Viewpoint

1. The increase of communications investment is mainly due to the competition-cooperation pattern in the communications operating market. In 2000, China’s communications investment set up the highest record in its history, which reached approximately 220 billion-Yuan. Investment in telecom equipment is more than 130 billion Yuan, 30% higher than 1999. 

2. Data and mobile communication became two highlights of 2000. Their product scale keep on expanding, among which, data communication equipment holds a market of 12 billion Yuan, and its share among communication investment is rising continuously. IP phone is enjoying a swift development, and the demand for IP phone equipment is increasing fast.  The US based Clarent and Cisco and China’s Huawei are becoming the main suppliers of China’s IP phone system.

3. In 2001, broadband business market will become one of the competitive focuses. Broadband accessing will draw special attentions from operators, equipment suppliers, system integrators as well as service providers.  

4. Competitive manufactures, based on key technologies, will take a diversified, sustainable way of development. Through capital operation, they will merge or purchase enterprises with good potential and cooperate with powerful partners, restructuring their products and integrating the marketing.

5. Domestic communication industries, by strengthening their skills in research and development, enriching product system and enhancing the systems’ processing abilities, will provide for operators with systematic solutions. 

I. An overview of the Developmental Environment for the Telecommunication Products Market in 2000

1. Economic Environment

a. International Economic Environment

b. Domestic Economic Environment

2. Industrial Environment 

a. International Communications Industry Environment

b. Domestic Communications Industry Environment

3. Technology Situation

a. International Technology Situation

b. Domestic Technology Situation

4. Policy and Regulation

5. Financial Environment

II、The Situation of Telecommunication Products Market in 2000

1. Overview

a. Sustained, stable and rapid development of telecom operating market

b. A revival of the high-speed development of telecom products market

2. Overall Characteristics of the Market

3. The Volume and Structure of China’s Telecom Products Market in 2000

a. The volume and  changes of 2000’s Telecom Products Market

b. Product structure and its changes  

4. An Overview of the Supply in China’s Telecom Products Market

5. Customer Structure and Investment in China’s Telecommunication Products Market in 2000

a. Main Customers

b. Investment Comparison in 2000

c. Customer structure in 2000’s Telecom Products Market

6. Status Quo of the Development of Office Program-Controlled Switch Market in 2000

a. The scale and the growth of program-controlled switch market

b. Analysis on manufacture structure

c. Customer Structure

d. Profit analysis

7. Current Situation of the Data Traffic Product Market in 2000

a. Market scale and its growth

b. Customer structure in data traffic product market

8. Current Situation of the Optic Fiber and Optical Cable Market in 2000

a. Market Overview

b. Market scale in 2000

c. Customer structure in Optic Fiber and Optical Cable Products Market

d. Manufacture structure

e. Production situation of the manufactures

9. Current Situation of Optical Transmission Market in 2000

a. Market scale and its growth

b. Customer structure in optical transmission system equipment market

c. High-speed development of China’s optical network construction

d. Telecom Operators show their special skills

e. Competitions in China’s optical transmission market tends to intensify

10. Current Situation of Mobile Communication Market in 2000

a. Market scale and its growth

b. Customer structure in mobile communication system market

c. Manufacture structure

Chapter Highlights

In this chapter, we present a study on various aspects of China’s telecommunication products market, including an analysis on telecom operators’ investment and research on the telecom product market, such as program-controlled switches, data communication, mobile communication, optical transmission, optic fibers and optical cables etc. According to the research, the overall world economic situation in 2000 appeared optimistic and its growth rate apparently quickened. In China, the national economy experienced further development, and the telecommunication sector, as a sun-rising industry, will become one of the important motivating forces to the development of China’s national economy. In 2000, China communications industry kept a sustained, swift and stable development, and there appeared a competition-cooperation pattern within the operating market. The overall strength of China’s public communication network has obviously been reinforced. Both of its fixed phone network and mobile communication network ranked the second in the world, next to America. The swift development of the communications operation business has been promoting a further growth of China’s communications manufacturing industry, and meanwhile, it makes China’s telecom products market one of the most rapid developing markets. China’s sustained large-scale investment in the communications industry can be seen as a major driving force to the scale-development of its telecom products market.

III. The Competition in Telecom Product Market 2000

1. Competition on Technique and Standard

a. Standard competition is the highest level competition

b. Foreign manufactures hold their own markets by using different standards

c. Domestic communication industries enhance their technical researches

d. Foreign manufactures develop customized technique and products to fit China’s market   

2. Competition on Products

a. Market segmentation by products

b. Analysis on the advantages and disadvantages of domestic communi-cations products

3. Brand Competition

4. Competition of Marketing Strategies

5. Competition of Channels and Sales System

Chapter Highlights

In this chapter, we present our research on competition strategies used by various telecom manufacturers. In essence, market competition is determined by the competition on the technique and standard of the product and ultimately determined by competition on standard. Brand plays an important role in the competition. The complete sales system and channel is a key factor for a manufacturer to win its competition. Meanwhile, one of the sales strategies used by manufacturers in 2000 is to develop value-added and extended new product systems based on existing systems running successfully on the network. Foreign manufacturers mostly adopt the strategy of cooperating with other powerful contemporaries in an attempt to obtain a maximum share of the market. Through the market channels and advantages of the two parties, they try to enhance their product system and sales advantage, providing the operators with integrated network solutions. 

IV. Forecast of Telecommunication Products Market 2001-2003

1. The Development Trend of Telecom Products Market

2. The Main Trend of Market Competition

3. The Emergence of Various New Technology and New Business

4. Main Factors Affecting Market Development

a. The government guidelines for information industry

b. China’s macro economic situation

c. WTO

d. Deepened reform and opening-up in telecommunication sector

5. The Developmental Goals and Investment Scale of Telecom Sector in 2001

6. The Developmental Orientation of National Communication Manufacture Industry

7. The State’s Supporting Policies for Concerned Industries

8. Forecast of China’s Telecom Products Market in 2001-2003

a. Forecast of Market size

b. Forecast of Demands for Different Telecom Products

V. Conclusion and Suggestion

1. Conclusion

2. Suggestions

a. Suggestions on development strategies in technology and product

b. Suggestions on market development strategies

c. Suggestions on sustainable development strategies for telecom enterprises

Chapter Highlights

In this chapter, we mainly discuss the effecting factors in the telecom products market.  Along with the development trend of globalization and the popularization of online networks, together with the development and breakthrough in the field of micro electronic technology, communication technology and computer technology, the world telecom industry is experiencing a period of swift development. Technologies in optic fiber communication, mobile communication, satellite communication and data communication will see a high-speed development and will become the highlights and backbones in the area of communication technology in the 21^st century. In 2001, the investment of communication operating business in fixed assets will continue on an ever-increasing momentum. Many Chinese telecom operators, such as China Telecom, Netcom and Jitong are still actively preparing for being listed on stock market, while the listed operators such as China Unicom and China Mobile will enlarge their listed scale. These moves will broaden the financing channel for China’s telecom operators and will ensure financially the network constructions of telecom operators. If one or several operators could be listed successfully, it would expand the financing scale for telecom operators and might stimulate the operators to enlarge their network construction scale or increase their investments in network. Some dedicated networks, which are actively undertaking their institutional reform and network reconstruction, might obtain the licenses for operating part of basic telecom business, which will expand the investment scale in network construction. After China’s accession into the WTO, foreign capitals (including those from overseas and Hong Kong) will be invested into China’s telecom operating market. In this case, operators of joint ventures or joint businesses will newly appear in the market. The introduction of foreign capital will increase the demand for network infrastructure facilities and will stimulate the expansion of investment scale. Some domestic capital, including local governmental capital and non-state-owned capital, will also be poured into the communication operating market. These investors generally will build and operate local networks or provide broadband information services, which will also stimulate the expansion of investment scale in telecom products. 

Data

Figure 1      Investment Scale of China’s Telecom Operators in 2000

Unit:100 million yuan

Data Source：CCID

Due to the development of mobile communication, the investment scale of China Mobile and China Unicom keep on increasing.

Figure 2       Development of China’s Telecom Product Market Scale

Unit：100 million yuan

Data Source：CCID

In year 2000, the scale of China’s telecom product market volume reached 130 billion Yuan, 30% higher than 1999.