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.

Where is Chinese Vivene Reding?

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？

Li Yinan Returned to Huawei as Chief Telecommunication Scientist

Sohu IT reported on September 2, 2006 that former President of Harbor Networks returned to Huawei Technologies Co., Ltd. He assumed Vice President and Chief Telecommunication Scientist. His employee number is 59096.

This is confirmed by Huawei's spokesman. Li went back to his office in Huawei on the day. Together with him back to Huawei is Huang Yaoxu, former Network Vice President of Harbour. His official title in Huawei is manager of intergrative product solution department. Huang had worked in Huawei for ten years. His last official title in Huawei was vice president of research and development. After he left Huawei, he founded Shenzhen Juntian Technologies Ltd.

Huawei purchased core business of Habour Networks on June 6, 2006. The then signed Memorandum of Understanding between Huawei and Habour agreed that Habour transfer its intelligent property of router, ethernet switch, optical network, and relative employees of intergrated access.

The telecommunication industry has been observing where Li would go since Habour was merged. Most analyses considered that Li would not return to Huawei. But there are also quite some people think that Li would return to Huawei and heeds on Ren Zhengfei as number one leader of Huawei.

Ref:
（9/122006）。李一男回归华为 担任副总裁兼首席电信科学家。Retrived September 12, 2006 from IT Sohu at: http://it.sohu.com/20060912/n245301607.shtml

Bo Xilai: China is making its promise to open its door to Chinese telecommunication

The Minister of China's Commercial Department sadi on September 04, 2006 that China is going to open its markets in finance and telecommunicaion as China has promised in WTO agreements. Minister Bo made the promise in a evening party welcoming China's entrace to WTO by the European Union Chamber of Commerce. Quite a few foreign investers had criticized the slow pace China had made in opening these fields before. The five-year interim peroid for China banks to warm up with WTO rules will expire on December 11, 2006. According to the promises China has made to WTO, foreign invested banks in China would be able to compete with Chinese banks in full. At the same time, China's telecommunication market would fully open to foreign investments. Bo suggeted that China's speed to open certain important areas is not slow and many European multinational companies had benefited such as British Petroleum, which has 605 legally admitted gas stations in China and so becomes the foreign company that owns the most gas station in China. European Union has 60 percent of the joint securities and bonds companies in China. Vodafone Group, the noted English mobile telephone company, has appropriately confederated strategic alliances with China Mobile. Bo refuted the criticism that China is turning back to its trade protectionism. He said, on behalf of Chinese government, that the only way for China's development is to encourage competition and bring in open economy. (x)

Ref:
Chen, G. (September 2006). Bo Xilai: China is making its promise to open its door to Chinese telecommunication. China Youth. Retrieved September 07, 2006 from http://it.sohu.com/20060907/n245209932.shtml

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.