Broadband Workshop. Strategy, Technology Driving Forces - Development of Broadband in China
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1 BB Strategy, Technology Driving Forces -Development of Broadband in China Doc no: telwg29/ BB/06 Agenda item : Broadband Workshop Submitted by: China Strategy, Technology Driving Forces - Development of Broadband in China Contact: Dang Meimei dangmeimei@mail.ritt.com.cn APEC Telecommunications and Information Working Group 29th Meeting March 2004 Hong Kong, China Please note: This document is not an official APEC document until approved by the Telecommunications and Information Working Group. This version is a draft provided for discussion purposes only.
2 Strategy, Technology Driving Forces - Development of Broadband in China (At APEC TEL29 Broadband Workshop) Dang Meimei Institute of Communication Standards Research, CATR of MII March 23,2004 1
3 Outline! Universal access overview in China! Universal access objectives and approaches! Broadband access development! Strategy of Broadband! Summary 2
4 Universal access! Definition:Anyone can use telephone service in reasonable geographical regions.! In developing countries, universal access policies work to increase access to telecommunications services on a community or village level.! Universal access typically promote installation of public payphones or public call offices in rural villages. 3
5 Universal access status in China! By the end of year 2000, the telephone to villages percentage of the western 12 provinces is only percent.! By the end of year 2002, there are nearly 74,800 administrative villages which can t access telecommunication services, accounting for 10.8% of the total administrative villages.! Those unserved areas may locate far,or climate abominable, or low income. 4
6 The objectives of universal service in China! In China, the main objective of universal access is telephone to villages.! Short-term goal: at least 95 percent of villages should be provided with telephone services by the end of Telephone to villages Universal Access Universal Service 5
7 The objectives of universal service in China! Medium-term goal " Villages with definite number of residents, schools, hospitals and other organizations will be connected to the public telecom network by 2010.! Long-term goal " All organizations and families can be connected to the public telecom network by
8 Approaches to universal access! Universal access is undertaken by 6 backbone telecom operators in China.! The 31 provinces are assigned to 6 operators according to the income and revenue of the operators. Each operator is responsible for implementing the telephone to villages project in the appointed areas.! In the long term, the Universal Service Fund will be established % China Telecom China Netcom China Mobile China Unicom China RailCom China Satcom 9.31% 0.62%0.33% 0.33% 25.63% 7.93% 7
9 Telecom development in China! New statistics in Jan " Mobile service:! mobile subscribers reached to million, with a increase of 8.1 million during the first month. The penetration rate is 20.9%. " Fixed Line:! fixed line telephone subscribers reached to million, with a increase of 5.63 million during the first month;! Urban area: million lines;! Rural area: 93.1 million lines. " Broadband user: 11.8 million. " Dial-in user: million. " Leased-line user: 59 thousand. 8
10 Broadband access development! ADSL " For incumbent operators, such as China Telecom and China Netcom, they can fully use of the existing telephone lines to develop ADSL. " China is one of the most prosperous ADSL markets in the world. " By the end of 2003, there are almost 11 million ADSL subscribers in China. The number is expected to double by the end of
11 Broadband access development! Leased line " Support voice, video and data service and provide total solution to users. " 80:20 law! 80% revenue comes from 20% VIP subscribers;! The competition in this market is very severe and has great potential to develop in the coming next years. " Operators provide ATM, FR, DDN, or SDH-based 2Mb/s leased-line service to VIPs. 10
12 Broadband access development! LAN access " LAN access provide higher bit-rates and is more suitable for high density residential areas. " It provides 10Mb/s access for community resident and connect to upper IP network via 10/100M or 155M POS interface. " For FTTx+LAN access, users share 10M bandwidth. Therefore, if the installation rate can exceed 30%, the cost of each subscriber become lower. But the actual installation rate is no more than 10% in most areas. 11
13 Broadband access development! LAN access " For incumbent operators, they will still regard ADSL as the first selection, FTTx + LAN is only an alternative way to provide Internet access. " For fixed service providers lacking of resources, they acquire subscribers mainly through FTTx + LAN in the newly built middle grade residential areas. " Networks with FTTx + LAN expanded rapidly in the past two years. To guarantee user s service quality,mii regulated FTTx +LAN service as one of the experimental management services. Experiments have been executed from 2001 to
14 Broadband access development! Fixed Wireless Access " FWA is more attractive to CLECs that don t own wired pipe lines. " With the advantage of fast deployment, easy installation,high scalability, FWA is competitive with wired technologies. " Service providers deploy FWA network targeting SME, SOHO users. 13
15 Broadband access development! FWA license " In 2001, MII started the program in five experimental cities of Nanjing, Xiamen, Qingdao, Wuhan and Chongqing to distribute the rights to use 3.5GHz fixed wireless access system through public bidding. " It s a try towards market economy and frequency resource optimum. " Finally, backbone telecom operators and pure WISPs successfully bid the license in different cities. " In 2002,MII selected another 32 cities to allow public bidding for 3.5GHz frequency. Now, the third round bidding is ongoing. 14
16 Feature of broadband development! Different access technologies are suitable for different types of telecom operators and telecom networks. None of the access technology is applicable to any cases.! ADSL access is one of the most fast increased access technology,while LAN access grew not too fast because of the lower installation rate.! Leased line access mainly target enterprise users and keep increase.! Broadband wireless access increased because more license are given to operators.! Service providers also deliver broadband services via PON, HFC, WLAN, etc.. But those networks are not widely deployed. 15
17 Strategy of broadband development! Regulatory authorities pushes the opening of access network market and the regulatory policies are in conformity with the actual conditions in China.! In order to make the optimum use of the frequency, regulatory body has tried public bidding for fixed wireless.! The operator can use different access technologies to provide broadband access to users. Regulatory body strengthens the supervision of those broadband telecom operators to guarantee the service quality. 16
18 Summary! Universal access has been rolled out and is ongoing in China to provide basic communications services for underserved & unserved areas.! MII has created a market environment that will facilitate competitions and development.! Broadband technologies develop fast thanks to the favorable policy environment. 17
19 Thank you! 18
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