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Report: Telecom re-org boosts China WLAN market

Posted: 06 Oct 2008 ?? ?Print Version ?Bookmark and Share

Keywords:China WLAN market? reorganization telecom? wireless network?

China's WLAN market underwent rapidly development in 1H 08 under China's policy of telecom reorganization and wireless city, according to a new report from CCID Consulting.

The report, entitled "Review and Trend Analysis on China's WLAN Market in 2008H1," revealed that sales revenue of China's WLAN market in 1H 08 reached 1.38 billion yuan ($201 million), up 31.4 percent y-on-y. By the end of June, China's hotspots reached 10,000, covering 110 cities. More than 30 cities have incorporated wireless cities in their strategic infrastructure planning.

CCID Consulting forecasts that with the surge of WLAN operation and deployment in 2H 08 China's WLAN market will reach 2.8 billion Yuan ($409 million) by the end of the year.

1H developments
Demand for WLAN surged following the telecom reorganization scheme released in 1H 08. Before the reorganization, many carriers were already preparing WLAN network. China Telecom has invested heavily in preliminary layout, demonstration and scheme draft of WLAN network scale, coverage area and business development. China Telecom went through equipment bidding, equipment testing and manufacturers' determination and then carried out site selection so as to jumpstart its WLAN deployment plan. After the release of telecom reorganization, China Telecom set up sites, made active and cautious purchases and promoted WLAN deployment vigorously. Meanwhile, China Mobile expanded WLAN deployment and actively deployed WLAN equipment around Olympic venues.

With the support of national policy and the joint effort of carriers and WLAN manufacturers, wireless cities developed rapidly in 1H 08, which in turn drove the WLAN market upwards. Major carriers invested large funds to carry through WLAN deployment while non-mainstream carrier such as CHINACOMM made large investment in Beijing. H3C, Cisco, Nortel actively seized the opportunity to exert force in carrier and industrial market.

Future trends
After the telecom reorganization, the challenge is to master complete services to establish good operation. In order to remedy defects in the wireless network, China Telecom studies the success of foreign examples and explores effective profit modes. China Netcom plans to release WLAN services and products, which will be released in 2009.

While using mobile phone with Wi-Fi in China is currently limited several factors show that the policy is likely to loosen up. With large-scale construction of WLAN infrastructure, especially in Beijing, Shanghai and Guangzhou, their distance with wireless city is smaller, which provide good network foundation and condition for wireless network.

People's life rhythm has also become faster and using mobile phones to deal with many things is becoming a main trend. People could go online, mobile stock, electronic transaction with Wi-Fi function. Lastly, China's domestic manufacturers, such as Huawei and ZTE have the strength to carry through Wi-Fi independent development.

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