Friday, April 09, 2010

China forges ahead FTTx construction

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

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

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

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

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

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

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

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

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

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