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CCID Consulting: Three Tendencies of China's Telecommunications Network in the Future

2007-10-24 18:14 1159


BEIJING, Oct. 24 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the three tendencies of China’s telecommunications network in the future.

The transformation of China Telecom is experiencing mutual amalgamation and promotion both in business and in network. The transformation of business will definitely depend on the support from the network of the next generation and the transformation of the network is the basis for business renovation. Current traditional PSTN can hardly fulfill the request for business renovation due to obstacles like high costs and long cycles for new businesses. It also fails to provide the integrated business of broadband, multi-media and digital voice. Moreover, most traditional operators run different business networks at the same time to operate different business in different networks and platforms, which leads to a high cost in terms of business development and operation, thus the transformation of business asks for the transformation of the networks.

China Telecom has now set a strategic target for its network transformation that is led by business motivation and accelerated by advancing technologies, and they have also planned to expedite the transformation to the next generation networks that have integrated functions, flat structures, concentrated controls and an open & flexible business model to realize the requirements of both the network and business with complete and efficient support through the integrated business of all broad and narrow bands, while also cutting down on service and operational costs along with differentiated network protection levels and maintenance for users.

As a result, there will be three major tendencies for China Telecom:

1. Intelligentization of PSTN network

The coming years will be the period that China Telecom focuses on the construction of network intelligentization as it has lower costs and shorter turnaround times to provide new businesses with intelligentization. They have conducted trials of fixed network intelligentization in Fujian, Jiangsu, Shanghai and Guangdong, and by the end of 2007, the fixed network intelligentization on the whole network will be finished which will truly help realize the centralized management on general fixed and wireless phones, numbers of local call users and business attribution and help form a unified user management centre step by step so as to lay a solid foundation for user identification, function order and integrated business across networks.

2. Faster arrangement in NGN network and set up a unitive open business platform

China Telecom launched the NGN project in 2005 and domestic operators will quicken their procession in NGN arrangement. China Telecom “Liang Bei” Area stopped setting up new switchers with limit on expenditure of existing switchers; and 21 provinces in the south stopped setting up new long-distance and local collective switchers as well as the expenditures of existing long-distance switchers; the whole net will build up a flat soft exchanging structure and completely stop building new switchers in 2007. A unitive open business platform will be initially set up in the group and in provinces within 3 years to fulfill the flexible binding and platform sharing of all value-added businesses including voice and multi-media. Now that China Telecom has accepted the introduction of NGN in long-distance switchers and the reform of NGN in long-distance switchers will be processed during 2005 to 2008 (except for some TDM in provincial long-distance in 2005).

China Telecom is testing the transformation of NGN at a collection station in Shenzhen, which will be soon introduced to NGN upon the confirmation of the development guidelines of China Telecom.

Regarding network access, China Telecom regards the introduction of NGN to the end office at this time to be immature with large risks. The development to the end office will move onward very slowly. Furthermore, the limited IP network has also hindered speedier progress. However, it is believed that, with the completion of the development of long-distance and collection station will help accelerate the introduction of NGN to the end office.

3. Optimize IP City Net and Improve Broadband Support

To boost the construction of network cables in commercial buildings and in medium/high-level communities, the bandwidth for big clients, VIPs and major development areas should meet the requirement for high-quality video services; and should stop building long-distance trunk cables and big logarithms (>800lines/pair or 1km). They should also provide wider bandwidth with ADSL2+ and VDSL2. The portion of investment to cable access dropped to about 50% in 2007 from 75% in 2004. There is also a need to restructure city IP networks so they can be comprehensive with clear structures, complete functions, centralized controls and so that they could fulfill business requests for all bandwidths with differentiated service capabilities so as to provide management and service guarantees for all access and business. These should include: stricter control of the criterion for size and construction of civil engineering, pipe construction; give more emphasis to access stations from the authorization level and improve the utility of machine rooms; make full use of existing pipe resources; get more capacity according to “cable as priority with copper follows behind” for those areas that need to expand; cut down the investment in civil engineering and pipe works with an annual decrease of 10% till 2007. Meanwhile, improve the capacity, intelligentization and efficiency of transferring net to support the fast development of businesses such as IP. Project and construction automatic switching Optimal Network trunk structure for long-distance business according to the maturity of technology with automatic optimal network in some big local nets with multi-service transferring points/RPR access to high-end business such as big users, firms and soft exchange to ensure the service quality and efficiency.

About CCID Consulting

CCID Consulting Co., Ltd (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific area and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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