China's Telecom Restructuring and
Wireless City Drive WLAN Growth September 23,
China's WLAN market developed rapidly in 1H08
under favorable governmental policies of telecom restructuring and "wireless
city" initiatives. 1H08 WLAN revenues reached 1.38 billion Yuan, up 31.4% YOY.
By the end of June 2008, China's wireless hotspots numbered 10,000 covering
110 cities. Over 30 cities have incorporated "wireless city" in their
strategic infrastructure planning. CCID Consulting projects WLAN revenues to
reach 2.8 billion Yuan by the end of 2008.
consulting, July 2008
WLAN activity surged after 1H08 telecom restructuring
Prior to telecom restructuring, many telecom operators
were already preparing for WLAN. However, China Telecom, relative to other
operators, was more optimistic and aggressive towards WLAN development.
China Mobile also increased its WLAN deployments, and in particular around
the Beijing Olympic venues.
China Telecom has already invested heavily in its WLAN
preliminary layout, prototyping, scaling and business development. The
company had already gone through equipment bidding, testing, and vendor
selection. Upon the telecom restructuring announcement, China Telecom
aggressively set up WLAN sites, executing carefully considered investments
Wireless City construction drove rapid WLAN
China's national urban informatization policies drove
wireless city development, which were further supported by telecom operators
and WLAN equipment vendors. As a result, wireless cities developed rapidly,
which in turn drove growth in WLAN spending. While China's three major
telecom operators invested heavily in WLAN, so had non-mainstream providers
such Chinacomm, which had invested heavily in Beijing. Equipment providers
such as H3C, Cisco, and Nortel moved quickly to exert their influences to
operators and businesses.
Vendor competition heats up; H3C is in the lead.
Three of H3C's product types made it onto China Telecom's
master procurement list, thereby making H3C the largest WLAN product and
solutions provider for China Telecom, and a leader in the market. Vendors
such as D-Link, TP-LINK and NETGEAR made less of an impact with operators,
but focused more directly in China's consumer markets.
1H08 China WLAN Equipment Vendor Shipment Share
consulting, July 2008
2H08 DEVELOPMENTS TO WATCH FOR
Telecom operator WLAN initiatives will
encourage users and drive WLAN terminal market.
However, as with all China's restructured
operators, the focus will be on providing comprehensive telecom services and
profitability. China Telecom is actively studying overseas best practices to
explore effective profit models, while China Netcom is actively planning to
deploy WLAN services and products in 2009.
Expect less restrictive policies
towards Wi-Fi mobile phones.
CCID Consulting sees the following market
momentum factors which point to less restrictive WI-FI mobile phone
The large-scale WLAN infrastructure
constructions in the Tier-1 cities of Beijing, Shanghai, and Guangzhou
provide a good foundation for wireless networks.
The Chinese people's lifestyle pace has
only gotten faster, and their use of the mobile phone is becoming more and
more integral in managing their lives. Mobile phones with online
transaction and Wi-Fi capabilities, for example, can help.
Chinese domestic vendors such as Huawei
and ZTE have the independent capability to develop and drive Wi-Fi.
For more information
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.