Thursday, November 29, 2007

Don't be excited with the FTTH interest of China Mobile

11/29/2007, Organized by UBS, China Mobile is making her roadshow in Europe to attract more investers. One of the most interesting topic of this roadshow is that China Mobile say they will get fixed network license and they will use FTTH to provide service to entreprises and personal customer.
Excited news, I don't think so.
Sometimes ago, the deputy minister of MII, Mr. Xi, guohua said in a conference that Chinese carriers should be all-service carrier. Soon we see China Mobile say they will get a fixed network license. But When? I don't see any indications on this. I don't believe China Mobile can get such a license in the short future.
Remember, GPON supplier Flexlight once announced China mobile applied their equipments to provide ethernet service to enterprise customers. But that is not FTTH. Why China Mobile shows such a unrealistic concept to their possible invester? Will they believe this?

Tuesday, November 27, 2007

Datang group began reorganization

11/27/2007, Nov. 20, The institute of telecom science and technology of MII (Datang Group) announced they would sell their 13% share of Datang Mobile with a price of 1.001billion RMB. They requested the buyer must be domestic company, and the buyer won't compete with Datang mobile. Before this, another shareholder of Datang mobile, Shanghai Putian group (another state-hold telecom equipment company) has announced to sell their 0.808% share of Datang mobile with 70million RMB.
Who is Datang mobile? They are the holder of Chinese 3G standard, TD-SCDMA standard. But why those two companies want to sell their shares of Datang mobile? Who are the possible buyer?
According to local media, Datang group expects to improve their financial situation through the deal. Although the net financial value of Datang mobile is only 71.26 million RMB, their stock market value is estimated to be nearly 8billion RMB because of the 3G concept. Some local power companies and some insurance companies have showed their interest on the shares of Datang mobile.
How is Datang mobile's financial performance? According to its own financial report, in year 2006, its revenue is 128million RMB, but the net loss is 122 million RMB. At the same time, Datang mobile has 284million short debt and 120million long-tern debt.
After this deal, Datang mobile's main shareholders will include Datang group(79.524%), Shanghai Alcatel-Bell (4.9%), and a big new investor.
Clearly, Datang group hope to get more money throught the deal, but if TD-SCDMA cann't succeed in the real market finally, How much Datang mobile will worth?

Monday, November 12, 2007

Mr. Ao li talked about GPON test

response to the remark:
GPON or EPON? Hasnt China committed to EPON as the way to do deployment? Why the new interest in GPON. THE AES security std in GPON has discouraged China's use and pushed to EPON. Is this a change?

What I wrote in the blog is about an interview on a person who is in charge of the GPON test in MII. I think the suitable description for the PON technology should be: the carriers think EPON is more matur than GPON, but they still want to test and follow the progress of GPON development. China has not decided to make large scale on PON deployment, so any technology still is possible.

11/12/2007, Mr. Ao, li is in charge of the technology work in the MII's standard institute in Beijing. According to an interview by a local newspaper, he send several information about the GPON appkication in mainland CHina. Under Ao, the institute just finished a multi-player test of GPON equipments with the cooperation of China Netcom.
1) China need to have more speaking power in the GPON area around the world. The test help Chinese carriers to understand the interconnection problems between GPON equipments from different suppliers.
2)Nearly all main stream GPON suppliers joined the test, Huawei is the first to get the licence.
3) From a GPON report by Beijing Telecom, they think GPON still need to improve in net management, system funtion, TDM processing. Commercial ASICs need further development.
4) GPON will lower their price, government should help manufactures on this problem.

Monday, November 05, 2007

ZTE new base aimes at WiMAX

11/5/2007, Aiming at WiMAX, RFID and laser display, ZTE today announced to build its new manufacturing base in Tianjin, a city 100Km west of Beijing. The new ZTE Tianjin base will include headquarter, R&D center, supply chain center and a training center. ZTE will invest more than 5 billion RMB for this project. The base is designed to be put in use in year 2011, it will bring 10 billion RMB revenue each year for ZTE.

Sunday, November 04, 2007

Huawei has no interest on brand

11/4/2007, The news about firing all old employees is simmering, local government has said they would investigate if Huawei defies the new contract law. But Huawei just told media what they did is a new management method, all employees volunteerd to leave company, and they would contend for new position in a fair environment.

Many people doubt if those people are voluntary, me too. But by now, no person stood out to say I was forced, so we have to believe they volunteered to do this.

So this is the problem, how Huawei can make their nearly 7000 employees volunteer to do such a thing.

Today, I read an article which is said to be the record that Ren, zhengfei, Huawei's No. 1 talked with their employees in Venezuela. From the record, I felt that Ren was just like a General, and his employees were his soldiers. The soldiers will not disobey their General, even if this General asked them to leave the company.

From the same article, Ren has an interesting remark on Huawei's brand strategy. Ren said, Huawei mustn't take the brand strategy, brand building is too complex, it cost too much, what Huawei earn today is just the advertisment cost, the channel cost, if Huawei tried to build brand, there would be no profit for Huawei.