPEX.

In the area of consumer applications, ZTE is working with operators to carry out 5G-based big video service pilot programs. ZTE is also collaborating with operators and partners to demonstrate how 5G will empower traditional industries in vertical markets like new media, IoT, Internet of Vehicles, Industrial Internet, smart grids, and smart cities.

Q4: As operators are undertaking digitization, how can ZTE be their best partner?

A: Operators have notable advantages in the process of digitization. They have extensive offline service networks to serve households and enterprises. They have high credibility, which is a natural quality for B2B services. Their infrastructures are the first interface with clients.

To better serve clients’ digitization, operators need to first increase their network agility, resource scheduling flexibility, and network scalability so as to enable their networks to support diversified and customized services. ZTE provides SDN/NFV products that are based on mainstream technologies and provide telecoms reliability and high performance to help operators make their network agile.

As the operators are in different stages of digitization, some operators have not completed the digital transformation of their own operations, so they are facing challenges in response to the digitization of the society. ZTE has rich experience in its own digitization and provides national data platforms, ICT PaaS, distributed databases, and other fundamental software for large operators. ZTE is able to help operators achieve their own digitization.

When extending business, operators need to accumulate experience and integrate capabilities of partners to offer clients solutions with the best technologies, the lowest costs, and the optimal delivery. As a long-term strategic partner of operators, ZTE has required capabilities relating to video, AI, fundamental software, and device development. ZTE is willing to work closely with global operators to offer the best solutions for customers’ digitization.

ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise, and consumer technology solutions for the Mobile Internet, today throws its light on the company’s cybersecurity assurance by its Chief Security Officer Zhong Hong.

According to Mr. Zhong Hong, ZTE puts security value of its customers above commercial interests, and complies with relevant laws and regulations on cybersecurity so as to ensure the end-to-end delivery of secure and trustworthy products and services.

Cybersecurity is one of the highest priorities for ZTE’s product development and delivery. ZTE will establish a holistic cybersecurity governance structure based on the company’s development strategy plan, with reference to international standards, laws, and regulations, thereby fostering good security awareness for all employees and emphasizing the security of the entire process.

In order to achieve an end-to-end secure delivery of products and services, ZTE integrates security policies and controls into every phase of the product lifecycle, establishing a cybersecurity assurance mechanism covering areas such as product development, supply chain and manufacturing, engineering services, security incident management, and verification and audits. Meanwhile, ZTE has also built three lines of defense cybersecurity governance structure to implement baselined, process-oriented, and closed-loop security management.

In terms of organizational structure, ZTE has adopted the three lines of defense cybersecurity governance model to implement and review cybersecurity from multiple perspectives. The business units act as the first line of defense to achieve cybersecurity self-management and control while the company security laboratory functions as the second line of defense to implement independent security verification and supervision. The external professional institutions and customers act as the third line of defense, auditing the effectiveness of the first and second lines of defense.

ZTE’s Product Security Incident Response Team (PSIRT) identifies and analyzes security incidents, tracks incident handling processes, and communicates closely with internal and external stakeholders to disclose security vulnerabilities in a timely manner to mitigate the adverse effects of security incidents. As a member of the Forum of Incident Response and Security Teams (FIRST) and a member of the CVE Numbering Authority (CNA), ZTE is collaborating with customers and stakeholders in a more open manner.

ZTE has passed ISO 27001 certification for information security management systems in 2005 and updated its certificate every year. In 2017, ZTE passed the ISO 28000 (Specification for security management systems for the supply chain) certification.

In terms of security assessment, the company has internationally certified professionals with CISSP, CISA, CCIE, CISAW, and CCSK to enable mature multidimensional security assessment capabilities in the aspects of code review, vulnerability scanning, and penetration testing.

Please refer to the below part for the detailed Q&A:

Question 1: The 5G era has arrived. Cloud computing, the Internet of Things, big data, artificial intelligence, and other technologies are triggering a new round of industrial changes. Under such a background, the greater challenge that the telecommunications industry is facing is to resist the evolving cybersecurity threat. As a global telecommunications equipment and solution provider, what position does ZTE take for cybersecurity assurance?

Answer: ZTE believes that the security value we provide customers is greater than that of commercial interests, and the security features of products are the first. Cybersecurity threats are a common issue that customers are facing with us. In my opinion, the biggest concern for customers is whether we have sufficient security control measures to ensure the security operation of their equipment and services. ZTE’s ongoing cybersecurity governance in the past few years has provided customers with a holistic end-to-end security assurance mechanism that makes products and services be able to withstand cyber-attacks.

ZTE is willing to communicate and cooperate with operators, regulators, business partners, and other stakeholders in an open and transparent manner, comply with relevant laws and regulations, respect the legitimate rights and interests of customers and end users, and continuously improve management and technical practices to provide customers with secure and trustworthy products to create a good cyberspace security environment.

Question 2: Recently, some governments have raised concerns about cybersecurity. From your point of view, how can ZTE protect the security and confidentiality of information for customers around the world? In other words, how do you help customers achieve the goal of jointly resisting cybersecurity threats, how to dispel customers’ concerns about cybersecurity?

Answer: This question should be answered from two perspectives. One is of our own, what should we do to guarantee cybersecurity and how to do it; the other is the customer perspective, how could our initiatives gain customer recognition and trust.

First of all, I think security is the intrinsic property of product, so we put security in the top position. Secondly, on the one hand, we should fully understand the security needs of our customers, and on the other hand, we need to let our customers know that our products are secure. ZTE is running a long-term and continuous cybersecurity assurance program, which is called “ZTE Cybersecurity Governance”. Its vision is “Security in blood, trust through transparency”. The ultimate goal is to provide customers with end-to-end trustworthy cybersecurity assurance.

At the strategic level, cybersecurity is one of the highest priorities for product development and delivery. That is to say, in the key decision-making points in the process of R&D and engineering services, when we need to make choices, we will give priority to ensuring the security of the products. For example, in the product development process, we set the release gate. If a product fails the security test, the version will not be allowed to release. In the engineering services process, the technical and management methods are used to ensure the security operation of the customer network. For example, account management applies the need-to-know and the minimum privilege principles; all operation involving access to customer networks and data must be authorized in advance by the customers.

At the organizational level, ZTE has adopted an industry-recognized three-lines of defense security structure. Based on the principle of separation of duties and responsibilities, ZTE oversees product security from multiple perspectives: The first line of defense achieves cybersecurity self-management and control, the second line of defense implements independent security verification and supervision; and the third line of defense audits the effectiveness of the first and second lines of defense.

In the product development process, the deployment of a multi-layer security verification mechanism ensures that security is reviewed from multiple perspectives. In the field of engineering services, according to regional, national, and project dimensions, the company has established a multi-level product security management team and a cybersecurity monitoring and incident response mechanism; The second and third line conduct on-site inspection and audit on the field of engineering services to ensure the operation and maintenance of on-line products are secure and trustworthy.

At the tactical level, the cybersecurity assurance program adheres to a six-point policy: Standardization, Strict implementation, Traceability, Strong supervision, transparency, and Trustworthiness.

1.Standardization – the developed security policies and process specifications are infiltrated into each product and process. We regularly review the security specifications against the industry’s maturity model and ensure that they are enforceable and effective.

2. Strict implementation – the daily work of each business department is strictly implemented in accordance with the regulations. The company has issued a “Product Security Red Line” which drew an insurmountable security bottom line for customer network operations and personal data processing, mandatory for both organizations and individuals.

3.Traceability – the components of the product, the distribution of the product’s location, and the record of the execution process constitute a complete picture of the product, helping us visually manage the product, for example, security incidents can be traced back and reviewed.

4.Strong supervision – check the effectiveness of the implementation of the regulations and specifications through internal and third-party security audits, the audit results are reported to the Audit Committee, rectification and review must be followed up.

5. Transparency – cybersecurity initiatives should be transparent to customers, and we have deployed a series of initiatives to make the process transparent.

In 2017, the company has become a CVE Numbering Authority, the relevant parties can be aware of the handling process of vulnerabilities in our products through the formal vulnerability disclosure policy. In the first quarter of 2019, we are expecting to release a new version of the “Cybersecurity White Paper” to let stakeholders understand ZTE’s understanding, attitudes, and initiatives on cybersecurity assurance. In the meantime, the company has begun to build overseas security labs, which allows customers to review our products online; in addition, we are seeking strategic partnerships with third parties to acquire industry-leading technologies and services for security laboratory preparation, independent evaluation and security audits.

6. Trustworthiness – The premise of winning customers’ trust is to respect and understand the values of our customers by making the process transparent and regulated. ZTE has passed ISO 27001 certification for the information security management system in 2005 and updated its certificate every year. In 2017, ZTE passed the ISO 28000 (Specification for security management systems for the supply chain) certification. Since 2011, more than ten products have been certified by the Common Criteria (i.e., ISO 15408). In the past two years, ZTE has been working closely with customers, third parties and overseas regulators to conduct activities, such as source code review, security design review and supplier audit.

In terms of personnel training, we believe that the success of the cybersecurity governance program depends largely on personnel and security awareness. We have built security teams and trained security professionals. In the past year, we have added 27 certificates consisting of CISSP (Certified Information System Security Professional), CISA (Certified Information Security Auditor), CISAW (Certified Information Security Assurance Worker) and CCSK (Certificate of Cloud Security Knowledge). We have also organized various levels of learning, training, workshops, hands-on practices, and exams, and have educated security personnel of more than 600 people. But, most importantly, the development of security awareness begins with management. The Cyber Security Committee (CSC) is headed by the CEO, with the CTO as the executive deputy director, and the CSO as the deputy director, the members of the Standing Committee of the CSC is represented by the ultimate responsible persons from the business unit of Supply Chain, System Products, and Engineering Services. The organization of cybersecurity assurance has been deployed throughout the management level.

Question3: Could you please introduce more on the preparation and release plan of the security labs?

Answer: The security labs being built will be operated in a “1+N”mode. The center lab will be located in China, and multiple remote access points will be deployed at home and abroad.

The security labs will preset three functions: 1. View and evaluate the source code of ZTE products in a secure environment; 2. Provide access to important technical documentation of ZTE products and services; 3. Provide manual and automated security testing of ZTE Products and services.

The construction will come in phases: Two security labs are expected to be built overseas in Belgium and Italy in 2019. Moving forward, ZTE will be considering the establishment of new labs in accordance with the customers’ needs and business development. .

Question 4: Recently, there is a concern about national security spreading around the world that the credibility of Chinese telecommunications equipment manufacturers has been questioned by foreign governments and enterprises. Some people believe that Chinese telecommunications vendors provide cooperation for government intelligence work. What opinion do you hold on the issue?

Answer: ZTE has never received any requests from relevant agencies to set up backdoors in our products; the source code of our products can be opened to security audits by customers and professional organizations through our security labs.

ZTE Corporation today launched ZXHN F2867S, a super gigabit home gateway that supports the AX6000 (802.11ax dual-band Wi-Fi) technology.

ZTE Corporation today launched the second-generation Android TV AI setbox (STB)B866V2, which features 4K , openness and intelligence.

ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced to commercially launch 5G smartphones in the first half of 2019.

ZTE Corporation today announced that it takes the lead in completing Phase 1 of SA 5G Core Test of China Telecom, actively promoting the development and maturity of the 5G network industry chain.

ZTE Corporation today announced that ZTE and the Guangdong branch of China Mobile have completed the first 2.6GHz NR test in Guangzhou 5G field trial.

ZTE Corporation today announced that Guangdong branch of China Unicom and ZTE have made the world’s first 5G call by means of ZTE’s 5G prototype smartphone in Shenzhen 5G field trial.