Chunghwa Telecom, Taiwan: A new era


Ericsson contributes to Chunghwa Telecom's network transformation agenda in Taiwan.

Chunghwa Telecom, Taiwan takes the lead in nextgeneration services with advanced optical and IP solutions from Ericsson.

Chunghwa Telecom (CHT) is Taiwan's largest telecommunications operator with a history of offering pioneering voice and data services. Due to market deregulation, the competition in Taiwan became fiercer and CHT sought to defend its position. In order to do this, as well as to increase revenues by breaking into new market sectors such as Storage Area Networks (SAN), multimedia production and IPTV distribution, a transformation of its network was needed. CHT set about achieving this goal with the Optical Era Project.

The aim of the project was to provide a flexible optical network capable of efficiently delivering a myriad of broadband services to 2.4 million residential and business subscribers by 2010 and to meet the bandwidth demands of the multimedia era.

As part of the Optical Era network transformation project, Ericsson was selected to supply the end-to-end optical transport infrastructure under a five-year agreement. This decision followed CHT's 10-month vendor evaluation process. R. C. Hsu, Managing Director of Network Operations and Management, CHT explains why Ericsson was selected: "A key factor in choosing Ericsson was its holistic approach to broadband network design, its end-toend solution and its ability to seamlessly integrate and control different functionalities on a single management platform."

Delivery of Ericsson's Wavelength Division Multiplexing (WDM) solution facilitated deployment of metro, regional and long-haul applications on a common technology platform. The Reconfigurable Optical Add-Drop Multiplexer (ROADM) optical network extended with Wavelength-Selective Switches (WSS) technology allows for the switching of wavelengths in multiple directions, reducing the need for electrical switching. In addition to efficiencies from the one platform approach, this flexible technology also brings cost-per-bit advantages which lowers power consumption and enables the highest possible throughput of any optical technology.

Phase one of the optical transformation project was completed at the end of July 2008. The solution has significantly boosted network speed and performance in a flexible way and reduced operational costs to a much lower level while allowing for easy upgrades as the network capacity grows. Ken Wu, Vice President, Ericsson Taiwan explains the significance of the project: "As the largest deployment in the region for the innovative WSS technology, this represents a huge step forward in demonstrating fully scalable development for the first time. This solution allows CHT to deliver any broadband service from any point in the network."

Following the rapid transformation of the old network into a new generation optical network, CHT is well prepared for future growth as well as attracting new subscribers. After only two years of deployment, the Ericsson WDM solution is at the core of CHT's network as the primary information highway for voice, data and multimedia services. CHT has expanded into new market sectors and is for instance already offering a number of services to several prominent Taiwanese banks in the enterprise market.

Subscribers are already experiencing higher speed broadband packages and taking advantage of the latest digital services such as mobile broadband, Movie-on-Demand/IPTV and state-of-the-art enterprise solutions. R. C. Hsu comments: "As a key part of our Optical Era project, ROADM is a crucial component in our core network transformation to enable the delivery of our Movie-on-Demand offering. Upon completion of the ROADM project, CHT will yet again take an industryleading position in optical network planning, delivering world-class services to our customers and driving development of the local telecommunications industry."

Based on the successful partnership, two years into the Optical Era project CHT also chose Ericsson for phase two of the optical WDM network rollout, aiming to increase ARPU by further developing the multimedia offering. CHT's network is now one of the largest optically meshed WSS networks in the world. Following the implementation of phase two of the optical WDM network, CHT also selected Ericsson to build a packet-oriented transport architecture based on Next Generation SDH technology.

The network transformation has already proven successful. By the end of the first quarter 2009 CHT had attracted 686 000 subscribers to its IPTV service, gaining 10 000 customers and a 57.6 percent year-on-year increase.

This solution confirms CHT's position as a market leader, preparing it for future demand as well as attracting new subscribers. CHT predicts that there will be 80 percent coverage of 30 Mbps broadband in Taiwan by 2011 and Ericsson's optical networks will be a key component in assisting the operator to maintain a leading position in the market. The ongoing business partnership has allowed Ericsson and CHT to work together and make the transformation to a highly efficient Full Service Broadband architecture. Alfredo Viglienzoni, Head of Area Optical Networks, Ericsson comments: "This project represents a massive step forward in terms of scalability at the optical layer. It demonstrates Ericsson's commitment to providing complete end-to-end broadband solutions."


Customer: Chunghwa Telecom, Taiwan

Customer Objective

  • Network transformation
  • Develop next-generation services
  • Expand into new market segments

Ericsson Solution

  • Network transformation services
  • A Full Service Broadband transport solution including ROADM (WSS) functionality from the Marconi MHL 3000 WDM family, Marconi OMS 1600 and OMS 800 MSPPs, and ServiceOn Optical Management

Customer Benefits

  • Maintain and build on competitive position
  • Increase subscriber numbers
  • Decrease operational costs

Customer profile

Chunghwa Telecom (CHT) delivers fixed, mobile and data networks throughout Taiwan and its offshore islands. With a scope of services covering city, long-distance and international calls, GSM, data communication, internet services, broadband networking, satellite communication, mobile data and multimedia broadband, CHT is the most experienced and largest integrated telecommunications operator in Taiwan. In today's fast moving telecommunications landscape CHT creates value by pioneering new technologies and offering the most advanced network and mix of services to its subscribers.

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