Tuesday, July 27, 2010

Interview: Dolite aims brand image increasing

July 27,2010, After nearly 8 years operating, Dolite changed her Chinese name this month. The old name has the city name Zhangjiagang, but the new name has the province name Jiangsu. According to Mr. Wang,xuan, CEO of Dolite, the name change is a try to break up developing limit, to increase brand image and influence on the market.

Focusing on transceiver and active assembly products, Dolite was founded in November of 2002, just in the difficult times of total optical component industry. It is a surprise to see that Dolite can survive in the cruel competition of those years. But in the past 8 years, the low profile Dolite seldom gave us any other surprises. Not many people know this transceiver company located in Zhangjianggang, a small city near Suzhou.

"The name change is the result of our new strategy on stepped-up transformation and innovation. With the continuous improvement of our managing system, R&D resource, risk-preventing ability, the name change will definitely increase our core competence. “Said Mr. Wang,xuan.

Up to today, Dolite's product line includes TOSA, ROSA, BOSA, TROSA assembly, low speed 1x9, SFF, SFP transceiver. Their next target is 10G transceiver and PON transceiver. Dolite develops their own measuring lab, reliability test facility inside company, they also cooperated with Xi'an telecommunication university’s optical communication team. "We already have some market share, now we want to carry on some vertical integration, develop more new products, based on our current market share. At the same time, we would like to cooperate with customers, other transceiver companies to develop new market. " States by Mr. Wang Xuan.

According to Mr. Wang Xuan, Dolite's target is to make Dolite the first class fiber optics component supplier around the world. "We have a very good team, both on managing and on R&D. This gives us confidence to fulfill this aim. "Wang Xuan told us.

Dolite now has a capability to produce 500K OSA assembly and 100K transceiver, with a revenue 80 million Yuan each year.

Huawei's Ren appears on TV

July 22,2010, The always low-profile founder and boss of Huawei, Mr. Ren,zhengfei appears on TV, this is the topic of a blog article on Netease. According to the author, Ren appeared in a CCTV(China central TV) news about the round table meeting of China's Premier minister Wen,jiabao, Germany's Chancellor Angela Merkel, who is visiting Xi'an China, and entrepreneurs from both countries. The blog writter described Ren very unaccustomed through the lens of news reporters. Not like others who are busy on writing notes or listening carefully, Ren sat there cross-legged absent-mindedly.

About the deal between Nokia Siemens and Motorola, there are also many discussions. A blog on Netease compared Motorola with Nortel and predicted that Motorola must have another sell in the future. Another blog on Sina praised Motorola to make a good choice. Surrounded by competitors, Motorola can't succeed on both LTE and WiMAX. On the contrary, mobile device business has much bigger market for Motorola. For Nokia Siemens, a blog on Sohu judges that Motorola wireless network business another burden of Nokia Siemens. Some people also connect the recent Motorola suit with Huawei with the Nokia Siemens deal. They think that to keep patent asset in Motorola is just for this suit. It is Nokia Siemens's strategy that to delay Huawei's advancement in North America.

Dimension:a fiber interferometer manufacturer's ideal

July 8,2010, Shenzhen, There are not many fiber optics instrument manufacturers in mainland China, Dimension(www.weidujs.com/en) is one of them.

Founded in May of 2007 in Shenzhen, Dimension offers a wide category of fiber optic products includes Sana fiber end face interferometer, Easyget Fiber enface inspector, Offsoon Fiber Cleaning machine and cleaning gun, 106 & 206 Fiber fault locator. The appearance of Dimension covers a long neglected area in China's fiber optics industry.

"Although our company is not big, we have some technology even advanced around the world." Miss Yan of Dimension told us during a recent customer visit. "All our products are developed by ourselves, we have several patens on fiber end face interferometers. Our manual adjusted end face interferometer is the first in mainland China with very high stability and repeating performance." Miss Yan continued.

According to Yan, Dimension's advantage is her very high performance-price ratio which is incomparable for their foreign competitors. Beside that, the technology support is also their main advantage. "The key of interferometer is its software system, the test, upgrade and maintain of the software are very important. With a national wide technology support network, Dimension can provide their customers fastest support. "

Talking about Dimension's mission, Miss Yan told us:"We are not a company for those kind of quick money. Fiber interferometer is a long live product, Dimension also want to be a long live company. Up to now, we have Sunstar, Yiyuantong, HG Genune etc. many famous fiber optics companies as our customers. In Shenzhen market, we have more than 80% market share, our products also entered Japan and US, Europe market through our distributors. "

On Dimension's website, the company listed a series of new products they developed in the past. Not many Chinese companies can have such an achievement. In this year's CIOE, Dimension will announce several other new products.

Anti dumping, Huawei in Russia

July 8,2010, The anti-dumping investigation by EU on Huawei/ZTE's data card aroused many discussions in telecom BBS of China. On C114, somebody said that Option is jealous; somebody said that is trade protectionism; somebody suggested Huawei and ZTE should make some adjustments; A netizen gave his analysis. Huawei's data card is good on both quality and customized function. Even as Option's largest shareholder, T-mobile also purchased these cards from Huawei. Option once suggested Huawei to share the Europe market, but was denied by Huawei.
The EU recently began the investigation into the import of Chinese-made modems, a market worth more than US$4 billion, based on a grievance filed by Belgium-based Option. In the European market, Option, Sierra Wireless and Novatel Wireless had been the top suppliers of wireless data cards until Huawei and ZTE won orders increasingly more orders from the main mobile telecom carriers, including Vodafone, T-Mobile, Orange, Telefonica and O2, according to China-based media 21st Century Business Herald. Huawei and ZTE are estimated to have attained a combined share of 70-80% of the European 3G data card market, the sources noted.

There is no all good comments for Huawei. On Sohu, an author described Huawei Russia branch's status quo in a satirical tone. “Some managers are busy to have 2nd and 3rd child, some are busy on changing wife. Others are busy on improving personal life quality, having personal secretary, luxury car. There is also inside struggle in this brunch, the duplicate position let many employees not want to work. There is still half market waited to be developed, but nobody has interest on that.” Some responses to this article are interesting. Somebody said that "Big company always has this kind of things. " Another one said that maybe caused by Russia's special culture.

Forget Huawei, let us look at China Telecom. On Neteasy, a self claimed China Telecom employee gave his detailed salary information. According to him, as an usual employee in China telecom, his earning every year is between 60K Yuan to 75K Yuan (8K-10K USD). This number is a very good number in today's China. But some netizens doubt if he can earn so much. They said that China Telecom's employee can only earn 30K to 50K Yuan every year.

Friday, June 11, 2010

FTTH rollout brings high request on ODN

6/11/2010, China usually boasts herself as the fastest growing FTTx market. Both China Telecom and China Unicom are actively investing on FTTx rollout. The broadband bandwidth that Chinese residents can acquire is increasing from 2Mbps to 8Mbps, even to 20Mbps. But behind this FTTx passion, China still lacks two most important factors of FTTX, engineering support and real subscribers.

With the launch of the new triple play policy, the IPTV service will be sure to help telecom service providers get more FTTx subscribers. And on this week's Shanghai "Broadband China FTTH summit", we can find more traces on China's FTTx engineering support.

The key speaker of the summit, Mr. Zhang Jun, vice chief engineer of Shanghai Telecom, China Telecom's Shanghai Branch, explained Shanghai's City Optical Network plan which aims at at least 200K FTTH subscribers in year 2010. According to Mr. Zhang, they plan to invest 6 billion Yuan in two years to cover 1.5 million subscribers in the first phase. For this City Optical Network, ODN(optical distributional network) is the most important and most difficult to build because it has to be future proof, to guarantee at least 20 years reliability, because there is no standard on how to build such ODN, also because it is very difficult to build in some existed old community.

Zhang also explained the FTTH construction standard edited by Shanghai Telecom themselves. In this standard, they suggest to make one time split for less populated villa communities, and to make two times split for condo areas. The optical split ratio is suggest to be 1:64. The standard also requires to reduce the optical connector to expand transmission distance. In the standard, there are also requests on different kind of indoor or outdoor cabins. Besides, Shanghai Telecom also edited a training material on FTTH construction, established a simulated training environment, 1400 more technicians have accepted this training.

At last, Zhang gave his worries which are also suggestions on FTTx supplies. He said that telecom service providers care much about how quick they can repair the access network in case of broken cable, how to increase installation density for space limited ODN environments. He suggests suppliers to develop smaller package cable, prepared connector for ribbon cables.

In fact, from the small exhibition attached to this summit, FTTx component suppliers really are working on that direction. 8 exhibitors from Jiangsu, Zhejiang, even Korean took part in the show. They exhibited their FTTx products from fast connectors, prepared connector, V groove products to fast fiber splicing machine, and POF products. HG Genuine shows their full line FTTx transceivers on the show.

What Chinese talk in Telecom BBS: Should we sell our ZTE stock?

6/11/2010, Although triple play is the hottest topic in China's telecom industry these days, not everyone can has influence on that policy. In BBS, Chinese care about much where they can earn more money in this industry.

Two threads about interview experience attracted many discussions. The first is from C114, the title is "For 80K-100K Yuan each year, Should we accept this condition to be sales manager in Raisecom?" The author considers it too low to accept. Many netizens support him, but some netizens say that it is acceptable, considering that Raisecom will go public soon. Raisecom is a Beijing ethernet and optical network equipment supplier.

The second is about Huawei from Tianya. the author described the interviewer of Huawei too aggressive, too arrogant, two rampant by making him without a single redeeming feature. Some Huawei's funs pledged for Huawei to describe that as a kind of pressure test. Anyway, Huawei is always popular by telecom engineers, even in US. An article published in "Wanqu Review" listed several high end talented persons recruited by Huawei in US, including former Cisco ERBU CTO Michael Beesley, former Procket founder Bill Lynch, For McAFee first scientist Fengmin Gong etc.

Netizens were worried about ZTE's stock share price these days. They wonder if they should sell off their ZTE stocks facing declining ZTE stock price. The shuffle of leaders and the limitation in India's market make ZTE's stock price plummet. Some netizens say that ZTE sill has a great developing ability in the long run. It is the time to purchase ZTE stocks.

On Sohu, netizens are showing their sympathy towards a family who works in Nokia Siemens Beijing. Because of a car accident, the husband and daughter died, the wife is seriously injured. Nokia Siemens China is organizing a donation activity for the family.

Another article on Sohu is about Huawei. The title is "Huawei is really black". The author scolded Huawei trampling Chinese employee's right, like not extra payments for work overtime, treat employees as animals. At the same time, Huawei will not do the same on foreign employees. The article got many supporters on Sohu.

On Tianya, a post titled "Shall I support my Huawei husband to work overseas?" attracts netizens’s interest. A reply for the post discouraged this poor wife to support his husband, he said that overseas work is the tomb of the marriage. Behind Huawei's glory, how many poor wives are crying?

It is easy to launch a optical communication company in Wuhan

6/11/2010, "I just founded a new company, when you have time, remember to care about our company." Several days ago, I received a short message from a friend who contacts me not very often.

I couldn't help sighing when I received that message. Only early this year when I recognized him, he is still an usual employee in a optical communication company in Wuhan. Only in several months, he becomes a president of a new company. I am eagerly to know his whole process on starting this new business, but he is so busy that I can't catch him to know more. So I collect some information on creating a new company in Wuhan, China's optical valley. To my suprise, it is really simply to lauch a new business in Wuhan today.

Yesterday in his office, I finailly met this old friend. His face lighted up although he looked blacker.He was very talktive. He introduced his new bright office, his partner and his employees. The technology VP title on his name card let me realized his change. According to him, his new optical component company will first be a buy&sell company, then try to set up his own factory. "In optical valley, there are many optical communication companies, there is already a matured indudtry, if you can work hard, you can always find your market. " Said he.

The friend told me ther are many advantages to set up companies in Wuhan. First, it is advantage on talented persons. There are tens of universities including Central China Science and Technology University, Wuhan Telecommunication and Post Institute in this area. Wuhan is one of the cities who has the most universities in mainland China. The second is that Wuhan has already had many fiber optics companies including Fiberhome, WTD, Accelink, HG Genuine, Oplink, Opus etc. Not only fiber optics companies, Wuhan is also attracting many other high tech companies including Huawei, Microsoft, Foxconn to set up their offices and factories here. The third, Wuhan has the title of national forest city in mainland China. The living cost and environment is continously improving, which attracts talented persons very much. The forth, Wuhan has very convinient transport network. From Wuhan you can go to many big cities of China in just several hours by train. The last, China's Central government is giving Wuhan more attractive policy advantage. Hubei provincial and Wuhan city government are also introducing more new policies to attract investors and other talented persons. For example, from talented person service center of Wuhan, the thread to start a new business in Wuhan is lowering. The center is also providing managing and marketing training for those new enterpreneurs.

Several days ago, I once talked with a friend about creating new enterprises. He told me that his company is a good example. The company started up from 4 employees in year 2007. Begining from looking for new customers, they developed the company step by step. "We often faced faileur, but there are so many opportunities here, small company is more flexible. If you can find an opportunity, you can develop. " Said he.

(Reedited and translated from Andy Liu's article published on China Fiber Optics Online)

Monday, June 07, 2010

China passed crappy triple play policy

6/8/2010, 2 days ago, Beijing, the 5th draft of China's triple play operation policy was finally passed on a State Council's meeting organized by vice premier minister, Mr. Zhang Dejiang, at the cost of the loss of access control of IPTV content for telecom service providers. According to the draft, cable TV providers under SARFT (State administration of radio, film, television) can provide internet, VoIP service formerly in the future, at the same time, telecom service providers need SARFT’s permission to provide IPTV services. It was said the new triple play policy will be launched officially on June 25.

On January 21 2010, State Council decided to forge ahead China's triple play operation. Since that day, SARFT and MIIT (Minstry of Industry Information Technology) fell into a struggle on who can control the IPTV content. MIIT hopes they can have this power because that convergence of telecom service and media industry is trend for the telecom industry. Also from their past experience of struggle with SARFT, they understand that without this power, they can’t develop IPTV fully.

But for SARFT, their cable TV service providers are in relatively poor competing situation. Their is no a national cable TV service provider in mainland China, the total revenue of all cable service providers is much less than the revenue of any telecom service provider in mainland China. They are afraid to lose completely in the future competition if they don't have any key competition ability. Also, from day one of the launch of SARFT, they are given the responsibility to check the TV and film content in cooperation with communist party’s propaganda department.

For above reasons, in the former 4 drafts, both SARFT and MIIT won't want to step back. But suddenly, the 5th draft was passed in favor of SARFT. Nobody knows the real reason why MIIT want to give up; maybe it is under the pressure of state council. According to this new draft, all telecom service providers' future IPTV service must cooperate with local cable TV service providers. The later will be responsible for the content platform, and local SARFT administration will decide if telecom service providers can provide IPTV service.

Telecom service providers still have some weapons to defend cable TV service providers. In today’s mainland China, only telecom service providers have the access ability to international Internet. The telephone number resources are in their hands also. No one knows if telecom service providers will give real help to cable TV service providers on those services. Although MIIT gave up in this section, they won't give up in the future. For China's triple play, there is still not a clear future.

The launch of the new triple policy is at the cost of the loss of telecom service providers. Maybe China’s government still hopes that there is a stronger national cable TV service provider in the short future. But can SARFT really reach this aim?

Thursday, May 27, 2010

China Telecom aims at large scale deployment of 100G on 2014

5/27/2010, Optinet, one of the most important technology forum about optical network industry in China, is held on May in Beijing each year. Every year on Optinet, you can always here about some very interesting and very important technological point of view from those technology gurus from China's service providers. Every year, the topic of Optinet is always the hottest optical network technology that year. And in this year's Optinet, It is 100G technology.

On yesterday's open speech of Optinet 2010, Vice chief engineer of China Telecom, Mr. Zhang,chengliang gave a time table on 100G deployment of China Telecom for the first time. According to Zhang, they will first test 100G WDM equipments from different suppliers in their labs, then they will make field trial in 2013. He predicated they would launch large scale deployment in 2014. Zhang admitted that 40G technology would not support the traffic request after year 2014. Every 5 year, China Telecom's network traffic increases by 8 times. Zhang also praised that 100G technology is a revolutionary technology for optical communication. The DSP, new modulation and coherent receiving technology all will make optical communication up one level. In his point of view, 100G technology will have longer life span, and can be used at least to year 2020.

Another keynote speaker yesterday was Mr. Mao qian, director of optical communication sub-committee of China telecommunication committee. His speech was about FTTH and M2M network. According to him, China has already had 20 million FTTx subscribers, which exceeds Japan's scale. But among those FTTx subscribers, very few of them are FTTH subscribers. In the future, the coming triple play policy will further promote China's FTTx development. And for the future Mache to Machine (M2M) application in home, FTTH will be the only choice to connect this home M2M network to Internet.

China Mobile opens tender for PTN equipments

5/27/2010, Beijing, China Mobile has just opened tender for purchasing packet metro transmission network equipments (PTN) for year 2010. The total value is estimated to be over 5billion Chinese Yuan.

According to China Mobile, they will invite bid for PTN and IPRAN (IP Radio Access Network)equipments. The qualified bidders must be the equipment manufactures themselves or their first degree distributors. All their equipments must have passed the certification of China Mobile's Lab. The deadline for purchasing the bidding document is May 31,2010.

"China Mobile has invested 3billion RMB on PTN in year 2009. We have deployed PTN in large scale in Zhejiang province, and there are several trial networks in Guangdong, Jiangsu etc. We are also the first to realize 1588V2 synchronizing around the world. " Mr. Xu,rong, senior researcher of China Mobile's research institute said. He also said there still is the margin for PTN manufactures to reduce price because of the large market request and competition.

In year 2009's PTN tender of China Mobile, Huawei, ZTE, Fiberhome, Alcatel Shanghai Bell, Erission, Nokia Siemens all shared the 3billion RMB market, Huawei and ZTE each has 35% market share.

Besides PTN, China Mobile also decided to reinforce their fixed line broadband network by adding 6million lines this year. According to local media, China Mobile already deployed 3million access lines in the first quarter of 2010.

For China Mobile's competitors, fixed line broadband business is a useful tool to compete with China Mobile. Both China Telecom and China Unicom have used combined fixed line broadband and cell phone services to attract new subscribers. This is attractive especially for enterprise customers. Because of this, China Mobile has realized that fixed line broadband business is a very important arm for their total business.


5/25/2010, A POF forum organized by a state-hold telecom media was held in Beijing yesterday.Hundrads of represents from POF related products manufactures, service providers,universities and research institutes attended the forum.

Two things from this forum should be noticed. The first is that the forum showed that China already has a integrated POF industry. About 6 or 7 years ago, China only had several POF fiber manufactures. But today, there are more POF fiber suppliers, China has her own POF manufacturing technology, there are more POF related components and equipments manufactures. A Xi'an company showed her full line 650nm POF transmisstion system on the forum. The POF manufacture, Dasheng also has her own POF LAN solution which was deployed in several trial networks.

The other important thing from this forum is that China's service providers began to recognize this technology, although they think that it is still not mature. Both China Telecom, China Unicom and China Mobile have repesentives in the forum. Although they showed some interests on POF, but we can also see that they know little about this technology. They have no interest to deploy POF in the short future.

Somebody suggested that government should take the responsibility on deploying more POF trial networks, government should promote the standard making on POF. Of course, it is a very good suggestion, and the only possible solution that POF can have a good future in China. Repensitive from China Telecom has explained clearly on the forum, "They can not deploy POF while losing money. "

In China's telecom industry, government once interfered in the promotion of TD-SCDMA standard, and really got very good achivements. But TD-SCDMA is developed by some state hold big companies. In POF field, none of the players has government background. POF is not TD-SCDMA, we still can not see a clear future on China's POF market.

What Chinese talk in Telecom BBS : Inside exchange of ZTE

5/16/2010, It is the time to publish financial reports. It is the time to doubt those financial data. A lead on C114 named “comparison of financial data between ZTE and Huawei” compared the number of employees, revenue, cost, net income, margin of net income etc in both companies. From that he found that ZTE’s cost profit ratio is only one thirds of Huawei’s. In year 2009, ZTE has a cost profit ratio of 8.18%, Huawei is 23.37%. In year 2008, ZTE is 7.67%, Huawei is 21.46%. For the profit margin, ZTE is 5.52% in year 2009, Huawei is 14.12%. In year 2008, ZTE is 5.11%, Huawei is 12.94%. For gross fit margin, ZTE is also lower than Huawei. The author’s conclusion is that ZTE transferred benefits to high ranked managers using series of inside exchanges.
People are also talking about Huawei and ZTE’s struggle in India. On one side they praise their policy more mature than before, but on the other side, they remind the two companies not to lose their respect in the process of earning money.
On C114, there is a lead about who is the leader in China’s PON market. He concludes that Huawei and Alcatel lead in GPON market, ZTE leads in EPON market, Fiberhome does well both in GPON and EPON in China’s market, but do a poor job in overseas market.
In China, Huawei’s employee is often admired by their high income. On Sohu, a lead named “Several 5 years Huawei employee prepared to buy cars for their wives using their bonus”. The lead said that Huawei’s 2009 year bonus tripled compared to last year. Somebody doesn’t believe the truth of this lead, somebody criticized that the bonus is in exchange of those employee’s health. Facing criticism to Huawei’s HR policy, a lead on Tianya supports Huawei. “As a new employee in Huawei this year, he believes that Huawei does a good job both in salary standard, social guarantee, and transparency of organization. He suggests all new employees in Huawei shouldn’t eye too high, but need to do more solid jobs.”
There are also criticisms on service providers. On Tencent, a so-called Tietong (China Railcom) employee wrote that a inside document of China Mobile shows that they will only finish the merge with Tietong if case of Tietong can earn money. According to government’s policy, China Mobile should merged with Tietong. This was thought a good thing for many employees of the struggled fixed line carrier of the former China Rail ministry. A blog on Sina also criticized China Mobile by misleading subscribers. According to the blog, the 400 “free” consulting service of China Mobile is not free, China Mobile will charge users every time they use it. The free service is only for the consultant service, not for the basic calling charge. The author thinks that it is a misleading behavior, China Mobile must apologize to their users.

China Govt encourages private investment to enter basic telecom

5/13/200, China's central government today released guidelines on further encouraging private investment in a wider range of key industries including telecom industry, a move indicating the authorities are placing more importance in private investment's role in sustaining economic growth.

The State Council published the guidelines stating that the Chinese government will make efforts to create "a fair and transparent environment" for private investment and "enlarge the scope for entry of private investment". The government will encourage private investment to enter infrastructure sectors including transportation, water, oil, natural gas, power, mining and telecommunications, according to the statement. And private investment is also encouraged to flow into public utilities, social utilities, financial services, commerce and trade and defense.

In these guidelines, the section 2.9 is about telecom industry. It writes:” Government encourages private investment to take part in the telecommunication construction, encourages private sector to enters basic telecom service providing market by buying shares of state-hold service providers, supports private sector to develop value-added services, strengthen the monitoring and controlling of monopoly and unsuitable competition behavior in telecom industry, promotes fair competition and sharing of the resources. "

By the end of 2008, private enterprises had 8 percent market shares of China's telecommunications industry. The most famous private enterprise who develops basic telecom service in mainland China is Tailong telecom in Chengdu, Sichuan province. Retired from the position of high-ranked manager of Chengdu Telecom, Mr. Zhang,xianqing founded Tailong (www.tlw.cn) in year 1998. The main business of the company is to provide broadband and phone service based on their own access network. On the market, Tailong often plays a role that helps weaker service providers like Railcom or Unicom against Chengdu Telecom. Through cooperation with some real estate developers and local government, Tailong finds a niche market in several cities under the menace of telecom service providers and unclear policy environment. Tailong is one of the first FTTH service providers in mainland China. In year 2005, Tailong became the first customer of Amedia in China. Last year, they also deployed the Ethernet point to point FTTH equipments from Firstmile of Shenzhen.

Since day one, China Telecom never stops to criticize Tailong as a bad competitor. Although medias always take Tailong as an example against state-hold carriers’ monopoly, the business for Tailong is always difficult. For private company like Tailong, it seems government doesn’t like them to be in the telecom industry.

"The guidelines signal that the Chinese government is attaching greater importance to private investment as the nation has realized it will have to rely more on the private enterprises to maintain sustainable economic growth, rather than State-owned enterprises," said Li Xiaogang, director of the Foreign Investment Research Center at Shanghai Academy of Social Sciences.

But "I am more concerned about detailed measures on how to implement the guidelines. I really hope the guidelines are not merely empty words".

If you want to know if the guidelines are empty words or not, just look at Tailong's development in the coming years.

Thursday, May 13, 2010

Former China Telecom CTO criticizes China's broadband strategy

5/13/2010, The most important technology guru in China's telecom industry, former CTO and current director of science and technology committee of China Telecom, Mr. Wei leping today addressed attendees of "2010 Global broadband communication and M2M forum" on several important technology and marketing topic of China's telecom industry in Beijing.

In his speech, he even criticized that China's government doesn't have a 21 century strategy for lack of national FTTH plan.

According China Telecom's traffic data, Wei predicated that the annual growth rate for internet traffic in China Telecom's network will be 50%-80% in future 5 years, that means the traffic of 5 years later will be 10 or 20 times higher than today's traffic. Today, 70% of the internet traffic comes from P2P application, but because of China Telecom's regulation policy, 65% of these P2P traffic is UDP traffic.

For Telecom service provider's service carrying network, Wei pointed out that core router's low MTBF is a key bottle neck of today's telecom infrastructure. The long term solution for this should be the optical router, and the middle term solution is to bypass the traffic by transport layer.

For technology selection in metro network, Wei said there is still big obstacle between datacom engineers and telecom engineers. These two kinds of engineers have different "religion", one is Christian, the other is Buddhism, and they can't merge together. Just because of this, we can't say there is a main stream metro network technology; every selection should be decided case by case.

For China's access network construction, Wei said that cost of PON end to end equipment has dropped to below 100 USD according to this March's bidding process. This 100 USD is a threshold for large scale roll-out. Both ONU and OLT's price have dropped more than 25% during the past 3 years. It is the time for China Telecom to forge ahead FTTH in big cities. Considering upgrading cost, FTTH has nearly the same cost with FTTB+LAN. In year 2010, China Telecom will have 0.5-1 million FTTH subscribers. As GPON and EPON, Wei doesn't prefer any of the two technology, he only said that both them are mature technology selection now.

Wei didn't talk much about IPTV today. He said that voice service still is the most profitable service based on the standard of price per bit compared to internet and video service. Especially China's video service is very cheap. For future's large scale video service, China Telecom must continue to find way to cut cost off.

The most important thing Wei talked about today is about China's broadband strategy. Wei said he once made a speech before China's premier minister Wen jiabao. In that speech he said the most important infrastructure construction should be information highway, not Industry Park, port, highway or airport. This is the research result of a Japanese high level group. But in mainland China, no money was invested into information industry. No new policy was introduced to promote this industry. This shows that China's government still has 20 century's developing strategy, not 21 century's. He said premier Wen thanked him for that speech. That is the reason why government began to promote triple play. But according to Wei, that is not enough, compared to US or Japan's government, China's government still has a lot to do on developing information industry.

What Chinese talk in Telecom BBS: Huawei's crisis

5/13/2010, Huawei and ZTE are always the center of many leads on telecom BBS in China. According to NETEASE,Huawei faced spy gate scandal in Egypt. It was said that a Huawei employee stole NSN's bid information in Egypt and then Egypt Telecom banned to purchase all Huawei's equipments. In order to recover customer's confidence, Huawei has replaced all Egypt team. The company didn't authorize this rumor.

On Tianya, there is a lead named "The growth road for neophytes in Huawei in the first 4 years". According to the lead, the 3rd year is a key to decide if this neophyte can have future in Huawei. Some followers think the analyse in this lead is reasonable. Some said that even a Huawei's employee can't afford the high price of house of today's China.

On C114, a self-claimed Huawei employee summarized 3 big crisis of Huawei. The 1st, Many managing problems include process support, product quality, service ability, will erupt after developing speed slows down. The 2nd, internal power struggle will become more serious in the future. These struggle includes between employees and company, between new employees and old employees, between employees and managers etc. The last, the problem of pending successor of Huawei. The author pointed out that all these 3 crises will lead to out of control of management, decrease of innovation ability, lost of talented employees etc.

About ZTE, there is also a lead on Tianya, "The internationalization of ZTE,a Waterloo after spring chill”. The author also claimed himself a ZTE employee. From his analyses, ZTE faces many problems like slow market feedback, shortage of strategy, unstable employee team, possible corruption etc. The author hopes ZTE can be healthy into her 30 years.

There are also some leads about China's carriers. On Tencent, a netizen wrote: "The national working models of China Mobile are humiliating 400K her workers." The reason of the anger of this author comes from that none of all those 13 working models of China Mobile is a common worker.

On C114, a netizen criticized carriers' broadband propaganda. According to some news report, Guangdong Telecom will upgrade all residential broadband bandwidth from 2Mbps to 4Mbps from May 17, the International Telecom day. The netizens on C114 don't believe carriers' claim. some netizens said their so called 2M bandwidth is less than 1Mbps in fact.

China Govt encourages private investment to enter basic telecom

5/13/200, China's central government today released guidelines on further encouraging private investment in a wider range of key industries including telecom industry, a move indicating the authorities are placing more importance in private investment's role in sustaining economic growth.

The State Council published the guidelines stating that the Chinese government will make efforts to create "a fair and transparent environment" for private investment and "enlarge the scope for entry of private investment". The government will encourage private investment to enter infrastructure sectors including transportation, water, oil, natural gas, power, mining and telecommunications, according to the statement. And private investment is also encouraged to flow into public utilities, social utilities, financial services, commerce and trade and defense.

In these guidelines, the section 2.9 is about telecom industry. It writes:” Government encourages private investment to take part in the telecommunication construction, encourages private sector to enters basic telecom service providing market by buying shares of state-hold service providers, supports private sector to develop value-added services, strengthen the monitoring and controlling of monopoly and unsuitable competition behavior in telecom industry, promotes fair competition and sharing of the resources. "

By the end of 2008, private enterprises had 8 percent market shares of China's telecommunications industry. The most famous private enterprise who develops basic telecom service in mainland China is Tailong telecom in Chengdu, Sichuan province. Retired from the position of high-ranked manager of Chengdu Telecom, Mr. Zhang,xianqing founded Tailong (www.tlw.cn) in year 1998. The main business of the company is to provide broadband and phone service based on their own access network. On the market, Tailong often plays a role that helps weaker service providers like Railcom or Unicom against Chengdu Telecom. Through cooperation with some real estate developers and local government, Tailong finds a niche market in several cities under the menace of telecom service providers and unclear policy environment. Tailong is one of the first FTTH service providers in mainland China. In year 2005, Tailong became the first customer of Amedia in China. Last year, they also deployed the Ethernet point to point FTTH equipments from Firstmile of Shenzhen.

Since day one, China Telecom never stops to criticize Tailong as a bad competitor. Although medias always take Tailong as an example against state-hold carriers’ monopoly, the business for Tailong is always difficult. For private company like Tailong, it seems government doesn’t like them to be in the telecom industry.

"The guidelines signal that the Chinese government is attaching greater importance to private investment as the nation has realized it will have to rely more on the private enterprises to maintain sustainable economic growth, rather than State-owned enterprises," said Li Xiaogang, director of the Foreign Investment Research Center at Shanghai Academy of Social Sciences.

But "I am more concerned about detailed measures on how to implement the guidelines. I really hope the guidelines are not merely empty words".

If you want to know if the guidelines are empty words or not, just look at Tailong's development in the coming years.

Wednesday, April 14, 2010

2009 Top 10 fiber optics employers in mainland China

April 14, 2010, If you want to join a Chinese fiber optics company, whom you should choose? Here are the top 10 fiber optics employers accordong to the most recent survey by CFOL(China Fiber Optics Online),our Chinese version.

No. 1 Oclaro China score:22.2
No. 2 Finisar China score:21.4
No.3 Source Photonics score:19.4
No.4 Accelink score:18.7
No.5 JDSU China score:18.7
No.6 WTD score:18.6
No.7 Neophotonics China score:18.4
No.8 Photop (a II-VI company) score:17.9
No.9 Oplink China score:16.8
No.10 O-net score:15.1

These 10 companies are selected from nearly 60 fiber optics companies recommanded by our readers. The critieras for the selection include working strength, working enviroment, vocation arrangment, salary and benefeciary, and personal developing space. Each item is scored from 1 to 5 depending on how satisfied the interview correspondence is with the company. 25 is the full score. After 9 months survey, we collected all together 961 effective correspondence by email, by phone or by vis-a-vis interview.

As the best job service provider in China's fiberoptics industry, CFOL hopes to help job seekers get more information about possible employer, at the same time help employers to get better understanding of job seekers.

Several years ago, CFOL once made another best employer selection. At that time, Bookaham China was named the best employer in that year.

Monday, April 12, 2010

Chinese Suppliers on OFCNFOEC2010

April 12,2010, For the first time in the history of OFC, there is Chinese announcement on the show. For many years, exhibitors from mainland China, Hongkong and Taiwan have played more and more important role. Especially in this year, OFC is dedicated to a Chinese American, Dr. Charles Kao, the father of optical fiber communication.

Some Huawei USA's employees told me that Chinese announcement is because the show is sponsored by them. As one of several equipment suppliers on the show, Huawe has a big exhibiting truck on the floor and they always are the topic center of the show. Both Huawei and ZTE send many R&D and purchasing engieers to the show this time.

Compared to Huawei, China's component suppliers have far less influence on the fiber optics industry, but as a total, they still play a very important role in today's fiber optics industry.

For example, Emcore has just announced to set up a component joint-venture in Tangshan China before the show. Charles Wang of Emore told me on the show that it is good to attract Chinese investment to Emcore, they have large enthousim to make more success in China.

In recent years, more and more big US component manufactures came to China to set up manufacturing base or R&D center. A Finisar guy told me they already had 2000 staffs in Shanghai Factory. I also met someone from AOC, they have a big factory in Wuhan now.

Some US companies choosed to purcha their Chinese counterparts. Photop, who was purchased by II-VI in the end of last year, is one of them. Mr. Sun,zhaoyang of Photop said that it is their investor's will to sell the company. But good news is II-VI doesn't interfere their business. From the show, you can still see the Photop logo. Neophotonics and Source Photonic are 2 other different examples. From these two companies, it is hard for you to find any Fiberxon or Photon's heritage, they are totally US companies now.

Most of the Chinese exhibitors on the show don't have any overseas background. Some of them came to the show for the first time. They are eager to find customers in overseas market.

The competitor of ADC and Corning in China, Sun&sea group,who went to public in Shenzhen stock market last year, only has one booth. But this time, they have a representive from their Chicago office. CEO and founder of the company, Mr. Wang, wensheng told me they already have several customers in US market. To go to public is only the first step in the long march for them.

I didn't hear about the name of Chaoqian communication equipment before I came to the show. But this Zhejiang company has a Houston office and several local employees. The Chairman of the company, Mr. Xu Qing is so confident about their products. "Why Chinese product not as goos as Corning or ADC's?", he asked. Mr. Kenneth Boop is the sales manager of Chaoqian in US, he told me that he thought Chaoqian's products are competive enough in US market, Chinese need learn to adapt to US style of marketing. What he will do is help Chaoqian to develope this market.

Both Chaoqian and Sun&Sea are passive equipment manufactures. In component side, Ligent (Hisense in China) and WTD also invite local sales. Ligent is the long time GPON transceiver leader, this year, I saw them to have 1 more local sales. For WTD, it is the first time for them to have a local sales. VP of WTD, Mr. Xu, yuanzhong told me that his company must be the first class transceiver suppliers in 3 to 4 years. They have recruited many talented engineers from US. Next year's show, they will have 4 booths. In the top 10 equipment manufactures around the world, only Cisco and Samsung are not their customers. They will launch a big party this september to celerate their 30 year annuversery.

HG genuine, the same city competitor of WTD, made their show just across the WTD. Compared to WTD, they are a new company, and they don't have many customers in US. Just because of this, they are eager to develope US market. According to Mr. Zuo of HG genuine, they introduced 3Gbps and 6Gbps transceiver and QSFP AOC products in this show. They are the first in the market to introduce 6Gbps transceiver for 3G market. The latest booming market in China gave them enough resources to develope quicker in the future.

In transceiver industry, the most famous start up has always been Gigalight, but in this show, a new company, FiberTower attracts more attention. In the Buyer's Guide of OFCNFOEC2010, this Shenzhen company bought one page advertisment. No other Chinese companies did the same thing this time.

APAC and Create are two Taiwan companies I met on the show. APAC introduced DiVi and HDMI video transmission products on the show, but they still think that is a niche market. Mr. Jian from Creat, a transceiver IC company, asked me how long the market boom can continue, his company face short of manufacturing ability now.

There are more passive component suppliers from China on the show. Accelink, Photop and Onet are 3 biggest ones. Accelink announced to reach 1.2billion USD revenue on the first day of the show, they also announced to set up a US branch. It was said one thirds of their revenue come from US market, and the biggest revenue generator is their EDFA products. In this show, they demonstrated their DP-QPSK demodulator and some other high end products. Photop and Onet also showed their DP-QPSK products. Sales manager of Onet, Steven told me that he has been very busy recently. His company just increased 500 staffs in Shenzhen. In the OFC job fair, they are one of the recruiters. Their 6 booths show is the largest in all Chinese component exhibitors. But Steven said he is worried about the future. No customer in US now are fully optimitic towards the future market.

Pusen is one of the PLC manufactures who came to this show. James Wei, GM of the company is eager to find customers in US. It is not a easy task for them because the PLC market in US is not as stong as in China. But at least in this show, he can find a supplier, a Korean start up on PLC chips. All Chinese PLC manufactures depend on imported chips to package. According to Dr. Yue, chaoyu, CEO of Ligtcomm, a fiber fused coupler manufacture in Shenzhen, Chinese service providers' demand on PLC is unreasonable. There is no necessary to use PLC in less 1X8 configurations. PLC really affects his business, in order to avoid this, Lightcomm now works more on high power couplers.

Friday, April 09, 2010

China forges ahead FTTx construction

April 9,2010, Seven central government institutions jointly published "Proposals for forging ahead fiber optics broadband network construction" yesterday. These 7 institutions include ministry of industry and information technology, national development and reform commission, ministry of science and technology, ministry of finance, ministry of land and resources,ministry of housing and urban-rural development, state administration of taxation.

According to this proposal, China aims to have more than 80 million fiber optics broadband interfaces. At the same time, urban subscribers will have up to 8Mbps bandwidth, and rural subscribers will have 2Mbps bandwidth, most commercial buildings will have 100Mbps broadband connection. From now to year 2011, government will invest more than 150 billion Yuan for this, and new added broadband subscribers will reach 50 million.

There are total 6 parts in this proposal. The first is about the importance of fiber optics network. The proposal points out that there are still several problmes in the FTTx construction in today's China, including deployment difficulty inside community because of competition of carriers, shortage of broadband application, imbalance between urban and rural areas. The second part sets up the target. The 3rd part is about cooperations among governemnt institutions and standards. The 4th part aimes to encourage related enterprises to develope fiber optics broadband application, to encourage local government to provide subsidies to those related enterprises. The 6th part is to encourage related component and equipment suppliers, to ask service providers share their facilities. And the last part is about cooradination.

Compared to FCC's new broadband plan, China's plan is far less ambitous. And also there is no detailed content about how those 150 billion Yuan will be distributed. Like many ambiguous proposals from China's government, we can not see direct stimulation for the fiber optics industry from this proposal. But anyway, this is a good news. we have waited this for many years.

Recently, there are really many news about the FTTx construction in mainland China. For example:

April 1,2010, Xiemen Telecom announces they can realize 100Mbps FTTH in about 900 communities. But their current service is just 2Mbps.

April 7, 2010, Hangzhou introduces 10Mbps and 20Mbps broadband services, the charge is 258 Yuan and 388 Yuan each month. The access network will support 100Mbps bandwidth in the future.

April 9,2010, Sichuan Telecom, Sichuan Unicom and Sichuan Mobile announced to invest 8.3 billion in the comming 3 years for FTTx consturction.

More fiber optics news about China, please browse www.cordacord.com

Thursday, April 08, 2010

Ten keywords about Huawei 2009

April 8,2010, There is a popular blog article about Huawei these days in China. The title of the article is "Top 10 keywords inside Huawei in year 2009". The author Yu bin is a freelance writer in Nanjing city. In his article,he gives all these keywords their reference, either from Huawei president Ren zhengfei's speech, or from some other inner document of Huawei. All these keywords are chosed by Yu himself. But anyway from these significant Huawei style words, you can understand more about this Chinese telecom giant.

1)To call for shell fire.

In January 2009, Ren gave a speech on Huawei's customer service awarding conference. During the speech, Ren mentioned "who calls for shell fire? and who provides shell fire?" Ren used this expression to push process management reform inside Huawei. He demands to let those who can here shellfire to make the final decision.

2)To dig waterway deep, to make dam shallow

This expression is from Dujiangyan (a famous ancient Sichuan irrigation infrastructure)'s builder Mr. Li Bing. Ren used this expression in April's operation and delivery conference. To dig waterway deep, means to increase operation efficiency. To make dam shallow means to share profit with customers and suppliers.

3)Iron triangle

When carbon atoms are arranged in a variation of the face-centered cubic crystal structure (Iron triangle), it is diamond. Ren uses this expression to describe the solid relation among customer, product and solution, delivery.


Shangganling battle is one of the most famous battles in Korea war. In Huawei, Shangganling means those areas where natural condition is bad. Ren hopes his employees to learn from heroes in the Shangganling battle.

5)Resource pool
This is the pool for all back up managers of Huawei.

6) Three major campaigns

Launched by the People's Liberation Army (PLA) during the late stage of the Chinese Civil War, 3 major campaigns made the foundation of People's republic of China. In year 2009, in order to get bigger market share from China's 3G launch, Huawei also launched 3 major campaigns.

7)The Little Match Girl

Using this story from Hans Christian Andersen, Ren hopes his employees to care about those poor people.

8)To wash feet for your parent
Before 2009's Chinese new year vocation, Ren asked his employees to wash their parent's feet when they went home. This kind of behavior is considered Huawei employee's family responsibility.

This is from Huawei's carder management system. Ren asked his employee to impeach those bad managers.

10) LTC
It is a acronym of three English words "Leads to cash", the key of Huawei's management process reform.

More news about China's fiber optics industry, Please browse www.cordacord.com

Thursday, March 18, 2010

What Chinese talk in telecom BBS: March 18

About China Mobile:

"China Mobile, Tencent calls you to go back home to study", This is the title of a thread on C114. The title uses a very popular internet style language to attract readers, the content is about the strategy that China Mobile should adopt to develop mobile internet market. The author suggests China Mobile to learn from Tecent (a company holds the largest internet chatting service customers in mainland China on its QQ brand.) His three suggestions are: differencing brand, giving old customers more services, increasing the connection among different services.

A blog by China Mobile research institute on Sina wrote that China Mobile will be the only winner in the coming LTE generation. Compared to China Mobile, Unicom has less subscribers than before after separating CDMA network to China Telecom, also, Unicom's WCDMA still has problem on basic phone service. As China Telecom, they have several mobile networks like Xiaolingtong, 2G CDMA, 3G CDMA2000 at the same time. Both Unicom and Telecom face large difficulty on transferring to LTE

About Huawei:

Tianya Netizens continue discuss Huawei employee's salary. They can’t reach an answer on how much an engineer can earn in Huawei after 3 years work.

About new triple-play policy:

Hongkong public company, China Neo Telemedia Limited (a former media company) purchased Foshan Langxun (it has the same name in Chinese with Lucent) who is the builder of FOshan city's wireless network. A Sina blog wrote that triple play in China is really a sure thing from this acquisition. He also suggested not to sell the stock related with triple play.

From C114, a branch company of China mobile cooperates with local Cable TV service provider to compete with China Telecom on broadband service. China mobile is in charge of promotion, cable TV service provider is in charge of network. The two companies shares the profit from their service. is said the combined service is much cheaper than what China Telecom provides in that area.

More fiber optics news about China: www.cordacord.com

Wednesday, March 17, 2010

Raycus and fiber laser industry in China

March 17, 2010, In Shanghai Laser and opto-electronic show taken place from March 16 to March 18, Wuhan Raycus (www.raycuslaser.com) introduced several pulsed or continuous fiber laser with out power range from 10W to 100W. The company is reported to have the ability to manufacture fiber laser value of 100million RMB each year.

As the first special high power fiber laser developer and manufacturer in mainland China, Raycus was founded by US fiber laser industry veteran Dr. Yan dapeng in year 2007. Yan and Huagong Laser, a subsidiary of Wuhan public company Huagong Tech, each owned 50% share of the company but Dr. Yan has the key power to control the company. From Raycus's website, Yan and Huagong laser invested 30million RMB in the company each in year 2007. Huagong laser was reported to sell her 32% share in Raycus for 63.36 million RMB last week. They still keep 18% share of Raycus.

From 1996 to 2007, Dr. Yan worked in several US universities and companies, including University of Illinois at Chicago, Wright State University, Zybron Company, Lasersharp Company and Nufern Company. From these work, he accumulated much experience on fiber laser, semiconductor laser package. He has 3 US patents. Before 1996, he worked in Nanjing Polytech University.

Among tens of mainland China's fiber laser companies, Raycus is the most successful one. But up to day, the company didn't announce any real orders. Compared to its international competitors like IPG, SPI, JDSU, they have no resource on doped fiber or pump laser manufacturing, and it is difficult for a start up company to enter this market. For this kind of product, I don’t think Raycus can copy OEM business model from other low end components manufactures.

According to some market report, the scale of international fiber laser market is reducing. Maybe it is a good time for companies like Raycus to accumulate resource during this hard time. Raycus still has some advantages like her good relationship with China's government, also there are more and more high power passive fiber component manufactures in China these years. If Raycus can really find a niche market in China, it will have very good potential.

More fiber optics news in China, visit www.cordacord.com

What Chinese talk in telecom BBS:March 15 2010

March 15,2010, If you want to know more about what happened in China's telecom industry, you not only need to notice news releases, or reports from journalist, you also need to notice what those netizens write on some internet bulletin board and blogs. Sometimes they are a very useful and interesting information source. From today, we will try to collect some contents from telecom BBS in China to help you further understand this industry.

1) About telecom service providers
China Mobile invested Pudong Development Bank. A netizen from SOHU wrote:” This is really a strategy investment; it will influence the future of telecom industry in China. "
About Unicom's WCDMA network. There is a popular thread called "Unicom destroys WCDMA by 3 gunshots". Which 3 gunshots, the first one, wrong person on the position, the 2nd, blind adjustment, the 3rd, bad management. WCDMA has more technology advantage compared to two other 3G technologies, but it seems Unicom can’t change this technology advantage into her profit advantage.

2)About equipment suppliers

If Commerce Ministry will approve that HP purchases Huawei 3Com, it is still a question. A netizen from C114 wrote:"if the merge is approved, HP will have more than 65% market share on high-medium end datacom products. in China. It is not a good thing to the info security of China because H3C's products have been already deployed in many governments. "

Is it a good choice to go to work in Huawei from a foreign enterprise in China? A thread from Tianya gave a NO answer. The reasons include too many extra works, too high pressure, not humanity managements.

Another thread in Tianya introduces Huawei's salary structure. According to this thread, a new graduated university student can earn 800USD to 1000USD in Huawei, an usual engineer with 5 years experience can earn 2000USD, and those high ranked managers in Huawei can earn 5000 to 8000 USD. It is really the same with a US company.

A C114 thread compared the job service of Erission, Nokia Siemens and Alcatel-Lucent's Chinese website, and found Erission provides better service than other 2 competitors. Some other authors pointed out that Alcatel-lucent China adopts 51jobs.com (A Chinese job website)'s OEM services in this field, that is the reason they did worse job compared to others.

3) About fiber/cable suppliers

A SOHU blogger interviewed Mr. Zhou zhonglin, member of China's fiber and cable industry committee. In his blog, Mr. Zhou pointed out that China's government must give specail policy support on the development of fiber preform. Without this support, privet companies don't have the capability to take this burden.

4) Others
A Tencent Blogger wrote that Uincom will reduce iPhone's price. As the only provider of Apple's iPhone, China Unicom set up a price that many customers think a little high.

Thursday, March 11, 2010

The proposal of NPC Deputy Tong from Accelink

March 11,2010, At the ongoing National People's Congress (NPC) in Beijing, there is a deputy from fiber optics industry, Mr. Tong,guohua. He is the chairman of Accelink, the largest state-hold component manufacture, especially on passive components in mainland China. What is his proposal this year?

The name of his proposal is "Fully using advantages of Donghu(East Lake) national hi-tech zone in city of Wuhan, forging ahead development of strategic new industry."

Then what his real meaning behind this proposal? According to an interview with Secuitimes Newspaper, Deputy Tong suggests that government should pay more attention to developing new strategic industry, including fiber optics industry. And it is very important to make use of capital market to help development of these new industries.

"In Premier Wen's government report, he mentioned many times about transferring method of economic development, adjusting industry structure. He also mentioned six new strategic new industries, one of them is information network. As a fiber communication component supplier, this provides large space for the development of Accelink. " Tong said.

Accelink went to public in Shenzhen stock market in last august. Tong told the reporter that they are upgrading the product portfolio and marketing channel using the money from the stock market. He pointed out that the stock market is very important for companies like Accelink. Next step, they will make R&D and market development quicker and better.

Tong said, "the new triple play policy from the government brings good opportunities for Accelink. Many of their products related triple play services, and they are working on some new products special to this market. "

More fiber optics news from mainland China, please visit www.cordacord.com

Tuesday, March 09, 2010

HG Genuine revenue increases 74% in year 2009

March 9, 2010, When I visited HG Genuine (www.genuine-opto.com/english/index.jsp), a Wuhan transceiver company, in last summer, the company gave me an unexpected welcome, and their optimism towards the whole year also gave me very deep impression.

HG Genuine was founded in the bubble times. As a transceiver star-up, the company once attracted many talented engineers and sales. But with the break-up of the bubble, HG Genuine entered a long-term difficult time. It was once considered to have the best transceiver manufacturing facility in Asia, but it still could not acquire big customers. As a result, HG Genuine had to work with small sized customers who are often of bad credit on payment. In China’s fiber optics industry, many people were once pessimistic towards this company, but HG Genuine survives till now, and the company has really grown up.

According to HG Genuine’s parent company, Huagong Tech (000988 Shenzhen Stock Market)’s 2009 financial report, in the last year, HG Genuine’s revenue reached 292.5million RMB (42million USD), a 74% increase compared to year 2008. In year 2009, HG Genuine’s net profit is 33.84 million RMB, there is no data to compare in year 2008. The gross profit rate in year 2009 is 24.45%, a 0.85% decrease compared to year 2008. Now, Huawei, ZTE, Raisecom (one of the largest medium converter manufacture in China), Optowiz (a Korean transceiver company) are the 4 largest customers of HG Genuine. In year 2009, Huawei purchased 62 million transceiver form them, ZTE also purchased 58million from HG Genuine. In year 2009, Alcatel-Lucent, Nokia Siemens also became their customers.

HG Genuine owes their success in year 2009 to China’s large scale 3G construction. The company pointes out that there will be 5 new market opportunities for them in the short future, continuous 3G construction, further deployment of FTTH in China, launch of next generation PTN network, coming triple-play services by telecom and Cable TV service providers, the new M2M application. China’s telecom market will continue to increase in coming years, and international market will have a recovery. Based on all these, HG Genuine predicates that they will have a 40% CAGR in the coming 3 years, which means their revenue will come to 800 million RMB in year 2012.

More news about China fiber optics industry, Please visite www.cordacord.com

Tuesday, March 02, 2010

TD-LTE Advanced becomes Chinese 4G standard

March 2, 2010, After TD-SCDMA, Chinese hope their TD-LTE Advanced becomes another ITU-T standard. According to Mr. Wu,Hequan, the next generation wireless broadband technology project leader in China, Chinese TD-LTE advanced standard has been accepted as one of the 6 4G standard drafts of ITU-T.

In fact, TD-LTE Advanced draft was accepted by ITU-T last October in an ITU-T conference in German. Five other drafts from Japan, Korea, 3GPP, and IEEE were also accepted by ITU-T. It was predicted that ITU-T will make final selection in this October.

The same with TD-SCDMA, Chinese owns nearly all patents of TD-LTE-Advanced. The technology is based on TD-SCDMA, and was first introduced in year of 2004. After several years research work, the standard draft was generally accepted by the whole wireless communication industry in mainland China.

In this year’s Shanghai World Expo, a TD-LTE demonstration system will be build in the exhibition. Based on TD-LTE, many applications like wireless ticket will be provided. According to Wu,Hequan, China has also made arrangements on developing products of TD-LTE related chips, terminals, measurement instrument etc.

Not only Chinese suppliers show their interests on TD-LTE, Big wireless companies like Motorola also step into this field. For example, Motorola was one of the 2 equipment suppliers for the TD-LTE trial network in 2010 Shanghai Expo. Another supplier is Huawei. ZTE, Datang, Alcatel-Lucent, Erission also joined the bid for the trial network.

In year 2008, China Mobile , Verizon and Vodafone once announced to jointly develop TD-LTE technology in Barcelona. According to China Mobile, they have planed to deploy more than 100 TD-LTD base stations from the 2nd quarter of this year.

Thursday, February 25, 2010

China Mobile selects PON and fiber suppliers

February 25, 2010, China Mobile today announced the selection result on GPON/EPON suppliers. Huawei, ZTE, Shanghai Bell, Erission, Fiberhome win the GPON bid, and ZTE, Huawei, Shanghai Bell, Fiberhome become EPON suppliers of China Mobile. Erisson didn't join the EPON bid. China Mobile didn't publish the details of this selection. In China, this is the first time for large scale GPON selection by a major telecom service provider. Not like China Telecom and Unicom, China Mobile decided to choose both GPON and EPON technology, and they will prefer GPON technology.
Also in today, China Mobile announced that they will begin this year's fiber and cable product bid process. China Mobile will mainly select G.652 and G.653 fiber suppliers this time, any supplier with the right products can join the bid. According to China Mobile, there will be 2 rounds of check. First round, they will make selection based on paper material submitted by the suppliers. Second round, they will make on field check of the suppliers. Only passing these 2 rounds check, a fiber supplier can join the final bid of China Mobile.
The deadline for submitting the bid material is March 8, 2010.

Wednesday, February 24, 2010

Tianjin Unicom's FTTH network covers 58 communities

February 24, 2010, Tianjin Unicom has just announced that their FTTH network has covered 58 communities in the city which is 200KM east of Beijing.

Tianjin Unicom began to build FTTH access network last year. Up to the end of last year, they have coverd 300K subscribers. Tianjin Unicom plans to cover all citizens (10Mbps)and enterprises (100Mbps) in the city in 3 to 5 years through their FTTH network.

Now Tianjin Unicom has began to accept registration for the FTTH service in the 58 communities. They also said they will not increse the tariff for the new FTTH broadband service.

Tianjin is not the only city who aims at FTTH network in mainland China. Before them, Wuhan, Shanghai, Guangzhou, Shanxi province all have similar FTTH city projects. But Tianjin Unicom really wants to become a leader in this wave of FTTH construction in mainland China.

In order to build high quality FTTH networks, according to the website of Tianjin Unicom, they have published a "FTTH engineering standard", also they developed some new products like double side ODF, fiber splitter in the building jointly with the equipment suppliers. Now they can finish FTTH installation in just 4 days after they accept request from the customer.

Free WiFi: Chinese Version

February 24, 2010, Do you want to have free WiFi service? You don't need to depend your local government to provide this service, or you don't need to go to a Macdonald, what you need to do is just to buy a new wireless gadget,"WiFi decoder".

This gadget only costs you about 150-200 RMB. It is just like a computer mouse, with USB interface and antenna which helps it easily find all wifi networks within 2KM range. The "smartest" function of this gadget is that it can automatically decode the encryption of any WiFi network it detects.

According to a retail of this WiFi decoder in Foshan, a city near Guangzhou, the gadget is just high power wireless network card integrated decoder software. By sharing with other people's internet connection, a user of this gadget can free access the internet. The only result is that the original internet connection owner will have to endure much slower speed. In a computer store in Foshan, a retailer can easily sell this more than 10 of this gadget each day.

So who develops these products? You can not find the name of manufacture on the product. According to those retailers, all these WiFi decoders are imported from Hongkong or Shenzhen. And this product appeared on the market earlier this year.

Obviously, no matter you sell or you use this gadget, you are against the law. But in today's China, There are so many grey zones that you can get benefit without being punished. This Chinese version Free WiFi is really a special result of today's China.

SARFT stops IPTV services in 14 cities of Guangxi

February 23,2010, Although SARFT (state administration of radio, film and television) and MIIT(Ministry of Information Industry Technology)have agreed to push ahead triple play service jointly in mainland China, IPTV service for telecom service providers still face “red light” in many areas. Just now, SARFT stopped the IPTV service run by Guangxi Telecom in 14 cities of Guangxi Province, a province in southern China close to Vietnam.

On February 9, SARFT ordered that Shanghai Television Station to stop provide IPTV signal source to Guangxi and Xinjiang Telecom, also they asked Guangxi Telecom must stopped their IPTV service and said the service is against current law. SARFT forwarded their request to the Guangxi local government. 3 days later, all IPTV services run by Guangxi Telecom in 14 cities were stopped, just before this Chinese new year.

It is not the first time to happen this kind of thing. Since IPTV services were introduced by telecom service providers in mainland China in about year 2005, SARFT basically does not want to cooperate. Only in a few cities like Shanghai, Haerbin, Hangzhou, under control of the join-venture company by local Cable TV service provider and telecom service provider, IPTV is officially provided to the public.

Not only SARFT does not want to cooperate with telecom service providers, telecom service providers also do not want Cable TV service providers have telecom services like VoIP, internet service. In recent history, conflicts like cutting cable of the other side, causing damage to equipment of the other side happened many times.

Video service is still the ace of cable TV service providers today in mainland China. Compared to big scale telecom service providers, video service is the only advantage for cable TV service providers. That is the reason why they are so nerves that some telecom service providers begin to provide video service.

It is a good thing that cable TV service providers are still blessed by government today. According to the most recent triple play policy, SARFT will play a major role in the first 2 years. SARFT still has the top responsibility to check all video services around mainland China. A new national cable TV service provider is under construction. There are still 2 years time left for them.

Hengtong builds southern manufacturing base in Dongguan

February 23, 2010, Dongguan, one of the largest optical fiber and cable manufacture in mainland China, Hengtong group (600487 Shanghai Stock market) just announced they will invest 250million RMB in Songshan lake industry zone of Dongguan city, Guangdong province to build their southern manufacturing base. In the future, Hengtong will mainly develop and manufacture new special fiber, cable, copper cable in this base. The predicated revenue will reach 400 million RMB each year.

Mr. Qian,jianlin, general manager of Hengtong pointed out that they would make Songshan lake base as their southern headquater. Songshan lake base will help Hengtong develop southern market, even southeast Asia market quickly.

With 1.5billion RMB market value, Hengtong now has nearly 18% market share in China's fiber and cable market. Their new fiber preform product will also help them gain more market share in the coming years.

Wednesday, February 10, 2010

China closes 136,000 websites

February 10,2009, According to Xinhua news agency, since last december, China 's government has closed 136,000 websites under the flag of clamping down internet pornography. MIIT(Ministry of Information Industry Technology)and its sub-branchs in each province play a key role in this clamping down.

According to government's data, up to now, they have checked nearly 1.8 million websites whose server locate inside mainland China, closed 136K unregistered websites and 126 accesee service provider. At same time, CNNIC (China Internet Information center) and 55 internet domain providers checked 13.5 million doman name, nearly 80% of all domain names in mainland China, stopped 12,000 domain name transfering.

China's government says that what they do is according to China's law, and it is helpful to clean the internet environment in China. The action is welcomed by the public since its start, but the public didn't notice the negtive effect of the action, or they daren't not critisized government.

Then what is the negative effect. That is there is no space for personal websites in mainland China in the future, that is it will be more difficult if you want to public your own opinion on internet, that is operating small websites will be more difficult.

Don't think that 136000 websites who are closed by government are all pornographic websites. Many of them are closed just because they didn't make the registration, or their original registraion deleted by government(They only allow enterprises to make registraion, not person). Also if a website want to have BBS or blog services, you have to satisfy many stricted requirements set up by the government.

Government's clamping down is really a disaster for many personal website owners. Somebody may want to move their website server to overseas provider, but considering the "Internet Great Wall" of China, that is not a good idea. It is very possible that their website can not be visited in China or become very unstable. .

No one doubts China's government has a good intention to do this clamping, but many times, a good intention also can lead to bad result. You cannot say, China's government is smart this time. To have all internet websites controlled by the government, maybe it is also another aime of this clamping down.

Tuesday, February 09, 2010

Emerging Chinese national cable TV service provider

February 9, 2010, For many years, Chinese telecom service providers have been lucky for not needing to compete with cable TV service providers. But their fortune may comes to an end in year 2010. A new national CATV service provider in mainland China is reported to be organized by the government.

From Xinhua news agency, high-ranked officers from MIITMinstry of Information Industry Technologyand SARFTState administration of radio and film, televisionhave announced that government will adopt kinds of supporting policy to organize a new national CATV service provider in mainland China. This new CATV service provider will represent whole Cable TV industry to provide triple play service. Early than this announcement, it is rumored that China’s government will invest 20 billion RMB to organize the new CATV service provider.

Several weeks ago, China’s government announced the triple play policy officially. According to this policy, CATV services providers can provide telecom service, and telecom service providers can provide TV services in the future. Because China’s telecom service providers have much more resources than CATV service providers, there are 3 years protecting period for CATV service providers. In the first 3 years, Both Cable TV service providers and Telecom service providers can make some trial networks, but CATV providers can have more support from the government, such as they can provide VoIP service which only telecom service providers can do before.

In mainland China, Cable TV service are provided mainly by local companies. Each city, even each town has their own cable TV companies. Not like telecom service providers, there is not a vertical managing system them although they are managed by SARFT generally. But it is local government not SARFT who has stronger influence on these local cable TV service providers. Just because this, these small cable TV services have no advantages to compete with those national telecom service providers like China Telecom whose revenue is much higher than them.

During the past 20 years, SARFT has never given up to organize a national cable TV service provider. And they really organize several provincial cable TV service providers, such as Beijing Gehua Cable TV, Hunan Cable TV. They even build a national transmission network. This time, with the great support from central government, SARFT may finally have a national cable TV service provider. But without experience, without talented engineers, can they really compete with telecom service providers?

Wednesday, February 03, 2010

WTD boasts vertical integration advantage on PON transceiver

February 4, 2010 Wuhan, As the largest state-hold transceiver company, Wuhan Telecom Device (WTD)company also has the longest history in China's fiber optics industry. The fast growing company just published their first white paper to introduce their opinion on transceiver technology and their advantage on transceiver.

The first question, How WTD looks at GPON and EPON technology? With full line of EPON and GPON tranceivers, WTD believes that GPON and EPON will live together for a long period. Compared to GPON's technology advantage EPON does better job on product maturity and commercialization. GPON can not replace EPON in a short time.

The second question, what is the real advantage for WTD on PON transceiver? The answer is WTD is the sole Chinese supplier that can manufacture DFB-LD and APD chip themselves. WTD now can produce these chips 18K every day, and their manufacturing ability is still expanding. Few competitors have the supplying ability like WTD in China

The 3rd question, What is the latest PON product for WTD? During last month's FOE show in Tokyo Japan, WTD demonstrated their 10G EPON Diplexer SFP+ transceiver. Many customers show interest on this product.

After nearly 30 years development, WTD shows stronger ambition on international market. They just opened Tokyo office last month, and next month they will come to San Diego again to attend OFC/NFOEC. Today's WTD is more active, with more energy, and more ambitious than many of their competitors.

More fiber optic news about China, Please visit www.cordacord.com

Tuesday, February 02, 2010

China Telecom aims at 20Mbps bandwidth per home in 3 to 5 years

February 2 2010, It is just reported that China Telecom will finish fiber access network upgrade in major cities in 3 to 5 years to bring 20Mbps bandwidth to all subscribers in big cities.

This fiber access network will be mainly a FTTB network, only in some developed areas, FTTH will become available. China Telecom will guarantee fiber connected to all commercial buildings and new residential buildings in major cities. For residential subscribers, their bandwidth will be 8Mbps to 20MbpsIn rural areas, China Telecom will connect fiber to each village in eastern China. In western China, 80% villages will have fiber connection. Based on this connection, China Telecom will provide 4Mbps bandwidth.

Compared to today’s popular 1M or 2M bandwidth service, the new 20Mbps bandwidth service is really a big leap. This bandwidth will provide great flexibility for China Telecom’s new services including IPTV. China’s government just turned on green light for triple play. China Telecom’s new 20Mbps plan should aim at this policy change.

Before today’s report, China Telecom already made some FTTx trial networks, especially in Shanghai and Wuhan. Last year, Shanghai Telecom announced to invest 6billion RMB to build fiber access network. Their aim is to realize 100M to each home, 1000M to each building. In year 2011, Shanghai will have 3million homes connected to 100Mbps bandwidth. For China’s optical vally, Wuhan also announced their FTTx project. Late August, Wuhan Telecom became the first service provider to provide 20Mbps residential bandwidth service.

Not only, China Telecom, China Unicom and China Mobile also have their ambitious FTTx plan. For fiber optics industry, it is really exciting news.

More fiber optics news about China, Please visit www.cordacord.com

Sunday, January 03, 2010

Top fiber optics stories of 2009 in China

1/3/2010, Most of China\"s fiber optics companies had a very good year 2009. I cannot only pick 10 stories happened last year,you should know more what happened in China in this industry. 1) 3 fiber optics companies went public, including Accelink, Sun&sea and Keybridge. 2) Dr. Charles Gao won Noble Physical prize though he is not a Chinese citizen. 3) Huawei became No. 1 optical network equipment supplier in the world. 4) China Telecom and Unicom made bid on PLC coupler, Broadex, Aofiber etc became the winners. 5) OneChip from Canada used CIOE to be their product publishing platform. 6) More proviences announced to build FTTx city. 7) Manufacturing capacity became the key issue faced by Chinese fiber optics suppliers. 8) Huawei made 10G GPON test with Verizon, ZTE won Italy GPON contract. 9) JDSU Shenzhen\"s worker went on strike against factory sold. 10) Neophotonics China was rumored to go IPO next year. 11) ORTE became the winner in public test on coupler products by Dalian Science&Technology University. 12) A Beijing company annonced to build 3 POF manufacturing base in North China. 13) More passive companies introduce their polirization products. 14) Zhongtian, Tongguang makes progress on undersea cable technology. Huawei found undersea cable business. 15)Huawei, ZTE, Fiberhome, Shanghai Bell won the PTN bid by China Mobile. 16) China Telecom and ZTE jointly hold 10G EPON standard international conference. More EPON ONU manufaqctures appeared. 17) China Science Technology University in Anhui build world\"s first quantum communication network. 18) YOFC build their Tianjin cable manufacturing base through merge with Tianjin Xinmao. 19) Baocheng company in Shanxi build their first FOG product line. 20) China Telecom in Taiwan has more than 1.51million FTTH subscribers.

If you want to know more about fiber optics industry in China, Please browse http://www.cordacord.com/