Market Studies
China Telecom 2000: VoL. 3: Switching Market and Opportunities in China
China Telecom 2000: VoL. 3:
Switching Market and Opportunities in China

Published: August 1997

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Overview:
China Switching Market & Opportunities is the essential guide for analyzing the increasingly competitive switching markets in China. This report provides detailed analyses of both the central office and the PBX markets, with quantitative forecasts of how the switching markets will develop till the year 2000 and beyond. Market supply and demand situations are closely examined and major foreign switching equipment suppliers, joint ventures and the emerging domestic producers such as the Great Dragon Telecommunications Group and the Golden Roc EIM Group are profiled and analyzed. The report also identifies the direction of competitive forces and future market opportunities, with a complete contact list of the switching industry.

China's telecommunications market is fast becoming one of the largest in the world. The MPT's 9th Five-Year Plan (1996-2000) calls for the increase of telephone penetration rate from he current 4% to 8-9%, and the total network switching capacity (including PBXs) to 140 million lines by the year 2000. IGI estimates that the central office switching capacity will reach 130 million lines and 170 million for the total PSTN network by the end of this century. In order to realize the MPT's objectives, China will install 14-15 million lines of CO switching equipment every year until early next century. This translates into a new RBOC company every year, or a France Telecom every three years. This rapid growth offers tremendous opportunities for switching equipment suppliers.

Who will benefit from this report

China Switching Market & Opportunities is specially designed for the following executives in their search for strategic market intelligence:

  • Strategic Planning Executives
  • Regional Market Developers/Directors
  • International Marketing and Sales Executives
  • Switching Market Analysts and Consultants
  • Investment/Finance Executives
  • Investment Bankers

TABLE OF CONTENTS

E.0 EXECUTIVE SUMMARY

  • E.1 Introduction
  • E.2 Structure of China's Telecom Sector
  • E.3 Structure of the Switching Industry
  • E.4 China's Network Development
  • E.5 The Market of Central Office Switching Equipment
  • E.6 The Private Branch Exchange (PBX) Market
  • E.7 Opportunities and Strategies

1.0 INTRODUCTION

  • 1.1 Purposes of This Report
  • 1.2 Scope of This Report
  • 1.3 Plan of This Report
  • 1.4 Methodology of This Report
  • 1.5 Definitions

2.0 COUNTRY BACKGROUND

  • 2.1 Demographics
  • 2.1.1 Western China
  • 2.1.2 Northeastern China
  • 2.1.3 Northern China
  • 2.1.4 Southern China
  • 2.1.5 Southwestern China
  • 2.1.6 Population
  • 2.1.7 Distribution of Wealth
  • 2.2 Political and Economic Reforms
  • 2.3 Foreign Trade Policy and Foreign Investment
  • 2.3.1 Foreign Trade
  • 2.3.2 Foreign Investment

3.0 STRUCTURE OF THE TELECOMMUNICATIONS SECTOR

  • 3.1 Overview
  • 3.2 The State Council
  • 3.3 Commissions and Ministries
  • 3.3.1 The State Planning Commission (SPC)
  • 3.3.2 The State Science and Technology Commission (SSTC)
  • 3.3.3 The Ministry of Post and Telecommunications (MPT)
  • 3.3.3.1 Organization
  • 3.3.3.2 Functions of the MPT
  • 3.3.3.3 The Directorate General of Telecommunications (DGT)
  • 3.3.3.4 China National Posts and Telecommunications Industry Corp.(PTIC)
  • 3.3.3.5 China National Postal and TelecommunicationsAppliances Corp.(PTAC)
  • 3.3.3.6 China National Communications Construction Corp. (CNCCC)
  • 3.3.3.7 China Communications Broadcast and Satellites Corp.(CCBSC)
  • 3.3.4 The Ministry of Electronics Industry (MEI)
  • 3.3.5 The Ministry of Foreign Trade and Economic Cooperation (MOFTEC)
  • 3.4 Provincial and Local PTAs

4.0 STRUCTURE OF THE SWITCHING INDUSTRY

  • 4.1 Overview
  • 4.2 Network Standards and Regulating Organizations
  • 4.2.1 Technical Standards
  • 4.2.1.1 National Standards
  • 4.2.1.2 Professional Standards
  • 4.2.1.3 Regional Standards
  • 4.2.1.4 Enterprise Standards
  • 4.2.2 Regulating Organizations
  • 4.2.2.1 The Ministry of Posts and Telecommunications (MPT)
  • 4.3 Switching Equipment Manufacturing
  • 4.3.1 MPT
  • 4.3.2 MEI
  • 4.3.3 Provincial and Local PTAs
  • 4.4 Endusers
  • 4.4.1 The Network Planning Process and Telecom Equipment Procurement
  • 4.4.1.1 National Plans
  • 4.4.1.2 Approval of Important Projects
  • 4.4.1.3 Project Implementation
  • 4.4.1.4 Procurement
  • 4.4.1.5 China National Postal and Telecommunications Appliances Corp (PTAC)
  • 4.4.1.6 Procurement Decision Making at the Provincial and Local Levels
  • 4.4.2 The Main Endusers
  • 4.4.2.1 MPT and Provincial PTAs
  • 4.4.2.2 The Ministry of Railways
  • 4.4.2.3 China Unicom (Lian Tong)
  • 4.4.2.4 Other Ministries
  • 4.4.2.5 The Military
  • 4.5 Research and Development
  • 4.5.1 Research Organizations
  • 4.5.2 Major Switching R &D Centers
  • 4.5.2.1 National Digital Switching Systems Research Center (NDSC)
  • 4.5.2.2. MEI No.54 Research Institute
  • 4.5.2.3 Huawei Tech. Ltd
  • 4.5.2.4 Zhongxing Telecom Institute
  • 4.5.2.5 Xian Datang Telecom Ltd
  • 4.5.2.6 Joint Ventures and Universities
  • 4.6 Policy on Imports and Technology Transfer
  • 4.7 Financing Sources and Implications

5.0 THE NETWORK DEVELOPMENT OF THE TELECOM MARKET

  • 5.1 Introduction
  • 5.2 Network Development History
  • 5.3 The Current Network Development
  • 5.4 Future Development Plans
  • 5.4.1 The National Plan
  • 5.4.2 The 9th Five-Year Plan (1996-2000)
  • 5.5 Network Structure
  • 5.5.1 Public Switched Telephone Network (PSTN)
  • 5.5.2 Local Networks
  • 5.5.3 Rural Networks
  • 5.5.4 Private Networks
  • 5.6 Network Architecture
  • 5.7 The Development of Provinces
  • 5.8 Financing the Telecom Growth
  • 5.8.1 Total Telecom Investment
  • 5.8.2 Source of Financing
  • 5.8.3 Problems in Telecom Financing
  • 5.8.3.1 End of Favorable Tax Policy
  • 5.8.3.2 Difficulty To Sustain High Installation Charge
  • 5.8.3.3 Reduction In International Lending

6.0 THE MARKET OF CENTRAL OFFICE SWITCHING EQUIPMENT

  • 6.1 Overview
  • 6.1.1 Introduction
  • 6.1.2 Production Capabilities
  • 6.2 Current Switching Market Development in China
  • 6.2.1 Growth of CO Switching Capacity
  • 6.2.2 Models of CO Exchanges in the Network
  • 6.3 Demand Analysis
  • 6.3.1 Forecast of Demand for CO Switches
  • 6.4 Supply Analysis
  • 6.4.1 Background
  • 6.4.1.1 Siemens
  • 6.4.1.2 NEC
  • 6.4.1.3 Alcatel
  • 6.4.2 The Changes in Market Share of Foreign Firms
  • 6.4.3 Joint ventures
  • 6.4.3.1 Alcatel
  • 6.4.3.2 Siemens
  • 6.4.3.3 NEC
  • 6.4.3.4 AT&T
  • 6.4.3.5 Nortel
  • 6.4.3.6 Ericsson
  • 6.4.4 Domestic Production
  • 6.4.4.1 Development History of the Domestic Switches
  • 6.4.4.2 Major Domestic Producers
    Great Dragon Telecommunications (GDT) Group
    Golden Roc Electronic Information Machine (EIM-601) Co. Ltd. (Group)
  • 6.5 The Analysis of the Market
  • 6.5.1 Supply and Demand
  • 6.5.2 Market Segments
  • 6.5.2.1 Types of CO Switches by Capacity
  • 6.5.2.2 Market Segments by Features
  • 6.6 The Development Plans of Major Provinces

7.0 PROFILES OF CO SWITCHING EQUIPMENT SUPPLIERS

  • 7.1 Introduction
  • 7.2 Foreign Vendors
  • 7.2.1 Alcatel
  • 7.2.2 Siemens
  • 7.2.3 NEC
  • 7.2.4 AT&T
  • 7.2.5 Ericsson
  • 7.2.6 Northern Telecom( Nortel)
  • 7.2.7 Fujitsu
  • 7.2.8 Samsung Electronics Co.
  • 7.2.9 Philips
  • 7.3 Major Switch Joint Ventures
  • 7.3.1 Shanghai Bell
  • 7.3.2 Tianjin NEC Electronics & Communications Industry Co. , Ltd. (Tianjin NEC)
  • 7.3.3 Beijing International Switching System Corp. Ltd. (BISC)
  • 7.3.4 AT&T Qingdao Telecommunications Systems, Ltd.
  • 7.3.5 Guangdong-Nortel Telecommunications Switching Equipment Ltd. (GNTSE) or Guangdong-Nortel
  • 7.3.6 Daewoo and Samsung of South Korea
  • 7.4 Manufacturers of Domestic Switches
  • 7.4.1 Great Dragon Telecommunications (Group) Co. Ltd. (GDT) (HJD-04)
  • 7.4.2 Golden Roc Electronic Information Machine (EIM) Co. Ltd. (Group) (EIM-601)
  • 7.4.3 Xi'an Datang Telecommunications Corporation (SP-30)
  • 7.4.4 Huawei Tech. Co. Ltd. (C&C-08)
  • 7.4.5 Zhongxing Telecom, Ltd. (ZXJ10)

8.0 THE PRIVATE BRANCH EXCHANGE MARKET (PBX)

  • 8.1 Introduction
  • 8.2 The Development of the PBX Market
  • 8.3 Demand Forecast
  • 8.4 Supply and Competition
  • 8.4.1 Production
  • 8.4.2 Models of PBX with MPT Type Approval
  • 8.4.3 Major PBX Joint Ventures
  • 8.4.3.1 Tong Guang - Nortel Ltd.
  • 8.4.3.2 Siemens Business Communications Systems Ltd.- Shanghai (SBCS)
  • 8.4.3.3 Beijing Ericsson Communication Systems Co., Ltd.
  • 8.4.3.4 Philips
  • 8.4.3.5 Guangzhou Harris Telecom Company, Ltd.
  • 8.4.3.6 Huaguang Electronics Corp
  • 8.4.4 Competition

9.0 OPPORTUNITIES AND STRATEGIES

  • 9.1 High End Switches Market
  • 9.2 Penetration in Inland Provinces
  • 9.3 Other Related Service Providers
  • 9.4 The Alliances with the Unicom

10.0 MAJOR RECENT SWITCHING CONTRACTS

  • 10.1 ALCATEL
  • 10.2 AT&T
  • 10.3 ERICSSON
  • 10.4 FUJITSU
  • 10.5 NEC
  • 10.6 NORTEL
  • 10.7 SIEMENS
  • 10.8 OTHER COMPANIES

11.0 SWITCHING MARKET CONTACT LIST

  • 11.1 Ministry of Post and Telecommunications (MPT)
  • 11.2 MPT Directorate General of Telecommunications (DGT)
  • 11.3 Provincial PTAs
  • 11.3.1 Anhui Post and Telecommunications Administration
  • 11.3.2 Beijing Telecommunications Administration
  • 11.3.3 Fujian Post and Telecommunications Administration
  • 11.3.4 Gansu Post and Telecommunications Administration
  • 11.3.5 Guangdong Post and Telecommunications Administration
  • 11.3.6 Guangxi Zhuang Autonomous Region Post and Telecommunication
  • 11.3.7 Guizhou Post and Telecommunications Administration
  • 11.3.8 Hainan Post and Telecommunications Administration
  • 11.3.9 Hebei Post and Telecommunications Administration
  • 11.3.10 Heilongjiang Post and Telecommunications Administration
  • 11.3.11 Henan Post and Telecommunications Administration
  • 11.3.12 Hubei Post and Telecommunications Administration
  • 11.3.13 Hunan Post and Telecommunications Administration
  • 11.3.14 Jiangsu Post and Telecommunications Administration
  • 11.3.15 Jiangxi Post and Telecommunications Administration
  • 11.3.16 Jilin Post and Telecommunications Administration
  • 11.3.17 Liaoning Post and Telecommunications Administration
  • 11.3.18 Neimenggu (Inner Mongolia) Autonomous Region Post and Telecom Administration
  • 11.3.19 Ningxia Post and Telecommunications Administration
  • 11.3.20 Qinghai Post and Telecommunications Administration
  • 11.3.21 Shaanxi Post and Telecommunications Administration
  • 11.3.22 Shandong Post and Telecommunications Administration
  • 11.3.23 Shanghai Post and Telecommunications Administration
  • 11.3.24 Shanxi Post and Telecommunications Administration
  • 11.3.25 Sichuan Telecommunications Administration
  • 11.3.26 Tianjin Post and Telecommunications Administration
  • 11.3.27 Tibet (Xizang) Autonomous Region Post and Telecommunications Administration
  • 11.3.28 Yunan Post and Telecommunications Administration
  • 11.3.29 Xinjiang Autonomous Region Post and Telecommunications Administration
  • 11.3.30 Zhejiang Post and Telecommunications Administration
  • 11.4 Switching Equipment Manufacturers

List of Figures and Tables also included

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