Market Studies
China Telecom 2000: Vol. 5, Data Market and Opportunities
China Telecom 2000: Vol. 5
Data Market and Opportunities

Published: January 1999

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Overview:
Over the last several years, China has made impressive progress in data communications and has demonstrated the great potential for all types of datacom equipment. China will spend over US$20 billion per year on its telecom infrastructure development in the next three years. A significant part of that investment will be on datacom networks and equipment.

Data communications services in China are provided by China Telecom, Ji Tong Communications Company, China Unicom and other Ministries. China Telecom is the major provider of public data communication services. Ji Tong and China Unicom are newcomers as public datacom service providers. In addition, numerous ministries, such as the Ministry of Railways, the former Ministry of Power (now the State Power Corp.), the Ministry of Water Resources and the People’s Bank of China, are also building data networks for their internal uses.

China’s public data communications market has gained momentum over the last three years. In 1993, there were fewer than 3,000 subscribers to datacom services. That number increased to 14,000 and 60,000 in 1994 and 1995. By the end of 1996, the number of subscribers increased to 160,000. The public datacom service users reached 400,000 and 1.54 million at the end of 1997 and 1998 respectively.

This report on China’s Data Communications Markets and Opportunities provides a detailed analysis of the data communications markets in China. The report provides information on China’s different regions and gives a detailed analysis of the telecom market structure and policy. It surveys the current telecom market development status and future development plans of the MII, Ji Tong, China Unicom and various provincial PTAs. In addition, special attention is given to the data market opportunities of the following provinces and organizations: Beijing, Shanghai, Guangdong, Jiangsu, Hubei, Liaoning, Shandong, Ji Tong and the Golden Projects. The report offers quantitative forecasts of how the datacom and Internet markets will develop till the year 2005 and beyond. Major datacom equipment vendors are profiled and a detailed contact list is provided to help prospective firms to enter the Chinese datacom and the Internet markets.

TABLE OF CONTENTS


E.0 EXECUTIVE SUMMARY

  • E.1.0 Introduction
  • E.2.0 The Organizational Structure of China's Telecom Industry before 1998 Reorganization
  • E.3.0 The Organizational Structure of China's Telecom Industry after 1998 Reorganization
  • E.4.0 Datacom Market Policy and Development
  • E.4.1 The DCB of MII
  • E.4.2 China's Public Data Networks
  • E.4.3 Ji Tong and the "Golden Projects"
  • E.4.4 China Unicom's Datacom Ambitions
  • E.4.5 Private Networks
  • E.5.0 The Internet in China
  • E.5.1 Market Development
  • E.5.2 A Survey of Internet Market
  • E.5.3 Internet Service Providers (ISPs)
  • E.5.4 IP Telephony in China
  • E.5.5 Forecast of Internet Growth
  • E.5.6 Factors Stimulate Internet Growth
  • E.5.7 Obstacles to Growth
  • E.6.0 Data Markets in Major Provinces

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

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 and Investment
  • 2.3.1 Foreign Trade
  • 2.3.2 Foreign Investment
  • 2.4 China's WTO Negotiations

3.0 THE ORGANIZATIONAL STRUCTURE OF CHINA'S TELECOM INDUSTRY BEFORE 1998 REORGANIZATION

  • 3.1 Introduction
  • 3.2 Overview of the Old Regulatory Structure
  • 3.3 The State Council
  • 3.4 Key Ministries and Commissions Related to Telecom
  • 3.4.1 The State Planning Commission (SPC)
  • 3.4.2 The State Science and Technology Commission (SSTC)
  • 3.4.3 State Economic and Trade Commission (SETC)
  • 3.4.4 The Ministry of Post and Telecommunications (MPT)
  • 3.4.4.1 Organization
  • 3.4.4.2 Functions of the MPT
  • 3.4.4.3 The Directorate General of Telecommunications (DGT)
  • 3.4.4.4 China National Posts and Telecommunications Industry Corporation (PTIC)
  • 3.4.4.5 China National Postal and Telecommunications Appliances Corporation (PTAC)
  • 3.4.4.6 China National Communications Construction Corporation (CNCCC)
  • 3.4.4.7 China Communications Broadcast and Satellites
    Corporation (ChinaSat)
  • 3.4.4.8 China Provincial and Local PTAs
  • 3.4.5 The Ministry of Electronics Industry (MEI)
  • 3.4.6 The Ministry of Radio, Film and Television (MRFT)
  • 3.4.7 The Ministry of Railways (MOR)
  • 3.4.8 The Ministry of Power
  • 3.4.9 The Ministry of Foreign Trade and Economic Cooperation (MOFTEC)
  • 3.4.10 State Radio Regulatory Commission (SRRC)
  • 3.4.11 People's Liberation Army (PLA)
  • 3.4.12 People's Bank of China
  • 3.5. Development of Research Center of the State Council
  • 3.6 State Information Center (SIC)
  • 3.7 Center for Information Infrastructure and Economic Development (CIIED)
  • 3.8 The State Council Steering Committee of National Information Infrastructure
  • 3.9 China United Telecommunications Corp. (China Unicom)
  • 3.9.1 Founding Organizations
  • 3.9.2 The Leadership Team
  • 3.9.3 Business Development
  • 3.9.4 Foreign Cooperation
  • 3.9.5 Future Objectives of China Unicom
  • 3.10 Ji Tong and The Golden Projects
  • 3.11 China Telecom Great Wall Mobile Communications Ltd.

4.0 THE ORGANIZATIONAL STRUCTURE OF CHINA'S TELECOM INDUSTRY AFTER 1998 REORGANIZATION

  • 4.1 The New State Council
  • 4.2 29 Commissions and Ministries
  • 4.3 The Key Ministries and Commissions Related to Telecom
  • 4.3.1 State Development Planning Commission
  • 4.3.2 The Economic and Trade Commission
  • 4.3.3 Ministry of Science and Technology
  • 4.3.4 Ministry of Finance
  • 4.3.5 Ministry of Foreign Trade and Economic Cooperation
  • 4.3.6 People's Bank of China
  • 4.3.7 Ministry of Public Security
  • 4.3.8 The Super Ministry - Ministry of Information Industry (MII)
  • 4.3.8.1 Organizational Structure
  • 4.3.8.2 New Leadership Team
  • 4.3.8.3 Functions and Responsibilities of MII
  • 4.4 Convergence of Telecom and CATV Networks
  • 4.5 Private Networks

5.0 TELECOMMUNICATIONS INFRASTRUCTURE

  • 5.1 Introduction
  • 5.2 Telecom Investment
  • 5.3 Network Capacity and Subscriber Growth
  • 5.4 Transmission Networks
  • 5.4.1 Fiber Optic Networks
  • 5.4.2 International Fiber Optic Cables
  • 5.4.3 Microwave Networks
  • 5.4.4 Satellite Networks
  • 5.4.1.1 Introduction
  • 5.4.4.2 Recent Development
  • 5.4.4.3 Demand for Satellite Communications
  • 5.4.4.4 Very Small Aperture Terminal (VSAT) Markets
  • 5.4.4.5 VSAT Service Providers
  • 5.4.4.6 VSAT Equipment Suppliers
  • 5.4.4.7 Future Prospects
  • 5.5 Mobile Communications
  • 5.6 Data Networks
  • 5.7 1999 Objectives of MII
  • 5.8 The 9th Five-Year Plans of MII
  • 5.9 The Long Term Objectives of Telecommunications Sector in 2010

6.0 DATA COM POLICY AND MARKET

  • 6.1 Overview
  • 6.2 The Data Communications Bureau of the MII
  • 6.3 China's Public Data Networks
  • 6.3.1 ChinaPac
  • 6.3.2 ChinaDDN
  • 6.3.2.1 Functions Provided by ChinaDDN
  • 6.3.3 ChinaNet
  • 6.3.4 ChinaFRN
  • 6.3.4 ChinaMail
  • 6.3.6 ChinaFax S&F
  • 6.3.7 ChinaEDI
  • 6.3.8 Wireless Data
  • 6.3.9 China Public Multimedia Information Network
  • 6.4 Rapid Datacom Subscriber Growth
  • 6.5 Ji Tong and the "Golden Projects"
  • 6.6 The Golden Projects
  • 6.6.1 Golden Bridge
  • 6.5.2 Golden Customs (Gate)
  • 6.6.3 Golden Card
  • 6.6.4 Golden Tax
  • 6.6.5 Golden Agriculture
  • 6.6.6 Golden Macro
  • 6.6.7 Golden Intelligence/ CERNET
  • 6.6.8 Golden Health
  • 6.6.9 Golden Sea
  • 6.7 China Unicom's Datacom Ambitions
  • 6.8 Private Networks
  • 6.8.1 Railway Telecom Network
  • 6.8.2 State Power Corp. Communications Network
  • 6.8.3 China National Financial Communications Network
  • 6.8.4 Earthquake Monitoring and Forecasting Communication Network
  • 6.8.5 Space Industry Corporation's Communication Network 161
  • 6.8.6 Meteorology Communications Network

7.0 THE INTERNET IN CHINA

  • 7.1 Overview
  • 7.2 Survey of Internet Market in China
  • 7.2.1 New Internet Survey from CNNIC in July
  • 7.3 ChinaNet
  • 7.4 ChinaGBN
  • 7.4.1 Current Development
  • 7.4.2 Future Plans
  • 7.5 CERNet
  • 7.5.1 Objectives of CERNet
  • 7.5.2 Current Scale
  • 7.5.3 CERNet Organization Structure
  • 7.5.4 CERNet Network Topology
  • 7.6 CSTNet
  • 7.7 Internet Tariff
  • 7.8 Internet Service Providers (ISPs)
  • 7.9 Intranets
  • 7.10 IP Telephony in China
  • 7.10.1 The IP phone trials
  • 7.11 Broadband Access (Cable Modems, xDSL, WLL)
  • 7.12 Forecast of Internet Growth
  • 7.12.1 Factors Stimulate Internet Growth
  • 7.12.2 Obstacles to Growth

8.0 DATA MARKET OF MAJOR PROVINCES

  • 8.1 Beijing
  • 8.1.1 Data Network Development
  • 8.1.1.1 Beijing Telecom Public Packet Switched Data Network
  • 8.1.1.2 Beijing Telecom Digital Data Network
  • 8.1.1.3 Beijing Telecom Frame Relay Network
  • 8.1.1.4 Beijing Telecom N-ISDN Network
  • 8.1.1.5 Beijing Telecom ATM Trial Network
  • 8.1.2 Beijing Telecom Internet
  • 8.1.3 Future Development Plans
  • 8.1.3.1 Access Network
  • 8.1.3.2 Supporting Networks
  • 8.1.3.3 New High Speed Broadband Networks
  • 8.2 Shanghai
  • 8.2.1 Data Network Development
  • 8.2.2 New Value-added Data Services
  • 8.2.3 The Information Harbor Project
  • 8.3 Guangdong Province
  • 8.3.1 Data Network Development
  • 8.3.1.1 The Guangdong Public Internet (ChinaNet-GD)
  • 8.3.1.2 The Shi Ling Tong Network (Gnet)
  • 8.3.1.3 The Super Shi Ling Tong Network (Super Gnet)
  • 8.3.2 Future Plans
  • 8.3.2.1 ChinaNet-GD
  • 8.3.2.2 The Shi Ling Tong Network (Gnet)
  • 8.3.2.3 Super Shi Ling Tong Network (Super Gnet)
  • 8.4 Hubei Province
  • 8.4.1 Data Network Development
  • 8.4.2 Future Plans
  • 8.5 Jiangsu Province
  • 8.5.1 Data Network Development
  • 8.5.1.1 Jiangsu Packet Switched Data Network (JSPAC)
  • 8.5.1.2 The Jiangsu Digital Data Network (JSDDN)
  • 8.5.1.3 Wireless Data Trial Network
  • 8.5.1.4 The Internet in Jiangsu (ChinaNet-JS)
  • 8.5.1.5 Value Added Services
  • 8.5.2 Future Plans
  • 8.5.2.1 Frame Relay/ATM Network
  • 8.5.2.2 8-City Digital Data Network
  • 8.6 Liaoning Province
  • 8.6.1 Data Network Development
  • 8.6.2 Future Plans
  • 8.6.2.1 The Backbone
  • 8.6.2.2 Local Networks
  • 8.7 Shandong Province
  • 8.7.1 Overview
  • 8.7.2 Current Network Development
  • 8.7.3 Future Development Targets

9.0 PROFILES OF DATACOM VENDORS

  • 9.1 3COM
  • 9.2 Ascend Communications Inc.
  • 9.3 AsiaInfo
  • 9.4 Bay Networks
  • 9.5 BMC Software
  • 9.6 Cabletron Systems
  • 9.7 China Internet Corporation (CIC)
  • 9.8 Cisco Systems, Inc.
  • 9.9 Digital Equipment Corporation
  • 9.10 ECI Telecom China
  • 9.11 Ericsson
  • 9.12 General Datacomm
  • 9.13 Global One China
  • 9.14 IBM
  • 9.15 Informix Software, Inc.
  • 9.16 Ji Tong Communications Company Ltd.
  • 9.17 Lotus Development (China) Company Ltd.
  • 9.18 Microsoft (China) Ltd.
  • 9.19 Network Equipment Technologies, Inc. (N.E.T.)
  • 9.20 NeTrue Communications, Inc.
  • 9.21 Newbridge Networks, Inc.
  • 9.22 Oracle Software Systems Ltd.
  • 9.23 SAP A.G.
  • 9.24 SUN Microsystems, Inc.
  • 9.25 Sybase
  • 9.26 Unicom Sparkice I-Com Ltd.
  • 9.27 Xylan Corporation

10.0 TELECOMMUNICATIONS CONTACT LIST

  • 10.1 Chinese Ministries and Commission
  • 10.2 Ministry of Information Industry
  • 10.3 China Telecom, Unicom, Ji Tong and Regional PTAs
  • 10.4 Key Equipment Manufacturers

Charts and Graphs also included

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