Viewpoint

1. There will be a great diversity of investment subjects in the data communication sector.

2. Broadband MAN construction will be a spectacle in China communication market in 2000, broadband service will become the focus of their competition.

3. There is a substantial increase in the size of the data communication market, it reaches 120 hundred million Yuan in 2000, representing 55.8% higher than 1999.

4. The rapid increase of broadband access market will stimulate the growth of the data communication market in 2001 to outpace that of 2000.

I. Environmental analysis of the telecommunication industry 2000

1.     An overview of the telecommunication operation market in 2000

2.     The development of telecommunication service

a. China Telecom has the second largest fixed-line network in the world

b. China Mobile has the second largest communication network in the world

c. The rapid development of data communication

Chapter Highlights

The chapter deals with the developmental environment of the telecom industry in 2000. Research shows that China has maintained a stable growth rate in the telecom industry in 2000, and the development of data communication is gaining momentum in particular. 

II. Overall Condition of Telecom operators 2000

1. China Telecom

a. The scale of network infrastructure

b. Investment and construction

c. Business operations and the user base

2. China Mobile

a. The scale of network infrastructure

b. Business operations and the user base

3. China Unicom

a. The scale of network infrastructure

b. Business operations and the user base

4. China Network Communications Corporation

a. The scale of network infrastructure

b. Business Development

5. China Jitong Communications Corporations

a. The scale of network infrastructure

b. Business Development

Chapter Highlights

This chapter reviews the network construction in 2000 by every operator and offers analytical insights into their business capabilities and user bases. According to the study, Chinese telecom operators have reinforced their efforts to build the related networks and achieved rapid business development in order to sharpen the competitive edge.

III. Analysis on the investment flow in data communication market 2000

1. Sustained growth in the scale of investment in the data communication sector

2. Sustained growth in the proportion of investment in the data communication sector

3. Persistent changes in the regional structure of investment in the data communication sector

4. Great diversity of investment subjects in the data communication sector

5. Analysis of investment flow in data communication service by major operators

a. China Telecom

b. China Unicom

c. Jitong Communications

d. Volume projection of the investments of CNC in data communication

e. China Mobile

Chapter Highlights

This section observes the characteristics of the data communication market and sheds light on the developments of data communications by major operators. The study reveals that the focus of telecom services in China is shifting from voice traffic to data and Internet services, which is the same as the global trend. Voice traffic makes steady progress while data service grows quickly; data and Internet service are becoming the new growth points in the portfolio of telecom services. The increasing demands for data and Internet services have stimulated the passions of investors; the investments of Chinese telecom operators in data communication sector have kept a sustained growth rate in recent years. In 2000, the capital investments in the data communication equipment market have amounted to 120 hundred million Yuan.

IV. Analysis of the data communication equipment market

1. General situation of the data communication equipment market 2000

2. Characteristics of the data communication equipment market

a. The rapid development of high-end data communication equipment market

b. An incessant increase of equipment bandwidth

c. The emerging market of network operation has become a hot spot in 2000

d. Intensified competition

3. Distribution of data communication equipment market

a. DDN equipment market

b. CHINAPAC equipment market

c. Distribution of backbone ATM switchboard market

d. The gigabyte Ethernet switchboard market

e. The gigabyte Router market

4. Competition in the data communication equipment market

a. Foreign products are dominant in the market

b. Domestic manufacturers pierce into the market and achieve a rapid development

c. Changes in the shares of different segments of data communication equipment market

Chapter Highlights

This section covers the data communication market across all segments. With the substantial increase in capital investment in the data communication sector, operators have maintained a steady growth. With the development of government online projects, enterprise informatization, household Internet access and e-commerce, operators, quasi-operators and broadband ASPs have played an active role in the data and network equipment market. Thereinto, the demands for IP phone system are growing fast, Cisco, Clarent and Huawei have become the major providers of IP phone facility in China. The progressive market expansion, the reinforced muscle of foreign companies and the fast development of domestic enterprises will result in the intensified competition in the data communication and network equipment market.

V. The development of data communication service

1. Development of Public data communication service

2. Development of data communications service

a. Development and outlook of packet switching (X.25) service

b. Development and outlook of DDN service

c. Development and outlook of frame relay and ATM broadband service

d. Development and outlook of Internet applications

VI. The development trends of the data communication market 2001-2003

1. Technical innovations will power the rapid development of the data communicating market 

2. The open policy, competitions and mergers in the telecom operation industry will exert an influence on the growth of data communication market

3. Soaring business demands are the driving forces for the development of data communication service

4. Developmental strategies of operators are the direct factor in the progress of data communications

5. The development of national R&D strength is the major factor to influence the market

6. Government policy and regulation will govern and regulate the development of the telecom industry

Chapter Highlights

This chapter provides a detailed analysis of the development trends of the data communication market. Telecom networks are transforming from the conventional narrowband circuit switching modes to broadband packet switching transmission.  IP-based data communication will grow rapidly in the next few years. Just like the mobile communication, data communication will also become an important growth point in the world communications market. In order to satisfy people’s demands to acquire information anywhere and anytime, the convergence of data and mobile phone communication is an important direction in the future development of data communication technology. The year of 2001 will become an important milestone in China’s telecommunication market. The promulgation of Telecom Regulations, the further opening of the telecom market, the imminent WTO access combine to put China’s telecom market in the focus of global attentions and investment flow. Appearance of new operators, growth of broadband service and the construction of broadband network based on data communication will give a boost to the rapid development of China’s data communication market.

Data

Figure 1  The scale of investment in data communication 1997-2000

Unit:  0.1 billion

Data Source：CCID

The changes in the scale of investments in data communication are shown in Figure 1.

Figure 2 The proportions of investments in different telecom sectors to total investment 1996-2000

Data Source：CCID

Investment in data communication accounts for 6.9% of the total in 2000, it is expected to rise to 8% in 2001, the market size will register 200 hundred million Yuan. Changes in the investment structure of telecom market are shown in Figure 2.