Tele­com in­dus­try lifts in­ter­na­tional pro­file

China Daily (Canada) - - ADVERTISEMENT - By GAO YUAN gaoyuan@chi­nadaily.com.cn

China’s ever-ex­pand­ing telecom­mu­ni­ca­tions in­dus­try is bring­ing the world closer to­gether, in­dus­try in­sid­ers said ahead of the Asia-Pa­cific Eco­nomic Co­op­er­a­tion meet­ing in Beijing.

And the surg­ing adop­tion of fourth-gen­er­a­tion tele­com net­works is set to boost tele­com-re­lated con­sump­tion in the coun­try, such as the sale of smart­phones.

“As the three ma­jor tele­com op­er­a­tors of China ob­tain TD-LTEli­censes, their strength will be greatly en­hanced and the in­dus­try will be­come more ma­ture,” said Ja­son Shen, a se­nior mar­ket an­a­lyst at global mar­ket in­tel­li­gence firm IDC China’s Telecom­mu­ni­ca­tions Re­search Group.

China’s Big Three tele­com car­ri­ers — China Tele­com Corp Ltd, China United Net­work Com­mu­ni­ca­tions Group Co Ltd, or China Unicom, and China Mo­bile Com­mu­ni­ca­tions Corp Ltd— have all been work­ing to pro­mote their 4G ser­vices to Chi­nese cus­tomers since the spring, although many small ci­ties— es­pe­cially in Western China — still have no or poor 4G sig­nal cov­er­age.

A re­port from IDC has es­ti­mated that with more smart­phones sold in China equipped with 4G ca­pa­bil­i­ties, the pen­e­tra­tion rate of this lat­est tele­com tech­nol­ogy is set to surge in com­ing years.

Chi­nese tele­com equip­ment mak­ers are also mak­ing strong moves over­seas. The lat­est ex­am­ple was re­vealed in Septem­ber when Cam­bo­dian telecom­mu­ni­ca­tions company EMAXX an­nounced a part­ner­ship with Chi­nese gi­ant Huawei Tech­nolo­gies Co Ltd on 4G net­work con­struc­tion.

In mid-Au­gust, two sub­sidiaries of Chi­naMo­bile and China Tele­com, the coun­try’s top es­ti­mated Chi­nese4Gusers by

the end of this year tele­com car­ri­ers, joined a Google Inc-led project to build a trans-Pa­cific sub­ma­rine fiber op­tic cable sys­tem con­nect­ing Asia and North Amer­ica. The $300 mil­lion project, named Faster, will sig­nif­i­cantly lift In­ter­net con­nec­tion speed in China and other Asian na­tions after it goes live in mid-2016, ac­cord­ing to a six-company con­sor­tium fund­ing the con­struc­tion work.

“With Faster, we will be able to cater to our cus­tomers’ in­creas­ing de­mand for band­width,” said a state­ment from China Mo­bile’s Hong Kon­garm.

“The project is set to con­sol­i­date China Mo­bile’s ad­van­tages in the data ser­vice seg­ment.”

China’s mo­bile In­ter­net user base has now grown to 500 mil­lion and is ac­cel­er­at­ing at high dou­ble-digit pace be­cause of 4G ex­pan­sion, ac­cord­ing to the China In­ter­net Net­work In­for­ma­tion Cen­ter. The Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy has es­ti­mated that China will have 30 mil­lion 4Gusers by theendof year, just a year after it was of­fi­cially launched.

The gov­ern­ment’s Broad­band China Project is aimed squarely at ex­tend­ing broad­band cov­er­age in the en­tire coun­try. Kitty Fok, man­ag­ing di­rec­tor of IDC China, said In­ter­net con­nec­tiv­ity is a pri­or­ity within the gov­ern­ment’s next five-year plan.

“There will be a sig­nif­i­cant in­crease in wire­less data us­age with more than 1 bil­lion smart­phone users by the end of 2017. At the same time a num­ber of smart city projects are go­ing to be the fo­cus,” said Fok.

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