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?