Sunday, December 14, 2008

Rumor: JDSU will sell its Shenzhen factory to Fabrient

12/14/2008, There is a rumor circling around the fiberoptics industry in Shenzhen. JDSU will outsource all its optical components business. It is even said that the Shenzhen factory of JDSU will be sold to Farbrinet with only 2million USD. Somebody says that JDSU doesn’t own all the equipments of this Shenzhen factory, the land is also rented from local government. So they have already discussed the transfer with several potential buyers. But up to today, JDSU still didn’t make the final decision.
We asked this news to JDSU Shenzhen, but no feedback. Their marketing guys don’t want to talk about this with us.

Facing the global economical crisis, not only JDSU has problem. Other big Chinese fiberoptics companies also have problems. Photop, one of the largest component manufactures in China, was said to make layoff, their orders also shrink 20%. A spokesman from this company said their business not only based on fiberoptics, they also had display, optics etc business, so the crisis will not make big problem for them.
Another big company who make layoff is Neophotonics China. In the end of last month, they laid off 10% employees. They also pull off all their recruiting advertisements.

Contrary to this shrinking, some enterprises are considering expanding. We just heard a long time agent company in this field just purchased a new factory in Shenzhen, they prepared to assembly TOSA and ROSA. They told us they could find very good employees with lower salary in this special time. They didn’t see any sign of crisis, But they think the elected president of US, Mr. Obama will bring new hope to the communication industry. They think it is just the time to enter the manufacturing of fiber optics components.

Wednesday, November 26, 2008

Is Huawei to save the world, or China to save Huawei?

11/26/2008, Below artical is excerpted from Mr. Shi wei's blog in Chinese. I didn't translated the full article. Mr. Shi is a famous macro-economic researcher in a state-hold institute in Beijing. He wrote many articles about 3G communication industry in China.

I visited Huawei again this september, it is the 3rd time I visited this company in recent years. During this visit, we have a very serious topic to discuss with Huawei, Does the winter of Huawei really come this time?From this visit, I feel Huawei has not been the strong horse during the past years, it has changed to a fat elephant. Once high sensitive nerve center of Huawei has become slowly responsive. Huawei has already a kind of pride which is everywhere, which is cutting the connection of Huawei and her extendings.

In early year 2007, Huawei was still satisfied with her enough cash reserve, but in the 2nd half of year 2007, Huawei has fallen into the 2nd cash shortage since her birth. Huawei tried to sell her cellphone handset department with a half- suiside way, but they failed on this.

A high ranked officer of Huawei who met me several times told me this time:"I will not be suprised if Huawei die tomorrow." The huge fat body , the long market battle line, have become the unprecedented challange for Huawei. Their organizating ability, the method to fullfill the request of international market, understanding to modern competitation, cannot keep up with their leader, Mr. Ren,zhenfei's request. Thousands of employees, directors of Huawei have lost their once great Huawei sprit. A kind of laziness, lackness of responsibility has spreaded among the employees of Huawei. I am thinking, today's Huawei, maybe considered a saving power of telecom industry in the world, but maybe because of this power, Huawei forgets to save herself.
From my point of view, Huawei faces below crises:

1)Unequlized support from government: As a private company, Huawei cannot get the same support from government as the support for ZTE.

2)Huawei is success in overseas market based on their low price strategy, but this further make their financial burden heavier. Those international rivals of Huawei are becoming stronger. The profit of Huawei from 2006 to 2008 came more from costdown but not sales.

3) In 3G domestic market, Huawei has lost the leader position in TD-SCDMA market.

4)The financial situation of Huawei hasnot improved for a long time. They have not enough methods to find new money.

So based on all these analyse, I think the coming global financial crise will have more impacts on Huawei than their domestic rivals in China. The overseas market cannot save Huawei, only China's market can save Huawei. But How China save Huawei?

Browave provides competitive EDFA OEM/ODM Service

11/27/2008, LR thinks this news a kind of advertisment, so I have to publish it here.

Hsinchu, Taiwan, Browave Corp., a professional and leading OEM/ODM manufacturer in the fiber optical communication industry, provides competitive service in optical Amplifier products, like Gain Block and EDFA modules, for applications in CATV, PON and Metro networks. Since 1998, Browave is devoted to the development of cutting edge technologies in fiber optical key components and opto-electronic integrated modules.
Combined Taiwan's quality/management system and China's low-cost manufacturing base, Browave keeps offering high quality and competitive-price products to worldwide top-tier companies and has been awarded as the best supplier in various occasions. In recent years, with the commitment of IP-protection and quality assurance, Browave has received significant OEM/ODM contracts of Gain Block and EDFA module products from US and Japan major brands.
With tremendous delivery tracking records in the past ten years, Browave has proved the design and production capability of key components for EDFA products, including GFF (Gain Flattening Filter), High Power Isolator, Mini Tap Coupler, Pump WDM, IWDM, IPD and OSC (Optical Surveillance Channel) filters etc. Based on the key component supplying advantage to offer a under one –roof manufacturing and the reliable operation system, Browave will be your best partner to support your every requirement.
You are welcome to visit our website for more information or directly contact for further assistance.

Wednesday, October 22, 2008

Wu hequan:Broband development is government's duty

10/22/2008, Just before the Beijing communication show 2008, Vice prisident and fellow of China engineering institute, Mr. Wu, hequan said in a forum that broadband development is government's duty.
As he said:"Broband brings service converging, the strategy of broadband developing is not the task of those carriers, government should have right policy to promote this. "He points out that compared to the 40Mbps bandwidth in Korea, 20Mbps in Hongkong, Chinese internet users only have less than 2Kbps average bandwidth. China still has a long way on broadband development. Wu also said, the most important service for broadband is video service, but because of policy problem, Chinese carriers still can not develope video service in full speed.
I agree with Mr. Wu that government's policy is the key block on the development of broadband in China. But I also want to point out, as a former high rank officer from China Telecom, Mr. Wu didn't point out that Chna didn't allow cable TV service providers to run voice service freely. Cable service providrs are in very weak position compared to those big telecom carriers. That is the reason they try their best to block telecom service providers enter video market.
The most important thing in China's telecom market, and on the strategy of broadband developing, it is to build a fair environment for competition, not only for telecom carriers, but also for cable TV service providers.

Sunday, October 19, 2008

CIOE2008: Pictures


Looking at the broad growth of FTTH with caution
WTD participates in CIOE with eye-catching booth of bright color and simple good-looking design. There are visitors gathering at its booth all time. Dr. Yuanzhong Xu, deputy general manager of WTD, told us that with an increase of 88 percent of orders by the end of September in this year, only 55 percent of ordered products were shipped . There is heavy pressure of product manufacturing capacity for them. Driving factors of demand in optical component market are as follows:
1. Opportunity of Olympic Games. Most of the orders were placed before the Games which strength the development of entire industry by its high level standard. So the overall result of this half of year is excellent.
2. FTTx program finally starts in domestic market in 2008. The deploying of FTTx has brought challenges and opportunities for component manufactures. Japan and South Korea made remarkable promotion of FTTx in 2006 and 2007, and in 2008, China finally gets its way to boost FTTx, especially in the first half year.
Some successful achievements displayed on the show, from which we can have a clear view of WTD:
28-year-old history in optical components industry;
More than one hundred of patents and national standards;
30,000 chips are shipped each day;
Serving more than 3,000 customers;
Provide product to nearly 40 global telecommunications equipment manufacturers;
Shipment of transceivers is more than 3,000,000 each year.

FTTx promotes optical components market in China
The speech “The Evolvement and Outlook on China's Optical
Components Technology and Market” given by Dr. Xu on CIOE2008 attracts many attentions.

Reviewing the evolution of technologies and market of optical components with his personal experience, Dr Xu believes that the breakthrough of optical communication technology lies on the evolution of components technology except fiber technology. Today, Chinese optical component vendors only compete each other on lower cost because of shortage of innovation. Dr Xu emphasized awareness of intellectual property should be core competition for Chinese optical communication business.

At the end of the speech, Dr. Xu predicted Chinese optical component technology and market in the next 5 years. With reference to some high-end product, it indicated that Chinese optical component technology will be 5 years behind that from oversea vendors. However, China is playing a more and more important role in the world, with a quarter to one third of market share of world’s optical component in the future. There will be hundreds of FTTx optical components engage in connector, coupler, splitter, transceiver, BOSA/TOSA/ROSA and so on in china in next 5 years, and most of them are concentrated on the end of the entire industry chain. It is also predicted that two or three vendors will show up in global market occupying more and more market shares of the world.

CIOE2008: Hisense Broadband

If you have interest to this company, or other companies, you can contact me directly by my email I will forward your email to those companies.

Hisense Broadband:Business goes faster

On CIOE 2008, Hisense Broadband not only demonstrates its 10G PON transceivers, also showcases its DVI/HDMI optical transmitter for high-definition video signal transmission, parallel optical transceiver with 12 channel and bandwidth up to 40G. According to Yanshuang Zhang, marketing director of Hisense Broadband, over last six months, their number of staff increased, development of the business went faster, development of new product also speeded up, there are lots of new orders. As the business grew rapidly with support of the group over the past six months, Hisense Broadband has expanded its production by three times to meet the strong demand from customers. They also realized double growth of sales by September compared to last year. They planed to add 12 producing line of optical transceiver in a new plant of 3,000 square meters by the end of this year.
According to Madame Zhang, The business of optical communication becomes the fastest growing part of all Hisense Group. They have finally achieved rich fruits due to years of hard working.
The reason for such a rapid pace of development comes from two aspects: firstly, Ligent, the partner of them in United States, is selling its GPON modules abroad in volume and winning recognitions of customer in world level. Secondly, the R & D, connection closely with market, quick reaction to customers demand and marketing strategy of brand make Hisense quickly to grab more FTTH optical transceiver market share. Hisense Broadband continues to increase investment in research and development, relying on independent innovation, they developed 10G PON optical transceiver series, GPON CLASS C + OLT module and so on.
When talking about the target for the next three years, Madame Zhang said that 1 billion RMB will come out, “of course, it is not only from optical service, it is set through strict planning and fully consideration.

CIOE2008: Fibercom

Fibercom: makes its debut on CIOE2008

Fibercom Technologies Co., Ltd is composed of two sections (Shenzhen and Chongqing) and its facility totally occupies 7000 square meters. The R&D and sales centre is located in Shenzhen High Technology Development Zone (1000 square meters).Their manufacture base is located in Chongqing.

The management team consists of a group of distinguished experts specializing in the field of optoelectronics. Dr Zhangyong Huang, one of the pioneers in developing optical components in China in 1970s/1980s, is appointed as the CEO of Fibercom. With comprehensive optoelectronics knowledge, profound technique accumulation, innovative R&D, acute market sensitivity and plentiful experience in mass production and quality control management. Fibercom is committed to satisfy our customers with top notch technology,products, and service. Quality products, emphasis on customer service, technological awareness and high productivity are the corner stones of Fibercom philosophy.

On CIOE2008, Fibercom rolled out series of high data rate transceivers, whole line of optical devices for FTTx as well as butterfly series products such as SLD、CATV LD、980PumP LD. With all those products, Fibercom has achieved the vertical integrating capability TO→OSA→Transceiver, TO→BIDI→Triplexer, Pump LD→EDFA.

CIOE2008: Wuxi ZTE

WXZTE:developing steadily

A booth using only two colors of blue and white comes to your eyes every year, then you know it must be Wuxi Zhongxing Optoelectronics Technology Co.,Ltd.(WXZTE). Over the years, WXZTE has always a style of low-key towards media. It is our honor to have this chance to have some speaks with San Gui, vice marketing director.
Although there is a staff of 20 when Mr.Gui joins WXZTE seven years ago, WXZTE set its global target at the beginning. Today, WXZTE continues to ship most of products to oversea market, including North America, Japan and Europe. In addition, its shares in India market start to rise up in these two years. The revenue of oversea market currently accounts for 70 percent.
The revenue continuingly increases with 40 percent annually over the past 8 years.
In 2006, WXZTE began developing its own optical transceivers, and at the end of 2007, they had made the breakthrouth on SFP, SFF, G/EPON and other products, which account for 15 percent of revenues. They hope to be the leading optical transceiver supplier in next three years.
EDFA is still the main product for WXZTE, but it is a product of low profit with price transparency. However, Gui is confident of the future of EDFA. From his observation, he gave us the reasons:
First of all, complete substitutes for optical fiber and technologies will not be available, which means that the times of light is still under way, the market demands keep growing;
Secondly, automatic and highly integrated EDFA is still the subject of the development of the industry. The technology leader will be the ones of a greater advantage;
Thirdly, with rapid development of 3G and FTTH, demand of EDFA will be driven by service, which is proved in North America, Japan and South Korea markets.

CIOE2008: OptiGlogy

OptiGlory:rollout BusPON as the promotion of PON

OptiGlory was founded in 2008 by a group of enthusiastic people specialized in the fields of optical communication and photonic technology. With years of experience in research and development of next generation networks and systems, the company has launched a series of patented solutions based on the state-of-the-art Bus Passive Optical Network BusPON for delivering broadband and seamless multi-service signals to multiple users. The mission of the company is "Realization of Next Generation Networks for Today".
The company has a strong vision of providing a one-stop reliable solution to achieve the goal of Fiber-to-the-Home (FTTH), Fiber-to-the-Curb (FTTC) and Fiber-to-the-Building (FTTB) globally for Metro and Access networks. The BusPON technology is the evolution of the existing EPON and GPON solutions. It is a WDM-PON designed for deployment in both dense urban cities with high-rise buildings and rural areas with complicated geographical situations. The long reach capability of BusPON (range of 50km) allows the system to cater for merging Metro and Access networks in one network. Not only is the bandwidth delivered by BusPON is an order of magnitude better than recent PONs systems, but it is also the first PON system that demonstrates intelligent resilience in single fiber architecture. OptiGlory aims to deliver world class quality solutions with Asian prices and becomes the glory of optical communication.


More than 10 companies show their PLC products in this show. PLC is the hottest topic on the floor. These companies include Broadtech, Photonicshy,Neophotonics,Wuxi Aofiber,Yilut,Agilecom,Solorein etc. And you can also find some companies who are recruiting PLC engineers right in the show.
Although many of them announces they have developed this product for a long time, but in fact, PLC became a hot topic only in this year. Even in last year, you can't count more than 3 PLC manufactures in China.
With the appearing FTTH market in China and around the world, many passive component companies think they must have PLC ability. But of course, they can't have this technology in one night. Chinese manufactures are not good at chip level manufacturing; they are good at packaging technology. Then in order to have PLC products, they have to purchase PLC chip from Japanese or Korean companies. If you can find a source for chip, you will have this product. So you will find more and more PLC manufactures in China, and you will soon see price war in this field. This maybe the reality in the optical component industry in China.

CIOE2008: Another Winter and Broadtech

Topic about another winter of this industry circles around the show. Many exhibitors complain their difficulties with us. It seems our industry just come out of one winter. Do we have to enter another winter today?
But people also tell us that we don't fear about winter very much, because every time after winter, we can always find some companies who live better. Broadex-tech is a good example.
This company entered the industry in the beginning of last winter, and after this winter, they have IPO plan, they have a big market share in overseas PLC market. On their booth, we met two security analysts from Shanghai, they come to this show just to study this company. According to Mr. Xu, Yuanzhong, marketing VP of WTD, PLC will be the focus of next wave fiber optics investment in China.
So who will be the next Broadtech after the emerging new winter, Is it possible to be Fibercom? Its founder, Mr. Huang, Zhangyong has always a dream that is to make chip ourselves. He has once created a great company, Photon, Can he create another great company in this field?

CIOE2008: New Products

Although not many, but still there are some new products. Maybe they are not new for you, but really new product in China, or at least for their suppliers.

Field installed fast connector producing tool from Jiangsu Unikit: Use the special clamp from this company and the standard cleaver, their engineers can make a fiber connector in 2 minutes, the insertion loss is about 0.2-0.3dB, and return loss is about 40dB.

Multi rate 120Km DWDM XFP transceiver and 10G SFP + transceiver from Source Photonics
Different glass fiber, plastic fiber from Nanjing Chunhui

A new power meter from Joinwit: with only half cost of the counterparts from overseas competitors, Joinwit think their new power meter will have better competition ability.

10G SFP+ Transiver from Suzhou Innolight:

Mechanical connector for FTTH application from Zhejiang Twinstar tech: It is said to realize the connection in less than 30seconds with insertion loss less than 0.1dB.

FTTH panel and fiber management system from Ephotics.

CIOE2008: New Images

From the design of each booth, you can also find something behind that. Below are some of our editors'findings on the show floor.

SourcePhotonics: Their booth background is a picture of highway, a very beautiful picture. Many visitors will take a photo before this picture.

HG Genunie: The booth is like two great mountains, some visitors think the company is always climbing these mountains these years.

WTD: They have a new slogan, the original power of optical communication. They really are the oldest company in this industry.

Luster Light Tech: As one of the largest distributor, They use the display board to surround their booth, because they have too many technology to share with their visitors.

Wuxi ZTE: Seems they don't care about the visitors very much. Their marketing manager told us although always a low key company, but their revenue increase by 40% each year.

Premiere: A booth like a room for a Chinese new couple, the big red color really shows something from their managers.

Broadex-tech: Somebody says the booth like a corn, but we think it is more like a sailboat. It is said their PLC products has got 60% market share in Japan and Korea.

Hisense: They also have a new slogan, which is FTTH specialist. Their gift is a 2G U disk, a good gift.

HiOptel: Their new slogan, mainstream supplier of optical components

Fibershow: A parachute shape, but the background music is "fly higher"

Senko: Many pretty ladies, and many good gifts which you can only acquire from lucky draw. This method keeps a lot of visitors in front of their booth.

N-net: Another booth with spicy girls and lucky draws.

CIOE2008:New companies

A four day's exhibition is really a long tired exhibition. Today is the last day of the show, some exhibitors prepared to go back just after lunch. People told us there were less overseas visitors than before, maybe because of the visa problems. Another impression maybe there are more and more small new component companies, many of them are fiber connector companies, but there are also some very special new companies that you should know.
Optiglory: Their BusPON technology has got the patent from HK. The technology is developed by Dr. Zhong Yongkang and Dr. Chen Lixian from Polytechnology University of Hongkong. They told us this new technology can avoid the weakness on security of EPON and GPON systems, the system based on this technology can be easily to add new splitter without affecting the total system.
Chmtech: A ERP software company, their ERP software is specialized on the request of optical communication companies. And they already developed some customers in this industry.
Actech: 10G EML laser, 10G PIN TIA, 10G TOSA/ROSA, do you believe these are from a new company? And we want to know where their customers are?
Innolight Tech: Also make their first appearance in this show, the company is founded by several veteran engineers from JDSU, Finisar. The R&D teak is located in USA.

CIOE2008: The first day

The organizer will be happy to see there are more people on the show floor than before, but the exhibitors maybe feel some kind of inconvenience. Because only the north gate is the entrance to the show, people like us have to waste a lot of time to find that entrance. Those exhibitors who bring a heavy load of exhibiting materials will find this a tough work for them. Even if you find the entrance, it is not easy too to find your booth. The organizer told us they would section exhibitors according to their industry, but we find some communication companies are located in display section, and vice versa.
If we forget this inconvenience, we can find some interesting things from the show itself. Besides those transceiver companies, we can find JDSU and Agilent's test instruments, we can find many big fiber and cable manufactures in China. They are not the usual attendee of this show. Among them, Fiberhome from Wuhan not only exhibits their cable, but also their dispersion compensator, and their FTTH equipments.
In component field, some companies whose main market is overseas market like Lightcomm doesn't attend the show. Some other attractive booths include:
Accelink: After their successful IPO in China, they are proud to set up a highest booth in the show. And they focus on their optical path protecting system.
Fibercom: Founded by Mr. Huang, zhangyong, this is the first appearance of the company. And they have a really good debut, showing a complete line of products from pump laser to PON transceiver.
Century Epitech: They have one of the largest booths in the show, and their slogan is from chip to transceiver, a really great objective.
Hisense: Their focus is their 10G PON transceiver, DVI active cable etc.
Sourcephotonics: Although they focus their exhibition on 10G products, their sales manager told us that revenue from PON transceiver has already been 85% of their total revenue. Their light green background is very comfortable.
WTD: In White and Red color, they tried to tell the visitors their rapid growth in these years by data.


This year is the 10th year for CIOE(China's International Optoelectronic Exhibition, from Sep. 6 to Sep. 10) in Shenzhen. Before the show, we were told by the organizer that they sold the booths very well. Today's CIOE is not only an optical components show in its early days, but a comprehensive show including optical components for communication, optical display, laser, solar energy products etc. Under the new situation, the organizer promotes the show through cooperation with many professional medias in the optoelectronic industry, CFOL( is just one of them, but we are one of a few medias who attended all 10 years' show.
Then from this year's show, what we can expect? According to our understandings, we think they are:
1) Who can be a new Photon or Fiberxon? After Photon is acquired by NewPhotonics, and Fiberxon is acquired by MRV, Can we have a new leading component company in this industry? Can it be WTD, or Hioptel, or Hisense, or Gigalight, the admission ticket sponsor for CIOE2008?
2) Who will change their jobs in those big names? As we know, the founder of Photon, Mr. Huang, zhangyong, has founded another component company.
3) What will happen in PLC domain? Nearly every passive component companies aim at this market and many of them had made big investments.
4) Any new products? We have been looking for new products in CIOE for 10 years, but it is a difficult work. Before this year's show, many companies told us they would have new products, then let us wait.
5) A new forum? The forum is always a weakness of the CIOE, to improve this, the organizer outsources the forum to another company, and then can we have surprise?

Thursday, October 02, 2008

The Base for Huawei’s 100Gbps products ?

10/2/2008, In Brussel, BBWF, Huawei just announced its 1.28T OTN OpitX OSN8800 product which can supported 100Gbps transmission, and its prototype 10G GPON product. From this announcement, Huawei shows to the world that they are just strong enough as their big rivals like Alcatel-Lucent, NokiaSiemens or Nortel.
Several days ago, Chinese just realized their first walk in the space. Both this and Huawei’s new achievements can be regarded as some special gift to 59th National day of People’s republic of China. Chinese has their reason to be pride for all these at this special event.
But if you think today’s China is strong enough just because of this, you must be wrong.
Huawei can introduce 100Gbps transmission product, but Chinese manufactures cann’t produce even 2.5Gbps laser chip in scale. Huawei can demonstrate their 10G GPON product, but their GPON chip and transceiver suppliers must not be local suppliers. In today’s supply chain environment, Huawei can easily acquire what they need from overseas suppliers. From this side, their rivals in US or in Europe have no advantages against Huawei. Only competitors like Infinera who make key components themselves are the competitor that Huawei cannot simulate. Today’s China is a highly contradicted country, very rich and very poor, very advanced and very old, exist together. Even in fiber communication field, it is the same. Chinese companies can lead the world in application level, but they are very far behind on the basic research level, on the material level and on the chip level.

Thursday, August 28, 2008

Shanghai IPTV subscribers will reach 800K

8/28/2008, IPTV subscribers in Shanghai will reach 800K by the end of this year. Since early time of this year, the average IPTV installation is about 3000 homes, and by today, there are already 500k IPTV customer in Shanghai.
What is the real reason behind such rapid developments? Since day one of IPTV development, Shanghai Telecom set up the service according to the customer request. By fully using the new technology supported by IPTV, such as multi pictures in the same screen, High defination quality, text news services, the IPTV services attract customers.
During the Olympic games, IPTV provide better service than CATV, they can provide at most 8 pictures in the same screen. IPTV also can provide different information in time. Also the customers can avoid the advertisment so they can guarntee better experience.

Monday, August 18, 2008

Rumors about China Telecom CDMA bid

8/18/2008, A big rumor is circulating in China's mobile communication field. The rumor is about Huawei, but the result happens to ZTE.
It is said Huawei will get 70% share by using ultra low price strategy in the coming CDMA bid of China Telecom. ZTE and Shanghai Bell Alcater will only have the other 30%. Because of this news, ZTE's stock price has hit the 2 year low point recently.
Several security companies have confirmed that Huawei really would donate many CDMA equipments, but they denied that Huawei will get 70% market share by this. They pointed out ZTE was the dominator in 2007's CDMA market in China. ZTE even has 50% CDMA market share in the world. Compared to ZTE, Huawei's share is much lower.
Some media also reported that Huawei only gave a 600million target price in this 10billion bid. They said that Huawei would increase price after they got the order. This is a strategy that Huawei has adopted several times. Huawei has a good relationship with China Telecom, even they cannot get a 70% market share, their share must increase in this bid. Also Huawei's advantage is based on WCDMA. But that kind of market still isn't clear. It is sure thing that Huawei will try to increase their market share in CDMA market.
The bid result will be published as early as August 20th.

Friday, August 15, 2008

Who leads 40Gbps Market in China?

8/15/2008, several days ago, Huawei is reported to win the first 40Gbps equipment bid in China Telecom. Huawei will provide 40Gbps equipments for China Telecom's Shanghai-Wuxi transmission system. The news invoked hot disscussions in some telecom online forum in China.
The focus of the discussion is not about 40Gbps technology or market, but it is about Huawei's recruiting policy from fiberhome in Wuhan.
Why people cares about Fiberhome? Because in 40Gbps field, It is them, not Huawei, who made the first field deployment in China. Their 40Gbps project is part of China's national 863 hi-tech project, and they began the R&D on 40Gbps equipments early than Huawei.
When Fiberhome invested in 40Gpbs, Huawei still thought that was a futuere project. Today, everyboday knows 40Gpbs market is mature, then we suddenly find Huawei is leading again.
it was said many fiberhome's R&D engineers left for Huawei, that is maybe the reason behind Huawei's success in 40Gbps. But nobody can give evidence that Huawei's 40Gbps technology is from Fiberhome.
Maybe fiberhome is little heard overseas, as a state-hold company, it has longer history, better R&D resources than Huawei in some field. But Huawei's advantage is that they can grab all the necessary resources they need in the right time.

Monday, August 11, 2008

TD Experience on Beijing Olympics

8/11/2008, To provide 3G service is a promise the Beijing Olympic committee made before the games, now How about the performance of China's TD-SCDMA?

A local reporter wrote in his article:” I tried several times to enter the mobile TV channel, it once stopped work temperately because of too many users, when I can enter the channel, the video quality is still not good enough, sometimes there are delay and buffering. "

Beijing Mobile said the poor video quality this reporter met maybe because of the poor network quality and the moving speed at that time.
An engineer in Beijing Mobile pointed out that today's TD-SCDMA can only provide 85Kbps bandwidth, only when they upgrade to TD-HSDPA and when they provide 1Mbps bandwidth, the video quality can be guaranteed.

During the games, Beijing Mobile provides 100K TD handsets to volunteers and 200K to overseas traveller for renting service.

Tuesday, August 05, 2008

Accelink goes to IPO

for their IPO information, pl, visit this link, but there is only Chinese version.

8/5/2008, One of the largest optical component company in China, Accelink(Wuhan)’s IPO was approved by CSRC(China Securities Regulatory Commission). They can go public in Shenzhen small and middle sized stock market as early as this September. Accelink is the first company who successfully goes public this year in Hubei Province. In all component industry in China. Accelink is the first independent company who goes public.
According to Accelink, they are the No. 11 biggest optical component manufactures around the world, whose revenue last year was about 487million RMB. Their main products are optical amplifiers, fiber connectors and WDM components.
Accelink’s products have been purchased by Fiberhome, Huawei and ZTE. They also sell their products in US market through themselves and some distributors. They also have some big OEM partner in US.
Wuhan Research Institute is the largest shareholder of Accelink. Zhongtian, a fiber cable public manufacture in China is the second largest shareholder of them.
Accelink will initiate 40million shares this time. We predict they can get 200 to 300 million RMB through the IPO. How will they use this money? Accelink didn’t give the answer. But It is very possible that they try to merge with their brother company WTD using this money. WTD is a transceiver company with nearly 28 years history. Corning once was WTD’s shareholder, but later they sold all their shares back to Wuhan Research Institute. The gossip about the merge of two component companies under Wuhan Research Institute has been spread for many years. We can’t see any obstacles for this merge after the IPO. After the merge, they will be certainly the largest optical component company in China. And they really have the ability to enter the top 10 fiber optics company around the world.

Monday, July 28, 2008

CMBB Mobile TV will support Beijing Olympics

7/28/2008, according to a recent Mobile Multi media broadcast TV summit held Beijing, a SARFT officer said the CMMB mobile TV network had covered 37 cities in mainland China. The CMMB service will be launched commercially in 2009. SARFT aimes to cover more than 300 cities in coming years.
For the coming Olympic games, SARFT build the CMMB network in all Olympic cities in mainland China. They will guarantee the service can be provided during the Olympic games.
On the other sides,many cellphone manufactures in China are now working on their TD/CMMB cellphone. They have to shipped them to China mobile before Aug. 6th. These handsets will be send to some guests of the olympic games as a gift.
These CMMB cellphone manufactures incluce ZTE, Legend and some others.

Tuesday, July 22, 2008

Fiberhome announces FTTx milestone

7/23/2008, The 3rd largest Chinese communication equipment manufacture, Fiberhome in Wuhan today announced their FTTx equipments have been sold one million lines by the end of this June. Fiberhome also points out that there is a huge increase on sales compared with the same period in last year. Fiberhome's FTTx equipments have been deployed in nearly all provinces in China, and on overseas market, they got customers from Thailand, Russia, Italy, Austrila, and Latin America, North Europe etc.
Fiberhome began to research on FTTH technology since 1995. Now they mainly focous on EPON technology with more than 20 Chinese patents on EPON technology. Their EPON equipments have passed through the certification of big carriers in China.
In April 2005, the build the first FTTH experiment network in Wuhan.
Fiberhome didn't tell which kind of FTTx technology represented by this announcement.
Up to today, they are the only equipment provider in China who provides the market data on FTTx equipments.

Wednesday, July 09, 2008

The Wireless broadband service for Beijing Olympics

7/9/2008, There will be free wireless broadband network services for travelers in Beijing before the end of the Beijing Olympic games. You can go to this website to find the account or password, or I can just list them for you here,
 Account1:wxbj1 PW:wicity Account2:wxbj2 PW:wicity Account3:wxbj3 PW:wicity
Today, you can find such a news from:
the title of the news is "ChinaTel Group Successfully Launches Broadband Wireless Internet Access Network in Beijing for CECT-Chinacomm Communications Ltd."according to the news, The wireless network is live and provides Internet access services across approximately100 square kilometers of metropolitan Beijing, including the 2nd Ring, 3rd Ring, CBD Commercial Zone, Financial District, Zhong-Guan Village, Wangjing Economy-Technology Development Zone, Xuanwuchun Village and Yizhuang,
It is not the first time to know there will be wireless broadband service for BJ olympics, but it is first time for me to know about the company of Chinatel and Trussnet.
In this March, a local media has reported about the Beijing Wireless city project. The report basicly introduced the same content as that in today's news release.
About CECT-Chinacom, it was once very famous for its fixed wireless 3.5GHz broadband project, but because the network and service cann't compete with those big carriers, the CECT-Chinacom nealy disappeared after quite a bit of fanfare . Bbecause of its government background, it still finds its way to live through. Today, we even found it has more overseas background. I only hope the new CECT-Chinacom and the Chinatel behind them really has the ambition and capability to find opporunity for WiMAX in China.

Tuesday, July 08, 2008

China aims at MNP

7/8/2008, according to local media, the new Industry Information Ministry (MII)is considerting to bring Mobile Number Portability policy to mainland China.

During a meeting hold last week, MII officiers were discussing the possibility of one-way MNP in China. The so-called oneway MNP means that only subscribers from China Mobile can transfer to China Unicom or China Telecom. China Mobile dominates Chinese mobile communication market with nearly 70% market share. The introduction of oneway MNP is just to limite this domination.

According to the media who reported this first, even MII finally agrees on MNP in mainland China, there is still at least one year to carry out this policy. Lots of preparation and trail experiment need to be done at first.

Monday, July 07, 2008

Why Pakistan forbide Chinese cellphone?

7/7/2008, According to Pakistan media, all Chinese cellphones are forbiden to sell in thisi country. The reason is that part of cellphones from China use the same IMEI(International Mobile Equipment Indentification) code. According to Pakistan Telecom Authority(PTA)'s request, each cellphone must have one unique IMEI. Recently, PTA found hundred of cellphone users who bought Chinese cellphone couldn't use their cellphone because their cellphone had the same IMEI which has been locked because it belonged to a stolen cellphone. In China, there is no this kind of limitation and there is a strong black industry on manufacturing this kind of cellphones. According to a survey by, 36.02% persons have used this kind of cellphone, and more than 66.58% persons thought they would like to purchase this kind of cellphones, In China, this kind of cellphone has a special name: Village Cellphne. Because of huge market request and the strong immitation behavior in Chinese industry, also because of the inability of the government, this Village Cellphone has become a cancer on the cellphone industry in China.

Sunday, July 06, 2008

iPhone:Still no deal with China mobile

7/6/2008, On june 26, Mr. Wang, jianzhou, CEO of China Mobile once said the biggest blockade for China mobile to introduce iPhone service had been removed. But according to local media, there is still no a timetable for iPhone service in China. Apple Inc. once demanded 20%-30% revenue from China Mobile on this iPhone service. But China Mobile won't accept such kind of demand. For Apple, they have used this kind of revenue sharing method in many countries, they also won't like to surrender to China Mobile easily. It was said Apple had agreed to give up the revenue on voice service, but they still demand 20%-30% revenue from iPhone's data service in China Mobile. The two sides still cann't make a deal on this.Although there is no formal iPhone service in China, but there already are many iPhone users in China. They got the smuggled iPhone and then decoded it. Somebody said there were at least 400K iPhone's in China Mobile's network. At the sametime, some similar products appear in the market, If iPhone cann't go to China's market quickly, maybe it will lose this market.

Thursday, July 03, 2008

China Telecom introduces its IPTV progresses

7/03/2008, China Telecom today announced its IPTV subscribers had reached 943.6 thousand. New added subscribers in this year reach 378.9 thousand. These customers are all in Shanghai, Jiangsu, Zhejiang, Shanxi, Guangdong areas, Shanghai has neraly 50% total market share with nearly 500 thousand IPTV subscribers. China Telecom pointed out there already was two business models for the IPTV deployment in China. The first one is towards high-end customers, the second is towards enterprises, governments. An good example for the first model is the cooperation between Shanghai Telecom and Shanghai Media group. Shanghai Telecom is good at internet service providing, Shanghai media group has the licence for video services. From May 17, 2008, the two companies has introduced HD-IPTV services, they now can provide one HDTV channel and over 200 hours VoD contents. 900 customers have choosed this service, and 2000 more customers are waiting for installation. The bandwidth requiremnt is 12Mbps for this application. China Telecom take advantage of ADSL2+ technology to increase the bandwidht. They are also makeing experiemnt on PON technology. For the 2nd model, China Telecom has cooperated with CCCP's some local organizations to provide remote education throuth their IPTV network. Using this method, they also developed some IPTV customers in the rural areas.

Monday, May 05, 2008

Let more optics replace copper

5/5/2008, A friend of mine who works in Shanghai Telecom told me, “Let more optics replace copper”(or Optics advance and Copper backward) was a very hot topic in China Telecom today. Many local China Telecom branches are eager to replace the copper network with new PON network. They even fund the PON project by selling the old copper network equipments.
“Let more optics replace copper” is a concept introduced by Mr. Wei leping, CTO of China Telecom. In the FTTH forum hold in Beijing this March, Mr. Wei talked about FTTH again. And this time, he really showed some different ideas.
First, He pointed out that FTTH should become a national strategy. He also said he once introduced FTTH and 4G mobile communication to the leaders of China. But the politicians chose 4G instead of FTTH. Secondly, Wei said that without IPTV service open to telecom service providers, there is no real FTTH development in China. Thirdly, he thought that China Telecom can provide bandwidth more than 50-100Mbps to subscribers. As I know, He once said 30Mbps was enough for China Telecom. And the fourth problem, there are some negative ideas about FTTx inside China Telecom. Some officers are more familiar to copper network than optical network. Anyway, by the concept of “Let more optics replace copper”, there has been already a very good environment for optical products suppliers in China. The first beneficiaries are those fiber cable manufactures. When can we see that PON equipments suppliers, even component suppliers get profit from these? That will be the real success of this concept.

Thursday, April 17, 2008

China Mobile builds wireless community in Shanghai

4/18/2008, Information committee of Shanghai city government, China Mobile Shanghai branch, yesterday signed a cooperation contract to promote wireless community in Shanghai.
Shanghai Mobile says they will build 5-10 wireless community this year, Pudong district and Changning district will lead the way. Shanghai mobile introduces the future wireless community service will not be free.
According to Shanghai mobile, they can use GSM, GPRS, TD-SCDMA wireless broadbrand technology for this purpose. They have one of the biggest wireless network around the world, full experience, technology advantage.

Tuesday, April 15, 2008

ZTE :Wimax will become new backbone of revenue

4/15/2008, According to Mr. Yuan,wei, WiMax global director of ZTE, he thinks that the revenue from WiMax can be compared with the revenue from CDMA in ZTE in 3 years. Last year, ZTE’s revenue from CDMA is over 10 billion RMB.
Yuan points out the WiMAX terminal will be in commercial application next year, then WiMAX will get 20% market share of total wireless market.
Last year, ZTE has already signed a bill with Sprint Nextel on WiMAX terminal. The order is over 100million USD. This year, ZTE has got several WiMAX orders in Africa.

Tuesday, April 08, 2008

Xiaochu Wang talks future

4/9/2008, according to local media, chairman and CEO of China Telecom,Mr. Wang, xiaochu talked about the possible shuffle of China telecom service providers in a recent meeting.
Wang told the media that they still didn’t know if they would buy the CDMA network of China Unicom. But he thought that China Telecom would use 3 or 4 month to finish the reorganization. Also they can provide wireless service in 3 months.
Wang also said they would consider to issue new debt or new A share to satisfy the financial request. By now China Telecom only has 30.8% debt capital ratio which provide big room for them to issue new debt.
Wang also pointed out that they would use different service to compete with China mobile. They would use their advantage of fixed network. By today, China Telecom has 8million WiFi user. To merge this WiFi network with future mobile service, China Telecom are sure to bring better service to their customers.Even without this shuffle, Wang still thinks that the transformation of China Telecom can keep their growth. Last year, although traditional voice service went down 9.6billion RMB, but there is 14.3billion RMB increase on non-voice business. China Telecom still has big increasing capability on broadband service.

Tuesday, April 01, 2008

230Gbps bandwidth connects Netcom with the world

4/1/2008, According to China Netcom, they have total 230Gbps bandwidth to connect to the overseas network. Netcom has three sea cable landing location, which is Shanghai and Qsingdao., Shanghai, Beijing, Guangzhou three international bureau, eight land cables who connect to other countries. Today China Netcom already has a international Mesh network. On March 27, Vietnam telecom and Netcom build together Sino-Vietnam Pingxiang international land cable.

Monday, March 17, 2008

New minister of Industry and Information Ministry

3/17/2008, The national people's conference today voted Mr. Li, Yizhong as the first minister of the new Industry and Information Ministry. Mr. Li graduated from Beijing Petro College in 1966. He began to work in 1967 first as a worker, then engineer, deputy manager of workshop, deputy chief engineer, general manager. From Dec. 1984 to July 1987, he was the manager of Qilu Oil and Petro company of Chinese petrol and chemistry group. From July 1987 to August 1997, he was the deputy general manager of Chinese petrol and chemistry group. From August 1997 to April 1998, he was the chairman of Yizhen chemistry and fiber Co. Ltd. In April 1998, he became the general manager of Chinese petrol and chemistry group. In Feb. 2002, he became the chairman of Chinese chemistry and petrol group. In year 2003, he became the genaral secretry of SASAC. From feb. 2002, he became the general director of state administration of work safety. He is famous for his work in this position in China.

Friday, March 14, 2008

The price of optical cable and fiber reduces 40%

3/14/2008, according to three professonal industry association, the cable branch of associton of electronic components, cable branch of electricity products, cable branch of communication association, compared to year 2002, the price of optical fiber and cable has reduced 40%. 31 suppliers are surveyed this time, they has more than 80% market share of Chinese market. The survey shows that:
Price of G652 fiber reduces from 160RMB/KM to 80RMB/Km Price of G655 fiber reduces from 400RMB/Km to 230RMB/KM
but the price of material PE increase from 7500RMB/ton to 13500RMB/ton.

Tuesday, March 11, 2008

Bye bye MII

3/11/2008, According to the new organization renovation of Chinese government, the industry managing function of National Development and reform commission, the total function except nuclear electricity of nation defense science commission, Minister of information industry, information office under state council will be merged into a new ministry: Industry and information ministry. The chief function of this new ministry will be:

Make plan , strategy and standard on industry development;
Monitor the everyday work of the all industry;
Promote innovation on important equipment and technology
Manage the communication industry
Promote the information application
Guarantee information secure of the whole country

The establishment of this new ministry belongs to a bigger organization renovation in China. The renovation is for improving the efficiency of government. But don’t expect it will soon have good result on communication industry.
First, it doesn’t merge the function of state-owned assets supervision and administration commission of the state council (SASAC) which is the large share holder of all 5 services providers in China. Without SASAC, I don’t think this new ministry will have any big difference with the former MII。
Secondly, it doesn’t merge the function of SARFT which is responsible for the radio and television, film business. The communication industry is converging, except in Chinese government.
From my opinion, I think an organization like FCC is more important than such kind of organization renovation. Also the market open policy is more important than the reshuffle of the five carriers. Usually, after every renovation or reshuffle, there will be a long stagnant period, then this time, how long will it be?
The leaders of China look the information technology very important, but I think they don’t understand how important and how to use this information technology.

Thursday, March 06, 2008

one more Huawei guy makes suscide

I am sorry to write this again, but it really happens again. In 12:20AM March 6, F2 cafeteria of Huawei Bantian R&D base , another Huawei employee named Zhang, Liguo made suscide. He jumped from the 3 th floor and died at once.

Local police has said Zhang died of suscide, but didnot disclose the reason. Also they don't think the death is because of hihs work in Huawei. Mr. ZHang is in his 36 age this year, he worked in software department of Huawei. And he joined Huawei only in the November 2007.

Tuesday, February 26, 2008

Another Huawei employee made suscide

2/26/2008, Beijing time, 13:25 in Chengdu, the biggest city in west China, a young man made suscide. He jumped out from the 4 th floor of Tianfu software park, where Huawei Chengdu R&D center locates. When ambulance car arrived, the man was dead This is not the first time Huawei employee makes suscide, last year, there were two other cases, both in Shenzhen

According to local media, the guy just graduated in 2006 from a Chengdu University. Before he made suscide, he just came back from overseas business. Somebody said he made a big loss in stock market.

Thursday, February 21, 2008

Feedback to the comments

Thanks to your interest on this blog, for your problem between Datang telecom and Datang mobile, let us look at back their history.

In year 1993, the post & Telecommunication institute was divided into three parts: China Academy of Telecommunication Technology,(CATT) China Academy of Telecommunications Research and Planning China Academy of Posts Research and Planning.
at the same time, Xi`an Datang Telecommunication Co. Ltd. was established based on 10th institute. Xi'an Datang specially developed on PBX switch at that time.
In 1998, Xi'an Datang developed GSM900/1800 system, the same year, Datang Telecom Technology Co., Ltd was established and then it ' s A-shares began to be traded publicly.
In year 1999, Datang group was established, Datang telecom and other research institutes of CATT was also merged into Datang group.
In year 2000, it was Datang group who introduced TD-SCDMA in ITUT.
In March 2002, Datang Mobile was established as the sign of the mature of TD-SCDMA. Datang Mobile headquarters in Beijing, with one subsidiary in Shanghai and one branch in Xi’an. Datang Mobile is dedicated to the research and development of TD-SCDMA. But because there is not a real TD market, there is in fact no revenue for Datang mobile for many years.
Because Datang telecom loses money for many years, also because of the 3G concept in stock market, Datang group has begun to merge Datang mobile with Datang Telecom.

For the problem about What technology are they going to use: GPON or EPON?
I can say except Huawei, maybe ZTE, all others are using EPON, because it is cheaper. There is one exempt, Former Photon technology's Beijing R&D center once worked on BPON, they were later purchased by RAD. There is also some others who work on ethernet FTTx solution like Cisco's.

Tuesday, February 19, 2008

China will invest 70billion on 4G research

2/19/2008, Professor Zhang, Ping is the member of “New generation broadband wireless mobile communication network” project team in China, he also joined the work of 4G trial network in Shanghai. According to Professor Zhang, the project is a 15 year future technology developing project in China, Chinese government will make huge investment on this project. The government will invest directly 20billion RMB, at the same time the government also will organize enterprises to invest 50billion more. This investment will more than the investment on TD-SCDMA.
The Shanghai 4G trail began from year 2001, finished in year 2006, and cost more than 100 million RMB.

Monday, February 18, 2008

China Telecom uses PON to rebuild damaged network

2/18/2008, The big ice and snow in southern China brought China Telecom a huge loss, but there is also good news. That is China Telecom prepares to use PON network equipments to rebuild the damaged network.
This is said to be in line with the “Optic advances and Copper backwards” strategy of China Telecom. China Telecom will install PON ONU in some big villages, so also transform the old narrowband copper network to new broadband fiber network in the rural communication network. Through this, China Telecom can optimize its network, increase its bandwidth providing, lower CAPEX and OPEX. Traditionally, China Telecom liked to use small PDH terminals to build the rural access network. Compared to PDH equipments, PON is gaining more and more advantages.

Thursday, February 14, 2008

What will happen in this March?

2/14/2008, Next month, new term Nation People’s Congress (NPC) will be held in Beijing. One of the most important thing of this conference will be the reform of government organization. For me, I care about if the MII will merge with Sarft(The state administration of radio, film and television), if big 5 carriers reorganized again.
For the first thing, it is only a guess. Convergence has been the trend around the world. China should not lag behind this trend. Also China government is considering merging many different departments into one more functional department. It was said the new merged department would be more effective.
For the second thing, some financial institutions including UBS, Morgan Stanley have predicted it could be happened in this March. The most possible plan is that Unicom is divided, both China Telecom and China Netcom will have part of Unicom, China Mobile will acquire China Tietong, so all carriers will be all-service carriers.
2008 is the 30 years anniversary of the “Reform and open to the outside in China”. Many people guess there will be some big reform activity. Could it really happen? Let us wait.
One good thing maybe is today, China government finally announced they would adjust the roaming charge of mobile service after a criticized public hearing. Compared to the old standard, mobile customer will have at most 71% reduction on roaming charge in the future.

Huawei organizes optical network R&D team in Wuhan

2/14/2008, It is not the first time I heard about this, but only this time I can confirm its existence. This is the research institute of Huawei in Wuhan, a city who has the name of optical valley in China. Wuhan is also the hometown of Fiberhome, the No. 3 fiberoptics equipment manufacture in China and many important components manufactures like WTD, HG Genuine.
Wuhan Research Institute (WRI) introduced the first commercial fiber system in China. And since Huawei entered this field, many engineers of Huawei are from Wuhan. But for a long time, Huawei didn’t need to set up a R&D office in Wuhan. Why today they change their mind?
I can’t fully understand the decision of Huawei this time. I wonder their aim is to lower their R&D cost further, also they hope to attract more engineers from Fiberhome and WRI. Fiberhome and WRI has some advantage on 40Gbps application and DWDM technology compared to Huawei.
Another reason, maybe Huawei hopes to attract more component engineers. I need further information to confirm this. Before Wuhan, Huawei has set up a R&D office in Chengdu. They competite with Alcatel Bell there on SDH system engineers.

Wednesday, February 13, 2008

How much can a Huwei employee earn?

2/13/2008, Below information is abstracted from some internet BBS in China.
A:I have worked in Huawei for 7 years, before I left there, I could earn 300K RMB a year. The Bantian base of Huwei is like a prison, the information security policy made us insolated from outside. Employees of Huawei always talked about Huawei. Also some old employees got a much larger salary compared to their work. I am happy I leave that company, Now I can have a normal life.
B: I have come to Huawei for nearly 3 years. Last year for the first time I got the inside stock shares of Huawei, this year I got some more shares. All these shares worth 350K RMB now. I think those people who leave Huawei are not really good employees. When I came to Huawei, there is a female colleague. She didn’t work hard and got a D review score, so she left Huawei herselvs. I heard that she entered Moto later.
C:I have a classmate in Huawei who has worked 4 years there. Last year his revenue is about 250K. By now, for a master student, the entry level salary is 5500RMB each month, after one year, he can also have some special final prize award which worth 10K to 100K. D: Compared to Cisco and Erission, Huawei’s salary is attractive also. Take an example, for a graduate student, if He enters Cisco, he can earn 7800RMB a month, and he can get 13 months salary each year, but no other awards. If you can work in Huawei more than 5 years, you can earn more than a manager in Cisco.