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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

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

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?

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

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?

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

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?

How much China Unicom worths?

8/15/2007, The most recent UBS report said China Unicom wanted to sell their CDMA network to China Telecom on the price of 14.6billion RMB. The price is higher than the 8 to 8.5billion USD UBS estimated before. UBS said the price had been the main obstacle behind the deal.

But according to another local securities analyst, China Unicom worths at least 100billion RMB, that is more than 12billion RMB. In the past years, Unicom has invested nearly 100billion RMB for their CDMA network. Considering 40million CDMA subscribers, the 14.6billion USD price isn't very high.

UBS always is the most active supporter on selling Unicom's CDMA network, although Unicom has denied several times. This time again, Unicom denied they would sell their CDMA network. I believe UBS must have their insider in Unicom, so they can again and again tell the public Unicom will sell CDMA network. But the reorganization of the carriers in China is more political than a financial analyst can predict. For what reason China Unicom must sell their CDMA network, I don't know.

Except UBS, not everyone believes there must be a reorganization ahead this year.

What will Netcom's Olympic service like?

8/7/2007, China Netcom today opens their showroom for 2008 Olympic games. In this showroom, China Netcom want to demonstrate their services during the games to public.

1) Netcom will use uncompressed technology to transmit HDTV signal in long distance.
2) Netcom will cooperate with Beijing transit bureau to provide electronic path finding system for foreigners.
3) Netcom will provide IPTV service with 72 hours replay function to all important hotels
4) Netcom will also provide Internet meeting system　
5) Netcom will provide Internet service based on smart card
6) Netcom will also provide online English training courses
7) Netcom will provide traffic monitoring system for Organzier

Huawei eyes for Nortel's WiMAX engineers?

7/24/2007, In order to service Olympic 2008, China Mobile is said to build a small 2.5GHz IEEE 802.16e WiMAX network in Qingdao. Huwei, Samsung, Motorola, ZTE all hope to become WiMAX equipemnt supplier for this project.

The project was thought to be the first 802.16e project. although after the Olympic games, the network will be uninstalled, Equipment suppliers still hope to give China Mobile a good impression on their WiMAX products.

The interesting thing in the original report is that in order to develope WiMAX technology, Huawei has recruited many engineers from Nortel China R&D departments, some of them even are foreigners.

The report said, In China, there were not enough R&D resources on WiMAX， so Nortel, who put WiMAX as their important direction, become the new victim of headhunting in China.

Is it this news true? Maybe only Nortel China can prove it.

Another Huawei employee died

7/24/2007, Zhang,yue, made suicide in an appatment building yesterday just after 2 months he entered Huawei. He left a letter to his parents and told them he felt too big pressure in Huawei.
It is the 3rd Huawei employee who died abnormally in this year, the first died in his work position, the second died in the lost Kenya airplane. Everytime people saw such news, they will always link it to the high pressure Huawei employees face.
A speakman from Huawei HR department denies the suicide is because of pressure. He told the press this employee was still in training , it isn't possible he faces big pressure. Anyway, Huawei will compensent the parents 10,000 RMB to console them.
Rather than the young man died under pressure from work, I would think that he died under the high expectation from his parents, his friends. In China, not many company can provide the same high salary as Huawei. To enter Huawei is always the dream of many young boys and girls, when the dream become bubble, what will happen?
I would not criticize Huawei for this, I would condemn the society.

China leads FTTH?

7/19/2007，According to the newest ranking report by FTTH council, Hongkong, a speical zone of China, leads the world in FTTH field by a 21.2% FTTH access rate. Even mainland China has a FTTH access rate more than 1%. Taiwan, a waiting-for-united province of China, also has an access rate more than 1%.
I am so supprised to see these data. Although I know Hongkong is so successful on their IPTV development, but I know most IPTV users in Hongkong are based on DSL technology, not FTTH.
For mainland China, consider the so big population, even 1% will be an amazing number. Mainland China has nearly 300 million homes, 1% will be 3 million homes. As I know, even 30K real FTTH homes in mainland China doesn't exit.
FTTH council is holding a conference in Beijing now, the number maybe is just used to make those MITT officers happy for a day.

Wang Jianzhou learns from Murdoch

6/30/2007, What is China Mobile's next step? Maybe we should look at Murdoch first. Two weeks ago, in a speech to students from public administration school of Tsinghua University, Wang, jiangzhou, CEO of China Mobile said they needed real Internet fans. Local Media wrote :"Wang's talk shows the strong and long interest on Internet world of China Mobile".
According to Wang's talk, if they enter Internet market, what they real need is not money, but human resources. Today's statd-hold enterprises like China Mobile cannot attract high spirited employees. But he didnot cleared in which way China Mobile will enter internet market.
But What drived China mobile to Internet world. Wang said it is Murdoch. When Wang talked with Murdoch on purchasing stock of Phonetix TV, Wang found Murdoch always brought the two young founders of Myspace with him. Murdoch's interest on internet made Wang thought :"Internet will be a determining power in the future."

China Guangdian blue book 2007

6/20/2007, SARFT, the regulation maker and the real manager of broadcasting and Cable TV industry (Guangdian) in mainland China, today published a blue book about its development in year 2007.
According to this blue book, in the last year, the total revenue of Guangdian has broken 100billion RMB milestone, the real number is 109.912 billion, a 18.04% increase compared to year 2005.
At the same time, the total subscribers of digital Cable TV has reached 12.6625 million, a 218.88% increase compared with year 2005. There are already 25 cities who have finished the total transformation from analog to digital TV.
In last year, SARFT also published its terrestrial digital TV national standard which will launch this August.

Why Wu ying leaves UT?

6/5/2007, Wuying, former founder of UTStarcom, also once the CEO of UTStarcom China, once nominated as UTStarcom global CEO, left UT last Friday. Also, He left UT not volunteeringly, he said he was forced to left.

In UT's news release, we can read there is disagreement between Wuing and other leaders, but the news release didn't make it clear.

According to a Chinese media report, Wuying insisted to let his UTStarcom China be an independent company, because in recent years, UT's total business became depending on Chinese business. But UTStarcom's board of directors won't accept such a suggestion. Just because this, they have to let Wu leave.

Is that a good reason? In some kind of way, Wu ying is the represent of UTStarcom in China. People like him, customers like him.

UTStarcom's stock price jump down 10% today, that shows investors also don't agree his leaving.

Rumor:China Mobile goes into fixed network assets

5/30/2007, According to local medias, It is possilbe that China Mobile will purchase some non-core assets of China Netcom and China Telecom. Using these fixed network assets, China Mobile will develope broadband data service.
But According to China Mobile, they didn't hear such information.
In China, there is always such kind of gossip news. But yesterday's gossip can be confirmed the second day. Some local analysts think China mobile cann't have so many money to invest on fixed network after their 3G investments. For me, I hope it is true. Just like Vodafone, to enter fixed network services, it is a good news for China Mobile.
First, FMC is a trend, second, those fixed network assets can be backup network for China mobile. Thirdly, Wireless broadband cann't replace wireline broadband forever.
Anyway, it worths a try for China Mobile.

IPTV subsribers in mainland China: 612K

5/23/2007, according to the most recent IPTV market report, in the end of first quarter of year 2007, mainland China has 612K IPTV subscribers, an 36.3% increase compared to 1 quarter in year 2006. Henan, Shanghai and Heilongjiang each owns the 35.9%, 24.5%, and 18.1% of the total subscribers. The subscribers number in Shanghai even has a 150% increase.
On equipment supplier side, UTStarcom, Vkom and ZTE are the top 3 suppliers. They have a totally 97.7% market share. Vkom is the No. 1 supplier in Henan province. UTStarcom and ZTE has bigger increase in Shanghai and Fujian province.

Intel wants Wuhan its WiMAX center in China

5/23/2007, Wuhan, the largest city in central China, signed a memo with Intel yesterday. Intel will cooperate with Wuhan to build a wireless broadband industry park. At the same time,Wuhan city will organize a new national WiMAX service provider based on IEEE 802.16e standard.
This is not the first time Wuhan city shows their ambition on broadband industry. Last November, Wuhan city joint-ventured with Samsung to produce WiMAX base station and terminal in Wuhan.
Last January, Wuhan city also announced a new policy to promote the FTTP development。

Three 3G licences?

5/16/2007, MII announced both CDMA2000 and WCDMA became the offical Chinese 3G standard. The local TD-SCDMA standard has been accepted since this January. Up to now, all 3 3G standards have been accepted by China. Does it mean that China will issue 3 3G licenses?

If there is 3 3G licences, will there be a M&A among Chinese state-hold carriers. Recently there was rumors that Unicom had stopped the investment in CDMA network. Many people guessed Unicom would sell their CDMA network to China Unicom. Unicom has once again denied such news.

Expensive or not? Free or not?

5/16/2007, according to a recent World bank report, the internet service charge of each user in mainland China is nearly 10 times the charge of each user in developed countries under comparing conditions. The report induced a big discussion. Even MII officer joined the discussion, they criticised the report ungrounded. Mr. Zeng,jianqiu, a Cambridge PHD, now professor of BUPT, also said in an interview that only comparement based on absolute value is significative. An article in a Beijing newspaper warned their readers be careful of behind-the-screen overseas company.

Another similar discussion related with whether India would provide free internet service. There is a report that our neighbour will do such thing after year 2009. Seems nobody in China believe India can do this, Professon Zeng even said India was bragging.

On both of these 2 problems, seems the government and the so-called elites all have the totally different opinion with the usual internet users in mainland China. Why? Who is wrong?

Huawei is recruiting san engineers

5/8/2007,according to local media, Huawei is now recruiting SAN engineers in great quantity. What Huawei requires are those software, hardware, testing, integratation, quality contraling and marketing&sales engineers. Up to now, Huwei has nearly 1000 SAN engineers. Huawei has confirmed they would joinventured with Symantec on developing SAN products.

Huawei got No. 2 in China Mobile GSM bid

5/1/2007, According to news paper, in recent 2G GSM equipments bid of China Mobile, Erission, Huawei and Shanghai Alcatel-Bell were listed as top 3 suppliers. The bid totally valued near 35billion RMB. The final news about this bid will be announced in mid of May.
Huawei's victory is claimed as a breakthrough for local supplier in China Mobile market. Traditionally, Erission, Nokia are chief equipment supplier of China Mobile. But this time, Huawei and ZTE get nearly 25% market share, Motorola, Siemens, Nortel all lose a lot of markt share.
Clearly there is a trend, Huawei and ZTE grow quicker than their international competitors, both in domestic market or overseas market. Those competitors, especially 2nd class competitors will have harder days ahead.

Huawei, Symantec in joint-venture report

4/23/2007, A leading Chinese financial journal reported today that Huawei would joint-ventured with Symantec to develope SAN and network security market. The new joint-ventured company will be named HuaSai. And the CEO of this company will be YiNan Li who was the former CTO of Huawei, founder and CEO of Harbour Networks. Last year, Li returned to Huawei after his company was purchased by Huawei. The report also said Huawei had input nearly 1.1billion RMB in this field, they have developed full secucrity product line, and have a team more than 1000 employees. Mr. Ren, zhenfei, Huawei's founder and CEO, has emphasized this field several times this year. In SAN market, Huawei's future competitors will be EMC, IBM and HP. Both Huawei and Symantic would not review on this news.

Wei Leping: I am not satisfied with GPON test

4/19/2007, It is turn for Mr. Wei,leping, the most important person in the technology field of Chinese communication industry. In today's China Broadband application forum hold in Beijing, Wei told the audience that he was not satisfied with the test result of GPON and VDSL. He said he hoped there would be better result in the 2nd round test.
So what is wrong with the test? According to Wei, for VDSL, "It is not stable, It cann't support management of both central office side and remote side, it is not fully compatible with ADSL2+ equipments, also, equipments from different suppliers cann't work together well." For GPON, Wei didn't mention.
Maybe the most important thing Wei mentioned today is about what he thought as the real bandwidth request in year 2010. According a survey by China Telecom, the high end broadband application will include HDTV, SDTV, and video communication, so 20Mbps-30Mbps will be a possible bandwidth requet. By now, Wei said he could not imagine further bandwidth request.
That is really interesting then. Several months ago, Wei once said EPON was mature enough, Now, he said he hoped GPON had a good test result. Also, he has a larger interest on VDSL,then, finally which access technology he will choose for China Telecom, let us wait.

Netcom's broadband strategy for broadband forum

4/18/2007，China Netcom today announnced that they would host the "2007 World Broadband Asia Forum". In the same situation, two high-level managers from China Netcom told public their FTTH and WiMAX strategy for the first time.

According to Mr. Zuo,feng, General Manager of Market operating department of China Netcom groupe, China Netcom is studying advanced broadband access technology including FTTH in Beijing. About WiMAX, China Netcom had made several 802.16d WiMAX trails in Southern China.

Zuo also mentioned, although Netcom has build a advanced backbone and metro network, but in the last mile field, there is still large distance from FTTH. Also, for WiMAX, China Netcom is still waiting for the maturity of 802.16e technology.

I don't think Zuo's words have any real meaning in today's situation. In real life, China Netcom is still working on increase their customer bandwidth from 512K to 2Mbps， also there is not direct incentive like NTT or FT has for a FTTx or WiMAX application.

The forum will be hold from June 5 to June 8 in China Hotel in Beijing.

UK Media:Chunghwa Telecom wants to enter mainland China market

4/17/2007， The Financial Times and Reuters are reporting that Chunghwa Telecom is planning to enter China through indirect investment in a small local operator and by teaming up with one of the mainland’s fixed line networks in 3G mobile services.
State-controlled Chunghwa expects Chinese-language data content to be a major future growth driver. However, Taiwan’s government heavily restricts telecom investment in politically hostile China. Hochen Tan, Chunghwa chairman, told the Financial Times that the telecoms company intends to offer itself as a partner to China Telecom and China Netcom once the two mainland operators obtain 3G licences.
The two networks saw their voice revenue drop last year, and believe the 3G licences could offer an important opportunity for them to regain profitability by adding mobile services to their eroding fixed line business. Mr Hochen said in order to chase China Mobile and China Unicom, the mainland’s incumbent mobile operators, the two fixed-network companies would need expertise in the development, pricing and marketing of 3G content.
‘Although the Taiwan market is much smaller than China’s, there are similarities in our habits, our language, our stories,’ he said. The plan is at odds with Taiwan government regulations, which does not allow the island’s telecoms operators to invest in the industry in China or offer services there. But Mr Hochen said he had started to lobby the government on relaxing the restrictions. ‘It will be a window. Once it closes, there will be no other big good opportunities,’ he said.

Netcom In, Telecom Out

4/16/2007, Although China Telecom and China Netcom today won the local bidding of Chinese e-government backbone network services order at the same time, they didn't get the same success in overseas market.

For China Netcom, after they build Japan branch last month, they just applied for a licence in Japanese telecom market. Up to now, Netcom has 4 overseas branches located in Hongkong, US, Europe and Japan. Netcom also has 8 POPs located each in LA USA, Anahiem USA, SanFrancisco USA, Newyork USA, London UK, Frankfurt Germany, Tokyo Japan.

But In Saudi Arab's 2nd fixed line service licences applying, China Telecom failed to enter 2nd round with PCCW from Hongkong, and Verizon, Bahrain Telecom. No one knows the reason why China Telecom failed this time, but like the same failure of China Mobile on Millicom last year, it shows there is still long way before Chinese carriers on successful overseas market developing. They didn't prepare well for this.

Beijing Olympic Games welcome WiMAX

4/13/2007, Yokohama, Japan, Mr. Xie,linzhen, vice chairman of China mobile communication association, told the audience in a public discourse that Beijing would build wireless broadband network for 2008 Olympic games. Before 2nd quarter of year 2008, Beijing will set up 9000 WLAN access points in a 275 square kilometer, including 150 WiMAX base stations. The network will cover 90% of the Beijing city. Xie also said ChinaComm (www.cect-chinacomm.com.cn) would be one of the WiMAX services providers. ChinaComm owns 3.5GHz spectrum, they also had a plan to provide this service in another 28 cities of mainland China.
According to ChinaComm, they will focous the WiMAX service on enterprise customers, the service price will be similar to ADSL price rate.
Nortel CTO, John J. Roese who is visting Tsinghua University in Beijing now, said Nortel wanted to be the supplier for this project.

Tietong got licence on international services

4/11/2007, China Tietong(Railcom) today announced that they had got the licences on international telecommunication services. A spokeman from Tietong said their new licence supported them to have international voice, data, internet services. From this new licencs, Tietong can save millions of RMB each year on international service operating cost.

In order to support international railway operating, Tietong has build cross-border cable in the cities of Shenzhen, Suifenhe, Manzhouli, erlianhaote etc, to make communication with North Korea, Russia, Mongolia, HongKong special zone etc. Totally, Tietong owns 10Gbps international communication capacity.

Before Tietong, China telecom, China Mobilcom, China Unicom and China Netcom all had similar licences.

Photop and Wuhan National Laboratory for Optoelectronics Create Joint Lab

4/10/2007，Fuzhou Fujian, China，Photop Technologies, Inc., a key component supplier and leading manufacturer of Fiber Optics Communications, Projection & Display, and Photonics products, today announces Photop Tehnologies and Wuhan National Laboratory for Optoelectronics will jointly establish a lab for photonics technologies with applications in fiber optics communications, lasers and opto-electronics.
Wuhan National Laboratory for Optoelectronics ( WNLO) is one of the five national laboratories in China, which were sponsored by the Ministry of Science & Technology, P.R.C. in November of 2003. WNLO aims at constructing a scientific research platform of large-scale, which covers many disciplines, so as to promote the scientific innovation.
"By Combining both Photop and WNLO's advantages in industry and scientific research," stated Sunny Sun, President of Photop, "The joint lab will help Photop to develop innovative technology and science research. I believe both Photop and WNLO will benefit from the cooperation."
Among the main objectives of the joint lab are to anticipate scientific and technological advances, and establish industrial and scientific partnerships.
Photop Technologies, Inc.（www.photoptech.com ）

Can Cable operator be a new telecom carrier in China?

4/9/2007, In the NGN summit hold in Beijing several days ago, Mr. Wei,leping, CTO of China Telecom urged government to let them enter video services a.s.a.p, as an exchange, he said cabel operators in China can be a new telecom service provider.

According to No.82 Decree of State Council of the People's Republic of China approved in year 1999, Telecom service providers cann't develope video services, and Cable operators cann't have voice services. But after nearly 8 years, convergence has become the center of telecom services, More and more peoples call on a reform on this decree.

Without video services, without mobile services, today's China Telecom faces hugh profit decrease. They are eager to have new 3G licence and to enter video services. But first, they have to bread the barricade set up by No. 82 decree.

Can we see this reform in the short future? Will the cable operators like to be a new telecom service provider? Let us wait...............

Does China Mobile really have interest on TD-SCDMA?

4/6/2007, according to Shanghai Security Journal, China Mobile just began a new GSM purchasing which is worth 35billion RMB. These equipments will be used to upgrade the total national network. The question is this purchasing is nearly at the same time with China Mobile's first purchasing on TD-SCDMA 3G equipments. Also the 35 billion purchasing amount exceeds the 26.7billion TD purchasing a lot. Local analysts pointed out that the GSM purchasing meant China Mobile had other considerations on TD-SCDMA network, Maybe they didn't really have interest on it.

New manufacturing base of Huawei and ZTE

4/3/2007, According to first financial Journal, Both Huawei and ZTE are working on their big new manufacturing base. A new industry park of ZTE will begin to operate from year 2008. Huawei invested 2billion RMB on their Dongguan and Langfang base.

ZTE's new park has a 440,000 square meter area with capacity supporting 15,000 employees. ZTE spokesman said the park was an important part of ZTE's next step strategy.

Although Huawei denied the exist of their Dongguan and Langfang manufacturing base, but according to local government, Huawei will build a cellphone base with revenue of 80billion in Songshan lake, Dongguan. In Langfang, Huawei will focous on optical network equipments etc. There will be three world-class factory with total revenue 10billion RMB.

China Mobile:1.1 billion USD in PAKTEL

3/14/2007， During a meeting with minister of Pakisitan information technology ministry, Mr. Guo,yonghong, president of China Mobile Pakistan branch, told local media China mobile has invested 700 million USD in Paktel up to now. This number includes the 300million purchasing cost. China Mobile will invest 400million USD in Paktel later this year. All the money will be used to upgrade Paktel's infrastrure. China Mobile promosed they would build 2500 base staiions each year for Paktel.

Unicom embraces WiMAX Yes or Not

3/13/2007，This is an inside story. China Unicom has decided to launch WiMAX building, also they have choosed the equipment suppliers. The related proposals have been distributed to Unicom's branches in each province.
After a nearly 1 year trial on WiMAX, Unicom got below conclusions: "As an fixed wireless broadband acess system, 802.16d WiMAX has good communication quality within viewable distance, also it can guarantee some quality outside viewable distance. WiMAX is a good supplement to wireline access. It can support packed data service, it is very helpful on solving the shortage of access resource of China Unicom" .
Surprisingly, Those big names in WiMAX field does not enter Unicom's supplier list. State-hold Datang and Putian became the winners. Datang began their broadband wireless access project on October 2005, they also made a show during last year's ITU Hongkong exhibition. But seems the equipments they will provide to Unicom come from their OEM partner.
It is still not clear what kind of service Unicom will provide based on WiMAX, also it is not clear what kind of customers they will aim at. According to a BUPT professor, China unicom has the license on 3.5GHz spectrum. Their WiMAX service will possiblly based on this spectrum.

Just one day after this blog, another local media reported that China Unicom denied this WiMAX launch today. A spokeman of China Unicom told the media that they only made some trial, not large scale commercial launch. Both China mobile and China Unicom, even China telecom and China netcom had made similar trials.

Huawei and ZTE:when without tax refund

3/10/2007, In last July's Heavy Reading report, "Remade in China: Huawei and the Future of the Global Telecom Market," The report’s author, Heavy Reading chief analyst Scott Clavenna pointed out that low pricing was the key factor for Huawei's success in overseas market.
Behind this low pricing, tax refund policy of Chinese government played a very important role. In year 2005, ZTE's profit befor tax is 1.5billion RMB, 30% of it came from tax refund.
Because of China’s growing trade deficit, the country’s international trading partners and the World Trade Organization (WTO) have been pressuring it to reform tax refund policies that have benefited Huawei and other Chinese companies. From January 1st, China adopted new tax policy. Under this policy, ZTE's first quarter net profit plummted 86% comparted to 1st quarter in year 2004, Huwei then refused to announce their profit. In year 2005, Huawei accquired nearly 3billion RMB tax refund from government.
In China's No. 11 five year plan, the government has promised to further reform its tax refund policy. It is predicted Huawei and ZTE will face further profit presser in the future.
People begun to ask, without tax refund, How will Huawei and ZTE develope? If compare profit margin, they have no difference with those traditional industries.

Shanghai Telecom has 150K IPTV subscribers

x IPTV subscribers3/10/2007,according to shanghai local media, since offical launch in September last year, Shanghai Telecom has already 128K subscribers, also there are 20K subscribers are wating in line to be installed.

A Memo of China Netcom

3/8/2007， Several days ago, the two largest fixed line carrier in mainland China, China Netcom and China Telecom signed a "stop competition" contract. According to this contract, China Netcom will stop the expansion in northern China, and China Telecom will do the same in Northern China.
But Will the two carriers follow the contract? Seems it is not so easy. A memo of China Netcom recently published on Internet showed us some hinder information.
The memo is named "Measures on dealing with new contract between China Netcom and China Telecom". In this memo, China Netcom demanded each subsidary company in southern China should take care of protecting their key customers, all ISPs, all distributers should not on the exchange list with China Telecom. At same time, in Northern China, they should try best to avoid new customer losing to China Telecom.
How to look at this memeo? The so called "stop competition contract" already violated the free market principle, that is a very ridiculous contract. Compared to that, this memo is in compliance to the free market spirit.

3G on NPC

3/6/2007， The on-going fifth Session of the Tenth National People’s Congress also has some discussion on 3G. Deputy Shi, jixing, also as vice chairman of Chinese mobile communication union, submitted his 3G proposal yesterday noon. This is also Mr. Shi'a 5th similar proposal in recent 5 years.
In his proposal, Shi suggest to release 3G license a.s.a.p, otherwise, state resources will be depreciated further. The regime bondage is the main reason that there is not break up in 3G field in China. MII always doesn't give a clear answer on 3G, that means lack of scientific and democratic decision, there is no clear govenment responsibility defination. Shi also pointed out Chinese carriers cannot make 3G decision according to their own willing today. Too much interference by government could affect the final result. MII shouldn't only issue TD-SCDMA license, in order to solve the problem on internation roaming, WCDMA or CDMA2000 licenses should also be released.

MII's No.11 5 year plan

3/5/2006, MII published their "Information industry in the No. 11 Five year developing plan". Mr. Lou, qinjian, vice ministry of MII, said that the plan is a guilding plan for the industry from strategic, macro and full view.
According to local media, the chief idea in this plan is " promote triple play, enhance service and technology innovation ability, transform from simple service provider to mutli-service provider. "
Detailed methods to guarentee the realization of the plan include below:
Universial service fundAdjust competition structure following the 3G licences bidingEncourage Non-public investement to enter telecom industryHelp Chinses company develope overseas marketPut TD-SCDMA, IPv6, Wireline or Wireless broadband technology in advanceIntroduce Telecom Act A.S.A.P
Sounds good, but I am not very optismatic on it. Before our government can releaize it, there are still a lot of hurdles. On the other side, without open competition in local telecom market, without putting braodband a very stragegy position, the plan still cannot be compared with similar plan in US, in Japan , in Korea, even in Taiwan.

Who will have the largest share of China 3G market?

3/2/2007, According to local news papers, China Mobile will ask equipment manufactures to provide informal bids for TD-SCDMA network building. Earlier reports revealed that the TD-SCDMA procurement tenders will be worth CNY26.7 billion (USD3.45 billion). China Mobile is reported to be building commercial TD-SCDMA networks in eight cities: Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Qinhuangdao and Xiamen. Five of them will be the host city of Olympic 2008. It was predicated that China Mobile will launch the 3G service after October of this year.
But who will have the largest share of this big TD-SCDMA cake? Since it is a Chinses 3G standard, Chinese equipments manufacters will have more advantages in the coming bid. Huawei, ZTE, Datang, Putian, Shanghai Bell all hope to have bigger share. Will they success?
Although as the bellweather of Chinese communication equipments supplier, Huawei are not sure they can have the largest share. First because their focus was always on WCDMA, Secondly their joint-venture company with Simens on TD-SCDMA base station. But after merge of Siemens and Nokia, the future of this joint-venture company became unclear.
Before Chinese new year, it was reported ZTE will have more than 30% share of this big bid. ZTE begun their TD-SCDMA R&D as early as in year 2001. As the second largest equipment supplier in China, they are confident they will have better opporuntiy this time. They also have some cooperation with Erission in this field.
It was Datang who first publish the TD-SCDMA standard. But because of shortage of fund, Observers are always pessimistic on that they can get bigger share. If the coming bid can make this company survive longer, it will be very good for them. Maybe the biggest advantage on this field is their cooperation with Shanghai Bell.
Putian cooperated with Nokia on TD-SCDMA， their fund situation is better than Datang, but their technology is the worst compared with others. It is sure that they will not become the leader, but anyway, they will not get a small share.

Chinese ROHS

2/27/2007, Extreme Networks today announced that their products have achieved compliance with China's new environmental regulation, scheduled to take effect March 1, 2007. Extreme Networks® complete portfolio of networking solutions, including its award-winning BlackDiamond® and Summit® Ethernet switching platforms, manufactured on or after March 1, 2007, will be compliant withthis regulation.
China RoHS legislation, issued by the Chinese Ministry of Information Industry (MII)， requires the labeling of Electronic Information Products with a China-compliant graphic and date of manufacture, declaring and documenting the hazardous material content of our products for six specific chemicals, and the labeling of outer packaging with appropriate recycling symbols.
The real name of the so called China ROHS is "Method on pollution controlling of Electronic information products". Accroding to this method, all products without hazardous material will have a gree e label, and those products with hazardoous material will have a orange warning label. Basicly, all hazardous material that EU ROHS regulation doesn't allow to use is limited in China ROHS regulation.

Where is Chinese Vivene Reding?

2/26/2007, According to local newspaper, before Chinese new year, the only two fixed line carriers in mainland China, China Telecom and China Netcom agreed to enter a "stop competiting" agreement. Both companies promise that they will not make new investment in other side's territory. That means China Telecom will not develope new business in northern China, and China Netcom will not build new fixed line in Southern China.
Since the old China Telecom was seperated into new China Telecom and China Netcom in year 2004, both carriers try to enter the other side's market. But because China does not have a local access network open policy, both carriers faced great difficulty to have success on this. What they only can do is make price war. Finally, China Telecom and China Netcom do not want to play this game again. They want a truce agreement.
If I am an emaploee of China Telecom or China Netcom, maybe I will think this kind of agreeement is very reasonable. But as an observer, I find this agreement isn't suitable, just because it stops the competition. China can not always have one or two monopolized carriers on basic telecom market, Chinese customer hope to have more benefits from competition.
With long time monopoly experience, Chinese state-hold carriers always want to continue their monopoly. And Chinese government is always short-sighted and they don't have any effective method to stop this kind of monopoly. Maybe we want to ask: Where is Chinese Vivene Reding？

China Telecom Industry in 2006

Copyed from CTTL.cn

　As time goes by unnoticeably, the year 2006 is already at the end. For the Chinese telecommunication industry, 2006 is a year permeated with achievements. In 2006, the Chinese telecommunication industry entered the new era of telecommunication. Why do we say that? In 2006, every Chinese telecommunication enterprise rogressed nicely in their strategic transition, which marked the division between traditional telecommunication and new telecommunication. New telecommunication covers more areas, has longer industrial chains, and operates quite differently. With the increase in industry value, changes in the market, pularization of mobile telecommunication, promotion of the "rural project", and a deeper understanding the consumers have regarding telecommunication, the two main themes of telecommunication in 2006 are harmonious development and reform. Overall, 2006 is a year when Chinese telecommunication industry experienced fast growth.

　　Enhancemen to fover all strength

　　Compared with the tame Western telecommunication industry, the Chinese telecommunication industry maintained its high growth rate, mainly benefiting from the rapid growth of the national economy, the implementation of the strategy to use information to bring about industrialization, as well as a series of stable and practical developmental policies published by the telecommunication industry. Also, the various operators, besides going forward with their internal reform, the changing of their operating model, and the improvement of their service quality, have also increased the effort in market expansion, developing of the market potential, and the innovating of the operation model, which has increased the market demand.

　　The new eststatistics of the Ministry of Information Industry shows that in the first three quarters of this year Chinese telecommunication industry has continued to develop at a rapid rate. From January to September, the total national communication turnover was 1, 113.11 billion Yuan, an increase of 25.1% compared with the same period last year. Of the total turnover, 1,058.92 billion Yuan came from telecommunication operations, an increase of 25.5%. The national communication income was 527.85 billion Yuan, an increase of 11.7% compared to the same period last year. Of the total revenue, 479.93 billion Yuan came from telecommunication operations, an increase of 11.3%. The rate of increase in communication operation turnover is rough 2.2 times that of the communication operation income. In a year when the global telecommunication industry experienced lackluster growth, the Chinese telecommunication industry continues to increase stably, which shows the vitality of the industry as well as the positive effect the governmental policies are having.

　　In the last decade or so, the number of Chinese telephone users has ncreased in a "rolling snowball" fashion. Even though in recent years the rate of increase in operation income has slowed down, the number of users, and in particular the number of mobile users, has continued to grow at a rapid rate. From January to September of this year, 18.861 million more new fixed elephone users were added around the country, making the total 369.306 million. The number of urban telephone users increased by 13.594 million for a total of 253.346 million users; the number of rural telephone users ncreased by 5.267 million for a total of 115.96 million users. The number of wireless users in the city increased by 8.034 million for total of 93.334 million users, accounting for 25.3% of fixed telephone users. The number of national mobile telephone users increased by 49.748 million for a total of 443.154 million. The number of mobile group data users increased by 46.402 million for a total of 117.207 million. The ratio of mobile group data users among all mobile telephone users increased from the 18.0% measured during the end of last year to 26.4%. The increase in the number of telephone users in China has built solid foundations for sustainable growth in the telecommunication industry; it will further increase the social telecommunication consumption and help enhance the overall competitiveness of the Chinese telecommunication industry.

　　Harmonious development in the market

　　From January to September of this year, the total investment made in fixed assets for national communication industry was 144.31 billion Yuan, an increase of 17.7% compared to the same period last year; of the total investment, 142.48 billion Yuan were made on fixed asset for the telecommunication industry, an increase of 17.7% compared with the same period last year; 1.83 billion Yuan were invested in fixed postal assets, an increase of 21.5% compared with the same period last year. Many factors affected the changes in investment made in fixed assets for the national communication industry, which includes the adjustment made by enterprise in regard to their investment structure and investment direction. The increase in communication investment has helped the building of networks and the development of operations. Currently, with the operation income experiencing a slower rate of growth, an increase in investment made by telecommunication enterprise is merely a part of the market economy logic; it is a normal structural adjustment, and it demonstrates the practicality and reasonableness in corporate operation and investment.
　　Form Jannary to September, the Chinese mobile telecommunication income rose by 18.3% compared to same period last year, accounting for 47.1% of total communication incomes and further propelled the growth of telecommunication operation incomes. Data shows that the communication income rose by 22.2% compared with the same period last year, which is roughly twice as much as the rate of increase for major communication incomes. The ratio of fixed local telephone income and long distance telephone income in the total operation income decreased by 2.49% and 1.06% respectively compared with the same period in 2005, while the ratio of mobile telecommunication income and data communication income rose by 2.89% and 0.71% comparatively. In the mobile telecommunication field, the mobile data services developed quickly and its income accounts for 21.0% of the total mobile telecommunication income. The usage rate of fixed local telephones decreased by 2.9% compared with the same period last year, while mobile local telephone usage increased by 33.6% comparatively, further replacing fixed local services. Among fixed local telephone usages, the ratio of wireless telephone usage in the city rose from 24.9% last year to 25.7%, while the rate of increase fall from 25.3% last year to 0.2%, which shows its role in propelling the usage of fixed local telephones is decreasing. From the statistics, the change in the competitive structure and the improvement of operation organization has allowed the users to freely choose services and operators, and that has allowed for better satisfaction of the users' telecommunication demand and has promoted for more effective competition; this shows that the Chinese telecommunication market is becoming more civilized, which will allow the Chinese telecommunication market to become more harmonious.

　　Froms mall growth to quantum leap

　　The rapid growth of the Chinese telecommunication industry did not come from "luck"; it is achieved from the blood, toil and sweat, one step at a time. In the very beginning, the Chinese telecommunication industry lacked capital, technology, and management experiences, but the policies and state plans helped the telecommunication industry in getting the necessary fund as well as obtained the needed room for growth. In 2005, the Chinese telecommunication industry, under the guidance of the state policy, has achieved the metamorphosis of going from small growth to quantum leap.

　　Currently,Chinesepublicfixed telecommunication network and the public mobile telecommunication network have both become the biggest in the world, and they have maintained their rapid rate of growth. At the same time, Chinese telecommunication enterprise have progressed greatly in their effort to enter the world market, they can be seen everywhere around the world. Local equipment manufacturers such as Huawei and ZTE, after 10 years effort of internationalization, where they started in the surrounding market, moved to the developing countries, and are now permeating into developed countries, are now making more frequent appearances on the "short list" of global telecommunication giants. Furthermore, Chinese operators such as China Mobile are actively looking for opportunities to implement the "going out" strategy and become a player in the world stage. Many Chinese telecommunication enterprise are or are about to become "renowned world telecommunication enterprises".

　　China is displayingstrong potential in regard to future profit in telecommunication, development of future customers, future telecommunication investment, growth of the telecommunication market, development prospect of 4G, and overall investment environment, and it will sure propel the Chinese telecommunication industry into a quantum leap. 8

China Standard: should we support you?

11/8/2006, There are more and more Chinese technology standards becoming focus of our everyday chatting. From Chinese 3G standard TD-SCDMA to Chinese WiFi standard WAPI, From Chinese standard WiMAX McWill to Chinese IPTV standard AVS，each one brandished its Chinese flag to blandish Chinese goverment, Chinese media. Should we support all of them just because they are Chinese standard?

About one week ago, WiMAX forum chairman Ronald Resnick said in a summit in Beijing that China should be equel to each standard, only in this way Chinese products, Chinese standard can merge in to the world. Mr. Chairman is worrying about WiMAX will be replaced by Chinese McWill, but what he said is not only one-side opinion.

To have standard, to reap benefits, everyone knows the marketing rule. But this benefits should belong to all the people, all the cooperations, not only some standard publishing organizations.

Chinese have responsibilities to support Chinese standard, only when the standard will bring benefits to all Chinese, only when this standard can really become an international standard. Otherwise, standard can just be a new trade blockade.

Broadband service billing: based on traffic or time

11/6/2006, there is a long time dispute in China about the billing method on broadband service. Should it be based on how long you use it or should it be based on how much traffic you uesd? Recently, this dispute leads to a serious online brawl. The fuse of it is Nanjing telecom, China Telecom's branch in Nanjing city, suddenly announced that they would adopt traffic billing method on their broadband service instead of old time billing method.
Nanjing telecom stated that there was a big difference between different kind of broadband users. Averge monthly traffic is 8Gb, but some user can use upto 2600Gb per month mainly due to abuse of P2P software like BT. Nanjing Telecom considers such abuse of BT leads to unbalance of network resources, and it is unfair to those customers who don't use BT.
Sounds reasonable, right? But this annoucement reaps severe online remonstration. People threaten that they will change to other service provider who don't use traffic billing. People reprobate that this is a new monopoly policy. People rebuke Nanjing Telecom does not consider consumer benefits. Those who advocate the new policy often get flaks from raged customers.
Today, Nanjing Telecom told local media that their new billing policy has been temperately stopped, and no further information when they will resume this policy. Is this the victory of those critics? Mr. Xiang,ligang, Editor in Chief of a local communication magazine wrote in his blog:"This is a PR failure of China Telecom.". Xiang thought China Telecom should do more PR work before they launched this policy.
Nanjing Telecom doesn't think they are the first around the country to launch this policy. Some other cities in Jiangsu province also have this policy before them. Anyway, what we can find now is their reason to launch this new billing method doesn't disappear, they still fact hugh network resources unbalance. The traffic is increasing, but the revenue isn't. What is waiting them ahead is another suitable time to launch this billing method.
Maybe there is a good news for Nanjing Telecom, Chinese goverment is working on crumbling down those websites who provide piratic films downloading. If this work works, the pressure on China Telecom will be less.

China telecom industry's weird phenomena

 

8/24/2006，In an interview by Sohu.com, Senior engineer of policy and economics research institute in MII ,Dr. Zhu,jinzhou sum up four weird phenomena of China telecom industry.

No.1: Carriers always use "state-owned property assuring and increasing" to shield from offence.
No.2: Industry developing always sacrificed people's benifits
No.3: Domestic carriers' internet billing price is 7 times as international price
No.4: China's telecom bill is still in dystocia after 26 years.

Lucent China sues former supply chain GM

8/16/2006, Lucent China initiated court Proceeding with the case that they sue former supply chain GM, Mr. Chen,qixiong, to return 1.39million RMB personal incom tax yesterday in No.1 Middle court of SHanghai. Lucent China said in a statement they had paid more than 34 times income tax for Mr. Chen since Nov. 2005, but Mr. Chen never return any money to Lucent China.
Chen didnot appear on yesterday's court, his lawer said he didnot live in Shanghai, It was Lucent's mistake to sue him in Shanghai.He asked court to give him a 30days delay for him to prepare evidence.

Mr. Chen works for Philips China now.

Unicom's internet cafe chain running ground for unfair inter-carriers billing system

8/15/2006, According to local press, more than 2000 internet cafes belonging to China Unicom closed recently. The number amounts to 80% of the total number of Unicom's chain internet cafe. The closing of so many internet cafes means that the chian internet cafe strategy which China Unicom once expected high went bankrupt.
"It is unfair and high billing by fixed line carriers that lead to today's result." General manager of China Unicom's data and fixed line business, Mr. Zhu,shijun told the press. "We have to pay 2200RMB for each Mbps traffic to China Telecom, but we can only get 500RMB return from those franchised cafe owner. That means for each Mbps traffic, Unicom will have 1700RMB loss. Also, the price China telecom charge other customers is much lower than the price they give to us. "

China Unicom's internet cafe business began from summer of year 2004, they planned to build 2500 to 2800 franchised internet cafe around the country. Up to now, No formal feedback from China Telecom on this.

Another China Telecom/Unicom M&A rumour spreads

Another China Telecom/Unicom M&A rumour spreads
8/10/2006, Reported by Local press copied from Hongkong media, China Telecom will enter 3G mobile communication market though purchasing CDMA network from China Unicom. The news increases China Telecom's HK stock price by 4.56%. China Mobile, China Netcom and China Unicom's HK stock all increase at this news also.
The same as before, China Telecom, China Unicom, MII, SASAC(State-owned assets Supervision and Administration Commission) denied this news at once.
I donot remember how many times there is such news copied from HK media then spread through local media, some telecom analyst even think that such news is conceived by some Hongkong securities invsetors, because such news always can send those state-owned carriers' stock price higher.
Local analyst also point out that China Telecom donot have enough cash to make this purchasing.

Reasons that China Mobile renounced Millicom

Reasons that China Mobile renounced Millicom
8/8/2006， Reported by local press, In a board meeting in Beijing on July 2nd, directors of China Mobile vetoed the purchase of Millicom International Cellular S.A. ("Millicom")  finally on 5.3billion USD by China Mobile. Surprised by this result, and angried by new price talk suggested by China Mobile , Millicom then announced the end of M&A talk on the next day. Millicom announced to terminate all discussions concerning a potential sale of the entire share capital of the Company. And they pointed China Mobile would not be in a position within an acceptable timeframe to make a binding offer that was suitably attractive, given the current strong performance of the business, or sufficiently certain of closing.

About the reasons why China mobile renounced Millicom, the same article pointed out the field investigation to Millicom by China mobile was the main reason. In mid June, China Mobile send out a 15 experts group including lawer, banker and advisers, to all the countries Millisom provide service to made investigation. The group found they didnot understand Millicom at all, they even didnot know the basic information about Millicom。 Just after this investigation, China Mobile found maybe they choosed a wrong purchasing object. There will be great risks on operating in thouse countries Millicom provide services.

 

 

China Mobile will back to domestic stock market

AT&T coveting controling one mobile carrier in China
8/7/2006, President of great China area of AT&T, Mr. Li, Shengzhi told local press that AT&T will have interest on any oppunity in China telecom market.
He said:"After 22 years struggle in China market, China market has become one of the most important market on revenue increase in Asia Pacific market. In the first quarter of 2005, China market increased by 30%. Last year, AT&T also moved headquarter of great China division back to Shanghai from Hongkong. Now AT&T has more than 300 customers in China."

Li also said they would not be satisfied to just purchase some stock in second class market like Vodaphone, they want to  to be a controlling power in some Chinese mobile carrier.

China Mobile will back to domestic stock market
8/7/2006, "About go public in Domestic A stock market, We are now waiting for the approvement by CSRC(China Securites Regulatory Commission) ." One of a VP of China Mobile told local press. But he didnot say anything about the financial aim and when China Mobile can go public in A stock market.
Spokeman of China Mobile, Mr. Lei yu states that back to domestic market is a long-run process. But he denied to publish more information about this.
CEO of China mobile, Mr. Jianzhou Wang said in shareholder conference this may that he hopes China Mobile can go back to A stock market. Persons who are close to China Mobile think that no evidence show that this process can be launched right now, it need to wait CSRS's further suggestion.  

Huawei wins Netcom ASON trial

Huawei wins Netcom ASON trial
6/29/2006, Huawei today announced that they became the sole provider for ASON commercial trial of China Netcom's Longhual transmission network. Huawei won this bid after half year work with their full ASON solution and mature experience on ASON application. Huawei will provide Optix OSN series equipments to China Netcom.

Henan Mobile launch Mobile TV next month
6/28/2006, Xinhua news agency, Henan Mobile will launch mobile TV service from July 2006. Cooperated with Henan CATV, Henan Mobile's user can receive live TV services of all the Channels Henan CATV can provide now.

Wei of China Telecom appreciates IMS
6/29/2006, From IMS technology developement consulting meeting, Mr. Wei,leping, CTO of China telecom, said he thought IMS would have a good prospect. The reason is IMS not only got supprot from telecom industry, also got support from other industries, such as software, computer industry. 

China Mobile guarantees Tibet railway cellphone service

China Mobile guarantees Tibet railway cellphone service
6/27/2006, This saturday, Tiber railway(From Xining to Lasa) will begin to be in service. China Mobile today announced that they are the only mobile service provider that cover total tiber railway.
China Mobile said they could provide over 80% covering with their more than 200 base stations and repeaters. All viewing position will guarantee wireless covering.

Telefonica aiming to increase stake in China Netcom
6/27/2006, According to Hongkong media, Telefonica will increase another 5% stake of China Netcom to 10% by the end of this year. Telefonica will also get another boarding member position in China Netcom. A spokesman from China Netcom verified that they are in negotiation wiht Telefonica, but no further information.

Huawei and ZTE enter Nigeria mobile carrier
6/27/2006, From State media, Mr. Cornelius Adebayo, Minister of Federal communication ministry of Nigeria, said that Huawei and ZTE have interest to become the main share holder of two Nigeria service provider: Intercellular Nigeria and Cellcom.

Both carriers use CDMA1X technology. It was said Huawei will invest in Intercellular Nigeria, and ZTE will enter another one.

China may adopt one way cellphone charge

SDPC permits Putian/ Nokia Joint-venturing
6/26/2006, National Development and reform commisssion (www.SDPC.gov.cn) today agreed on the application that state-hold China Putian set up a joint-venture company with Nokia China. The new company will develope, manufacture and sell TD-SCDMA base station equipments. Annual capacity will be 10K TD-SCDMA base stations. 
China Putian will hold 51% stake of the joint-venture company, Nokia holds other 49%. The two paraent company will invest total 900million RMB on this project.

China may adopt one way cellphone charging
6/26/2006,State media reported, China goverment is discussing the possibility of a new communication billing policy, including long expected one way cellphone charging by Chinese consumers. But not affirmation is received from any department of China goverment.
The biggest problem behind one way charging in China is considered that it will deepen the unblance situation among different carriers. Telecom Analyst, Mr. Yu,zhangkun said that what one way charging means for China Mobile just like that monkey king does not have curse again. China Mobile will accquire more maketing share after this.
According to the data from MII, from year 2003 to 2005, China mobile's market share increased from 36.9% to 40.5%. China mobile is the only carriers whoese market share increases in China market.

Huawei Predicts 10.7 billion USD Sales For 2006

Primanex unveils high isolation isolators
6/23/2006,QINGDAO, CHINA �CPrimanex Corporation today announced specifications upgrade of one of its volume products �Coptical in-line isolators. To meet market demand and customers' needs, development engineers at Primanex have been working to improve Isolator's quality and to enhance their reliability. The most notable improvements in new SPECS are higher isolations over wider operating wavelength and temperature ranges.  

The new volume-produced optical in-line isolators can achieve isolation of >50dB for dual-stage and >24dB for single-stage over +/-20nm wavelength window and -5~700C temperature range; and for -20~700C temperature range within +/-15nm wavelength window, the isolators can guarantee isolation of >45dB for dual-stage and >23dB for single-stage. Please refer to Http://www.primanex.com for details.

Primanex can provide its customers with low cost and superior performance for various types of isolators, CWDMs, DWDMs and optical switches. Primanex proprietary optical devices, such as Ultra-fast magneto-optical switches, Etalon-based Athermal wavelength reference filters and Faraday-Rotating-Mirrors will add-in tremendous values for customers when more and more applications are discovered. Primanex owns more than 15,000 square feet clean-room for volume manufacturing and has hundreds of experienced skill workers.  Primanex can produce ten thousands pieces of devices per month. Through its innovations and manufacturing capacities built-up, Primanex is becoming a major supplier of optical components in the world.

Equity Firms Bid for PCCW, but China Netcom Opposes 
6/23/2006��HONG KONG -- Texas Pacific Group and Newbridge Capital Group (''TPG-Newbridge") confirm that they have submitted a proposal to acquire the telecommunications and media assets of PCCW Limited (''PCCW'') in a letter submitted to PCCW's Board of Directors earlier this week.

TPG-Newbridge initiated its formal expression of interest in PCCW earlier this year by entering into a scheme implementation agreement on January 26, 2006 to acquire 25% of the shares of Pacific Century Regional Developments Limited (''PCRD''), a Singapore-listed company which owns 23% of PCCW (equivalent to approximately 6% indirect ownership in PCCW). This scheme of arrangement was initiated after appropriate discussions with the Singapore regulatory authorities. The shareholder vote to consider the scheme of arrangement was scheduled for June 19, 2006, but was postponed in view of developments relating to PCCW. Subsequent to the postponement, PCCW received what was believed to be an offer from another party to acquire PCCW's telecommunications and media assets. In light of such events, TPG-Newbridge has submitted its letter to PCCW with the objective of providing the Board with a constructive alternative to consider.

 
TPG-Newbridge's proposal is conditional on the support of the Board of Directors and the shareholders of PCCW. As stated in the letter, ''We recognize the responsibility and sensitivity that come with the ownership of such a significant and strategic asset and are prepared to work cooperatively with regulators and other shareholders to create a transaction that benefits and is acceptable to all parties.'' Furthermore, we note the public statement made earlier this week by China Network Communications Group Corporation, which is consistent with our desire to pursue a transaction in accordance with the interests of all parties.

In accordance with the requirements of the Singapore Code on Takeovers and Mergers, the directors of Newbridge Century Ltd., which is the special purpose vehicle formed by Newbridge for the purpose of acquiring shares in PCRD, have taken care to ensure that the facts stated and opinions expressed in this document are fair and accurate and that no material facts have been omitted from this document, and they jointly and severally accept responsibility accordingly. As of the date of this release, the meeting of the scheme shareholders of PCRD has yet to be reconvened.

 

Above came from news releases from PCCW. But according to Hongkong media, China Netcom, who is the 2nd largest share holder of PCCW, has published announcement to oppose this bid. China netcom warned PCCW that telecommunication industry relate with national security, foreign companies shouldnot control PCCW, which is the no.1 fixed line carriers in Hongkong.

SK Telecom invests $1b in China Unicom 

6/20/2006, (Associated Press via NewsEdge) SK Telecom, South Korea's biggest wireless carrier by revenue, has agreed to buy $1 billion worth of convertible bonds issued by China Unicom, the listed arm of China's second most popular cell phone provider, as part of a strategic alliance, China Unicom said in a statement.

The two companies also have agreed to work together on their CDMA mobile phone businesses.

The bonds are convertible to 899.75 million shares, which represent about 7.15% of the issued and outstanding shares of China Unicom as of June 20 and about 6.67% of the enlarged issued and outstanding share capital of China Unicom, according to the statement.

Hong Kong-listed China Unicom expects the net proceeds of the bond issue to reach $997 million, which will be used for general corporate and working-capital purpose.

China Unicom said its alliance with SK Telecom will cover CDMA businesses including handsets, network, and value-added services for mobile phones.

China Unicom, which also operates a global system for mobile communications services, or GSM network, has seen its earnings hurt by a much weaker CDMA operation.

China Unicom's CDMA operation posted a pretax loss of 200 million Chinese yuan ($25 million) in 2005, down from 563 million yuan in 2004.

By contrast, its GSM operation's pretax profit rose 6.5 % to 7.28 billion yuan ($910 million) in 2005 from 6.83 billion yuan in 2004.

Merrill Lynch analyst Wendy Liu said in a research report that the deal is good for China Unicom.

"The Unicom management is keen to turn around Unicom ... Finding the right CDMA strategy has been a challenge. We think SK Telecom could be very helpful in this regard," Liu said.

Huawei Predicts 55% Regional Sales Growth For 2006
6/20/2006, Chinese supplier Huawei announced today that it expects contract sales in the Asia-Pacific region �C excluding China, Japan, South Korea and Hong Kong �C to reach US$2B during 2006. That's a 55 percent jump on last year's US$1.29B of contract sales in Asia (which was itself an 180 percent advance on the 2004 performance.)

Price still remains one of the key reasons why Huawei is expanding so fast outside China," says one financial analyst who wished to remain anonymous but works with the Chinese vendor. "Typically, it undercuts its western counterparts by as much as 20 percent. This is not as high as it used to be as Western vendors themselves are lowering their production costs by manufacturing in China as well."

Huawei says it now has a sales presence in 13 countries across the Asian region with actual products deployed in 20 countries. Its product focus in Asia is next-generation networks for fixed and wireless carriers. Among its customers are TT&T in Thailand, TM & TIME in Malaysia, PTCL & Telips in Pakistan and JTB in Brunei. Huawei has already won four 3G contracts in the region: B-Mobile in Brunei, Celecom in Malaysia, NTS in Indonesia and Econet in Indonesia.

 

Also from Communication Asia, Mr. Liu,jiangfeng from Huawei told state press that Huawei's revenue growth will be 30%, reach 10.7billion USD this year. In year 2005, Huawei got a revenue growth of 42%.

China Mobile, China Unicom cut rates

China Mobile, China Unicom cut rates
6/14/2006, From June 9, China Mobile will adopt the same roaming rate for international and Hongkong, Macau, Taiwan users. This new rate will include 50% cut on calling in service, GPRS roaming service and **139 service. State press reported today. Take Germany as an example, new rate only cost soccer fans 14.99Yuan per minute if they call back to China from Germany. Befort this adjustment, the cost will be 18.15 Yuan per minute. During the world cup 2006 period, soccer fans can even enjoy lower rate.

Not only China Mobile, China Unicom also said they were considering price reduction. From an Unicom sponsered International carriers conference hold in Shanghai today, China Unicom were negotiating with those foreign carriers on roaming rate cutting.

China Telecom aiming at 7million new broadband subscribers this year

China Telecom aiming at 7million new broadband subscribers this year
6/13/2006, From the first quarter financial report, New broadband subscribers for China Telecom reached 2.14 million, and total broadband subscribers reached 23.16million.

Earlier this year, China Telecom has set up the 7 million target of new broadband subscribers. In order to finish this task, China Telecom has taken several method to speed up their broadband services. Faster internet is one of weapons on this.

China Telecom now has 75% of internet exporting bandwidth that China has. China Telecom's Exporting bandwidth now reach 2500Gpbs, backbone bandwidth now reaches 4000Gbps. On customer side, From this year, China Telecom has made big investment on ADSL network upgrading. After that, China Telecom's ADSL bandwidth will increase to 20-24Mbps per user. From next month, Some of Nanjing Telecom's customer can have this 20Mbps DSL service.

Chinese SMBs in Globalcomm2006

MII officer: China won't protect Wi-Fi spectrum
6/11/2006,"The spectrum for Wi-fi today is in fact for medical application, not for communication. " Vice director of radio management in MII, Mr. Feibo Xie told local press, "Wi-Fi is a indoor gadget developed by IEEE, the spectrum Wi-Fi uses is not communication spectrum, Chinese goverment will not provide protection for it".

After Chinese Wi-Fi security standard WAPI rejectd by ITU last month, Chinese officer always consider that is an unfairness to China. The recent announcement by Xie is also a kind of reflection of this emotion.



Chinese SMBs in Globalcomm2006
6/11/2006, Although Huawei, ZTE and UTStarcom didnot attend the Globalcomm2006 show, some small or medium sized companies in Mainland China and Taiwan exhibited their strong interests on North American market through the show. These companies include media converter/ swith manufacture, PON equipments manufacutre, OSP products manufactures, connector companies, VoIP products companies and power supply provider.

The No. 1 and No. 2 media conveter manufactures in Mainland China, Raisecom and Fiberhome network both attended the show. Raisecom also attened last year's supercomm. The revenue of the 2 companies reached 400million RMB and 200million RMB each, they have most of the market share in Chinese service provider market. Compared to them, Shenzhen XDK is a small company, but they arenot newcomer to US market. They have attended OFC several times. They are eager to develope overseas market.

The No. 1 OSP product company, Sun&Sea came to Globalcomm this time also. During the OFC show this March, their exhibition once made their competitors like ADC very unset. Mr. Wang,jingsheng, CEO of Sun&Sea, told me that they would use their own brand to develope US market, although it will need longer time.

Photon Broband, subsidary of Neophotonics China, brought their BPON ONU and OLT products to Globalcomm. They consider their cost advantage will attract customers. But, Mr. Wang,yong told me their interest is still domestic market, they hope to learn something from the show.

Pandatel, a traditional German media converter company, purchased by Shanghai-based dowslake several months ago, came to Globalcomm too. CEO, Dr. Dan Yang told me Pandatel was a great brand in European and China market, although they didnot do well in North America market. But that is advantage of Dowslake. After merge of the 2 companies, Dr. Yang has confidence on the future of the new company.

Not like above equipment manufactures, Some other Chinses exhibitors focusd on consumer products. A Shenzhen VoIP company exhibited kinds colourful lovely small VoIP gateways. Some Taiwan companies showed their WiFi cellphone, even one Taiwan company showed their Skype PBX and Skype Phonw. On wireless side, I also saw one Taiwan company exhibited kinds of WiFi signal extender products. A Taiwan company named PLANET showed their wireless mesh products.

It is not easy for Chinese companies to develope North market. Some Chinese exhibitors told me they were glad to see some visitors from south America and Europe during the show. But anyway, North market is still their focus. Asked about how to develope US market, all Chinese exhibitors told me they understood they need longer time, they need to pass lots of certification first, they need to find some good distributor, there is a long way before them. Somebody told me some e-commerce website like Global Resource and Alibaba.com can help them, but some just said only exhibition was helpful.

If you know somebody who have interests to distribute Chinese communication products in North or South America market, Pl. contact me.

Reasons of Huawei entering Harbour

Reasons of Huawei entering Harbour
6/9/2006, Below opinions come from all editors of China fiber optics online（http://www.c-fol.net/）

Huawei wants Harbour's team
Including CEO Yinan Li, many high ranked staffs of Harbour came from Huawei. They experienced very hard and very special excerices in these years in Harbour. At the same time, they are familliar with Huawei. They are just the guys what Huawei needs now. Especially Harbour's CEO Yinan Li, we guess there is a big possibility that he becomes Ren's successor.

Huawei wants to avoid stronger competitor
Last year, there was a rumor that Siemens would purchase Harbour, if then, mastering the channels of Hurbour, Siemens would become strong competitor of Huawei in domestic market. Now there is no such dangeours.

Huawei needs new culture
We noticed Huawei launched their new logo, and Ren wrote a series of articles talking Huawei's new culture. That means Huawei needs more friends,not more foes. Purchasing Harbour, such a long time competitor and former traitor, Huawei showed their kindness and determination to the world.

WRI developes 80X40G DWDM system
6/9/2006, Beijing, A news announcement meeting named Ultra-speed, Ultra-capacity, Ultra-long haul optical communication technology development was hold in Beijing yesterday. Wuhan Research Institute(WRI) announced in the meeting that their 863 project "3Tnet scaleable 80X40G DWDM transmission sysem engineering and experiment " jointed by China Telecom had passed the certification of Science and technology Ministry. The system supports 40million people communicating at the same time.

Vice Minister of MII, Mr. Lou,qinjian, Vice minister of Science and technology, Mr. Ma,songde, attended the meeting yesterday.

ZTE facing investigation in India

6/2/2006, Indian goverment has halted one expansion plan for ZTE in India recently. State press reported. For the same reason as Huawei faced last year, Indian goverment worried that the quick expansion of ZTE will hurt those local companies. Before this new policy, ZTE was considering build a new factory in India.

Huawei's workaholic died in his working
6/2/2006, a young Huawei engineer died in his 25 age yesterday, many people Huawei's enterprise culture should be reponsible for this partly. Since long time ago, Huawei's employees have a habit to bring their sleeping cushion to office and work there nearly 18 hours a day. Sleeping cushion has long been thought the symbol of Huawei's culture. The death of the young engineer give critics newest evidence to criticize Huawei's culture.