Chinese Telcoms Invest in 2008 Olympics

AUSTIN, Texas, June 10 -- Beijing Communication Corp. (BCC) will invest $6.64 billion (US) in the next five years to extend and upgrade its network, according to a report, "Beijing's 2008 Olympics -- Business Opportunities in Modernizing Beijing's Telecom Networks," from Communications Consulting Associates (CCA), a market research firm based in Austin.

The investment, which represents approximately $0.9 billion per year, will enable BCC to add capacity for an additional 3.4 million fixed network voice lines; replace linear optical network connections with rings and upgrade existing SDH rings to higher bit rates; develop IP-based video transport networking capable of supporting HDTV; introduce mobile service in competition with China Mobile and China Unicom; implement WDM and new technologies, such as RPR at the "edges" of the metropolitan network; and extend DSL and other broadband access technologies to a higher percentage of Beijing's 1.7 million Internet users.

According to CCA, Beijing Mobile and other industry participants will also upgrade their networks, not only to support traffic from the Olympic games, but also for greater market penetration, new or improved services and greater international connectivity. Beijing Mobile, for example, plans to roll out 3G networks that will support video, sports statistics, smart card functions and other services.

CCA said these ambitious plans for telecom investment follow several changes in China's telecom industry. "Last year, for example, China's Ministry of Information and Industry split the nationwide monopoly service provider into two large regional groups," the company said. "China's accession to the World Trade Organization in 2002 changed the competitive landscape for telecom equipment and service companies. So at the same they are adjusting to the telecom industry's new regulatory and competitive structure, China's major operators will undertake substantial upgrades to prepare for the 2008 Olympics."

The report describes changes being planned, partnerships being formed, the workings of government organizations and telecom companies involved and expenditures on information infrastructure and communications networks that are planned for the Beijing region. It includes analyses of telecom and "informatization" activities, Olympic infrastructure details and business practices in Beijing and China.

CCA is working with KMI Research on the report's sales and order fulfillment. For more information, visit: www.kmicorp.com/fiberoptics_market_studies/cca.htm