What's up with communication industry in China?

Accelink merges with WTD

2011-07-04T15:14:00.000-07:00

July 4, 2011, Wuhan, Two of the biggest fiber optics component companies in mainland China announced the long expected merge today. The merge of Accelink (Shenzhen stock market, 002281) and WTD will generate the No. 1 component supplier in China, with revenue more than 2 billion RMB (350 million USD). A security company first published this news last Friday, CFOL verified the news with both WTD and Accelink today.
For the whole report, see
http://www.cordacord.com/news/content/2/201107/20110704181310.html

Interview: Dolite aims brand image increasing

2010-07-27T14:50:00.000-07:00

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

2010-07-27T14:48:00.002-07:00

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

2010-07-27T14:48:00.001-07:00

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

2010-07-27T14:46:00.000-07:00

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.

FTTH rollout brings high request on ODN

2010-06-11T15:11:00.001-07:00

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?

2010-06-11T15:10:00.002-07:00

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

2010-06-11T15:10:00.001-07:00

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)

China passed crappy triple play policy

2010-06-07T20:47:00.001-07:00

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?

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

2010-05-27T12:03:00.001-07:00

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

2010-05-27T12:02:00.002-07:00

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.

POF is not TD-SCDMA

2010-05-27T12:02:00.001-07:00

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

2010-05-27T12:01:00.001-07:00

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

2010-05-27T12:00:00.000-07:00

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.

Former China Telecom CTO criticizes China's broadband strategy

2010-05-13T20:26:00.002-07:00

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

2010-05-13T20:26:00.001-07:00

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

2010-05-13T20:25:00.001-07:00

2009 Top 10 fiber optics employers in mainland China

2010-04-14T15:53:00.001-07:00

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.

Chinese Suppliers on OFCNFOEC2010

2010-04-12T17:14:00.001-07:00

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.

China forges ahead FTTx construction

2010-04-09T14:43:00.000-07:00

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

Ten keywords about Huawei 2009

2010-04-08T15:51:00.000-07:00

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.

4)Shangganling

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.

9)Impeachment
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

What Chinese talk in telecom BBS: March 18

2010-03-18T10:56:00.001-07:00

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

Raycus and fiber laser industry in China

2010-03-17T11:20:00.001-07:00

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

2010-03-17T11:19:00.000-07:00

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.

The proposal of NPC Deputy Tong from Accelink

2010-03-11T09:42:00.000-08:00

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

HG Genuine revenue increases 74% in year 2009

2010-03-09T10:42:00.000-08:00

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

TD-LTE Advanced becomes Chinese 4G standard

2010-03-02T12:10:00.000-08:00

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.

China Mobile selects PON and fiber suppliers

2010-02-25T09:23:00.000-08:00

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.

Tianjin Unicom's FTTH network covers 58 communities

2010-02-24T09:23:00.001-08:00

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

2010-02-24T09:22:00.000-08:00

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

2010-02-24T09:21:00.000-08:00

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.

China closes 136，000 websites

2010-02-10T20:44:00.001-08:00

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.

Emerging Chinese national cable TV service provider

2010-02-09T20:41:00.000-08:00

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 MIIT（Minstry of Information Industry Technology）and SARFT（State administration of radio and film, television）have 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?

WTD boasts vertical integration advantage on PON transceiver

2010-02-03T21:26:00.000-08:00

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

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

2010-02-02T20:45:00.000-08:00

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 20Mbps。In 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

After Charles Kao won Noble Prize in Physics

2009-10-15T19:27:00.000-07:00

10/15/2009, About one week ago, Chinese American, Dr. Charles Kao was awarded half of the 2009 Noble Prize in Physics for his pioneer work on fiber optics communication. This award pulls at many Chinese’s heart strings. Some people wonder when Noble prize in Science can award to a Chinese citizen. Some people are happy that fiber optics gets recognition from Noble Prize committee.
Charles Kao is not the first Chinese American to get the Noble Prize, the crown jewel of the science research. As before, the award of Dr. Kao excites so many Chinese in mainland China, Hongkong and Taiwan. Although he had lived and worked in Hongkong for more than 10 years, he is the fellow of Central Academy of Taiwan and Chinese Science Academy of maindland China, he is still a citizen of the U.S.. His university education was from U.K. and the work leading to the award was finished in UK also. So many journalists, bloggers, criticize that it is education system in China that obstructs Chinese scientists from creative work. The research environment in China is not suitable for creative scientists. Some others have different ideas. One blogger wrote that Chinese shouldn’t take Noble Prize so important, and Chinese don’t need the recognition from foreigners. Another Chinese American Noble Prize winner, Dr. Chen Ning Yang insisted that Chinese citizen would win the award in 20 years. It is interesting to compare this situation in China with Canada. This time, there are two Mcgill graduates who won this year’s Noble Prize. Both of them worked in U.S after their graduation. Canadian media doesn’t discuss these scientists are Canadians or Americans, otherwise they are happy on their achievements, and they feel sorry that Canada can not attract them to work in their own country. Why Canadians and Chinese have different feedback on the similar situation?
Dr.Kao’s award has another very positive affection on all fiber optics engineers, researchers. Since the first fiber cable was manufactured according to Dr. Kao’s theory in early 1970’s, this technology has made very big advancement. The advancement is so big that it is very hard for today’s researchers and engineers to make new improvements. Investments from both public and private side on this technology are dwindling. Wireless technology gets more and more attention from the government, form the investors. A friend of mine, who is a professor on fiber optics technology told me that he was so happy to see Dr. Kao’s award. From this award, fiber optics will attract more attention than before.
When Dr. Kao was still the president of the Chinese University of Hongkong, I was an exchange student in E.E department which Dr. Kao founded in 1970. I once had an opportunity to listen to his speech. I had forgotten what he talked about that day, I only remembered that he was talking in Mandarin with a typical Shanghai accent. In an environment where everyone uses Cantonese, Dr. Kao impressed me very deeply. It is my honor that I once worked in the same university with him, and I became a fiber optics engineer after my graduation.

Rumor: JDSU will sell its Shenzhen factory to Fabrient

2008-12-14T16:38:00.000-08:00

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

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

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

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

2008-11-26T19:44:00.000-08:00

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

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

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

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

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

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

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

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

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

Browave provides competitive EDFA OEM/ODM Service

2008-11-26T19:05:00.000-08:00

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

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

Wu hequan:Broband development is government's duty

2008-10-22T07:37:00.000-07:00

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

CIOE2008: Pictures

2008-10-19T12:32:00.000-07:00

CIOE2008: WTD

2008-10-19T11:54:00.000-07:00

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

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

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

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

CIOE2008: Hisense Broadband

2008-10-19T11:29:00.000-07:00

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

Hisense Broadband：Business goes faster

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

CIOE2008: Fibercom

2008-10-19T11:22:00.000-07:00

Fibercom: makes its debut on CIOE2008

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

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

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

CIOE2008: Wuxi ZTE

2008-10-19T11:16:00.000-07:00

WXZTE：developing steadily

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

CIOE2008: OptiGlogy

2008-10-19T11:01:00.002-07:00

OptiGlory：rollout BusPON as the promotion of PON

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

CIOE2008: PLC

2008-10-19T11:01:00.001-07:00

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

CIOE2008: Another Winter and Broadtech

2008-10-19T11:00:00.000-07:00

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

CIOE2008: New Products

2008-10-19T10:59:00.000-07:00

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

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

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

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

10G SFP+ Transiver from Suzhou Innolight:

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

FTTH panel and fiber management system from Ephotics.

CIOE2008: New Images

2008-10-19T10:58:00.000-07:00

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

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

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

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

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

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

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

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

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

HiOptel: Their new slogan, mainstream supplier of optical components

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

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

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

CIOE2008：New companies

2008-10-19T10:57:00.000-07:00

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

CIOE2008: The first day

2008-10-19T10:56:00.000-07:00

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

CIOE2008：Expecting

2008-10-19T10:54:00.000-07:00

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

The Base for Huawei’s 100Gbps products ?

2008-10-02T06:48:00.000-07:00

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

Shanghai IPTV subscribers will reach 800K

2008-08-28T18:17:00.000-07:00

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

Rumors about China Telecom CDMA bid

2008-08-18T17:43:00.000-07:00

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

Who leads 40Gbps Market in China?

2008-08-15T15:16:00.000-07:00

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

TD Experience on Beijing Olympics

2008-08-11T18:28:00.000-07:00

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

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

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

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

Accelink goes to IPO

2008-08-05T18:54:00.000-07:00

http://www.csrc.gov.cn/n575458/n776436/n804920/n2466277/10731236.html

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

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

CMBB Mobile TV will support Beijing Olympics

2008-07-28T20:48:00.000-07:00

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

Fiberhome announces FTTx milestone

2008-07-22T20:25:00.000-07:00

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

The Wireless broadband service for Beijing Olympics

2008-07-09T17:26:00.000-07:00

7/9/2008, There will be free wireless broadband network services for travelers in Beijing before the end of the Beijing Olympic games. You can go to this website http://www.bj.wicity.cn/1/en/index.php to find the account or password, or I can just list them for you here,
　Account1：wxbj1 PW：wicity　Account2：wxbj2 PW：wicity　Account3：wxbj3 PW：wicity
Today, you can find such a news from:http://asia.tmcnet.com/news/2008/07/09/3537025.htm
the title of the news is "ChinaTel Group Successfully Launches Broadband Wireless Internet Access Network in Beijing for CECT-Chinacomm Communications Ltd."according to the news, The wireless network is live and provides Internet access services across approximately100 square kilometers of metropolitan Beijing, including the 2nd Ring, 3rd Ring, CBD Commercial Zone, Financial District, Zhong-Guan Village, Wangjing Economy-Technology Development Zone, Xuanwuchun Village and Yizhuang,
It is not the first time to know there will be wireless broadband service for BJ olympics, but it is first time for me to know about the company of Chinatel and Trussnet.
In this March, a local media has reported about the Beijing Wireless city project. The report basicly introduced the same content as that in today's news release.
About CECT-Chinacom, it was once very famous for its fixed wireless 3.5GHz broadband project, but because the network and service cann't compete with those big carriers, the CECT-Chinacom nealy disappeared after quite a bit of fanfare . Bbecause of its government background, it still finds its way to live through. Today, we even found it has more overseas background. I only hope the new CECT-Chinacom and the Chinatel behind them really has the ambition and capability to find opporunity for WiMAX in China.

China aims at MNP

2008-07-08T14:56:00.000-07:00

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

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

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

Why Pakistan forbide Chinese cellphone?

2008-07-07T18:48:00.000-07:00

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

iPhone:Still no deal with China mobile

2008-07-06T19:18:00.000-07:00

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

China Telecom introduces its IPTV progresses

2008-07-03T17:53:00.000-07:00

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

Let more optics replace copper

2008-05-05T18:54:00.000-07:00

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

China Mobile builds wireless community in Shanghai

2008-04-17T14:23:00.001-07:00

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

ZTE :Wimax will become new backbone of revenue

2008-04-15T15:19:00.000-07:00

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

Xiaochu Wang talks future

2008-04-08T15:35:00.000-07:00

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

230Gbps bandwidth connects Netcom with the world

2008-04-01T19:27:00.000-07:00

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

New minister of Industry and Information Ministry

2008-03-17T14:57:00.000-07:00

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

The price of optical cable and fiber reduces 40%

2008-03-14T15:33:00.000-07:00

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

Bye bye MII

2008-03-11T15:01:00.001-07:00

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

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

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

one more Huawei guy makes suscide

2008-03-06T20:19:00.000-08:00

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

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

Another Huawei employee made suscide

2008-02-26T08:05:00.000-08:00

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

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

Feedback to the comments

2008-02-21T21:12:00.000-08:00

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

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

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

China will invest 70billion on 4G research

2008-02-19T18:53:00.000-08:00

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

China Telecom uses PON to rebuild damaged network

2008-02-18T13:58:00.001-08:00

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

What will happen in this March?

2008-02-14T17:30:00.000-08:00

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

Huawei organizes optical network R&D team in Wuhan

2008-02-14T14:44:00.001-08:00

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

How much can a Huwei employee earn?

2008-02-13T15:48:00.000-08:00

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

Yinan Li left Huawei again

2007-12-26T15:40:00.000-08:00

12/26/2007, According to local media, Chief scientist of Huawei, Mr. Li, yinan left Huawei for personal reasons this month. It was said Li would set up a new telecom testing instrument company. Mr. Huang,yaoxu followed Li‘s departure also. It is second time to leave Huawei for both Mr. Li and Mr. Huang. As founding employees of Huawei, Li once was the chief technology officer and xecutive VP of Huawei, last time he left Huawei, he built Harbour network, a switch/router company. Huawei purchased Harbour last year. Mr. Huang once was the president of optical department of Huawei. Last time he left Huawei, he built a transmission equipment company and later merged with harbour. He returned to Huawei after Huawei purchased Harbour.

Guangdong Telecom invests more on IPTV

2007-12-26T15:36:00.000-08:00

12/26/2007, According to local media, Guangdong Telecom will invest 5billion RMB more on IPTV network. The result of bidding will be opened by the end of this month. 2 years ago, Guangdong Telecom made the first purchase on IPTV equipments. Huawei won the order for Guangzhou and Shenzhen, 60K subscribers. ZTE won the order for Dongguan and Foshan, total 24K subscribers. UTStarcom won the order for Zhuhai, SHantou and ZHongshan, total 16K subscribers. From this upgrade, Guangdong telecom hope to generate more revenue from IPTV service.

In China, IPTV deployment still face the block of policy. Only a few provinces have IPTV services. Because of cooperation with local broadcaster, Shanghai Telecom now has the largest IPTV subscribers. According to the recent statistics, it now already has 220K subscribers. The total broadband subscribers in Shanghai is 3million. In Shanghai, 85% of residents can have 2M access rate from Shanghai Telecom.

China Telecom loses subscribers

2007-12-20T18:28:00.001-08:00

12/20/2007, According to China Telecom, it has continuely losed subscibers. During the first 11 months of this year, China Telecom has accumulated 2.74 million subsribers loss. This is the first time China Telecom shows all year subscribers net loss since year. In opposition, China Mobile has a 6.51million net gain on subscribers during the first 11 months.
China Telecom pointed out the reasons for the loss of subscribers include big competition, especially from mobile service providers' one way calling package.

ZTE invests in energy industry

2007-12-04T20:34:00.000-08:00

12/5/2007, ZTE today announced to invest 1.29billion RMB in a new energy company with its shareholders or sister companies including Zhongxianwei, Zhongxing development, Zhongxing international investment, also Mr. Hou, weigui, chairman of the board of ZTE.
ZTE said that it would still focus on communication industry. To join this investment is just to optimaize the investment structure, to increase return of investment, to look for new profit increasing source.
According to local media, besides energy and communication industry, ZTE has made investment in real estate and environment industry. ZTE enviroment company is looking forward to going public within 3 years.

Former Minister critisized telecom industry

2007-12-04T20:11:00.000-08:00

12/5/2007, Mr. Zhu, gaofeng is the former vice minister of post and telecommunication ministry in China. In a forum hold in Beijing yesterday, He owed the big problem to Chinese carriers.

According to him, there is misunderstanding between usual customers and carriers. Customers have many negetive opnions towards the carriers about telecom product services and prices. but no carriers can give customers a clear explanation.

He also critisized the payment-delay problem. He said:"before, telecom industry is very weak, but today it is such a big industry, it makes big cash flow everyday. it is hard to believe carriers don't have money to make payment. "he also said, "Carriers always choose the lowest price when they make purchase, it makes very bad competitions among equipment suplliers."

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

2007-11-29T17:47:00.000-08:00

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

Datang group began reorganization

2007-11-27T19:39:00.000-08:00

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

Mr. Ao li talked about GPON test

2007-11-12T14:46:00.001-08:00

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

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

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

ZTE new base aimes at WiMAX

2007-11-05T13:01:00.000-08:00

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

Huawei has no interest on brand

2007-11-04T14:41:00.000-08:00

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

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

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

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

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

AOE: OFC in China

2007-10-31T19:05:00.000-07:00

10/31/2007, Have you seen this before? this is not in USA, this is in Shanghai, in AOE, the Chinese version OFC/NFOEC. OSA organized 12 companies to attend this show.

We cann't say this show very successful. I can say it is more successful than last year for visiters, and it is successful for organizers. But for exhibitors, I don't know, especially for those foreign exhibitors who pay a good price for the show. Many their counterparts in China got the booth nearly free.

I don't want to critize the organizer, they have done a good job, it is not a easy thing to make this kind of optical communication show in China. Chinese companies often don't want to waste their money on advertisment or kinds of show, except they cann't find other direct way to find customers. You can think, such kind of show cann't help them find customers.

The organzier told us they would continue this show next year, I hope thye will be more successful in 2008.

Huawei 's HR revolution

2007-10-30T19:12:00.000-07:00

10/30/2007, Huawei just announced a plan aiming employees with more than 8 years working experience in the company. Huawei said those employees volunteerly resigned from today's position, and then they will contend for new positons in Huawei. if they cann't get a new position, they will have to leave Huawei. Huawei will give them a good compensation. It is said that 7000-10000 employees will be affected by this plan, and Huawei will invest more thant1billion RMB on this.
Local media pointed out that Huawei is avoidting the new employee contract law which will be in effect from Jan. 1 2008. The law requires all employees who have more than 10 years experience in the same company will have a not-fixed long term contract automatically. Many entrepreneurs in China is worrying this law will increase their layoff cost, and they are are looking for ways to avoid this. Huawei is the first big company who makes adjustment towards this law.
Things maybe not such easy. from my point of view, Huawei is trying to unload its historical load. Because of its special bonus policy in the first 10 years or 15 years, Huawei's old employees have many special benefits, their bonus is much bigger than their salary revenue each year. But those later come-ins donot have this advantages. In Huawei, it seems there is two classes. Huawei's leader maybe think this is a problem they have to solve, otherwise, it will have big influence on Huawei employee's morales.
You may never see this happened in other company, But this is Huawei, it is not the first time they do this.

LGI enters Chinese broadband service providing market

2007-10-21T16:34:00.001-07:00

10/22/2007, LGI(www.lgi.com/index.html), a delaware based world wide CATV carrier will become the first overseas company who provide basic network service in Chinese Telecom market. Last friday, Beijing Gehua CATV network (www.bgctv.com.cn), a local Chinese CATV service provider announced that they would set up a join-ventured company with LGI and another venture company PRC Venture Partners LLC. Gehua will hold 51% share of the new company. Gehua said the new company would invest at least 200 million RMB to build broadband infrastructure. With the help of LGI, the join-ventured company will be a great challenge to Beijing Netcom.

TD-SCDMA is crying, after Wimax becomes 3G standard

2007-10-21T15:04:00.000-07:00

10/21/2007, WiMAX has become offical ITU 3G standard. As an TDD technology, It will compete with another TDD 3G standard, TD-SCDMA from China, directly. Now you can see many feedbacks from Chinese media on this news:
1) It is a big slap to Chinese goverment who supports TD standard so many years.
2) TD will have not opportunity to go abroad from today.
3) Those state-hold TD equipments developers are too bureaucratic, that is the reason why TD is still not mature enough
4) The future Chinese 3G licences will be affected deeply by this
5) Chinese should not learn Japan, on standard problem, we should not close the door. ( Japanese have many standards that are only used in Japan )
6) Forget TD, it is only a scam that helps somebody to gain more benefits in China. Because of TD, Datang telecom got hugh investments from government, Because of this concept, many public companies attracted a lot of money from stock market. But, is it a real good concept?

Asia's No. 1 telecom show?

2007-10-18T18:45:00.000-07:00

10/18/2007, next tuesday, the biggest communication exhibition in this year will begin in Beijing. Organizer claims the show is a Olympic telecom show, a TD-SCDMA show. Nearly all the telecom/IT medias in China has prepared to show themselfs better in this show.
But not everything is in harmony. Some reporters are complaining they cannot find anything new in this coming show. They cannot find big players appeared in last year's ITU Hongkong show. Even equipments suppliers in China are not very active toward this show. By today, only Nortel China announced their plan in this show.
What we can really find from this show?

Shanghai says yes on WiMAX

2007-09-19T21:00:00.000-07:00

9/17/2007, Jiading, a satalite city of Shanghai, today confirmed they will use WiMAX and WiFi mesh technoology to build a metro wireless monitoring system. They will use 802.16d technology to provide video transmission bandwidth from 512Kbps to 3Mbps. In mainland China, Beijing, Tianjin, Wuhan, Hangzhou, Shenzhen also have similiar Wireless city plan like Jiading.

China Telecom selects EPON

2007-09-19T20:41:00.000-07:00

9/19/2007, In August, China Telecom finished the first phase 40K line EPON equipment purchasing from ZTE of Shenzhen, Fiberhome and Changguang of Wuhan, Greenwell and Ocean Broadband of Beijing. After nearly 2 years test, China Telecom thinks that EPON technology is mature enough, althgh they will continue follow the development of GPON technology. China Telecom also published their EPON technology request last month.
According to the EPON equipments provider selected by China telecom, in year 2008, China Telecom maybe have 200k line request on EPON equipments.

What's up with communication industry in China?

Accelink merges with WTD

Interview: Dolite aims brand image increasing

Huawei's Ren appears on TV

Dimension:a fiber interferometer manufacturer's ideal

Anti dumping, Huawei in Russia

FTTH rollout brings high request on ODN

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

It is easy to launch a optical communication company in Wuhan

China passed crappy triple play policy

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

China Mobile opens tender for PTN equipments

POF is not TD-SCDMA

What Chinese talk in Telecom BBS : Inside exchange of ZTE

China Govt encourages private investment to enter basic telecom

Former China Telecom CTO criticizes China's broadband strategy

What Chinese talk in Telecom BBS: Huawei's crisis

China Govt encourages private investment to enter basic telecom

2009 Top 10 fiber optics employers in mainland China

Chinese Suppliers on OFCNFOEC2010

China forges ahead FTTx construction

Ten keywords about Huawei 2009

What Chinese talk in telecom BBS: March 18

Raycus and fiber laser industry in China

What Chinese talk in telecom BBS:March 15 2010

The proposal of NPC Deputy Tong from Accelink

HG Genuine revenue increases 74% in year 2009

TD-LTE Advanced becomes Chinese 4G standard

China Mobile selects PON and fiber suppliers

Tianjin Unicom's FTTH network covers 58 communities

Free WiFi: Chinese Version

SARFT stops IPTV services in 14 cities of Guangxi

China closes 136，000 websites

Emerging Chinese national cable TV service provider

WTD boasts vertical integration advantage on PON transceiver

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

Top fiber optics stories of 2009 in China

After Charles Kao won Noble Prize in Physics

Rumor: JDSU will sell its Shenzhen factory to Fabrient

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

Browave provides competitive EDFA OEM/ODM Service

Wu hequan:Broband development is government's duty

CIOE2008: Pictures

CIOE2008: WTD

CIOE2008: Hisense Broadband

CIOE2008: Fibercom

CIOE2008: Wuxi ZTE

CIOE2008: OptiGlogy

CIOE2008: PLC

CIOE2008: Another Winter and Broadtech

CIOE2008: New Products

CIOE2008: New Images

CIOE2008：New companies

CIOE2008: The first day

CIOE2008：Expecting

The Base for Huawei’s 100Gbps products ?

Shanghai IPTV subscribers will reach 800K

Rumors about China Telecom CDMA bid

Who leads 40Gbps Market in China?

TD Experience on Beijing Olympics

Accelink goes to IPO

CMBB Mobile TV will support Beijing Olympics

Fiberhome announces FTTx milestone

The Wireless broadband service for Beijing Olympics

China aims at MNP

Why Pakistan forbide Chinese cellphone?

iPhone:Still no deal with China mobile

China Telecom introduces its IPTV progresses

Let more optics replace copper

China Mobile builds wireless community in Shanghai

ZTE :Wimax will become new backbone of revenue

Xiaochu Wang talks future

230Gbps bandwidth connects Netcom with the world

New minister of Industry and Information Ministry

The price of optical cable and fiber reduces 40%

Bye bye MII

one more Huawei guy makes suscide

Another Huawei employee made suscide

Feedback to the comments

China will invest 70billion on 4G research