Yinan Li left Huawei again

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

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

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

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

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

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

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

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

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

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

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

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

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

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?

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

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

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.

Former Unicom CTO: DSL is a wrong direction for China

8/28/2007, Mr. Liu, yunjie， former CTO , now the technology consultant of China Unicom, said in a forum in Beijing several days ago :"China service providers choose DSL, other than FTTH, maybe that was not a good choice. FTTH can provide much higher bandwidht than DSL, China should learn from Japan more. "
we should not expect much form liu's words. Because he has retired, he is not responsible for the network plan of China Unicom. What he said just reflects his thinking.
Although we can not expect much from his word, but considering his role in Chinese telecom industry, Liu's words still is very helpful to the development of FTTH in China. More people will understand the importance of FTTH from him.

China Telecom purchases EPON equipments for country application

8/24/2007, From local media, China Telecom has just finished their first EPON equipments purchase in scale. In 3 years, these equipments will be deplyed in some provinces of China. China Telecom is also considering to use EPON equipments to provide broadband services in country area.
Before this purchase, China Telecom has made several test on EPON technology. Many EPON equipments suppliers provided their equipments to China Telecom for the test. China Telecom has also build several trial network in Guangdong, Shanghai and Beijing area.

ETD Amphenol

8/20/2007， ETD, a Shenzhen fiber connector company founded in 1994, joined the Amphenol group on Dec.18, 2006 to be a branch company of Amphenol, which named ETD Amphenol Fiber Optic Technology (Shenzhen) Co.,Ltd.

I knew both the companies for a long time. Both companies always denied my interview, and they don't like to contact by medias. They have their own business, now they joined together.

ETD has a strong Taiwan background, its female boss, Ms. Li, xiuying is one of the CEOs I never meet in fiber optics industry in China. Will she be again the boss of the new company?