Monday, July 04, 2011

Accelink merges with WTD

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

Tuesday, July 27, 2010

Interview: Dolite aims brand image increasing

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

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

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

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

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

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

Huawei's Ren appears on TV

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

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

Dimension:a fiber interferometer manufacturer's ideal

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

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

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

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

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

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

Anti dumping, Huawei in Russia

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

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

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

Friday, June 11, 2010

FTTH rollout brings high request on ODN

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It is easy to launch a optical communication company in Wuhan

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

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

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

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

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

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

Monday, June 07, 2010

China passed crappy triple play policy

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

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

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

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

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

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

Thursday, May 27, 2010

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

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

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

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

China Mobile opens tender for PTN equipments

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

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

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

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

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

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

POF is not TD-SCDMA

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

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

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

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

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

What Chinese talk in Telecom BBS : Inside exchange of ZTE

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

China Govt encourages private investment to enter basic telecom

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

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

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

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

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

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

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

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

Thursday, May 13, 2010

Former China Telecom CTO criticizes China's broadband strategy

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

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

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

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

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

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

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

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

What Chinese talk in Telecom BBS: Huawei's crisis

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

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

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

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

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

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

China Govt encourages private investment to enter basic telecom

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

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

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

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

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

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

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

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

Wednesday, April 14, 2010

2009 Top 10 fiber optics employers in mainland China

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

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

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

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

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