Wednesday, March 14, 2007

China Mobile:1.1 billion USD in PAKTEL

3/14/2007, During a meeting with minister of Pakisitan information technology ministry, Mr. Guo,yonghong, president of China Mobile Pakistan branch, told local media China mobile has invested 700 million USD in Paktel up to now. This number includes the 300million purchasing cost. China Mobile will invest 400million USD in Paktel later this year. All the money will be used to upgrade Paktel's infrastrure. China Mobile promosed they would build 2500 base staiions each year for Paktel.

Tuesday, March 13, 2007

Unicom embraces WiMAX Yes or Not

3/13/2007,This is an inside story. China Unicom has decided to launch WiMAX building, also they have choosed the equipment suppliers. The related proposals have been distributed to Unicom's branches in each province.
After a nearly 1 year trial on WiMAX, Unicom got below conclusions: "As an fixed wireless broadband acess system, 802.16d WiMAX has good communication quality within viewable distance, also it can guarantee some quality outside viewable distance. WiMAX is a good supplement to wireline access. It can support packed data service, it is very helpful on solving the shortage of access resource of China Unicom" .
Surprisingly, Those big names in WiMAX field does not enter Unicom's supplier list. State-hold Datang and Putian became the winners. Datang began their broadband wireless access project on October 2005, they also made a show during last year's ITU Hongkong exhibition. But seems the equipments they will provide to Unicom come from their OEM partner.
It is still not clear what kind of service Unicom will provide based on WiMAX, also it is not clear what kind of customers they will aim at. According to a BUPT professor, China unicom has the license on 3.5GHz spectrum. Their WiMAX service will possiblly based on this spectrum.

Just one day after this blog, another local media reported that China Unicom denied this WiMAX launch today. A spokeman of China Unicom told the media that they only made some trial, not large scale commercial launch. Both China mobile and China Unicom, even China telecom and China netcom had made similar trials.

Saturday, March 10, 2007

Huawei and ZTE:when without tax refund

3/10/2007, In last July's Heavy Reading report, "Remade in China: Huawei and the Future of the Global Telecom Market," The report’s author, Heavy Reading chief analyst Scott Clavenna pointed out that low pricing was the key factor for Huawei's success in overseas market.
Behind this low pricing, tax refund policy of Chinese government played a very important role. In year 2005, ZTE's profit befor tax is 1.5billion RMB, 30% of it came from tax refund.
Because of China’s growing trade deficit, the country’s international trading partners and the World Trade Organization (WTO) have been pressuring it to reform tax refund policies that have benefited Huawei and other Chinese companies. From January 1st, China adopted new tax policy. Under this policy, ZTE's first quarter net profit plummted 86% comparted to 1st quarter in year 2004, Huwei then refused to announce their profit. In year 2005, Huawei accquired nearly 3billion RMB tax refund from government.
In China's No. 11 five year plan, the government has promised to further reform its tax refund policy. It is predicted Huawei and ZTE will face further profit presser in the future.
People begun to ask, without tax refund, How will Huawei and ZTE develope? If compare profit margin, they have no difference with those traditional industries.

Shanghai Telecom has 150K IPTV subscribers

x IPTV subscribers3/10/2007,according to shanghai local media, since offical launch in September last year, Shanghai Telecom has already 128K subscribers, also there are 20K subscribers are wating in line to be installed.

Thursday, March 08, 2007

A Memo of China Netcom

3/8/2007, Several days ago, the two largest fixed line carrier in mainland China, China Netcom and China Telecom signed a "stop competition" contract. According to this contract, China Netcom will stop the expansion in northern China, and China Telecom will do the same in Northern China.
But Will the two carriers follow the contract? Seems it is not so easy. A memo of China Netcom recently published on Internet showed us some hinder information.
The memo is named "Measures on dealing with new contract between China Netcom and China Telecom". In this memo, China Netcom demanded each subsidary company in southern China should take care of protecting their key customers, all ISPs, all distributers should not on the exchange list with China Telecom. At same time, in Northern China, they should try best to avoid new customer losing to China Telecom.
How to look at this memeo? The so called "stop competition contract" already violated the free market principle, that is a very ridiculous contract. Compared to that, this memo is in compliance to the free market spirit.

Tuesday, March 06, 2007

3G on NPC

3/6/2007, The on-going fifth Session of the Tenth National People’s Congress also has some discussion on 3G. Deputy Shi, jixing, also as vice chairman of Chinese mobile communication union, submitted his 3G proposal yesterday noon. This is also Mr. Shi'a 5th similar proposal in recent 5 years.
In his proposal, Shi suggest to release 3G license a.s.a.p, otherwise, state resources will be depreciated further. The regime bondage is the main reason that there is not break up in 3G field in China. MII always doesn't give a clear answer on 3G, that means lack of scientific and democratic decision, there is no clear govenment responsibility defination. Shi also pointed out Chinese carriers cannot make 3G decision according to their own willing today. Too much interference by government could affect the final result. MII shouldn't only issue TD-SCDMA license, in order to solve the problem on internation roaming, WCDMA or CDMA2000 licenses should also be released.

Monday, March 05, 2007

MII's No.11 5 year plan

3/5/2006, MII published their "Information industry in the No. 11 Five year developing plan". Mr. Lou, qinjian, vice ministry of MII, said that the plan is a guilding plan for the industry from strategic, macro and full view.
According to local media, the chief idea in this plan is " promote triple play, enhance service and technology innovation ability, transform from simple service provider to mutli-service provider. "
Detailed methods to guarentee the realization of the plan include below:
Universial service fundAdjust competition structure following the 3G licences bidingEncourage Non-public investement to enter telecom industryHelp Chinses company develope overseas marketPut TD-SCDMA, IPv6, Wireline or Wireless broadband technology in advanceIntroduce Telecom Act A.S.A.P
Sounds good, but I am not very optismatic on it. Before our government can releaize it, there are still a lot of hurdles. On the other side, without open competition in local telecom market, without putting braodband a very stragegy position, the plan still cannot be compared with similar plan in US, in Japan , in Korea, even in Taiwan.

Friday, March 02, 2007

Who will have the largest share of China 3G market?

3/2/2007, According to local news papers, China Mobile will ask equipment manufactures to provide informal bids for TD-SCDMA network building. Earlier reports revealed that the TD-SCDMA procurement tenders will be worth CNY26.7 billion (USD3.45 billion). China Mobile is reported to be building commercial TD-SCDMA networks in eight cities: Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Qinhuangdao and Xiamen. Five of them will be the host city of Olympic 2008. It was predicated that China Mobile will launch the 3G service after October of this year.
But who will have the largest share of this big TD-SCDMA cake? Since it is a Chinses 3G standard, Chinese equipments manufacters will have more advantages in the coming bid. Huawei, ZTE, Datang, Putian, Shanghai Bell all hope to have bigger share. Will they success?
Although as the bellweather of Chinese communication equipments supplier, Huawei are not sure they can have the largest share. First because their focus was always on WCDMA, Secondly their joint-venture company with Simens on TD-SCDMA base station. But after merge of Siemens and Nokia, the future of this joint-venture company became unclear.
Before Chinese new year, it was reported ZTE will have more than 30% share of this big bid. ZTE begun their TD-SCDMA R&D as early as in year 2001. As the second largest equipment supplier in China, they are confident they will have better opporuntiy this time. They also have some cooperation with Erission in this field.
It was Datang who first publish the TD-SCDMA standard. But because of shortage of fund, Observers are always pessimistic on that they can get bigger share. If the coming bid can make this company survive longer, it will be very good for them. Maybe the biggest advantage on this field is their cooperation with Shanghai Bell.
Putian cooperated with Nokia on TD-SCDMA, their fund situation is better than Datang, but their technology is the worst compared with others. It is sure that they will not become the leader, but anyway, they will not get a small share.