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Preview: What's up with communication industry in China?

What's up with communication industry in China?



This blog is a record of important things happened in China communication industry everyday.



Updated: 2014-10-06T18:26:36.857-07:00

 



Accelink merges with WTD

2011-07-04T15:15:21.254-07:00

July 4, 2011, Wuhan, Two of the biggest fiber optics component companies in mainland China announced the long expected merge today. The merge of Accelink (Shenzhen stock market, 002281) and WTD will generate the No. 1 component supplier in China, with revenue more than 2 billion RMB (350 million USD). A security company first published this news last Friday, CFOL verified the news with both WTD and Accelink today.
For the whole report, see
http://www.cordacord.com/news/content/2/201107/20110704181310.html



Interview: Dolite aims brand image increasing

2010-07-27T14:51:04.515-07:00

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

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

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

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

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

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



Huawei's Ren appears on TV

2010-07-27T14:50:27.417-07:00

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

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



Dimension:a fiber interferometer manufacturer's ideal

2010-07-27T14:48:51.054-07:00

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

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

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

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

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

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



Anti dumping, Huawei in Russia

2010-07-27T14:48:22.392-07:00

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

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

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



FTTH rollout brings high request on ODN

2010-06-11T15:11:35.242-07:00

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

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

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

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

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

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



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

2010-06-11T15:11:11.155-07:00

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

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

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

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

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

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

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



It is easy to launch a optical communication company in Wuhan

2010-06-11T15:10:42.770-07:00

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

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

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

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

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

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



China passed crappy triple play policy

2010-06-07T20:47:21.597-07:00

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

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

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

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

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

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



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

2010-05-27T12:03:23.043-07:00

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

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

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



China Mobile opens tender for PTN equipments

2010-05-27T12:03:02.212-07:00

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

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

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

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

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

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



POF is not TD-SCDMA

2010-05-27T12:02:34.317-07:00

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

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

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

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

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



What Chinese talk in Telecom BBS : Inside exchange of ZTE

2010-05-27T12:01:49.625-07:00

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



China Govt encourages private investment to enter basic telecom

2010-05-27T12:01:22.342-07:00

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

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

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

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

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

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

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

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



Former China Telecom CTO criticizes China's broadband strategy

2010-05-13T20:27:31.929-07:00

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

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

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

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

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

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

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

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



What Chinese talk in Telecom BBS: Huawei's crisis

2010-05-13T20:26:54.402-07:00

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

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

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

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

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

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



China Govt encourages private investment to enter basic telecom

2010-05-13T20:25:47.969-07:00

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

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

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

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

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

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

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

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



2009 Top 10 fiber optics employers in mainland China

2010-04-14T15:53:57.056-07:00

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

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

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

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

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



Chinese Suppliers on OFCNFOEC2010

2010-04-12T17:16:08.529-07:00

April 12,2010, For the first time in the history of OFC, there is Chinese announcement on the show. For many years, exhibitors from mainland China, Hongkong and Taiwan have played more and more important role. Especially in this year, OFC is dedicated to a Chinese American, Dr. Charles Kao, the father of optical fiber communication. Some Huawei USA's employees told me that Chinese announcement is because the show is sponsored by them. As one of several equipment suppliers on the show, Huawe has a big exhibiting truck on the floor and they always are the topic center of the show. Both Huawei and ZTE send many R&D and purchasing engieers to the show this time. Compared to Huawei, China's component suppliers have far less influence on the fiber optics industry, but as a total, they still play a very important role in today's fiber optics industry. For example, Emcore has just announced to set up a component joint-venture in Tangshan China before the show. Charles Wang of Emore told me on the show that it is good to attract Chinese investment to Emcore, they have large enthousim to make more success in China. In recent years, more and more big US component manufactures came to China to set up manufacturing base or R&D center. A Finisar guy told me they already had 2000 staffs in Shanghai Factory. I also met someone from AOC, they have a big factory in Wuhan now. Some US companies choosed to purcha their Chinese counterparts. Photop, who was purchased by II-VI in the end of last year, is one of them. Mr. Sun,zhaoyang of Photop said that it is their investor's will to sell the company. But good news is II-VI doesn't interfere their business. From the show, you can still see the Photop logo. Neophotonics and Source Photonic are 2 other different examples. From these two companies, it is hard for you to find any Fiberxon or Photon's heritage, they are totally US companies now. Most of the Chinese exhibitors on the show don't have any overseas background. Some of them came to the show for the first time. They are eager to find customers in overseas market. The competitor of ADC and Corning in China, Sun&sea group,who went to public in Shenzhen stock market last year, only has one booth. But this time, they have a representive from their Chicago office. CEO and founder of the company, Mr. Wang, wensheng told me they already have several customers in US market. To go to public is only the first step in the long march for them. I didn't hear about the name of Chaoqian communication equipment before I came to the show. But this Zhejiang company has a Houston office and several local employees. The Chairman of the company, Mr. Xu Qing is so confident about their products. "Why Chinese product not as goos as Corning or ADC's?", he asked. Mr. Kenneth Boop is the sales manager of Chaoqian in US, he told me that he thought Chaoqian's products are competive enough in US market, Chinese need learn to adapt to US style of marketing. What he will do is help Chaoqian to develope this market. Both Chaoqian and Sun&Sea are passive equipment manufactures. In component side, Ligent (Hisense in China) and WTD also invite local sales. Ligent is the long time GPON transceiver leader, this year, I saw them to have 1 more local sales. For WTD, it is the first time for them to have a local sales. VP of WTD, Mr. Xu, yuanzhong told me that his company must be the first class transceiver suppliers in 3 to 4 years. They have recruited many talented engineers from US. Next year's show, they will have 4 booths. In the top 10 equipment manufactures around the world, only Cisco[...]



China forges ahead FTTx construction

2010-04-09T14:44:24.664-07:00

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

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

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

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

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

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

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

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

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



Ten keywords about Huawei 2009

2010-04-08T15:54:15.445-07:00

April 8,2010, There is a popular blog article about Huawei these days in China. The title of the article is "Top 10 keywords inside Huawei in year 2009". The author Yu bin is a freelance writer in Nanjing city. In his article,he gives all these keywords their reference, either from Huawei president Ren zhengfei's speech, or from some other inner document of Huawei. All these keywords are chosed by Yu himself. But anyway from these significant Huawei style words, you can understand more about this Chinese telecom giant.

1)To call for shell fire.

In January 2009, Ren gave a speech on Huawei's customer service awarding conference. During the speech, Ren mentioned "who calls for shell fire? and who provides shell fire?" Ren used this expression to push process management reform inside Huawei. He demands to let those who can here shellfire to make the final decision.


2)To dig waterway deep, to make dam shallow

This expression is from Dujiangyan (a famous ancient Sichuan irrigation infrastructure)'s builder Mr. Li Bing. Ren used this expression in April's operation and delivery conference. To dig waterway deep, means to increase operation efficiency. To make dam shallow means to share profit with customers and suppliers.

3)Iron triangle

When carbon atoms are arranged in a variation of the face-centered cubic crystal structure (Iron triangle), it is diamond. Ren uses this expression to describe the solid relation among customer, product and solution, delivery.

4)Shangganling

Shangganling battle is one of the most famous battles in Korea war. In Huawei, Shangganling means those areas where natural condition is bad. Ren hopes his employees to learn from heroes in the Shangganling battle.


5)Resource pool
This is the pool for all back up managers of Huawei.

6) Three major campaigns

Launched by the People's Liberation Army (PLA) during the late stage of the Chinese Civil War, 3 major campaigns made the foundation of People's republic of China. In year 2009, in order to get bigger market share from China's 3G launch, Huawei also launched 3 major campaigns.

7)The Little Match Girl

Using this story from Hans Christian Andersen, Ren hopes his employees to care about those poor people.

8)To wash feet for your parent
Before 2009's Chinese new year vocation, Ren asked his employees to wash their parent's feet when they went home. This kind of behavior is considered Huawei employee's family responsibility.

9)Impeachment
This is from Huawei's carder management system. Ren asked his employee to impeach those bad managers.

10) LTC
It is a acronym of three English words "Leads to cash", the key of Huawei's management process reform.

More news about China's fiber optics industry, Please browse www.cordacord.com



What Chinese talk in telecom BBS: March 18

2010-03-18T10:56:58.686-07:00

About China Mobile: "China Mobile, Tencent calls you to go back home to study", This is the title of a thread on C114. The title uses a very popular internet style language to attract readers, the content is about the strategy that China Mobile should adopt to develop mobile internet market. The author suggests China Mobile to learn from Tecent (a company holds the largest internet chatting service customers in mainland China on its QQ brand.) His three suggestions are: differencing brand, giving old customers more services, increasing the connection among different services. A blog by China Mobile research institute on Sina wrote that China Mobile will be the only winner in the coming LTE generation. Compared to China Mobile, Unicom has less subscribers than before after separating CDMA network to China Telecom, also, Unicom's WCDMA still has problem on basic phone service. As China Telecom, they have several mobile networks like Xiaolingtong, 2G CDMA, 3G CDMA2000 at the same time. Both Unicom and Telecom face large difficulty on transferring to LTE。 About Huawei: Tianya Netizens continue discuss Huawei employee's salary. They can’t reach an answer on how much an engineer can earn in Huawei after 3 years work. About new triple-play policy: Hongkong public company, China Neo Telemedia Limited (a former media company) purchased Foshan Langxun (it has the same name in Chinese with Lucent) who is the builder of FOshan city's wireless network. A Sina blog wrote that triple play in China is really a sure thing from this acquisition. He also suggested not to sell the stock related with triple play. From C114, a branch company of China mobile cooperates with local Cable TV service provider to compete with China Telecom on broadband service. China mobile is in charge of promotion, cable TV service provider is in charge of network. The two companies shares the profit from their service. is said the combined service is much cheaper than what China Telecom provides in that area.More fiber optics news about China: www.cordacord.com[...]



Raycus and fiber laser industry in China

2010-03-17T11:20:55.726-07:00

March 17, 2010, In Shanghai Laser and opto-electronic show taken place from March 16 to March 18, Wuhan Raycus (www.raycuslaser.com) introduced several pulsed or continuous fiber laser with out power range from 10W to 100W. The company is reported to have the ability to manufacture fiber laser value of 100million RMB each year.

As the first special high power fiber laser developer and manufacturer in mainland China, Raycus was founded by US fiber laser industry veteran Dr. Yan dapeng in year 2007. Yan and Huagong Laser, a subsidiary of Wuhan public company Huagong Tech, each owned 50% share of the company but Dr. Yan has the key power to control the company. From Raycus's website, Yan and Huagong laser invested 30million RMB in the company each in year 2007. Huagong laser was reported to sell her 32% share in Raycus for 63.36 million RMB last week. They still keep 18% share of Raycus.

From 1996 to 2007, Dr. Yan worked in several US universities and companies, including University of Illinois at Chicago, Wright State University, Zybron Company, Lasersharp Company and Nufern Company. From these work, he accumulated much experience on fiber laser, semiconductor laser package. He has 3 US patents. Before 1996, he worked in Nanjing Polytech University.

Among tens of mainland China's fiber laser companies, Raycus is the most successful one. But up to day, the company didn't announce any real orders. Compared to its international competitors like IPG, SPI, JDSU, they have no resource on doped fiber or pump laser manufacturing, and it is difficult for a start up company to enter this market. For this kind of product, I don’t think Raycus can copy OEM business model from other low end components manufactures.

According to some market report, the scale of international fiber laser market is reducing. Maybe it is a good time for companies like Raycus to accumulate resource during this hard time. Raycus still has some advantages like her good relationship with China's government, also there are more and more high power passive fiber component manufactures in China these years. If Raycus can really find a niche market in China, it will have very good potential.

More fiber optics news in China, visit www.cordacord.com



What Chinese talk in telecom BBS:March 15 2010

2010-03-17T11:20:04.600-07:00

March 15,2010, If you want to know more about what happened in China's telecom industry, you not only need to notice news releases, or reports from journalist, you also need to notice what those netizens write on some internet bulletin board and blogs. Sometimes they are a very useful and interesting information source. From today, we will try to collect some contents from telecom BBS in China to help you further understand this industry.

1) About telecom service providers
China Mobile invested Pudong Development Bank. A netizen from SOHU wrote:” This is really a strategy investment; it will influence the future of telecom industry in China. "
About Unicom's WCDMA network. There is a popular thread called "Unicom destroys WCDMA by 3 gunshots". Which 3 gunshots, the first one, wrong person on the position, the 2nd, blind adjustment, the 3rd, bad management. WCDMA has more technology advantage compared to two other 3G technologies, but it seems Unicom can’t change this technology advantage into her profit advantage.

2)About equipment suppliers

If Commerce Ministry will approve that HP purchases Huawei 3Com, it is still a question. A netizen from C114 wrote:"if the merge is approved, HP will have more than 65% market share on high-medium end datacom products. in China. It is not a good thing to the info security of China because H3C's products have been already deployed in many governments. "

Is it a good choice to go to work in Huawei from a foreign enterprise in China? A thread from Tianya gave a NO answer. The reasons include too many extra works, too high pressure, not humanity managements.

Another thread in Tianya introduces Huawei's salary structure. According to this thread, a new graduated university student can earn 800USD to 1000USD in Huawei, an usual engineer with 5 years experience can earn 2000USD, and those high ranked managers in Huawei can earn 5000 to 8000 USD. It is really the same with a US company.

A C114 thread compared the job service of Erission, Nokia Siemens and Alcatel-Lucent's Chinese website, and found Erission provides better service than other 2 competitors. Some other authors pointed out that Alcatel-lucent China adopts 51jobs.com (A Chinese job website)'s OEM services in this field, that is the reason they did worse job compared to others.

3) About fiber/cable suppliers

A SOHU blogger interviewed Mr. Zhou zhonglin, member of China's fiber and cable industry committee. In his blog, Mr. Zhou pointed out that China's government must give specail policy support on the development of fiber preform. Without this support, privet companies don't have the capability to take this burden.

4) Others
A Tencent Blogger wrote that Uincom will reduce iPhone's price. As the only provider of Apple's iPhone, China Unicom set up a price that many customers think a little high.



The proposal of NPC Deputy Tong from Accelink

2010-03-11T09:43:02.994-08:00

March 11,2010, At the ongoing National People's Congress (NPC) in Beijing, there is a deputy from fiber optics industry, Mr. Tong,guohua. He is the chairman of Accelink, the largest state-hold component manufacture, especially on passive components in mainland China. What is his proposal this year?

The name of his proposal is "Fully using advantages of Donghu(East Lake) national hi-tech zone in city of Wuhan, forging ahead development of strategic new industry."

Then what his real meaning behind this proposal? According to an interview with Secuitimes Newspaper, Deputy Tong suggests that government should pay more attention to developing new strategic industry, including fiber optics industry. And it is very important to make use of capital market to help development of these new industries.

"In Premier Wen's government report, he mentioned many times about transferring method of economic development, adjusting industry structure. He also mentioned six new strategic new industries, one of them is information network. As a fiber communication component supplier, this provides large space for the development of Accelink. " Tong said.

Accelink went to public in Shenzhen stock market in last august. Tong told the reporter that they are upgrading the product portfolio and marketing channel using the money from the stock market. He pointed out that the stock market is very important for companies like Accelink. Next step, they will make R&D and market development quicker and better.

Tong said, "the new triple play policy from the government brings good opportunities for Accelink. Many of their products related triple play services, and they are working on some new products special to this market. "

More fiber optics news from mainland China, please visit www.cordacord.com