omniture

CCID Consulting: China’s Telecom Reorganization and Wireless City Process Drive Rapid Development of WLAN Market

2008-09-23 16:39 1831

BEIJING, Sept. 23 /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 the report, “Review and Trend Analysis on China’s WLAN Market in 2008H1”.

China’s WLAN market developed rapidly in 2008H1 under China’s policy of telecom reorganization and wireless city. CCID Consulting’s data shows that the sales revenue of China’s WLAN market in 2008H1 reached 1.38 billion Yuan, up 31.4% year-on-year. By the end of June, 2008, 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 in 2008H2, with various WLAN operation modes’ releases and carriers’ purchase and deployment surge, by the end of 2008, China’s WLAN market will reach 2.8 billion Yuan.

Figure 1: Sales Revenue and Growth Rate of WLAN Market, 2006H1-2008H1

http://www.ccidconsulting.com/upload/13823.jpg

Source: CCID Consulting, July 2008

WLAN Market’s Characteristics in 2008H1

Reorganization Process Accelerates Carriers Demand

Demand for WLAN surged following the telecom reorganization scheme was released in 2008H1. Before the reorganization, many carriers were already preparing WLAN network. China Telecom have an optimistic view of WLAN network, compared with other carriers, thus has obvious advantage. China Telecom has invested heavily in preliminary layout, demonstration and scheme draft of WLAN network scale, coverage area and business development; it went through equipment bidding, equipment testing and manufacturers’ determination; and then carried out site selection so as to gestate WLAN leading deployment plan. After the release of telecom reorganization, China Telecom acted shifty to set up sites, made active and cautious purchases, and promoted WLAN deployment vigorously. In 2008HI, China Mobile enlarged WLAN deployment and actively deployed WLAN equipment around Olympic venues.

Wireless City Construction Drives Rapid Development of WLAN Market

Urban informatization leads to the development of wireless cities that comply with the nationwide trend. In 2008H1, under the support of national policy, and the joint effort of carriers and WLAN manufacturers, wireless cities developed rapidly, which in turn drove the WLAN market upwards. Major carriers invest large funds to carry through WLAN deployment; non-mainstream carrier CHINACOMM made large investment in Beijing; H3C, Cisco, Nortel actively seize the opportunity to exert force in carrier and industrial market.

Brand Competition Heating up

With three kinds of H3C product entering China Telecom’s WLAN centralized purchase list, H3C becomes the biggest WLAN products and solutions provider for China Telecom, and H3C firmly occupies China’s WLAN market’s leading position. D-link, TP-link and Netgear did not take much benefit in the carrier market, as they expanded competition to the family user market.

Figure 2: China’s WLAN Equipment Manufacturers’ Shares in 2008H1

http://www.ccidconsulting.com/upload/13824.jpg

Source: CCID Consulting, July 2008

WLAN Market’s Development Trend in 2008H2

Carriers Actively Explores WLAN Operation Mode, Product Infiltration Speed Accelerates

After the telecom reorganization, mastering complete services rend and good operation mode are the successful factors. In order to remedy defects in the wireless network, China Telecom actively studies the success of foreign examples, and explores effective profit modes. China Netcom actively plans to release WLAN services and products, which will be released in 2009. Carriers WLAN operation modes’ release will arouse users’ demands for WLAN, which will drive the deployment of WLAN terminal market. CCID Consulting forecasts that China’s WLAN market will reach 2.8 billion Yuan in 2008.

WIFI Mobile Phones Have Broad Prospect, Policy Loose Can be Expected Soon

Currently, using mobile phone with Wi-Fi in China is inhibitive, but the following factors show that the policy is likely to loosen up:

Firstly, 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.

Secondly, people’s life rhythm becomes faster. The aim of using mobile phone to deal with many things is becoming a main trend. People could go online, mobile stock, electronic transaction with Wi-Fi function.

Thirdly, China’s domestic manufacturers, such as Huawei and ZTE have the strength to carry through Wi-Fi independent development.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

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.
Related Stocks:
HongKong:8235
collection