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:

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 ( 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

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 (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

Tuesday, March 09, 2010

HG Genuine revenue increases 74% in year 2009

March 9, 2010, When I visited HG Genuine (, 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

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.