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Netbook prices starting $50 less at $200 via Intel MeeGo strategy
Preliminary reading:
– Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011 with comprehensive update on Aug 2, 2011] which is showing IHS iSuppli’s recent mobile broadband device forecast with constituents of Apple’s dominant position in the media tablet space as well as serious technical and market problems with the original version of Honeycomb up to now
>>> please note after reading this that for ASUStek the below $200 market trial with MeeGo netbooks is much-much more than simply to keep the netbook category alive
– Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2011]
Asus will ready some other experimental products in the coming weeks, such as the X101 model of its popular Eee PC netbooks. The device has attracted attention for its low price ($199) and use of the MeeGo operating system, a relatively new, open source technology project backed by Intel (and, formerly, Nokia). Shih said the X101 will also be available in Microsoft Windows and Google Android versions. Asus decided to offer a MeeGo flavor of the device so consumers could choose from a range of operating systems, he added.
Asus: Super-Thin ‘Ultrabooks’ Can Capture 50% Of Notebook Market [July 29, 2011]
Intel: MeeGo exists because Microsoft let us down [April 20, 2011]
Interview: Even Windows 7 doesn’t do enough for Atom, says chip giant
Despite saying that “Intel is very supportive of Windows,” James Reinders, Chief Evangelist of Software Tools at Intel, criticises Microsoft roundly in an interview with TechRadar.
Why? He says it’s taken too long for the software giant to make Windows run well on Atom and to make a success of Intel’s UMPC and MID ideas.
…
“Microsoft hasn’t been quite as aggressive as we might have hoped at supporting Atom, especially in the embedded space and that’s why we came up with our platform Moblin – which is now MeeGo. Intel is all about platform choice, choice of operating system and so on, and we believe in the opportunity of embedded very strongly.”
“Some of their Windows offerings are great now, but Moblin started a number of years ago when we didn’t see Windows in that space at all. We’re thrilled to death to see user mode scheduling in Windows 7 but the progress of Windows 7 still limited – it doesn’t go all the places we think Atom will go.”
Those places include smartphones, MIDs, tablets and in-car systems, for a start, and Android – or the version of Mac OS in the iPad – just isn’t enough in his view. “We feel people want an operating system that is more powerful on these devices.
What web browsers does MeeGo come with? [Dec 24, 2010]
There are two MeeGo images, one comes with Google Chrome that requires you to agree to a EULA. The other image comes with Chromium. Both images also come with Mozilla Firefox.
Chromebooks Are Doomed to Fail [PCWorld, May 15, 2011]
The Chromebook is not any lighter or smaller than a standard netbook. It boots up faster, and has longer battery life than a full notebook, but so do most netbooks. The difference between the Chromebook and a standard netbook is that with a netbook you can do everything you can do with a Chromebook, and you can still do all of things you normally do with a PC.
Essentially, buying a Chromebook is like buying a television that is only capable of delivering some of the channels, even though there are televisions available for the same price that can give you all of the channels. The Chromebooks are going to retail from $350 to $500. Funny thing about that–at BestBuy.com there are 15 netbooks listed that range from $230 to $530.
Early MeeGo devices supporting a compute continuum [July 1, 2011]
… MeeGo has a full featured PC OS at its core, with a series of device UI builds. Device manufacturers take these builds and build their own device experiences upon them. Thus with this approach MeeGo is raising the tide of all devices in a relative short time period. It is a different approach to spending years focused on one segment like handsets before stepping out incrementally to tablets. Not saying it is a better approach. It’s a different strategy, or strength, that gets a broader set of device types and experiences out there running MeeGo sooner. At this pace with IVI and embedded devices, next year MeeGo could be running on more device types than any other mobile OS.
…
In the PC world a desktop vs a laptop is a hard distinction. There’s little possibility to get those confused. With mobile devices it will be harder to have a distinction between handset and tablet, and tablet and netbook. And with TV, having devices work cooperatively for a full TV experience, it’s hard to define what is a definitive TV computing device.
For OSs that are built from the ground up with a specific device in mind this could be a problem. We see that with Windows today. It’s just about the most mature OS out there, and while you can put Windows on a tablet it’s not the best experience. The text based menus and mouse designed boxes, and file based navigation, do not translate well to touch based devices. Thus with Windows 8, Microsoft is putting a significant effort to build it from the ground up to be more touch friendly.
For MeeGo, as an OS that can be easily tweaked to work for a new devices segment, this is an opportunity. As device categories blur lines; as tablets get keyboards, as netbooks get touch screens, as OLED screens come out and devices can wrap, bend and extend their shape, it will be hard to define what is a handset verses another device. Device manufacturers will have flexibility with MeeGo, to quickly pull together what they need for the device they are shipping.
Update: Asustek expects better business performance in 2H11 [Aug 17, 2011]
Asustek Computer expects its performance in the second half of 2011 to be better than that of fellow Taiwan-based companies, according to CFO David Chang.
Asustek is likely to hit record quarterly revenues in the third
quarter and is optimistic about business operation in the fourth mainly due to the launch of second-generation Eee Pad Transformer tablets and ultrabook notebooks, Chang said.Asustek aims at a 14% market share for notebooks in China, and
became the largest vendor in Eastern Europe’s notebook market in the second quarter. In addition, Asustek is poised to make forays into Latin America, especially Brazil and Mexico.Asustek expects to ship 14 million notebooks and 4.5-5 million Eee PCs in 2011, Chang indicated. Asustek shipped 11.4 million motherboards in the first half and expects to ship 22.5-23 million for the year.
Asustek begins marketing Eee PC X101/X101H netbooks [July 29, 2011]
Asustek Computer will begin marketing its low-priced Eee PC X101/X101H netbooks in the US, Taiwan and other markets by the end of July. For the US market, the Eee PC X101, which runs on Intel’s MeeGo OS, is priced at US$199, while the X101H, powered by Windows 7 Starter, is available at US$299.
Since global sales of netbooks have been pressed down drastically by the launch of tablet PCs, the roll-out of the Eee PC X101/X101H will be crucial for other vendors to decide whether they should continue to bring out new netbooks, according to industry sources.
More information from elsewhere:
| Eee PC X101 from Eee PC X101 product site | Eee PC X101H from ASUS Product Guide (July-August 2011) | |
| Operating System | MeeGo | Genuine Windows® 7 Starter |
| Display | 10.1″ LED Backlight WSVGA (1024×600) Screen | 10.1″ LED Backlight WSVGA (1024×600) Screen |
| CPU | Intel® Atom™ N435 [Q3’11, single core, 1.33GHz/0.5M cache]]/N455 | Intel® Atom™ N455 [Q2’10, single core] (1.66GHz)/1M cache [?0.5M cache?] |
| Memory | DDR3, 1 x SO-DIMM, 1GB (Maximum 2GB ) | 1GB DDR3 RAM |
| Storage | 2.5″ SATA 8GB SSD HDD, 2 GB DropBox cloud storage |
250GB |
| Wireless Data Network | WLAN 802.11 b/g/n@2.4GHz*1 Bluetooth V3.0*1 |
Integrated 802.11 b/g/n, Bluetooth 3.0 |
| Camera | 0.3 M Pixel Camera | Built-in Webcam |
| Audio | Stereo Speakers | |
| Interface | 2 x USB 2.0, 1 x Audio Jack (Headphone/Mic-In), 1 x Card Reader : SD/ SDHC/ MMC |
|
| Battery | 4hrs (3cells, 28W/h) battery life* *Operation lifetime subject to product model, normal usage conditions and configurations. For more information, please visit our web site. |
3 cell battery, 2600 mAh |
| Dimensions | 262 x 180 x 17.6 mm (WxDxH) | 262 x 180 x 22 mm (WxDxH) |
| Weight | 0.92 Kgs (w/ 3cell battery) | 1.02 Kgs (w/ 3 cell battery) |
| Color | Texture : Red, White, Brown | Texture : Red, White, Brown |
| Note | *1 : Availability is dependent on selected model, country or operator support. Check with your local ASUS website for more details. |
Eee PC X101H from ASUS Product Guide (July-August 2011)
The ASUS X101H is not just another netbook, it’s a social media machine. Super lightweight weighing less than 1.02 Kgs and only 22 mm thin, it still packs in the latest Intel® Atom™ CPU for exceptional performance. It comes in two flavors: the all-new MeeGo operating system, which boots up in seconds and integrates all your favorite social sites like Facebook, Twitter and Flickr into one convenient and easy to use home screen, and the popular Windows® 7 OS, which has ASUS Instant On technology so you can resume your session in 2 seconds. Offered in a variety of stylish colors, it’s the perfect accessory for wanting to stay connected when traveling.
Eee PC X101 from Eee PC X101 product site
Colorful and light, right at your fingertips
· Wing-shaped inspired design, under 17.6mm
· Easy-use MeeGO operating system for real netbook usage
· Have fun with asus @vibe and asus app store for cloud content enjoyment
Slim profile
The X101 was designed to be thin and lightweight, for maximum portability. Boasting a profile that’s less than 17.6 mm thick and weighing less than 920 gram, it easily slips into bags without adding much bulk. Featuring a comfortable chiclet keyboard for typing and large responsive touchpad, the X101 just screams to be used.
Your social networking companion – MeeGo OS
Today’s digital life is all about staying connected. We write blogs, upload photos and stay connected with friends on countless social networking sites. The new MeeGo Operating System on the X101 brings the internet to you in a new intuitive interface, integrating Facebook, Twitter and other popular social media sites onto the homepage for quick access so you can stay connected even faster.
English learning application
The X101 isn’t all play; it’s also a learning tool. Included with the MeeGo OS is the British Council English Language Learning application, designed for people from non-native English speaking countries who aspire to improve their English. The product takes the form of a content bundle of interactive games, videos and mp3s which are preinstalled on the X101. Over 300 pieces of material was developed by English Language Training (ELT) leaders and the British Council, with the application designed by Intel’s award winning Performance Learning Solutions.
Cloud computing for everyone
The X101 is preloaded with not only the MeeGo OS, but also the ASUS App store so you can download applications and stay productive and entertained. Discover apps, games, extensions and themes for the Google Chrome web browser on the Chrome Webstore. Also available is access to asus @vibe, which provides a fun, easy and convenient center filled with rich cloud computing content. As an added bonus, the popular Dropbox online storage is preloaded so you can easily and seamlessly sync files across your desktop, netbook or smart phone.
Chip Shot: MeeGo Netbooks Based on Intel Atom Arrive at Computex [Intel, May 31, 2011]
The ecosystem around MeeGo-based netbooks expands with the introduction of devices including the Acer Aspire One Happy 2, Asus Eee PC X101, Samsung N100 and Lenovo IdeaPad S100 at Computex. These systems are based on the new, 1.33 GHz single-core Intel® Atom™ processor N435. These netbooks will provide new levels of affordability for market expansion. Acer and Asus netbooks will come pre-loaded with the Intel AppUpSM center in select countries. Also at Computex, Acer demonstrated a MeeGo-based tablet on stage at the Intel netbook, tablet and software focused satellite event.
Intel officially unveils Atom N435 chip for low cost netbooks [June 1, 2011]
The Intel Atom N435 is a 1.33 GHz single core chip with 512K of cache and an estimated TDP of about 5W. As expected, it’s basically the newest and slowest member of the Intel Atom Pine Trail family. The next step up the ladder are the 1.66 GHz Intel Atom N450 and N455 chips which were introduced last year and which have TDP’s of 5.5W and 6.5W respectively.
Intel is making an interesting move by launching a new Pine Trail chip this summer. The company is pushing its new Oak Trail platform for tablets and will start shipping next-generation Cedar Trail chips for netbooks and notebooks soon. So why launch a new chip using last year’s tech and offering lessperformance?
In a word: price. The Atom N435 is a budget chip which makes dirt cheap netbooks like the Eee PC X101 possible. You also don’t need a blazing fast processor to offer decent performance with MeeGo Linux, an operating system optimized for Atom and other low power chips. I also suspect that Windows 7 will run reasonably well on the 1.33 GHz processor… I just wouldn’t expect good results with HD video playback.
Intel’s New Atom Processor to Lower Netbook Prices [PC World, June 1, 2011]
Intel on Wednesday [June 1] said it has introduced a new Atom processor to bring down the price of netbooks in emerging markets to under US$200.
…
Netbooks are generally priced above $250. New netbooks using the N435 will provide “new levels of affordability for emerging markets,” said Suzy Ramirez, an Intel spokeswoman, in an e-mail [to PC World].
…
Lower prices could also help draw renewed interest in netbooks, which are small and low-powered laptops for basic word processing and Internet surfing. After a phenomenal take-off in 2008, netbook shipments have stumbled in the last year, partly due to a growing interest in tablets.
ASUS “INNOVATION BEYOND EXPECTATIONS” AT COMPUTEX 2011 [Asustek, May 31, 2011]
…
Eee PC evolved
ASUS evolves the Eee PC further with new models that take netbooks to ever-greater heights. The new Eee PC X101 has been designed from the start to be the perfect ultraportable for modern mobile users, with its Intel® MeeGo operating system incorporating full support for a wide range of social networking services. Eee PC X101 Series netbooks are also offered with the Windows® 7 operating system, and models ship with both solid state and mechanical hard drive storage configurations.
…
ASUS Unveils New Innovations at Computex 2011 [Asustek, June 2, 2011]
…
New Eee PCs
ASUS are committed to developing the Eee PC range and bring users three new options for fully functional computing on the go.The 10.1” Eee PC X101 is a true ultraportable with the Intel MeeGo OS and the latest Intel Atom 435 processor. Offering a QWERTY keyboard, wireless and full support for social networking it is the perfect companion for computing away from home.
The 10.1” Eee PC X101H is the X101’s big brother, with the added choice of either Intel MeeGo or Windows 7, and the option of either HDD or SSD drive. Featuring Instant On technology to bring the netbook to life in just seconds (and last 2 weeks in standby) plus a range of stylish colours, users can make a statement across the entertainment, work and fashion worlds.
…
There’s a reason the $200 Eee PC X101 will be so cheap [May 30, 2011]
… now that more specs are available, it turns out that Asus isn’t just keeping the price low by using open source software instead of paying for a Windows license. The company is also taking a page out of it’s 2008 playbook and offering the MeeGo Linux version of the Eee PC X101 with a small battery and very little storage.
Asus Eee PC X101H lands at the FCC [July 19, 2011]
Here’s a comparison between the Eee PC X101H (above) and the X101 (below) and you can see the difference in thickness, and port choice:
Thanks to MeeGo, Asus Makes Good on Its $200 Laptop Promise [PC World, July 28, 2011]
Reportedly due to begin shipping in September, the Eee PC X101 was first spotted earlier this week on several U.S. retailers’ websites, as Liliputing pointed out on Tuesday. At PCSuperStore, for instance, it’s now available for preorder at a price of $199.73, while at Directronit’s listed at $208.98.
Now there’s also an official product page for the machine on the Asus site, and the netbook turned up on the Federal Communications Commission (FCC) Exhibits List as well, complete with photos and a user manual.
Samsung launches new Super-Light N100 Netbook [July 21, 2011]
The N100 Netbook demonstrates Samsung’s continued innovation while delivering superior quality, mobility and satisfaction to our customers.
Samsung Electronics Co., Ltd,a global leader in digital media and digital convergence technologies, today announced the launch of the N100 Netbook in India. Containing a powerful Intel Atom processor within a highly portable ultra-durable casing, the N100 is the answer for users looking for a simple, practical and connected device to use on-the-go.
“The N100’s design is based on our tremendously successful N150P Netbook, which has sold over 3 million units to date. The N100 Netbook demonstrates Samsung’s continued innovation while delivering superior quality, mobility and satisfaction to our customers. The N100 continues our line of high-quality Netbooks and represents superb value for money,” said Mr. Ranjit Yadav, Country Head, Samsung Mobile& IT.
Durable Design with an Anti-Reflective Screen
Despite weighing just 1.03kg, the integration of Samsung’s scratch-resistant Duracase ensures the Samsung N100 is durable and robust. The device delivers long-lasting reliability, which has been demonstrated through an exhaustive testing process. This durable portability ensures the device can be used for long stretches whilst on-the-move. However durability doesn’t have to come at the cost of design and the N100 is stylish and elegant and available in either black or white.
High quality video and pictures can be enjoyed both inside and outdoors with the device’s anti-reflective 10.1” LED display. The display contains a matt surface designed to reduce ‘mirror effect’, which allows longer use without undue strain on the eyes. The screen is also more resistant to scratching, enabling a higher quality viewing experience for a longer amount of time.
A User-Friendly Experience
Usability is at the heart of the N100’s design. The device includes Intel’s innovative MeeGo™ operating system*1 (OS), to deliver an efficient and enjoyable user experience. The interface has been designed to enable easy access to online and offline contents, while social networks can be viewed at a glance – meaning that it’s easier to stay connected. A fast boot-up process and energy-efficient design means that MeeGo™ is perfect for those on the move. A free DOS or Genuine Windows® 7*2 operating platform is also available as a factory option.
While the N100 may have a compact form factor, this does not impact upon the device’s usability. Thanks to the inclusion of an ergonomic keyboard with intelligent key spacing, typing is easier, faster and more accurate. The user experience is also enhanced through improved connectivity options; two USB ports enable the connection of additional peripheral devices as well as a VGA port to connect a larger external monitor.
Performance & Satisfaction Guaranteed
The N100 is powered by a
dual[single] core Intel Atom processor, which combined with an Intel GMA 3510 graphics processor delivers a swift, responsive experience. The Intel Atom processor is also incredibly energy-efficient, making better use of the battery life and extending usage time when on-the-move. Power reduction is reduced by up to 50 times.Pricing and Availability
The Samsung N100 Netbook is priced at Rs. 12,290/- [US$278]. With the addition N100, Samsung has a range of eight netbooks in its portfolio priced between Rs. 12,290/- to Rs. 21, 990/-.
Specifications
Display 10.1” (1024*600) WSVGA, Anti-reflective LED Operating System* MeeGo CPU* Intel® ATOM™ Processor N435 (1.33GHz) Memory* 1 GB DDR3 HDD* 250 GB (5400 rpm) Graphic Intel GMA 3150 Port GA, Headphone-out, Mic-in, 2 x USB 2.0,4-in-1 (SD, SDHC, SDXC, MMC), RJ45(LAN), DC-In(Power Port) Battery 3 Cell (40 Watt) Dimension 264 x 188.0 x 26.7~34.7 mm (10.3” x 7.4” x 1.05” ~ 1.36”) Weight 1.03 kg (2.27lbs)
Good TD-LTE potential for target commercialisation by China Mobile in 2012
See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks
Updates: China Mobile to set up TD-LTE network in Hong Kong [Feb 8, 2012]
The Hong Kong subsidiary of China Mobile, the largest mobile telecom carrier in China, has acquired 15-year licensed use of 30MHz-bandwidth radio frequency band 2,330-2,360MHz from the Office of the Telecommunications Authority, Hong Kong for HK$170 million (US$21.9 million), and the parent company will use the band to provide TD-LTE (Time Division-Long Term Evolution) service in Hong Kong, according to industry sources in Taiwan.
China Mobile is required to reach a minimum coverage of 50% of the Hong Kong population for its mobile services or 200 commercial and/or residential buildings for its fixed services in the initial five years following the licensing, the sources said.
– China government not expected to issue TD-LTE operating license for the time being [Jan 16, 2012]
While China Mobile has been actively promoting TD-LTE, the China government is not expected to issue a TD-LTE operating license to China Mobile for the time being, according to industry sources.
China Mobile finished initial TD-LTE trials in seven selected cities in China around the end of 2011 and has proposed a second-round of trials, but the China government has not yet approved the plans, signaling the government’s attitude to slow down promotion of TD-LTE in China, the sources indicated.
This is because 3G mobile communication services are taking off in the China market and therefore the government does not want to issue a TD-LTE operating license out of consideration for China Telecom and China Unicom, the sources said.
– Volume production of TD-LTE handsets to not start until end-2012 [July 14, 2011]
Although some telecom carriers plan to kick off commercial TD-LTE services in the second half of 2011, volume production of TD-LTE-enabled handsets will not be realized until the end of 2012, according to industry sources in Taiwan.
Being pushed by China Mobile, more than 10 telecom service providers worldwide have committed to support TD-LTE technology and about 20 other carriers, including those in India and Japan, are now testing TD-LTE networks, noted the sources.
However, those carriers will use devices such as mobile data cards and routers as end devices to support their TD-LTE networks initially without the availability of TD-LTE handsets, the sources added.
Although China-based handset makers may adopt single TD-LTE chips being rolled out by Innofidei and Hisilicon Technologies, most of them may begin commercial production of TD-LTE handsets at year-end 2012, the sources indicated.
International chipset makers including Qualcomm and ST-Ericsson both plan to launch LTE FDD and TD-LTE dual-mode chips, but volume production of those chips will not begin until the first half of 2012, explained the sources.
End of updates
Compulsory preliminary reading (as the information in that is the essential part of this post and generally won’t be repeated her):
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]. One esssential quote is important, however:
We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.
[Bill [Xiaoqing] Huang, general manager of China Mobile’s Research Institute, response to the reporter’s question: Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?]
as well as two whole excerpts:
TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]
TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations
- All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
- The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
– 78% supporting facilities modification accomplished
– 69% equipments arrived
– 35% equipments installed
- Transmission tests have been completed in several cities
- EPC and Security tests initiated in several cities in April 2011
- RANtests are planned to start in the end of May 2011TD
…
GTI Official Website: http://www.lte-tdd.org
The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.
China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]
China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.
Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.
The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.
Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.
And now the new information about TD-LTE potential for target commercialisation by China Mobile in 2012:
China Mobile ambitious to lead 4G tech [by China Daily, July 11, 2011]
BEIJING – China Mobile, the country’s largest mobile telecom operator, is taking ambitious steps to promote the “fourth-generation,” or 4G mobile technologies, according to the general manager of its research institute.
“You have to be a leader, not a follower…timing is everything,” said Huang Xiaoqing [Bill], general manager of China Mobile’s Research Institute, in an interview with Xinhua.
With more than 600 million subscribers, the mobile giant, which is both listed in Hong Kong and New York, is pushing for China’s home-grown 4G standard, known as TD-LTE, or “Time Division-Long Term Evolution,” to be a globally accepted standard.
The technology is expected to provide faster broadband wireless services to meet the explosive future demand in data communication that the current 3G network is unable to deliver, Huang said.
“Demand for mobile communications, especially for mobile internet, is rapidly growing, totally beyond our expectation and forecast,” he said.
The TD-LTE network is believed to be “ten times lower in price and ten times better in performance” than the current 3G service, he added.
The upgraded version of TD-LTE, or TD-LTE-Advanced, is now among the three international 4G standards accepted by the UN’s International Telecommunication Union(ITU). The other two are LTE FDD and WiMAX, which are dominated by Europe and the United States, respectively.
Currently the company has arranged large-scale TD-LTE trials in six Chinese cities and set up a demonstration network in Beijing. It has also developed a TD-LTE mobile network in Taiwan with the local Far EasTone Telecommunications for testing purposes.
According to Huang, telecommunication operators worldwide are seeking a single and unified global standard and tend to agree to the LTE standard.
China Mobile joined with seven other operators to form Global TD-LTE Initiative(GTI) at the Mobile World Congress in Barcelona in February, he said.
The GTI now has 22 members, including telecommunication giants like the UK’s Vodafone, Japan’s Softbank, and Axiata from eastern Europe. Currently, trial networks of TD-LTE have been established in 29 countries.
Goldman Sachsis also optimistic about TD-LTE’s future. In a report released late June, the investment bank said TD-LTE is becoming the global solution for unpaired spectrum due to its 3G inter-operability, large data capacity, and leverage of the LTE FDD system.
The report expects China Mobile, Bharti (India), and Softbank to launch TD-LTE services in late 2012 or 2013, which would cover nearly 2.7 billion people, or 39 percent of the world’s total population, in the three countries.
China is leading the global promotion of the TD-LTE standard, therefore, tests on the network are fully open, said Cao Shumin, vice director of the Telecommunication Research Institution under with the Chinese Ministry of Industry and Information Technology(MIIT).
The test site at the MIIT institutionhas gathered not only domestic cell phone manufacturers but also multinational tycoons like Motorola, Ericsson, and Nokia Siemens Networks.
The LTE FDD network, which is promoted by European operators, is seen as a strong competitor to TD-LTE. But as the two technologies are based on the same LTE system, they are able to share R&D results and subscribers at a global level, Cao said.
The company is also pinning hope on the 4G technology to gain back its high-end subscribers lost to China Unicom and China Telecomin the 3G business.
China Mobile, whose 3G network technology isn’t supported by the iPhone, has announced it will work with Apple on a TD-LTE-type iPhone.
Currently, China Mobile’s iPhone users can only run their device on the 2G mobile network.
But the Chinese government has not given a clear timetable for the commercial launch of TD-LTE.
Miao Wei, minister of the MIIT, said in April that China plans to commercially promote the TD-LTE technology nationwide within three to five years.
The government has only issued the 3G licenses in 2009, with China Mobile getting the self-developed TD-SCDMA standard.
“The regulator is afraid that China Mobile is becoming stronger, gaining more market share and monopolizing the market,” Huang said.
China Mobile had 611 million subscribers by the end of May, of which 32 million were 3G users. China Unicom had 22.1 million 3G users in May, while China Telecom came in third with 19.7 million.
Cell Shackles Crumble [by WSJ via C114, July 12, 2011]
China Mobile Ltd. has missed out on Apple Inc.’s iPhone and other hot smartphones because China’s government forced the Chinese company to build its 3Gnetwork with a homegrown technology not used elsewhere.
Now, the world’s biggest carrier, with more than 611 million subscriber accounts, is looking to improve its situation as it prepares to roll out a fourth-generation network.
China’s government, which owns all three of the nation’s telecommunications carriers, saddled China Mobile with TD-SCDMA, a third-generation wireless technology developed in China, because Beijing thought the company’s size would help promote the technology. The government let the other two, smaller, carriers employ the foreign-developed protocols that are used in other markets.
Now, the industry is moving toward a fourth generation of mobile technologies, part of a migration that allows faster, pricier data services. China Mobile has backed a standard called TD-LTE, for time-division long-term evolution. Analysts said the company has a shot at reversing the fate it suffered with 3G, largely because the company has worked to build international support for the technology.
…
With 4G, most carriers so far have favored a different version than China Mobile’s technology, called FDD-LTE. In the U.S., VerizonWireless introduced 4G services using the standard last year, and AT&T Inc. will do so in some cities this summer.
But there are also major carriers interested in TD-LTE, which China Mobile is using. Bharti Airtel Ltd., India’s largest telecom company by users, has said it will adopt the protocol. U.S. wireless-service provider Clearwire Corp. last year said it would run tests with both versions of LTE. And in Japan, a unit of Softbank Corp. plans to introduce a service this yearthat it says will be compatible with TD-LTE.
China Mobile has encouraged suppliers and other mobile carriers to support the technology. Analysts said Chinese telecom-equipment maker Huawei Technologies Co. also has been a key advocate.
Analysts said development of supporting equipment for TD-LTE has lagged behind that for FDD-LTE by more than six months. But TD-LTE has advantages: It makes more efficient usethan does its cousin of wireless spectrum, a scarce resource.
In part because TD-LTE has international support, it could mean access for China Mobile to a wider range of handsets and less-expensive components, analysts said. China Mobile Chairman Wang Jianzhou in May said Apple planned to use TD-LTE on the iPhone.
China Mobile also appears to be racing ahead of its Chinese rivals toward 4G. Mr. Wang in March said the company aims this year to start commercial trials of TD-LTE using wireless modems. China Unicom [the W-CDMA licensee] Chairman Chang Xiaobing in March simply said the company was experimenting with 4G technology. And a China Telecom [the CDMA2000 licensee] spokesman last week said the carrier doesn’t have a timetable for building a next-generation network.
China Mobile and TD-LTE still face hurdles. According to the state-run China Daily newspaper in March, China’s information-technology minister said China won’t launch commercial 4G mobile services nationwide until 2014, leaving unclear how quickly China Mobile will be able to move ahead.
But TD-LTE still has more potential than China Mobile’s 3G standard did, said Duncan Clark, chairman of consulting firm BDA China Ltd. “People certainly can’t just say it has no future, which is better than TD-SCDMA,” he said.
China Mobile Shows Power Still Lies With the Party [Financial Times via China Digital Times, July 5, 2011]
At first glance it looks easy to tell who is in charge at China Mobile, the world’s largest mobile phone operator by subscribers – industry veteran Wang Jianzhou is chairman of both the Hong Kong-listed company and its majority stakeholding parent.
In reality, however, things are not so simple. In a terse notice last week the listed company revealed that Mr Wang had been replaced as secretary of the Communist party committee at the state-owned parent company by Xi Guohua, former vice-minister for information technology….
Such is the strange world of Chinese big business, where an enthusiastic embrace of the trappings of global capitalism and corporate governance collide with the hard facts of political power in a one-party state. While China’s communists long ago cast aside any pretence to ideological purity, they remain determined to keep tight control over the state companies that command the economic high ground ….
Some observers of Mr Xi’s appointment last week wonder if it is part of a wider clear-out linked to the waning influence of former Chinese president Jiang Zemin and the upcoming retirement of current leader Hu Jintao. Others see it as punishment for Mr Wang for failing to prevent China Mobile becoming ensnared in a series of corruption scandals since 2009. More benignly, the move could be seen as simply a preparation for the 63-year-old chairman’s retirement.
Wang Jianzhou: China Mobile’s Growth is Sustainable [Caijing, July 5, 2010]
With fierce market competition and an unknown model for the mobile Internet, what path should China Mobile take to continue its growth?
By staff reporters Ming Shuliang, Zhang Min, Wang Qihua and Li Weinuo
The number of mobile phone users in China continues to rise. After the last round of restructuring, the level of competition in the market intensified as two operators became three. TD-SCDMA technology is not as mature as WCDMA and CDMA2000. And the popularity of the mobile Internet has changed the original business model of the communications industry. In an interview with Caijing, China Mobile Communications Corp. Chairman Wang Jianzhou discussed the four major challenges ahead for China Mobile.
[the 1st one is the further growth in general and turning the current TD-SCDMA investment profitable in particular] Wang believes there are still growth points in China’s mobile communications market. The penetration rate in China’s rural areas is still low, and people are steadily migrating to cities, which will bring more new users and continued growth. At present, China Mobile’s revenue share of data traffic only accounts for 7.5 percent of annual income. Moreover, the demand for machine to machine communication, also known as the Internet of Things, also has some room for growth.
Wang is optimistic about China Mobile’s future growth prospects, stating that TD-SCDMA terminals have steadily improved, WiFi and LTE networks are now being built, and China Mobile’s scale dividends have yet to be tapped.
China Mobile plans to increase its TD-SCDMA subscribers to 50 million by the end of 2011. And by improving terminals and increasing network usage of its TD network, the company will pay more attention to the development of mid-to-high-end mobile phones.
[the 2nd one] China hasn’t yet issued a timetable for 4G network licensing. Wang believes that tablet PCs may become an important application for the LTE era. [Bill Huang, GM of the China Mobile Research Institute has made a possible clarification for that here: “I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.”]
Driven by China Mobile, more international carriers, especially operators from the WiMAX world, are joining the TD-LTE camp. Japan-based Softbank Mobile Corp. has pledged to put its TD-LTE network into commercial use by the end of 2011.
[the 3d one] Negotiations between China Mobile and Apple Inc. have yet to conclude, and terminal subsidies are one of the key points for both sides. China Mobile only provides 3G terminal subsidies, but Apple doesn’t support China Mobile’s TD-SCDMA standard. Apple has promised to manufacture TDD standard compatible mobile phones after LTE chips come out.
[the 4th one is international expansion] China Mobile’s Pakistan subsidiaryhas widened its subscriber base to 10 million, and the company is expected to turn a profit in 2012. China Mobile’s future international acquisitions will focus on key emerging markets, TD-LTE operators and Internet companies. The company is also now considering whether it can participate in future international mergers and acquisitions as a minority shareholder.
Full article in Chinese: http://magazine.caijing.com.cn/2011-07-03/110763826.html [王建宙:增长仍将持续]
China Mobile to set up 1,000 TD-LTE base stations in five cities [March 28, 2011]
China Mobile
(CHL.NYSE; 00941.HK) decides to initiate large-scale construction of TD-LTE trial network in five cities first. Five telecom equipment providers will share the construction, with each establishing 200 base stations in assigned citi (NYSE:C) es, according to www.sina.com.cn.
The TD-LTE trial network was planned to cover seven cities, including Beijing, Shanghai, Nanjing, Hangzhou, Guangzhou, Shenzhen and Xiamen, but there are only five telecom equipment manufacturers passed the external field tests so far, and each manufacturer is entrusted with network construction in one city.
Alcatel Shanghai Bell Co., Ltd. acquired the mobile TD-LTE trial network deployment program in Shanghai; Huawei Technologies Co., Ltd . took up Shenzhen; Nokia-Siemens (NYSE:NOK), Hangzhou; ZTE Corp. (OOTC:ZTCOY), Guangzhou; and Datang Telecom Technology Co., Ltd., Nanjing.
An industrial insider revealed that as long as other telecom appliance providers pass the tests, China Mobile will start the construction in Beijing and Xiamen [July 1: picked by Nokia Siemens Networks, see later] at any time.
China Mobile schedules to complete the trial network construction in the first batch of cities by September.
China Mobile TD-LTE trial network details [July 1, 2011]
Experts of China Mobile revealed the details of TD-LTE trial network that the first batch of admited equipment vendors, which including Huawei, ZTE, Datang, Nokia Siemens, Shanghai Bell, Motorola and Ericsson, have completed the testing of core network, and went into the next phase of wireless network, it is expected by the end of December, 2011, all the vendors will complete the testing.
Now, the first batch of admited equipment vendors have completed the hotspot contiguous coverage, the first base station and transmission testing in several cities, while the core network, security testing and wireless networks has also being started.
The TD-LTE network trial has three major parts: wireless networks, terminals, core network (basic function: verification, carrying and transmission).
Demo business includes home entertainment, working and living, office meetings and professional use such as high-definition wireless video on demand, 3G video-on-demand and high-speed wireless cities.
China Mobile in TD-LTE testing R&D pact [July 4, 2011]
China Mobile has entered a joint TD-LTE R&D agreement, and revealed it tapped NSN [Nokia Siemens Networks] to deploy part of its trial networkusing the homegrown 4G standard.
The operator’s R&D division, China Mobile Research Institute, has signed a MoU with Rohde & Schwarz to collaborate on the development of TD-LTE testing tools and systems, AsiaNet reported.
A stated goal of the co-operation is to speed up global deployment of TD-LTE.
NSN meanwhile announced it has been operating TD-LTE test networks in two of the six cities where China Mobile has been trialling the technology since May.
The core network has been tested, and NSN has now moved on to radio access. The vendor is also working with the ICT ministry on TD-LTE device testing, and said it will introduce devices into the trial network once the preliminary tests are complete.
China Mobile hopes to commercially launch TD-LTE in 2012, but the communications ministry in March stated it doesn’t expect significant LTE rollouts until 2014.
Nokia Siemens Networks trials TD-LTE in Hangzhou and Xiamen [July 1, 2011]
First global vendor to be awarded two cities in six-city China Mobile 4G trial
Nokia Siemens Networks has successfully been running live TD-LTE (4G) trial networks in Hangzhou and Xiamen for China Mobile, the world’s largest operator. The trial networks, operational since May, demonstrate the promise of TD-LTE to transform the mobile broadband experience in China. Trial users have been able to enjoy peak download and upload speeds of up to 100 Mbps along with uninterrupted access to applications such as video streaming and online HD video conferencing.
Nokia Siemens Networks has already finished testing the core network and is now testing radio access. It is working with China’s Ministry of Information and Industry Technology (MIIT) on TD-LTE device testing, and will use devices in the trial, when testing is completed.
“In Zheijang region, we reached a major milestone earlier this year with 50 million subscribers and can also see the data boom in the network,” said Zhong Tianhua, General Manager of China Mobile Group Zhejiang Co. Ltd. “As our long-standing partner, Nokia Siemens Networks fully understands our aim to improve the capabilities of our network to improve subscriber experience.”
Nokia Siemens Networks deployed its single RAN advanced TD-LTE equipmentin 2.3GHz and 2.6GHz spectrum. The company’s network management system, NetAct is providing configuration, monitoring and operations support system capabilities during the trial. Nokia Siemens Networks is also providing network planning and optimization services.
“Nokia Siemens Networks has been committed to developing the TD-LTE ecosystem since its inception. The Motorola Solutions’ acquisition clearly strengthens our market proposition and enables us to deliver greater value to operators, looking to adopt TD-LTE,” said Markus Borchert, head of customer operations for Greater China at Nokia Siemens Networks. “China Mobile’s trust in our TD-LTE capabilities for this large-scale trial affirms our technology leadership and readiness for large-scale commercial TD-LTE rollouts.”
ZTE launches new salvo against Huawei [June 8, 2011]
Chinese telecommunications equipment maker ZTE Corp has demanded rival Huawei Technologies Co stops making and using equipment related to fourth-generation time division long term evolution (TD-LTE) technology, expanding the legal battle between the two Chinese telecom giants.
In a lawsuit filed at the Shenzhen Intermediate People’s Court, ZTE alleged that Huawei infringed on three TD-LTE patents. The company also demanded Huawei stops participating in large-scale TD-LTE trials in seven Chinese cities that started in January.
The move came after Huawei filed four lawsuits against ZTE in Germany, France and Hungaryat the end of April, accusing it of patent and trademark infringements.
Representatives of ZTE’s communication department said on Tuesday that the Shenzhen court has accepted the case and the company is awaiting the next phase of the lawsuit.
Shi Xiaoyan, a Huawei press officer, said Huawei has received a bill of indictment from the Shenzhen court. She said Huawei welcomes ZTE’s counteraction.
“We believe the court will give us a fair trial. Huawei is a leading company in LTE technology, and we own 15 percent of the basic patents in LTE technology worldwide,” Shi told China Daily.
TD-LTE technology is a Chinese telecommunication standard. China Mobile Ltd, the world’s biggest phone carrier by users, is leading its development and striving to make it a global standard.
In December, China Mobile got approval from the Ministry of Industry and Information Technology to begin large-scale tests of TD-LTE technology in seven cities. Huawei is working with Telefon AB LM Ericsson to provide TD-LTE equipment in Shenzhen, while ZTE is supplying the equipment for the trial network in Guangzhou. Alcatel-Lucent SA is providing equipment for Shanghai and Nokia Siemens Networks for Hangzhou.
“The lawsuit is unlikely to hamper China’s TD-LTE trials,” said Yang Hua, secretary-general of the TD Industry Association in China. He pointed out that the lawsuit could be lengthy and Huawei will not suspend the trial network constructionunless the Shenzhen court issues an injunction.
Yang also said he expects that all of the lawsuits are merely “paving the way for a comprehensive settlement”, because ZTE and Huawei both own a large portion of LTE patents and cannot afford to work without each other.
Ji Chendong, an analyst with the research firm Frost & Sullivan, said the competition between Huawei and ZTE has become increasingly intense, especially in the overseas market. “The market share in Asian and African countries is relatively stable, and Europe and the US are the two telecom giants’ major battlefields,” Ji said. That explained why Huawei launched the first salvo in its war on ZTE in the European market.
ZTE’s revenue rose by 50 percent year-on-year in the European and US markets in 2010, the biggest overseas contributors to ZTE’s annual growth. The company expects its revenue to grow by more than 20 percent this year, beating Huawei’s forecast of less than 8 percent.
ZTE demonstrates TD-LTE handover [July 12, 2011]
TD-LTE devices are close to hitting the market, according to ZTE, which has completed what it says was the world’s first TD-LTE to 2G/3G handover test.
The Chinese vendor saidit had demonstrated interoperability between TD-LTE terminals and GSM, UMTS and CDMA EV-DO networks.
Some operators have been reluctant to deploy the 4G technology due to concerns about TD-LTE multi-mode terminals, but ZTE claims its tests demonstrate the maturity of the standard’s ecosystem.
The China Mobile-backed TD-LTE standard is gaining traction worldwide. As of April, ZTE alone had deployed TD-LTE trial and commercial networks for 25 operators in 15 countries throughout Asia and Europe.
Indian incumbent Bharti Airtel will adopt the protocol and a Softbank unit and US wireless operator Clearwire have revealed that they will test the technology, WSJ said.
China Mobile has itself built a trial network in six cities, and has teamed up with FarEasTone to trial the standard in Taiwan.
ZTE on Friday revealed [July 8] it had secured a $900 million loan with 10 international banks to help it further expand internationally.
ZTE, first to Start the TD-LTE Large-Scale Test in Guangzhou
On March 24, 2011, China’s Ministry of Industry and Information Technology (MIIT) officially announced the kickoff of TD-LTE scale test. ZTE as one of the first vendors to enter the TD-LTE field will be responsible for building the TD-LTE network in Guangzhou, indicating the start of TD-LTE scale test in China.
This project which is organized by MIIT and China Mobile will cover six cities including Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen. It will also include a demon network to be deployed in Beijing. After all the deployments are completed, China Mobile will be able to provide high-speed mobile broadband services such as HD video, 3D games, FTP transmission and high-speed Internet access for the customers in these cities. In the previous 2×2 IOT – MIIT’s entrance test for TD-LTE scale test, ZTE was the first to complete the IOT with Innofidei and Hisilicon and became one of the first vendors to build TD-LTE trial due to its innovations and commercialization.
ZTE has led the industry in TDD technology. It has kept the leading position in the TD-LTE field in terms of technology and system commercialization. In January 2011, the well-known consulting institution Frost & Sullivan released the TDD market research report, in which ZTE was ranked No.1 in terms of competitiveness.
ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 13 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE is building the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.
ZTE, the Only Vendor to Provide TD-LTE Service for GTI
The Global TD-LTE Initiative 1st Workshop made its debut in Guangzhou on April 27 to 29, 2011. ZTE and CMCC presented diversified interactive service experience inside and outside the conference hall based on the TD-LTE trial in Guangzhou. The interactive service experience will include mobile video conference, HD 3D streaming and multi-mode high-speed FTP download, allowing the visitors to feel 4G in advance.
During GTI conference, the participants enjoyed the TD-LTE high-speed data service via MF820T data card which is solely provided by ZTE. The type of TD-LTE data card earned favorable comments what is the stable signal, excellent temperature-control.
GTI was officially launched by China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, E-Plus, Aero2 and Clearwire at Mobile World Congress 2011. This event will help expand the international influence of TD-LTE, lay sound foundation for the global expansion of TD-LTE in future, and facilitate the implementation of global roaming and subscriber growth for TD-LTE. Besides the seven member operators, this event also attracts many operators and equipment vendors who have interest in TD-LTE development.
Guangzhou is one of the six cities in which China Mobile will carry out TD-LTE scale test. After China’s Ministry of Industry and Information Technology (MIIT) officially announced the kick-off of TD-LTE scale test on March 24, ZTE and China Mobile’s Guangzhou Branch jointly launched the first high-speed data service in the early April, which laid foundation for the development of diversified TD-LTE services.
ZTE has been actively promoting the commercialization of TD-LTE. By April 2011, ZTE had deployed TD-LTE trials and commercial networks for 22 world-leading operators in 14 countries covering Europe, India, Commonwealth of Independent States (CIS), Asia-Pacific, Southeast Asia, and so on. ZTE built the world’s largest LTE TDD/FDD commercial network in Sweden and Denmark, which is also the first TD-LTE network in North Europe. This network will adopt ZTE’s SDR base stations, unified core network and network management platform. Besides, ZTE also actively collaborates with a large number of chipset vendors such as Qualcomm, Sequans and Altair to carry out IOT so as to jointly promote the ecosystem development.
Ericsson to build TD-LTE trial network in China [April 7, 2011]
- Will support China Mobile in its first large-scale TD-LTE trial network deployment in China
- Network to be located in Shenzhen – a highly advanced telecoms market
- Official interoperability tests in progress with ST-Ericsson and Qualcomm Incorporated to secure global ecosystem
China Mobile has selected Ericsson to participate in the world’s largest TD-LTE trial network deployment to date. With the approval of the Chinese Ministry of Industry and Information Technology (MIIT), Ericsson will build a TD-LTE trial network in the city of Shenzhen, one of the most advanced telecommunications markets in China.
The approval by MIIT follows the successful completion of interoperability tests of Ericsson’s TD-LTE network equipment with multiple chipset manufacturers. As part of its efforts to further develop the global ecosystem, Ericsson is proactively conducting interoperability tests with leading international players such as ST-Ericsson and Qualcomm.
Mats H Olsson, President of Ericsson China & North East Asia, says: “China Mobile has always been a formidable force in driving the evolution of telecommunications technologies. As a longtime strategic partner to China Mobile, Ericsson will fully support our customer in its tremendous endeavor to make TD-LTE a reality in the foreseeable future. Tens of millions of users, not only in China but also around the world, will benefit from the new and better services enabled by the superior TD-LTE technology, and we are thrilled to be part of this initiative.”
Ericsson will provide the industry-leading end-to-end TD-LTE solution, which includes its latest multi-standard base station, RBS 6000 and its commercially proven Evolved Packet Core (EPC) network; operations support systems software and professional services. As early as July 2010, Ericsson demonstrated extremely high-speed multimedia applications enabled by its TD-LTE solution in Shanghai, China. [First complete TD-LTE solution showcased [July 12, 2010]] And in February this year, Ericsson achieved another milestone by making the world’s first TD-LTE voice call over its LTE/EPC network in Barcelona, Spain. [Ericsson showcases voice over TD-LTE for China Mobile [Feb 14, 2011]]
In August of this year, Shenzhen will host the 26th Universiade, or World University Games. According to the deployment schedule, the network will be ready in time for athletes and visitors, together with the city’s population of more than 10 million, to enjoy the TD-LTE experience made possible by Ericsson.
Alcatel-Lucent and China Mobile speed the delivery of mobile broadband in China [May 11, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile have announced a major step toward the delivery of high-speed mobile broadband to subscribers in China by successfully completing the first call over a trial TD-LTE network deployed in the city of Shanghai.
Alcatel-Lucent’s end-to-end 4G LTE solution in Shanghai is a vital element of the large-scale TD-LTE trial formed by the China Ministry of Industry and Information Technology (MIIT) and China Mobile, covering six major cities in China, to commercially showcase the advantages of TD-LTE technology in delivering high-speed applications and services to millions of customers.
As a key partner of China Mobile, the largest mobile operator in the world, Alcatel-Lucent is utilizing its expertise in TD-LTE to deliver a highly-efficient and cost-effective network to the large population of data-hungry subscribers in the central business and education/technology districts of Shanghai. The network includes the high-tech park of Zhangjiang and financial district of Lujiazui, which China Mobile and the Shanghai Government want to make a leading demonstration zone of TD-LTE technology. The successful completion of this first call is a major milestone in realizing this goal.
“We are excited to be able to collaborate with China Mobile and demonstrate our leadership in TD-LTE on this important trial network. The first call takes us a step closer in delivering a high-quality network that will provide faster wireless services and applications to the people of Shanghai,” said Rajeev Singh-Molares, president of Alcatel-Lucent ‘s activities for Asia-Pacific.
Alcatel-Lucent and China Mobile further enhanced their relationship in April of this year by announcing a joint research program to pioneer developments in next generation mobile communications, including further co-development of Alcatel-Lucent’s lightRadio solution.
Alcatel-Lucent has established a strong leadership position in LTE, being selected so far by fourteen customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 LTE trials worldwide.
Alcatel-Lucent and China Mobile to Co-Develop Future of Mobile Networks [April 20, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile today announced a wide-ranging joint memorandum of understanding to pursue pioneering developments in next generation mobile communications including further co-development around Alcatel-Lucent’s powerful lightRadio™ technology. The partnership agreement was signed by Romano Valussi, President of Alcatel-Lucent in China, and Bill Huang, president of China Mobile Research Institute in a signing ceremony in Beijing today.
China Mobile is the biggest mobile operator by subscribers in the world. Alcatel-Lucent is a leader in radio access, IP, and optical technologies – all critical elements in mobile networking – thanks to its flagship Bell Labs research arm which invented and continues to invent many of the fundamental networking technologies of today and tomorrow including the much heralded lightRadio cube.
This research collaboration will further extend the close relationship between the two companies, establishing the framework to jointly explore:
- the evolution of mobile network architectures leveraging and integrating China Mobile’s Cloud-RAN and Alcatel-Lucent’s lightRadio and advanced antennas technology;
- explore the evolution of core network structure on the basis of network virtualization; and
- develop technologies and approaches for alternative energy use to achieve green ICT
The MOU is mutually initiated and endorsed by Wang Jianzhou, Chairman of China Mobile and Ben Verwaayen, Alcatel-Lucent CEO.
Ben Verwaayen, CEO of Alcatel-Lucent, said: “This vital collaborative agreement will bring together two industry leaders, using joint research, to bring new breakthroughs to market at what we call ‘the speed of ideas’.”
Wang Jianzhou, Chairman of China Mobile said “Co-development with Alcatel-Lucent Bell Labs will benefit evolving our network technology to support the next generation of mobile-based applications, experiences, economies, and social networks.”
Alcatel-Lucent to help China Mobile deploy world’s largest 4G TD-LTE end-to-end trial network [March 24, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it has been selected by China Mobile to participate to the world’s largest 4G TD-LTE trial network deployment in China. This qualification follows successful completion of various interoperability tests which started from January 2010 as required by the Chinese Ministry of Industry and Information (MIIT) and China Mobile. Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China is one of the first suppliers to have successfully achieved this key milestone and will be deploying its end-to-end LTE solution for China Mobile’s large-scale 4G TD-LTE trial in the city of Shanghai.
Covering 6 major Chinese cities, namely Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen and Xiamen, and recently extended to Beijing, this large scale TD-LTE trial will help China Mobile to provide a wide range of high speed mobile broadband services to its subscribers, such as high definition video, 3D gaming, FTP transmission and high speed Internet. It will also enable new industries with LTE connectivity like automotive industry and multi-industry ecosystem development thanks to initiatives pioneered by Alcatel-Lucent through the ng Connect Program launched two years ago.
Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “This is a major accomplishment for Alcatel-Lucent and clearly reinforces our leading position in China and our global leadership in LTE. We are committed to provide China Mobile with the most advanced LTE solution for the world’s largest TD-LTE trial and to demonstrate the maturity and cost-effectiveness of our solution for TD-LTE which is emerging as the 4G standard for TDD spectrum globally. The successful interoperability tests with terminal suppliers further demonstrate our commitment to create an open TD-LTE ecosystem that will participate in the broader global LTE value chain.”
The tests were conducted in both 2.3GHz and 2.6GHz frequency bands for indoor and outdoor deployments and relied on Alcatel-Lucent’s industry-leading LTE expertise to provide an end-to-end integrated solution including LTE base stations (eNodeBs), the Evolved Packet Core (EPC). Alcatel-Lucent’s solution successfully passed interoperability tests with two major terminal suppliers.
Alcatel-Lucent is a key partner of China Mobile on TD-LTE and next generation wireless networks initiatives and evolution programs. During the 2010 Shanghai World Expo Alcatel-Lucent supported China Mobile in the first large-scale TD-LTE trial network deployment delivering advanced mobile services including ultra high speed Internet access and High Definition TV (HDTV). Most recently, at Mobile World Congress, Alcatel-Lucent and China Mobile demonstrated with Audi, a variety of in-vehicle high-value applications that worked seamlessly on a converged Time Division Duplex (TDD) and Frequency Division Duplex (FDD) network ensuring seamless global coverageand the ability to benefit from a common LTE ecosystem across both modes. Alcatel-Lucent and China Mobile are partnering to develop next-generation radio access network based on Alcatel-Lucent’s lightRadio, a groundbreaking innovationto prepare wireless networks to handle the explosive growth in demand for wireless broadband services while making the networks more eco friendly.
Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers— and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.
More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte
About Alcatel-Lucent(Euronext Paris and NYSE: ALU)
The long-trusted partner of service providers, enterprises, strategic industries and governments around the world, Alcatel-Lucent is a leader in mobile, fixed, IP and Optics technologies, and a pioneer in applications and services. Alcatel-Lucent includes Bell Labs, one of the world’s foremost centres of research and innovation in communications technology.
With operations in more than 130 countriesand one of the most experienced global services organizations in the industry, Alcatel-Lucent is a local partner with global reach.
The Company achieved revenues of Euro 16 billion in 2010 and is incorporated in Franceand headquartered in Paris.
For more information, visit Alcatel-Lucent on: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow the Company on Twitter:
http://twitter.com/Alcatel_Lucent.
Additional information on mobile infrastructure vendors participating in the TD-LTE trials by China Mobile (sans Datang for the time being):
- Huawei
- ZTE
- Ericcson (+ acquisition of divested Nortel assets strategic for Ericsson)
- Nokia Siemens Networks (NSN)
- Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)
I. Huawei
Huawei Showcases Cutting-Edge LTE TDD Technology at the16th Asian Games [Nov 24, 2010]
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has exclusively deployed a LTE TDD trial network for China Mobile at the 16th Asian Games in Guangzhou. Visitors to the Asian Games are able to enjoy a range of cutting-edge services, such as mobile HD (high definition) video conferencing and surveillance and HD video on demand. Using a portable digital video camera with the LTE TDD module-embedded, members of the media can send real-time high-resolution photos and live broadcast video across the world.
“As the use of data services is at an all-time high around the world, the development and rapidly growing uptake of LTE is in direct response to consumer requirements for faster mobile communication services,” said Ying Weimin, President of LTE Network, Huawei. “The success of this deployment, along with the success of our LTE TDD network at the Shanghai Expo, reaffirms the high performance and reliability of LTE TDD solutions and demonstrates Huawei’s commitment to enabling operators around the world to deliver superior mobile media experiences to their customers.”
Huawei’s demo network delivers the following solutions and services:
- Low carbon and cost efficient LTE TDD base station, based on Huawei’s industry-leading SingleRAN solution
- Evolved Packet Core (EPC)
- HD video conferencing, mobile HD video surveillance, catch-and-transfer, live broadcast, and HD video on demand (VOD)
- LTE TDD devices featuring high-end chipsets
- E2E service deployment, management, and service guarantee
As a leading provider of E2E mobile broadband solutions, Huawei constructed the world’s first LTE FDD network for TeliaSonera in Norway and was awarded the world’s first LTE TDD commercial contract from Aero2 in Poland. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks deployments around the world.
Huawei Awarded the World’s First Commercial Frame Contract Covering LTE TDD Technology in Poland [Nov 18, 2011]
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has been awarded a frame contract to deploy the world’s first commercial LTE TDD network for Aero2, Poland’s leading mobile broadband operator. With Huawei’s end-to-end LTE TDD/EPC (Long Term Evolution/Evolved Packet Core) solution, the network will allow ultra-speed data rates and deliver rich experiences and high-quality mobile broadband services, such as video call and mobile Internet access, to Aero2’s subscribers. The network will become operational in early 2011.
“Aero2 is committed to providing high-quality mobile broadband services for our customers and introducing cutting-edge telecom technologies in Poland,” said Adam Kuriański, the President of Aero2. “We are confident that with Huawei’s advantages in LTE technology, we will be able to offer users a rich communications experience with the deployment of the LTE TDD network.”
“This milestone demonstrates that LTE TDD technology is already mature, stable and reliable for large-scale deployment,” said Ying Weimin, President of LTE Network, Huawei. “Based on Huawei’s LTE unified platform supporting both LTE FDD and LTE TDD, we are confident that the network will contribute to Areo2’s success in the mobile broadband era.”
Due to their long-term partnership, Aero2 and Huawei have achieved a series of breakthroughs in LTE, benefiting from Huawei’s LTE FDD and TDD unified platform. In September, 2010, the world’s first commercial LTE FDD network, on 1800MHz band, was launched in Poland. Recent LTE TDD lab testing with Aero2 in Poland showed that download throughput rate reached up to 100Mb/s.
As a leading provider of end-to-end mobile broadband solutions, Huawei has constructed the world’s first LTE FDD network for TeliaSonera in Norway and supported China Mobile to deploy the world’s first pre-commercial LTE TDD network at the 2010 Shanghai World Expo. To date, Huawei has won 18 commercial LTE contracts and has partnered with leading operators in Europe, North America, Asia Pacific and the Middle East to deploy over 70 LTE/EPC trial networks around the world.
About Aero2
Aero2 is a new comprehensive telecommunications provider in Poland. The company builds mobile networks and broadband Internet access. The coverage of Aero2 has already reached more than 40% of the Polish population. Aero2 has a radio frequency of 900 MHz and 2.5 GHz.
Huawei Launches Industry’s First WiMAX and LTE TDD SingleRAN Solution [Nov 3, 2010]
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today released the industry’s first commercially available WiMAX and LTE TDD SingleRAN solution. This end-to-end solution enables operators to seamlessly migrate from WiMAX to LTE TDD networks.
Huawei is the first vendor to offer a commercially available solution consisting of a WiMAX and LTE TDD dual mode remote radio unit (RRU) and dual mode base band unit (BBU), which fully support 2.3GHz, 2.5GHz and 3.5GHz mainstream Time-Division Duplexing (TDD) frequency bands. Based on Huawei’s leading SingleRAN ability, Huawei WiMAX RRU has been widely applied in several operators’ current operating WiMAX networks. It is a 4T4R (four transmitters and four receivers) design that supports multi-input multi-output (MIMO) and Beamforming (BF), and it can be flexibly configured as a WiMAX module, a LTE TDD module, or a WiMAX and LTE TDD dual mode module simply by upgrading the software.
This solution also features an end-to-end advantage by adopting Huawei’s SingleEPC packet core network solution, which enables GPRS, UMTS, LTE, and WiMAX users alike to enjoy high-speed mobile broadband access with converged and smart network management.
“Huawei’s WiMAX and LTE TDD SingleRAN solution will provide our customers with great flexibility,” said Tang Xinhong, Vice President of Wireless, Huawei. “By adopting Huawei’s SingleRAN solution, operators will be well-positioned to adapt and evolve their networks to any standard in the future. This solution also offers operators current investment protection and an overall lower total cost of ownership.”
Huawei supported China Mobile to deploy the world’s first pre-commercial network using its LTE TDD solution. This network successfully demonstrated a variety of mobile broadband services, including high definition (HD) transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting to visitors in the 2010 Shanghai World Expo Park and some key pavilions.
Huawei has won over 79 commercial WiMAX networks contracts worldwide and is adding new ones faster than any other vendor in the world. Huawei has a wealth of experience in delivering global WiMAX projects, and has partnered with operators worldwide including BSNL in India, Globe in the Philippines and MTN in the Middle East and Africa.
China Mobile Launches World’ s First TD-LTE Network with Huawei’ s E2E Solution [May 6, 2010]
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that it has assisted China Mobile Communications Corporation (CMCC), the world’ s leading telecom operator, launched the world’ s first TD-LTE/SAE trial network enabled by Huawei’ s E2E solution. The network, which offers a more than 10 times faster download data rate than existing 3G networks, will serve the entire 2010 Shanghai World Expo Park and some key pavilions.
Construction of the network faced challenges due to the more than 70 million visitors expected throughout the Expo and the complex coverage area that includes grass lands, rivers, roads and high density buildings. To address these challenges, Huawei’ s industry-leading E2E TD-LTE/SAE solution provides high-quality, high-speed, large capacity and low latency coverage. With this technology, visitors to the Expo will have access to a variety of mobile broadband services, including high definition (HD) video transmission, HD video conference, HD video monitoring, HD video-on-demand (VOD) and HD live broadcasting.
Li Changzhu, Vice President of China, Huawei, said: “This TD-LTE/SAE network is one of the most exciting innovations to be showcased during the Expo. Visitors from around the world will enjoy the unparalleled services offered by China Mobile’ s TD-LTE network. This milestone illustrates Huawei’ s commitment to support operators around the world in delivering truly mobile media experiences to consumers.”
As a major investor in TD-LTE/SAE technology and contributor in the development of its standardization, Huawei believes that the common development of TD-LTE and LTE FDD facilitates the efficient use of limited spectrum resources to meet performance and cost requirements of mobile broadband.
In May 2009, Huawei demonstrated TD-LTE-based inter-site and inter-cell switching for the first time in the world, marking a great leap forward toward massive commercial TD-LTE deployment. To date, Huawei has conducted more than 60 LTE networks, including commercial and trials with world leading operators. As of March 2010, Huawei has submitted more than 4,700 LTE/SAE standard proposal contributions to 3GPP and holds 181 LTE essential patents, becoming No.1 and account for 34% of the infrastructure vendors in LTE essential patents.
Huawei Deploys World’ s First TD-LTE Trial Network for 2010 Shanghai World Expo [Nov 13, 2009]
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced the deployment of world’ s first TD-LTE/SAE trial network for China Mobile. This new network with an actual download speed of up to 29Mb/s will be used for 2010 Shanghai World Expo.
Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said: “This state-of-the-art network covers the whole site of 2010 Shanghai World Expo, which will fully demonstrate the capability of TD-LTE technology.”
As the only vendor able to provide end-to-end TD-LTE/SAE solutions, Huawei deployed the TD-LTE radio access network and SAE core network for China Mobile, and delivered chipsets and terminals. These infrastructures and terminal devices enabling high definition (HD) video transmission, HD video monitoring, HD video-on-demand (VOD) and mobile Internet will support the live broadcasting and security for the coming events.
“TD-LTE/SAE technologies with the advantage of low latency and high spectrum efficiency are getting increasingly more recognition from operators and telecom organizations.” said Li Changzhu, Vice President of China Marketing, Huawei , “As most of the significant technical innovations will be showcased during the Expo, this TD-LTE/SAE trial network is one of the most exciting innovations during the event. This network adopted Huawei’ s integrated LTE solution of FDD and TDD technologies, as well as the SAE core network which is being used in world-leading operators’ network modernization.”
Huawei has been appointed to deploy the world’ s first LTE network for TeliaSonera and Europe’ s largest LTE network for Telenor. Over 20 LTE/SAE trials have been deployed by Huawei for global operators.
Huawei’ s SAE Solution Successfully Completes TD-LTE Tests for 2010 Shanghai World Expo [Nov 5, 2009]
Huawei, a leader in providing next-generation telecommunication solutions to operators around the world, today announced that it’ s SAE (System Architecture Evolution) solution has successfully completed all the mandatory and optional tests on the TD-LTE trial network for 2010 Shanghai World Expo. The tests were conducted by China Mobile Research Institute and Shanghai Mobile, a subsidiary of China Mobile, to evaluate the LTE/SAE solutions among all the leading vendors for deploying the commercial TD-LTE network for the coming event.
The core network tests verified the functionalities of MME (Mobility Management Entity), Serving Gateway, PDN Gateway and the HSS (Home Subscriber Server). According to the result of the tests, Huawei is the only vendor with its commercial SAE solution that has successfully passed all 119 tests.
“We are honored to have the opportunity to participate in 2010 Shanghai World Expo, and fully confident to support its success through our advanced LTE/SAE network solutions.” said Wang Gang, Director of China Marketing, Huawei Core Network, “The excellent performance of Huawei SAE solution in this test reflects our deep understanding and continuous investment in LTE technology, and the long-term commitment of providing world-leading mobile broadband solutions to operators worldwide.”
As a partner of Shanghai Mobile, Huawei provided end-to-end network solutions for the TD-LTE trial, including mobile network, SAE, terminals, chips and transmission systems.
Huawei Demonstrates World’s First Handoff Tests Between TD-LTE Base Stations [May 14, 2009]
Huawei Technologies Co., Ltd. (“Huawei”), a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that the company was selected by the Next Generation Mobile Network Congress to provide the new end-to-end TD-LTE/SAE solution for field testsat its conference held in Beijing on May 11-12, 2009. World leading operators including Vodafone, NTT DoCoMo, AT&T, China Mobile, TI and TeliaSonera participated in the conference and jointly discussed the development of future networks.
As the sole provider of the network for testing, Huawei conducted a live demonstration of the world’s first handoff tests between TD-LTE base stations with a 100-percent success rate. These field tests demonstrated the ability of Huawei’s network to successfully deliver the handoff or handover technology that facilitates phone calls between different technologies. The completion of the test marks a major forward step in the evolution of TD-LTE technology.
“Due to the rich resources in the TDD spectrum, the application of TD-LTE is currently of great interest to operators both in China and beyond. We are very confident about the future of TD-LTE which is one of the major next-generation mobile broadband platforms.” said Wan Biao, President of Huawei Wireless Product Line. “Huawei is committed to promoting the development of LTE through its proven expertise and extensive global application experience.”
Huawei also showcased the world’s first multi-user access and multi-cell handoff tests based on a TD-LTE network at the event. Different terminalswere used to simultaneously demonstrate the services based on TD-LTE, such as VOD, video phone and VOIP.
Huawei has been researching LTE technology since 2004 and, in December 2008, was awarded with the world’s first LTE commercial contract, with Teliasonera. By the end of March 2009, Huawei had submitted more than 2,500 LTE/SAE applications and has contributed 20 percent of all the patents in LTE field.
The brilliant debut TD-LTE elevates experience at World Expo [by Huawei, April 28, 2011]
The World Expo is a great event to showcase the best achievements of human civilization, including telecommunications advancement. At the 2010 World Expo Shanghai, TD-LTE was first introduced, pointing to the future of 4G mobile broadband in China.
TD-LTE’ s global debut
As one of the world’ s largest mobile operators, China Mobile is a global partner of the Shanghai World Expo. In 2009, it selected vendors including Huawei to deploy the World Expo TD-LTE Demo Network, the first of its kind in the world, signifying the debut of TD-LTE in the largest mobile communications market in the world.
Straddling both sides of the Huangpu River between the Nanpu Bridge and Lupu Bridge, the Shanghai Expo Park covers an area of 5.28 square kilometers and is the largest expo park in history. The Expo is also likely to be the largest World’ s Fair ever in terms of visitor numbers as Expo organizers expect about 70 million visitors during its 6-month run.
To showcase the latest achievements in and promote the TD-LTE industry, China Mobile invited dozens of well-known vendors and providers to join in the demo project in 2009. Thanks to its outstanding overall test results, the strength of its end-to-end solutions and its rich experience in commercial/pilot LTE network deployments outside China, Huawei was selected as a key partner to exclusively build the outdoor TD-LTE network in the Expo Park and provide support and guarantees for outdoor service demonstrations.
For this largest TD-LTE demo network in the world, Huawei has provided an end-to-end TD-LTE solution including base stations, EPC core network equipment, CPE terminals, and a service platform. With 17 outdoor distributed TD-LTE base stations, the solution has delivered complete outdoor coverage for the entire Expo Park and even on the Huangpu River that runs through the Park.
Fabulous TD-LTE experience
On the Shanghai Expo TD-LTE Demo Network, a series of great mobile broadband services are demonstrated, showcasing the advanced TD-LTE capabilities and features, especially the diversified mobile high-definition (HD) video applications that require high-end network and even end-to-end system capabilities.
For various groups such as friendly users and security personnel, the Demo Network facilitates mobile broadband services such as HD video conferencing, multi-way HD video surveillance, portable video surveillance, instant shoot & transfer, and high-speed wireless network access. HD video conferencing, portable video surveillance, and instant shoot & transfer services are all carried over the mobile network for the first time, marking a major breakthrough in mobile broadband development.
Mobile HD conference brings people closer
Video conferencing is efficient while saving time and money. Its increased popularity means that video conferencing systems are expected to be reliable and render high-definition images.
Under normal circumstances, video conferences are held at fixed venues, where access is provided through fixed broadband to meet bandwidth and latency requirements. Yet, it is increasingly desirable for professionals and businesspeople to do business on the move and they expect to have the same real-time communication experience with HD conferencing as they do face to face.
The China Mobile TD-LTE Demo Vehicle in the Expo Park cruises visitors at speeds of up to 40 km/h (speed limit for the Expo Park and nearby roads). Another TD-LTE test vehicle running on the Pudong South Road outside the Expo Park connects users to the Huawei Telepresence HD conferencing system and the TD-LTE network covering the Expo Park. Users are able to experience clear imaging (with delays of less than 1s and with no frame loss nor mosaic), and complete audio/video synchronization. Videoconference participants evidently can get nearly the same experience as in a meeting room and have been duly impressed.
HD video surveillance ensures a “Safe Expo”
The Shanghai World Expo has rapidly attracted visitors from home and abroad. Since the end of May, the average number of visitors has hit 400,000 each day with more than 500,000 per weekend day. All of the venues, roads, pavilions, combined with buses and Huangpu River ferries present major safety and security challenges. To ensure the safety of visitors, an HD video surveillance system has been put in place.
Traditional video surveillance systems are simply not enough. Buses, ferries and people move. In typical mobile video surveillance systems, image definition is often sacrificed for mobility. Mobile video monitors often adopt CIF or QCIF for code resolution and the image definition is usually 1/4 or even 1/16 of standard definition.
The introduction of the mobile HD video surveillance system over the TD-LTE network clears up the images. The system enables the images collected by mobile video monitors to reach the level of standard definition by improving the video quality up to 16 times, allowing for the display of 720P/1080P HD videos. The system not only renders videos with quality comparable to a fixed network but also satisfies other mobility and higher bandwidth needs in terms of end-to-end experience and application scenarios.
Real-time full-range monitoring contributes greatly to effectively ensuring visitor safety and the TD-LTE video surveillance system covers the entire Expo. The ferries on the Huangpu River, buses on the land, and surrounding high-rise buildings are all closely monitored with video specific for various scenarios.
During surveillance planning, China Mobile and Huawei ingeniously introduced portable video transfer. Both TD-LTE CPE (portable TD-LTE terminal) and devices such as batteries and video codecs are put into a backpack weighing about 3kg. Carrying the pack on his/her back, a single person can handhold a portable DV camera, shoot a scene and then transfer the video back to the surveillance center in real time over the TD-LTE network for evaluation. In this manner, the TD-LTE mobile HD video surveillance system perfectly serves the needs of the Shanghai Expo by equally emphasizing all aspects, large or small. General surveillance is thus maintained as more specific and detailed information is scrutinized. Furthermore, portable video transfer is so flexible that it can be deployed whenever needed.
Instant shoot & transfer revolutionizes news gathering and broadcast
Instant shoot & transfer is one of the featured TD-LTE services and it wowed the visitors to the ITU’ s 145th anniversary celebration at the Expo Park on May 17th and the Shanghai NGMN Industry Conference in early June. Hailed as a pioneering move at the Expo, it also represents a technical revolution and a turning point in the history of news video.
Mr. Bill Huang, General Manager of the China Mobile Research Institute, remarked that this service was regarded by the media as a revolution in news gathering and broadcastin his keynote speech at the “TD-LTE Demo Night” on June 2nd at the Shanghai World Financial Center.
Traditional live broadcasting requires the construction of live broadcast facilities like a newsroom or a live broadcast truck. That is often demanding and difficult to do on site, take time to set up and test, and is vulnerable in emergencies. Cost is another major concern, for a set of integrated equipment costs a million or more USD, and with the satellite transmission link, the system really costs an arm and a leg.
By comparison, the TD-LTE-based instant shoot & transfer service replaces the newsroom or broadcast truck with portable integrated equipment that is easy to operate and maintain and costs much less. If we take O&M into account, instant shoot & transfer can definitely save a lot of labor and transmission link costs.
The TD-LTE HD instant shoot & transfer service was jointly demonstrated by China Mobile, Huawei, and other partners, attracting wide attention at the NGMN Industry Conference in the Shanghai World Financial Center. The TD-LTE HD instant shoot & transfer equipment consisted of professional HD cameras, audio and video codecs, and TD-LTE terminals. China Mobile put a large screen in the booth, which played the scenes captured by HD cameras. Video content was encoded and decoded locally and the video code streams were up to the HD standard, with no blurry images, frame loss, or mosaic. The delay of images from the camera to the screen ranged between one and two seconds, and, according to the on-site presenter, the delay was mainly caused by the codecs and would be less than 20ms if the videos were transferred from LTE network equipment. If the codec capability was further improved or a more professional codec was adopted, the end-to-end delay would be so small that you would hardly notice it, said the interpreter. Through the indoor TD-LTE network, the system can directly upload and download HD video code streams without any server platform. News can be collected, edited, and broadcast even while mobile, without location restrictions.
All roads lead to Rome
Skype, YouTube, and Facebook are moving into mobile applications and services. Smart terminals such as the iPhone, BlackBerry, OPhone, iPAD, and Kindle are leading the market. The app store has become a common model for mobile communications giants, and the entire industry is molding the mobile Internet era.
In the future, a more diverse range of mobile Internet terminals will be available for increasingly more users to enjoy better mobile Internet services. In addition, new-generation mobile broadband networks, mostly evolving toward LTE, will provide the infrastructure to guarantee that the mass users embrace the mobile Internet.
In December 2009, TeliaSonera, the largest telecoms operator in Scandinavia and the Baltic countries, launched the world’ s first commercial LTE network in Oslo and Stockholm supplied by Huawei and Ericsson respectively. According to data released by the Global Mobile Suppliers Association (GSA), there were 110 operators committed to LTE network deployments in 48 countries and regions as of June 2010, and 22 LTE networks will be in commercial service or at trial stages by the end of 2010. These operators include traditional GSM/CDMA operators such as Vodafone, T-Mobile, and NTT DOCOMO, CDMA operators like China Telecom and Verizon Wireless, and GSM/TD-SCDMA operators like China Mobile. LTE has no doubt become the common choice for most mobile operators in their migration to mobile broadband.
From the Shanghai Expo Park, TD-LTE’ s brilliant debut marks the beginning of China’ s journey toward LTE mobile broadband.
II. ZTE
ZTE Achieves World’s First TD-LTE and 2G/3G Handover Interoperability Test [July 11, 2011]
TE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced that it has completed the industry’s first interoperability test (IOT) between TD-LTE terminals and GSM/UMTS/CDMA EV-DO networks.
This is the first IOT between a multi-mode TD-LTE terminal and non TD-LTE networks. The success of the test is significant for the entire TD-LTE ecosystem, proving that TD-LTE devices can work seamlessly with existing GSM, UMTS and CDMA EV-DO networks as well as with new LTE FDD and TD-LTE networks. It is expected to promote the convergence of TD-LTE and existing networks, and speed up TD-LTE network deployments.
“The test shows that devices for TD-LTE networks are close to market availability, and that ZTE’s extensive TD-LTE expertise ensures that our existing 2G and 3G networks are able to handle traffic from TD devices,” said Mr. Wang Shouchen, general manager of ZTE TD products.
Most operators have mature 2G/3G networks with huge numbers of subscribers. TD-LTE networks offer operators significant opportunities in terms of using available and often low-cost spectrum, but they need to work concurrently and seamlessly with existing networks and with the next generation of multi-mode devices.
Multi-mode terminals will allow the leading LTE operators to provide global roaming with existing 2G and 3G networks, thus reducing the market entry barriers for LTE development. TD-LTE multi-mode terminals have therefore been one of the core capabilities operators have been concerned about, and are an important indication of TD-LTE ecosystem maturity.
As of April 2011, ZTE had deployed TD-LTE trials and commercial networks for 25 leading global operators in 15 countries covering Europe, India, CIS, Asia-Pacific and Southeast Asia, and has been actively carrying out interoperability testing with other terminal vendors.
ZTE is also a major provider of LTE multi-mode terminals that meet the requirements of different network operators, and can provide a full range of LTE devices including data cards, inbuilt modules, tablet PCs and smart phones.
ZTE to deliver world’s first LTE TDD/FDD dual-mode infrastructure equipment to Hi3G [April 1, 2011]
Operator Hi3G plans to build world’s first LTE TDD/FDD dual-mode network in Sweden and Denmarkto offer next generation mobile broadband networks to its customers with data speeds of up to 100 Mbps.
29 March 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced the company will deliver LTE infrastructure equipment to operator Hi3G, which plans to build the world’sfirst LTE TDD/FDD dual-mode networks in Sweden and Denmark. As part of the deal, ZTE will also deliver 3G infrastructure equipment to upgrade the operator’s 3G network.
The delivered base stations will be based on ZTE’s Uni-RAN SDR (Software Defined Radio) technology, which enables Hi3G to support all viable mobile standards and frequency bands, housing both the upgraded 3G network and the two versions of LTE: TDD and FDD. The SDR technology also makes it possible for Hi3G to perform future upgrades of its infrastructure without acquiring new base stations.
Peder Ramel, CEO at Hi3G, said: “We have chosen ZTE for additional 3G 900/2100 rollout and for LTE mobile broadband networks in Sweden and Denmark because of the possibility to house three different mobile standards in the same physical infrastructure and the low cost of ownership. Furthermore, ZTE advanced LTE dual-mode solutions and quick consignment responses really meet our requirements.”
Zhu Jinyun, President of ZTE Europe and America, commented: “The agreement with Hi3Gfully demonstrates that ZTE has a great capability to provide solutions for end-to-end multi-mode convergence systems. It further strengthens our position in LTE in Western Europe and will be followed by additional LTE-infrastructure deals, which will be announced shortly.”
ZTE Corporation is a leading supplier in both the TDD and FDD markets. ZTE has worked on more than 20 LTE projects in high-end markets including Spain, the United States and Hong Kong, with established operators such as Telenor, CSL (under Telstra Group), Etisalat, SingTel, Commnet Wireless/NTUA, and China Mobile. ZTE has to date rolled-out 15 LTE commercial networks and over 65 LTE trials in Europe, North America, and the Middle East and Asia Pacific areas.
Thomas Granström, Managing Director for ZTE in the Nordics, said: “The deal with Hi3G signals a real breakthrough for ZTE in the advanced Nordic market, demonstrating our capabilities in providing high speed mobile broadband network infrastructures. The agreement with Hi3G comes on top of a successful year, including several handset launches throughout the region and additional infrastructure deals with Nordic operators in foreign markets.”
Hi3G builds world’s first LTE TDD/FDD dual-mode network
Hi3G expects to develop its Swedish and Danish networks for mobile broadband during 2011and will introduce LTE technology with very high data speeds of up to 100 Mbps for its customers.
Hi3G will exploit its spectrum resources by rolling out two versions of LTE. The two versions are usually referred to as Frequency Division Duplex (FDD) and Time Division Duplex (TDD). The main benefit of the TDD version is that it can make full use of TDD spectrums to maximize data throughput and enhance user experience. Hi3G has acquired 50MHz of TDD spectrum in Sweden and 25 MHz of TDD spectrum in Denmark.
The TDD version of LTE is also used in other parts of the world, for example China. The use of TDD LTE by China will facilitate the world-wide availability of TDD LTE terminals.
The E-Plus Group, China Mobile and ZTE collaborate for TD-LTE field trial in Germany [Feb 17, 2011]
The E-Plus Group will launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will provide technical support to this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.
The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators for years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.
The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.
China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and the convergence of the TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.
With the joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.
ZTE Secures 18 TD-LTE Contracts Globally [Feb 16, 2011]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced it had secured 18 TD-LTE contracts globally, cementing its place as an international and first-class TD-LTE equipment provider.
These contracts are for trial and commercial networks in 12 countries across Europe, the Commonwealth of Independent States (CIS, or the former Soviet Republics) and the Asia Pacific region, including India.
Since entering the TD-LTE field in 2005, ZTE has achieved sustainable development on TD-LTE wireless systems, chipsets and terminals. So far it has established eight TD-LTE R&D centers in America, Europe and the Chinese cities of Shenzhen, Shanghai, Xi’an and Nanjing. The company has over 4000 elite researchers developing wireless systems, core network products and terminal products simultaneously.
Each year ZTE commits 10% of its revenue developing frontier technologies. It now owns 7% of the world’s essential LTE patents, and is one of the companies holding the largest number of independent Intellectual Property Rights (IPR) in the world.
ZTE is actively cooperating with various parties in the TD-LTE ecosystem. The company collaborates on Interoperability Tests (IOT) with mainstream chipset providers such as Qualcomm, Innofidei, Altair, Sequans and ST-Ericsson. It also works to promote the development of the TD-LTE platform and standards. In October 2009, ZTE teamed up with Innofidei to successfully demonstrate the industry’s first multi-vendor TD-LTE high-definition video service at ITU Telecom World 2010 in Geneva.
At the end of 2010, ZTE was the first in the industry to launch Qualcomm chipset based TD-LTE terminals and achieved a download rate of nearly 100Mbps.
In January 2011, consulting company Frost & Sullivan released a research report on the Time-Division Duplex (TDD) market, evaluating the competitiveness of companies in the TD-LTE field based on four criteria including technical accumulation, product convergence, product progress and system openness. In this report, ZTE was ranked No.1 in terms of competitiveness.
ZTE Launches World’s First Commercial TD-LTE Base Stations [June 7, 2011]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that it has launched the industry’s first commercial TD-LTE base stations: BBU- B8300 and RRU- R8962. The debut of the two base stations is timely to help accelerate TD-LTE industry commercialization.
ZTE’s B8300 TD-LTE base station is based on ZTE’s SDR unified platform and can be upgraded from TD-SCDMA mode to TD-LTE or TD/TD-LTE dual mode. It fully supports a smooth evolution of carrier networks to LTE and lowers their total cost of ownership.
ZTE’s R8962 TD-LTE base station supports two channels with 20W transmission power each – the highest transmission power and power efficiency in the industry. It incorporates compact size, the most lightweight design in the industry, and meets the growing industry demand for energy savings and emission reduction. Operators will benefit from its innovative product features for multi-mode functions of TD/TD-LTE, as well as its multi-band 2.3/2.6 GHz and multi-scenario indoor/outdoor applications.
To support the ever-growing needs for next-generation network infrastructure, ZTE has deployed more than 250,000 SDR base stations across the globe, including in mainland China, Hong Kong, India and Chile. The company successfully constructed a TD-LTE network for the Shanghai World Expo Press Center, and the company’s 2G/3G dual-mode base station built upon the SDR platform was nominated for a GSMA Global Mobile Award in 2009.
ZTE has taken the lead in LTE development and has achieved significant breakthroughs in the industry. To date, the company has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 4G technologies, ZTE will continue to drive innovation and introduce market-leading and cost-efficient solutions to the market.
ZTE Completes the World’s First TD-LTE S1/X2 Interface Conformity Test [June 1, 2010]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, and China’s Ministry of Industry and Information Technology (MII) today announced they have completed the world’s first S1/X2 Interface Conformity test, an important development under MII’s initiatives for the deployment of TD-LTE.
ZTE was invited by MII to conduct the trial in advance of mass-scale system testsdue to the company’s leading position and rich experience in TD-LTE. The test was a success and passed all requirements set forth by MII for the S1/X2 Interface Conformity Test, making ZTE the first in the world to successfully complete the related trials.
ZTE has been actively involved and participated in TD-LTE tests organized by MII and China Mobile. The Company has realized many industry firsts in TD-LTE industry trials. It achieved TD-LTE’s highest theoretical peak download rate in November 2009. In December 2009, ZTE became the first vendor to pass the essential test set for TD-LTE single systems organized by the MTNET Lab of MII followed by the industry’s first field tests.
In addition, in January 2010 ZTE passed the TD-LTE field test held by MII making it the first in the industry to submit a TD-LTE field test report to The LTE/SAE Trial Initiative(LSTI). Subsequently, ZTE successfully completed an indoor MIMO performance test in cooperation with China Mobile, underlining its key role in promoting TD-LTE industry-chain development.
Within LTE network infrastructure, the S1 interface is the communications interface between LTE eNB (base station) and EPC (packet core network), while the X2 interfaces between eNB and eNB. The success of the S1/X2 Interface Conformity test validates that ZTE’s TD-LTE system, including its wireless and core network, fully comply with 3rd Generation Partnership Project(3GPP)standards, and has laid down a solid foundation for the test of S1/X2 IOT.
ZTE has taken the lead in the TD-LTE development and has attained significant achievements in the industry. To date, ZTE has deployed five commercial LTE networks and built 40 LTE trial networks for leading telecom operators in Europe, North America, Asia-Pacific and MEA. With an aim to advance the telecommunications market into 3.5/4G, ZTE will continue to drive innovation and introduce innovative and cost-efficient solutions to the market.
ZTE Partners with CMCC for Ground-Breaking TD-LTE Indoor MIMO Networking Performance Test [March 30, 2010]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that, together with CMCC (China Mobile Communications Corporation), it has successfully completed a TD-LTE indoor MIMO networking performance test in Beijing– producing the world’s first batch of TD-LTE performance evaluation data on indoor single/dual path cell throughput. The testing also produced data for indoor multi-UE circumstances.
The test evaluated the construction solution of indoor distribution systems, including whether a two-path system can achieve significant better performance than a single path system under different scenarios and user distributions. Organized by CMCC, ZTE based its results on comparative tests under several different scenarios. The testing found that, under diversified testing circumstances, a TD-LTE two-path indoor distribution system downlink throughput does show dramatic improvements compared with single path indoor distribution system. The data is valuable for the industry for TD-LTE networking construction and efficiency.
ZTE and CMCC partnered earlier this year for the Huairou field test organized by MIIT(China’s Ministry of Industry and Information Technology). ZTE is also taking great initiative in studying and testing MIMO utilization probability in indoor open environments.
ZTE has established itself as a leader in the TD-LTE industry through tests and partnerships across the globe. ZTE and CMCC will jointly deploy a TD-LTE operation network for the Expo News Centre at the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services to reporters and expo staff from around the world. To date, ZTE has successfully engaged in over 10LTE projects worldwide with leading telecoms including Telstra CSL, Telefonica, SingTel, CMCC, and more.
ZTE Achieves Industry-High TD-LTE Network Downlink Speed of 130Mbps [Dec 11, 2009]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions,today announced that it has successfully demonstrated its TD-LTE network technology and achieved a downlink speed of 130Mbps, the highest level in the industry. ZTE is the first company to reach the theoretical limit of TD-LTE throughput in downlink. Utilizing third-part terminal testing tools, ZTE conducted the tests using ZTE system products including EPC, eNodeB, etc in Guangzhou in November.
ZTE has created a simple and smooth transition path for operators to move to LTE through its mature and stable SDR Base Stations. Networks can be upgraded from TD-SCDMA to TD-LTE or to TD-S/TD-LTE dual-mode through a simple software upgrade, saving operators time and money. At the present time, there are more than 200,000 sets of ZTE SDR products running throughout the world, including in China mainland, Hong Kong, India, Chile and other countries. ZTE’s SDR platform Base Station was honored with a prestigious nomination by GSMA Global Mobile Award for the Best Network Technology
In May 2010, ZTE and China Mobile will jointly deploy a TD-LTE network at the Expo News Center for the World Expo Shanghai 2010. The TD-LTE network will provide high-speed wireless network services, enabling staff and reporters around the world to experience the excellent voice, video and data services of LTE technology during the World Expo.
Based on ZTE’s continuous investment and development in the TD-SCDMA field, ZTE has made great strides in TD-LTE field. During a TD-LTE proof of concept (PoC) test organized by China Mobile, Vodafone and the Ministry of Industry and Information (MII), ZTE scored many of the top marks in the industry testing. As the first vendor globally to report testing results for LTE TDD IODT technology to the Long Term Evolution/System Architecture Evolution Trial Initiative (LSTI) in September 2009, ZTE is effectively driving the development of IODT between the TD-LTE industry and chip manufacturers.
ZTE has more than 2,000 engineers and experts dedicated to the innovation and network development of LTE technology. ZTE is a leading pioneer in LTE terminal research and development, working with operators to driving the global adoption of LTE technology.
ZTE is First to Pass Third-Party UE TD-LTE Test [May 13, 2009]
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions today announced that it is the first company to successfully complete and pass the TD-LTE Phase I test together with key industry players including China Mobile, Vodafone and the Ministry of Industry and Information of China on April 15, 2009. The TD-LTE test measures high bandwidth network capacity.
This significant achievement was made known during yesterday’s NGMN (Next Generation Mobile Network) Conference held in Beijing, China. As one of the key highlights of the conference, TD-LTE attracting numerous key industry participants including China Mobile, Vodafone and other leading members of NGMN.
In ZTE’s TD-LTE Phase I test, the results indicated that the downlink sector reached the theoretical peak rate of 39Mbps with a 10M bandwidth, at the same time, ZTE became the first company in the industry to realize 20M bandwidth support. In the trials, ZTE adopted third party test UE (User Equipment) and the downlink peak rate attained TM500’s upper limit of 61.228 Mbps. Upgradable through terminal, the system is designed to support a downlink rate of up to 82.3 Mbps in the future.
Adopting a unified SDR business platform for its system equipment in the test, ZTE is the first vendor to feature pre-business EPC (Evolved Packet Core) to complete the total system tests, highlighting its leading position in commercial applications. As an industry first to use third party UE to complete the tests, ZTE achieved its expected trail results, including zero fault, zero malfunction and 100% connection rate: another technology breakthrough that highlights ZTE’s winning customer offerings with its excellent system stability.
This TD-LTE test also makes ZTE the first company to complete a performance test under a 350Km/h high-speed mobile channel model, reaching the best theoretical value. In fact, in May 2009, ZTE was the first industry vendor to pass China Mobile Institute’s GSM/TD-SCDMA/TD-LTE joint platform testfurther underlining its leading edge in the TD-LTE area.
To date, as one of the leading advocates of the TD industry chain, ZTE has a taskforce of over 3,200 TD R&D engineers with more than 900 devoted to TD-LTE. The Company has submitted more than 400 LTE papers to the 3GPP Conference to further propel and inspire industry development. Through continuous and extensive investments in R&D and manpower, ZTE has been at the forefront of LTE fully demonstrating its leadership in both LTE and TD-LTE.
ZTE Stakes Out Its LTE Credentials [May 20, 2011]
China’s ZTE Corporation has made a huge investment in developing TDD-LTE equipment and solutions, and now it is looking to reap the benefits by winning contracts in the European and American markets.
“Our target is to achieve over 15 commercial LTE contracts in Europe in 2011,” says Li Jian, ZTE’s general manager, CDMA and LTE Product Line. It’s a bold statement of intent and a measure of the increasing confidence the Chinese telecommunications equipment and network solutions provider now has on the world stage. The reasons for this confidence are threefold, according to Li Jian. “It is because ZTE will continue to contribute 10% of its revenue to investment in LTE development. We already have 4,000 engineers and research staff, so this is a very special team devoted to LTE development.”
ZTE has spent a total of RMB 13 billion over the last two years on R&D alone, and the company maintains 15 R&D centres in Sweden, the U.S., France, India, Shenzhen, Shanghai and Beijing.
Li Jian says: “Also, ZTE is very mature in LTE knowledge with a full end-to-end LTE solution and technology. ZTE is the leading software defined radio (SDR) vendor. We came up with SDR, so we think we have a strong ability to lead on this new platform and that’s why we are confident we can win 15 contracts in Europe this year.”
“The third reason ZTE is confident it will hit this target,” she continues, “is that ZTE can customise its LTE solution to whatever the operator’s requirements are. So, operators can deploy ZTE’s LTE equipment on top of their existing infrastructure. This will save on deployment costs and maintenance costs in the evolution from one generation to the next.”
Opinions vary, depending on what is being measured and how, but a report in February by Open Vista Consulting ranked ZTE among the top three vendors for LTE infrastructure, alongside Ericsson and Nokia Siemens Networks, with 21% of the LTE market.
ZTE is beginning to ride a wave of interest in TDD-LTE, the alternative to FDD-LTE, which is being heavily promoted by the world’s largest operator, China Mobile. The manufacturer is one of several companies that have worked closely with China Mobile over the last three years to develop TDD-LTE.
This commitment has led to a startling jump in influence in terms of the number of international patent applications from ZTE (and indeed, China generally). According to the World Intellectual Property Organisation, ZTE jumped from 23rd place to second in 2011 for international patent applications.
By the end of December 2010, ZTE had a total of 1,863 patent applications registered. It has declared 235 essential LTE patents to ETSI, which accounts for 7% of the total so far. This has propelled ZTE into becoming one of the main holders of basic LTE patents.
The continued investment in R&D has also begun to translate into wider commercial success beyond China despite the economic downturn of the last two years. The percentage of overseas revenue grew from 44% in 2006 to 54.1% in 2010 (US$5.7bn).
Global revenue from principal operations reached US$10.6bn in 2010, up 21% on 2009. Net profit was US$490.7m. According to a Frost & Sullivan report “Insights on 2010 Market Performance”, ZTE had the highest compound annual growth rate among the top vendors―28% between 20082010 and 37.4% between 20062010. It secured contract sales worth up to RMB100 billion in 2010.
“We have 15 commercial contracts and 65 trials around the globe,” reports Li Jian. “But this year ZTE will focus on the high-end markets, such as Europe and the USA. We are looking for deeper and more intensive penetration of these markets.”
Li Jian says that some of the contracts will be undertaken by ZTE itself, while others will be won in partnership. But ZTE will provide the end-to-end solutions.
ZTE showcased its range of LTE base stations at Mobile World Congress in February as well as a number of innovations. Along with its distributed base stations, it also introduced what it claims is the industry’s first all-in-one micro base station, as well as the all-in-one indoor/outdoor macro base station.
The rollout of LTE is beginning to take off in Europe and America, but it is still early days. “In 2009, there were some LTE deployments in European and US markets, but it grew very slowly,” says Li Jian.
“But in 2010, we found that in the second half the trials by networks of LTE were becoming rapid. This year, the operators in Europe and the USA will increase the development of LTE, but it will not reach the explosion point.”
Problems with the availability of frequency and licences for LTE are delaying deployment. The UK 800MHz and 2.6GHz auction will not take place until 2012, for example. The lack of LTE-enabled devices other than dongles for laptops is also slowing down the arrival of LTE. But 2012 is likely to be the year it really takes off.
“Different countries will have different situations,” says Li Jian. “It’s true that some, if not most, are still benefitting from their 2G and 3G networks, but the development of LTE will not be stopped now. The advantages of fast mobile broadband will benefit the operators and enhance their operational capabilities.”
The advantage for ZTE is that over the last year many operators have started to show a keen interest in the TDD-LTE option. FDD and TDD are very similar and can share the same chip. However, FDD uses two frequency bands and TDD just one.
There is more TDD frequency available, it is less used and generally speaking cheaper to get for the operators. And for WiMAX operators, it is easier to convert to TDD-LTE than FDD-LTE should they wish to do so. Hence, there is growing attraction of TDD for mobile carriers. What ZTE’s SDR platform provides is a multimode platform that allows operators to choose FDD or TDD as and when they are ready to do so. But as Li Jian points out it does more than that―it can support the existing technologies too.
“Our base band units (BBUs) connect all the different technologies, so they can support GSM, UMTS, TD-LTE, FDD-LTE and WiMAX in one platform,” says Li Jian, “and that will provide a big cost saving for operators.”
Operators will continue to run their 2G and 3G networks in conjunction with LTE. But ZTE’s SDR platform allows them to invest in new network infrastructure now that will cut network CAPEX and OPEX and future proof them for LTE when it comes on line.
“SDR is a uniform platform―you can do anything on it. You can satisfy any operator requirement, so that will help them save money and satisfy their business development needs at the same time. We try to reuse existing facilities and systems as much as possible,” says Li Jian.
An example of this is the work ZTE has done with Hong Kong mobile operator CSL. In November 2010, CSL launched a commercial LTE/DC-HSPA+ network. “CSL has two GSM, two UMTS and two LTE bands, but it is all based on one platform―you no longer need separate big sized GSM units,” says Li Jian.
The availability of a wide and affordable range of LTE-enabled devices is also critical for the future of the LTE market. But Li Jian says that the development of terminals is growing very fast, “so ZTE will try to develop and provide a total solution to solve the problem and make it easier for operators.”
Besides terminal products, equipment and services, ZTE has invested in chip development. At the end of 2010, ZTE was the first to launch a Qualcomm chipset based on TDD-LTE terminals and achieved a download rate of nearly 100Mbps. “It is this kind of thing that makes ZTE different from other vendors,” says Li Jian.
The rollout of LTE may be protracted, especially in Europe, but ZTE looks to be well positioned to grab a large share of the market, if the number of operator trials it is picking up is anything to go by.
Recent ZTE technology advances showcased at MWC:
■ LTE-A CoMP prototype: ZTE unveiled its LTE Advanced coordinated multi-point (CoMP) transmission prototype. It incorporates a number of key technologies, such as carrier aggregation, multiantenna enhancement, relay technology and multipoint transmission. CoMP technology ‘dramatically increases’ throughput on the edge. Commercial LTE-A products are due out in 2012.
■ Multiple Access Binding (MAB) solution: Dubbed the all-join, the MAB solution shows how a UE can bind multiple RATs simultaneously. ZTE demonstrated the binding of LTE and Wi-Fi on a single UE through unified authentication. It then bound multiple access technologies using integrated serving gateway (ISGW) built on the advanced service router platform. MAB is being touted as an effective way to solve data storm issues and provide high quality services by introducing synergy between their access technologies.
■ C-RAN wireless networking solution: ZTE claims that the cloud of radio access network (C-RAN) solution, first introduced by China Mobile, will lower the total cost of ownership of wireless networks by 40%. It involves the development of a new generation of wireless access networks using centralised processing, collaborative radio, real-time cloud infrastructure, clean system (green wireless access network architecture) and cloud computing.
III. Ericsson (+ acquisition of divested Nortel assets strategic for Ericsson)
CEO sees markets beyond traditional telecom [May 5, 2011]
- Determined to grow faster than market in traditional segments
- Addressable market valued at USD 350 billion
- New customer segments to address
Today at Ericsson’s (NASDAQ:ERIC) Capital Markets Day in Stockholm, President and CEO Hans Vestbergmade remarks on the telecom industry and Ericsson’s position.
“We have just seen the beginning of the massive data growth, driven by smartphones and other mobile devices. These new devices provide operators with new charging capabilities. As a consequence, we are beginning to see signs of changed operator tariffs and pricing models aligned to consumer needs, especially for mobile broadband services and data usage. It’s important for us to follow this development,” Vestberg said.
Ericsson estimates show that the number of mobile broadband users will increase from today’s 400 million to 3.5 billion in 2015.
“These fundamental industry drivers require operators’ to focus on network quality and efficiency. In addition, in the developed world, where the networks have been up and running for quite a long period, we will see operators modernize their infrastructure not only to meet increased data usage, but also to reduce power consumption and use frequencies better. These are challenging operations, requiring deep technology understanding and services capabilities as well as insights on advanced business support systems and understanding of consumer needs in order be successfully performed.”
Vestberg continued by stating that the operator environment is becoming more complex in competition for consumers who are becoming increasingly advanced and demanding.
“We will see new business models emerging and so called coopetition among operators, where they will share platforms and build scale together around applications.”
Vestberg, who took on the position as President and CEO as of January 1, 2010, continued by elaborating on Ericsson’s industry leading position in mobile networks, services and multimedia as well as platforms and handsets via the joint ventures ST-Ericsson and Sony Ericsson. Vestberg said that converged networks is an area where the company intends to continue investing.
“We see good long-term growth opportunities in our traditional segments and we are determined to further strengthen our position and continue to grow faster than the market. Less than 5% of the world’s population has access to 21 Mbit/s or more in the air, at least 1.5 million installed GSM radio base stations must be replaced and in addition we see continued need for services in fields such as consulting, system integration and managed services. We estimate that our addressable market, including joint ventures, is worth USD 350 billion.”
“However, we are not satisfied with our position today and we see new markets to address. The capabilities we have in place today enable us to address customers also beyond traditional telecom operators such as cable and TV-companies, governments, healthcare, transport and utilities. These are industries where there is a huge need for telecommunication services,” Vestberg stated.
Vestberg was also joined by Mr. Manoj Kohli, CEO of Bharti Airtel. Mr Kohli attended via a video link from India and elaborated on the challenges Bharti meets in India where the number of mobile subscriptions grow by 20 million only in March, making India the fastest growing market in the world.
Mats H Olsson, head of Ericsson in China and North East Asia as well as Angel Ruiz, head of Ericsson North America, also joined via video link.
“Mainland China added more than 100 million subscriptions last year and we expect similar numbers in 2010”, said Mats H Olsson. “Non-voice revenues now make up 30% of Chinese operators’ total revenues and one of our focus areas for this year is deployment of TD-LTE in China and LTE in Japan and Korea. We also see further opportunities to increase our GSM footprint in mainland China”.
“We have taken every LTE-contract announced in North America and with the acquisition of Nortel we now have access to 50% of the marketwe couldn’t approach previously. We take nothing for granted, but we are ready to move to the next level and achieve even greater market leadership”, said Angel Ruiz,
Other Ericsson executives on stage were: Executive Vice President and CFO Jan Frykhammar, Chief Strategist Douglas L Gilstrap, Chief Technology Officer Håkan Eriksson, Executive Vice President and head of business unit Networks Johan Wibergh, head of business unit CDMA Mobile Systems Rima Qureshi, head of business unit Global Services Magnus Mandersson and head of business unit Multimedia Jan Wäreby.
NOTES TO EDITORS:
Bio and photos of Ericsson Group Leadership Team
Read more about the joint ventures Sony Ericsson and ST-Ericsson
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room
Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.
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Ericsson received award for best contribution to LTE R&D [May 23, 2011]
- Ericsson received Informa LTE Award at LTE World Summit in Amsterdam
- Recognized for the best contribution to research and development for LTE
- Recognition for Ericsson’s strong R&D asset
Ericsson envisions a networked society where everything that can benefit from a connection will have one. LTE is a key enabling technology for making that shift. Hence, relevant and continuous investments in R&D within LTE continue to be essential for Ericsson.
On Tuesday May 17, Ericsson received Informa’s LTE Award at LTE World Summit in Amsterdam for best contribution to R&D for LTE. The award recognizes the contribution towards the research and development of LTE regarding investments made into R&D and research projects undertaken and how the R&D activities have had a positive impact on making LTE commercially successful.
As a result of its extensive investments in R&D and field experience of LTE deployments, Ericsson has had the highest impact on the released LTE specifications and expects to hold 25 percent of all essential patents in LTE. Ericsson has been trusted to supply the large majority of the commercial LTE networks globallyincluding the world’s first commercial LTE network as well as the world’s largest commercial installation of LTE to date. LTE today covers 200 million people and Ericsson networks enable 130 million of those to enjoy a LTE service.
To secure a fast and smooth commercial rollout, Ericsson focuses on supporting user experience being the preferred and largest LTE chipset verification partner and introducing Self Organizing Networks (SON) in the LTE environment. The Ericsson solution for Self Organizing Networks (SON) is crucial for the quick deployment of commercial LTE, offering customers standardized “plug and play” networks with a high degree of automation, saving time while improving performance.
Including all technology areas, Ericsson holds a total of 27 000 granted patents, employs more than 18,000 persons in R&D units spread over 17 countries.
Ericsson wins LTE standards award [May 27, 2010]
Ericsson Research has won an award for the best contribution to LTE standards at the Informa LTE Awards 2010, adding another feather in its 4G technology cap.
Held in conjunction with the LTE World Summit 2010 in Amsterdam that ended on May 19, the LTE Awardscelebrated growth and success across the industry.
Ericsson has had a leading role in developing LTE as a 4G technology from its initial research cooperation to the finalized releases of the standard. It beat competitors in the Best Contribution to LTE Standards category, in which contenders were required to state the contribution they have made to the development of standards and specifications for LTE technology.
“It is really great that our contribution has been acknowledged,” says Mikael Höök, director of Radio Access Technologies within Ericsson Research. “Before the standardization even started we were very active in defining the framework for it. Once it started within 3GPP, we have been very active and shown a huge commitment to it.”
“We need to remember that LTE is continuously evolving and will do so for many years, and that includes standardization of new features and new functionalities in LTE. To maintain our leadership, we need to remain focused and innovative, evolving standards and ensure that our products are unique to make sure we have the solutions that operators are asking for,” he says.
David Astély, Joakim Bergström, Erik Dahlman and Stefan Parkvall from Ericsson Research were acknowledged for their roles in producing high-quality LTE specifications, enabling an early commercial launch of LTE mobile broadband. This has helped generate global industry trust and commitment to the LTE technology.
Next generation LTE, LTE-Advanced or LTE Rel-10 is the next step in radio access technology [Dec 21, 2010]
Authors: Stefan Parkvall, Anders Furuskär, Erik Dahlman
Whatever the name – next generation LTE, LTE-Advanced or LTE Rel-10 – the next step in LTE evolution allows operators to introduce new technologies without putting existing investments at risk.
LTE radio access technology is continuously evolving to meet the requirements of regulators, operators and users. The first fully commercial and operational 4G mobile broadband systems, currently being deployed, are based on the first release of LTE, 3GPP Rel-8, which was finalized in 2008. Rel-9, finalized at the end of 2009, added support for broadcast/multicast services, positioning services, and enhanced emergency call functionality, as well as enhancements for downlink dual-layer beam forming.
Today, the main focus of 3GPP is the next generation of LTE evolution, Rel-10, often referred to as LTE-Advanced. Rel-10 further extends the performance and capabilities of the LTE radio access technology, and meets all of the requirements for IMTAdvanced as defined by ITU.
In October 2010, ITU completed the assessment of submissions for global 4G mobile wireless broadband technology, LTE Rel-10 (submitted by 3GPP) was one of two technologies accorded the official designation of IMT-Advanced.
This article provides a brief introduction to IMT-Advanced, followed by a description of the extensions to LTE introduced as part of 3GPP Rel-10. It concludes with system-level results that illustrate the ability of LTE Rel-10 to fulfill and even surpass the IMT-Advanced requirements.
Long Term Evolution (LTE) – An Introduction [June 1, 2009]
The internet generation is becoming used to having broadband access everywhere. Of the estimated 3.4 billion people who will have broadband by 2014, about 80 percent will be mobile broadband subscribers – and the majority will be served by High Speed Packet Access (HSPA) and Long Term Evolution (LTE) networks.
People can already browse the internet or send e-mails using HSPA-enabled notebooks, replace their fixed DSL modems with HSPA modems or USB dongles, and send and receive video or music using 3G phones. With LTE, the user experience will be even better. It will enhance more demanding applications such as interactive TV, mobile video blogging, advanced games and professional services.
In capacity terms, LTE already meets key 4G requirements, providing downlink peak rates of at least 100Mbit/s. Its infrastructure is designed to be as simple as possible to deploy and operate, through flexible technology that can be used in a wide variety of frequency bands.
LTE will also be available in a wide range of terminals; not only in next-generation mobile phones but also in notebooks, ultra-portables, cameras, camcorders, mobile broadband routersand other devices that benefit from mobile broadband.
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Strategic cooperation with Datang for mobile technology development in China [April 20, 2010]
- Richer mobile communications for millions of Chinese consumers
- Research, development and commercial cooperation within TDD technology
Ericsson (NASDAQ:ERIC) has signed a memorandum of understanding to establish strategic cooperation with Datang Telecom Technology & Industry Holdings Co. Ltd. (Datang) to jointly develop advanced TDD solutions, with the goal to deliver richer mobile communications to consumers in China and around the world.
As part of the memorandum of understanding, Ericsson will start integrating Datang’s current best-in-class TD-SCDMA radio access network equipment into its own 3G mobile communications offering.
More than six million mobile users in China are already enjoying mobile services through this technology. TD-LTE being the next generation of TD-SCDMA technology is also being tested pre-commercially to satisfy the growing appetite for higher speed and richer applications of the Chinese mobile subscribers in due time.
Ericsson set up a joint research center with Datang in Beijing as early as January 2008 to carry out research cooperation in TDD technology. The strategic cooperation formed now takes the relationship between the two parties to a substantially new level.
The strategic cooperation aims to leverage Ericsson’s leading position in global mobile communications, its unique experience from global LTE commercial deployment and its common platform for FDD and TDD, as well as Datang’s industry-leading expertise in TDD technology. Such move will increase the industrialization capabilities of TDD solutions by achieving economies of scale, improve the interoperability of operators’ 2G/3G/4G networks, and provide support to a successful commercial launch of TD-LTE in China in the near future.
“Leveraging our global leadership position in LTE, we have been firmly committed to evolving TD-SCDMA to TD-LTE,” said Mats H Olsson, Head of Region China & North East Asia of Ericsson. “Now we are further strengthening that commitment by this strategic cooperation with Datang. Our promise remains the same: we will always strive for providing the best TDD products and services to the Chinese consumers and to the world.”
Chen Shanzhi, Vice President and CTO of Datang Telecom Technology & Industry Group said: “Ericsson is the world-renowned telecom solutions and services provider. The cooperation between Ericsson and Datang to jointly develop TDD products and solutions demonstrates the recognition of Datang’s innovative R&D results, industrialization and market capabilities in the TDD field from mainstream telecom suppliers in the world. We believe that our joining forces will drive the globalization of TD-SCDMA and play an important role in the industrialization of TD-LTE in the long run.” Chen Shanzhi continued, “The strategic cooperation that we establish now will help both parties to fully leverage on our respective resources so that we can together provide products and services that meet the requirements of China Mobile.”
Datang Telecom Group is the initiator of the 3G mobile communication TD-SCDMA international standard, the owner of its core intellectual property rights and an important promoter of its industrialization.
Ericsson supplies largest LTE network [Dec 14, 2009]
TeliaSonera has launched the world’s first and largest commercial Long Term Evolution (LTE) service in Stockholm, supplied by Ericsson. This historic rollout was completed well ahead of plan on December 14, 2009. TeliaSonera’s mobile broadband commercial network in Stockholm is the fastest and largest in the world to date.
Carl-Henric Svanberg, President and CEO of Ericsson, says he is excited about this historic moment: ”The new era of mobile broadband has just begun today. With LTE, so-called 4G, your mobile broadband experience is moving to unequalled levels. The LTE speed gives you an absolutely effortless feeling of broadband access.”
Kenneth Karlberg, President and Head of Mobility Services, TeliaSonera says: ”We are very proud to be the first operator in the world to offer our customers 4G services. Thanks to the successful cooperation with Ericsson we can offer 4G to our customers in Stockholm earlier than originally planned.”
LTE, the next generation of mobile communication technology, is designed for transferring huge amounts of data in a most cost and energy efficient way, optimizing the use of frequency band and realizing fiber-like access speed over the air. With decreased latency, consumers can now enjoy whatever service is available online – high definition (HD) video, network games, you name it – effortlessly and on the move.
Downtown Stockholm is now covered by the Ericsson LTE network, making it the largest LTE deployment to date. TeliaSonera’s subscribers are the first to have access to the LTE service by commercially available Samsung LTE dongles.
Ericsson has completed commercialization of its LTE products, and larger-scale production is ready for further deployment. Interoperability has been tested thoroughly with many different devices in different
LTE rollout for AT&T in the US [Feb 10, 2010]
- AT&T to build LTE network
- Ericsson named as key supplier for LTE equipment
- Commercial launch scheduled to begin 2011
LTE is the latest step in a wireless evolution that Ericsson (NASDAQ: ERIC) began with AT&T over two decades ago and is part of AT&T’s ongoing efforts to innovate and invest in mobile broadband.
AT&T serves more than 85.1 million customers and has seen mobile broadband growth of more than 5,000 percent over the past three years. Smartphones are just one example of innovation made possible by investment in mobile broadband.
After extensive testing of equipment from multiple suppliers in lab and field environments, AT&T chose to extend its existing relationship with Ericsson for LTE deployment. The agreement also complements AT&T’s strategy to continue to boost the speed and performance of 3G mobile broadband to deliver the best, most advanced customer experience for customers throughout the evolution toward LTE.
As part of this multi-year agreement, Ericsson expands its key supplier role with AT&T by delivering LTE network equipment as well as a full suite of services to design, deploy and optimize the LTE network.
AT&T plans field trials of LTE technology later this year, and commercial deployment is scheduled to begin in 2011.
“The announcement is an important step forward in our ongoing mobile broadband strategy, which is focused on delivering the best possible combination of speed, performance and available devices for customers at every level of technology deployment,” said John Stankey, president and CEO, AT&T Operations. “AT&T has a key advantage in that LTE is an evolution of the existing GSM family of technologies that powers our network and the vast majority of the world’s global wireless infrastructure today.”
Hans Vestberg, president and CEO, Ericsson said: “Our ability to work together to meet the demands of a rapidly changing market has been a crucial element in gaining AT&T’s continued confidence. We will work just as hard to secure a smooth rollout of LTE and support AT&T in introducing new consumer and business services moving forward.”
AT&T previously named Ericsson as a key supplier for wireline accessproducts and services. Ericsson can offer wireline solutions to accelerate AT&T’s ability to bring new broadband-based products and services to market.
To date, Ericsson has signed commercial LTE contracts with four other major global operators, two of which are in the United States, the world’s fastest growing LTE market.
LTE, the next generation of mobile communication technology, enables the fast transfer of huge amounts of data in an efficient and cost-effective way, optimizing the use of the frequency spectrum. With increased speed and decreased latency, consumers can enjoy a wide range of applications (real-time web, online gaming, social media collaboration and video conferencing) effortlessly and while on the move. LTE will meet the demands of new and enhanced mobile internet applications of the future.
Ericsson has been driving open standards and has had the highest impact on the released LTE specifications. Ericsson expects to hold 25 percent of all essential patents for LTE, making it the largest patent holder in the industry.
Notes to editors:
[a small country operator example]
Ericsson selected by Magyar Telekom to modernize its network [May 4, 2011]
- Market leader Magyar Telekom in Hungary chooses Ericsson as sole partner to modernize its radio access network and prepares for LTE
- New contract involves total overhaul of radio access network
With ever-increasing demands for data services and a strong commitment to providing the best available network performance and quality to its customers, leading Hungarian operator Magyar Telekom, of the Deutsche Telekom Group, has chosen Ericsson (NASDAQ: ERIC) to undertake a complete overhaul of its radio access network. The overhaul will drastically decrease Magyar Telekom’s operational costs while further expanding mobile broadband service performance and coverage.
Ericsson will transform Magyar Telekom’s 2G and 3G networks using the multi-standard RBS 6000 radio access network, which will also be ready for 4G/LTE functionality once licenses have been allocated.
Istvan Maradi, Chief Technology Officer of Magyar Telekom says:,”Our partner, Ericsson, will make sure our network will meet the most demanding expectations and help us to stay on top in Hungary. It is also makes sense for us to prepare our network for easy introduction of LTE functionality by using Ericsson’s multi-standard network.”
Nils de Baar, Head of Global Account for DT Group at Ericsson, says: “We believe in Magyar Telekom’s wise decision to introduce a multi-standard technology when the aging 2G network needs a strong boost. This will bring both a reduction in OPEX and a better user experience, while also preparing the network to meet the ever-growing demand for mobile broadband. This is a prestigious obligation for us and we will make every effort to meet our customers’ expectations.”
Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson today has the largest R&D operation in the country. Emil Nilsson, Head of Customer Unit Central Europe and President of Ericsson Hungary, said: “This great win further emphasizes the importance of our long presence in the country and strong focus on technology leadership. With the agreement with Magyar Telekom, Ericsson has teamed up with the market leading operator once again in Hungary.”
Notes to editors:
Ericsson Hungary
Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson Hungary believes it is the task of Ericsson to participate in developing the future of mobile and broadband internet communication with innovative solutions and to play a determinant role in forming the world of telecommunications through its activities related to the most advanced, leading research and technologies. Hungary, and the R&D center operating in the country, are to play a leading role in achieving this – of the almost 1500 employees in the country, more than 1000 are working in research and development, making Ericsson the largest company in Hungary dealing with telecom research and development. This year’s centenary milestone will be marked by two special achievements: one is the continual development of R&D activities, the other is today’s announcement that the market-leading operator has chosen the market leader in technology.
http://www.ericsson.com/yourbusiness/telecom_operators/mobile-broadband
Vestberg foresees industry shift [Feb 15, 2010]
- 3 billion new mobile broadband subscriptions in next five years
- Industry focus on network capacity and quality
- Innovation, speed and flexibility key success factors
Speaking at Ericsson’s (NASDAQ:ERIC) press conference at the GSMA Mobile World Congress in Barcelona Hans Vestberg, President and CEO, said, “Our future success will be determined by the ability to see beyond technology, stay ahead of our customers and solve their problems before they are even aware of them. This will require us to always put our customers first, always have the best competence and to drive innovation throughout the customer relationship.”
“In the past decade telecommunications have become the nerve system of the world. The number of mobile subscriptions worldwide has grown sixfold to 4.6 billion. Mobile broadband has had its breakthrough and we believe that we will see 3 billion new mobile broadband subscriptions in the next five years.
“We forecast that by 2015 mobile PC subscriptions will have grown six times and the traffic generated will grow more than 50 times compared with the end of 2009. In the same time period smartphone devices will grow four times and the traffic they generate will have grown more than 25 times. The rapidly increasing traffic puts a focus on network capacity and quality.
“We envision 50 billion connected devices by 2020. Patients will be remotely connected to hospitals, trucks will be online with logistics centers for efficient routing, and city students will be connected to students in rural villages halfway around the world. Several operators have already established machine-to-machine departments to meet these demands. In this development we have to move from traditional telecom to IP, from hardware to software and from network rollouts to network evolution.
“HSPA and 4G/LTE will enable the 50 billion connected devices and the continued traffic growth. Several leading operators have given us the confidence to deliver their 4G/LTE networks and we have established technology leadership and scale advantages.
“The overall LTE package with products and services is very competitive. We have taken these products to mass production and can manufacture on a large scale, which is a clear competitive advantage. The competition is fierce, but we can have grounds for having good self-confidence.”
Following the recent win with AT&T Ericsson now supplies its 4G/LTE solutions to operators that have a total of some 240 million subscribers. In the audience was Mr John Donovan, Chief Technology Officer at AT&T who briefly commented on his company’s plans for its LTE buildout and the reason for selecting Ericsson as its LTE equipment supplier.
Hans Vestberg continued, “In 2009 we significantly strengthened our position in North America. The rationale for the acquisition of the Nortel CDMA and LTE operations was to extend our footprint, expand customer relationships and gain a profitable CDMA business in North America. As the integration progresses, we are seeing opportunities for further CDMA business also outside North America.
“As the industry again moves into new territories, our role as a vendor must shift from just being a technology and services supplier to being a business enabler. Operators are looking to us to manage the increasing complexity of their networks so they can concentrate on enhancing the user experience. Our continued success in this area shows the value of our services offering. We will have to combine our strong technology leadership position and services capabilities to provide value to our customers. We have to drive innovation in both technology and business models,” concluded Vestberg.
Hans Vestberg, President and CEO
Notes to editors:
- Youtube: On Hans Vestberg’s whiteboard: http://www.youtube.com/watch?v=_qjyYawVOu0
- LTE Rollout for AT&T in the US: http://www.ericsson.com/thecompany/press/releases/2010/02/1382917
- Ericsson LTE Achievement List: http://www.ericsson.com/ericsson/press/facts_figures/lte_achievement.shtml
- Executive Leadership Team strengthened by two regional heads: http://www.ericsson.com/thecompany/press/releases/2010/02/1381506
Ericsson part of winning bid for Nortel’s patent portfolio [July 1, 2011]
- Ericsson’s contribution to transaction USD 340 million
- Expected to close in the third quarter of 2011
As announced separately by Nortel Networks Corporation, a consortium of certain technology companies, of which Ericsson (NASDAQ:ERIC) is a part, emerged as the winning bidder for all of Nortel’s remaining patents and patent applications for a cash purchase price of USD 4.5 billion. The transaction is subject to approval by the United States and Canadian Bankruptcy Courts.
The Nortel patent portfolio comprises approximately 6,000 patents and patent applications from information and communication technologies (ICT) industry, including telecommunications, internet search and social networking. It covers mobile, LTE and data networking as well as optical, internet, service provider, semiconductors and other patent portfolios.
Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, says: “The Nortel patent portfolio reflects the heritage of more than 100 years of its R&D activities and includes some essential patents in telecommunications and other industries. We believe the consortium is in the best position to utilize the patents in a manner that will be favorable to the industry long term.”
SEB Enskilda is acting as financial advisor to Ericsson in the transaction.
Notes to editors:Read more at www.nortel.com/ [Nortel Announces the Winning Bidder of its Patent Portfolio for a Purchase Price of US$4.5 Billion: … After a multi-day auction, a consortium emerged as the winning bidder with a cash purchase price of US$4.5 billion. The consortium consists of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony. …]
Ericsson closes the Acquisition of GDNT, China [May 12, 2011]
- Ensures continued development of CDMA and GSM businesses
- All assumed agreements will be honored and fulfilled
- Adds R&D, manufacturing and services capabilities
Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire certain assets of the Guangdong NortelTelecommunications Equipment Company Ltd (GDNT). This acquisition gives Ericsson talented R&D engineers, manufacturing and services professionals, as well as manufacturing and research facilities in the China region and ensures continued development of the CDMA & GSM businesses.
“With these new assets, we can even better support our customers globally,” said Rima Qureshi, Senior Vice President and Head of Business Unit CDMA Mobile Systems. “Our new and agile employees complement the existing R&D, manufacturing and services capabilities of our business.”
Mats H Olsson, President of Ericsson China & North East Asia said: “The completion of this acquisition reaffirms our strong commitment to the China market, while greatly enhancing our existing R&D, manufacturing and services capabilities in the region. I’m very happy to welcome this new source of energy into the Ericsson family and look forward to its continuous contribution to the development of GSM and CDMA markets not only here in the region, but also in the world.”
Today’s closing follows the announcement on December 1, 2010, that Ericsson was entering into an asset purchase agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT).
Some 1,000 former GDNT employees, including approximately 550 R&D engineerswill be integrated in to the Ericsson group over the coming months and will work under the Ericsson brand effective today. Former GDNT customers gain a business partner dedicated to the ongoing support of their networks and the assurance of a seamless transition. Manufacturing and Services will operate as a separate business entity, known as “Ericsson (Guangdong Shunde) Communications Company Limited, effective immediately.
SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.
Notes to editors:
Pictures of quote: www.ericsson.com/ericsson/press/photos/management.shtml
Acquisition of GDNT, an R&D and services company in China [Dec 1, 2010]
- Secures continued development of CDMA and GSM businesses in China
- Complements existing R&D and services capabilities in the region
- Purchase price is USD 50 million
Ericsson (NASDAQ:ERIC) has today signed an agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT). The purchase is structured as an asset sale at a cash purchase price of USD 50 million on a cash and debt free basis, subject to final balance sheet adjustments. The transaction is also subject to customary regulatory approvals and other conditions.
GDNT is a leading research, development and manufacturing company based in China and an important supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel. GDNT was founded in 1995 as a joint venture between Nortel, a Canadian Telecommunications Company and local Chinese corporations and telecom operators. The transaction also includes R&D facilities, manufacturing facilities as well as support and customer service in China. Some 1,100 employees, including approximately 550 R&D engineers will be integrated in to the Ericsson group over the coming months.
“We are very happy to welcome this key competence into Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA Mobile Systems unit. “We have built a strong foundation with the CDMA & GSM teams acquired from Nortel. With these new assets, we take control of our business by acquiring capabilities for the continued development of the CDMA & GSM businesses.”
“The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region,” said Mats H Olsson, President of Ericsson China & North East Asia. “It will no doubt allow us to provide even better support to our customers across the region who are serving one of the largest GSM and CDMA subscriber bases in the world.”
The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
Notes to editors:
Pictures of Rima Qureshi and Mats H Olsson:
www.ericsson.com/ericsson/press/photos/management.shtml
Acquisition of Nortel’s stake of the joint venture LG-Nortel [April 21, 2010]
- Strengthened ability to serve the Korean market and reach new customers
- Second largest installed base with all leading Korean operators
- Purchase price is USD 242 million on a cash and debt free basis
- New name of the joint venture will be LG-Ericsson
Ericsson (NASDAQ:ERIC) has today entered into a share purchase agreement to acquire Nortel’s majority shareholding (50%+1 share) in LG-Nortel, the joint venture of LG Electronics and Nortel Networks. The transaction is subject to customary regulatory approvals.
This acquisition will significantly expand Ericsson’s footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country. Furthermore, the acquisition will provide Ericsson with an industrial base and the ability to build new customer relationships.
The joint venture includes important contracts with Korean operators such as KT, LG Telecom and SK Telecom.
LG-Ericsson will become one of the major telecom players in Korea.
“Korea is one of the largest telecom markets with advanced end-user demand of new services. A strengthening of our position through the collaboration with our new partner LG Electronics will enhance our position for future technology shifts such as LTE,” said Hans Vestberg, President and CEO of Ericsson.
“LGE is pleased to have Ericsson as a new partner in this joint venture,” said Yong Nam, Vice Chairman and CEO of LG Electronics. “Ericsson will provide global industry experience and technical expertise that will benefit both customers and employees. We look forward to a fruitful future collaboration.”
“LG-Ericsson is expected to provide the Korean market with leading technology and customer supports in cooperation with Ericsson’s Global Leadership in Telecommunication market. We are excited by the new perspective for our company.” said Jae Ryung Lee, CEO of LG-Nortel.
The joint venture was established in 2005 through the contribution by LG Electronics of its telecommunications systems business and by Nortel of its Korean distribution business. The focus of the joint venture has been to develop and market large scale telecommunications systems such as WCDMA, CDMA and LTE for telecom service providers in Korea as well as enterprise products and services. In 2009, LG-Nortel generated approximately USD 650 million of sales and had 1,300 employees.
The joint venture will continue to be headquartered in Seoul, Republic of Korea.
In July 2009, Ericsson and the Korean government agreed to cooperate in growing a green ecosystem based on 4G technology. The competence in LG-Ericsson is expected to contribute to this initiative.
The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
Acquisition of substantially all the assets of Nortel’s GSM business completed [April 1, 2010]
- Emphasizes commitment to North American market
- Accretive to Ericsson’s earnings within a year
Ericsson (NASDAQ:ERIC) has completed the acquisition of Nortel’s North American GSM business. Today’s closing follows the announcement on November 25, 2009, that Ericsson had entered into an asset purchase agreement for these assets.
“The addition of Nortel’s skilled GSM experts adds additional depth to Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA unit. “The CDMA team acquired from Nortel late last year has built a strong foundation already, and this new acquisition places us in a great position to support our growing list of North American and International customers.”
“The completion of this acquisition strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada and shows our commitment to the market,” said Angel Ruiz, Head of Ericsson North America. “The skill and experience the Nortel employees bring to Ericsson will help us continue to provide exceptional services to our customers.”
The acquisition includes the transfer of important GSM business with North American operators and further strengthens Ericsson’s ability to serve North America’s leading wireless operators. More than 350 employeesfrom Nortel will be integrated in the Ericsson group over the coming months.
The acquired operations are expected to be accretive to Ericsson’s earnings within a year after closing.
Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the two transactions Ericsson is acquiring certain assets of Nortel’s GSM business in North America and Kapsch is acquiring certain assets outside North America.
In 2009, Ericsson also acquired Nortel’s CDMA and LTE assets in North America.
Notes to editors:Photos of Rima Qureshi and Angel Ruiz:
www.ericsson.com/ericsson/press/photos/management.shtml
Ericsson to acquire Nortel’s North American GSM business [Nov 25, 2009]
Ericsson (NASDAQ:ERIC) was today selected as successful bidder to acquire certain assets of the Carrier Networks division of Nortel relating to Nortel’s GSM business in the US and Canada. The purchase is structured as an asset sale at a cash purchase price of USD 70 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to approval by courts in the US and Canada and customary regulatory approvals and other conditions.
Ericsson’s bid for Nortel’s GSM assets was made together with Kapsch CarrierCom AG of Austria. Under the agreements, Ericsson is acquiring certain assets of Nortel’s GSM business in North America while Kapsch is paying USD 33 million to acquire most of the remaining assets outside North America.
Ericsson acquires an installed GSM base, which expands its North American footprint. The acquisition further strengthens Ericsson’s ability to serve North America’s leading wireless operators, which now benefit from the strength of the combined resources in an experienced and financially strong company.
“Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada” said Hans Vestberg, incoming President and CEO of Ericsson. “Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees.”
The agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement Ericsson will offer employment to approximately 350 employees from Nortel. Nortel’s North American GSM operations generated approximately USD 400 million in 2008.
Ericsson’s North American business generated SEK 17.9 bn (USD 2.7 b) of sales in 2008, mainly from GSM and WCDMA equipment and associated services. Together with the recently announced acquisition of CDMA and LTE assets as well as the Sprint services agreement, the acquisition makes North America the largest geographical segment within Ericsson and encompasses some 14,500 employees, up from 5,000 at the beginning of 2009.
The acquired operations will contribute top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing.
Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
Notes to editors: Picture of Hans Vestberg:
– www.ericsson.com/ericsson/press/photos/management.shtmlPreviously announced information on Ericsson’s acquisitions of Nortel assets:
– www.ericsson.com/ericsson/press/releases/20090725-1330882.shtml
– www.ericsson.com/ericsson/press/releases/20091113-1354893.shtml
– www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
Ericsson closes the Acquisition of Nortel’s Multiservice Switch business [March 11, 2011]
- High level of data experience in key locations
- Customers gain a stable, committed partner
- The Multiservice Switch business will operate under the Ericsson brand as of today
Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire Nortel’s Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
“We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today’s closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel’s Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systemsover the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.
Notes to editors: Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Acquisition of Nortel’s Multi-Service Switch business [Sept 25, 2010]
- Confirms commitment to CDMA portfolio
- Strengthens R&D and services capabilities within CDMA
- Cash purchase of USD 65 million
Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch business (MSS). This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units.
An important part of the CDMA ecosystem, MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions. MSS serves a valuable need for a multiplicity of services that the backbone network provides today for our customers.
The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals.
“Today’s announcement is further evidence of our commitment to our CDMA portfolioas we continue to strengthen our in-house R&D and services muscle to deliver on the innovation, collaboration and support that our customers have come to expect from us.” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
Notes to editors:Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Ericsson strengthens global position with completion of Nortel acquisition in North America [Nov 13, 2009]
Ericsson (NASDAQ: ERIC) today completed its acquisition of substantially all of Nortel’s CDMA business and LTE assets in North America. With this acquisition, Ericsson enhances its leading global telecommunications equipment supplier position and will further its quest to bring high-speed data connectivity to people on the move.
The Nortel acquisition, on the heels of important breakthrough contract wins for Ericsson in North America, positions Ericsson as the leading provider of telecommunications technology and services in the United States and Canada.
“Separately, our two companies played leading roles in freeing voice telephony from its fixed limitations,” said Hans Vestberg, Ericsson’s incoming president and chief executive officer. “Together, we will do the same for broadband – make it mobile and bring the benefits of high-speed data connectivity to the majority of the world’s population”.
“This deal, along with our recently announced services and LTE agreements, demonstrates the importance of the North American market to Ericsson. Our strength in the region proves to our global customers that we are capable of continuing to provide the best equipment and services, in a scaleable and efficient way,” said Vestberg.
In terms of sales, North America will now be Ericsson’s largest region.According to Angel Ruiz, head of Ericsson’s North American operations, the acquisition significantly expands Ericsson’s footprint in North America, particularly as the region is emerging as an early adopter of LTE technology.
“Ericsson will enjoy new access to North American CDMA customers and can better support CDMA networks that will transition to LTE, “said Ruiz.
In addition to the talented people Ericsson gains through the combination, it will also benefit from intimate knowledge of Nortel’s CDMA customers and their networks. In turn, these operators gain a stable partner committed to the ongoing evolution of their networks, and the assurance of a seamless transition.
“I look forward to working with the more than 2,500 highly skilled colleagues in North America and China arriving from Nortel,” said Magnus Mandersson, president of Ericsson CDMA Operations. Combined with the transition of employees in the recent Sprint deal, Ericsson now has some 14,000 employees in North America, making it the company’s second largest market based on number of employees.
The acquisition includes the transfer of important CDMA contracts with North American operators including Verizon, Sprint, U.S. Cellular, Bell Canada, Telus and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.
Today’s closing follows the announcement on July 25, 2009, that Ericsson was entering into an asset purchase agreement of USD 1.13 b. for these assets, subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.
The former Nortel staff will be integrated into the Ericsson group over the coming months and the entity will work under the Ericsson brand beginning today.
The results for these operations will be consolidated by Ericsson on a pro-rata basis from the closing date proportionally within segments Networks and Professional Services. The report for the fourth quarter 2009 will be the first accounts including the new entity.
Notes to editors:
A video interview with Hans Vestberg available in our broadcast room on: www.ericsson.com/press/broadcastroom
Ericsson to acquire majority of Nortel’s North American wireless business [July 25, 2009]
Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire the parts of the Carrier Networks division of Nortel relating to CDMA and LTE technology in North America. The purchase is structured as an asset sale at a cash purchase price of USD 1.13 b. on a cash and debt free basis. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court and customary regulatory approvals.
Ericsson acquires an installed base and a healthy business that provides major operators CDMA technology and support services. In addition, the acquisition strengthens Ericsson’s ability to serve North America’s leading wireless operators in the evolution to LTE. The acquisition significantly expands Ericsson’s footprint in North America, particularly as this region is emerging as an early adopter of LTE technology. The acquisition also provides Nortel’s customers with a strong and reliable supplier for the future, many of which have expressed support for this acquisition.
“Acquiring Nortel’s North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE. Furthermore, by adding some 2,500 highly skilled employees, of which about 400 are focused on LTE research and development, Ericsson reinforces and expands a long-term commitment to North America. This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America,” said Carl-Henric Svanberg, President and CEO of Ericsson.
The agreement includes important CDMA contracts with North American operators such as Verizon, Sprint, U.S. Cellular, Bell Canada and Leap, as well as LTE assets, certain patents and patent licenses relating to CDMA and LTE. Nortel’s customers will also benefit from the continued support of Nortel’s installed CDMA base and the migration path to LTE.
Nortel’s North American CDMA operations generated approximately USD 2.0 b. in 2008, with robust profitability from a good product mix, which includes a significant amount of services. Going forward, research and development costs are expected to be relatively low in CDMA compared with other technologies.
Ericsson’s North American business generated SEK 17.9 (USD 2.7) b. of sales in 2008, mainly from GSM and WCDMA equipment and associated services. When coupled with the recently announced Sprint services agreement, this acquisition makes North America the largest region within Ericsson and encompasses some 14,000 employees.
The robust financial profile of the acquired operations will contribute significant top- and bottom-line additions to Ericsson. The transaction is expected to have a positive effect on Ericsson’s earnings within a year after closing. Magnus Mandersson, presently head of Ericsson Northern Europe, is appointed President of Ericsson CDMA operations, and Richard Lowe, Nortel, is appointed Chief Operating Officer.
“Our two companies share a long-standing commitment to technological excellence and innovation, and we look forward to welcoming the Nortel employees into Ericsson. We are truly impressed with their continuing outstanding performance during these challenging times,” said Magnus Mandersson, President of Ericsson CDMA operations.
“The agreement with Ericsson provides a strong and stable future for Nortel’s CDMA and LTE business. Customers will enjoy continued strong support from an industry leader as they look to evolve to LTE. Many employees will also have the opportunity to continue their work with Ericsson, bringing their innovation power and creativity to the wireless industry for years to come,” said Richard Lowe, President of Carrier Networks at Nortel.
Consummation of the transaction is subject to approval by the United States and Canadian Bankruptcy Courts and the satisfaction of regulatory and other conditions.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
NORTEL NETWORKS CORPORATION 2011 First Quarter Report
(Under Creditor Protection Proceedings as of January 14, 2009 — note 2)
…
Nortel Networks Corporation
Prior to Nortel’s significant business divestitures, Nortel Networks Corporation (“Nortel” or “NNC”) was a global supplier of end-to-end networking products and solutions serving both service providers and enterprise customers. Nortel’s technologies spanned access and core networks and support multimedia and business-critical applications. Nortel’s networking solutions consisted of hardware, software and services. Nortel designed, developed, engineered, marketed, sold, licensed, installed, serviced and supported these networking solutions worldwide. As further discussed in note 2, Nortel is currently focused on the remaining work under the Creditor Protection Proceedings (as defined in note 2), including the sale of the remaining assets, providing transitional services to the purchasers of Nortel’s businesses and ongoing restructuring matters.
As of March 31, 2011, Nortel has completed the sales of all of its businesses and regarding these businesses only the residual contracts not transferred to the various buyers remain.
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Significant Business Divestitures
On June 19, 2009, Nortel announced that it was advancing in discussions with external parties to sell its businesses. To date, Nortel has completed divestitures of all of its businessesincluding:
(i) the sale of substantially all of its Code Division Multiple Access (“CDMA”) business and Long Term Evolution (“LTE”) Access assets to Telefonaktiebolaget LM Ericsson(“Ericsson”);
(ii) the sale of substantially all of the assets of its Enterprise Solutions (“ES”) business globally, including the shares of Nortel Government Solutions Incorporated (“NGS”) and DiamondWare, Ltd., to AvayaInc. (“Avaya”);
(iii) the sale of the assets of its Wireless Networks (“WN”) business associated with the development of Next Generation Packet Core network components to Hitachi, Ltd.;
(iv) the sale of certain portions of its Layer 4-7 data portfolio to RadwareLtd.;
(v) the sale of substantially all of the assets of its Optical Networking and Carrier Ethernet businesses to CienaCorporation (“Ciena”);
(vi) the sale of substantially all of the assets of its Global System for Mobile communications (GSM)/ GSM for Railways (“GSM-R”) business to Ericsson and KapschCarrierCom AG (“Kapsch”);
(vii) the sale of substantially all of the assets of its Carrier VoIP and Application Solutions (“CVAS”) business to GENBANDInc. (now known as GENBAND U.S. LLC (“GENBAND”));
(viii) the sale of NNL’s 50% plus 1 share interest in LG-Nortel Co. Ltd. (“LGN”), its Korean joint venture with LG Electronics, Inc. (“LGE”), to Ericsson;
(ix) the sale of substantially all of the assets of its global Multi Service Switch (MSS) business to Ericsson; and
(x) the sale of substantially all of the Guangdong-Nortel Telecommunications Equipment Co. Ltd. (“GDNT”), assets to Ericsson Mobile Data Applications Technology Research and Development Guangzhou Company Limited and Ericsson(Guangdong Shunde) Communications Company Limited (collectively, “Ericsson China”).
On April 4, 2011, Nortel announced that it had entered into a stalking horse agreement with Ranger Inc., a wholly owned subsidiary of Google Inc. (“Google’) for the sale of its remaining patents and patent applications.
Business Divestiture Proceeds Received
As of March 31, 2011, of the approximately $3,183 in net proceeds generated through the completed sales of businesses proceeds of approximately $3,171 had been received. These divestiture proceeds include the following approximate amounts:
(a) $1,070 from the sale of substantially all of Nortel’s CDMA business and LTEAccess assets;
(b) $18 from the sale of Nortel’s Layer 4-7 data portfolio;
(c) $10 from the sale of Nortel’s Packet Core Assets;
(d) $932 from the sale of substantially all of the assets of Nortel’s ES business, including the shares of DiamondWare, Ltd. and NGS;
(e) $631 from the sale of substantially all of the assets of Nortel’s Optical Networking and Carrier Ethernet businesses;
(f) $67 from the sale of Nortel’s North American GSM business;
(g) $21 from the sale of Nortel’s GSM business outside of North America (excluding its GSM business in CALA) and its global GSM-R business;
(h) $137 from the sale of substantially all of Nortel’s CVAS business, net of an estimated reduction in purchase price (see below);
(i) $234 from the sale of Nortel’s 50% plus one share interest in LGN;
(j) $47 from the sale of substantially all of Nortel’s MSS business; and
(k) $4 from the sale of various Nortel business assets.
Nortel Commences Comprehensive Business and Financial Restructuring [Jan 14, 2009]
Nortel* Networks Corporation [NYSE/TSX: NT] announced that it, Nortel Networks Limited (“NNL”) and certain of its other Canadian subsidiaries will seek creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in Canada. As well, certain of the Company’s U.S. subsidiaries, including Nortel Networks Inc. and Nortel Networks Capital Corporation, have filed voluntary petitions in the United States under Chapter 11 of the U.S. Bankruptcy Code, and certain of the Company’s EMEA** subsidiaries are expected to make consequential filings in Europe. The Company’s normal day-to-day operations are expected to continue without interruption. Nortel remains 100% focused on serving customers worldwide through continued R&D investments and support of its product portfolio to fulfill customer needs.
Nortel made this decision with the unanimous authorization of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives. This process will allow Nortel to deal decisively with its cost and debt burden, to effectively restructure its operations and to narrow its strategic focusin an effective and timely manner.
The Company commenced a process to turn around and transform Nortel in late 2005, and the Company made important progress on a number of fronts. However, the global financial crisis and recession have compounded Nortel’s financial challenges and directly impacted its ability to complete this transformation. Nortel is taking this action now, with a $2.4 billion*** cash position, to preserve its liquidity and fund operations during the restructuring process.
“Nortel must be put on a sound financial footing once and for all,” said Nortel President and CEO Mike Zafirovski. “These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be. I am confident that the actions we’re announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. I want to reaffirm Nortel’s dedication to delivering world-class solutions and services to customers.”
The application under the CCAA will be heard later today by the Ontario Superior Court of Justice. The voluntary petitions under Chapter 11 were filed with the United States Bankruptcy Court for the District of Delaware. Nortel expects to be in a position shortly to provide an update regarding the consequential filings by certain of its EMEA subsidiaries.
The Company’s affiliates in Asia, including LG Nortel and in the Caribbean and Latin America, as well as the Nortel Government Solutions business, are not included in these proceedings and are expected to continue to operate in the ordinary course.
Nortel To Sell CDMA Business and LTE Assets; Company Advancing in Its Discussions With External Parties To Sell Other Businesses[June 19, 2009]
- Enters into a Stalking Horse Sale Agreement for CDMA Business and LTE Access Assets with Nokia Siemens Networks for US$650 million
- Sale of Businesses is Best Path for Nortel to Maximize Value While Preserving Innovation, Customer Relationships and Jobs to Greatest Extent Possible
- Will Apply to Toronto Stock Exchange to Delist Shares and Expects Creditor Protection Proceedings Will Ultimately Result in Cancellation of Shares
… The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN. This represents a significant portion of the employees associated with the assets being sold.
In addition to announcing this sale agreement, Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales.
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Commenting on the announcements, Nortel President and Chief Executive Officer, Mike Zafirovski said:
“Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible. This will ensure Nortel’s strong assets – technologies, customer relationships, and employees – continue to play an important role in driving the future of communications. The value of Nortel’s wireless business is recognized throughout the industry. The agreement we are announcing today is solid proof of that value and represents the best path forward for our other businesses.”
Zafirovski continued: “We also believe this will help provide clarity for our customers and employees. Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel’s technology and know-how. In addition, Nortel’s employees are doing a tremendous job under challenging conditions, stabilizing our business and delivering outstanding service to our customers. It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies.”
The wireless business is the second largest supplier of CDMA infrastructure in the world. It does business with three of the five top CDMA operators globally, including Verizon Wireless, which operates the largest wireless voice and data network in the United States.
Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks added:
“Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work.”
Lowe continued, “Nortel has a long track record of wireless innovation which has helped us secure a strong and loyal customer base. Throughout this sale process, our customers will continue to receive the highest quality support for their current networks. If successfully concluded, the buyer would gain access to leading edge technology, know-how, and embedded resources to support this significant customer base.”
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Details of Sale Process for CDMA Business and LTE Access Intellectual Property Rights
Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice.
In addition to the bidding process and U.S. and Canadian court approvals, consummation of the CDMA business and LTE Access transaction is subject to the satisfaction of customary and other conditions, including governmental approvals such as in Canada and the United States. The stalking horse asset sale agreement is also subject to purchase price adjustments under certain circumstances.
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Nortel Statement on Wireless Asset Auction [July 22, 2009]
As previously announced, on June 19, 2009, Nortel* [OTC: NRTLQ] entered into a stalking horse sale agreement with Nokia Siemens to sell substantially all of its CDMA business and LTE Access assets, subject to higher or better offers being received. On June 29, 2009, in the U.S., and June 30, 2009, in Canada, the courts established bidding procedures for the auction of these assets. The auction is scheduled to take place on July 24, 2009. Throughout this process, Nortel has made every effort to ensure all who want to participate can, with the goal of achieving the best outcome possible for employees and customers and maximizing value for its stakeholders.
Nortel had been in discussions with RIM regarding a related transaction but those discussions are currently on hold. Since the approval of the bidding procedures, Nortel has engaged with a number of potential bidders regarding the CDMA and LTE assets, including RIM. Other parties moved expeditiously to comply with the court approved procedures to become qualified bidders, and RIM did not object to the approval of these procedures during the court process. It was not until July 15 that RIM submitted a letter to Nortel asking to be a qualified bidder and, since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel’s valuable intellectual property assets. RIM has refused, however, to comply with the court approved procedures.
In order to participate in the court-approved bidding process, a qualified bidder is required to execute a standard confidentiality agreement. The agreement contains a common “standstill” provision that allows Nortel to ensure it is directly involved in any future negotiations on the sale of its assets. The standstill provision does not preclude future offers by a bidder to acquire assets consistent with any processes established by Nortel or the courts. Confidentiality agreements are a standard part of the auction bidding process and are designed to help run a fair process and protect a company’s confidential information, such as its intellectual property. All qualified bidders are subject to confidentiality agreements.
Nortel, the Canadian Monitor, the U.S. Unsecured Creditors’ Committee and the Ad Hoc Bondholder Group have reviewed the circumstances related to RIM and have concluded that all bidders must comply with the bidding rules in order to maintain the integrity of the court-approved process. Consistent with that process, the auction will commence as planned on Friday, July 24, 2009.
Nortel Selects Ericsson as Successful Bidder For CDMA Business and LTE Access Assets [July 25, 2009]
- Enters into Sale Agreement for CDMA Business and LTE Access Assets with Ericsson for US$1.13 Billion
- A Minimum of 2,500 Nortel Employees will be Offered the Opportunity to Continue their Work at Ericsson
- Canadian and U.S. Court Approvals of the Sale will be Sought at a Joint Hearing on July 28
TORONTO – Nortel* Networks Corporation [OTC: NRTLQ] announced today that it, its principal operating subsidiary Nortel Networks Limited, and certain of its other subsidiaries including Nortel Networks Inc., have concluded a successful auction of substantially all of Nortel’s CDMA Business and LTE Access assets. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidderwith a purchase price of US$1.13 billion. The bid is subject to court approvals in the U.S. and Canada as well as regulatory and other customary closing conditions and certain post-closing purchase price adjustments.
If approved by the courts, Ericsson will purchase Nortel’s CDMA business which is the second largest supplier of CDMA infrastructure in the world, and substantially all of Nortel’s LTE Access assets giving it a strong technology position in next generation wireless networks. Also as part of this agreement, a minimum of 2,500 Nortel employees supporting the CDMA and LTE Access business will receive offers of employment from Ericsson.
Commenting on the announcement, Nortel President and Chief Executive Officer, Mike Zafirovski said:
“The anticipated sale of our CDMA business and LTE Access assets to Ericsson for $1.13 billion represents a very positive prospect for our customers who will be able to continue their relationships with a long term partner; for employees who will have new opportunities at Ericsson and for many of our other stakeholders. I want to especially thank our customers for their tremendous support during the process, which contributed to such a positive outcome.”
“Nortel remains focused on finding the right buyers for our other businesses while continuing to maintain excellent customer service levels. We are determined to maximize value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. With today’s agreement and through the anticipated sales of the Company’s other businesses, Nortel will leave its mark on the industry for decades to come.”
Commenting on the sale, Richard Lowe, President of Carrier Networks at Nortel, said:
“The outcome of today’s auction underscores the value the industry places on Nortel’s CDMA business and LTE Access assets, which include a strong customer base and world-class operations. Nortel’s extremely talented and committed employees have been an integral part of our success in wireless and we are very pleased that so many of them will have the opportunity to continue their innovative work with Ericsson.”
Carl-Henric Svanberg, President and CEO of Ericsson said:
“The agreement between Nortel and Ericsson brings together leading-edge wireless innovation from two of the world’s top telecommunications suppliers. We at Ericsson look forward to integrating Nortel’s products and talented employees into our business and realizing the full potential of our combined strengths. Ericsson is committed to meeting the needs of our new CDMA customers today and bringing the next generation of mobile broadband to the world with LTE.”
While today’s auction is a significant step in the overall sale process, it is not the final step. Nortel will work diligently with Ericsson to close the sale later this year. Nortel will seek Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing on July 28, 2009.
As previously announced in the Company’s June 19 and July 20, 2009 press releases, the Company does not expect that its common shareholders or the preferred shareholders of Nortel Networks Limited will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests
IV. Nokia Siemens Networks (NSN)
Nokia Siemens Productivity Trails Ericsson’s [July 15, 2011]
Nokia Siemens Networks, which this week ended talks to sell a stake to buyout firms, needs to cut jobs to gain the option of independence as competition with rivals including Huawei Technologies Co. intensifies.
The phone equipment venture between Nokia Oyj (NOK1V) and Siemens AG (SIE) generated sales of about $254,000 per employee last year, 19 percent less than larger rival Ericsson AB, based on numbers from the companies’ financial reports. The figure for both manufacturers is sinking as selling prices for equipment such as base stations and packet-switching networks decline.
Nokia Siemens said this week that it plans to improve its competitiveness “as a standalone entity” while announcing the end of talks over a stake sale. The Espoo, Finland-based venture, which has been unprofitable for all but one quarter since it started in April 2007, has increased its headcount to about 73,000 from about 60,000 after additions for outsourcing and the acquisition of a Motorola Solutions Inc. unit. In Germany alone, Nokia Siemens has almost 10,000 workers.
… Nokia said July 12 that it’s open to other ownership options for the 50-50 venture, without elaborating. … Nokia, which has more shared interest with Nokia Siemens since both sell to phone companies, is paring down assets that aren’t essential to its main devices product lines. …
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The joint venture has lost 3.35 billion euros from operations, restructuring, and impairment charges for Siemens since it was formed. Siemens Chief Financial Officer Joe Kaeser has repeatedly said that telecommunications is no longer a core business for the company.
Nokia Siemens and Ericsson have focused on wireless network equipment such as base stations and core networks and have expanded in software and services to a greater extent than competitors Alcatel-Lucent SA, Huawei and ZTE Corp. (000063) Nokia Siemens gets about half its revenue from services, including running entire networks remotely from India and Portugal. Ericsson counts about 40 percent of its revenue as services.
Nokia Siemens had 20.4 percent of the wireless equipment market in the first quarter, up from 18.2 percent a year earlier, according to Redwood Shores, California-based researcher Dell’Oro Group. Huawei was almost tied with Nokia Siemens at 20.3 percent and Ericsson had 34.5 percent. Alcatel- Lucent’s share was 13.7 percent.
Nokia Siemens announced in November 2009 that it would eliminate between 7 percent and 9 percent of the 64,000 positions it had at the time. The aim was to cut 500 million euros in annual costs by the end of this year. It has reported more than 1.05 billion euros in operating losses since the job cuts announcement.
“They need to remove the question mark around the ownership structure,” Sylvain Fabre, an analyst at Stamford, Connecticut-based Gartner Inc., said in a phone interview. “The first thing you learn in business school is you never do 50-50, you do at least 51-49. Until you really know who’s in charge you don’t really know what direction is ultimately imposed in the company.”
Nokia Siemens Networks completes acquisition of certain wireless network infrastructure assets of Motorola Solutions [April 29, 2011]
- Pays US $975 million in cash
- Approximately 6900 employees will transfer to Nokia Siemens Networks
- Takes on responsibility for 50 operator customers in 52 countries
Nokia Siemens Networks and Motorola Solutions, Inc. (NYSE: MSI) today jointly announced that Nokia Siemens Networks has completed its acquisition of Motorola Solutions’ Networks assets paying US $975 million in cash. As of April 30 2011, responsibility for supporting customers of Motorola Solutions’ GSM, CDMA, WCDMA, WiMAX and LTE products and services transfers to Nokia Siemens Networks.
“The people, customers and technology we’ve acquired greatly complement our existing business by taking us into new markets and broadening our market share,” said Rajeev Suri, chief executive officer, Nokia Siemens Networks. “Our combined knowledge and experience will provide our newly expanded customer base with the means to grow by providing greater value to their subscribers.”
“Motorola Solutions is pleased to complete this transaction to combine our Networks team with an industry leader,” said Greg Brown, president and chief executive officer, Motorola Solutions. “This is great news for our customers, our investors and our people and will allow Motorola Solutions to further sharpen our strategic focus on providing mission-critical solutions for our government and enterprise customers.”
The acquisition strengthens Nokia Siemens Networks’ position in key regions, particularly North America and Japan, as well as with some of the world’s major service providers. Based on revenue, the addition of Motorola Solutions’ Networks assets makes Nokia Siemens Networks the third largest wireless infrastructure vendor in the United States and the leading non-Japanese wireless vendor in Japan. In addition, the acquisition reinforces Nokia Siemens Networks’ position as the world’s second largest wireless infrastructure and services provider.
As part of the deal, responsibility for supporting 50 operators across 52 countries, as well as approximately 6900 employees, will transfer to Nokia Siemens Networks. In addition, Nokia Siemens Networks is acquiring a number of research and development facilities including sites in the United States, China, Russia, India and the UK.
[Nokia Siemens Networks to Acquire Certain Wireless Network Infrastructure Assets of Motorola for US $1.2 Billion [July 19, 2010]
- Transaction expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.
- Nokia Siemens Networks targeting to gain incumbent relationships with more than 50 operators and strengthen relationships with others.
- Acquisition to enhance position of Nokia Siemens Networks in key wireless technologies; will give company large global footprint in CDMA.
- Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets.
- The companies expect to complete closing activities by the end of 2010.
… As part of the transaction, Nokia Siemens Networks expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. …
… Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters. …]
Nokia Siemens Networks to participate in large scale China TD-LTE trial [March 25, 2011]
Provides TD-LTE network, OSS, services for large-scale field trial in Hangzhou
With the approval of the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), Nokia Siemens Networks has become one of the first telecommunications equipment vendors to participate in the large-scale TD-LTE trial with China Mobile. Nokia Siemens Networks will offer its commercial 2.3GHz/2.6GHz TD-LTE equipment, professional services and management software to conduct the major field trial in Hangzhou.
Nokia Siemens Networks has already completed both 2.3 and 2.6GHz outdoor, and 2.3GHz indoor, single-system testing with TD-LTE. The company is one of the first global vendors to be selected for the large-scale TD-LTE field trials with China Mobile. In addition, Nokia Siemens Networks has conducted interoperability tests of its TD-LTE equipment with a number of TD-LTE devices of major suppliers. As stated by MIIT, Nokia Siemens Networks will cooperate with China Mobile to accelerate network construction, equipment installation, and network optimization according to the overall requirements and plan of the large-scale TD-LTE trial in Hangzou.
“Nokia Siemens Networks has built a complete TD-LTE business in China, integrating procurement, production, testing and maintenance with its Hangzhou R&D Center at the center of this value chain,” said Markus Borchert, head of Greater China customer operations at Nokia Siemens Networks. “The approval by MIIT confirms our long-term support for TD-LTE and our leadership driving the global ecosystem for unpaired frequency bands.”
In addition to its market-leading Single RAN Advanced radio equipment, Nokia Siemens Networks will provide network planning and network optimization services to ensure sustained network quality and performance. Configuration, monitoring and optimization for this project will be based on the company’s Network Management System, NetAct.
Technology talk: Accelerating mobile broadband with TD-LTE [NSN’s Unite magazine, Feb 11, 2011]
Enabling communications service providers (CSP) to take advantage of unpaired spectrum to deliver high speed mobile broadband, Time Division Duplex (TDD) LTE, or TD-LTE, became a global technology in 2010. Important milestones included the first TD-LTE call in India Broadband Wireless spectrum at 2.3 GHz and the success of TD-LTE tests by China’s Ministry of Industry and Information Technology(MIIT).
TD-LTE is a natural evolution of TD-SCDMA, and WiMAX networks and takes care of interworking, coexistence and roaming between different technologies. TD-LTE also helps WiMAX CSPs to enjoy the economies of scale, roaming and network sharing benefits of the large 3GPP ecosystem, therefore making it important for WiMAX and TD-LTE to co-exist.
Leading manufacturers are developing TD-LTE terminals, while chipset and platform vendors are announcing availability of multi-mode LTE (FDD and TDD) offerings to ensure CSP service roll-outs with one common technology platform. Nokia Siemens Networks has made significant contributions to TD-LTE development. The company’s ‘TD-LTE Open Labs’ facility in Hangzhou, China is fostering and accelerating developments by enabling vendors to undertake end-to-end testing and validate their solutions before delivery.
Nokia Siemens Networks readies TD-LTE for India [Oct 19, 2010]
First TD-LTE call on country’s Broadband Wireless Access spectrum*
Nokia Siemens Networks is the first company to successfully demonstrate the Time Division Duplex version of LTE (TD-LTE)** using broadband wireless access (BWA) spectrum in India. The first video call was made by Gurdeep Singh, chief operating officer of Aircel. The call was conducted with the 4G mobile technology running on commercial hardware at the Nokia Siemens Networks’ Bengaluru R&D facility. It marks an important milestone moving 2.3 GHz TD-LTE closer to commercial availability.
During the test, Nokia Siemens Networks demonstrated high-definition video streaming and three-way video conferencing. Using interoperable TD-LTE dongles from Samsung, the demo showcased a peak throughput speed of 110 megabits per second (Mbps) and low latency in the range of 10-20 milliseconds.
The end-to-end demonstration was based on Nokia Siemens Networks’ LTE equipment and software. These include the company’s award-winning Flexi Multiradio Base Station and Evolved Packet Core – which comprises Flexi NS (Network Server) and Flexi NG (Network Gateway) – and standard-compliant software.
TD-LTE technology promises enhanced delivery of broadband to laptops on the move and smartphone services, thanks to increased data rates, reduced latency and its scalable all-IP flat network architecture. This technology ensures high-speed mobile broadband connectivity and a superior performance from mobile applications across a wide range of devices.
“Today’s demo reiterates our leadership and commitment to getting TD-LTE into new market. It also demonstrates our regional and global progress in this area,” said Juha Lappalainen, head of mobile broadband sales at Nokia Siemens Networks. “Our TD-LTE trials across the globe prove our capability in driving rapid commercial TD-LTE network deployments aimed at facilitating a new wave of advanced mobile broadband services.”
“This is an important milestone in building the TD-LTE ecosystem in India,” added Urs Pennanen, head of India region, Nokia Siemens Networks. “TD-LTE over the Broadband Wireless Access spectrum is important for the country, as it will allow operators to offer voice and data to the masses. We are ready to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE in India.”
Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company is fully prepared and committed to support the LTE activities and is in talks with many operators globally. It is actively participating in tests and trials for both Frequency Division Duplex LTE (FD-LTE) and TD-LTE technologies, while working with telecom operators and device manufacturers to strengthen the ecosystem. Earlier this year, Nokia Siemens Networks successfully demonstrated TD-LTE trials during Shanghai World Expo, and TD-LTE data calls at the company’s R&D center in Hangzhou (China) and at Taiwan’s National Chiao Tung University.
Independent labs confirm Nokia Siemens Networks TD-LTE leadership [Aug 13, 2010]
- Meets full TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology
- Conducts world’s first high-definition TD-LTE video call including handover with a Samsung TD-LTE device
Nokia Siemens Networks has proven its leading role in advancing TD-LTE as it met the complete TD-LTE test specifications defined by China’s Ministry of Industry and Information Technology (MIIT).The successful completion of the trial in the 2.3GHz band at the MIIT lab in Beijing, China, marks an important milestone in the commercialization of TD-LTE. After the test, Nokia Siemens Networks also achieved the world’s first high-definition TD-LTE video call, including handover, with a Samsung TD-LTE device.
The high-definition video call demoshowcased interoperability between Nokia Siemens Networks’ LTE infrastructure and Samsung’s TD-LTE USB dongle, and marks a definitive step toward ensuring early availability of a functioning TD-LTE ecosystem for commercial deployments.
“We’ve achieved excellent results from this test and are happy to partner with Nokia Siemens Networks in driving the TD-LTE ecosystem further,” said Mr. Tong Wang, president of Beijing Samsung Telecom R&D Center. “Commercial readiness of devices is a key indicator for the success of a new technology and the current test results show that we are now well prepared for TD-LTE.”
“Meeting TD-LTE test specifications defined by MIIT and achieving the first high-definition video call with handover, are key milestones in our list of achievements, added Paul Pan, head of Network Systems, Greater China Region, Nokia Siemens Networks. “We will continue to collaborate with partners to accelerate our progress toward a comprehensive deployment of TD-LTE.”
Nokia Siemens Networks is at the forefront of TD-LTE development and commercialization, actively working with telecom operators and device manufacturers. The company recently announced the first TD-LTE interoperability data call with a prototype TD-LTE USB dongle from Samsung and the first TD-LTE video call between Shanghai and Taipei.
Nokia Siemens Networks sets up industry’s first TD-LTE Open Lab [April 16, 2010]
Provides smart phone and terminal testing facility to accelerate TD-LTE ecosystem
Nokia Siemens Networks has inaugurated a TD-LTE Open Lab at its Hangzhou R&D facility. The first such lab in the industry aims to provide practical know-how that will help telecom operators and TD-LTE device manufacturers across the globe deploy commercial TD-LTE quicker. Major TD-LTE smartphone and terminal manufacturers can use the lab to test the interoperability and functionality of their devices across TD-LTE networks.
“The development of terminals and devices has always been a bottleneck in the roll-out of new mobile technology,” said Mr. Sha Yuejia, vice president of China Mobile. “We are thus more than happy to see that Nokia Siemens Networks has established a cutting-edge terminal testing environment, an initiative that we support wholeheartedly. After all, a healthy ecosystem needs efforts from all stakeholders.”
Nokia Siemens Networks’ Open Lab will provide an end-to-end testing environment for verifying the compatibility of terminals and devices with the company’s TD-LTE network products and solutions. The lab will also provide consultancy and testing services to device manufacturers. Nokia Siemens Networks’ TD-LTE R&D center in Hangzhou is fully integrated into the company’s global network of LTE Centers of Competence. It is an ideal location for the new Open Lab, as the company can use the R&D center’s existing competencies, resources and assets to speed deployment of TD-LTE.
“This initiative will facilitate the holistic development of TD-LTE technology,” said Wang Tong, chief technology officer of Samsung China. “We are working hard to build-up the TD-LTE ecosystem. TD-LTE Open Lab will provide us with a common testing platform to prove the interoperability of our terminals with its networks before commercial rollout.”
“We are at the forefront of driving TD-LTE deployments, as we were the first to conduct a call fully compliant with the 3GPP Release 8 (March 09 baseline) standard using commercial network hardware,” said Zhang Zhiqiang, president of the Greater China Region at Nokia Siemens Networks. “The TD-LTE Open Lab is a key cooperation initiative that will help us align our solutions with major user equipment vendors and ensure that our networks fully interoperate with their devices for the benefit of all TD-LTE operators.”
While Nokia Siemens Networks will focus on a quick ramp-up of the Open Lab by leveraging existing R&D teams and assets, it is also putting in place an expert pool of interoperability testing (IOT) professionals to ensure optimum quality standards and define a long-term strategy for the lab.
Providing a live TD-LTE experience to operators in the region, Nokia Siemens Networks also recently kicked off a nationwide TD-LTE road show in China. Beginning in Beijing, the road show will cover more than ten provinces in three months, demonstrating the most advanced TD-LTE technology and applications.
Nokia Siemens Networks drives development of TD-LTE [March 4, 2009]
Following the industry’s first lab based TD-LTE demonstrations last year R&D in Hangzhou is being ramped up to support its commercial roll-out
Nokia Siemens Networks is gearing up for the launch of next generation Time Division Duplex Long Term Evolution (TD-LTE) technology in China. Following the industry’s first successful lab demonstrations conducted with leading operators in Germany last year, the company has further expanded its team in Hangzhou, China, to support the commercial roll out of TD-LTE.
Nokia Siemens Networks’ Hangzhou R&D center plays a pivotal role for the company. As well as driving innovation across GSM/EDGE, WCDMA/HSPA, LTE, I- HSPA and WiMAX technologies, Hangzhou’s 1,000 strong R&D team is being expanded to focus on supporting China’s home-grown TD-LTE technology through 2009. The company has been cooperating with leading operators in China and Europe to evaluate the performance of TD-LTE technology under various deployment situations and will continue this work with more advanced over the air tests and finally field trials in a pre-commercial multi-cell test network.
The TD-LTE first phase tests were completed in November last year and demonstrated the high throughput performance, in particular peak data rates and low latencies, of TD-LTE under various channel conditions as well as the robustness of the technology. The tests confirm that users will truly enjoy the superior mobile broadband experience promised by the LTE standard even in unpaired frequency spectrum.
“TD-LTE can catapult China to advanced next generation mobile broadband services and we are committed to putting significant resources to support its development and deployment,” said Marc Rouanne, head of the company’s Radio Access business. “In addition to the significant boost in ground resources, our fast rollout service capability and experiences in the region will help us in delivering cost efficient and high quality next generation mobile broadband networks to the benefit of operators and end users.”
Nokia Siemens Networks has played a pioneering role in China’s home grown technology standard TD-SCDMA and has developed a well proven network solution for this technology. In addition, it provides comprehensive delivery capability in related network planning, construction and optimization projects. The company’s expertise in TDD technology gained through deploying credible and competitive TD-SCDMA solutions in China, coupled with our global leadership in LTE puts us in an extremely advantageous position in the region.
A forerunner in LTE, Nokia Siemens Networks has made a long-term commitment through significant financial and R&D investment, across both Frequency Division Duplex (FDD) and Time Division Duplex (TDD) mode of operations. The company was the first to demonstrate LTE technology with data speeds in the 160Mb/s range as well as a successful handover between LTE and HSPA as early as 2006. The company continued breaking records in 2007 by demonstrating multi-user field trials in urban environments with peak data rates of 173 Mb/s. Launched in February 2008, Nokia Siemens Networks’ LTE capable Flexi base station is already shipping since Q3 2008, far ahead of competition. It is also one of the key contributors for standardization of both LTE modes in 3GPP.
V. Alcatel-Lucent (with special emphasis on lightRadio and related QorIQ Qonverge SoCs from Freescale quite essential for that)
China Mobile selects Alcatel-Lucent for TD-LTE trial network at World Expo 2010 [Nov 18, 2009]
Alcatel-Lucent (Euronext and NYSE: ALU) today announced that it has been selected by China Mobile to deploy a TD-LTE* trial network at the occasion of the World Expo 2010 in Shanghai (May 1 to Oct 31, 2010). The deployment will be the first in the world and follows Alcatel-Lucent’s first TD-LTE call on a third party terminal achieved earlier this year. The agreement was signed through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s Chinese flagship company.
Alcatel-Lucent‘s industry-leading TD-LTE platform will provide indoor coverage for 2 pavilions of World Expo 2010, namely the Theme pavilion and the Africa pavilion. Visitors will be able to enjoy advanced mobile services including ultra high speed internet access and HDTV at the exposition. Expected to have 200 participants and 70 million visitors, World Expo 2010 will open on May 1stnext year.
With the explosion of mobile data traffic that is underway today, service providers need to increase their wireless network capacity and to transform toward end-to-end IP networks in order to support a wide array of new revenue generating services while also driving down the operational cost of supporting the growing volume mobile broadband services. These needs are addressed by Alcatel-Lucent’s High Leverage Network™ architecture, which is intended to address the business, technical and operational challenges faced by service providers, enterprises and developers as they create, manage and market new applications. The High Leverage Network supports Alcatel-Lucent’s application enablement vision, which is focused on combining the trusted capabilities of service providers and enterprises with the speed and innovation of the Web to provide both consumers and business users with richer, more trusted and valuable experiences.
“China Mobile’s selection of our TD-LTE solution for this historical event further confirms that Alcatel-Lucent is playing a leading role in the evolution of 3G to 4G and that we are ready to help worldwide operators to take advantage of this technology,” said Olivia Qiu, President of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent in East Asia.
LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market. It is able to provide common platform for both TDD and FDD spectrum, which creates a truly global ecosystem, and enables all operators to take advantage of a common system and unrivalled economies of scale as they look to provide 4G wireless broadband services to their subscribers.
In February 2009, Alcatel-Lucent announced that it has completed the first data calls – involving terminals from third-party suppliers – using TD-LTE technology, demonstrating Alcatel-Lucent’s commitment to supporting a smooth evolution path to 4G for all service providers.
* TD-LTE: Long Term Evolution (LTE) technology for Time Division Duplex (TDD) spectrum
For more information about Alcatel-Lucent’s LTE solution, please visit: http://www.alcatel-lucent.com/lte
Alcatel-Lucent achieves record speeds on World Expo China 2010 TD-LTE network [Feb 15, 2010]
Alcatel-Lucent (Euronext Paris and NYSE: ALU)today announced it has successfully achieved record speed rates on China Mobile’s TD-LTE (time division duplex – long term evolution) trial network – which is being installed to support the 2010 World Expo in Shanghai. During extensive tests, peak rates of more than 80Mbps downstream were realized by the team from Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.The World Expo 2010, which will open on May 1stwith 70 million expected visitors, will provide a unique venue for all countries to demonstrate latest technological advances.
An industry’s first, these TD-LTE peak rates were achieved by using a single 20MHz spectrum band, carrying both the upstream and downstream traffic. And that’s an important differentiator versus previously announced breakthroughs in the LTE-FDD (frequency division duplex) space: the tests on China Mobile’s TD-LTE network show its readiness to cope with very high bandwidth demands as well, all while using half of the spectrum LTE-FDD networks require to accommodate peak throughputs of 100Mbps (downstream).
“These record speed rates on China Mobile’s TD-LTE trial network highlight Alcatel-Lucent’s commitment to providing our customers with an end-to-end LTE solution matching their specific spectrum and timing strategies,”said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit. “Visitors to the event will thus be able to enjoy ultra high-speed mobile Internet access and experience the next generation of high-definition multimedia demonstrations. This will stimulate the worldwide adoption of TD-LTE technology, as well as its future commercialization.”
“Following the industry’s first TD-LTE calls performed in February 2009, this new milestone further reinforces Alcatel-Lucent’s ability to make TD-LTE a reality, and once again demonstrates the reliability of Alcatel-Lucent’s LTE solutions,” he added.
The tests were run using Alcatel-Lucent’s end-to-end LTE solution – including eNodeBs (base stations), evolved packet core (EPC) and a range of third-party commercial terminals. Alcatel-Lucent provided its professional services expertise, encompassing network installation and software integration.
This significant milestone comes at the same time as Alcatel-Lucent announcing good progress on the TD-LTE field trial in Shunyi (Beijing)- initiated by China’s Ministry of Industry and Information Technology (MIIT). Using third-party terminals and following a successful completion of all mobile file systems (MFS) tests, Alcatel-Lucent thus further proves the readiness of its end-to-end LTE solution.
LTE is the next evolution in mobile network standards defined by 3GPP (Third Generation Partnership Project) and supports operations in both the paired spectrum and unpaired spectrum. Alcatel-Lucent is a pioneer in the LTE market, having a common platform for both the time-division duplex (TDD) and frequency-division duplex (FDD) spectrums – that enables all operators to take advantage of unrivalled economies of scale as they look to provide 4G wireless services to their subscribers.
About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also foundedthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models.
For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte
Alcatel-Lucent (Euronext Paris and NYSE: ALU)and China Mobile today announced that they have successfully completed the first high-definition video call over a TD-LTE network at the Shanghai World Expo. Leveraging Alcatel-Lucent’s network infrastructure and systems integration expertise, as well as a TD-LTE USB dongle from Innofidei and ASTRI, World Expo visitors can experience a new class of ultra high-speed mobile services – including fast Internet access, significantly improved FTP upload/download speeds, 3D games and 3D maps.
As one of the key suppliers of China Mobile’s TD-LTE network at the Shanghai World Expo, Alcatel-Lucent is providing indoor broadband mobile coverage in the Theme and the Africa pavilions to the more than 70 million expected visitors. The achievement with Innofidei and ASTRI, both industry-leading TD-LTE terminal chip makers and recognized terminal vendors for China Mobile’s TD-LTE network, results from a series of successful interoperability tests aiming at an acceleration of TD-LTE’s commercialization.
“It is great to see the growth of TD-LTE in China. This achievement demonstrates that the TD-LTE industry chain is maturing, which will help boost the technology’s commercialization and global adoption,” said China Mobile’s TD-LTE EXPO project manager.
“This is a significant milestone for Alcatel-Lucent in the TD-LTE space. The successful interoperability tests, and resulting demonstrations with leading terminal vendors, further demonstrate our commitment to create an open TD-LTE ecosystem,” said Romano Valussi, president of Alcatel-Lucent Shanghai Bell and head of Alcatel-Lucent’s China regional business unit.
“As a major chip maker, Innofidei is actively participating in efforts to promote the TD-LTE industry. We launched our TD-LTE project in 2007, conducting further research with ASTRI. We were proud to see our efforts recognized by being awarded the bid for terminals for China Mobile’s TD-LTE network at the 2010 World Expo in Shanghai,” said Innofidei CEO Dr. Tom Zhang.
“Hong Kong ASTRI is determined to develop key technologies to benefit local and regional high tech industry. The cooperation with Alcatel-Lucent and Innofidei this time further illustrates our technology advance in TD-LTE” said Dr. Cheung Nim-Kwan, CEO of ASTRI.
In November 2009, Alcatel-Lucent was selected by China Mobile to deploy the first TD-LTE network in the world. This February, Alcatel-Lucent achieved record speedsof more than 80 Mbps downstream by using a single 20MHz spectrum band to accommodate both upstream and downstream traffic.
Alcatel-Lucent’s end-to-end LTE solution is a key element of its High Leverage NetworkTM architecture, providing sufficient capacity for the ever-growing data traffic at the lowest cost per bit, all with the intelligence necessary to create new business opportunities for our customers. The company’s end-to-end LTE network solution includes eNodeBs (base stations),its Ultimate Wireless Packet Core, IP/MPLS mobile transport, a comprehensive IMS solution and the ng Connect ecosystem with content and application vendors.
Having been selected to support more than 45 LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE.
About Innofidei
Founded in Sept 2006 in Beijing Z-Park with operations in Beijing, Silicon Valley and Taipei , Innofidei dedicates itself to provide enabling IC and system solutions for mobile TV broadcast and telecommunication market.http://www.innofidei.com/
About ASTRI
The Hong Kong Applied Science and Technology Research Institute (ASTRI) was founded by the Government of Hong Kong Special Administrative Region in 2000 to enhance technological advances for Hong Kong through applied research. During the past years, ASTRI has been conducting a spectrum of world-class and customer-focused R&D, and has built teams of excellent researchers, produced a volume of intellectual properties and created real economic impact by transferring technologies to its clients in Hong Kong, the Mainland and the region. Please visitwww.astri.orgfor more information.
About Alcatel-Lucent and LTE
Having been selected to support 45+ LTE trials around the globe and securing commercial contracts with two of the largest operators in the world, Alcatel-Lucent is a recognized market leader in LTE. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE network solution and a full set of associated professional services. Alcatel-Lucent’s end-to-end network architecture is pre-integrating Alcatel-Lucent converged radio access network (2G/3G/4G RAN) and an industry-leading IP networking solution encompassing Alcatel-Lucent’s Ultimate Wireless Packet Core, IP/MPLS mobile transport, wireless network guardian, and a comprehensive IMS solution. This network solution allows scaling of GSM/W-CDMA networks and a smooth evolution to LTE. The company also founded theng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect Program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit: http://www.alcatel-lucent.com/lte
Alcatel-Lucent and China Mobile together with Audi to bring the magic of LTE to the streets of Barcelona [Feb 15, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile are collaborating to highlight a variety of high-value applications in an Audi A8 automobile supported by mobile network – based on Alcatel-Lucent’s commercially available infrastructure – that supports both flavours of Long Term Evolution (LTE) technology, Time Division Duplex (TDD) and Frequency Division Duplex (FDD), ensuring seamless global coverage.
In cooperation with Audi and application partners LiveCast and Vidyo, Alcatel-Lucent is bringing the magic of LTE to the streets of Barcelona with drive demos in a brand new LTE-driven Audi A8 cruising the neighbourhood around the Arts Hotel. From February 14th to 16th(9am-11:30am, 14pm-19pm), visitors will enjoy some exciting in-car services such as advanced street maps and navigation, video conferencing , video streaming, virtual desktop and music downloads.
“We are delivering a really cool driving experience in a really cool car using cutting-edge technology,” said Ken Wirth, President, 4G LTE Wireless Networks, Alcatel-Lucent. “What we are demonstrating is the ability of Alcatel-Lucent’s LTE Solutions to support the same kinds of advanced applications in both TDD and FDD spectrum, ensuring that all members of the LTE ecosystem can participate in the broader global value chain.”
The two modes of LTE share commonalities and are quite similar from an ecosystem perspective. The demonstrations also show the commercial readiness of Alcatel-Lucent’s integrated end-to-end LTE TDD and FDD solutions. This project also highlights the close collaboration between Alcatel-Lucent and China Mobile around the development of LTE; Alcatel-Lucent supported China Mobile’s TD-LTE trial network at World Expo in Shanghai last year and at public demonstrations of LTE at Mobile Asia Congress in November.
Alcatel-Lucent is supporting applications across both modes of LTE that are being deployed around the world in order to assist operators in leveraging LTE technology to develop a new range of connected devices and applications, including automobiles, to create new revenue opportunities and unleash new business models. Through the ng Connect Program – which was launched by Alcatel-Lucent two years ago at Mobile World Congress – Alcatel-Lucent has pioneered the concept of the LTE in-vehicle connectivity and multi-industry ecosystem development. This year Alcatel-Lucent has worked directly with Audi to bring LTE enabled automobiles one step closer to commercial reality.
“Audi will make LTE technology a feature available in their commercial production line cars” explained Michael Dick, Board Member for technical development at AUDI AG, at the presentation of the experimental vehicle.
The drive demonstrations rely on Alcatel-Lucent’s end-to-end LTE converged solution comprising of common antennas, Alcatel-Lucent’s “zero footprint” base station (eNode B) and a Wireless Packet Core. In collaboration with Audi and application partners LiveCast and Vidyo we are showcasing how the network and applications like navigation, video streaming, virtual desktop, video conferencing, live broadcast and music downloads are integrated by our end-to-end LTE solution with both TDD and FDD coverage.
Vidyo is providing its revolutionary software-based telepresence technology for high-quality video conferencing demonstrations via TD-LTE, between passengers in the Audi A8 and people at the Mobile World Congress exhibit hall.
LiveCast’s industry proven live mobile video platform for enterprise is enabling HD quality video streaming with integrated telemetry and GPS location data, via TD-LTE from passengers in the Audi A8 to its LiveCast Command Center application at Mobile World Congress exhibit hall.
More applications will also be showcased in the Alcatel-Lucent’s booth at the Fira in Hall 6 and in the Apps Planet Hall 7 # 7A96 to highlight the commercial readiness of LTE and the transformation it will bring to many dimensions of our lives.
Having been selected so far by twelve customers for commercial deployments — including two of the world’s largest service providers — and being involved in over 60 trials worldwide –- including thirteen LTE TDD trials in seven countries — Alcatel-Lucent has established a strong leadership position in LTE.
More information about Alcatel-Lucent and LTE: http://www.alcatel-lucent.com/lte
Alcatel-Lucent and Sequans collaborate on LTE solutions [Feb 15, 2010]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Sequans today announcedtheir collaboration on LTE solutions for operators of TD-LTE networks in Asia and Europe who are planning to offer services at 2.6 GHz. The first result of this collaboration in response to this significant demand will be a Sequans 2.6 GHz USB dongle to be used in operator trials in 2010.
“Through this partnership, we are exhibiting our commitment to creating a vibrant LTE ecosystem and to supporting operator goals of demonstrating the value of TD-LTE in delivering advanced services to end users,” said Georges Karam, Sequans CEO. “Alcatel-Lucent is an LTE technology leader, already actively involved in some of the most significant LTE deployment projects announced to date and we are pleased to work with them.”
Alcatel-Lucent was previously selected by China Mobile to deploy China Mobile’s demonstration network at the World Expo 2010 in Shanghai, beginning of May, using Sequans TD-LTE chips and USB dongles at 2.3 GHz.
“We are committed to working closely with operators in Asia and Europe to support their LTE strategies,” said Doug Wolff, vice president, Alcatel-Lucent’s 4G/LTE Solutions. “Our collaboration with Sequans, a truly innovative and accomplished 4G semiconductor supplier, will yield valuable TD-LTE solutions”.
About Alcatel-Lucent and LTE
With 40 LTE customer trials secured to date, Alcatel-Lucent is a worldwide leader in LTE. The company is actively engaged in the majority of LTE projects being pursued by tier 1 operators around the globe. To help operators realize their potential, Alcatel-Lucent is offering a unique, pre-integrated, end-to-end LTE solution and a full set of associated professional services. Alcatel-Lucent’s network architecture is based on Alcatel-Lucent unique converged radio access network (RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to LTE.The company also foundedthe ng Connect Program, a global initiative to drive the development of an open and diverse ecosystem of LTE device manufacturers, content providers and application partners. Through the ng Connect program and with Alcatel-Lucent’s end-to-end LTE solution, wireless broadband operators benefit from open innovation, pre-integrated solutions, reduce time to market with LTE-enabled services, and the ability to drive new and non-traditional business models. For more information about Alcatel-Lucent’s end-to-end LTE solution, please visit:http://www.alcatel-lucent.com/lte
About SequansCommunications
Sequans Communications is a 4G chipmaker, supplying LTE and WiMAX chips to equipment manufacturers and mobile operators worldwide. Founded in 2004 to address the WiMAX market where it is now a global leader, Sequans has recently expanded to address the LTE market. Sequans chips are inside the world’s leading WiMAX networks and will soon be inside the world’s leading LTE networks. Sequans is based in Paris, with additional offices throughout the world, including USA, United Kingdom, Israel, Japan, Hong Kong, Singapore, and Taiwan.www.sequans.com
Alcatel-Lucent Asia Pacific President talks about Q1 2011 [May 20, 2011]
Alcatel-Lucent Asia Pacific President Rajeev Singh-Molares shares his perspectives about Q1 2011 in the Asia Pacific region. Business in the region grew relative to the same quarter last year. China and Japan were strong. Operators are aggressively rolling out LTE networks spurred by upticks in smartphone and tablet use. The company will collaborate with China Mobile on next-generation network development, leveraging cloud RAN and lightRadio. A study by Bell Labs and World Economic Forum reveals it’s possible to accelerate GDP growth by an additional 40% when combining applications and services with mobile ubiquity.
Alcatel-Lucent Columbus – Where LTE Readiness Becomes LTE Reality [March 2, 2011]
In 2010, Alcatel-Lucent deployed more than 60,000 base stations to North American customers. This video explains how our LTE Readiness Methods and Procedures team and our Remote Integration Testing Center (RITC) work together to deploy LTE technologies for our customers. The video also explains the concept of the RITC, its advantages for the customer and its track record of success. In addition, the video discusses the deep LTE expertise found in the Methods and Procedures team along with the many things it does to support the RITC.
lightRadio: Alcatel-Lucent at “Best Practice Live” virtual conference [July 5, 2011]
lightRadioTM is a disruptive Wireless Architecture that enables operators the opportunity to develop next generation converged 2G/3G/LTE Radio Networks. Valérie Layan – VP Wireless Solutions EMEA at Alcatel-Lucent outlined how this unique solution offers a dramatic new way of building networks that will enable Macro and Small Cell integration, offer Opex savings of more than 50% compared to Classic BTS design and set the course for Wireless & Wireline convergence.
LIGHTRADIO CONNECTS THE WORLD [June 15, 2011]
The world’s first long-distance, high-quality mobile video-call using lightRadio™ – a breakthrough system pioneered by Alcatel-Lucent (Euronext Paris and NYSE: ALU) to transform the economics and efficiency of mobile telephony– has successfully taken place from the historic desk of Alexander Graham Bell.
Industry executives, technology leaders and analysts witnessed the inaugural lightRadio video call made from the headquarters of Bell Labs, the innovation engine of Alcatel-Lucent and now home to Graham Bell’s desk, from which he made the first-ever long-distance phone call.
Chris Lewis, Group Vice President of industry analysts IDC, hosted the call from Bell Labs in Murray Hill, New Jersey, connecting with Ben Verwaayen, Chief Executive of Alcatel-Lucent in Paris, and delegates at a business conference in Miami.
lightRadio is the name of a family of technologies which are set to transform mobile communications, improving the quality of network services for consumers while dramatically reducing the size, carbon footprint and energy consumption of mobile base stations.
After participating in the call, Ben Verwaayen, said: “We have taken lightRadio from the drawing-board to a fully working system, creating an entirely new system to connect customers around the world.”
The launch of lightRadio will help address exploding demand for mobile broadband services and increasing global consumption of wireless content. This has been fuelled by the adoption of smartphones and the popularity of video applications, social networking and mobile gaming services– all requiring wireless service providers to provide greater speed and capacity everywhere.
Network operators such as France Telecom/Orange, Telefonica and China Mobile are now engaged with Alcatel-Lucent in co-creating the market implementation of lightRadio. The system is expected to deliver significant operational savings for carriers and infrastructure owners by marking an end to the existing system of complex base stations and large cell towers.
This week’s inaugural call demonstrates lightRadio’s ability to handle high levels of data, meeting demand from customers increasingly using mobile video on Internet-networks. Among breakthroughs promised by the system, it will reduce mobile network energy consumption by 50% – compared with current equipment; enable roll-out of mobile broadband services to new marketsusing sustainable-power sources; and deliver major savings for operators.
Alcatel-Lucent predicts that lightRadio will help cut the cost of mobile infrastructure site, energy consumption, operations and maintenance. Bell Labs estimates that the total cost of ownership of mobile networks, the sum spent by mobile operators on access systems, reached 150 billion Euros in 2010.
More information about Alcatel-Lucent’s lightRadio portfolio can found online at http://www.alcatel-lucent.com/lightradio.
China Mobile and Alcatel-Lucent partner to develop next-generation RAN [Feb 15, 2011]
Alcatel-Lucent today announced it has signed a Memorandum of Understanding (MOU) with China Mobile, the world’s largest mobile operator and a leader in TD-SCDMA and TD-LTE, for the development of a next-generation radio access network (RAN). The MOU was signed by Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.
Alcatel-Lucent and China Mobile will jointly launch technical and economic studies and investigate the technologies essential to build a centralized, collaborative, Cloud-based RAN (C-RAN) in order to set new standards for cost-effectiveness, network intelligence and energy-efficiency (“green”). The C-RAN will provide a common platform for multi-mode wireless standards such as GSM, 3G, and LTE, enabling to significantly improve network quality and coverage, reduce transmission resource consumption and lower OPEX by up to 50% and CAPEX by 15%.
Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “The partnership with China Mobile is directly addressing the challenges of high energy costs, explosion of mobile video and sustainable development. By helping them replace traditional network designs with flexible cloud-like architectures, we are preparing the future and help show the way in terms of technology and economic models.”
The strategic partnership for C-RAN will leverage Alcatel-Lucent’s recently-announced lightRadio, a breakthrough in mobile and broadband infrastructure to streamline and radically simplify mobile networks. Pioneered by Bell Labs, Alcatel-Lucent’s research and development arm, the new lightRadio system will dramatically reduce operating costs, technical complexity and power consumption. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically reducing and simplifying them.
lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and distributed through the antenna or the network for cloud-like processing. Additionally the various cell site tower antennas are combined and shrunk into a single small powerful, Bell Labs-pioneered multi frequency, multi standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
The partnership with China Mobile also reflects Alcatel-Lucent’s strong commitment to sustainable development and to Green as testified, in particular, by its leading role in the
GreenTouch™ Consortium, a global research initiative dedicated to dramatically improving the energy efficiency of information and communications technology (ICT) networks by a factor of 1,000. GreenTouch™ recently presented a Large-Scale Antenna System proof of concept offering the potential for tremendous energy savings thanks to its novel wireless transmission techniques.
Alcatel-Lucent maps the future of mobile technology [Feb 7, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced lightRadio™, a breakthrough in mobile and broadband infrastructure that streamlines and radically simplifies mobile networks. The solution was unveiled at a major press launch event in London supported by partners Freescale and HP.
Pioneered by Bell Labs, Alcatel-Lucent’s unique research and development arm, the new lightRadio system will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them.
lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
Alcatel-Lucent’s new lightRadio product family, of which initial elements ready to begin customer trials in the second half 2011, provides the following benefits:
- Improves the environment: lightRadio reduces energy consumption of mobile networks by up to 50% over current radio access network equipment. (As a point of reference, Bell Labs research estimates that basestations globally emit roughly 18,000,000 metric tons of CO2 per year). Also, lightRadio provides an alternative to today’s jungle of large overcrowded cell site towers by enabling small antennas anywhere.
- Addresses digital divide: By reducing the cell site to just the antenna and leveraging future advances in microwave backhaul and compression techniques, this technology will eventually enable the easy creation of broadband coverage virtually anywhere there is power (electricity, sun, wind) by using microwave to connect back to the network.
- Offers major savings for operators: Thanks to lightRadio’s impact on site, energy, operations and maintenance costs; when combined with small cells and LTE, this new solution can lead to a reduction of total cost of ownership (TCO) of mobile networks up to 50% (as a point of reference, Bell Labs estimates that TCO spent by mobile operators in mobile access in 2010 was 150 billion Euros).
Ben Verwaayen, CEO of Alcatel-Lucent, said: “lightRadio is a smart solution to a tough set of problems: high energy costs, the explosion of video on mobile, and connecting the unconnected.”
Alain Maloberti, Senior Vice President, Network Architecture and Design, France Telecom/Orangesaid: “Alcatel-Lucent’s new vision and strategy of mobile broadband is quite exciting: the new wireless network architecture and innovative radio proposal will potentially help us to achieve significant operating cost savings and be better prepared for future challenges. We look forward to work closely with Alcatel-Lucent to explore and test this new approach.”
Tom Sawanobori, VP Technology Planning, Verizon Wireless, said: “Verizon looks forward to learning more about the benefits of lightRadio technology and how they could be applied as we continue to expand and evolve our LTE network.”
Alcatel-Lucent is also in advanced planning with China Mobileas well as a number of other carriers around the globe around co-creation and field trials of the lightRadio solution.
Alcatel-Lucent studies have concluded that the total addressable opportunity for the multi-technology radio market1, which lightRadio addresses, will be over 12 billion Euros in 2014, representing more than 55% of the total wireless RAN market. The cumulative total addressable market will be over 100 billion Euros from 2011-2018.
Alcatel-Lucent’s lightRadio portfolio integrates a number of breakthrough innovations and technologies from Alcatel-Lucent’s Bell Labs research arm and ecosystem of companies:
Market Impact Technology Innovation A new generation of active antennas allows vertical beam-forming that improves capacity in urban and suburban sites by about 30%, supports all technologies (2G, 3G, and LTE) and covers multiple frequency bands with a single unit. lightRadio cube – A unique Bell Labs antenna technology, the lightRadio Cube includes an innovative diplexer type, radio, amplifier, and passive cooling in a small cube that fits in the palm of the hand. By moving former basestation components to a System on a Chip (SOC), lightRadio places processing where it fits best in the network – whether at the antenna or in the cloud. System-on-a-chip (SoC) jointly developed with Freescale Semiconductor, integrates intelligent software from Alcatel-Lucent onto fully remotely programmable state-of-the-art hardware. The economics of radio networks are substantially improved by reducing the number and cost of fiber pairs required to support the traffic between the antenna and the centralized processing in the cloud. Unique compression algorithms provide nearly a factor of three compression of IQ sample signals. Matching of load to demand through ‘elastic’ controller capacity, delivered on sets of distributed and shared hardware platforms, will improve cost, availability, and performance of wireless networks. Virtualized processing platforms. Alcatel-Lucent will use innovative virtualization software and will collaborate with partners like HP to enable a cloud-like wireless architecture for controllers and gateways. The lightRadio Product Family
The new Alcatel-Lucent lightRadio product family is composed of the following components: Wideband Active Array Antenna, Multiband Remote Radio Head, Baseband Unit, Controller, and the 5620 SAM common management solution. The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. Additional product family members will be available over 2012, 2013 and 2014.
For detailed information on these elements please as well as a webcast replay of today’s press conference please visit http://www.alcatel-lucent.com/lightradio(replay available at 2:30 pm GMT). The lightRadio approach and technology path will be shown and explained further at Mobile World Congress in Barcelona on 14-17 February.
[1] The multi-technology radio market consists of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies, in the same platform
“Alcatel-Lucent’s lightRadio approach is a revolutionary step in evolving traditional telecommunication networks to more heterogeneous networks with higher capacity and lower cost,” said Lisa Su, Senior Vice President and General Manager of Freescale’s Networking and Multimedia Group. “Freescale is collaborating with Alcatel-Lucent to provide the chip-based architectures through our new system-on-chip technology that supports the highly-flexible, multi-standard, programmable capability required to make lightRadio a reality.”
“Communication service providers will be better able to meet the shifting and growing demands placed on their networks as a result of the new lightRadio product family from Alcatel-Lucent,” said Sandeep Johri, vice president, Strategy and Solutions, Enterprise Business, HP. “As part of the lightRadio evolution, HP intends to work with Alcatel-Lucent in a co-creation fashion around the use of cloud and virtualization technologies in the mobile access space.”
“The day has finally come when service providers need to take a serious look at the road ahead in terms of technology and their economic models,” said Phil Marshall of Tolaga Research. “To survive and thrive, service providers must evolve network designs, embrace small cell sites and all-IP architectures and replace traditional network designs with flexible cloud-like architectures that can truly meet the data demands of the future.”
The Disappearing Mobile Masts and Towers [Feb 7, 2011]
The looming global gridlock in mobile communications promises to be averted following the launch today of pioneering technology which will remove the bottlenecks constraining mobile networks and help deliver universal broadband coverage.
Alcatel-Lucent (Euronext Paris and NYSE: ALU), the leading network technology group, has joined forces with industry partners to develop lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.
Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent, said: “Today’s and tomorrow’s demands for coverage and capacity require a breakthrough in mobile communications.”
He added: “lightRadio will signal the end of the basestation and the cell tower as we know it today.”
Governments and regulatory bodies are expected to welcome the technical development, which will help meet targets for universal broadband access by laying the foundation to address the so-called “digital divide.”
Other major benefits from lightRadio™ include:
- Shrinking the carbon footprint of mobile networks by over 50%
- Reducing the Total-Cost-of-Ownership of mobile operators by up to 50%
- Improving end user services by significantly increasing bandwidth per user thanks to the deployment of small antennas everywhere
Wim Sweldens, President of Alcatel-Lucent’s Wireless Division said: “lightRadio will help mobile operators evolve their networks to address the mobile broadband deluge.”
lightRadio represents a new approach where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network.
lightRadio also shrinks today’s clutter of antennas serving 2G, 3G, and LTE systems into a single powerful, Bell Labs-pioneered antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
The innovation coincides with growing demand for third-and-fourth generation mobile networks and devices, involving the mass adoption of wireless television services and other forms of broadband content. The total addressable market for the radio technology necessary to serve such networks and devices is expected to exceed €100bn1over the next seven years.
Alcatel-Lucent announced the lightRadio™ technical specifications and launch timetable at an industry event in London today. Visit http://www.alcatel-lucent.com/lightradiofor product press release and link to event replay (available at 2:30 GMT).
[1] This is the total addressable market for multi-technology radio solutions that consist of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies in the same platform
Freescale introduces industry’s first multimode wireless base station processor family that scales from small to large cells [Feb 14, 2011]
Freescale Semiconductor – the communications processing leader and provider of industry-leading DSP technology – is transforming the future of wireless infrastructure equipment with the introduction of a highly integrated base station-on-chip portfolio built on advanced heterogeneous multicore technology. Freescale’s new QorIQ Qonverge seriesis the first scalable family of products sharing the same architecture to address multi-standard requirements spanning from small to large cells.
The explosion of smart connected devices with increasing data and video content has created a mobile data tsunami, requiring OEMs and carriers to dramatically boost network performance while controlling capital expenditure costs, increasing power efficiency and supporting the emergence of 4G technologies.
The QorIQ Qonverge portfolio of base station-on-chip products is based on a common architecture and integrates communications processing, digital signal processing and wireless acceleration technologies into a single system-on-chip in various configurations optimized for next-generation femtocell, picocell, metrocell and macrocell base stations. Advanced process technology and exceptional integration allow the convergence of multiple functions traditionally performed on separate FPGAs, ASICs, DSPs and processors to be incorporated on a single device. This integration lowers part counts and delivers significant power, cost and footprint reductions for base stations. The common architecture spanning from femto cells to macro cells optimizes R&D investments and software reuse.
“The current explosion in mobile data traffic worldwide provides unique challenges and opportunities for wireless infrastructure equipment providers as they race to increase capacity and capability,” said Lisa Su, senior vice president and general manager of Freescale’s Networking and Multimedia Group. “Freescale’s highly integrated QorIQ Qonverge portfolio enables base station manufacturers to provide a dramatic, step-function improvement in performance, power and cost in a single, flexible architecture.”
QorIQ Qonverge technology can deliver 4x cost reduction and 3x power reduction for LTE + WCDMA macro base stations, and 4x cost and power reductions for LTE + WCDMA pico base stationswhen compared to wireless infrastructure equipment powered by discrete silicon products.
“By integrating multiple industry-leading technologies into one scalable product line, Freescale’s QorIQ Qonverge portfolio delivers significant innovation that advances the state of wireless networking at this pivotal time for the industry,” said Will Strauss, president and principal analyst of Forward Concepts. “The QorIQ Qonverge portfolio presents a unique solution and strengthens Freescale’s position as a processing technology leader in the wireless infrastructure space.”
Freescale leveraged its broad R&D scale, deep application knowledge of the wireless space and extensive IP portfolio to develop the new product family. QorIQ Qonverge processors combine multiple Power Architecture® cores and high-performance StarCore DSPs with a MAPLE multimode baseband accelerator, packet processing acceleration engines, interconnect fabric and next-node process technology. The portfolio’s products support multiple standards, including GSM, LTE – FDD & TDD, LTE-Advanced, HSPA+, TD-SCDMA and WiMAX. In addition, the family’s flexible architecture allows support for evolving standards with software upgrades.
“Freescale’s innovative QorIQ Qonverge platform provides the integration, performance, energy efficiency and unmatched scalability that our new lightRadio™ product portfolio requires,” said Wim Sweldens, president of Alcatel-Lucent’s Wireless Division. “Game-changing products like lightRadio disaggregate the base station between the network and the wideband active antenna, produce dramatic cost savings and need components that provide giant leaps forward such as Freescale’s new QorIQ Qonverge technology.”
“Freescale’s QorIQ Qonverge product line gives us the flexibility to cost-effectively address the widest possible small cell market by providing a common architecture and multimode capabilities, along with the programmability for us to incorporate our own advancements,” said Michael Clark, Airvana’s general manager for femtocell business. “We look forward to working with Freescale to help accelerate the deployment of small cells in next-generation wireless networks.”
According to analyst firm Infonetics, radio access network base station spending is projected to be $197 billion worldwide over the next four years.
Complete solutions
Customers can develop best-of-breed solutions with ease by combining their own differentiated IP with off-the-shelf components from Freescale and ecosystem partners. Freescale has assembled a rich ecosystem of technology leaders focused on wireless applications. Products and services from these partners can be combined with third party tools, as well as Freescale’s CodeWarrior technologies and VortiQa application software. This ecosystem can provide ODMs and OEMs Layer 1 – 4 software, transport and security stacks, RF technologies, test and measurement capabilities and ODM solutions.A development platform based on the P2020-MSC8156 AMC bundled with partner software and RF solutions is available immediately for rapid software development. In addition, Freescale offers a wide portfolio of GaAs MMICs and LDMOS RF solutions for consumer and enterprise pico and femto cells.
QorIQ Qonverge products
The QorIQ Qonverge portfolio includes four distinct products optimized for small cell (femto and pico) and large cell (metro and macro) applications. It also supports remote radio head and emerging cloud-based radio access network (C-RAN) configurations.The first products in Freescale’s QorIQ Qonverge multicore portfolio are built in 45-nm process technology and planned for availability in the second half of 2011. The products are the PSC9130/PSC9131 femto SoCs and PSC9132 picocell/enterprise femto SoC devices. Freescale plans to introduce portfolio members targeting larger cell (metro and macro) base stations built in 28-nm process technology later this year.
PSC9130/31 Femto SoC
8-16 users (WCDMA, LTE, CDMA2K) and simultaneous multimode
2×2 MiMO
1x e500 and 1x SC3850
MAPLE-B2F acceleration
PSC9132 Pico/Enterprise Femto SoC
32-64 users (WCDMA, LTE) and simultaneous multimode
2×4 MiMO
2x e500 and 2x SC3850
MAPLE-B2P acceleration
About Freescale Semiconductor
Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial and networking markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing and sales operations around the world. www.freescale.com.Supporting Partner Quotes Follow
Enea
“Enea currently provides a breadth of leading software solutions to support Freescale’s extensive portfolio of networking IP,” said Marcus Hjortsberg, vice president of Marketing for Enea. “We look forward to playing a role in unleashing the innovative capabilities of Freescale’s new QorIQ Qonverge hybrid multicore portfolio.”Green Hills
“With a long history of optimized support for Freescale’s multicore and multiprocessor platforms, we are excited to see Freescale’s next-generation wireless base station solution,” said Dan Mender, vice president of Business Development, Green Hills Software. “QorIQ customers use our multicore development tools and scalable real-time operating systems, MULTI and INTEGRITY, to conquer today’s multicore challenges and we look forward to supporting them as they adopt the QorIQ Qonverge portfolio.”Mentor Graphics
“The integration of StarCore DSP technology with Power Architecture cores in the new Freescale QorIQ Qonverge portfolio is a major advancement for the wireless industry. We see great potential for this class of heterogeneous multi-core designs,” said Glenn Perry, general manager of the Mentor Graphics Embedded Software Division. “The Mentor Embedded Linux platform for Freescale devices combined with CodeSourcery software development tools will enable our mutual customers to develop advanced, innovative and scalable systems with increased performance and power efficiency.”Aricent
“We are thrilled to be partnering with Freescale to accelerate development of new best-in-class solutions in the wireless infrastructure market,” said C.P. Murali, executive vice president and general manager at Aricent. “Our comprehensive suite of software frameworks and product engineering services enable customers to rapidly introduce innovative solutions based on Qonverge technology.”Continuous Computing
“We are proud to be a member of Freescale’s technology partner program and for Freescale to be a member of the Continuous Computing Network,” said Todd Mersch, director of Product Line Management at Continuous Computing. “Together we offer customers a complete range of femto to macro base station solutions consisting of Trillium wireless software and the latest advances in the QorIQ Qonverge portfolio of processors.”Critical Blue
”Freescale’s QorIQ Qonverge platform is architecturally very innovative. Meeting next-generation network speed requirements will require software developers to make knowledgeable choices in application partitioning and task allocation to the different types of cores on these platforms,” said David Stewart, chief executive officer of CriticalBlue. “The development program we have ongoing with Freescale will ensure that our Prism tool has all the capabilities needed to support a smart methodology for software developers, enabling them to get the maximum benefit from targeting the QorIQ Qonverge platform.”L&T Infotech
“L&T Infotech is excited to collaborate and build world-class wireless solutions based on Freescale’s QorIQ Qonverge portfolio,” said Sudip Banerjee, chief executive officer for L&T Infotech. “Our end-to-end telecom proficiency spans the entire wireless domain, with proven expertise on LTE/WiMAX, multicore technologies, network security and optical transport networks, ultimately enabling accelerated time-to-market for our client’s products.”Signalion
“We are pleased to support Freescale’s QorIQ Qonverge portfolio with our world-class wireless test technologies to ensure high-performance equipment, service and end-user experiences,” said Tim Hentschel, managing director for Signalion GmbH. “Freescale is charting new territory with the QorIQ Qonverge hybrid portfolio that promises to transform the future of wireless infrastructure equipment.”Tata-Elxsi
“The introduction of theQorIQ Qonverge portfolio means OEMs now have a single-architecture, compatible family of products to address all their base station design needs,” said Shyam Ananthnarayan, head of the Communications Business Unit at Tata Elxsi. “As a key member of Freescale’s rich ecosystem, Tata Elxsi will offer market-leading LTE eNodeB software stacks optimized to ease customers’ development of best-of-breed solutions based on Qonverge technology.”
Wireless support and network functions converge in QorIQ Qonverge processors [By Tom Thompson, June 16, 2011]
Wireless communication seems ubiquitous these days–until you wander into a dead zone and lose the network connection to your laptop, tablet, or mobile phone. Telco carriers are working hard to eliminate such areas by installing more macrocell towers. Sometimes installing one of those big bruisers in an area isn’t possible, so the carriers fill in the coverage gaps by scaling down. Scaling down in this case means building smaller wireless installations, such as microcell (also known as metrocell), picocell, and femtocell base stations.
You don’t have to be a rocket scientist to realize that deploying such a diverse array of gear can be a nightmare, both in terms of hardware design, embedded software development, and support. Every base station has various wireless formats to manage, and the smaller base stations must also implement certain wired backhaul technologies such as Ethernet and ET/T1 so that they can connect to the carrier’s infrastructure. One way to alleviate this headache of multiple base station designs is to reduce the different types of hardware used. For this scheme to work, however, the signal processing capabilities of a DSP and the networking functions of an application processor must converge into one unified part.
Freescale happens to be well-positioned to provide such a converged solution. First, the company makes its StarCore DSPs, which are 32-bit multicore processors engineered for high data processing throughput and support for a variety of wireless protocols. Second, the company makes high-performance network processors, notably those that comprise its QorIQ Processing Platform. These are 32-bit processors based on a low-power, high-performance Power Architecture core that manages several high-speed communications interfaces. Variants of both the StarCore and Power Architecture families feature fewer cores or lack hardware accelerators, which enable them to hit a specific price point or power consumption target.
Freescale’s convergence strategy is simple in concept, yet presented an engineering challenge. First, you take the core subsystems of these two processors and place them on a single chip. Next, surround the cores with a bevy of enhanced communications interfaces. Finally, knit all of these elements together with a high-speed switching fabric. The result is the QorIQ Qonverge processor, a system that is essentially a base station on a chip. Let’s delve deeper into the microarchitecture of the QorIQ Qonverge and see how it offers a comprehensive solution.
A Tale of Two Processors
The block diagram in Figure 1 depicts the major logic blocks that make up the QorIQ Qonverge PSC3191E, a part suitable for femtocell and picocell base station designs.
Figure: Block diagram of the QorIQ Qonverge PSC9131E processor.
The StarCore subsystem consists of an SC3850 DSP core that has six execution units(four data ALUs, and two address units) that operate in parallel to retire six instructions simultaneously per clock. The ALUs support integer and fractional arithmetic, including multiply-accumulate (MAC) and other sophisticated instructions. The core is therefore capable of reading, processing, and writing a continuous stream of data. The subsystem has its own internal L1/L2 caches, an MMU, an interrupt controller, and timers.
The Power Architecture subsystem consists of an e500 core, which is a superscalar processor with multiple execution units that can issue and retire two instructions per clock cycle. It has its own internal L1/L2 caches, an interrupt controller, and timers.
Each core has separate 32 KB instruction and data caches to reduce latency and boost throughput. The Harvard architecture implementation of these caches requires more transistors, but it helps to ensure that the cores receive a continuous stream of data and instructions. The unified L2 caches can be configured so that a portion of them acts as a low-latency L2 memory for time-critical data or variable storage.
Both subsystems would grind to a halt if they could not access memory or peripheral devices rapidly. To minimize this bottleneck, a high-performance communications interface, known as the Chip-Level Arbitration and Switching System (CLASS) fabric was used. This high-bandwidth, low-latency switching fabric is a fully-pipelined, device interconnect that provides direct access to the resources of the subsystems and on-chip peripherals.
The DMA engine, which can be programmed by either core, uses the CLASS fabric to manage data transfers. It has four bidirectional channels. Off-chip memory is accessed through a DDR memory controller. The controller supports DDR3/DDR3L devices, and can manage a 32-bit interface at a maximum 800 MHz data rate.
Hardware Gives a Hand
As you can see, the QorIQ Qonverge processor is one busy piece of silicon. Among its many duties is to process various wireless formats and encrypt communications sessions. These wireless and encryption algorithms are complex and require substantial processing power. While they can be done in software, the QorIQ Qonverge processor has dedicated execution units that can off-load the computational demands of these algorithms from the core subsystems.
The Multi Accelerator Platform Engine for Femto BaseStation Baseband Processing (MAPLE-B2F) unit provides hardware acceleration for baseband algorithms such as channel decoding/encoding, UTMS chip rate processing, and LTE uplink/downlink processing. It also accelerates the computation of Fourier transforms, matrix inversions, CRC algorithms, convolution and filtering operations, Turbo encoding/decoding, and Viterbi decoding. It is a second-generation design that builds upon an established predecessor used in certain StarCore DSPs.
For encryption duties there is the security engine, a cryptographic and assurance acceleration unit. It uses a job queue interface that can schedule multiple cryptographic tasks in parallel, and its multiple accelerators can be shared among different applications. In concert with the DMA engine, this module can use scatter/gather operations to collect data that is distributed throughout memory. The module has hardware accelerators for public key, message digest, ARC four, SNOW 3G f8 and f9, and Katsumi cryptographic operations. It also has accelerators that manage DES, AES, and CRC operations, and it supports a variety of cryptographic authentication schemes.
Note that acceleration capabilities are not limited exclusively to these particular modules. Other modules can accelerate a subset of their functions. For example, the Ethernet controller can off-load and accelerate certain TCP/IP stack operations such as IP header recognition and checksum, plus TCP/UDP checksum and verification.
Smart Controllers
The PSC9131E has several controllers that manage complex I/O operations concurrently. The Antenna Interface Controller (AIC), as its name implies, handles transactions between the processor and an external Radio Frequency (RF) subsystem. It supports CDMA, WCDMA-DD, LTE-FDD, LTE-TDD, and GSM (receive only) network modes. Data received from the transceiver is reformatted and stored by the AIC into system memory or in the MAPLE-B2F unit. Data to be transmitted is transferred by DMA to the AIC where it frames the data for the proper network format and sends it to the transceiver. The AIC can handle up to a maximum of four data lanes, depending upon the wireless format in use.
The Ethernet controller features two enhanced Gigabit Ethernet interfaces that can operate at speeds of 10 Mbps, 100 Mbps and 1 Gbps. These interfaces are IEEE 802.3, 802.3u, 820.3x, 802.3z, 802.3ac, and 802.3ab compliant. As mentioned previously, the controller can accelerate the identification and retrieval of standard and non-standard protocols present on the Ethernet connection.
The USB controller is USB revision 2.0 compliant and can function as both a host and a device controller. As a host, it supports low-, full-, and high-speed transfer rates. It contains its own DMA engine that reduces the interrupt load on the processor and minimizes the bus bandwidth necessary to service any USB transactions.
In summary, these several controllers provide sophisticated wireless, Ethernet, and USB services, yet without adding a considerable burden to the processor’s operation, especially when it is conducting network/wireless routing.
Ports Aplenty
The PSC9131E provides a number of ports that enable you to connect a large cast of supporting peripherals to the processor. These are:
- Enhanced SPI
- Two DUARTs
- Integrated Flash memory Controller (IFC)
- Two I2C controllers
- General-Purpose I/O (GPIO) interface with 32 bidirectional ports
- Universal Subscriber Identity Module (USIM) interface for communicating with a SIM card
- PWM optimized to generate sound
- Enhanced Secured Digital Host Controller (eSDHC) for interfacing to SD/SDIO/MMC cards
As a unit, QorIQ Qonverge processors represent a fusion of many existing, field-proven Freescale technologies. However, the resulting processor is far greater than the sum of its parts. Since the QorIQ Qonverge processor implements the level-1, -2, and -3 processing layers required for network/wireless communications on-chip, it only lacks some external hardware, such as a power supply, flash memory, DRAM, Ethernet line-driver and a RF transceiver to implement a stand-alone femtocell or picocell base station. It is designed to replace both the DSP and the applications processors at the heart of many such base station designs, as shown in Figure 2. By doing so, the QorIQ Qonverge part can reduce complexity, processing latencies, and the bill of materials for a base station design.
Figure 2. The QorIQ Qonverge-based picocell design (bottom) uses fewer parts than a design based on separate DSP and application processors (top).
A Processor for Many Uses
The QorIQ Qonverge processor isn’t limited to short-range base stations, however. It can also scale up: Multicore variants can support microcell and macrocell base station designs. This allows you to assemble a range of base station designs around one part.
Besides simplifying the base station design, the QorIQ Qonverge processor also allows you to reuse existing software. For example, existing StarCore MSC8156 DSP code and P2020 application code can be migrated to the QorIQ Qonverge processor, since the cores are nearly identical. The same CodeWarrior tool suite for StarCore DSPs and CodeWarrior tools for Power Architecture can be used to write and debug the software. Furthermore, the code written for–say, a picocell base station–can be reused in microcell and macrocell base station designs. Revising the code for a multicore processor can be tricky, but you can start the process with the knowledge that the application code was stress-tested on smaller base stations. Also, Freescale’s partner, CriticalBlue, has a multicore simulation tool to assist you in this process for Power Architecture-based software. All of this adds up to be a comprehensive solution for embedded base station designs.
Turn the lightRadio on [March 8, 2011]
Development hopes to double network capacity while halving power consumption. By Roy Rubenstein.
Mobile operators face significant challenges, given the rapid growth in mobile broadband traffic. They are starting to roll out the latest mobile technology, Long Term Evolution (LTE), as yet another overlay alongside the existing wideband CDMA and GSM networks. Mobile sites are thus being crammed with antennas and basestation equipment.
“The cellular network is 30 years old,” said Tom Gruba, marketing director for wireless activities at Alcatel-Lucent. “You cannot just keep adding more basestations in the network to solve the [data] capacity problem; the business model doesn’t work.” Alcatel-Lucent’s solution is lightRadio, which moves the processing power to the antenna or into the network, like cloud computing. The system vendor points out that architecture change is being industry led; what Alcatel-Lucent is claiming is that the lightRadio portfolio of products is the first to support the new architecture.
Announced in the run up to Mobile World Congress 2011, lightRadio promises to double network capacity, while halving power consumption. The lightRadio products include a wideband active array antenna that integrates the amplifier and antenna elements, a radio SoC developed with Freescale, and a multimode radio controller platform being developed with HP. Integrating the amplifier alongside the antenna achieves better coupling of the signal to the antenna. Less power is wasted, such that a smaller amplifier can be used.
The wideband active array antenna is implemented as a 6cm cube, pictured left. The wideband operation covers 400 to 4000MHz, allowing one cube to support 700MHz and 2600MHz bands. “These can be stacked, depending on how much power is needed, and you can have two or three columns to serve two or three frequencies and any technologies you want,” said Gruba.
Being an active design, the antenna boosts cell capacity through beam forming and multiple input, multiple output (MIMO) technology. Combining the amplifier-antenna with the radio chip forms a compact basestation that can be mounted on masts or within buildings. Such a combined baseband/remote radio head takes little space and avoids the need for air conditioned cooling associated with traditional basestations.
LightRadio will also enable a cloud computing style radio network architecture, where the basestation is separated from the antenna-amplifier. Traditionally, the radio amplifier was connected to the baseband via a backplane. The advent of the remote radio head led to the creation of the common public radio interface (CPRI) to connect the amplifier at the antenna with the baseband unit. With a cloud based radio network, basestations from 25 or 30 cell sites could be placed in a facility up to 40km away, with the CPRI signal carried over an optical link.
Alcatel-Lucent estimates the maximum lightRadio bit stream needed to be carried over the CPRI link is 10Gbit/s. Compression technology will reduce this by a factor of three, so operators can avoid installing a dedicated 10Gbit optical link. At the core of the baseband processing is the SoC developed with Freescale.
“Dimensioning the various aspects of the SoC is critical,” said Preet Virk, Freescale’s director, networking segment. The SoC design uses Freescale’s recently announced QorIQ Qonverge technology that supports designs spanning femtocells to macro basestations. Two devices have been announced – for femtocells and picocells – that are implemented using a 45nm cmos process. Alcatel-Lucent’s radio ic will be implemented in 28nm cmos and will be available from 2012.
Freescale is not willing to detail the basestation SoC yet, but the scalable design uses cores and IP blocks that are shipping in Freescale products, such as the e500 Power Architecture core and the StarCore SC3850 dsp as well as baseband acceleration blocks.
“Scalability comes in many forms,” said Barry Stern, Freescale’s baseband DSP & SoC products, marketing manager, wireless access division, networking and multimedia group. “From a few users to hundreds of users; from 1.25 to 20MHz bandwidths and beyond; simultaneous multimode support; and enabling OEMs to use the same software across different basestation designs, saving on development costs.”
Freescale’s femtocell SoC supports 8 to 16 users and uses an e500 core and a dsp core. The picocell SoC supports 32 to 64 users and uses two e500s and two dsp cores. Freescale’s metro and macro cell SoCs will support hundreds of users, requiring multiple dsp and cpu cores. Other features will include several DDR3 memory controllers; baseband acceleration for turbo coding, fast Fourier transforms and MIMO; and interfaces for Ethernet, PCI Express and CPRI, according to Virk.
“The SoC in the cloud is going to give us the ability to do all sorts of new things,” said Tod Sizer, head of Alcatel-Lucent’s Bell Labs’ wireless research domain.
Intercell communication
Having baseband processors concentrated at one location enables intercell communication. One application is Coordinated Multipoint (CoMP), what Alcatel-Lucent calls networked MIMO, which will be a feature of the 3rd Generation Partnership Project’s (3GPP) Release 10 cellular standard.
Currently, only one cell serves a user, even if the user is commonly near the cell edge and is sensed by adjacent cells. With CoMP, MIMO technology can be used such that different streams are transmitted between the basestations and the user, boosting throughput. And it is this technique, says Alcatel-Lucent, which will double overall capacity.
The cloud like architecture will also enable new uses that benefit energy consumption. “One we are going to see in the coming years is coordination on the basis of energy usage,” said Sizer, citing how, for example, all users could be moved to the 3G network, with the LTE basestations turned off to save power, based on time of day and subscriber requirements. “You have that capability of moving users if you have control of both technologies from a single cloud,” said Sizer.
Power consumption has become a key issue for operators, with the likes of France Telecom looking to reduce the energy consumption in its network by 15% by 2020. In turn, US operator Verizon stipulates that each new piece of equipment must be at least 20% more energy efficient than its predecessor if it is to be deployed. Alcatel-Lucent is developing a virtualised radio controller architecture as part of the portfolio, working with HP to consolidate three generations of radio controllers into one platform. In GSM, the basestation controller (BSC) connects to multiple cell sites, while a radio network controller (RNC) is used in 3G.
“If I make the BSC or RNC a software routine, the software becomes independent of the platform and I can put both functions in one box,” said Gruba. Alcatel Lucent is basing the design on an ATCA version 2 based general purpose processor design, while HP is providing server and virtualisation expertise to the controller design. Alcatel-Lucent expects to be trialling the wideband active array antenna in the autumn before it becomes commercially available in 2012.
The remaining lightRadio elements will appear from 2012 onwards. Ken Rehbehn, principal analyst at the Yankee Group, says lightRadio is arguably the most important wireless equipment development made by Alcatel-Lucent since its 2006 merger. However, he points out that other vendors are pursuing comparable strategies that might challenge much of the lightRadio vision.
lightRadio: hideous cell towers to get smaller, lose the “hut” [Feb 2011]
Even when they’re disguised like fake trees or church steeples, cell towers are ugly. Most have a hut at the bottom, stuffed with baseband processing gear that does the hard work of creating and decoding, say, an LTE signal. These huts often contain signal amplifiers, big units that push power up the tower to the actual antennas—and half the signal is lost just moving through the tower’s wiring. At the top, rectangular antennas bristle from the tower. One set might be for 2G support, one for 3G, and another for 4G.
Alcatel-Lucent, one of the world’s biggest wireless gear makers, turned to its Bell Labs research division to rethink this aging architecture. First step: apply the “data center” model of centralization to baseband processing and consolidate all that rack-mounted hardware into a few locations per city, each connected to the towers it serves by fiber optic cable.
Right now, a cell tower fault might require a truck roll and a drive through traffic. When the tech gets to the tower site, it might turn out to be at the top of a hotel, and permission to access it must be obtained from the site manager. Put all the processing gear in a single remote location, however, and repairs to it get cheaper and faster.
Clustering the baseband units also makes it easier to do load balancing across a region. When commuters are driving into work, for instance, the baseband cluster can turn its combined energy to handling the signal load coming from towers along the highways and train lines. During the day, processing could handle heavy downtown traffic, while it shifts focus to the suburbs in the evening. Such load-balancing doesn’t produce any additional spectrum or data throughput, but it does mean that a carrier can operate fewer baseband processors, saving the carrier cash.
The third advantage to centralizing the baseband processors is that the interconnection fabric between them can operate at high speeds, fast enough to support a standard called CoMP, or Co-ordinated Multipoint. CoMP, which is currently moving through standardization, relies on the fact that, in many locations, a user’s wireless gadget is in range of multiple towers (the closer one comes to the edge of each cell, the more towers can typically see the device).
This is usually a waste, since multiple towers spend bandwidth contacting the gadget but can’t independently deliver different data. CoMP turns it into a bonus by dividing up requested download data and using all cells in the area to deliver a different slice of it at once—akin to the way BitTorrent operates. The phone then combines the data from all the towers in the proper order. This additive approach to using different towers means that a user’s total throughput can go up substantially, but it requires centralized baseband to function.
Finally, the new lightRadio baseband bear can do software-defined protocols. Upgrading to LTE? Just upgrade the software on the baseband processor. (Traditional rack-mounted baseband processors required dedicated units for each protocol.) A new baseband chip from Freescale makes it possible, but it gets even cooler when used in conjunction with the new wideband antennas.
LightRadio uses a new antenna that, in Alcatel-Lucent’s words, collapses three radios into one. The radios are tiny cubes of 2.5 inches square, and each can operate between 1.8GHz and 2.6GHz. They use tiny amps that can be located atop the tower, built into the antenna enclosure, which keeps the amp size down and dramatically cuts down on the power loss.
These radio cubes are stacked in groups of 8 to 10 in order to make an antenna element, and when one cube in the array goes down, the others remain unaffected. (In a traditional system, the whole antenna unit would fail.) The amps cover enough different frequencies that, in many cases, simply changing the software configuration on the baseband unit can control whether each antenna offers a 2G, 3G, or 4G signal.
The antennas also do “beam forming”—fine-grained directional control over the radio signal—in both the horizontal and vertical dimension to better connect with local wireless devices. Alcatel-Lucent claims capacity improvements of 30 percent through the use of vertical beam-forming alone.
The end result of the system: lightRadio cell towers don’t need huts, they don’t need air conditioners and heaters, big amps, fans, or even local processing gear. Baseband processing moves closer to the data center model and gets cool new capabilities like CoMP and load-balancing. The system’s cost savings come from power (Alcatel-Lucent claims a 50 percent reduction), along with lower construction and site rental fees. The total macro capacity of the system should double while cutting operator costs dramatically.
Though it will take months for any carrier to roll out this or similar gear, advances like lightRadio are crucial as wireless usage continues to soar and smartphones break out of the enterprise and the technorati and into the mainstream. And by making cell infrastructure smaller, cheaper, and less power-hungry, this sort of gear brings wireless networking into reach of more people, especially in rural areas and developing countries.
Alcatel-Lucent’s lightRadio™ portfolio wins NGN magazine leadership award for transforming mobile broadband networks [May 19, 2011]
Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that its lightRadio portfolio was recognized as the outstanding new achievement in broadband Internet communications by the leading industry magazine NGN, as part of its NGN Leadership Awards contest. The awards program recognizes outstanding products, services and technologies relating to next generation networks.
“This award underlines the sweeping impact our lightRadio portfolio is having on the wireless communications industry,” said Wim Sweldens, President of Alcatel-Lucent’s Wireless activities. “lightRadio isn’t just redefining the shape of the wireless base station, it also offers a compelling vision for what wireless networks will look like in the future.”
“This award for Alcatel-Lucent’s LightRadio is a great testament to their innovation. They have brought to market a solution designed to solve the most critical issues facing the wireless industry, starting with the quasi impossibility to add new sites to increase capacity and improve coverage,” said Stéphane Téral, Principal Analyst, Mobile and FMC Infrastructure, Infonetics.
lightRadio™ is a new product offering from Alcatel-Lucent that will dramatically reduce operating costs, technical complexity and power consumption in mobile broadband networks. Designed to meet the long-term needs of mobile operators seeking to ensure their networks can handle increasing traffic loads, lightRadio radically shrinks and simplifies today’s base stations.
The lightRadio portfolio is designed to increase network capacity while simultaneously reducing the cost of delivery, on a per bit basis. The overarching goal is to give operators more options and a flexible path forward for the next decade. By increasing the capacity at a reduced cost the operators can pursue a whole new market segment, the mass market. In addition, being able to use the lightRadio cube technology in various forms means Small Cells can leverage the technology and rural villages can get wireless coverage at lower costshelping to cross the digital divide.
lightRadio promises greener, simpler, lighter networks, and the benefits are substantial, including:
- 50% reduction in total cost-per-bit as compared to 3G when adding a comparable amount of capacity
- 50% reduction in energy consumption when compared to conventional ground based solutions
- Small and easily deployable – can be deployed anywhere there is a power source and broadband connection and deals with less zoning restrictions
- Nearly invisible – the WB-AAA is two products in one. It’s adding another radio in the same size form factor with no additional lease cost or further pollution of the urban skyline.
The Alcatel-Lucent “lightRadio” product family is composed of the Wideband Active Array Antenna, the Multiband Remote Radio Head, the “lightRadio” Baseband Processing, the “lightRadio” Control, and the 5620 SAM common management. The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. For more information on the lightRadio portfolio please click here.
Bell Labs lightRadio™ Breakthroughs [Feb 7, 2011]
The world of mobile communications moves fast. With new mobile devices, new applications and ever-growing and changing consumer demands the wireless networks in use today have to evolve. Rather than take an incremental approach to meet these challenges, Bell Labs took a leap and developed a radically new approach to wireless technology. In order to do this, Tod Sizer, head of Bell Labs Wireless Research, challenged his team to think not just “outside the box,” but to think “inside the cube.” In six short months, the team developed a cube-shaped antenna that would fit in the palm of a hand – and was ready to test it with customers.
Tod Sizer, Head of Wireless Research for Alcatel-Lucent Bell Labs, talks about developing the lightRadio antenna module. lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.“There are many different types and sizes of base stations, from very small to very large, depending on where they are located, such as in an urban or rural area,” explained Sizer. “I realized that we needed to design a new and flexible type of antenna array for different environments– including one designed to the smallest possible size – ‘invisible antennas’ – in order to be flexible enough to meet the growing needs of all of our wireless service provider customers.”
A radio antenna element is a component of an antenna system that transmits signals from the wireless base station to a wireless end-user using a mobile phone, smart device or laptop. By reducing the size of the element itself, an antenna array can be scaled to fit any wireless need simply by adding more of these elements to the array.
Bell Labs wireless researchers weren’t daunted by the challenge of building something that was roughly ten percent of its current size. Several wireless research teams in Stuttgart and Ireland focused on different aspects of the problem, combining their unique areas of expertise to quickly resolve a myriad of technical challenges to reduce the antenna element’s size, improve energy efficiency and lower manufacturing expenses. The clever architecture of this new antenna is but one of the innovations critical to realizing Alcatel-Lucent’s unique lightRadio portfolio.
“We believe this unique antenna – as part of the lightRadio solution – will have a significant impact in the wireless space,” concluded Sizer.
Quick Links
Wim Sweldens presents lightRadio, a breakthrough for the mobile industry [Feb 7, 2011]
Wim Sweldens, President, Alcatel-Lucent wireless activities, talks about lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.
lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.
More info: http://www.alcatel-lucent.com/lightradio
Alcatel-Lucent. Cube light Radio [Feb 18, 2011]
Highlights of lightRadio press conference [London, Feb. 7th, 2011]
Presentation of the lightRadio system which will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them. Conference guests: Stephen Carter, Wim Sweldens, Tod Sizer and Javier Garcia Gomez (Alcatel-Lucent), Lisa Su (Freescale) and Joe Weinman (HP).
Marvell’s single chip TD-SCDMA solutions beaten (again) by two-chip solutions of Chinese vendors
Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
Suggested preliminary reading:
– China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]
– High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]
– ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011]
– Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile[Nov 15, 2010]
ZTE, Huawei & Lenovo Jointly Won New Mobile Bidding [July 8, 2011] (emphasis is mine)
ZTE Corporation (SZSE: 000063), Shenzhen Huawei Technologies Co., Ltd. and Lenovo Group Co., Ltd. (SEHK: 000992) jointly won the mobile bidding launched by China Mobile Communication Corp (China Mobile in short, SEHK: 00941) last month.
At the beginning of June, China Mobile launched a new round of mobile bidding, with bidding products being CNY 1000 [US$152] intelligent mobiles and purchase scale being 7 million popular G3 mobiles and 3 million G3 wireless telephones.
The bidding result came out on July 6 evening, ZTE, Huawei and Lenovo won the bidding while foreign brands got nothing.
China Mobile Commissions Three Million+ Mobile TV Smartphones [July 7, 2011] (emphasis is mine)
China Mobile, the country’s biggest mobile telco, has announced the winning bidders for its tender of three to four million mobile TV smartphones, with Lenovo, Huawei, and ZTE being the selected hardware makers.
The order is believed to be for six different handsets, of 500,000 to 600,000 units each. All of them will be 3Gsmartphones, on the homegrown TD-SCDMA frequency that China Mobile uses, and they will all be low- to mid-level phones on the cheaper end of the smartphone scale.
Mobile TV is the most unique feature that the phones will bring. Again, this is a China-developed technology – the CMMB standard for mobileTV transmission – that is being pushed by the state-owned China Mobile.
The mobile TV roll-out started in March of this year, across 300 cities and to huge fanfare in (state) media – see this Sina Tech reportfrom the time (article in Chinese).
It’s not clear which OS this new batch of mobiles will be running, but it is very likely that they’re also rocking China Mobile’s own Androidmodification, dubbed OPhone, which has mobile TV support baked in – as seen in the two photos of the OPhone-powered Lenovo O1 in this post.
China Mobile has struggled to get appealing handsets onto its TD-SCDMA network, but this year finally got some attractive top-end Motorola and HTC smartphones.
Domestic Vendors Win China Mobile TD-SCDMA Handset Tender [July 6, 2011] (emphasis is mine)
China Mobile (NYSE: CHL; 0941.HK) has released a list of winning bidders in its TD-SCDMA handset procurement tender. The tender is for six handset models, approximately 500,000 to 600,000 of each for a total of 3-4 mln units. The orders are divided between Lenovo (0992.HK), ZTE (0763.HK; 000063.SZ), and Huawei, with chips to be supplied by Spreadtrum (Nasdaq: SPRD), Leadcore and MediaTek. Spreadtrum and Leadcore will provide chipsets for two models each, while MediaTek will provide for one, and MediaTek and Leadcore will provide one they have jointly developed.
According to an industry source, the tender is for low-end and mid-range entry-level TD-SCDMA handsets equipped with CMMB mobile phone TV capability slated for launch in Q3 2011. Nearly 100 handset products were offered by over a dozen manufacturers in the bidding. Marvell was among the chipset bidders, but was not selected since its products are aimed at high-end TD-SCDMA handsets.
The source said that overseas handset and chipset makers did not participate in the tender because they are more focused on the low-end and mid-range TD-SCDMA smartphone market, and China Mobile’s unit price range was simply too low to attract their interest.
Spreadtrum Rides China TD-SCDMA Wave, Says Wedge; More On China Mobile iPhone [July 8, 2011] (emphasis is mine)
Wedge Partners analyst Brian Blair this morning writes that he thinks wireless chip maker Spreadtrum (SPRD) won half of a recent 4 million-unit order by China Mobile (CHL) for chips based on the country’s home-brewed “TD-SCDMA” wireless standard, and that the orders should continue to flow for the company.
Based on checks by contacts in China, writes Blair, Spreadtrum’s overall TD-SCDMA chipset shipments probably exceeded expectations in June, while the GSM flavors of its chipsets probably “recovered” in the month, bringing total chipset shipments to 17 million units. He thinks the company will probably forecast the current quarter about in line with the Street consensus of 57 cents per share in profit.
“We believe there will be more low/middle-end TD handset procurements in the second halfand we continue to believe that Spreadtrum has the best position in that market.”
… On another note, Blair tells me that he and his team were reviewing a photo put online on a Chinese blog this week that appeared to show an Apple (AAPL) iPhonethat was stamped with the China Mobile designation.
That picture yesterday was interpreted by Ticonderoga’s Brian White as further evidence that a version of the iPhone for China Mobile’s TD-SCDMA network is “imminent.” …
Spreadtrum: Extremely Compelling After Broad Chinese Stock Sell-Off [July 9, 2011] (emphasis is mine)
We believe that there will be approximately total 55M TD-SCDMA units sold in 2011 and 90M in 2012. Spreadtrum should have approximately 40% market share in 2011 and 40 – 45% share in 2012.
Pricing is extremely competitive in China and we expect ASPs to continue to decline. ASPs on TD chips are currently approximately $7. Spreadtrum has a cost advantage since it is the only supplier producing chips on 40nm lithography. Other chip suppliers are producing chips using 60nm or 90nm lithography and above. Spreadtrum’s smaller die results in an approximate 40% cost advantage, enabling Spreadtrum to sell at a lower ASP and to maintain gross margins at/above 40%. For Spreadtrum, 3G chipsets should increase from 20% of total revenue at the end of 2010 to 40% by the end of 2012.
Spreadtrum is viewed by the Chinese government as a local Chinese company vs. MediaTek which is Taiwanese. Spreadtrum receives R&D grants of a few million US dollars annually from the Chinese government. Spreadtrum is a preferred vendor to promote the TD-SCDMA standard. The Chinese government wants a strong Chinese domestic chipset supplier.
Jianzhou Wang, the Chairman of China Mobile:
Single-chip may also fail, but the two-chip is no problem, that is coupled with a single-chip chip to do the TD call, without any problems. TD’s current dual-core chip has not done such a grade, but it can take the iPhone with a TD-chip chip.
[In response to the reporter’s question: From the technical point of view, TD maturity of the chip is able to meet the needs of the iPhone’s design?]
From: Wang: 4G is no timetable … [July 6, 2011, via Google translate]
Behind Spreadtrum’s Improbable Turnaround [July 10, 2011] (emphasis is mine)
The first opportunity came as a 90 million RBM TD-SCDMA research contract offered by China Mobile in May 2009. It was recalled by Chen Datong (see the interview) that “Leo Li and five other VPs of the company made an agreement, that if the product cannot meet the technical requirements by May, they would resign together.” (Note that Spreadtrum developed the first TD-SCDMA chip in China under Wu Ping’s management.) The 90 million contract helped Spreadtrum’s top line reflected in 2009 Q2 financial statements. (Chinese media reported this contractin 2009.)
… In June 2009, Spreadtrum ramped up a 6600L baseband chip developed under Wu Ping and launched the product aiming to compete against Mediatek’s MT6225. With comparable performance, the 6600L chip was cheaper by $1 USD on its own and by $2 USD in terms of integrated solution. The price advantage is huge given that the average profit on a low-end cell phone is about $1.4 USD. As a result, Mediatek, the market leader that enjoyed over 90% of market share back then, was forced to participate in this price war in the second half of 2009.
China T&T trip: Structural changes in China handset market [The Goldmann Sachs Group, May 24, 2011] (emphasis in paragraphs is mine)
…
Muted group procurement result of TD smartphone in May, indicating backend loaded demand with low SP mix in 2011
Leadcore, Huawei, and Borqs indicated that China Mobile (CM) procured only 1.2mn TD smartphone (SP) with a minimum order of 200,000 for each model, well below the market
expectation of 12mn units with minimum guaranteed order of 800,000 per model. CM has selected six models (three Ophone, two Android, and one feature phone) from Huawei, ZTE, Samsung, Lenovo, Motorola, and Coolpad. They attributed the disappointing central procurement result of TD smartphone to relatively poor quality of phones.…
CM would like to give 60% of its SP orders to Marvell. However, in a recent stability test by CM, Leadcore scored at 95% pass rate, with T3G at 93% and MRVL at only 65%. …
China market: TD-SCDMA device makers reportedly urged to slow cooperation with Marvell [March 31, 2011] (emphasis is mine)
Some TD-SCDMA end market device makers in China have reportedly urged their fellow local companies not to rush to adopt TD-SCDMA chips from Marvell Technology on concerns of stability and instead should use similar chips offered by China-based chipmakers, according to industry sources.
Device makers in China stated that the development of TD-SCDMA chips by China-based chipmakers has matured with most solutions having been used in volume commercially without problems regarding to stability.
Although Marvell has been eager to develop TD-SCDMA chips and also cooperated closely with China Mobile, China-based device makers are still skeptical about the stability and commercialization of TD-SCDMA chips from Marvell, claimed the sources.
Despite the concerns from China-based device makers, Asustek Computer has unveiled recently in Beijing a number of TD-SCDMA enabled handsets built using chipset solutions from Marvell, the sources indicated.
China handset and solution makers form alliance to push global image and sales [April 27, 2011] (emphasis is mine)
More than 30 makers in the upstream and downstream handset industries in China have recently formed an alliance, aiming to promote brand image as well as to push sales of China-made handsets globally, according to industry sources in Taiwan.
Participating members include Lenovo, ZTE, TCL, Beijing Tianyu, G’Five, Coolpad, SIM Technology and chipset makers Spreadtrum Communications and RDA Microelectronics, but do not include MediaTek and other Taiwan-based handset makers, the sources noted.
The exclusion of Taiwan-based chipset solution vendors and handset makers may encourage alliance members to adopt handset solutions and parts and components from suppliers in China, the sources indicated.
Update: Huawei Joins Group of Global OEMs Accelerating Adoption of China’s TD-SCDMA Standard with New Ultra-Thin ‘Super’ Smartphone Powered by Marvell’s Single-Chip Solution [Aug 10, 2011]
Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced that Huawei’s new T8300 ultra-thin smartphone, powered by Marvell’s industry’s first commercially available TD-SCDMA single chip solution, has passed China Mobile’s rigorous testing requirements and has shipped to its stores throughout China. The ultra-thin Huawei T8300 measures only 11.2 millimeters thick with Marvell® PXA918 processor and is one of the six new smart phones selected by China Mobile in its first round of procurement this year.
…
“Marvell’s TD-SCDMA single chip solution was the only semiconductor that offered the high-performance processing power and low power consumption we required to deliver a powerful, stylish, multimedia TD smartphone at the right price,” said Mr. Wang Yanmin, President of Mobile Phone Product Line, Huawei Device. “With its long-term commitment to TD and its leadership in the market, we were confident that Marvell could seamlessly deliver the right technology efficiently and be a true partner in bringing our new T8300 smartphone to market.”
Huawei’s T8300 is also equipped with Marvell’s latest 802.11n Wi-Fi solution and runs OMS 2.5, the newest Ophone operating system. It features a 3.2 inch capacitive touchscreen, 720p video decoding and gravity, light and proximity sensors.
Note that T8300 is the TD-SCDMA specific redesign of the IDEOS X3 smartphone announced at MWC’11 (but only delivered since June’11, for around US$240 in Singapore and for around US$200 in Malaysia). The Qualcomm MSM7227 SoC (announced in Feb’09 for sub-$150 smartphones) used in X3 was not able to support TD-SCDMA so the only available SoC was Marvell’s PXA920/918 SoCs family available since Sep’09 (although capable of passing the rigorous TD-SCDMA tests only almost 2 years later as on can see from Marvell’s above press release).
Update: The PXA920 opportunity was realized only in September 2011, two years later than the September 2009 launch. See: First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]
Marvell Drives New Rollout of TD-SCDMA Smartphones from China Mobile, the World’s Largest Mobile Operator [June 28, 2011] (emphasis is mine)
– ZTE Launch Signals New Era of TD-SCDMA Smart Devices in China Powered by Marvell’s Industry-First Single Chipe Solutions
Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced the introduction of four new TD-SCDMA (Time Division Synchronous Code Division Multiple Access) smart devices by ZTE, including two smartphones, a mobile tablet and a mobile hot spot device. All four devices are customized for China Mobile’s 3G TD-SCDMA market, and feature Marvell’s industry-first TD-SCDMA single chip solution and the most advanced mobile 802.11n Wi-Fi technology with beam-forming capability.
…
The ongoing collaboration between Marvell and ZTE, one of China’s most prominent and innovative communications companies, delivers highly cost-effective smart devices to Chinese end users that are tailor-made for China Mobile’s TD-SCDMA standard. Marvell and ZTE have also worked together to develop end-to-end TD-HSPA+. In the future, the two companies intend to further cooperate to develop creative mobile phone solutions and emerging mobile Internet applications. In recent years, the two companies have also collaborated on a passive optical network (PON), network switches, WLAN and CPUs.
ZTE Product Highlights
- Blade U880, one of ZTE’s flagship smartphones, is powered by the Marvell® PXA920 and features a 3.5 inch WVGA capacitive touchscreen at a resolution of 800 x 480 pixels, delivering exquisite pictures with rich colors and multi-touch. Other features include Android 2.2 support, a TD-SCDMA +WLAN dual wireless Web connection, WLAN-AP wireless routing, CMMB (MBBMS) mobile phone TV, a 5 megapixel auto-focus camera, 720p high-definition video, GPS/AGPS navigation and a 3D graphics processing accelerator.
- Light Tab T9, powered by the Marvell PXA920, is a 7-inch tablet with a WVGA capacitive touchscreen that is only 12.6 millimeters in thickness. It supports phone calls, China Mobile’s CMMB+MBBMS mobile TV, WLAN, Bluetooth and FM. The device also ships with GPS, an electronic compass, an eBook reader and a camera.
- U802 is a highly affordable (sub 1,000 Renminbi [RMB]), all-white smartphone powered by the Marvell PXA918. It features a 2.8 inch touch screen, WLAN/WAPI data connection, CMMB TV, accelerometer for UI auto-rotate, 3 megapixel and 0.3 megapixel dual cameras, a 3D graphics accelerator, Android 2.2 support and a customized Widget desktop.
- A6 is a highly affordable mobile hot spot device customized for TD-SCDMA networks powered by the Marvell PXA920. It ensures smooth switching between TD and Wi-Fi and self-creation of hotspots. It supports up to eight terminal access points and is small, portable and easy to operate.
中兴U880 ZTE U880 (ZTE中兴U880) (ZTE ZTE U880) [extracted on July 11, 2011]
(via Google translate)
- 参考价格: Price:
- ¥ 1180 [北京] ¥ 1180 [Beijing]
网络模式: GSM,TD-SCDMA Network mode: GSM, TD-SCDMA
- 外观设计:直板 Design: Straight
- 主屏尺寸: 3.5英寸480×800像素 The main screen size: 3.5 inches480 × 800 pixels
- 触摸屏:电容屏 Touch screen: capacitive touch panel
- 摄像头像: 500万像素CMOS Camera head: 500 million pixel CMOS
- 操作系统: Android OS v2.2 Operating System: Android OS v2.2
- 机身内存: 512MB Body Memory: 512MB
- 电池容量: 1250mAh Battery capacity: 1250mAh
中兴U880参数 ZTE U880 parameters [extracted on July 11, 2011]
(via Google translate)
Listing Date
纠错 2011年05月 in May 2011手机类型 Phone type
纠错 3G手机 3G mobile phone主屏尺寸 The main screen size
纠错 3.5英寸 3.5 inches触摸屏 Touch Screen
纠错电容屏 capacitors screen主屏材质 The main screen material
纠错 TFT TFT主屏分辨率 The main screen resolution
纠错 480×800像素 480 × 800 pixels主屏色彩 The main screen color
纠错 26万色 262K网络模式 Network mode
纠错 GSM , TD-SCDMA GSM , TD-SCDMA数据业务 Data services
纠错 GPRS,EDGE,TD-SCDMA,HSPA GPRS, EDGE, TD-SCDMA, HSPA支持频段 Support band
纠错 2G:GSM 850/900/1800/1900 2G: GSM 850/900/1800/1900
3G:TD-SCDMA 1880-1920/2010-2025MHz 3G: TD-SCDMA 1880-1920/2010-2025MHz操作系统 Operating system
纠错 Android OS v2.2 Android OS v2.2CPU频率 CPU frequency
纠错 800MHz 800MHz机身内存 Body memory
纠错512MB 512MB存储卡 Memory card
纠错MicroSD卡,支持App2SD功能 MicroSD card support App2SD function电池容量 Battery capacity
纠错1250mAh 1250mAh键盘类型 Keyboard type
纠错 虚拟QWERTY键盘 the virtual QWERTY keyboard机身颜色 Colors
纠错黑色 Black手机尺寸 Phone Size
纠错114×56.6×11.8mm 114 × 56.6 × 11.8mm手机重量 Phone Weight
纠错 115g 115g
中兴U802 ZTE U802 [extracted on July 11, 2011]
(via Google translate)
- 网络模式: GSM,TD-SCDMA Network mode: GSM, TD-SCDMA
- 外观设计:直板 Design: Straight
- 主屏尺寸: 2.8英寸 The main screen size: 2.8 inches
- 触摸屏:支持 Touch screen: Support
中兴U802参数 ZTE U802 parameters [extracted on July 11, 2011]
(via Google translate)
Listing Date
纠错 2011年05月 Correction in May 2011手机类型 Phone type
纠错 3G手机 , 智能手机 ,电视手机 Correction 3G mobile phones , smart phones, TV mobile phone外观设计 Design
纠错 直板 Correction straight主屏尺寸 The main screen size
纠错 2.8英寸 Correction 2.8 inches触摸屏 Touch Screen
纠错 支持 Error correctionsupport主屏材质 The main screen material
纠错 TFT Correction TFT网络模式 Network mode
纠错 GSM , TD-SCDMA Correction GSM , TD-SCDMA数据业务 Data services
纠错 GPRS,EDGE,TD-SCDMA CorrectionGPRS, EDGE, TD-SCDMA支持频段 Support band
纠错 2G:GSM 850/900/1800/1900 Correction 2G: GSM 850/900/1800/1900
3G:TD-SCDMA 1880-1920/2010-2025MHz 3G: TD-SCDMA 1880-1920/2010-2025MHz操作系统 Operating system
纠错 Android OS v2.2 Correction Android OS v2.2CPU频率 CPU frequency
纠错 624MHz Correction 624MHz存储卡 Memory card
纠错 MicroSD卡,支持App2SD功能 CorrectionMicroSD card support App2SD function键盘类型 Keyboard type
纠错 虚拟键盘 Correcting the virtual keyboard机身颜色 Colors
纠错 黑色 Black
http://shop.zte.com.cn/main/mobile/shop_mob_partinfo.jsp?pid=3427&listName=&catalogId=13381 [extracted on July 11, 2011]
(via Google translate)
ZTE Light Tab T9 ZTE Light Tab T9
2480元 2480 yuan
TD-SCDMA HSDPA/HSUPA/GSM/EDGE 智能终端 TD-SCDMA HSDPA / HSUPA / GSM / EDGE smart terminal
7 寸WVGA电容式触摸大屏 7-inch WVGA large capacitive touch screen
厚仅12.6mm,纤薄便携,质感十足 Thickness of only 12.6mm, slim, portable, full texture
超长续航能力:21天待机,5.5小时视频播放 Long battery life: 21 days standby and 5.5 hours of video playback
采用Android 2.2操作平台,支持更多业务应用 Using Android 2.2 platform, support more business applications
支持中国移动CMMB+MBBMS移动电视,特有智能视频增强技术有效提升画面质量 China Mobile CMMB + MBBMS support mobile TV, unique intelligent video enhancement technology to effectively improve the picture quality
支持中国移动深度定制的宽带互联网、飞信、音乐随身听*、DM*等增值业务 The depth of customization to support China Mobile’s broadband Internet, flying letters, music player *, DM * and other value-added services
最高支持32G扩展卡、U盘功能 Up to 32G expansion card, U disk function
支持WLAN、蓝牙、FM功能 Support for WLAN, Bluetooth, FM function
支持重力传感、光敏感应、GPS导航 Support for gravity sensing, light-sensitive sensors, GPS navigation
Andorid2.2 custom blade moving ZTE U880 TD evaluation [June 17, 2011]
A too early assesment of the emerging ‘Windows 8’ dev & UX functionality
Update on the recent craze in mass media to call the new era “post-PC” by Frank X. Shaw Microsoft Corporation [19 Aug 2011 3:37 PM]:
Where the PC is headed: Plus is the New “Post”
In the past year, and again in the past few weeks, I’ve seen a resurgence of the term “post” applied to the PC in a number of stories including The Wall Street Journal, PC World and the Washington Post. Heck, I even mentioned it in my 30th anniversary of the PC post, noting that “PC plus” was a better term.
…
… eReaders, Tablets, Smartphones, Set top boxes, aren’t PC killers, but instead are complementary devices. They are each highly optimized to do a great job on a subset of things any PC can also do. …
…
I’ll be the first to admit that these new “non-PC” objects do a great job at enabling people to communicate and consume in innovative and interesting ways. That’s not surprising, because they were expressly designed for that purpose. But even their most ardent admirers will not assert that they are as good as PCs at the first two verbs, create and collaborate. And that’s why one should take any reports of the death of the PC with a rather large grain of salt. Because creating and collaborating are two of the most basic human drives, and are central to the idea of the PC. They move our culture, economy and world forward. You see their fingerprints in every laboratory, startup, classroom, and community.
At Microsoft, we envision a future where increasingly powerful devices of all kinds will connect with cloud services to make it all the more easier for us social beings to create, communicate, collaborate and consume information. I encourage you to tune into our BUILD conference in mid-September where our vision for this world of devices will become clearer.
Update on development timeframe by Steven Sinofsky Microsoft Corporation [17 Aug 2011 11:48 PM]:
@TrooperKal — we finished Windows 7 in July of 2009 and had started our long lead work on Windows 8 a little before that. That’s similar to how we worked on Windows 7 relative to the previous release.
[Re: TroperKal’s question: “It is pretty obvious from your team structure and the already discussed features of v.8 that work has been underway for some time. Just for curiosity’s sake, when did work properly begin on this new version?” ]
June 20-24:
Windows 8 for software developers: the Longhorn dream reborn? [by Peter Bright, June 23, 2011]
…
Windows 8 will ship with a pair of runtimes; a new .NET runtime (currently version stamped 4.5), and a native code C++ runtime (technically, COM, or a derivative thereof), named WinRT. There will be a new native user interface library, DirectUI, that builds on top of the native Direct2D and DirectWrite APIs that were introduced with Windows 7. A new version of Silverlight, apparently codenamed Jupiter, will run on top of DirectUI. WinRT and DirectUI will both be directly accessible from .NET through built-in wrappers.
WinRT provides a clean and modern API for many of the things that Win32 does presently. It will be, in many ways, a new, modern Win32. The API is designed to be easy to use from “modern” C++ (in contrast to the 25 year old, heavily C-biased design of Win32); it will also map cleanly onto .NET concepts. In Windows 8, it’s unlikely that WinRT will cover everythingWin32 can do—Win32 is just so expansive that modernizing it is an enormous undertaking—but I’m told that this is the ultimate, long-term objective. And WinRT is becoming more and more extensive with each new build that leaks from Redmond.
WinRT isn’t just providing a slightly nicer version of the existing Win32 API, either. Microsoft is taking the opportunity to improve the API’s functionality, too. The clipboard API, for example, has been made easier to use and more flexible. There will also be pervasive support for asynchronous operations, providing a clean and consistent way to do long-running tasks in the background.
DirectUI is built around a core subset of current WPF/Silverlight technology. It includes support for XAML, the XML language for laying out user interfaces, and offers the rich support for layouts that Win32 has never had. This core will give C++ programs their modern user interface toolkit and, at its heart, it will be the same toolkit that .NET developers use too. (DirectUI is a name Microsoft has used before, internally, for a graphics library used by Windows Live Messenger. The new DirectUI appears to be unrelated.)
Jupiter is essentially Silverlight 6; a fully-featured, flexible toolkit for building applications. The exact relationship between DirectUI and Jupiter isn’t entirely clear at the moment. It’s possible that they’re one and the same—and that DirectUI will grow in functionality until it’s able to do everything that Silverlight can do. It’s also possible that DirectUI will retain only core functionality, with a more complete framework built on top of its features. Another option is that Jupiter refers specifically to immersive, full-screen, touch-first applications.
XAML and the WPF-like, Silverlight-like way of developing GUIs are going to be absolutely central to Windows development in the future. Testament to their new importance is a reorganization that occurred at the start of this week. Instead of operating under DevDiv’s roof, the XAML team has been broken into three parts. The group working on XAML and related technology for use in Windows has moved to WinDiv, and the group working on it for Windows Phone, Xbox, and the browser plugin has moved to Windows Phone. Only the group that works on the developer tools—including Visual Studio and Expression Blend—is staying behind in DevDiv. The internal Microsoft e-mail announcing the change notes that the XAML team has been working with the Windows team for the duration of Windows 8’s development; this move simply makes them a formal part of the UI team.
…
What of HTML5 and JavaScript? They’ll be an option too. Microsoft has ventured down the HTML application path before, with its HTAtechnology. HTAs—HTML Applications—are packages of HTML, JavaScript, CSS, and other resources that run in a special trusted mode. The normal constraints that regular HTML webpages are governed by—for instance, an inability to access local resources—don’t apply to HTAs: HTAs can write to the file system, access arbitrary network resources, and more. In other words, they’re webpages stripped of some of the limitations that make webpages unsuitable replacements for desktop applications.
New-style HTML5 immersive applications won’t be distributed as HTAs, but many of the same principles are likely to apply. Like HTAs before them, they’ll gain greater access to operating system functionality than regular webpages—so they’ll be able to call Windows APIs and have a user interface that feels less like a webpage, more like a native application. Feature-wise, they should be at the same level as .NET and native programs. It’s just that they’ll use an HTML5 programming model and JavaScript. The net result should be something that’s familiar to Web developers, but without the functional deficits that Web applications normally suffer.
Far from being a developer disaster, Windows 8 should be a huge leap forward: a release that threatens to make development a pleasure for native, managed, and Web developers alike. The unification of the .NET and native worlds; the full hardware acceleration; the clean, modern APIs; Avalon as the primary solution for creating Windows UIs—this is what Longhorn’s WinFX promised all those years ago, and this time around it looks like it might actually happen.
…
Microsoft splits up its XAML team: What’s the fallout? [June 23, 2011] (emphasis is mine)
… Microsoft on June 20 split up its XAML team, sending part of it to Windows, part to Windows Phone and leaving part in the Developer Division, according to an e-mail from Developer Division chief Soma Somasegar dated June 20. …
From: S. Somasegar
Sent: Monday, June 20, 2011
To: Client and Mobile Team
Cc: Developer Division FTE; Steven Sinofsky; Julie
Larson-Green; Terry Myerson; David Treadwell
Subject: Bringing together client platform effortsMICROSOFT CONFIDENTIAL
Over the last couple of years, our Client and Mobile team has done a fantastic job of building a number of XAML related technologies that have been a huge value add to the Microsoft client platforms and an instrumental part of delighting our developer customers. The agility and customer focus that the team has demonstrated over the years has been a pleasure to watch.
Today, we are making some organization changes to bring our platform technologies under a single management structure. These changes are centered around three focus areas:
• The team working on XAML technologies for Windows will move to Windows.
• The team working on XAML technologies for Windows Phone, Xbox and browser plugin will move to Windows Phone. [Microsoft Mobile Communications Business is now the Windows Phone Division [by Mary Jo Foly in ZDNET, June 16, 2011]]
• The Client and Mobile tools teams, including Windows Phone tools and XAML tools, will stay in DevDiv.
These changes are all effective immediately. From a performance review perspective, we will do this year’s performance review underthe DevDiv organization model.
I want to thank Kevin Gallo [publicly so far: General Manager on Silverlight, he was originally writing the graphics engine of WPF but by 2007 was already product unit manager for Silverlight, now he has been moved to the Windows Phone where the Silverlight heritage will continue to live] and the team for all the great work that they have done over the years. Moving forward, I’m very excited to bring the client platform efforts closer to the platform teams. There is a lot of very exciting and critical work underway as part of our next wave of platform releases and I am very eagerly looking forward to seeing the team’s work in the hands of our developers and customers.
The follow-up emails will provide more details on thechanges to those impacted. Please join me in wishing Kevin and the team all the very best as we move forward. If you have any questions about this change, please let your manager or me know.
-somasegar
Please welcome the XAML platform team to Windows! [by Scott Barnes, June 24, 2011] (emphasis is mine)
…
From: Julie Larson-Green Sent: Monday, June 20, 2011 9:35 AM To: Grant George; Jon DeVaan; Julie Larson-Green; John Cable; Yves Neyrand; Craig Fleischman; Bambo C. Sofola; Scott Herrboldt; Greg Chapman; Julie Bennett; Jeff Johnson; Ales Holecek; Mohammed El-Gammal; Chuck Chan; Michael Fortin; Eric Traut; Jensen Harris; Linda Averett; Alex Simons (WINDOWS); Gabriel Aul; Dennis Flanagan; Iain McDonald; Samuel Moreau; Dean Hachamovitch; Michael Angiulo; Antoine Leblond; Tami Reller; Chris Jones (WINDOWS LIVE); Jonathan Wiedemann; Ulrike Irmler; Adrianna Burrows Cc: XAML Team; Kevin Gallo; S. Somasegar; Terry Myerson; Sharman Mailloux Sosa; Brad Fringer; Steven Sinofsky
Subject: Please welcome the XAML platform team to Windows!
We’re pleased to announce the transition of the XAML platform team from the Developer Division to the Windows team. While the team has been working side-by-side with the Windows team for the entire project, this step brings them into our team formally.
The team will continue their work on Windows 8 as planned and will join our Developer Experience (DEVX) team. This transition allows us to bring together our platform development team in a single-management structure.
The dev, test, and pm leaders who will be leading the team reporting to AlesH, YvesN, and LindaAv are:
- Sujal Parikh, Development Manager
- Eduardo Leal-Tostado, Test Manager
- Joe Stegman, Group Program Manager
The leads and individuals joining our team are receiving this mail and have received communication on next steps.
These changes in leadership and organization are effective today. For the purposes of finishing out the fiscal year and the performance review process the team will operate under the existing management structure.
There will be an informal Q&A session today to welcome everyone and answer any questions that folks might have.
– XAML team welcome – 2:00-3:00 in building 37/1701Please join me in welcoming these folks to our organization! Julie…
Somewhat may be related: Non-iPad tablet vendors likely to launch new Wintel-based models to compete with Apple in 2012 [June 24, 2011]
Intel and Microsoft are jointly touting a new Wintel-based platform for tablet PCs, raising hopes among non-iPad tablet PC vendors that they may be able to compete more effectively with Apple in the segment in 2012 with models other than ARM/Android-based products, according to industry sources.
Most non-iPad table PC vendors have been frustrated recently due to lower-than-expected performance of their tablet PCs built with ARM/Android. While attributing the slow sales to the instability of Android and the strong brand image that Apple enjoys, some vendors have also begun mulling new strategies to strengthen their competitiveness.
Knowing the demand from tablet PC vendors, Intel and Microsoft have recently revealed a roadmap for their Wintel platform to production partners, said the sources, noting that the new platform will come with a less than 5W low-power CPU from Intel paired with Microsoft’s Windows 8 OS.
While Intel is also expected to lower prices for its new CPUs, tablet PC vendors also hope that the new Wintel platform will help them tackle the compatibility issues found between Android 3.0 and 3.1.
June 14-21:
Premature cries of Silverlight / WPF skill loss. Windows 8 supports all programming models [by David Burela, June 14, 2011]
…
A few people have been digging into the Windows 8 Milestone 3 leak and peeking into the UI framework and .dlls that exist. The most vocal of these have been @JoseFajardo and people in this forum thread http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak
What people have found so far is that while yes it is possible to create applications using HTML + Javascript, there is a whole new framework laying underneath that can be programmed against by almost any language / framework.
The first piece of the puzzle comes from the new application model for creating applications. There are a number of codenames here that need to be sorted out
- DirectUI: The underlying framework that creates, draws the visual elements on the screen.
- Jupiter: The new packaging format of applications on Windows 8. Allows apps to be written in language of choice.
- Immersive applications: Current theory is that these are apps that execute within the ‘new shell’ in windows 8. And are aware of being split paned and resized. Like was shown with the RSS feed reader.
Direct UI
Direct UI has been around since Windows Vista days. Previous is seemed to be focused around UI basics for the OS such as theming app windows in the ‘new vista style’ vs. classic theming in WinXP. http://blog.vistastylebuilder.com/?tag=directui
Now it seems that Direct UI is being overhauled to have additional functionality to load XAML applications, new animations, etc.
…
Jupiter
interesting rumor fact : WP8 rumored to be codenamed Apollo, and Apollo is the son of Jupiter
Jupiter being the new UI framework of Win8
http://twitter.com/#!/josefajardo/status/78826337250451457…Jupiter is shaping up to be a very very lean SL/WPF implementation
http://twitter.com/#!/josefajardo/status/79423110755008512…your SL/WPF skills will be invaluable for DirectUI apps, and you get a new framework that is seriously lean!!!
http://twitter.com/#!/josefajardo/status/79425349938712577DirectUI.dll is basically Silverlight (agcore.dll) ported to Windows/WinRT
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=441627#post441627Jose Fajardo has been a great source of information on Windows 8 leaks. From information he has dug up, as well as information on the forums, it seems that the new Jupiter programming API is a mashup between WPF & Silverlight.
…
While the new Jupiter programming model may not be a direct continuation of WPF or Silverlight it does seem to have a lot of code from both technologies. Jupiter instead seems to be a ‘Next generation’ XAML based framework. A framework that can be targeted against by all main current languages used by the typical .Net developer (C#, HTML, etc)
*speculation* This could be because of the calls from the development community to make WPF & Silverlight more aligned. Perhaps we’ll see an updated ‘Silverlight’ framework when Windows Phone 8 is released that is compatible with Jupiter.
Creating applications with Jupiter
As further evidence that Jupiter applications can be created with your language of choice, and that it has roots in Silverlight, here are some examples of how to create applications.
C# & XAML
Here is an example of using C# to invoke a new Jupiter based application. The really interesting thing to notice here is that the loading screen has the iconic Silverlight loading animation!
…
C++
Example of an application being created in C++ with a single call to CreateImmersiveWindowFunc
…
HTML + Javascript
There are some initial attempts at getting HTML working with the new frameworks. The apps and manifests have been created, but a few more hooks may be required to get a fully working version
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=446552&viewfull=1#post446552There are mentions that you can hooks into Direct UI through the COM hooks from Javascript. And also that you may be able to use Direct UI XAML + Javascript. Similar to how Silverlight was done in the original Silverlight version 1.
Immersive applications
There is some confusion over the distinction between a “Jupiter app” and an “Immersive app”. Immersive apps require a call to CreateImmersiveWindow and can make calls to the new immersive namespace
…
Immersive applications are ones that were shown to live inside of the new Windows 8 shell. Examples of functions that an immersive app can do can be seen with the RSS reader app. When it was docked and resized, it knew to display its data in a different format.
- Classic / Jupiter applicationswill run in the ‘classic windows’ desktop view that was seen when they fired up excel
- Immersive applications will be embedded within the new shell
Will this work for existing applications?
There is evidence that existing applications can be wrapped up in the new packaging format.
WindowsStore is basically written in C++ and leverages Windows Runtime. HTML5/JavaScript is just a (very very) thin layer for the interface
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=442463&viewfull=1#post442463So while existing applications may not run with the new Direct UI framework, it seems they will still be able to be packaged and distributed through the Windows 8 App store. This was discovered by Long Zheng a few months ago.
The AppX format is universal enough so it appears to work for everything from native Win32 applications to framework-based applications (WPF, Silverlight) and even *gasp* web applications. Games are also supported.
http://www.istartedsomething.com/20110405/first-look-at-the-future-of-application-deployment-on-windows-8-appx/Conclusion
While Microsoft only showed off the HTML hooks into Jupiter, I am a LOT more excited about the upcoming XAML based framework.
If you are an existing WPF, Silverlight or Windows Phone 7 developer, it seems that your XAML based skills will carry across fine to the new development framework on Windows 8.
My thoughts are that Microsoft announced that applications can be created in HTML in the same way that they announced it in WindowsXP with active desktop, and then again in Vista with “HTML based sidebar gadgets”. It was a way of saying “hey you can use your existing web skills to create applications on Windows 8.
And that Microsoft plans on unveiling the new Jupiter SL/WPF hybrid framework for all of the “Real developers” at BUILD in 3 months.…
riagenic [Scott Barnes, the harsh critic being a previous insider, see much below] Says:
June 14, 2011 at 7:13 pmHmmm… my memory is flooding mah brain with “remember…” moments… Before I left the team etc I remember hearing the windev teams wanted to put a 3rd Animation framework on the market. At first we laughed and ignored it with “oh great, what well need…a third option to confuse the already converted..”
Now thinking on it more, me thinks its this mystery framework coming to haunt us all. Now, i’m thinking this concept has existed but was already ported across to the XAML way of life around Windows 7 timelines (memory is sketchy on this one). If that’s correct then i think this is an official code-reset on WPF/Silverlight but with reduced capabilities (ie less the bloat).
Question is how mature is it compared to the two? it’s all well and good to throw a FILE->NEW->UX Platform onto the table, but if it lacks parity with the existing? what have we gained?….performance?…i’ll wait until i see how the fundametals found in most photoshop effects filters gets applied here and performs under what i call “developer-art load”….lots of glows, dropshadows and crazy ass animations..
…
Win8 M3 (7955) findings relevant to Managed .net & WPF/SL developers [[Jose Fajardo] June 14-17, 2011]
[Forum discussion on comparing WPF UIElement, Silverlight UIElement, WP7 Silverlight UIElement and WinMD(DirectUI)]
@vbandi András Velvárt
Don’t worry abt Silverlight! Jupiter has dep props, similar API & layout logic, RenderTransform, UIElement, etc http://bit.ly/mdL06i [Win8 M3 (7955) findings relevant to Managed .net & WPF/SL developers]
16 Jun via MetroTwit@vbandi András Velvárt
After analysing http://bit.ly/mdL06i , Jupiter SEEMS to me like a customized Silverlight for Win8. Much like SL 4 WP7, but more custom.
16 Jun via MetroTwit…
jmorrill Jeremiah Morrill
@josefajardo @markmacumber The other hard part is these guys are reverse engineering, so they might be looking at some private impls.
16 Junjosefajardo Jose Fajardo
@jmorrill @markmacumber exactly, they could be doing things with the beta bits that it was never intended to do. Wrong assumptions 😉16 Jun
@vbandi András Velvárt
@josefajardo @jmorrill @markmacumber Still better than burying an entire technology based on half a sentence. 🙂
16 Jun via MetroTwit
Continuation of that: Win8 M3 (7989) findings relevant to Managed .net & WPF/SL developers [[Jose Fajardo] June 19-24, 2011]
…
SilverlightWPF [Jose Fajardo] 21 Jun 2011 11:27 AM
Originally Posted by NaiveUser
- God, this article got so many things wrong, or I should say I beg to differ
so here is my take
http://www.zdnet.com/blog/microsoft/…-trenches/9738 [Under the Windows 8 hood: Questions and answers from the trenches [by Mary Jo Foly in ZDNET, June 20, 2011]]- I guess there are two possible meanings for ‘Jupiter’, it could be the DirectUI.dll, or, it could be the whole api framework that exposed by WinRT/WinMD, includes DirectUI.dll and Windows.*.dll and some more. so basically Jupiter == DirectUI eitherway.
- essentially Windows Runtime is just ‘Modern COM’, which is just an interface for exposing code. its not an actual ‘runtime library’ like CLR. I think you can expose code written with any ‘runtime library’ as WinRT components, just like you can write COM components in C/VC++/VB6/Delphi/.NET/etc.
- DirectUI applications live in a HWND with a class called ‘JupiterWindowClass’ and a caption ‘Jupiter Window’, personally I think this IS strong ‘correlation’ betwwen Jupiter and DirectUI. and, as far as I can see there is ‘no direct correlation’ between DirectUI.dll and the old ‘DirectUI’ in dui70.dll which uses the ‘duixml’ markup.
- and I have never seen any connections between SLR/WCL and ‘everything else’. wcl*.dll exposed as WinRT ? where ? Windows Runtime is the marketing name for the SLR ? where does that come from ?
[Jose Fajardo:]
Jupiter could be an entire ecosystem too, could be the tooling + api that goes into creating jupiter apps.
Jupiter could be the next marketing buzz world, like “Silverlight” was!
Who the hell knows! I know I’m not confident enough to say that Jupiter==DirectUI!
Nor am I confident in saying WindowsRuntime is COM version next..
Regardless it’s all interpretation until MS come out and explain themselves.
Power to you if you can conclude all this, personally I only talk about things i know are factually correct that I’ve chased down to registry settings, code in exe’s/dll’s, or reproduced in code myself.
…
June 1 – June 3 and 6:
TINY FACTUAL INFORMATION FROM MICROSOFT
(say just HTML5 for now, not a bit more)
ilyen világos megfogalmazásokban én ezt mondanám:
– amit láttunk és hallottunk a demókban az olyan UX funkcionalitás, ami HTML5 és JavaScript ALAPÚ fejlesztési környezetből érhető el
– azt is láttuk, hogy amikor “az Interneten végzendő teendőkhöz nincsen ehhez az új UX környezethez szabott (“tailored”), új stílusú (“new style”) alkalmazásunk”, akkor az IE9-hez képest “touch first”-re áttervezett IE10-et használjuk
– ebben ugyanúgy vannak “odatűzött” webhelyek (“pinned sites”, vagyis URL-ekkel azonosított webalkalmazások vagy webhelyek), de vagy a Start Screen csemperendszerében vagy egy teljesen új kialakítású, amennyire meg tudom ítélni dinamikusan megjelenő (pl. “Frequent” illetve “Pinned” listák a képernyős billentyű felett) task bar-on helyezkednek el
– az új UX környezethez szabott (új stílusú) alkalmazások a Windows eszközökhöz (facilities) — tehát a natív platform eszközökhöz — is hozzáférhetnek, tehát nincsen két shell, csak egyetlen shell
– ugyanakkor arra a kérdésre, hogy miért nem írja át az Office részleg alkalmazásait erre az új UX környezetre, a konkrét válasz: “Valamit lehetséges, hogy tesznek a jövőben, most azonban az volt a célunk, hogy megmutassuk, nem kell az embereknek a meglévő alkalmazásaikat, melyeket jól ismernek, feladniuk ahhoz, hogy egy mobilabb form factorhoz jussanak. Vagyis az embereknek egy billentyűzetet kell csatlakoztatniuk és használhatják [régi alkalmazásaikat] ugyanúgy, mint eddig.”
The factual details:
Metro styled new entertainment experience on Xbox 360 [June 6, 2011]
Next-generation cloud client experiences based on the Metro design language [Jan 24, 2011]
Metro Design Language of Windows Phone 7 [on-line tutorial from Microsoft, Dec 5, 2010]
Building “Windows 8” – Video #1 [June 1, 2011]
– related press release: Previewing ‘Windows 8’ [June 1, 2011
… a few aspects of the new interface we showed today:
- Fast launching of apps from a tile-based Start screen, which replaces the Windows Start menu with a customizable, scalable full-screen view of apps.
- Live tiles with notifications, showing always up-to-date information from your apps.
- Fluid, natural switching between running apps.
- Convenient ability to snap and resize an app to the side of the screen, so you can really multitask using the capabilities of Windows.
- Web-connected and Web-powered apps built using HTML5 and JavaScript that have access to the full power of the PC.
- Fully touch-optimized browsing, with all the power of hardware-accelerated Internet Explorer 10.
… also talked a bit about how developers will build apps for the new system. Windows 8 apps use the power of HTML5, tapping into the native capabilities of Windows using standard JavaScript and HTML to deliver new kinds of experiences. These new Windows 8 apps are full-screen and touch-optimized, and they easily integrate with the capabilities of the new Windows user interface. There’s much more to the platform, capabilities and tools than we showed today.
… we have much more to reveal at our developer event, BUILD (Sept. 13 – 16 in Anaheim, Calif.)
Microsoft’s Steven Sinofsky, live from D9 [June 1, 2011]
… Oh yeah, we built these in house, but we’re giving devs APIs and an SDK based on HTML5 and Javascript that allows them to create apps like this. We have lots of new tools, but still you can connect to our file tools, etc. … Apps can connect to each other. It’s not just apps alone, it’s applications connecting to each other. … You design for touch, and then we translate the touch commands to mouse and keyboard. …
Microsoft’s Windows 8 Demo From D9 (Video) [June 1, 2011]
Microsoft Unveils ‘Windows 8’ to World on 2011 Computex in Taiwan [June 2, 2011]
– the same with Silverlight Smooth Streaming video: Microsoft Unveils “Windows 8” to World
– the related Microsoft press release on 2011 Computex in Taiwan: Microsoft Previews ‘Windows 8’
Windows 8 NUI GUI Preview Video Shoots Past 2 Million Views the First Day [June 3, 2011]
… everything that users see in the demo videos will actually make it in the RTM Build of Windows 8, otherwise, Steven Sinofsky, President, Windows and Windows Live Division would not have allowed it to be made public, per the translucency communication strategy he implemented even before Windows 7.
In the end, I think it’s a safe bet to expect Sinofsky to underpromise and overachieve with Windows 8, just as he did with Windows 7.
Office and other apps:
Why not the Office team will rewrite the Office into that kind of aproach?
[Walt Mossberg, [6:45-6:51]]
They may do something in the future but we don’t think people should give up everything they know online just to get to a more mobile form factor. So people can plug-in a keyboard and use just like they would use otherwise.
[Julie Larson-Green [6:51-7:06]]
Windows 8: It’s the Applications, Stupid! [June 3, 2011]
It’s a huge question. While Larson-Green said that the current version of Office would behave in touch-friendly fashion in Windows 8, it’s obvious that it’s not going to feel like it was written for the new interface. (You could tell that when she fumbled with Excel as she tried to drag it off-screen with her fingertip.)
I imagine that the real answer to Walt and Kara’s queries is that yes, of course, Microsoft is going to reimagine Office for Windows 8. But even then, it’s not obvious whether the company is going to give Office a truly touch-centric interface as the default. (Sounds hugely risky and probably impossible to do well–all the Office apps are rife with features that will never work well without a mouse and keyboard.) Or mirror what it’s doing with Windows 8 and give Office two different interfaces. (That also sounds extremely tricky.) Or do something akin to what Apple did with its iWork suite, and build a separate version of Office with fewer features and a wholly new interface. (That sounds like it could make sense.)
Every other significant software developer is going to have to deal with similar questions. It’s not yet clear what the right answers are–it’s possible that Windows’ new look will be a bust and it’ll be silly to invest energy in supporting it. And the right answers will be different for different companies. But ignoring Windows 8 won’t be an option.
Could You Turn A Windows 8 Smartphone Into A Windows 8 Computer? [June 2, 2011]
I caught Sinofsky after his D9 talk and asked — would Windows 8, the full-blown operating system, be running on future phones?
Sinofsky smiled, and smiled big, but he only said that’s not something Microsoft has announced yet. So, we wait to see.
What if it happens? Getting to that unification “first” doesn’t necessarily mean that Microsoft somehow “wins” in doing so. For one, would it really run that well on phone-sized devices? That remains to be seen.
For another, it also means that Windows 7 Phone users would be upgrade-orphaned. The apps they have for that platform probably wouldn’t run on Windows 8 devices.
BUILD:
Does this [BUILD] event replace PDC this year and in the future?
Dr. Know said on June 2, 2010
BUILD isn’t a replacement of the PDC but a new event that takes a broader view of a developer community that now extends far beyond the realm of just “pro developers”. From hardware, to the web, to software and the PC … BUILD is the key developer event you should attend in 2011 (there won’t be a PDC this year).
Jennifer Ritzinger [Microsoft] said on June 3, 2010
BUILDing a bright future [June 1, 2011] (emphasis is mine)
… At BUILD, Microsoft will show off the new app model that enables the creation of web-connected and services-powered apps that have access to the full power of the PC.
The conference name, BUILD, reflects a call to action for the more than one hundred million developers driving the pace of technology: build experiences with the next version of Windows that will transform the computing experience for billions of people across the globe. …
Today, everyone can be a developer; the most tech-savvy generation we’ve ever seen is fueling demand for new tools and technologies. Many of the developers building web sites and apps that make an impact have no formal education in computer science or engineering. BUILD will be a gateway to new opportunity for all developers.
The professional developer community continues to be a vital part of the Microsoft ecosystem. We value the longstanding and deep relationship with this group and will continue to engage with this important audience in a way that best meets its needs. For these developers, BUILD connects Microsoft’s past to Microsoft’s future.
June 1 – June 6:
UPHEAVAL OF ENORMOUS PROPORTIONS (or more questions than answers)
- Food for harsh criticism because of absolutely no communication for the previous dev stories [ENORMOUS LENGTH]
- From a quite opinionated but quite unsatisfied previous insider: http://twitter.com/#!/MossyBlog[ENORMOUS LENGTH]
Food for harsh criticism because of absolutely no communication for the previous dev stories:
Windows 8: A missed opportunity. [June 3, 2011]
So the rumors were true. Microsoft was planning to radically reimagine Windows as we knew it. It would feature a modern, fluid touch interface, it was to be heavily inspired by Metro on Windows Phone, and it was to have an app store.
Good. Right? Not exactly. Its a bitter sweet outcome, because another rumor ended up being true. This one started by Scott Barnes, the sometimes controversial, seemingly always right former Silverlight PM. This rumor said that there was an internal struggle inside Microsoft, and the factions at war were the .NET/Wpf/Silverlight heads versus the Windows division heads.
The war is over. We lost. In an ironic, but telling turn of events, hot of the heels of the Mono guys forming a start up based around .NET, the inventors of the technologies themselves have seemingly given up on the platform.
Sounds dramatic, even outlandish right? Well so did the rumors about Silverlight, WPF, et all’s death. Yet here we are, and its sad because it represents a monumental missed opportunity.
Consider the following:
Microsoft had rare opportunity to throw backwards compatibility to the wind and make a clean cut. A fresh start. A new Windows.
Microsoft had the chance then to simplify and unify their developer story. Slim down .NET, remove the legacy cruft (Winform, older depreciated APIs) and simply call it “Silverlight”. Make it the de facto development platform on Windows, like it is on Windows Phone.
Say to developers: Here’s our Windows App store. The ONLY way to get published on the app store is to write a cross platform Silverlight application. This application will work on x86, x64, and ARM based environments. Its resolution independent, completely hardware accelerated, and secure.
You do many things at once: You simplify, unify, and move forward your developer story. You ensure a verifiable, secure execution environment on Windows 8. You solve the cross platform problem. You KEEP YOUR DEVELOPERS HAPPY. People who have invested years into your technologies do not appreciate being essentially shown the door.
Its fine to embrace HTML5/JS, if web developers want to cause themselves pain, then hey, thats them. Do NOT subject your loyal, devoted, armies of developers to the horrors of the web platform.
Microsoft: WTF?
We dont just need to #fixwpf, we need to #fixwindows8.
Microsoft refuses to comment as .NET developers fret about Windows 8 [Tim Anderson, June 3, 2011]
There is a long discussion over on the official Silverlight forum about Microsoft’s Windows 8 demo at D9 and what was said, and not said; and another over on Channel 9, Microsoft’s video-centric community site for developers.
At D9 Microsoft showed that Windows 8 has a dual personality. In one mode it has a touch-centric user interface which is an evolved version of what is on Windows Phone 7. In another mode, just a swipe away, it is the old Windows 7, plus whatever incremental improvements Microsoft may add. Let’s call it the Tiled mode and the Classic mode.
Pretty much everything that runs on Windows today will likely still run on Windows 8, in its Classic mode. However, the Tiled mode has a new development platform based on HTML and JavaScript, exploiting the rich features of HTML 5, and the fast JavaScript engine and hardware acceleration in the latest Internet Explorer.
Although D9 is not a developer event, Microsoft did talk specifically about this aspect. Here is the press release:
- Today, we also talked a bit about how developers will build apps for the new system. Windows 8 apps use the power of HTML5, tapping into the native capabilities of Windows using standard JavaScript and HTML to deliver new kinds of experiences. These new Windows 8 apps are full-screen and touch-optimized, and they easily integrate with the capabilities of the new Windows user interface. There’s much more to the platform, capabilities and tools than we showed today.
Program Manager Jensen Harris says in the preview video:
- We introduced a new platform based on standard web technologies
Microsoft made no mention of either Silverlight or .NET, even though Silverlight is used as the development platform in Windows Phone 7, from which Windows 8 Tiled mode draws its inspiration.
The fear of .NET developers is that Microsoft’s Windows team now regards not only Silverlight but also .NET on the client as a legacy technology. Everything will still run, but to take full advantage of Tiled mode you will need to use the new HTML and JavaScript model. Here are a couple of sample comments. This:
- My biggest fears coming into Windows 8 was that, as a mostly WPF+.NET developer, was that they would shift everything to Silverlight and leave the FULL platform (can you write a Visual Studio in Silverlight? of course not, not designed for that) in the dust. To my utter shock, they did something much, much, much worse.
and this:
- We are not Windows developers because we love Windows. We put up with Windows so we can use C#, F# and VS2010. I’ve considered changing the platform many times. What stops me each time is the goodness that keeps coming from devdiv. LINQ, Rx, TPL, async – these are the reasons I’m still on Windows.
Underlying the discussion is that developers have clients, and clients want applications that run on a platform with a future. Currently, Microsoft is promoting HTML and JavaScript as the future for Windows applications, putting every client-side .NET developer at a disadvantage in those pitches.
What is curious is that the developer tools division at Microsoft, part of Server and Tools, has continued to support and promote .NET; and in fact Microsoft is soon to deliver Visual Studio LightSwitch, a new edition of Visual Studio that generates only Silverlight applications. Microsoft is also using Silverlight for a number of its own web user interfaces, such as for Azure, System Center and Windows InTune, as noted here.
Now, I still expect that both Silverlight and native code, possibly with some new XAML-based tool, will be supported for Windows 8 Tiled mode. But Microsoft has not said so; and may remain silent until the Build conference in September according to .NET community manager Pete Brown [response #1 to the Silverlight Forum discussion [06-02-2011 6:44 PM]]:
- You all saw a very small technology demo of Windows 8, and a brief press release. We’re all being quiet right now because we can’t comment on this. It’s not because we don’t care, aren’t listening, have given up, or are agreeing or disagreeing with you on something. All I can say for now is to please wait until September. If we say more before then, that will be great, but there are no promises (and I’m not aware of any plans) to say more right now. I’m very sorry that there’s nothing else to share at the moment. I know that answer is terrible, but it’s all that we can say right now. Seriously.
While this is clearly not Brown’s fault, this is poor developer communication and PR from Microsoft. The fact that .NET and Silverlight champion Scott Guthrie is moving to Windows Azure is no comfort.
The developer division, and in fact the whole of Server and Tools, has long been a bright spot at Microsoft and among its most consistent performers. The .NET story overall includes some bumps, but as a platform for business applications it has been a remarkable success. The C# language has evolved rapidly and effectively under the guidance of Technical Fellow Anders Hejlsberg. It would be bewildering if Microsoft were to turn its back on .NET, even if only on the client.
In fact, it is bewildering that Microsoft is being so careless with this critical part of its platform, even if this turns out to be more to do with communication than technical factors.
From the outside, it still looks as if Microsoft’s server and tools division is pulling one way, and the Windows team the other. If that is the case, it is destructive, and something CEO Steve Ballmer should address; though I imagine that Steven Sinofsky, the man who steered Windows 7 to launch so successfully, is a hard person to oppose even for the CEO.
Update: Journalist Mary Jo Foley has posted [June 6] on what she “hears from my contacts” about Jupiter:
- Jupiter is a user interface library for Windows and will allow developers to build immersive applications using a XAML-based approach with coming tools from Microsoft. Jupiter will allow users a choice of programming languages, namely, C#, Visual Basic and C++.
Jupiter, presuming her sources are accurate, is the managed code platform for the new Windows shell – “Tiled mode” or “Tailored Apps” or “Modern Shell – MoSH”; though if that is the case, I am not sure whether C++ in this context will compile to managed or unmanaged code. Since Silverlight is already a way to code using XAML, it is also not clear to me whether Jupiter is in effect a new Windows-only version of Silverlight, or yet another approach.
Microsoft needs to tell Windows 8 developers now about ‘Jupiter’ and Silverlight [Mary Jo Foley, June 6, 2011]
I’ve blogged before about the XAML layer that Microsoft is building for Windows 8 as part of its “Jupiter” initiative. Yes, it still exists, I hear from my contacts. And yes, this will enable support of native Silverlight applications. (Does this mean Windows Phone apps written using Silverlight will be able to run on Windows 8 with no/few tweaks? I don’t know.)
…
Microsoft is still going to support Silverlight with Windows 8, and not only as a browser plug-in, my sources say.
At the 50,000-foot level, Microsoft wants to find a way to reinvigorate the Windows-development ecosystem. (I believe that’s one reason the Internet Explorer team has been talking all that “native HTML” nonsense. They really mean they’re trying to get developers to write HTML/JavaScript apps that use IE’s hardware acceleration for the “best” HTML experience.)
…
At the more granular and immediate level, Jupiter is the way that Microsoft is planning to get developers to write new “immersive” applications for Windows 8 that will use the IE 10 rendering engine while using the .Net and Silverlight technologies they already know. Jupiter is aiming to provide these developers with a managed code XAML library, so that developers can access the sensors, networking and other Windows 8 elements in a way to which they’re accustomed.
Applications built using Jupiter won’t be targeting the “classic” mode/shell that Microsoft showed off last week during its Windows 8 preview, I hear. They’ll be the same class of immersive apps targeting the new Modern Shell (MoSH) that Microsoft will be writing itself and/or trying to convince others to write using HTML5 and JavaScript.
It definitely seems Microsoft’s ultimate goal is to wean developers off Silverlight and to convince them to use HTML5 and JavaScript to write new apps for Windows, going forward. But until there’s better tooling for HTML5 (beyond what Microsoft provides via the F12 HTML tools in Internet Explorer), it seems the Softies are going to support .Net and Silverlight via new versions of Visual Studio, the .Net Framework and Expression.
I believe Jupiter is key to enabling Microsoft to continue to insist that Silverlight’s not dead (as far as a development platform) — at least for now. But anything that’s not a new Windows 8 “immersive,” modern application, going forward, is now going to be considered “legacy,” from what I can tell.
All of what I’ve said here is from sources who have asked not to be identified, not from Microsoft officials associated with Microsoft’s Windows or Developer Division. Like many devs I’ve heard from, I don’t believe Microsoft can’t afford to wait three more months to let its developer base know what its intentions are. So far, however, ill-advised silence seems to be the Softies’ plan….
[Pete Brown had a numerous other responses on that thread [Windows 8 apps going html5, wtf [from 06-01-2011 8:06 PM to 06-03-2011 3:23 PM when locked by Pete Brown] as until 3 days later having enormous visibility of 10,030,100 views] but being just kind of moderation responses, including – not a usual thing – editing responses by other for “non-civil” words, and finally closing the first thread and responding to another one with same topic [Windows 8 apps going html5, wtf – part 2 [from 06-03-2011 3:46 PM still on] as until 3 days later having large visibility of 1,118,657 views].
Besides Pete Brown’s responses the enormous bad publicity caused by that huge developers visibility will cost Microsoft quite a lot as Steve Barns nicknamed MossyBlog [See also his other responses after Pete Brown’s responses] remarked quite well on twitter:
@MossyBlog Scott Barnes: 900k views of just “Microsoft you suck” forum warfare.. thats over 500k eyeballs that Microsoft has to repair in min 2 years.. #fail 8 hours ago via web
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josephcooney Joseph Cooney by rickasaurus @ @MossyBlog The stats on this page say it’s 9M going on to 10M http://forums.silverlight.net/forums/17.aspx?PageIndex=3 8 hours agorickasaurus Richard Minerich @ @MossyBlog We had an internal meeting today to discuss if we should discontinue all Silverlight development. It’s that bad.
rickasaurus Richard Minerich @ @MossyBlog Oh yeah, plus all of the Kinect hate they’re getting from E3 8 hours ago
@MossyBlog Scott Barnes @rickasaurus oh? i’ve missed reading the E3..on my afternoon todo list… whats the gist of it? 8 hours ago via web
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rickasaurus Richard Minerich @ @MossyBlog Mostly just that hardcore gamers don’t give a toot about Kinect 🙂 8 hours ago
MossyBlog Scott Barnes @ @rickasaurus i’d prefer to see more info around Kinect beyond gaming and into windows market(s)..well whats left of it post win8 lol 8 hours ago
MossyBlog Scott Barnes @ @rickasaurus well Kinect as a game platform is really a wii style approach to it.. hardcore gamers arent really a good mkt for it 8 hours ago
@rickasaurus Richard Minerich @MossyBlog Sure, but E3 is a hardcore gamer conference, and MS was all Kinect! Kinect! Kinect! Kineeecccttttttt! 8 hours ago via TweetDeck
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MossyBlog Scott Barnes @ @rickasaurus heheh well in Microsoft you ride the new shiny object until it loses its appeal..so they are in the peak of the kinect orgy 8 hours ago
rickasaurus Richard Minerich @ @MossyBlog That’s the MS navel gazing culture for you. They’re so myopic and it drives me insane to watch. 8 hours ago
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@KristoferA KristoferA @MossyBlog @rickasaurus I presume there will be a JavaScript library for Kinect integration shipping with Win8… HTML + Kinect = Win 🙂 9 hours ago via web
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MossyBlog Scott Barnes @ @KristoferA @rickasaurus i can’t wait to combine jQuery and Kinect..it will be awesome… yay.. #celebratemediocrity 8 hours ago
rickasaurus Richard Minerich @ @KristoferA Why not :). That could make for some cool surfing. 8 hours ago
@MossyBlog Scott Barnes Sinofsky’s team need to be fired. thats my thoughts. 8 hours ago via web
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VicKlien Vic Klien @ @MossyBlog – Any counterweights to team-Sinofsky internally? Assuming ScottGu and Soma would have other ideas, I guess they’re outranked. 7 hours ago
MossyBlog Scott Barnes @ @VicKlien well i always thought @scottgu and team-sinfosky were two dueling titans internally anyway..but bobmu left, scotts in azure..so.. 7 hours ago
VicKlien Vic Klien @ @MossyBlog – The current when-to-reveal issue aside, do we really know Soma and ScottGu don’t also support promoting HTML5/JS above .NET? 7 hours ago
MossyBlog Scott Barnes @ @VicKlien Of course they support it… just like i support <insert your belief system> when you have a gun to my head 🙂 7 hours ago
@MossyBlog Scott Barnes 9 million is more than that site gets in a year almost… HOLY FUCK… 9 million people all seeing “Silverlight is kinda dead” undercurrent 8 hours ago via web
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traskjd John-Daniel Trask @ @MossyBlog Bet all the advertisers paying per impression on the SL forum are getting great ROI… 8 hours ago
josephcooney Joseph Cooney @ @MossyBlog plus the follow-up post (which is presumably what you saw) is nearly at 1M. That’s a lot of discontent. 8 hours ago
Pete_Brown Pete Brown @ @MossyBlog @josephcooney And there’s an open letter thread with 100k views. Smaller threads too, mostly OT, but I’m letting them stay 8 hours ago
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@MossyBlog Scott Barnes I feel for guys like @Pete_Brown who later have to clean this shit up. Pete needs to clone himself fast… /cc @josephcooney
@MossyBlog Scott Barnes
I am so glad I’m not a Microsoft Evangelist still.. i mean..fark me.. talk about walking into the lions den. 8 hours ago via web
@MossyBlog Scott Barnes 10 million pageviews so lets assume 50% of that is uniques… 5 million ppl around the world seeing “HTML5 vs JS is the future” undercurrents 8 hours ago via web
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malcolmsheridan Malcolm Sheridan @ @MossyBlog I think you should stop computing and take up gardening! 8 hours ago
@MossyBlog Scott Barnes There goes 3 years+ of hard work around Silverlight branding… nice one Sinofsky you jackass 8 hours ago via web
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jcdickinson Jonathan C Dickinson @ @MossyBlog the whole Win8 + HTML5 thing is easily fixed: <object data=”data:application/x-silverlight-2,”… 🙂 7 hours ago
@MossyBlog Scott Barnes windows internal politically objectives was to make Silverlight / .NET fail.. Mission accomplished.. you just undid 3 years of work in ~1wk 8 hours ago via web
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jtango18 Justin Taylor @ @MossyBlog I think you overestimate the liklihood of MS devs walking away from the platform. 8 hours ago
mstrobel Mike Strobel @ @MossyBlog the Windows team really doesn’t have the clout to effect change of this magnitude; devs aren’t going to abandon .NET for HTML. 8 hours ago
@MossyBlog Scott Barnes @mstrobel well that and lets just say we just sized the market of who they have to convince..5 million devs need to believe HTML5 8 hours ago via web
@MossyBlog Scott Barnes 5million+ is now your baseline for html5 convince metrics msft in 2yrs need to say They have more than this in adoption 8 hours ago via Twitter for iPhone
@MossyBlog Scott Barnes What if the Blend team were working on a HTML5 design tool… what would you all say… 😀 8 hours ago via web
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shrage Shrage Smilowitz @ @MossyBlog Html 5 design tool? yea and they’re going to call it Microsoft FrontPage? 7 hours ago
SilverlightMan Noah Addy @ @MossyBlog I would love that idea!!! Spitting out Javascript code for HTML5 development is no fun! 7 hours ago
lazycoder Scott Koon @ @MossyBlog “Please stop” 8 hours ago
KristoferA KristoferA @ @MossyBlog If the new Win8 UI instead was C# + HTML5/MSHTML instead of HTML5+JS then I would be less sceptical about it. 8 hours ago
kitron kitron @ @MossyBlog They better be working on something like that. 8 hours ago
mstrobel Mike Strobel @ @MossyBlog Same thing I said to Blend: no thanks. 8 hours ago
KristoferA KristoferA @ @MossyBlog .net is strong on the language and framework side. UI design tools is only a tiny part of the dev story… 8 hours ago
KristoferA KristoferA @ . @MossyBlog HTML5 and the HTML DOM is *not* the weak part. JavaScript is. A C# compiler that emits JS would be a different story. 8 hours ago
@MossyBlog Scott Barnes @KristoferA its possible 😉 …but to what gain? XAML out..HTML5 in? ..what gain? 8 hours ago via web
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KristoferA KristoferA @ @MossyBlog You know that SL and WPF sucks performance wise. If IE can supply a rendering engine that can be used from .net then it is a Win 8 hours ago
KristoferA KristoferA @ @MossyBlog A good app framework (.net fx), a solid language (C#), and a good rendering engine is all I ask for. JS is not a C# replacement. 8 hours ago
KristoferA KristoferA @ @MossyBlog XAML to HTML5 would be status quo. Maybe better performance. But what I am saying is: the UI rendering is a tiny part of apps. 8 hours ago
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mstrobel Mike Strobel @ @MossyBlog Same thing I said to Blend: no thanks. 8 hours ago
mabster Matt Hamilton @ @mstrobel I was shocked at the number of hands (including mine) that went up at #mvp11 when asked who hand-codes XAML. /cc @MossyBlog 8 hours ago
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@MossyBlog Scott Barnes @mabster @mstrobel i stopped being shocked and it grew into frustration.. “if only there was a tool that did that for you?” hmmm.. 8 hours ago via web
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mstrobel Mike Strobel @ @MossyBlog @mabster I mean, would you use a tool that wrote C# code for you? I loathe Blend. Hand-coding w/ R# is so much better IMO. 8 hours ago
mabster Matt Hamilton @ @MossyBlog I’ll try Blend at some point I guess. Hand coding works really well for me. /cc @mstrobel 8 hours ago
@MossyBlog Scott Barnes Heh sinofsky gets on stage and suddenly 10m voices all vanish at once – starwars / sl forum joke Tehehehe 5 hours ago via Twitter for iPhone
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redboltsnz Guy Robinson by MossyBlog @ @MossyBlog bottom line is D9 was about the end UX. Should never have talked about the technology unless they wanted to engage with devs. 3 hours ago
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@MossyBlog Scott Barnes @redboltsnz that’s actually a great insight… i agree! ..they should of just said “this is purty win8”.. 3 hours ago via web
Back to Pete Brown’s real responses: I will consider his first non-moderating response on that as his real response #2 (almost a whole day passed between those, he probably got permission from the above to really respond):]
Pete Brown’s #2 response [06-03-2011 4:30 PM] (Microsoft Community Program Manager – WPF, Silverlight, XNA, Windows Phone, more) (emphasis is mine)
That first link is a gizmodo article [Windows 8 and Its Incredibly Cool New Touch Interface [June 1, 2011]]. Nowhere in there is a microsoft person saying that HTML/Javascript are the exclusive way to write applications. It’s a new way, it’s an exciting way, and, let’s face it, a way that is likely to be hugely popular with web developers.
News outlets make assumptions. I can’t respond to that, neither does MS PR for reasons I don’t entirely fathom.
The press release shows only what we showed that day and is carefully worded to state as much. It doesn’t speak to Windows 8 as a whole.
I’m not a PR person. I don’t know why we word things the way we do, or why we show certain things. I’m just asking folks not to make assumptions here (one way or the other) based on information we haven’t actually shared.
We can’t say anything else until September. Trust me that the previous thread was visible at some of the highest levels inside Microsoft (one reason I edited to remove the trolls and insulting that was a problem and obscuring the message the thread was sending)
To be very clear: I’m not saying anything here other than “wait for //build/” and our press release is the official word until you hear otherwise from PR or top Microsoft leadership. There are no promises being made here. I’m not stating support or lack of support for any specific technology or group of technologies.
Pete Brown’s #3 response [06-03-2011 5:33 PM] (emphasis is mine)
Guys, don’t make it personal. It’s heading down the same road as next time.
Keep it to issues on topic. Keep it civil. Don’t be mean. Be respectful. Remember, we’re all peers here, not enemies.
Pete Brown’s #4 response [06-03-2011 6:32 PM] (emphasis is mine)
g.t.:
We spent 2 years developing a WPF project, and after all what I have seen, I am defiantly going html5 + JavaScript.
This makes zero sense to me and seems reactionary rather than a well-thought-out architectural decision.
You saw that you can write WPF apps for Windows 8. “Existing apps will run”. TBD if they can use the new shell, but they do run in classic mode at a minimum.
While I’ll be happy to be proven wrong, I’m going to go out on a limb here and say the majority of internal business applications are not going to make use of the new tile interface in a big way. Why? From my own informal surveys and 15 years in consulting (I’ve been at Microsoft just over 1.5 years), most business users, developers, and managers, are still stuck in “500 fields and a 100 column datagrid” mode when designing apps. It’s rare to find a team with a real UX pro involved up-front and who have the capability, skill, desire (and time/funding) to move beyond that. In addition, many businesses still run XP, or they run Windows 7 and will continue to do so for a long time. Windows 8 won’t be released for some time, and 7 is a very good OS with long legs. I’ve even seen businesses that require their users to stick with the classic Win2k style shell no matter what OS.
That all said, we’re squarely targeting WPF at ISV type applications, and Silverlight at business developers. I’ve been saying that one for a while now. That has no bearing on what we’re doing for Windows 8. Whether or not you can target the tile interface using anything beyond HTML/JS/CSS is a question for the //build/ conference to answer.
Silverlight 5 is still in progress. WPF v.next is still in progress. Both are scheduled for release. Both are real products with real features that real developers find really useful 🙂
Finally, we don’t have the full story. Making future architectural decisions based on assumptions from demos is irresponsible. Saying we should tell you more does not change the fact that you are making a decision based on a very minimal amount of evidence.
Pete
Pete Brown’s #5 response [06-05-2011 1:52 AM] (emphasis is mine)
GOD_G:
In september I expect to see in Pete’s blog articles like “The Present of Silverlight and WPF!” and “A lap around HTML5!”
I’m not a good Javascript developer. I dabble from time to time just with my site, but I have other people on my team who are currently doing an awesome job covering that side (Jon and Joe). Plus, if you knew me or my history in the WPF and Silverlight community (I doubt you do given your newness here), I’m not really one for party-line messaging.
History will be the only thing that shows what I do in September. Anything else is just additional speculation.
Until then, fire away. Going after me is easy at the moment (as a community guy, I expect this), but unfortunately that’s doing nothing to further your purposes. I’m not offended, but I feel like if you’d apply that energy to a different approach, you might accomplish something.
FWIW, With the exception of the few posts that came in after the thread lock in the old thread (*I* think there was a race condition there, but the site dev team doesn’t quite agree<g>), I haven’t deleted posts criticizing me or Microsoft, just those attacking other members, and none in this new thread so far.
Pete Brown’s #6 response [06-05-2011 2:02 AM] (emphasis is mine)
HephaistosX:
“The interface is so new that applications will have to be re-written for it from the ground up, just like DOS applications had to be re-written for Windows. These new applications will have interesting qualities. For example, they’ll be written in either HTML5 or JavaScript”
Unless it came directly from the mouth of Microsoft – specifically through our press releases, it’s not “fact”. It’s “speculation”.
Unfortunately, that’s what news outlets do – it helps to pull in readers when they appear to be offering additional detail. They don’t have access to any more detail than the rest of the public.
Pete Brown’s #7 response [06-05-2011 2:48 PM] (emphasis is mine)
Light Crystal:
I invested 3 years of my life to study C#, XAML and Silverlight framework, MVVM pattern to build games. 2 Years ago, it was a party, was all super happy times, just before the damn iphone take foot along the market. And now “ipèd” too. Apple and Google have no dev tools, so they leverage the standard one just to not be pitiful, and they have had success, unfortunately.
Now, i’m ready to start a new company with a huge project, and i’m BLOCKED until September.Why are you blocked? Why does an operating system your customers won’t have for years block you from using tools that are out *now*? Silverlight 5 will be released before end of year, as promised. Nothing has changed there.
While I know direction is very important for long-term planning, as developers we need to stop chasing the shiny ball and instead use what best serves us and our customers today. Keep an eye to what is in the future, but don’t block your current projects because of that.
It’s like buying PC components. I’ve built every PC I’ve owned since my last and only boxed purchase: an IBM PS/1 286 (which itself followed the Commodore 128 I got for Christmas). Each time I do that, I have to make a decision as to what CPU/memory/motherboard etc. to purchase as there is *always* something better coming down the pike. Those better chips often mean different memory architectures and lots of other things. However, if I waited each time instead of using the best of what I had right then, I’d still be running that 286 I had before I built my first computer, a 486dx33.
This is by no means a comment on how the message is being handled, nor am I downplaying the impact here. I totally understand what’s going on; I haven’t had enough Kool-aid to lose that 🙂
As a former consultant for 13 years (where I did VB4,5,6, SQL Server, .NET, WPF, Silverlight and more) and internal IT guy for 4 years before that (doing lots of projects in a mix of VB3, Powerbuilder, Delphi, dBase, FoxPro, QBasic, and Borland C++ – when was the last time our portfolios were that diverse?), I’m just hoping to offer a little perspective. We should work with what we have today, and with what we know for sure is coming short-term, especially when all we have to go on otherwise is speculation.
At its core, last week’s questions, votes, threads and more come down to:
- What can we use to write Modern / Immersive applications in Windows 8
- What’s going to run on tablets
I’m not sure that either of those impact that vast majority of business developers in a real day-to-day way other than peace of mind (which is important, but not business critical). For sure there will be lots of app developers targeting the new stuff, but for most, it won’t come for quite a while. There’s the Windows release schedule, then the adoption schedule, then the internal IT adoption schedule (which is always way behind), then the ramp up on taking advantage of the new features of the OS.
For a bit now, we’ve been saying “Silverlight for high-end media and business applications, HTML for broad reach and consumer-oriented stuff, Silverlight/XNA on phone, and WPF for ISV (big shrinkwrapped apps)”. I haven’t heard/seen anything that would make me change that recommendation.
For the people who are quick to jump on “Silverlight is dead” at companies, I can’t help you there. Those folks were looking for any excuse. Every nugget of news that comes out gets reinterpreted as that, despite Microsoft having come out and explicitely stated several times that these technologies aren’t dead. We had a Silverlight firestarter 7 months ago, and despite the HTML-heavy messaging at MIX, we also had a bunch of Silverlight 5 sessions *and* the release of Silverlight 5 beta.
And when things do change sometime in the future (eventually, everything has to change – nothing is forever, this is not a comment about anything short-term) you and your management should take a measured approach to transition to the new technology. This is no different than many other migrations. Heck, I’ve been trying for a while to get people to move from Windows Forms (a technology which is being maintained, but not enhanced) but folks want to stay there. When I give Silverlight talks at events like Tech Ed, the vast majority of the room is still doing Windows Forms projects, many on Windows XP or Vista. That’s the reality of what’s actually out there in businesses. You will have plenty of time to adapt as necessary (or not, as appropriate) and make reasonable and educated decisions about where you want to take your skills personally, and your company as to where it what it wants to leverage.
I have to question any time I hear rumors about projects being canceled or put on hold based on a rumor of where we may take a technology several years down the road. While some of those are certainly sound, the rest seem like either knee-jerk reactions, or the management wasn’t sold on the technology to begin with.
I don’t think anyone here has been wasting time learning these skills.
And while I don’t agree with the extremes on either side of this debate (the “nothing is wrong, why are you complaining” and the “I’ve wasted my career” sides) I do think that, as developers, diversifying your technology portfolio is always a good idea. Specialization can be good, but just like with stocks, if you invest too much in just one thing, your results are going to have lots of peaks and valleys instead of being more even. Of course, the person saying that has spent the last 4+ years deeply specialized, so take that as you will 🙂
Pete Brown’s #8 response [06-05-2011 2:53 PM] (emphasis is mine)
.netdan:
Why doesn’t the Silverlight.net home page get updated as often as it used to?
The blogs keep coming, but what about the News, Community Samples? There used to be loads of samples now theres about 5 a month if were lucky.
The showcase hasn’t been updated for ages, there used to be 10+ new showcases every 2 weeks or so, what’s happened to that?
Silverlight has a future I’m sure, I just wonder what exactly it is.
I curate a fair bit of this stuff. Here’s an explanation
Community Samples: They need to be written by the community. They’re just not coming as quickly as they used to. This is both because what’s there already covers almost all the easy scenarios, and because many Silverlight devs are doing WP7
Showcase: I took it upon myself to start weeding out old stuff, and to raise the bar for new submissions. Showcase needs to be showcase-level material, not a dumping ground. While I’m not yet where I want to be there, we have certainly rejected a lot more things than we had before. If the submission doesn’t meet the bar and they’re willing to include source code, I ask them to submit to the community samples.
Even blogging has slowed down. That’s partially because it’s the summer, partially because folks are waiting for the next release, and partially because many Silverlight devs are doing WP7 work.
FWIW, we’re also working on the next version of this site. Check it out at http://beta.silverlight.net
Just some insight 🙂
Pete Brown’s #9 response [06-05-2011 3:29 PM] (emphasis is mine)
SilentObserver:
ray reymond:Lure disheartened SL/WPF/.Net folks to Android world, “Look Java and C# are almost the same so there’s not much transition pain, and we are serious about supporting Android. We will not back-stab you guys like Microsoft just did.
And it’s working for them. My team needs to kick off building a relatively simple app for tablets during this and next month. Since Microsoft is giving us the silent treatment until September, I’ve started watching the android dev videos here: http://developer.android.com/videos/index.html#v=Oq05KqjXTvs . We will be evaluating the platform while waiting for clarifications from Microsoft. It’s a familiar concept for every SL developer. Their tools aren’t as good and C# has surpassed Java, so it would be a step down for us. But not as big of a step down as moving to javascript. The back-stabbing argument is probably the most important of all. We need to be able to trust our OS vendor and Microsoft has lost a tremendous amount of developer loyalty.
I’m with you all in that we could have/should have handled this better. However, I don’t think we’ve back-stabbed anyone. No one at Microsoft said HTML is the only way to go here, it’s just an approach we’re highlighting at the moment.
Unfortunately, we have a long-standing policy of not responding to press rumors and whatnot, so we can’t say anything about the interpretations the press has put out based on this small demo. I’m not even supposed to be posting about this here, but as the community guy for SL/WPF etc., I can’t help myself.
Yeah, “Wait until September” sucks for people who want to know *now*, but it’s not backstabbing. Remember, most other companies simply tell you nothing until the product is launched. We tried to give some info about something that we know will excite a segment of the community. I’m very concerned that the backlash is going to lead to silence being SOP in the future. 😦 I’m not blaming anyone, just pointing out a possible outcome.
Pete Brown’s #10 response [06-05-2011 3:43 PM]
Just a quick reminder for folks to keep it civil. I’ve seen a few posts that are starting to lean a little too far over the edge. Let’s keep language wars out (you won’t resolve anything), and no personal attacks.
Thanks.
Pete Brown’s #11 response [06-05-2011 3:57 PM] (emphasis is mine)
SilentObserver:
If the above is true, there is nothing to be gained by keeping it secret. So we must conclude that it isn’t true, at least as of now.
We know we can get the “legacy desktop” experience. However, our customers are doctors who own the lastest Apple gadgets. They expect us to deliver the same experience on their medical devices. If we are confined to the legacy desktop, we won’t be able to do that.
If you’re planning to develop for Windows 8 tablets, you have plenty of time. The wait until September is pretty short in comparison.
You’re also making an assumption based on the absence of information. “I didn’t hear from Joe, so he must be dead.” seems far less logical than just keeping it unknown – well, until some reasonable period passes anyway. There’s something about a box and a cat that applies here, but I’m not going there 🙂
I know it’s going to be a long summer now, and I know this is very frustrating and has everyone on edge, but I encourage you to reserve judgment until //build/. Then, once we’ve come forth with a good and full picture of Windows 8 plans, rather than just a quick consumer-focused preview, make your informed decisions.
Pete Brown’s #12 response [06-05-2011 4:59 PM] (emphasis is mine)
SilentObserver:
I appreciate you trying to calm everybody down . You’ve been given an impossible task by your PR people.
Thanks. Not anything that was given me. In fact, we’re supposed to just be quiet. That’s not in my genes, though.
I’m not so much interested in calming folks down as I am interested in getting to the core issues here and getting folks to keep any criticism on target (not attacking HTML devs or Silverlight devs, for example). And, of course, to remind folks that we’ll be talking much more about Windows 8 at //build/
Pete Brown’s #13 response [06-05-2011 5:00 PM]
SilentObserver:
A more accurate analogy would be : “I know Joe and Jim were fighting in the parking lot, and Jim just showed up very happy, so Joe must be badly bruised.” 🙂
lol. You win that one 🙂
Pete Brown’s #14 response [06-05-2011 5:06 PM] (emphasis is mine)
brosner88:
A pretty, elegant or easy to use shell UI is can be a nice selling feature to end users. It does nothing for developers.
And here we get to the crux. That demonstration video was not for developers. //build/ is for developers. HTML was mentioned as pretty much everyone gets it, even non-developers. And, quite frankly, that’s pretty cool that we’re doing that; a company that has gotten (in some cases, deserved) flak for not adopting standards is now incorporating one into the heart of their flagship product.
Yes, we mentioned HTML, but no one showed code. If it was meant for developers, you *know* we’d have had someone up there with an IDE open.
So: that demo, the walk-through video, and the related press release were all for non-devs, //build/ is for devs.
Pete Brown’s #15 response [06-05-2011 5:16 PM] (emphasis is mine)
jackbond:
Psychlist1972:know it’s going to be a long summer now, and I know this is very frustrating and has everyone on edge, but I encourage you to reserve judgment until //build/.
What if we say no, and that that’s simply unacceptable? I for one am willing to withdraw my app from the marketplace. Anybody else?
That’s entirely your right. I just don’t think it’s a particularly savvy move given that it is based on speculation and rumor which themselves are based on a consumer-focused demo of an unreleased operating system and the related consumer-focused press release.
Pete Brown’s #15 response [06-06-2011 1:11 AM] (emphasis is mine)
kimsk112:
Anyone knows if the Prism group (patterns & practices) is now working mainly on this Silk project (HTML5/JQuery) instead of Silverlight/WPF Prism?
If they stop committing to Silverlight/WPF Prism, I think we know what Microsoft is thinking now.
P&P is a peer team to mine (although much larger), in the same side of devdiv, called EPX. I believe they’re still working on Silverlight/WPF prism; I haven’t heard anything to the contrary. They’ve been beat up a bit in the past, however, for not having enough web guidance. Silk is part of the effort to make up the difference there.
That said, I’m not sure what else there is to add to prism. I haven’t looked at the backlogs, but it has to be getting pretty mature by this point.
The prism book was one of the hottest things at the Developer Guidance/P&P booth at Tech Ed 🙂
Pete Brown’s #16 response [06-06-2011 3:44 PM] (emphasis is mine)
FWIW, we don’t use third-party media outlets to announce things or do damage control unless it’s a quoted interview or video of MS folks. Even then, it’s rare not to have the real annoncement on our PR site.
Pete Brown’s #17 response [06-06-2011 9:29 PM] (emphasis is mine)
In case you haven’t seen this, Hanselman’s “Don’t give bile a permalink” is a good read.
[Why? For things like that: “If you’re a nudist and you give your technical talks on C# naked, I likely won’t be there to watch your talk. You may feel REALLY strongly about nudism, and I wish you well. You may believe in the legalization of drugs and prefer to give your technical presentations high, and I say, kudos, but I and others may not show. There are some social norms, and you should know what they are and know how strongly you feel about them when you take your message to a larger audience. ”]
From a quite opinionated but quite unsatisfied previous insider: http://twitter.com/#!/MossyBlog
Scott Barnes
@MossyBlog Brisbane
Former Product Manager (Silverlight/WPF) Microsoft Corp, UX Specialist, The guy leading the mob on FIXWPF.org and blogging dude behind RIAGENIC.com
http://www.riagenic.com
his response to the on going debate on Silverlight Forum
MossyBlog response #1 [06-06-2011 10:03 PM] (emphasis is mine)
A few points if I may:
- Not saying anything is one thing admitting it… dear god why. This isn’t directed at Pete to all staff members, if you can’t get involved in the discussion then avoid the discussion completely. Jumping into the fray and asking all to calm down while at the same time not offering answers is not wise. It only fuels further conspiracy theories for one and secondly it creates a focused point of frustration for all to increment geek-rage at. Either join the discussion or don’t but not half-way.
- Perception vs Reality. The amount of times when we use to deal with constant battles around Silverlight mainly from a perception base vs the reality was a daily occurenceso Microsoft Staff, while I admire your bravery here by jumping into the fray with “probably” correct is a diasterous way of handling the corporate communication(s). You’re actually doing more harm that way and if i was still in the Silverlight team i’d be making moves to put a gag order on you for it – its not your motivates aren’t righteous but you are actually now validating some of the speculation by keeping it half-yes half-no.
- New Joins vs Trolling. On one hand its great to see new members whilst on the other hand its sad under these circumstances. The point of order here is this, Corporate Comms 101 is a tire fire right now, people are frustrated and having an outlet like this to voice such concerns is a beast that well – staff – you created. If people are joining to either remain anonymous and voice their rage or so on, so be it all you can all do is reallly just sit and listen …that..or join the conversaton and start squashing some of the rumous / speculation mentioned earlier. Time to get involved.
- Moderation. If you have a situation whereby the villagers are going to storm your gates, its better to marshall them into an area you can control more to the point you can isolate. Having such a firm strict hand on a forum such as this isn’t smart as what you’re really saying to the hordes of both positive & negative emotion is “take your fight elsewhere”. You don’t want that, you want this isolated and pocketed to one area of the web as much as possible as when you do finally do your reveal in September you can then provide a much more sturdier platform to voice your smackdowns. Right now this is just plain stupid.
Pete. Personally I am fan of your work and will often support you even when I think you’re wrong because at the end of the day you work very hard to make a difference to communities like this. My personal advice to you is step aside, don’t take this bullet as the Windows team have some damage to fixand as some managers in the Silverlight team used to say “If you going to break up a fight, be prepared to be punched in the face”.
Let the horde vent their rage, its fast creating a marshalling point for you to provide some much needed corporate communication(s) to down the track.
To the masses here on this thread: You can argue amongst yourselves all you want, to what end? all you’re really doing is seeing who can bark the loudest.. the reality is this won’t have impact as the decisions around this entire messaging framework if you want to call it that goes much higher than those who moderate / read these forums. At best all staff like Pete can do etc is provide a thread or snippet of quotes to execs in a “quoted” format with “Please help me help you” call to action. It’s more than likely that email will be ignored.
My advice – wait this HTML5 bubble gum pop idea out as it’s one thing to say “all devs will create HTML5 apps” and its entirely another to have it happen. This is about the 4th time Windows team have tried to kickstart the HTML pipedream and what they fail to realise is that folks who do adopt Microsoft tech enjoy .NET [while] folks who don’t, just don’t like Microsoft as a brand and it mainly has nothing to do with technology discussion. Can’t imagine why they loose faith in the brand though? can you 😉
–
Scott Barnes
Former Product Manager (well 1yr ago lol) for Silverlight/WPF 🙂
–
Scott Barnes
Anti-Evangelist
To which came the following:
npolyak1 reminder [06-06-2011 11:29 PM]
And here is an article by Scott Barnes written last September warning everyone about what is coming (would we all listen to him)
npolyak1 addendum #1 [06-06-2011 11:40 PM] (emphasis is mine)
Excerpt from Scott’s article:
I’m simply about highlighting the disconnect here and if the Windows 8 / IE teams of today think that Silverlight / WPF is something they can deprecate because they dislike people in DevDiv or its current model then think again, as this is one of those rare moments in time where you have a hung jury in terms of which of the two is really the best bet.
npolyak1 addendum #2 [06-06-2011 11:41 PM]
Apparently Windows 8 / IE teams decided that they indeed can deprecate WPF and SL. Moreover, MS seems to allow them to get away with it.
npolyak1 addendum #3 [06-06-2011 11:48 PM]
Windows team seem to have gotten what they wanted – they destroyed the developer tools division, but they are also destroying a large part of Microsoft – in my estimate this crazy idea will cost at least $50 billion in market capitalization.
Drzog response to npolyak1 [06-06-2011 11:51 PM] (emphasis is mine)
Interesting article – it explains much, and is very disconcerting. Call it conspiracy theory, but I’ve noticed a number of HIGHLY VISIBLE Silverlight marketing links are not functional on the following prominent Microsoft websites:
(1) http://www.microsoft.com/silverlight/ This is the entry point URL for anyone inquiring about Silverlight, and ranks first or second when searching on “Silverlight”. Guess what? Click the first thing you see — the “Play” button — and then “Launch Demos” and sadly, none of the first three video streaming examples work. SHAMEFUL.
(2) http://www.microsoft.com/silverlight/future/ This is Microsoft’s “The Future of Microsoft Silverlight” page. Click the first call to action button “Watch the Silverlight Five Announcement” — guess what? NO VIDEO. Then try the “High Quality WMV” link. Guess what — staggered and strobed pixelation. SHAMEFUL.
These are Microsoft’s leading URLs for Silverlight information. Go figure.
Scott Barnes response to the erietta [user experience designer. news hound. art lover. in Sydney] 10 hours ago [vs 06-07-2011 11:00 CET]
UI experts upbeat on Windows 8 preview itnews.com.au/News/259674,ui… via @itnews_au what say you @MossyBlog ?
So copied here: UI experts upbeat on Windows 8 preview [June 6, 2011] (emphasis in bold is mine)
But are icons more effective?
User interface experts have expressed surprise at the re-design of the Windows OS interface, giving Microsoft the thumbs up for touch-based gestures and use of web app development standards.
The new interface, previewed late last week, replaces menu bars and icons with tiles akin to Windows Mobile 7.
A panel of Australian user interface gurus told iTnews the preview was significant.
Whereas web applications were once developed to mimic richer desktop applications, users now prefer the simplicity and ease of navigation of web applications.
Today, the desktop OS attempts to mimic the web.
“Hallelujah, at last, someone got it!” said Anthony Colfelt, Creative Director at web user experience firm, Different.
Microsoft’s tiles “take the best from informational web-design and applies it to the main computer UI,” he said.
He was particularly impressed that Microsoft has chosen to run applications developed with HTML 5 and Javascript, to prepare for an “inevitable shift toward light-weight terminal computers that rely on web-served applications.”
Colfelt said Microsoft was “finally attempting to lead in the area of UI and experience, rather than following Apple.”
“It has always been to Microsoft’s advantage to open up their system (for a reasonable fee) to the masses of developers and hardware manufacturers,” he said.
”Lots of programmers and machines equals lots of cheap programs and computers, and that means lots of accessibility for the consumer.”
Richard Edwards, Principal Analyst at Ovum said the preview proved Microsoft is still a “viable market-maker.”
Made for tablets
Shane Morris, director at UI specialists Automatic Studio said the interface “shows that Microsoft is serious about embracing touch and slate-based modes of use within Windows itself – as it should be.
“Clearly Microsoft has thought hard about how to integrate the casual consumption model of tablet devices with ‘real’ operating system features like multi-tasking, file system access and rich applications that require extensive user input, like Office.” he said.
“Why abandon the power and familiarity of Windows if they can possibly help it?
“The use of scrolling panels of tiles is a natural extension of the use of tiles and panning ‘panoramas’ in Windows Phone 7, which are proving popular with users,” he said.
“Swiping left and right to scroll through choices is a very natural action, and leverages both spatial memory and muscle memory to help users find and re-find what they need.”
But Morris pointed out that the preview did not reveal any on-screen cues to users to show them how swiping in from the edge of the screen could activate operating system features like task switching. This could prove a sticking point until users grew used to the concept, he said.
Colfelt also noted that many of these same interactions would “feel clumsy using a mouse.
“That could cause RSI if the user gets too excited about using them,” he noted.
The only point on which the experts disagreed was the use of tiles on the home page. Whilst Colfelt felt it was a solution to what he calls “information spelunking” (areas of a site easy to fall into and hard to find your way back out of), Morris felt Microsoft was abandoning icons that have historically proven far more effective.
Tiles, Morris said, are difficult to differentiate and can crowd the screen.
“The use of larger, consistently sized tiles containing dynamic content has the potential to create a vista that ‘yells’ at the user – and the demonstrated use of bright, saturated colours might actually make it difficult for users to discriminate between tiles and to focus on individual tile content,” he said.
“We know that people use various cues to search the visual field. Outline shape is one of the primary prompts to help people discriminate and identify objects visually. The dominant and consistent rectangular shape of the tiles themselves means Windows 8 users cannot use this outline shape as the primary cue. They must instead rely on colour and the actual tile contents. Compare that to the carefully designed icons in Microsoft Office products. Those icons present unique outlines – for good reason.”
Morris raised concerns as to whether Microsoft would continue to support stylus and other pen-based input as well as touch.
MossyBlog Scott Barnes @erietta @itnews_au UI Experts? hah.. thats like saying “Lifecoaches enjoy windows 8” 🙂 9 hours ago
in reply to ↑ @MossyBlog Scott Barnes @erietta @itnews_au the only expert in that conversation was @shanemo and he nailed his remarks well.. wouldn’t say it was upbeat tho 9 hours ago
erietta erietta @ @MossyBlog is your microsoft bias shining through? Anthony is a well qualified UX designer (& my boss you ratbag!) @colfelt @itnews_au. 7 hours ago
MossyBlog Scott Barnes @ @erietta @colfelt @itnews_au he is? so am i? so is everyone.. UX Expert is an oxymoron imho 🙂 7 hours ago
erietta erietta @ @MossyBlog @colfelt @itnews_au and I was after YOUR thoughts as you are on the record of sledging microsoft UX design. What say you? 7 hours ago
in reply to ↑ @MossyBlog Scott Barnes @erietta @colfelt @itnews_au i personally think the Tiles Windows8 concept is still unproven firstly & secondly it’s lazy design that furthermore, I don’t think as much thought as one is lead to believe has been put into the science behind it.. the design behind current MS Metro is a state of confused schizo ver of Intrinsic & Extraneous cognitive load. 7 hours ago
in reply to ↑ @erietta erietta @MossyBlog @itnews_au @colfelt This is the Scott I was looking for! Will be interesting to see if the process behind design is revealed. 7 hours ago
replies ↓ MossyBlog Scott Barnes @ @erietta @itnews_au @colfelt yeah i mean i feel like a crack record though on my metro insighs..basically i like its attitude not execution 7 hours ago
——————————–
colfelt Anthony Colfelt @MossyBlog @erietta @itnews_au having worked alongside a few MS UX team members, I know PLENTY of thought went into the design. 9 hours ago
in reply to ↑
@MossyBlog Scott Barnes @colfelt @erietta @itnews_au pink had potential and there were far better ideas on the table early on
@MossyBlog Scott Barnes @colfelt @erietta @itnews_au it’s principles are great it’s execution is lazy 9 hours ago via Twitter for iPhone
colfelt Anthony Colfelt @MossyBlog @erietta Isn’t it a tad insulting to them to suggest otherwise? 9 hours ago
in reply to ↑
@MossyBlog Scott Barnes @colfelt @erietta so? Want to play in the big leagues be prepared to backup the science behind it all 9 hours ago via Twitter for iPhone
@MossyBlog Scott Barnes @colfelt @erietta this execution panders to making engineers I to designers without context or personality 9 hours ago via Twitter for iPhone
@MossyBlog Scott Barnes @colfelt @erietta current metro designs are what I call shoplifting for designers
@MossyBlog Scott Barnes @colfelt @erietta it’s in my view the same as buying ui art from a $1 or less store
colfelt Anthony Colfelt @MossyBlog @erietta I doubt most those reading @itnews_au cares abt the science. But next time, maybe they’ll ask a REAL expert to comment. 9 hours ago
in reply to ↑ @MossyBlog Scott Barnes @colfelt @erietta @itnews_au let me know if u meet one. I watched $1m usd research try and find one and it failed :$
MossyBlog Scott Barnes @ @colfelt @erietta @itnews_au btw i’m not looking to attack you per say, just the concept of “UX Experts say..”.. its kind of “wtf?” is my pt 8 hours ago
brettatitnews Brett W @ @colfelt @erietta @itnews_au I’m guessing if I’d included @MossyBlog there would be no argument on using the word “expert”. 7 hours ago
MossyBlog Scott Barnes @ @brettatitnews @colfelt @erietta @itnews_au wanna take that bet ? 🙂 .. The word expert is an alt word for Life Coach in my vocab 🙂 7 hours ago
brettatitnews Brett W @ @MossyBlog @colfelt @erietta @itnews_au how would you rather be addressed Scott? 7 hours ago
in reply to ↑
@MossyBlog Scott Barnes @brettatitnews @colfelt @erietta @itnews_au Me? why would you address me.. i’m just a developer who designs. 7 hours ago via web
replies ↓
erietta erietta @ @MossyBlog @brettatitnews @colfelt @itnews_au What have I started here?! </flamewars> 7 hours ago
MossyBlog Scott Barnes @ @erietta @brettatitnews @colfelt @itnews_au haha 🙂 no.. its just that article came up light..i want more meat on the bone.. 7 hours ago
brettatitnews Brett W @ @MossyBlog @erietta @colfelt @itnews_au I’ll be sure to include you next time Scott. 6 hours ago
MossyBlog Scott Barnes @ @brettatitnews @erietta @colfelt @itnews_au hah.. that’d be funny. 6 hours ago
MORE FROM SCOTT BARNES
@MossyBlog Scott Barnes Blog Post:: Understanding “Why would Microsoft do that?” http://bit.ly/m8lRiL 8 hours ago via RIAGENIC Blog
First-ever Israeli National Pavilion Set up at 2011 Computex Taipei
First-ever Israeli National Pavilion Set up at 2011 Computex Taipei [June 20]
12 Israeli companies jointly showcased their latest technologies, products in the first-ever “Israeli Pavilion” at the 2011 Taipei International Information Technology Show (Computex Taipei) held May 31-June 4 …
Simona Halperin, the representative of ISECO [Israel Economic and Cultural Office], urged closer cooperation between Taiwan and Israel, saying at the opening ceremony of the national pavilion that Taiwan`s ICT industry has evolved from being mostly OEM/ODM (original equipment/design manufacturing) for major international brands 10 years and earlier, to OBMs [Original brand manufacturers] where ever more firms are investing in R&D to innovate products.
…
Sahar Amit, VP business development of Grippity, demonstrates the innovative transparent input device.
Grippity Inc. showcases its transparent handheld keyboards aiming to achieve ergonomic QWERTY typing anywhere, also introducing the Grippity1, a media center keyboard and the first BackTyped product, or the smallest 10-finger QWERTY keyboard.
…
Utilizing its MSP (Memory Signal Processing) technology, Anobit provides Solid State storage solutions with significantly improved reliability, performance and cost.
Anobit`s products, ranging from flash controllers to complete enterprise-class solid state drives (SSDs), are used by world leading flash manufacturers, consumer electronics vendors and storage system providers.
…
Side-Kick`s innovative motion games captivate many visitors.
Side-Kick Ltd. is a leading game developer and publisher specializing in motion games that use human gestures to control games. Side-Kick was created by veteran gaming industry entrepreneurs and the team behind the first games developed for the PrimeSense technology, the main supporting force to the Xbox Kinect motion-control games.
…
EPOS Development Ltd. is displaying its digital pen input device featuring advantages including low cost, minimal battery power, multi-lingual capacity, multi-OS capacity, fully customizable, and fast time to market.
…
Yaron Aizenbud, XTR`s V.P. of products, stresses the unique 3D human skeleton technology is at the forefront of gesture control software.
Extreme Reality (XTR3D) Ltd. XTR provides real-time software based 3D Motion Capture technology using a single standard webcam. XTR`s technology facilitates real time recognition of human motions and gestures, and uses this recognition to control consumer electronic devices without accessories.
…
Snapkeys offers an innovative, effective text and data entry technology for mobile and fixed devices.
… innovative, effective text and data entry technology for mobile and fixed devices …
The problem with traditional touchscreen keyboards is excessive displacement of screen surface to obscure content, which is being addressed by Snapkeys Ltd., an innovative company who has devised an “imaginary interface” called 2i that enables users to type blindly on smartphones and tablets.
…
Wisair is a leading provider of a portfolio of Wireless USB and Ultra-wideband (UWB) based ecosystem of solutions for applications such as “Wireless PC to TV“, “Wireless laptop docking“, “Wireless laptop audio streaming” and more. Products based on Wisair`s complementary metal-oxide-semiconductor (CMOS) single chip are already shipped in high volume in the U.S., Europe, Korea and Japan, available from a variety of OEMs.
SOEs and state coexistence in China
– History (pre 2008)
– Recent information from the government (2007-2011)
– Current situation: mostly related to the China Mobile
Major update: ‘Princelings’ take up key posts in China’s telcos [Feb 24, 2012]
Sons of PM Wen and party propaganda chief promoted to senior positions
By FREDERICK YEUNG
(HONG KONG) China’s ‘princelings’, the offspring of top Communist Party leaders, are taking up important positions at the nation’s state-owned telecommunications firms, reflecting their growing political clout as the party prepares for key leadership changes later this year.
Li Huidi, the son of Li Changchun – who is the propaganda chief of the Communist Party and the fifth ranked member of the Politburo Standing Committee – and Winston Wen Yunsong, the son of Premier Wen Jiabao, are among those that have taken up senior positions in telecoms companies recently.
The State-owned Assets Supervision and Administration Commission, which oversees all state-owned enterprises, announced on Tuesday the appointment of Li Huidi as a deputy general manager of China Mobile Communications Corp. Prior to the latest appointment, Mr Li was serving as the company’s vice-president overseeing its TD-SCDMA business.
Mr Li, 44, joined China Mobile in July 2008 as general manager’s assistant to help the company develop the homegrown TD-SCDMA 3G network business, as well as handset sales.
Before joining China Mobile, Mr Li worked at Lenovo Group Ltd and UTStarcom Inc.
Mr Li’s promotion has been much faster compared to other senior officials at China Mobile, an industry veteran told EJ Insight on Wednesday.
He noted that normally a deputy general manager needs to have management experience at both the company’s headquarters and at its regional subsidiaries to secure a chance for promotion.
‘Li’s quick promotion for sure is due to the influence of his father,’ the source said. ‘He did not have any actual experience in telecom operators prior to joining China Mobile.’
Following Mr Li’s latest promotion, there is speculation that he could be a candidate to assume the chairmanship of the world’s largest mobile operator in about three years from now.
China Mobile’s current chairman Wang Jianzhou, 62, is expected to retire shortly due to his age.
Xi Gouhua, 59, currently the vice-chairman, is expected to take the chairman’s post for three years. When he retires, Mr Li could get the opportunity to run for the top post.
However, he would need to compete with other senior China Mobile managers, such as general manager Li Yue, who is 52.
Meanwhile, Premier Wen’s son Winston Wen has been appointed as the chairman of China Satellite Communications Corp on Feb 17. Mr Wen replaced Lei Fanpei, an aeronautical engineer, following a company board meeting.
China Satellite Communications Corp is one of the six state-owned telecommunications infrastructure operators in China, focusing on satellite communications and satellite manufacturing. China Satellite Communications is the parent of Hong Kong-listed APT Satellite Holdings Ltd.
Mr Wen is well known in the market as he was founder of Unihub Global Network, a systems-integration company that served large corporations in China before being merged with PCCW Ltd. He later became a partner at private equity firm New Horizon Capital\. \– EJ Insight
Update: Top China Technology Picks By The World’s Largest Fund Managers [Seeking Alpha, Jan 31, 2012]

Major update: China’s ‘black collar class’ unmasked: The ten most powerful business chiefs who are poised to take over the world [Daily Mail, Jan 29, 2012]
They’re known as the ‘black collar class’.
They dress in dark suits, drive black limousines and have rumoured links to ‘black societies’ from the underworld.
Until now these shadowy mandarins leading the charge of China’s thundering economy have remained hidden.
But after a groundbreaking report, the ten most powerful bosses behind China’s terrifying brand of state capitalism have been unmasked.
A country of two sides: A Chinese soldier stands guard outside Tiananmen Gate in Beijing as the red flag flies. Right, cars head into the heaving city that his led the transformation of the country’s economy
They include business dynasties that have ruled firms for decades, according to reports from the Brookings Institution, specialist Chinese publications and the Sunday Times.
These ‘red dragons’ are now set to become as powerful as the Chinese military, provincial leaders and government ministers.
Between them they control the majority of the Chinese economy, where corruption and vested interests are hidden behind a cloak of secrecy.
And with the rest of the world teetering on bankruptcy, these unstoppable bosses are poised to take take over a string of Western companies.
It’s a thundering assault on the rest of the world from a country that controls virtually every aspect of its citizens lives.
These are the ten most powerful members of the ‘black collar’ elite driving China’s alarming expansion.
Zhang Qingwei
Control of the skies: Zhang Qingwei
Qingwei was the former boss of the Commercial Aircraft Corporation of China (Comac).
Under his leadership the company has fought to wrestle back control of the Chinese skies from Boeing and Airbus.
The communist state has little time for dependance on foreign companies, and has battled to create a fleet of planes that will compete for passengers.
In a sign of his influence and power, Qingwei has been singled out as the state entrepreneur most likely to win political office. He has begun that march up the communist party, with an appointment as a provincial governor.
Wang Jianzhou
Phone boss: Wang Jianzhou
Anybody who has used a mobile phone in China will have used Jianzhou’s company – China Mobile. The mobile phone network is the largest and most powerful in the world, with an estimated 650million subscribers.
In its aggressive spread across the globe, China mobile has even provided reception for one of the hardest places on earth to reach – Mount Everest. The firm has 230,000 employees and is listed on the New York Stock Exchange and Hong Kong Stock Exchange.
Despite the staggering wealth and power of China Mobile, it has received repeated criticism over its charges. Critics have claimed that half of its profits came from cynical fees for services that are free in many countries, where market competition and democratic government would have banned them.
Li Xiaolin
Electric lady: Li Xiaolin
With her delicate features, short hair and red lipstick, Li Xiaolin could be any other Chinese housewife.
But Xiaolin is in fact one of the most powerful women in China.
Xiaolin comes from the Li Family, a dynasty that ‘controls all electric power interests’, according to U.S. diplomatic cables.
Her hardline father Li Peng has stepped down as boss of China Power International Development, but the company is run by Xiaolin and her brother Xiaopeng, a vice governor of Shanxi province.
The pair ‘exercise tremendous power and influence in China’s electric power industry’. Both are tipper to rise prominently within the regime.
Zhou Yongkang
Security chief: Zhou Yongkang
As security minister for the Politburo, Yongkang is tasked with the protection of the state – a broad job that few westerners actually know what it involves.
Yongkang may be coming to the end of his term in office, but his power and influence still stretches far and wide.
Yongkang was boss of the China National Petroleum Corporation, and is understood to have made 14 visits to Sudan in trips that are likely to have been centred around oil production.
According to a diplomatic cable released by Wikileaks, ‘Yongkang and his associates controlled the oil interests’ of China.
The turbo-charged expansion of China’s economy has rested on a cheap supply of oil, and that’s largely down to Yongkan’s oil deals.
Su Shulin
Chemical: Su Shulin
One of China’s youngest mandarins, Shulin began his rise to power as boss of Sinopec (China Petroleum & Chemical Corporation Limited ), the top-ranking company in the Fortune Global 500.
The chemicals firm is a subsidiary of the state-owned Sinopec Group.
Within China its path to power has been smoothed by the communist party.
But in the rest of the world Sinopec has been heavily criticised for an appalling record of environmental damage. Primatology professor Christophe Boesch criticised Sinopec’s use of dynamite in Gabon in 2004, noting that it might drive native Gorillas deeper into the jungle, where they would be outside legal restrictions on hunting.
Shulin has since left Sinopec and is regarded affectionately by state media.
He has recently been given a role as a provincial governor and is thought of as being among the ‘sixth generation’ of national leaders.
Chen Yuan
Son of suppression: Chen Yuan
A banker who is still regarded as a young newcomer, largely due to the powerful shadow cast by his father.
Yuan is the son of Chen Yuan, one of the powerful figures who urged the brutal suppression of protests in Tiananmen Square in 1989.
The treatment of students at the protests sparked a global outcry, as still leaves a stain a on China’s appalling human rights record.
Residents were protesting at economic reforms being implemented to transform China into a ‘socialist market economy’, the catalyst for the country’s rise to economic power.
In a sign of just how removed from Western values China is, Yuan Senior was lauded within the country for his role in the brutal treatment of citizens.
Worryingly, his son is set to regain influence when vice-president Xi Jinping succeeds Hu Jintao as the nation’s leader.
Xiao Gang
Banking boss: Xiao Gang
Gang is one of the young generation of officials making their rise to power through China’s institutions.
He is currently chairman of the board of directors of Bank of China Limited and Bank of China (Hong Kong) Limited. Gang is even more powerful than the bank’s president – a sign of his ambition and power.
Gang also has control over a limited number of foreign investments in the bank. Coming from the People’s Bank of China, his business philosophy is centered on the strength of the state and he is unlikely to lead open the country up to foreign competition and scrutiny as some critics would like.
Gang’s rise to prominence at such a young age suggests that he is destined for one of the coveted positions within the system.
Guo Shuqing
Oxford educated: Guo Shuqing
One of the few Chinese mandarins to have received an education in England.
Shuqing went from a hardline Marxism-Lenninism faculty to Oxford University.
Upon returning to China, he began his career at the central bank, became a governor of a province and was then given a prominent position at the State Administration of Foreign Exchange.
In a career that mirrors those of many other Chinese star mandarins, Shuqing was eventually given a position in a commercial lender, where he was sure to keep state influence over foreign investors.
Shuqing is currently China’s top security regulator, though few people outside of the small elite know what the intimidating role involves.
Zhu Yanfeng
Driving force: Zhu Yanfeng
Yanfeng ensured his popularity among ordinary Chinese people by saying that every family should own a car.
But that’s not a surprising statement to come from someone who led one of China’s older carmakers, First Automobile Works, as Yanfeng did.
The grandson of renowned meteorologist Chu Coching, Yanfeng began his career in engineering.
He is the current president of China FAW Group Corporation, and in a sign that he is being primed for a top job within the regime, has been made a provincial vice-governor.
The Chinese economic expansion has been fueled by better transport, and a large part of that is down to Yanfen’s drive for profits.
Zhang Guoqing
Arms trade: Zhang Guoqing
Guoqing is one of China’s ‘masters of war’.
He has spent his career at the country’s largest arms maker, China North Industries Corporation (Norinco), and attended Harvard Business School.
He is now one of the most powerful figures within China’s military-industrial complex, supplying arms around the world.
Norinco has ran into controversy with the west. Its ammunition was blocked during the Clinton Administration in 1993 after concerns about their use by criminals in inner cities. Employees were put under investigation in 1994 by the CIA.
In August 2003, the Bush Administration imposed sanctions on Norinco for allegedly selling missile-related goods to Iran.
There have also been controversies around a transport system to Pakistan and links with arms sales to Colonel Gaddafi in Libya.
Major update: An Evening With the Chinese Intelligence Service [John Thomas, ‘The Mad Hedge Fund Trader’, Sept 28, 2010]
[“John Thomas, The Mad Hedge Fund Trader is one of today’s most successful Hedge Fund Managers and a 40 year veteran of the financial markets.”]
An Evening With the Chinese Intelligence Service. I normally avoid the diplomatic circuit, as the few non committal comments and soggy appetizers I get aren’t worth the investment of time. But I jumped at the chance to celebrate the 61st anniversary of the founding of the People’s Republic of China with San Francisco consul general Gao Zhansheng.
Happy Birthday China!
When I casually mention that I survived the Cultural Revolution and interviewed major political figures like premier Deng Xiaoping, who launched the Middle Kingdom into the modern era, and his predecessor, Zhou Enlai, modern day Chinese are enthralled. It’s like going to a Fourth of July party and letting drop that I palled around with Thomas Jefferson and Benjamin Franklin.
Five minutes into the great hall, and I ran into my old friend Wen, who started out her career with the Chinese Intelligence Service, and had made the jump to the Foreign Ministry, as all their best people did. She was passing through town with a visiting trade mission.
When I was touring China in the seventies as the guest of the Bank of China, Wen was assigned as my guide and translator, and we kept in touch over the years. I was assigned a bodyguard who doubled as the driver of a tank like Russian sedan. The Cultural Revolution was on, and while the major cities were safe, we ran the risk of running into a renegade band of xenophobic Red Guards, with potentially fatal consequences.
I asked Wen when China was going to float the Yuan? She explained that this is something China knew it had to do, but it wasn’t going to be rushed into by some opportunistic foreign politicians. If it moves too soon, millions will lose jobs, creating political instability, something the central government wants to avoid at all costs. Many of the largest scale employers were only marginally profitable, and a hike in the renminbi of only a few percent would force them out of business. I pointed out that that was exactly what was happening in the US.
Worth More Than Meets the Eye
I warned that if the Middle Kingdom waited too long, Washington would force them into an appreciation through punitive import duties and anti dumping actions, as we did with Japan 40 years ago. It was Nixon’s surprise ban on textile imports in 1971 that finally persuaded Japan to float the yen, then at ¥360. If that didn’t convince the Chinese, then imported inflation would. The longer China delays, the bigger the pop when their currency is finally set free.
Wen then went on the offensive, claiming that Chinese workers were being exploited by American companies keeping wages low. The product that China made for $1, and sold for $2, was then sold by Wal-Mart (WMT) for $20, which kept all the profits. She pointed out that the Walton family had a combined net worth of $100 billion, more than the total worth of the lower 40% of the US population. This could never happen in China. I told her that by selling the product at $20, Wal-Mart wiped out another US company that used to make that product domestically and sold it for $40, throwing those people out of work.
Modern Times in China
I then asked Wen what were her country’s plans for its massive foreign exchange reserves, now at $2.5 trillion? She agreed that this was a problem because the reserves were pouring in so fast, at an embarrassingly high rate of $10 billion a month, and that it was the most rapid accumulation of wealth in history (click here for the data). While it had more than enough Treasury bonds, any attempt to sell might cause their value to collapse and freeze relations with the US. I suggested China should start hedging its gigantic holdings without selling them, or some managers would be facing a firing squad in the future.
China has therefore begun directing new reserve inflows into other instruments, like gold, Japanese government bonds, and PIIGS bonds in Europe. While the Europeans were more than happy to take the money, the Japanese were complaining that China’s modest purchases were driving up the yen, further depressing their own economy. We all know what has happened to gold.
China tried to recycle its surpluses by buying foreign companies that produce the natural resources it desperately needs. But takeover attempts were fought tooth and nail as a foreign invasion, or on national security grounds, such as the attempt to buy California’s Unocal in 2005 and Australia’s Oz Minerals last year. It was now using a strategy of buying low profile minority stakes in foreign resource companies. China took a big stake in the recent Petrobras (PBR) secondary equity offering, and Wen would not be surprised if they took a run at Potash (POT), now that it is on the table”.
Check Out This tasty Little Morsel
I asked her about the real estate bubble in China that was causing so many foreign investors to lose sleep. She said it was true that sales were slow at some luxury buildings in Beijing and Shanghai, but the great majority of developments were aimed at working people, and were filling up as soon as they came on the market. The 40% down payment demanded by the People’s Bank of China headed off the rampant speculation that brought the American financial system down.
Rooms With Views
Wen then complained about the aggressive military stance the US was taking towards China, ringing it in with the Seventh Fleet. Holding a knife so close to the country’s foreign supply line jugular vein made them nervous. China was basically indefensible. All it would take was the sinking of a few grain ships, and 100 million would starve within a year. President Bush was rattling his saber as soon as he moved into office, until 9/11 diverted his attention to Afghanistan and Iraq.
Wen told me there is a school of thought in Beijing that as the country’s economic power grows- it is passing Japan to become second in GDP this year– that the US will increasingly perceive it as a military threat. That would lead America to mete out the same hostile treatment to China as it did Russia during the cold war.
Walking Softly, But Carrying a Big Stick
I assured her that the Seventh Fleet was there to watch and listen, but to do nothing. It was really in position to provide a security blanket for allies, like Japan and South Korea, but nothing more. China wasn’t engaging in the belligerent behavior that Russia was at the height of the cold war, like blockading Berlin, basing missiles in Cuba, stationing fast attack nuclear submarines off our coasts, and invading Afghanistan.
I argued that if China truly has no expansionary intentions, the more we know about you, the better. It is always prudent for a potential adversary to conclude you are not a threat, and that no action is needed. The more you help the US do that, the better. China is decades behind the US in military technology, and you really have nothing we want. Little more than 200 nuclear weapons without an ICMB or submarine delivery systems were hardly viewed as a major threat.
Wen seemed perturbed that I was aware of her country’s nuclear stockpiles, and asked how I knew this. I said CIA director Leon Panetta told me She said “Oh.” I asked what was that test downing of a satellite in space about, anyway? She didn’t answer.
In any case, with our military fully committed fighting two wars in the Middle East, we lacked the resources for an Asian offensive if we were so inclined, even against a piddling, mismanaged, rogue state like North Korea. But looking at the world for the next 30 years, who is the Pentagon going to model and war game against, but China, with its 2.5 million man army?
Wen countered that the People’s Liberation Army was purely a defensive force. With a 12,000 mile land border, an 11,000 mile coastline, and dubious neighbors like Russia, Iran, and India, they have no other choice. Its ability to project force over great distances, as the US can, is virtually nonexistent. Its 1979 invasion of Vietnam was about reclaiming ten miles of lost territory. China got involved in Korea only after general Douglas MacArthur threatened to rain atomic bombs on the mainland, losing 2 million men, including Chairman Mao’s son. China could have done a lot more in the Vietnam War, but didn’t, limiting its participation to a supply, logistical, and advisory role.
That’s a Lot of Border to Defend
I then warned that if you really are worried about the Pentagon, you should stop hacking into our computers. She replied that the US started this by emptying out Chinese mainframes many times, and they were only responding in kind. I said yes, but that China was targeting private companies, like Google (GOOG), Hewlett Packard (HPQ), and Oracle (ORCL), that without military grade software, were unable to defend themselves. The Chinese agencies involved then used the data to their own commercial advantage.
What Did You Say the Password Was Again?
By the time Wen married, China had already adopted its one child policy. As much as she wanted more children, she understood the government’s need to adopt such a drastic policy. Without it, the population today would be 1.6 billion, not 1.2 billion, and all of the money that went into buying capital goods would have been spent on food imports instead. The country would have stagnated at its 1980 per capita income of $100/year. There would have been no Chinese economic miracle. She was very proud of her one son, who was a software engineer at Microsoft (MSFT) in Beijing.
Her husband, a mid level official at the Ministry of Commerce, fared less well, dying of lung cancer at a relatively early age. The US and Europe had exported their worst polluting industries to China to take advantage of lax environmental controls, turning the air in Beijing into a choking haze. Sometimes her son would come home from school coughing and wheezing so badly that he couldn’t play outside. The two packs of cigarettes a day her husband smoked didn’t help either.
Imported From the USA
I asked if she recalled our first trip together and a dark cloud came over her face. We were touring a section of Fuzhou when three policemen marched up. They started shouting at Wen that we were in a restricted section of the city where foreigners were not allowed. They started mercilessly beating her with clubs.
I was about to intercede when my wife, Kyoko, let go with a blood curdling tirade in Japanese that froze them in their tracks. I saw from the fear in their faces that she had ignited their wartime fear of Japanese authority, and they beat a hasty retreat. To this day, I’m not exactly sure what Kyoko said. We took Wen back to our hotel room and bandaged her up, putting ice on the giant goose egg on her head. When I left, I gave her my copy of HG Well’s A Short History of the World, which she treasured, as the book was then banned in China.
Wen mentioned that she was approaching the mandatory retirement age of 60, and soon would be leaving the Foreign Service. I suggested she move to San Francisco, which offered a thriving Chinese community and home prices that had recently dropped by half. She laughed. No matter how much prices had fallen, she could never afford anything here on a Chinese civil servant’s salary.
Wen told me that China was grateful for the billions of dollars that foreigners had poured into her country as a result of my writings. I replied that I was simply trying to show my readers where to make some money, nothing more. One of my recommendations, for Chinese search engine Baidu (BIDU), was up nearly tenfold in less than two years. Did she happen to know about any more future Baidu’s? Wen said that she wasn’t that close to the stock market, but that she would get back to me.
I asked Wen if she still had the book I gave her nearly four decades ago. She said it had become a family heirloom, and was being passed down through the generations. As she smiled, I notice the faint scar on her eyebrow from that unpleasantness so long ago.
In view of Wen’s comments, I think you have got to buy the Chinese ETF here (FXI), which is the principle lagging emerging stock market this year. You also better revisit my stock picks in the area, including Baidu, China Mobile (CHL), Build Your Dreams (BYDDF), and China Telecom (CHA).
By. Mad Hedge Fund Trader
Update: Ex-China Mobile official gets suspended death sentence [July 23, 2011]
A court in North China’s Hebei province on Friday sentenced Zhang Chunjiang, former deputy general manager of China Mobile, to death with a two-year reprieve, after he was found of taking bribes.
The Intermediate People’s Court of Cangzhou also ordered the confiscation of Zhang’s personal assets and stripped him of his political rights.
The court found that Zhang, 53, took 7.46 million yuan ($1.15 million) in bribes between 1994 and 2009 when he was deputy director of the Liaoning provincial postal administration, general manager of China Netcom Group Corporation Ltd, and Party chief as well as deputy general manager of China Mobile.
Zhang, a native of East China’s Shandong province, was given a suspended death sentence, meaning the sentence could be commuted to life imprisonment after two years of good behavior, because he confessed his crimes and all the bribe money had been recovered, according to the court.
He had previously been removed from his post and expelled from the Communist Party of China (CPC) for “severe violations of the discipline and the law.”
Zhang was confirmed to be under investigation for a “serious breach of discipline” on Dec 26, 2009, by the CPC Central Commission for Discipline Inspection, the Party’s internal anti-graft body.
He became secretary of the Party committee and deputy head of China Mobile in May 2008.
China Mobile is the country’s biggest wireless service provider and the world’s largest mobile carrier by number of subscribers.
Zhang was among a dozen ministerial-level officials, including former Shenzhen mayor Xu Zongheng, punished as China intensified its fight against corruption.
The Supreme People’s Court has vowed to continue to battle corruption by meting out harsh punishments to those who are convicted.
Sun Jungong, spokesman of the Supreme People’s Court, warned on Tuesday that for crimes involving an abuse of public office – especially cases of corruption and bribery – that are severe enough to merit the death penalty, the court will not go lightly but will instead approve executions.
Xu Maiyong, former vice-mayor of Hangzhou, and Jiang Renjie, former vice-mayor of Suzhou, were executed on Tuesday for taking large amounts in bribes and abusing their power.
Statistics compiled by the Supreme People’s Court show that 28,708 officials were convicted of abuse of power in 2010. Of them, 5,906 were sentenced to more than 5 years in jail.
I. History (pre 2008)
China’s state-owned enterprise reforms: an industrial and CEO approach (2007, By Juan Antonio Fernández, Leila Fernández-Stembridge)
Introduction (emphasis is mine)
…
As known by all, China is a vastly populated country that is currently undergoing one of the most particular and crucial transformations in the world’s economic history of these last 25 years. On a general level, China has been transforming itself from a command to a (bound-to-be) market economy, from an economy based on agriculture to one based on manufacturing and services, from one with high fertility and low longevity to one with low fertility and high longevity, and from a closed economy to a fairly open economy, ever more since World Trade Organization (WTO) accession in December 2001.The literature on the significance and meaning of China’s economic reforms is quite abundant, for which we will not repeat what has been already been extensively explained. We prefer rather to focus on the SOEs reforms. It is important to stress within this context, however, a glimpse of the burden of the scale China implies. Here are just a few of the most important indicators:
- By the late 1990s, among China’s SOEs, there were 500 that employed more than 100,000 people – forty times the number of companies of similar size in the United States;
- Every year, China’s economy must create 10 million to 15 million new jobs so as to avoid an excessive unemployment rate;
- China has more cities of 1 million-plus population than the rest of the world combined;
- The floating population of peasants moving to the cities to find a job oscillates at approximately 100 million, which is 10 million short of Russia’s entire population;
- There is an emerging urban middle-class in China that accounts for an annual growth of more than 8% and represents a source of rampant consumption;
- The urban population will reach about 50% of total population by 2020, while in 2000 it was little less than 40%;
- China has more than 40 million retirees: by 2025 there will be as many people aged 60 or more than the rest of the world combined; etc.
The reforms launched in the late 1970s combined a general economic transformation between finance, taxation, pricing, foreign trade, foreign direct investment and, of course, SOEs reforms. After all, as an intrinsic part of the gradual draining of the economy, China’s SOEs have undergone crucial restructuring, particularly since 1993 in Shanghai and since 1997 at the national level, with a crucial turning point since the creation in March 2003 of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.
Indeed, after the Party’s 15th Congress in September 1997, a modern enterprise system broadened and accelerated – endorsed already during the 8th National People’s Congress in March 1993 – and pushed further for the incremental and experimental process of SOEs reforms through a new corporate governance system functioning through the motto of “grasping the big (SOEs), letting go the small (SOEs)” (zhuada, fangxiao), whereby over 10,000 large and medium SOEs would be kept under the Central Governments’s control while converted into shareholding companies; and more than 100,000 small SOEs would be privatized or merged with non-state enterprises, forming joint ventures with foreign firms, or otherwise leasing assets to their workers.
Despite the progress made at the administrative level (e.g. increasing managerial autonomy), the separation between government and enterprise remained incomplete: SOEs continued to be under the pressure of guaranteeing social services (housing, education, medical coverage) to some of their workers – including laid-off workers (xiagang zhigong) and redundant workers (fuyu renyuan) – and their productive functions were persistently weakened in detriment of higher output and productivity levels. Meanwhile, unemployment rates were threatening to increase beyond expectations – although always below 5%, according to official statistics but at approximately 15%, according to independent statistics. Then, SASAC got on stage in March 2003 after the First Session of the 10th National People’s Congress. SASAC can be briefly defined as a shareholder on behalf of the State made responsible for the supervision and management of state-owned assets, the appointment and removal of top CEOs in SOEs, with assets worth 6.9 trillion RMB (US$834 billion). [February, 2011: 121 centrally administered state-owned enterprises with their total assets worth nearly 24 trillion yuan (3.65 trillion U.S. dollars)] In theory, SASAC’s aim is to separate government administration and ownership from day-to-day enterprise management, while the guiding principle is that the state sector should withdraw from all competitive economic sectors and leave room for the development of the private sector.
…
During the initial stage of SOEs reforms (1978-1983), SOEs managers were given more autonomy and were allowed for the first time to retain a share of their profits. In addition, the baby-boom children of the 1950s and 1960s were entering the labor market and urban dwellers that had been sent to the countryside were returning from there, which altogether increased the pressures on job creation. In order to avoid higher levels of unemployment, or further overstaffing, local governments promoted employment out of the state-owned sector, encouraging the development of small businesses (getihu). Unfortunately, price distrotions persisted, for which levels of efficiency and resource allocation remained insufficient.
While the economy was being pushed to further marketization, a second wave of SOEs reforms was launched between 1984 and 1988, allowing SOEs to respond to market forces with an increasing autonomy in establishing wages according to their levels of productivity. In addition, SOEs were were given more freedom to hire and fire workers, following their production needs. The so-called contract responsibility system (CRS), which had emerged bí 1983 appeared as an incentive for enterprises to maximize their financial surplus, was replaced … by the tax-for-profit system (li gai shui reform) until 1986, where profits were reclassified as taxes, and enterprises emerged as residual claimants on after-tax profits. As this system proved to be inefficient, a more developed CRS re-emerged, lasting only until January 1994, when fiscal reforms took place (enterprise tax payments were re-centralized), and the CRS was replaced by an income tax.
With the dramatic surge of Township and Village Enterprises (TVEs), inter-enterprise competition emerged. Between 1984 and 1988, the number of TVEs increased from almost 6.1 million to almost 18.9 million, and the number of employees rapidly rose from almost 52.1 million to 95.5 million, whereas during the same period SOEs slowly employed from 86.4 million to 99.9 million. Although job creation does not represent a direct measurement of outtput value (after all, gross output value of industry of SOEs was almost three times higher than the TVEs gross output value within that same period), labor costs were lower in TVEs than in SOEs, as TVEs only performed productive functions, whereas SOEs were in addition burdened with providing social services (fuli) to their workers. The competition caused by the growth of TVEs progressively changed the conditions of the SOEs reforms, narrowing the monopoly profits of SOEs.
By 1989, SOEs had progressively lost their leading position in the national economy: in the late 1970s, they contributed nearly 80 per cent to industrial production, whereas, by the end of the 1980s, their contribution had declined to little more than 55 per cent. In addition, the dual-track price system created a misleading trend of market-determined prices and incentives for corruption. The launching of an austerity program after the 1988 high inflation rate, as measured by the consumer price index (18.8 per cent), provoked a systematic risk of social unrest, for which SOEs were pressured by the Chinese government to increase their labor demand during this third wave of reforms (1989-1992) – despite their lower capacity of production – and to continue to provide, as in the past, an “iron rice bowl” to their employees. As a result, underemployement re-emrged, profits dcreased, and the demand for loans and credits increased. SOEs were again unprofitable.
By mid-1993, the situation changed, and a fourth wave of reforms was launched: job reallocation of laid-off workers had to be done through the so-called Re-Employement Project (zaijiuye gongcheng, REP), where the government not only ordered all enterprises to use the same accounting system, but in opposition to the past, it imposed a relatively hard budget constraint aimed to stop the SOEs’ indiscriminate access to bank loans, and therefore avoid the collapse of the banking system. The breakdown of the “iron ricfe bowl” system was equally suggested: as an increase of unemployment was foreseen, an institutional watchdog had to be prepared. That is why the Ministry of Labor launched the REP, instigating local governments to promote the development of training programs through the creation of re-employment service centers (zaijiuwe fuwu zhongxin) through which unemployed redundant workers could be matched with other enterprises, or otherwise encouraging them to be self-employed. By 1996 the REP proved to be effective and operational in 200 cities. As a result, the Ministry decided to re-launch new re-employment training programs for at least 4 million laid-off workers and 6 million unemployed from 2001 to 2003, as part of the Tenth Five-Year Plan.
The current wave of SOEs reforms (since 2003) is much determined by SASAC’s role in centralizing state-owned assets and pushing at least in theory for a more effective capital management system. While the private sector is rapidly growing, the remaining strong SOEs (mostly large ones, withinn an approximate total of 200) have to further transform their corporate governance system, their productivity levels and eventually their over-dependence on the banks’ generous non-performing loans.
II. Recent information from the government (2007-2011)
Central SOEs net profits up 14.2% for first five months [June 7, 2011] (emphasis is mine)
China’s state-owned enterprises (SOEs) that are administered by the central government, or central SOEs, collectively posted a net profit increase of 14.2 percent year-on-year in the first five months of 2011.
This increase was 4 percentage points lower than that of the first four months.
The combined net profits of the government’s 121 central SOEstotaled 369.51 billion yuan (56.8 billion U.S. dollars) during the period, the State-owned Assets Supervision and Administration Commission (SASAC) said in a statement on its website Friday.
The administration did not give any explanation for the profit increase or the lower growth rate.
The SASAC said revenues for central SOEs rose 24.7 percent year-on-year to hit 7.82 trillion yuan from January to May.
The SOEs had 696.7 billion yuan payable in taxes and fees for the first five months, up 27.5 percent from the same period last year, according to the statement.
Chinese SOEs ordered to hand over more profits next year [Dec 30, 2010] (emphasis is mine)
The centrally-administeredstate-owned enterprises (SOEs) were ordered to hand over 5 percent more of their after-tax profits to the central government beginning 2011, according to a statement by the Ministry of Finance (MOF) on Thursday.
According to the MOF statement on its website, 15 centrally-administered SOE giants in the resources and telecommunication sectors, including CNPC, Sinopec, CNOOC, State Grid Corporation, China Tobacco, Shenhua Group Co., Ltd. and China Mobile, should turn in to the MOF 15 percent of their after-tax profits next year, up from their current 10 percent requirement.
Also, beginning next year, 88 centrally-administered SOEs, including CHALCO, CNMC, COSCO, Air China, China Southern Airlines and China Merchants Group, will have to transfer 10 percent of their after-tax profits to the MOF, up from 5 percent this year.
Meanwhile, 33 other SOEs, including China National Nuclear Corp., China South Industries Group and China Film, will begin delivering 5 percent of their after-tax profits to the MOF in 2011. Currently, they don’t have to turn in any of their profits.
Two other SOEs — China Grain Reserve Corp. and China National Cotton Reserve Corp.– can still keep their profits for their own development next year, according to the MOF. The MOF administers China’s macroeconomic policies and the national annual budget, handles fiscal policy, economic regulations and government expenditure for local governments.
Chinese centrally-administered SOEs’ profits are expected to hit 1 trillion yuan (about 151 billion U.S. dollars) in 2010, according to the State-owned Assets Supervision and Administration Commission (SASAC).
Another 652 SOEs, mainly affiliated with the Ministry of Education, will be included in the budget system of managing state capital, which requires their expenditure be examined by national and local legislatures.
China’s central SOEs set to get smaller in size, stronger in competence
MONOPOLY OR NOT [Dec 21, 2007] (emphasis is mine)
Contributions from such central SOEs now accounted for 20 to 25 percent of China’s national fiscal revenue.
Along with jumbo revenue, which should have benefited common people, many constantly complained some SOEs were in such a monopoly position that they ate into consumer benefits.
For instance, expensive fees for making phone calls were brought up at meetings for the national congress every year. “Why should Chinese citizens be charged higher fees for making phones calls than in developed countries?” many queried.
The SASAC asked 116 pilot SOEs to turn in part of their revenue in 2006 to the government, a figure which was expected to hit 14 billion yuan. All central SOEs would hand in part of their revenue starting in 2007.
Eighteen enterprises that relied heavily on resources were required to hand in 10 percent of their revenue. Ninety nine others with a five-percent quota and two enterprises responsible for cotton and crop reserve were exempted from such obligations.
SASAC’s Li Rongrong said the revenue would be used to finance reforms of SOEs, especially to support the arrangement of laid-off workers. It could be injected into the social security fund, if possible.
The news also prompted the Chinese public to anticipate that the revenue could be included into the public budget to give more support to needy sectors such as education and medical care.
Li also said the top annual salary for managerial staff of central SOEs was 1.18 million yuan. In addition, the SASAC would publish salaries of senior SOE staff in future to introduce more transparency amid mounting speculation due to secrecy of such wages.
Central SOEs to return part of profits to exchequer next year [Sept 17, 2007] (emphasis is mine)
Central state-owned enterprises (SOEs) will begin to return some of their annual profits to the Ministry of Finance next year, according to a document released by the State Council, China’s cabinet, on Thursday.
The process will begin on a trial basis for some SOEs this year.
Since 1994, central SOEs have retained all their profits in their own coffers.
The document on State Council’s proposals on budgeting of state assets operation on a trial basis said finance authorities at all levels were responsible for budgeting. Part of the budgeted expenditure from state assets would be used for social security purposes.
It says returns on state capital include profits to be returned to the state by wholly-state-owned enterprises, dividends of enterprises with state holdings and proceeds from transfers of state-owned property rights and of state equities.
Budgeted expenditure from state assets would be mainly used for central SOE operation, development and restructuring, and be used to pay for cost of state-owned enterprises reform.
According to the National Bureau of Statistics, from 2003 to 2006, central SOEs saw their profits increase by 151.1 percent from 300.6 billion yuan (40 billion U.S. dollars) to 754.7 billion yuan.
There are 168 central enterprises under the supervision of the State-owned Assets Supervision and Administration Commission.
China orders major state-owned firms to report large investments [Aug 2, 2007] (emphasis is mine)
China’s state assets watchdog on Wednesday ordered all central state-owned enterprises (SOEs) to report their major investment activitiesin a bid to shun investment risks.
Some SOEs continue to increase their investment despite their high asset liability ratio and some even embezzle bank loans to invest in stocks and real estate, the State-owned Assets Supervision and Administration Commission(SASAC) said.
The China Banking Regulatory Commission announced on June 18 that two SOEs, the China Nuclear Engineering and Construction (Group) Corporation and the China Shipping (Group) Company, have misappropriated 4.46 billion yuan in bank loans to invest in the equity market and real estate projects.
The SASAC stated that the 155 central SOEs under its supervision should timely report their major overseas investment and investments in real estate, stocks, and insurance.
Senior officials of the major SOEs will be punished or even face criminal charges if they fail to report their major investments or cause heavy losses, the watchdog said, urging the firms to enhance their investment risk management and control.
China solves 76 commercial bribery cases in SOEs [July 12, 2007] (emphasis is mine)
China has solved 76 commercial bribery cases related to large state-owned enterprises (SOEs) in an intensive inspection campaign, with about 18 million yuan (2.4 million U.S. dollars) involved, according to the country’s state-owned assets watchdog.
Sixty-six people have been given criminal punishments and 28 administrative penalties, said the State-owned Assets Supervision and Administration Commission of the State Council.
The cases came to light after the commission ordered large state-owned enterprises to carry out self-inspection of commercial bribery between April and December last year.
Commercial bribery usually refers to bribes offered by companies to government officials or state-owned enterprises in exchange for special favors.
The campaign mainly targeted property right transfer, construction projects and material and equipment procurement, the commission said.
Property right transfer has been a major target in the fight against commercial bribery among state-owned enterprises in China.
“The self-inspection campaign reviewed all the 1,198 property transfers from the beginning of 2005 till the end of last year,” said an official with the commission.
Last year, the commission and the Ministry of Financejointly issued a notice to further regulate the approval of state-owned property right transfer and bottom prices.
In addition, regional state-owned assets watchdogs have sanctioned 65 property right trading centers in a bid to regulate property right transactions.
A monitoring system linking these trading centers with state-owned assets watchdogs in Beijing, Shanghai and Tianjin has been established to enable the watchdogs monitor all the transactions and unified release of property right transfer information in the future.
China’s SOE supervisor vows to boost transparency after violations aired in audit [May 22, 2011] (emphasis is mine)
China’s state-owned enterprises (SOEs) supervisor on Saturday said it would work to make the SOEs management more transparent after China’s top auditor publicized irregularities among a number of famed SOEs.
The release of the audit results will help the public to monitor the SOEs and help the SOEs to redress loopholes, said the State-owned Assets Supervision and Administration Commission of the State Council in a statement on its website.
The supervisor said the SOEs have made progresses in management, risk controls and social responsibilities in the past years, but they still lag far behind top-level international enterprises and should take advantage of the disclosures to enact further changes, the statement said.
Heads of the enterprises will be asked to take the lead in saving, fighting against squandering, controlling “irrational spending” and reducing management costs so that limited funds and resources can be invested in enterprise development, the statement said.
The National Audit Office (NAO) on Friday publicized some irregularities and disciplinary violations in the financial statements of 17 SOEs for the 2009 fiscal year.
By March this year, 735 cases of irregularities have been corrected and 65 people responsible for the irregularities or violations have been punished, according to the office.
Last year, the NAO audited the financial statements of 17 centrally-administered SOEs, including CNOOC, CHALCO, COSCO and China Unicom, primarily for the 2009 fiscal year.
China introduces collective decision-making for state companies to curb corruption [July 15, 2010] (emphasis is mine)
China announced Thursday it would introduce a new collective decision-making procedure into its powerful and profitable state-owned enterprises (SOEs) in a bid to strengthen anti-corruption efforts and guard against financial risks to those companies.
All important decisions, appointments of key officials or executives, arrangements of major projects, and the use of large quantities of capital inside the SOEs must now be jointly decided by their collective leadership, said a statement released by the General Office of the Central Committee of the Communist Party of China (CPC) and the General Office of the State Council, or China’s Cabinet.
The statement highlighted China’s increasing pressure to keep executives of its profitable SOEs under the public’s direct supervision.
Thirty-five senior executives of China’s large SOEs, such as former Sinopec chairman Chen Tonghai, faced corruption charges last year and 31 of them were found to be connected to cases involving an average of 110 million yuan (16.2 million U.S. dollars).
With the new procedures, SOEs are expected to improve their decision-making mechanism by modifying the rules of procedures that include public participation, expert consultations and collective decisions concerning major issues, according to the statement.
Development strategies, filing for bankruptcy, restructuring, mergers and acquisitions, transfers of ownership and overseas investment plans by SOEs are all to become subject to such collective decision making practices, said the statement.
The SOEs’ annual investment plans, financing, financial derivatives such as options and futures, imports of key equipment and technologies, bulk purchases and construction of major projects also would now need approval from their collective leadership, according to the new procedures.
Corruption watchdog promises closer supervision of China’s SOEs [Jan 7, 2011] (emphasis is mine)
China’s discipline and government watchdog Thursday pledged to tighten supervision on state-owned enterprises and fight corruption among their executives.
“We will push hard investigations into and punishment of corruption in the restructuring, merger, property transactions, capital operations and construction projects of state-owned enterprises,” said Vice Minister of Supervision Qu Wanxiang at a meeting in Beijing.
The watchdog would focus on cases involving executives and employees in senior positions, said Qu, also a member of the Standing Committee of the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI).
Severe measures would be taken to curb commercial bribery and the illegal practice of setting up “small coffers,” referring to funds, securities and assets that should, but frequently are not, listed in account books in a bid to escape supervision.
The inspectors would also target malpractice that harmed common employees’ legal rights and interests in the restructuring of state-owned enterprises, Qu said.
Last year, China saw a string of serious corruption cases in state-owned enterprises.
According to a report Tuesday by Faren Magazine, affiliated to the Legal Daily and overseen by the Ministry of Justice, 35 senior executives of China’s large state-owned enterprises (SOE) faced corruption charges last year.
Among them was Kang Rixin, general manager of the China National Nuclear Corporation(CNNC), who has been under investigation for alleged grave violations of discipline since August.
Another prominent case involved Chen Tonghai, former general manager of China Petrochemical Corporation, who was found to have taken almost 200 million yuan in bribes and given a death sentence with a two-year reprieve in July.
“Efforts should be made to incorporate corruption prevention in enterprise governance and risk control systems,” Qu said.
The government should further reform SOEs to help build sound corporate governance with proper decision-making, operations and supervision, he said.
Over the past three decades, China has been trying to introduce a modern corporate management in its state-owned enterprises, but faced problems with a lack of supervision and restricting the authority of managers.
China to watch out for corruption in SOE stimulus projects [Feb 8, 2009] (emphasis is mine)
China’s state assets watchdog will closely watch over projects implemented by state-owned enterprises(SOEs) in the country’s massive stimulus package to prevent corruption, an official said in BeijingSunday.
The State-owned Assets Supervision and Management Commission (SASAC) will strictly look into the progress and fund use of projects by SOEs directly under the central government, said the SASAC director Li Rongrong.
Many projects are estimated to see over tens of millions of yuan put in, making it a more important task to fend off corruption, he said at an SOE meeting on disciplinary inspection work.
China unveiled a stimulus package with a total investment of 4 trillion yuan (586 billion U.S. dollars) in November to boost domestic demand and offset the world economic slowdown.
Of the total, 100 billion yuan had been allocated by the central government by the end of last year.
Li said inspectors will particularly focus on projects in such sectors as power grids, telecommunications, transportation, equipment, construction and metallurgy.
The SASAC will also check whether the projects cause environmental hazards, consume too much energy and resources or result in excessive capacity, said Li.
A total of 4,960 Chinese officials above the county level were punished in a year ending November 2008, data show. They were involved in corruption and commercial bribes, hurting people’s interests.
China state executive posts attract rising number of applicants [Sept 12, 2008] (emphasis is mine)
More than 2,700 people have applied for 16 executive positionsof the centrally-administered state-owned enterprises (SOEs) open for public competition this year, the State-owned Assets Supervision and Administration Commission (SASAC) said.
The 2,745 applicants more than doubled that of those applying for last year’s 22 posts.
Of this year’s available posts, six received 200 to 300 applicants for each.
SASAC said the positions included three general managers, 10 deputy general managers and three chief accountants from different industries. They covered electricity, metallurgy, electronics, chemical engineering and tradefirms.
China FAW Group Corporation, China Baosteel Group and China Southern Power Grid, all ranked among the world’s top 500 companies, were also recruiting.
SASAC also said 383 applicants, 12 from overseas and four from Hong Kong, Macau and Taiwan, met the qualifications. They have been notified to sit for a written exam to be held soon.
Most qualified applicants have post-graduate degrees and are aged under 45, while 140 currently are heads of enterprises. In addition, 69, or 18 percent, have overseas working or study experience.
In 2003, SASAC started to recruit from both home and abroad. The agency hoped such managers could help improve the competitiveness of SOEs in the global market.
China considers cap on salaries at state monopolies [June 30, 2010] (emphasis is mine)
Chinese authorities are considering putting a ceiling on the total amount of salaries distributed at profitable state-owned monopolies amid government efforts to narrow the widening wage gaps between the rich and poor.
The Ministry of Human Resources and Social Security (MHRSS) said in a report that it would proceed to map out specific measures to “strictly control” the total payments distributed at state-owned monopoly businesses. The report was obtained by Xinhua Tuesday.
The report, which was written after a working group from the Standing Committee of the National People’s Congress (NPC), China’s top legislature, put forward written proposals on the enforcement of the country’s Trade Union Law, did not spell out the upper limit of the payment aggregate.
In China, the monthly salary for an average employee at state-owned monopolies, such as telecommunications and natural resources, could be as high as three times compared to those working in the private sector, most of whom earn about 3,000 yuan (about 440 U.S. dollars) per month.
This widening gap has resulted in some public complaints and driven millions of college graduates to seek jobs at state-owned monopolies, where employees are assured of better healthcare insurance and a more stable income.
To establish a “normal wage growth mechanism”, the ministry said in its report it would continue to address wage gap problems through a procedure to “put a ceiling on high-income, expanding the medium-income class and ensuring minimum wages.”
The ministry would also continue to push for the establishment of a mechanism that grants workers more decision-making power in formulating salary policies and enables their wages to fluctuate in line with the ups and downs of businesses, according to the report.
It said the income of executives, especially those in the senior ranks, in centrally administered state-owned enterprises should be regulatedand authorities should ensure minimum wage standards be altered in a reasonable and timely manner.
The Standing Committee of NPC has assigned a working group to review the enforcement of the country’s Trade Union Law from July to August last year.
Based on investigations and research, the working group sent forward written proposals on the implementation of the Trade Union Law.
The MHRSS, in collaboration with the ministries of commerce and health, the All China Federation of Trade Unions, as well as the Legislative Affairs Office of the State Council, or China’s cabinet, mapped out the report based on these proposals.
The report was then submitted to the State Council and forwarded to the top legislature at the 15th session of the Standing Committee of the 11th NPC, a four-day meeting that ended Friday.
Copies of the report were distributed to members of the NPC Standing Committee during the meeting.
China strives to readjust income distribution to stop yawning gap [March 5, 2011] (emphasis is mine)
Readjusting income distribution in a reasonable manner is both a long-term task and an urgent issue to address at present, Premier Wen Jiabaosaid Saturday in his government work report delivered at the parliamentary annual session.
According to Wen, three major measures will be taken in 2011: increasing the basic incomes of low-income people in both urban and rural areas, putting more effort into adjusting income distribution, and vigorously overhauling and standardizing income distribution.
“We will steadily increase the minimum wage of workers, basic pensions of enterprise retirees, and subsistence allowances for both urban and rural residents,” Wen said, noting that a sound mechanism of regular pay raises for workers and strictly enforce the minimum wage system will be established.
The government will also raise the individual income tax threshold on salaries, reasonably adjust the tax rate structure, and genuinely reduce the tax burden on low- and middle-income people.
“We will effectively regulate excessively high incomes, strengthen the dual controls on total wages and wage scales in industries in which incomes are excessively high, and strictly standardize the management of executive pay and bonuses in SOEs and financial institutions,” the premier said.
Wen added that illicit income will be resolutely prohibited and a system for monitoring income distribution will be quickly established.
“Through unremitting efforts, we will reverse the trend of a widening income gap as soon as possibleand ensure that the people share more in the fruits of reform and development,” he said.
Political advisor expects more competitiveness of SOEs [March 8, 2011] (emphasis is mine)
A Chinese political advisor on Tuesday suggested that state-owned enterprises (SOE) raise their competitiveness only in the key sectors that bear on the lifeline of the national economy.
Large SOEs had benefited from the country’s loose monetary policy in recent years and taken the bulk of banking loans, and excessively expanded into sectors such as real estate and non-ferrous metals, said Ou Chengzhong, a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).
Among the 398 economic sectors, SOEs were present at 380 and about 40 percent of them were involved in commonplace manufacturing, processing and commercial and trade sectors, according to the figures quoted by Ou.
Although China is regarded as one of the leading industrial manufacturers in the world, China has to import key equipment in some fields, the political advisor said at the on-going annual session of the CPPCC National Committee.
In this sense, SOEs have to raise their competitiveness with the focus on innovation, high technology, core manufacturing know-how and world-class brands, Ou said.
On the other hand, he suggested that SOEs exit from non-essential economic sectors to make room for the growth of private businesses.
SOEs employ less than 30 million people, while 160 million people work in non-governmental businesses, according to Ou.
China to let 20 more SOEs fully exit real estate business this year [Feb 22, 2011] (emphasis is mine)
More than 20 centrally administered state-owned enterprises (SOEs), whose core business is not property, will fully exit the real estate business this year.
Shao Ning, deputy chairman of the State-owned Assets Supervision and Administration Commission of the State Council(SASAC), the SOEs regulator, said Tuesday.
Fourteen SOEs exited the real estate sector last year, Shao told a press conference.
He said some companies need time to finish ongoing projects before they could fully retreat from the real estate business and focus on their core operations.
To curb asset bubbles, the SASAC banned 78 SOEs from investing in property in March last year as property was not their core business.
Shao also said the SASAC would make public the income of the SOEs’ executives when necessary.
Currently, China has 121 centrally administered state-owned enterprises with their total assets worth nearly 24 trillion yuan (3.65 trillion U.S. dollars).
Chinese vice premier urges SOEs to boost growth mode transformation [April 12, 2011] (emphasis is mine)
Chinese Vice Premier Zhang DejiangTuesday called for state-owned enterprises (SOEs) to make greater efforts to boost economic development mode transformation.
Zhang made the remarks during his inspection tour of some SOEs in Beijing, including China MinmetalsCorporation, China State Shipbuilding Corporation and the State Nuclear Power Technology Corporation Ltd. (SNPTC).
“SOEs are the backbone of the national economy and it is very important for them to maintain a stable and relatively fast growth momentum to ensure the continual and healthy development of the economy,” Zhang said.
“With impacts of the global financial crisisstill lingering, China’s economic growth faces not only historic opportunities, but also risks and challenges,” Zhang said.
More efforts should be made to expand overseas markets, improve management, boost scientific innovations and highlight production safety, Zhang also said during the inspection tour.
Full text: Report on China’s economic, social development plan (2011)
5. Reform and opening up were further intensified. [March 17, 2011] (emphasis is mine)
In terms of enterprise reforms, the reform to institute a corporate system or a stockholding system was carried out in over 70% of the central state-owned enterprises (SOEs) and enterprises subordinate to them, and the pilot project for standardizing boards of directors was extended to 32 central SOEs. We made further progress in reforming the power industry, postal services and public utilities. We also promulgated and implemented a number of supporting policies to promote the development of the non-public sector and small and medium-sized enterprises.
In terms of reforming the fiscal and taxation systems, we implemented the reform to place county finances directly under the management of provincial governments in 970 counties across 27 provinces; conducted trials in the western region on the reform of resource taxes on oil and natural gas; and extended the urban construction and maintenance tax and education surcharge to foreign enterprises and nationals.
…
The development level of the open economy was raised further. We adhered to the strategies of diversifying markets and competing on quality; tightened control over exports of resource products and products whose production is energy-intensive or highly polluting; increased imports of raw materials in short supply on the domestic market, energy-intensive products, advanced technology, and key spare parts and components; and eased the trade imbalance. Total import and export volume reached US$2.97276 trillion in 2010, an increase of 34.7%. Exports rose 31.3%, imports rose 38.7%, and the trade surplus was down 6.4% from the previous year. We introduced the guidelines on better utilizing foreign investment and guided foreign investments toward high-end manufacturing, high-tech industries, modern service industries, new energy sources, energy conservation and environmental protection industries, and the central and western regions. Utilized foreign direct investment in 2010 (excluding the banking, securities and insurance sectors) totaled $105.74 billion, up 17.4%. Disbursed foreign loans reached $20.5 billion, up 57%. We vigorously implemented the “go global” strategy and made further progress in a number of major outward investment projects. Non-financial outward direct investment for the year amounted to $59 billion, an increase of 36.3%. Receipts from overseas project contracting operations reached $92.2 billion, an increase of 18.7%.
China’s central SOEs perform well abroad: regulator [Feb 22, 2011] (emphasis is mine)
China’s centrally administered state-owned enterprises (SOEs) had posted healthy profits in foreign markets since they adopted the strategy of going global in recent years, government official said Tuesday.
In 2009, China’s SOEs’ overseas assets took up 19 percent of their total assets while profits made in foreign markets accounted for 37 percent of the total, Shao Ning, deputy chairman of the State-owned Assets Supervision and Administration Commission of the State Council(SASAC), the SOEs regulator, said at a press conference.
While noting the commendable performances, Shao also warned of the potential risks.
“China’s SOEs generally lack international management skills. Moreover, they are not familiar with the foreign laws and market standards there,” Shao said.
He said the SASAC is working on a range of proposals to better regulate asset management of the SOEs in overseas markets.
Currently, China has 121 centrally administered SOEs with their total assets worth nearly 24 trillion yuan (3.65 trillion U.S. dollars).
Central SOEs sign contracts worth 293 bln yuan with Guizhou [Dec 26, 2010] (emphasis is mine)
Representatives for a number of centrally-administered state-owned enterprises (SOEs) signed 47 contracts worth 292.9 billion yuan (about 44.38 billion U.S. dollars) with authorities of southwest China’s Guizhou ProvinceSunday.
The 47 projects included industries such as minerals intensive processing, manufacturing, electricity, as well as transportation, said Wang Yong, director of the State-Owned Assets Supervision and Administration Commission of the State Council.
Thirty-three of the 47 projects will begin construction in 2011, with the investment totaling 237.6 billion yuan. The other 14 projects will start construction in 2012.
In recent years, a number of central SOEs, including the country’s oil giants PetroChina and Sinopec, have invested in Guizhou, a land-locked and poverty-ridden region in west China, which has boosted the local economic development and also helped the companies to expand in terms of strength and scale, Wang said.
“I hope central SOEs will continue to participate in Guizhou’s social and economic development and seek strategic cooperation with the province to push forward its leapfrog development,” Wang said.
China launches new state asset management company to accelerate reshuffle [Dec 22, 2010] (emphasis is mine)
China on Wednesday unveiled a new asset management company, with the aim of restructuring uncompetitive state-owned enterprises (SOEs) through stepped-up mergers.
The new firm, named China Reform Holdings Corporation Ltd., will focus on “reorganizing small SOEs which have no bearing on national security and are not crucially important to the national economy,” the State-owned Assets Supervision and Administration Commission (SASAC), the country’s regulator for SOEs said in a statement.
The first-phase registered capital of the new company, which is wholly owned by SASAC, is 4.5 billion yuan (681 million U.S. dollars). SASAC has not yet revealed which companies will be involved in the reshuffle.
Xie Qihua, former chairwoman of the Baosteel Group Corporation, China’s largest steel maker, has been appointed as board chairwoman of the new company. Liu Dongsheng, an SASAC official, will act as the general manager, it said.
“The launch of the new company marks an important move to advance an optimized restructuringof the distribution concerning state-owned economic entities,” Wang Yong, deputy director of SASAC, said at the launching ceremony.
The new company will participate in the share-holding reform of those centrally-administered enterprises featuring lesser importance or smaller scale, and will also invest in emerging industries with strategic importance, he said.
China’s SOEs include SOEs directly controlled by the central government and SOEs supervised by local governments, but exclude state-owned financial enterprises.
Profits of China’s state-owned enterprises (SOEs) in the first 11 months hit 1.81 trillion yuan (271.92 billion U.S. dollars), up 43.1 percent year on year, according to figures released by the Ministry of Finance (MOF) on Dec.17.
CRHC announces China Huaxing Group deal [May 26, 2011] (emphasis is mine)
State asset management company China Reform Holdings Corp (CRHC) announced Wednesday that it has formally acquired its first central government-controlled State-owned enterprise (SOE), China Huaxing Group.
In a meeting held Monday, the State-owned Assets Supervision and Administration Commission (SASAC) announced that China Huaxing Group, which is active in sectors including chemicals and real estate, had been integrated into CRHC, the company said in a newsletter published on its website.
“Integrating Huaxing into CRHC is the commission’s strategy to promote the restructuring and reform of central government controlled SOEs by leveraging the platform of CRHC. It marks the formal kick-off of asset management operations by CRHC,” Shao Ning, the commission’s vice director, said.
CRHC holds the property rights over State-owned assets in the SOEs it merges and exercises the rights as an investor in these companies.
The restructuring of central government-controlled SOEs will speed up following the Huaxing acquisition, observers predicted.
Launched at the end of last year with 4.5 billion yuan ($692.91 million) in registered capital, CRHC, the third asset management company formed under SASAC, is mainly targeting small and underperforming SOEs in sectors that do not affect national security or core economic areas.
Founded in 1995 with registered capital of 819.66 million yuan, Huaxing is active in sectors as diverse as chemicals, real estate, IT and trade.
However, the conglomerate has been a loss maker. In 2009, it posted a loss of 40 million yuan and was one of very few SOEs running in the red, according to a report by China Business News Wednesday.
China has in recent years stepped up efforts to restructure central government controlled SOEs following initial SOE reform between 1998 and 2003. The number of central government-controlled SOEs has fallen from 196 to its current total of 120 following Huaxing’s integration into CRHC.
The key to reforming these SOEs is making them more market-oriented, Ding Yifan, a researcher with the Development and Research Center of the State Council, told the Global Times. Simply reducing their numbers does not amount to real reform, he said.
The Chinese government currently maintains absolute control of companies in key sectors such as electricity grids, oil and gas.
Profits of local SOEs continue dropping but declines narrow [Dec 24, 2009] (emphasis is mine)
Profits of China’s state-owned enterprises excluding those administered by the central government continued to drop in the first 11 months from a year ago, but the rate of decline narrowed sharply.
The SOEs posted combined profits of 258.39 billion yuan (38 billion U.S. dollars), down 6.5 percent year on year, the State-owned Assets Supervision and Administration Commission (SASAC) announced Thursday.
The rate of decline was 11.7 percentage points lower than that for the first ten months, the country’s assets watchdog said.
Business revenue of the SOEs grew 2.8 percent year on year to 5.9 trillion yuan in the first 11 months.
The SOEs include enterprises affiliated to 82 central departments, and those administered by provincial, regional and municipal governments but exclude 131 enterprises administered by the SASAC.
Profits in China’s gov’t firms continue to fall but decline eases [Dec 18, 2009] (emphasis is mine)
Profits in China’s state-ownedenterprises (SOEs) continued falling in the first 11 months from a year earlier, but the rate of decline eased markedly because of a lower comparison base.
The SOEs posted combined profits of 1.19 trillion yuan (174.1 billion U.S. dollars) in the first 11 months, down 1.9 percent compared with the same period of last year, the Ministry of Finance announced Friday.
During the January-October period, profits in the SOEs declined 10.6 percent year on year, compared with a 17.6-percent annual drop during the January-September period.
In November, SOE profits edged up 0.8 percent from the previous month to 124.6 billion yuan. Business revenue of the companies rose 9.6 percent to 2.3 trillion yuan in November from October.
In the first 11 months last year, China’s SOEs experienced a sharp year-on-year drop in profits of 15.7 percent, as the impact of the global financial crisisstarted to weigh on the country’s economy with falling enterprise output and profitability.
The SOEs covered by the ministry statistics included 131 enterprises administered by the State-owned Assets Supervision and Administration Commission, on behalf of the central government, enterprises affiliated to 82 central departments, and those administered by provincial, regional and municipal governments.
Non-SOEs employ 80% of workforce in China’s industrial sector [Nov 23, 2009] (emphasis is mine)
Non-state-owned enterprises (non-SOEs) employed 70 million people, or 80 percent of China’s total workforce in the industrial sector in 2008, the National Bureau of Statistics(NBS) said in a statement Monday.
Despite the global economic downturn, non-state-owned industrial firms still hired 15 percent more people in 2008 than the previous year, the NBS said on its website.
Profits of these enterprises jumped 31.4 percent from 2007 while the figure for state-owned industrial firms dropped 16 percent.
There were 28 percent more non-state-owned industrial enterprises in 2008 than 2007.
The NBS gave no further details about the figures.
The non-public economy has developed rapidly since the State Council promulgated the first governmental document in 2005 to support and facilitate the growth of non-public enterprises.
According to the document, non-public enterprises enjoyed the same kind of market access with foreign capital and the same kind of treatment in project approval, financing, taxation, land use, foreign trade and economic cooperation as other businesses.
The number of people working in non-state-owned industrial firms had reached 70.4 million in 2008, a rise of 40 percent from 2005, said the statement.
Profits of non-state-owned industrial firms were up 160 percent in the four years to 2008. They represented more than 70 percent of the total profits created by Chinese industrial enterprises, up from 56 percent in 2005.
The number of non-SOEs in the industrial sector was up 65.7 percent from 2005 to 404,800 in 2008, accounting for 95 percent of the country’s total industrial enterprises.
The statistics were based on industrial enterprises with annual sales revenue of more than 5 million yuan (732,064 U.S. dollars), said the statement.
Two thirds of China’s SOE giants become share-holding companies [Aug 26, 2008] (emphasis is mine)
Almost two thirds of China’s centrally-administered state-owned enterprises (SOEs) and their subsidiaries become share-holding companies after three decades of reform, the country’s top state assets regulator said on Monday.
Li Rongrong, director of the State-owned Assets Supervision and Administration Commission (SASAC), said 64.2 percent of the SOEs and their subsidiaries had undertaken share-holding reforms, compared with 30.4 percent in 2002.
A number of large SOEs had gone public in both domestic and foreign stock markets. Of about 1,500 listed companies in China’s A-share stock markets, more than 1,100 were wholly or partly state-owned, he said.
Seventy-eight centrally-administered SOEs were listed in Hong Kong, New York and Singapore stock markets.
Meanwhile, the country’s state-owned economy was gradually converging into critical sectors that bore great significance to state security and the national economy.
Critical sectors such as oil, petrochemicals, power, national defense, telecommunications, transportation, and mining comprised about 83 percent of the total assets of centrally-administered SOEs, according to the SASAC.
These SOE giants had shouldered almost all the production of crude oil and natural gas and provided all the basic telecommunications and 55 percent of the country’s power supply, while 82 percent of civil aviation servicesalso came from those SOEs.
With deepening reforms, the number of China’s SOEs were declining, but they were growing.
The country has 149 centrally-administered SOEs, down from 196 in 2003, and the number is expected to shrink to between 80 and 100 by 2010, through merger and restructuring, according to SASAC.
Though declining in numbers, the major SOEs accounted for 35.91 percent of total assets, 61.54 of sales revenues, and 63.25 percent of profits of all the SOEs in the country.
From 2002 to 2007, centrally-administered SOEs saw their assets rise by 1.5 trillion yuan (218.95 billion U.S. dollars), sales by 1.3 trillion yuan, and profits by 150 billion yuan each year.
Cabinet approves 3 technological projects [Dec 26, 2007] (emphasis is mine)
China’s State Council, or the cabinet, approved three national technological projects in the fields of telecommunications, water pollution control, and pharmaceutical manufacturing and innovation, during Wednesday’s meeting.
Premier Wen Jiabaopresided over the executive meeting that deliberated the three projects. The three are a next-generation broadband wireless mobile communication network, water pollution control and treatment, and the manufacture and innovation of key new drugs.
“These technological projects, all set in the national medium- and long-term science and technology development plan, are of great significance to boosting China’s independent innovation capability and industrial competitiveness,” the meeting pointed out.
It said that “after a scientific, democratic and strict demonstration”, the three schemes had become ripe for inauguration.
The next-generation communication network represents the main direction of communications development. Applying it will greatly enhance the overall competitiveness and innovative capacity of China’s wireless mobile communication, and lift the industry to a more advanced world level, according to the meeting.
It said that the water pollution control projectwould provide solid technological support to address environmental woes of major water sources including the Yangtze River and Yellow River, to achieve an “energy saving and emission reduction” goal.
The drug innovation projectwould target the treatment and prevention of serious diseases and innovation of key drugs so as to offer the public safe, effective and cheap medical products, the meeting said.
The meeting also heard a report on the inspection and supervision of central enterprises, made by the State-owned Assets Supervision and Administration Commission, which was directly under the cabinet.
“Central enterprises have deepened the reform, accelerated restructuringand maintained a sound momentum of sustainable and fast development,” it said.
However, violation of laws and regulations occasionally occurred due to relatively high debt and poor profits.
The meeting said that greater attention should be paid to SOE reform and management and supervision of state assets to promote sound development. It also asked enterprises to invest more in innovation, deepen SOEs’ shareholding reform, and safeguard state asset security.
China’s first state asset law, designed to protect state-owned assets from being illegally seized and to maintain the country’s basic economic system, was submitted last Sunday and is being given initial consideration by the top legislature.
China’s central SOEs set to get smaller in size, stronger in competence
REFORMS LEAD TO GROWTH [Dec 21, 2007]
statistics revealed that the total assets of central SOEs had already jumped 146 percent. In addition, profits increased two-fold when the number of SOEs dropped to about 160 last year from 196 in 2002.
Reforms were at the core of these impressive improvements of the SOEs, previously known for their “plump size and slack performance”.
After China’s SOEs were separated from administrative government bodies to exist as independent enterprises, a major shift from the planned economy, these enterprises went through further shareholder reforms to build themselves into real corporate entities.
In 2007, the pace of such reforms accelerated amid the country’s efforts to further promote the leading role of these large enterprises, the “backbone” of the national economy, said Vice Premier Zeng Peiyan.
As an important part of shareholder reform, another nine central SOEs offered initial public offerings this year, adding to the 33 SOEs listed domestically and abroad since the listing scheme launched in 2003.
Li Rongrong, head of the SASAC, was supportive of the overseas listings of Chinese enterprises, saying overseas markets had more sophisticated approaches that could help improve management of Chinese SOEs.
In a pilot move, the SOEs began to have outside directors. This was meant to make decision makers more detached from executive staff to better protect the interests of the company and common shareholders.
Currently, 19 such SOEs, including China Baosteel Group and China Shenhua Group, have picked up 66 outsider directors. The outside directors at 17 companies consisted of half or more of their board of directors members.
Since 2003, the SOEs started to recruit senior managerial staff in a more open way, whereas in the past these posts were not publicly available.
This year, 22 vacancies for high-level positions in central SOEs attracted 1,603 applicants. These included 25 foreigners and 10 from Hong Kong, Taiwan and Macau.
Li Fangyong, deputy general manager of China Aviation Industry Corporation I (AVIC I), and Jiang Zhenxin, deputy general manager of China Netcom Group, were among those who finally beat their rival competitors. No foreigners have been recruited yet.
“Reforms have pushed central SOEs onto the front-line of the market to compete with other enterprises, including international companies. It is this kind of competition that has marked up the competitiveness of these SOEs,” said SASAC analyst Peng Huagang.
BRIGHT FUTURE AHEAD? [Dec 21, 2007] (emphasis is mine)
Chinese SOEs are still dwarfed in strength and core competitiveness when compared with multinationals and first-class international companies, said SASAC head Li Rongrong. He cited development imbalance among these enterprises, even within a single enterprise.
Nearly 70 percent of aggregate profits were generated by nine leading enterprises, including China Mobile, China National Petroleum Corporation, China Baosteel and the State Grid in 2006.
Corresponding information for this year was not revealed by the SASAC. It only said that shipbuilding, automotive and shipping enterprises were becoming new, significant profit earners, joining those in the petroleum, power generation and telecom sectors.
However, Li did express concern over the financial conditions of central SOEs at a working meeting recently held in Beijing. “Profitability of some enterprises was not well-grounded as their profits were concentrated in a few subsidiaries. Some enterprises reported a lower profit rate in core businessescompared with a year earlier,” he said.
About 31.2 percent of newly-earned profits of central SOEs were in the category of non-regular revenue. “This non-regular revenue usually comes from return from investment in other than core businesses, largely investment in securities,” said Liu Cheng, a University of Science and Technology Beijing professor.
Yet, experts believed the growth of enterprises was undoubtedly behind the profit surge of central SOEs, and investment returns from securities had made limited contribution to their profitability.
Profits earned by central SOEs have been increasing steadily since 1998, and there was no such fluctuation as to copy that of the stock market, said World Bank (WB) economist Zhang Chunlin.
SASAC’s Li also pointed out some SOEs relied too heavily on bank loans to expand their businesses. This increased their exposure to financial risk. The SASAC statistics showed that 18 enterprises expected to cover more than 70 percent of their investment budget with bank loans.
“These are ‘life and death’ issues of enterprises, and they deserve due attention from top management,” Li said.
…
Li said SASAC would further deepen reforms to build a modern corporate system into central SOEs in the coming year, upholding the goal of building “larger and stronger” individual enterprises.
The SASAC planned to cut the number of SOEs under its supervision to less than 100 by 2010. At the same time, it would get 30 such enterprises ranked among the world’s top 500 companies by 2015 at the latest, up from 16 for 2007.
Despite arguments saying large and well-performing SOEs should get listed on the domestic market to avoid sharing profits with foreign investors that were largely a result of government support and monopolized access to state resources, Li said SASAC encouraged qualified SOEs to list as a whole in 2008, and to list on both domestic and overseas markets.
III. Current situation: mostly related to the China Mobile
Chinese media report flight of state assets [June 16, 2011] (emphasis is mine)
On its front page today, the New Express newspaper, a spin-off of Guangzhou’s Yangcheng Evening News, reports figures released by an enforcement division of China’s central bank showing that since the mid-1990s an estimated 16-18,000 Party, government, police and state-owned enterprise officials from China have disappeared overseas with approximately 800 billion yuan, or roughly 123.6 billion US dollars.
This news was first reported yesterday by Beijing Youth Daily reporter Cheng Jie (程婕), in a piece re-posted widely across the internet [HERE too].
The basis for the reports from Beijing Youth Daily and the New Express is a document released on the internet by the Anti-Money Laundering Bureau (Security Bureau) of the People’s Bank of China, China’s central bank. The report is called, “Research on the Channels and Detection Methods for the Transfer Overseas of Asset by Corrupt Elements in Our Country” (我国腐败分子向境外转移资产的途径及监测方法研究).
Audit reveals more financial indiscrepancies and fraud [May 23, 2011] (emphasis is mine)
State-owned enterprises (SOEs) were once again thrown into a fresh image crisis over the weekend. The turmoil came after China’s audit watchdog published irregular practices and disciplinary violations in the financial statements of 17 SOEs operating directly by the central government.
According to reports released by the National Audit Office on Friday, the irregular practices include overstating earnings, understating assets with improper accounting procedures, concealing information about investment activities overseas, evading taxes, excessive bonuses and forged invoices.
The office said in a statement on Friday inadequate investment decisions, which led to losses or potential losses of State-owned assets and improper management of their subsidiaries, are the key problems contributing to irregularities in the financial statements of these SOEs audited. Second and third tier SOEs were found to be guilty of the most infractions.
Sinosteel Corporation overstated 1.99 billion yuan ($306.48 million) of sales earnings between 2007 and 2009. The company was also found to have more problems related to investment overseas.
Sinosteel International Holding Co, a subsidiary of Sinosteel Corporation, failed to adequately report three investment projects overseas.
Provident Faith Investment, a subsidiary of Sinosteel International Holding Co, was found unable to recover 1.85 million yuan in overseas futures transactions made through overseas illegal futures brokers.
During the time when the company was charged with managing the capital of the Sinosteel Corporation overseas, Golden Prosperity Development Co, another subsidiary of Sinosteel International Holding Co, withdrew large sums of cash to pay commissions to individuals.
The company also transferred part of the funds to the personal accounts of working staff in other parts of the group for daily expenditures for the institution.
Days before the audit report was released, the State-owned Assets Supervision and Administration Commission (SASAC) announced it would remove Huang Tianwen, president and deputy Party Secretary of the Sinosteel Corporation, from his position without giving details.
Other SOEs including the China Three Gorges Corp, China Unicom and China National Nuclear Corp were also found to have problems managing their funds.
The audit, conducted last year, once again threw into the limelight the SOEs who have long been made the target of public attacks due to their monopolies, high incomes and privilege.
A spokesman for the SASAC said Saturday they would increase transparency of SOE operations.
Wang Yukai, professor of governance at the Chinese Academy of Governance, said the irregularities and violations exposed problems in the governance of SOEs, making them hard to supervise.
“Besides, some SOEs’ leaders are too eager to impress their supervisors by making instant profits through investments overseas during their tenure, but lack proper investment expertise,” he said.
China’s state-owned firms mired in scandals [June 16, 2011] (emphasis is mine)
China’s state-owned enterprises have been hit by scandal after the country’s supreme audit office announced in May that it had uncovered several acts of misconduct such as tax evasion and the inappropriate use of company money by officials in 17 state-owned firms.
The National Audit Office of the People’s Republic of China (CNAO) made the announcement after reviewing the financial statements of these companies, which included the China United Network Communications Group Co and the China Three Gorges Corp, which operates the Three Gorges Dam on the Yangtze.
A total of 65 company representatives are currently under investigation, according to the office.
Prior to the investigation, China Petroleum & Chemical Corp (Sinopec)was revealed to have squandered millions of yuan on expensive wines and illegally awarded bonuses to its employees.
In addition, China’s state-owned Xinhua news agency reported that the Anhui branch of the State Grid Corporation of Chinahad illegally provided 300 of its senior employees with private cars.
Several officials from leading telecom firm China Mobileare also said to have been under investigation since 2009 for inappropriate corporate behavior.
The scandals, which were initially discussed intensively on the internet, have now become a nationwide subject of debate after coming under the media spotlight for over a month.
After the Sinopec “expensive wine” scandal, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) convened a meeting with the companies to discuss public opinion — and discontent — as well as ways to resolve the issue, according to the Chinese-language Beijing News.
At a meeting to explain the company’s extravagant spending on wine, Sinopec director Li Chunguang complained that he could not understand why the public was criticizing companies that contribute billions of yuan in taxes to the country each year.
In an effort to improve industry’s image, SASAC released the contact information of the spokespersons of 120 state-owned companies to the public in February this year.
Furthermore, sources said that some companies had also hired public relations companies in recent years, and invested several million yuan to improve their interactions with the media and public.
Economist Hua Sheng said that the public’s anger towards state-owned companies is a reflection of their dissatisfaction about the unequal distribution of income and government finances.
Liu Cheng, a professor at the University of Science and Technology in Beijing, noted that the reason these companies have become targets for public anger is because they had not fulfilled their social responsibility of serving the national interest. Instead, they have become tools for personal gain, he said.
Chinese professionals prefer domestic firms [June 9, 2011] (emphasis is mine)
SHANGHAI – With the growth of the national economy and the continuous development of Chinese enterprises, more middle- and high-level professionals in China now prefer to work for domestic companies rather than foreign-owned enterprises, human resources experts said.
“Multinational companies have long been in a favorable position in the recruiting market due to their liberal reward and advanced management culture,” said Chen Jiewei, senior consulting manager with China International Intellectech Corporation (CIIC), a Shanghai-based HR services company.
“But over the past five years, Chinese companies have been doing excellently and many of them have been listed abroad. They have demonstrated their competitive strength,” Chen told China Daily, “Now they can offer salaries and bonus plans that are competitive with foreign companies, which makes them increasingly attractive for high-level management professionals.”
A report from CIIC said that the annual salary for management positions in Chinese enterprises is basically equal to that in Japanese enterprises, about 200,000 yuan ($30,880) a year (before tax), while for European and US enterprises it is about 250,000 yuan a year. For director positions, European and US enterprises generally provide an annual salary of more than 400,000 yuan, while Chinese enterprises offer more than 300,000 yuan and Japanese enterprises about 300,000 yuan.
For senior management positions, the annual salary in a European or US enterprise is about 800,000 yuan, while large Chinese enterprises offer about 600,000 yuan and Japanese enterprises about 500,000 yuan.
But Chen said that it is not only the salaries that are driving high-level talent toward Chinese companies. It is also a better personal career path.
“Multinational companies have developed for a long time in China, and practiced a localization strategy, but even so, a lot of senior management positions are still dominated by foreigners. High-level Chinese staff often find it’s hard to break through the bottleneck and advance,” Chen explained. “They have no scope for their particular talents.”
“Some large Chinese companies, on the other hand, can provide sufficient room for people’s career development,” Chen added.
“Chinese enterprises have developed very fast and improved effectively over the past years in terms of the management level, working environment, compensation packages, as well as the promotion system. They have competitive advantages over their foreign counterparts in recruiting staff,” said a 33- year-old man, surnamed Wang, who declined to give his full name.
Wang currently works as a department manager in a US technology company but he hopes he can move to a Chinese company, especially a State-owned company.
“State-owned enterprises have improved their market performance and have comprehensive competitiveness. That means there may be more opportunities for self-development,” Wang said.
State-owned enterprises overtook foreign and private enterprises as the top destination for job-seeking graduates in 2010, according to a survey of 200,000 students conducted by ChinaHR.com. Eight of the top 10 companies named in the survey are State-owned.
Chinese companies are more popular among students born between 1980 and 1990, majoring in science and engineering, according to a survey by Aon Hewitt, a global human capital consulting company.
Aon Hewitt polled graduates over the past two years and found that China Mobile, Alibaba and Haier have overtaken Google and P&G to become the most popular employers among graduates.
Expansion of Central SOEs Causes Concern [June 9, 2011] (emphasis is mine)
Many of China’s provincial governments have been enthusiastic about getting investments from the country’s most powerful enterprises to spur development of their local areas.
Local officials have signed agreements with companies controlled by the central government, adding up to trillions of yuan.
These mega contracts have triggered concerns among both economists and economic regulators.
At the latest signing ceremony in Beijing, representatives from Henan Province signed more than one hundred agreements with enterprises controlled by the central government. The contracts are worth some 300 billion yuan or more than 40 billion US dollars in total.
These projects involve scores of state-owned enterprises, including China Mobile, a giant in the telecom industry.
Wang Jianzhou, Chairman of the company’s Board of Directors, reveals that China Mobile’s investment in Henan will reach 20 billion yuan over the next three years.
“We are planning to install new equipment in Henan to build a call center and an internet data center.”
Shi Jichun, Deputy Governor of Henan Province, explains the motives behind the cooperation.
“Our cooperation with the state-owned enterprises can benefit local economic development in terms of upgrading our industries and introducing new economic growth patterns.”
During the past year, similar motives have driven a dozen provincial governmentsto send delegations to Beijing, where they scramble for the favor of state-owned enterprises.
So far, the total value of agreements signed between them has amounted to more than six trillion yuan.
However, Dong Yuping, an economic researcher with the Chinese Academy of Social Sciences, says he’s concerned about the negative impact of the massive expansion of state-owned enterprises.
“The state-owned enterprises have been holding sway in sectors concerning national economic security, however they still want to engage in other sectors where they compete with private enterprises. This surely puts the private operators at a disadvantage. Meanwhile, I don’t think those multi-billion agreements will necessarily bring about the intended benefits to local governments.”
The country’s top regulator of state-owned enterprises has expressed similar concerns.
Wang Yong is Chairman of the State-Owned Assets Supervision and Administration Commission.
“The companies’ cooperation with local governments should not deviate from their core businesses. They should adjust their own structures to become stronger in that area, instead of blindly expanding in size and quantity.”
Chinese enterprises are basically divided into two categories: state-owned and private. The central government directly controls more than 100 of the powerful state-owned companies. These elite enterprises control the nerve centers of the national economy, like oil industries, telecommunications and power generation.
Telecoms Carriers Put Under Anti-Corruption Review [May 27, 2011] (emphasis is mine)
Investigation teams from the party disciplinary commission were sent to China Mobile, China Unicom and China Telecom.
The government has launched an anti-corruption investigation over China’s big three state-owned telecom carriers that monopolize the industry, Caixin learnt from with several sources.
The Central Commission for Discipline Inspection of the Communist Party of China sent investigation teams each to China Mobile, China Unicom and China Telecom, targeting middle-level managerial staff and above, according to the sources.
These executives have been ordered to turn in their passports temporarily, said the sources.
Over the past year, many senior executives at China Mobile have been found to be involved in major corruption scandals, with several cases surrounding behind-the-scenes deals with the company’s service providers.
In late 2009, Zhang Chunjiang, China Mobile’s former vice chairman, was sacked and placed under investigation on allegations of corruption.
China launches probe into alleged graft at telcos [June 2, 2011]
…
The government and telecom firms have refused to comment on the investigation. But public commentary on dismissed executives at China Mobile has spread like wildfire. The investigation will last until June, during which all middle-level and above administrative staff have been asked to submit their passports.
Seven high-ranking China Mobile executives have been punished since 2009. Former Party chief and deputy general manager of China Mobile Zhang Chunjiang has been removed from his official post and expelled from the CPC for taking bribes. Shi Wanzhong, general manager of human resources at China Mobile, was detained for accepting bribes from Siemens. Lin Donghua, former deputy general manager of China Mobile’s Hubei branch, was also punished for serious corruption.
In March 2010, several regulatory authorities opened an investigation of Li Xiangdong, former general manager of China Mobile Sichuan’s wireless music base. After meeting with central government auditors to discuss his assets and the allocation of company funds, he disappeared into the night with hundreds of millions of RMB. Luckily, he was caught by police before he could flee the country.
China Mobile recently confirmed that Ma Li, deputy general manager of the company’s data division, was under investigation on suspicion of “serious disciplinary violations.” Ye Bing, former CEO of ASPire Holdings, a subsidiary of China Mobile, had also been taken away by authorities for investigation. Ye Bing was appointed as CEO of ASPire Holdings in 2008, which provides data services for China Mobile.
“Lack of efficient supervision on high-profile executives of governments and companies has led to rent seeking behavior,” said Fu Liang, an independent telecommunications analyst.
China’s Seizure of China Mobile Executive Leads to Wider Probe [June 1, 2011] (emphasis is mine)
China’s seizure of a China Mobile Ltd. executive on graft allegations in March led to a probe of more than 60 people that may involve 350 million yuan ($54 million) of “illegal money,”the official Xinhua News Agency said.
China Unicom (Hong Kong) Ltd., and China Telecom Corp., the nation’s second- and third-largest carriers after China Mobile, are included in the investigation, according to today’s Xinhua report, which didn’t say what the alleged corruption entailed.
The three operators are adjusting their business- cooperation policies “to reduce the corruption risk,” Xinhua said. The allegations come amid Chinese media reports that the government will overhaul leadership at the nation’s biggest telecommunications carriers.
The corruption probe may be an attempt to clear up any problems before new management takes over to allow them to start with a clean slate, Jim Tang, an analyst at Shenyin Wanguo Securities Co. in Shanghai, said in a phone interview today. If the investigation means China Mobile is addressing problems, it’s a good thing in the long run, he said.
Tang rates China Mobile and China Telecom “neutral,” and China Unicom “outperform.”
China Mobile gained 0.6 percent to HK$71.45 at 10:45 a.m. in Hong Kong Stock Exchange trading. The shares have dropped 7.5 percent this year, compared with a 2.7 percent advance in the benchmark Hang Seng Index. China Unicom fell 1.3 percent to HK$17.04 while China Telecom was unchanged at HK$4.66.
Executive Reshuffle
Sophia Tso, a Unicom spokeswoman, and Jacky Yung, a spokesman for China Telecom, yesterday denied reports about planned management changes at their respective companies. Tso and Yung didn’t immediately return calls today regarding the Xinhua report on the corruption probe.
Rainie Lei, a spokeswoman at China Mobile, didn’t return calls or e-mailed requests for comment on the reports about management changes.
Caijing magazine reported yesterday that Xi Guohua, vice minister at the Ministry of Industry and Information Technology, will replace Wang Jianzhou, 62, as chairman at China Mobile. China Unicom Chairman Chang Xiaobing will have his post taken by President Lu Yimin and become chairman of China Telecom Corp., while China Telecom Chairman Wang Xiaochu will become governor of Yunnan province, according to the magazine.
Zhao Yi, a spokesman for China Mobile, said he couldn’t immediately comment on today’s Xinhua report or provide contact information for Ma Li, the data department deputy manager who the official newswire reported was seized by anti-graft officials.
China Mobile’s value-added data such as mobile music services “were an essential driver of total revenue growth” last year, accounting for 31 percent of operating revenue in 2010, Chairman Wang said in March.
China Mobile said 549 million customers made use of value- added services in the first quarter of this year, and 476 million used its wireless music service. The value-added services were “the driving force” of sales growth in the first quarter, the company said in April.
On Way to Beijing, China Mobile Chief Crashes [July 16, 2010]
A financial misconduct probe at China Mobile’s Sichuan branch has shattered executive Li Hua’s promotion dream
Li Hua worked hard and waited years for the career leap that he triumphantly announced to friends at a banquet on the eve of Spring Festival.
Very soon, Li told the dinner guests earlier this year, he would be transferred from Chengdu to the telecom group’s headquarters in Beijing.
Moreover, Li said he would rise from his current job as Sichuan Province general manager and regional party secretary for China Mobile to a coveted front-office position as a group vice president.
A month later, however, a nightmare overwhelmed Li’s career dream. A subordinate named Li Xiangdong, who directed the company’s digital music and data department, grabbed company cash and fled the country after a government audit found discrepancies tied to the company’s business with a value-added service provider.
Within weeks, Communist Party investigators looking into further evidence of malfeasance at China Mobile were knocking on Li’s door. Now, no longer in line for a headquarters post, Li is being detained on charges of financial misconduct.
In addition, Li’s case may be connected to the detention by party investigators in December of executive Zhang Chunjiang, a former China Mobile vice president and the company’s national party secretary.
A source at China Mobile told Caixin that Li’s case is being handled by provincial party officials in Sichuan but directly supervised by the party’s Central Commission for Discipline Inspection, which rarely gives such close attention to provincial matters.
Caixin also learned that his most serious charges may be connected to deals with an equipment supplier. Before Li’s case was made public, the Sichuan office of China Mobile sent an internal memo stating Li had offended a powerful, well-connected equipment supplier.
“It’s quite possible that Li fell into trouble because of this” supplier issue, said a source.
Several equipment suppliers are currently assisting authorities in their investigation. But some officials from equipment companies reportedly have, like Li Xiangdong, fled China.
Li, who earlier hand-picked Li Xiangdong for a promotion, had been barred from leaving China after the disappearance on grounds that he was needed to help investigators looking into the case.
Li earlier told Caixin the disappearance was “not related to any other person” at China Mobile’s Sichuan division. Yet financial misconduct linked to the digital music and data department also apparently involves Li, who worked closely on its development with Li Xiangdong.
The company launched the moneymaking division four years ago with about 1 billion yuan. Today, its annual operating revenues exceed 22 billion yuan.
Ladder Climber
In his long quest for a promotion to headquarters, Li built a network of personal contacts so extensive that he may have seemed untouchable. He was known in the industry for being outspoken, but took a low-key approach toward the news media and shared little personal information with the public.
Li was born into a high-ranking military family in 1959 in Chengdu. Raised on a military compound, he was strong and competitive from an early age.
Li loved to read and returned to school in his 40s, earning a master’s degree in management at Sichuan University’s business management school in 2005. Two years later, he received an advanced degree from Hong Kong Polytechnic University.
Influenced by his father, Li grew up with a military disposition. He earned a reputation as a brave, loyal yet domineering company boss. Some at China Mobile liked his personality, others did not.
“Li had a rare talent as a field commander, one that I have hardly seen within the China Mobile system,” a company source said. “He had strong leadership ability, and was pragmatic and competent.”
Mid-level cadres whom Li handpicked for promotions were also often aggressive and sharp-witted – and did not fit the standard, cautious mold of a state-owned enterprise executive.
Li loves traveling, photography and fine wines. He’s known for a high alcohol tolerance and would drive a black Volkswagen Phaeton between work and his family’s luxury villa in Chengdu, which he apparently could afford thanks to what some said was an annual salary of around 2 million yuan.
Workmates called Li bossy, saying he was never satisfied with income levels from ordinary projects. “He wasn’t short of money, nor was he a greedy person. He handled matters justly, believing that if he could help you he would, and if he was unable to help he would say so,” a source said. “It wasn’t about how much money could be made, but rather whether he thought you were the right person, or whether or not he liked you.”
Li served in the army before retiring from the military in the early 1990s. He took a job at the Neijiang post office and was later transferred to a provincial post office management department, where he was appointed director.
Li later joined the newly formed Mobile Communications Bureau, which divided government and enterprise functions and established China Telecom Corp. An internal mobile communications department was created, and Li was hired to serve as director.
By the late 1990s, national telecom industry reform led to the separation of China Telecom’s mobile business operations. China Mobile’s Sichuan division was established in 1999, and Li was appointed to his current position as general manager.
Li was restless at China Mobile yet repeatedly fended off transfer orders to cities such as Shanghai and Guangzhou. Instead, he waited for a call to Beijing.
While waiting, he became a provincial magnate and held his Sichuan post longer than anyone in similar positions. Ordinarily, China Mobile transfers high-level executives every four to six years.
While avoiding transfers, Li also dodged several controversies during his tenure. Many thought he would always successfully survive hints or even accusations of misconduct.
But because of an outspoken and domineering personality “the investigation of Li Hua was both expected and unexpected,” a China Mobile source told Caixin. Many at the company thought he would “get in trouble sooner or later.”
1 yuan = 14 U.S. cents
Shutdown for a Gatekeeper of Telecom Gold [July 30, 2010] (emphasis is mine)
Connections, ‘consulting’ and art collecting helped telecom insider Zhang Rui play a profitable game before authorities moved in
Equipment and IT services that sell for hundreds of billions of yuan, advertising contracts worth billions of yuan, and huge piles of cash for value-added services and special projects: It’s all in a pot of gold at the end of China’s telecom rainbow.
Many have found the gold, from multinational equipment manufacturers such as Siemens and Ericsson to small construction companies that build infrastructure for the nation’s state-owned telecom empire.
But access to this glistening pot is restricted; only a limited number of executives at giant telecom companies, like leprechauns, know the secret way.
One of the gold gate-keepers was businessman Zhang Rui(张锐), according to investigators who have spent several months tracing corruption in China’s telecom industry. Zhang was a key industry insider who apparently helped suppliers and contractors find those gold nuggets, while pocketing quite a few for himself.
Zhang moved freely through the executive suites of China’s telecom world, giving advice to operator chiefs who called him an “industry sage” and quietly cutting deals for contractors in ways that earned him the nickname “invisible man.” Only executives at the industry’s highest echelons knew his name and his game.
Beijing art lovers, however, best knew Zhang Rui as the owner of a swank restaurant on the city’s near-east side and a collector of contemporary art.
He might have held on to his art-lover front while continuing to run his advisory business Beijing Ruizhi Telecommunications Consulting Co. Ltd. behind the scenes if not for an investigation that exposed a corruption trail leading to his desk.
The first step on the trail, numerous sources close to China Mobile told Caixin, was the sudden dismissal and detention of China Mobile Group’s former party secretary and vice president Zhang Chunjiang(张春江) in 2009. Authorities tied him to bribes worth more than 10 million yuan.
A pair of China Mobile leaders were the next to fall: the president of Sichuan Mobile, Li Hua(李华), who has been detained since June; and the president of both Sichuan Mobile’s data department and China Mobile’s wireless music operations, Li Xiangdong(李向东), who fled China earlier this year with an unknown amount of money.
Zhang and his wife, Raynetwork Advertising Co. President Yang Ruining, were recently detained by authoritieson charges that remain unclear.
In the wake of the investigations, China Mobile has launched a major personnel shuffle involving several subsidiaries. And according to a telecom industry veteran, Zhang’s trouble led to an exodus of Chinese executives working for several multinational telecom suppliers. They apparently left the country to avoid trouble.
The snowballing affairreflected the breadth and depth of the telecom industry’s spending habits, and the enormous incentive for contractors to do whatever may be needed to find that pot of gold.
“I never imagined that telecom server-room air conditioning systems and alarm systems could be so lucrative,” said one equipment supplier. “But telecom company fixed asset investment is really big, and even a small portion from the cup is still a lot.”
‘Consulting’ Fees
Opposite Workers Stadium in Beijing is a peculiar building that combines a modern steel structure with ancient ornamentation. It’s said this is a 200-year-old house that was moved from Jiangxi Province and is now the home of Le Quai, an upscale restaurant owned by Zhang.
Local officials, foreign diplomats and celebrities alike feel at home here. Over the years, Zhang has hosted a slew of high-profile events revolving around his reputation as an art collector. Some say his home is a veritable Guggenheim Museum, with nearly 1,000 works of art.
Few art fans know, however, that Zhang made his fortune in the telecom business. He got a start in Dalian in the 1990s as a representative for switchboard makers and eventually built an empire through firms offering “consultant” services to foreign companies seeking business with state-owned telecoms, advertising deals and mobile phone services.
In Dalian, he met his rainmaker and future government-business insider Zhang Chunjiang, then-deputy director of the Dalian Post and Telecommunications Administration, who later became, among other things, the youngest vice minister ever when the Ministry of Information Industries was formed in December 1999.
Zhang kept good relations with this rising star through a period of rapid growth for the nation’s telecom industry.
Since 1992, the number of fixed-line subscribers in China has increased to 1.1 billion from 10 million, while the number of mobile subscribers grew to 800 million from almost zero. Regulators and telecom operators have had to expand networks quickly and on a massive scale. Paying for all this growth required a pot of gold that equipment and service providers were eager to tap, creating enormous opportunities for insiders such as Zhang.
Foreign telecom equipment manufacturers that joined local suppliers lining up for contracts soon learned about the importance of relationships in the Chinese business world. But foreigners who found themselves caught between overseas regulatory constraints and the need to cultivate relationships signed up with Chinese agents and consultants who acted as middlemen.
Zhang signed up numerous telecom equipment and software companies who hired him as a consultant. In fact, though, authorities say he functioned as a third-party representative by transferring payments from contractors to telecom company insiders. He called the payments “consulting fees.”
What Zhang did is common in the industry, insiders say, especially when foreign companies are involved. Middlemen often enjoy close ties to telecom executives and government officials.
Zhang was “a middleman for many foreign companies,” a close associate said.
Gold Rush
Yet Zhang was more than a middleman. As his friend Zhang Chunjiang climbed his career ladder, Zhang expanded his business scope.
Zhang established Beijing Huamai Electronic Technology Co. Ltd. with registered capital of 2 million yuan in July 1995. His wife Yang Xuxia (who later changed her name to Yang Ruining) put up 800,000 yuan, and Zhang and Zhang Chunjiang’s now ex-wife Ji Rong each put up 600,000 yuan.
This became a foundation for Zhang’s other platforms, such as a company with a Hong Kong connection that made alarm systems for clients including China Telecom, China Mobile and China Unicom. But mainly these entities built relationships and shuffled documents; Caixin found only a few employees recently working at the alarm company’s office in Beijing.
Zhang established his first telecom company – Beijing Siruide Computer System Integration Co. – in 1997 and became its legal representative. The company handled computer communication network technology and project integration, but also sold telecom equipment. Huamai Electronic was a shareholder. Others were Sichuan Galaxy Technology Co. Ltd. and Sichuan businessman Li Xinze.
Apparently, one of Zhang’s first business ties to Sichuan was Li, who later worked up to Sichuan Mobile value-added and data services posts, and became a core member of the mobile phone music services provider Sichuan Mobile Music Base.
Zhang established Beijing Ruizhi in 1998, offering communications products as well as computer software and hardware. In 2001, the company invested in another outfit called Raynetwork.
Raynetwork was valuable because it held a telecommunications business license. Such a license requires approvals from multiple government departments and applications are tightly controlled by the government. Zhang sold it in 2007 for 7.2 million yuan.
These and other deals underscored the advantages Zhang enjoyed thanks to Zhang Chunjiang, who became director of MII’s Telecommunications Management Office in 1998, and other friends in high places.
Advertising Whiz
Advertising profit potential caught Zhang’s eye in 2001 after China’s telecom sector had completed its first reform step, which separated companies from government administrations. Telecom operators began to spend more money on image promotion, for example, and so Zhang and his wife set up Beijing Raynet Advertising.
In the first year, the ad company’s sales topped 14.7 million yuan thanks to big clients such as China Mobile and Sanyo. By 2002, revenues had soared to 56.4 million yuan.
The agency won a national contract from China Netcom in 2004, the year after Zhang Chunjiang took a job as Netcom’s president.
By 2007, Raynet had expanded its client base to provincial departments of telecom operators in Shanghai, Liaoning, Changchun, and other regions. Money poured in.“After getting the Netcom project, we basically didn’t need to do ads for other telecom companies,” a Raynet executive told Caixin.
“A single provincial telecom can support a large advertising company, which can live well,” said a former provincial director of a mobile advertising agency.
A senior advertising source said it’s not uncommon for telecom executives to invest in advertising and advertising production companies, some of which can be half-owned by a telecom company chief or his family. Because production companies have no equity links to advertising companies, it’s difficult to trace the ownership links. They are also less risky than under-the-table gift-giving.
“Everyone avoids directly giving ‘red envelopes’ (cash payoffs),” said one industry insider. “Travel packages, Louis Vuitton bags, jewelry, etc., are too low brow.”Raynet’s performance opened a door to cooperation with the global ad giant Ogilvy & Mather. The companies established a joint venture in 2007, with Zhang’s wife serving as legal representative.
Sichuan Trio
Another moneymaking venture for Zhang started in 2003, when he and Li each put up 250,000 yuan to establish We Think, a telecom technology company based in Sichuan. Its downtown Chengdu headquarters opened two years later.
The plan was to grab some of the gold available in value-added services (VAS), which had become the fastest-growing sector for the country’s major telecom operators. A rapid increase in mobile phone and Internet users gave birth to an army of VAS providers.
First came text message services, and then mobile music services through places such as China Mobile’s Mobile Music Base in Sichuan. Again, revenues surged.
China Mobile elevated the successful Sichuan Mobile’s music business, giving it oversight of the company’s nationwide music business. Numerous wireless VAS providers like We Think sprang up, and a Caixin survey found several names appeared frequently in the list of these companies’ shareholders: Zhang, Li and Tan Chunling.
Sichuan Mobile became We Think’s largest customer, but the Zhang-Li venture also did plenty of business with Sichuan Telecom.
We Think increased its capitalization to 5 million yuan in October 2004, with Zhang and Li increasing their share of the capitalization to 2.25 million yuan each through non-patented technology. The phrase “non-patented technology” refers to a mobile operator data service analysis system developed by the pair called Comprehensive Evaluation System for the Operational Strength of Mobile Operators.
Zhang and Li’s said the system’s sales revenues would rise to 6 million yuan the first year, 12 million yuan the second, and then climb to 20 million yuan, 26 million yuan and 30 million yuan respectively over the following three years. This forecast allowed them to assess intangible assets of their technology at 4.51 million yuan.
Similar technology assessments-for-investments are described in documents at other companies run by Zhang.
Service and content providers who wanted business on China Mobile’s network platform had to go through the Sichuan Mobile Data Department and Mobile Music Base. We Think waltzed through the door through Zhang’s connections at Sichuan Mobile.
Annual operating revenue rose to tens of millions of yuan by 2005, and in 2007 We Think reported 72.4 million yuan in revenue and net income totaling 27.1 million yuan.
These days, We Think has lost its sheen. Unpaid bills were found recently taped to the company’s Beijing office gate, which is shut tight. Caixin noticed Zhang’s name on one bill.
Another company registered at the address of We Think’s Sichuan branch – Sichuan Heze Technology Co. Ltd. – is in the business of communications equipment consulting and equipment sales. Established in 2004, investors included Zhang, Li and Tan.
Tan was originally a director at Sichuan Television. He later opened an advertising company whose major clients were Sichuan Mobile and other telecom operators. Li and he were the shareholders.
Tan’s main gig was an independent digital music support platform company for the Sichuan Mobile Music Base called Myoo Music Entertainment. He started it in 2005 and, with Li, bought the company in 2007 just as Sichuan Mobile Music Base was starting to provide mobile music services.
Myoo is currently near to launching an initial public offering on China’s Growth Enterprise Market. It’s already completed two rounds of fund-raising.
Wang Feng, an executive at Bond Advertising, said he invested more than 10 million yuan in Myoo. But the recent shakeup in the telecom world, the detention of Zhang, and the exposures of shady business ties linking Tan, Li and others has left him feeling uneasy about the investment.
Wang has good reason to be nervous. It appears the listing plan of Sichuan Mobile Music Base’s most important service provider Myoo now hinges on the outcome of the cases against Zhang and the rest of the telecom insiders who found a way to the pot at the end of the rainbow.
1 yuan = 14 U.S. cents
China’s Bad Signal for Mobile Phone Investors [May 26, 2011]
Myoo, Ultrapower and NetQin won investor hearts and then broke them by relying on China Mobile’s monopoly
Some 18 months after putting 10 million yuan on what appeared to be a sure bet, Chinese media investor Wang Feng is coming to terms with a disturbing truth.
“We still cannot get our money back,” lamented Wang, chairman of Bond Global International Media Advertising (Beijing) Co., in a recent interview with Caixin. “The assets of Myoo Music Entertainment Co. are all frozen, and there’s nothing we can do.”
Nothing, that is, except painfully watch China’s largest mobile phone operator China Mobile seal Myoo’s coffin in the wake of an executive corruption scandal.
Moreover, Caixin learned from sources close to China Mobile’s Sichuan Province subsidiary, Wang is now standing by helplessly as the telecom giant switches its music content business to a new provider named China Straits Global.
China Straits replaced Myoo in late April as China Mobile’s official and sole provider of music, hollowing out Wang’s investment.
The demise of Chengdu-based Myoo was dramatic and unexpected. The company looked good when it launched a start-up fund-raiser in 2009, attracting Wang and others with a promise to corner the mobile phone-wireless music market through an exclusive deal with China Mobile. It planned to launch an initial public offering in 2010, giving foundation investors a chance to cash in their chips.
Persons close to Myoo told Caixin the company booked 80 million yuan in revenues and 50 million yuan in profits for the first nine months of 2009. Revenues and profits were forecast to rise to 100 million and 60 million yuan, respectively, for 2010.
The dream started falling apart in mid-2010, however, shortly after Li Hua, former general manager of manager of China Mobile’s Sichuan branch, was placed under investigation for alleged financial misconduct. That move followed the disappearance in March of Li Xiangdong, then the general manager of China Mobile’s Sichuan Mobile Wireless Music Base, who apparently fled the country with a sizeable amount of money and is currently at large.
The investment in Myoo was a fraction of the large amount of private money that’s been rushing into the telecom industry in China in recent years. Even today the players keep coming, despite the industry’s status as a state-owned sector monopolized by state companies such as China Mobile.
Neither the Myoo investment debacle nor business troubles now facing China Mobile contractors Ultrapower and NetQin curtailed investor interest in telecom businesses. But these cases are now serving as a wake-up call for players such as Wang, and a reminder that business foundations can be fragile for second-tier telecom service providers in China.
By teaming up with a state monopoly and massaging official connections, a private telecom service provider initially may find it easy to overcome technical and policy barriers for doing business. But success often hinges on orders from companies at the mercy of ever-changing government policies and subject to fallout when management troubles, such as a corruption case involving a high-ranking executive, bubble to the surface.
Death by Scandal
The troubles in Sichuan followed the late 2009 sacking of Zhang Chunjiang, China Mobile’s vice chairman, who had been placed under investigation for alleged corruption.
These high-profile corruption cases at China Mobile laid the groundwork for Li Yue’s appointment as China Mobile CEO last August and a broad reshuffling among executives at provincial branches. Li Yue’s predecessor Wang Jianzhou gave up the CEO job but retained his post as company chairman.
Li Yue adopted a strong stance with promises to reform business models of the company’s value-added services. These measures are designed to restructure internal and external interests. But the process has threatened a large number of “related parties” – sometimes called “parasites” – that cannot live without China Mobile.
Just a few months before the Sichuan executive scandal broke, Wang decided to put his money on Myoo. He made the decision after reading an investment report issued by CITIC Securities, whose direct investment arm Gold Stone Investment Ltd. had also joined in financing Myoo.
In December 2009, Myoo hired a broker, accountants and a legal team to help steer the company toward a listing on the Shenzhen exchange’s high-tech start-up board ChiNext by 2010.
Myoo’s equity capital started at 1 million yuan and quickly swelled to 46 million yuan after two financing rounds. The company attracted support from more than 20 individual and four institutional investors.
Some investors, such as Wang, were lured by Myoo’s growth prospects outlined in the CITIC report and impressive financials. Others had various inside connections to the new company.
Sources close to Myoo Chairman Tan Chunling said more than 10 players in the first round claimed special connections with the company and even “deep government” ties.
Myoo had fewer than 70 people on its payroll but an exclusive contract to support China Mobile’s Sichuan-based wireless music base, which generates tens of billions of yuan in revenue every year.
Moreover, the company had a monopoly. Like other well-connected service providers in China’s state-dominated sector, it enjoyed an exclusive sales channel and stable cash flow. Plus, its growth potential seemed immense.
One source said the investor group included some Myoo backers whose unique connections or official backgrounds offered the company special advantages.
After the corruption probe started, however, Myoo lost its contract with China Mobile. Sources close to Sichuan Mobile said Myoo’s Tan visited Beijing in July 2010 in hopes of salvaging the deal with China Mobile.But Tan was unsuccessful. And he was later implicated after telling police he gave Li access to a 2 million yuan bank account. He later discovered that the balance had ballooned to 20 million yuan. Myoo’s accounts were subsequently frozen by authorities.
Risky Business
The dangers inherent for investors in monopoly-related service providers such as Myoo are also evident in the recent histories of China Mobile contractors Beijing Ultrapower Software and NetQin Mobile Inc.
Ultrapower and NetQin were both successfully listed. Both companies are now on the rocks, along with their start-up investors.
Ultrapower operates China’s Mobile’s Fetion instant messaging service, which links mobile phones and computers on the Internet. It’s almost exclusively dependant on the telecom giant.
Ultrapower’s foundation investors included CITIC Securities’ Gold Stone and venture capital firm Huijin Lifang Capital Investment Co., which bought respective 2.2 percent and 2.8 percent stakes five months before the 2009 IPO. They paid only 20 percent of the IPO launch price of 58 yuan a share.
Just before the listing, China Mobile extended its contract with Ultrapower to three years, encouraging investors. And within four months of going to the stock market, Ultrapower’s share price surged 500 percent.
Then came the corruption scandal and China Mobile’s decision to reorganize value-added services. In connection with the ongoing overhaul, the company may decide to let its Fetion contract with Ultrapower run out when the current deal expires in November.
Ultrapower’s future is now uncertain, since it does not own the Fetion brand nor the intellectual property rights. Investment funds have been pulling out of Ultrapower since the first quarter, and its share price has declined nearly 20 percent so far this year.
NetQin is also heavily reliant on China Mobile, having signed a contract in 2010 to provide security scanning and authentication for all software, games and files uploaded to China Mobile’s application store.
Caixin found that while NetQin’s prospectus says most revenue comes from mobile carriers and value-added service providers, including China Mobile and Tianjin Yidatong Technology Development Co. But China Mobile is by far the biggest moneymaker.
Yidatong accounted for 52.7 percent of NetQin’s net revenues in 2008, but that portion shrank to no more than 21 percent in 2009 and 2010. In fact, 9-year-old Yidatong merely functions as a bridge between China Mobile and NetQin.
But investors loved NetQin and participated in four rounds of financing between 2007 and 2010. Sequoia Capital and GSR Ventures jointly invested US$ 3 million in June 2007. Ceyuan Ventures and Fidelity Asia Venture added undisclosed amounts in October 2007, while GSR and Ceyuan invested a combined US$ 20 million in April 2010. NetQin increased its stock in November 2010, attracting Taiwanese mobile phone maker HTC Corp., which invested US$ 2.5 million, and Gaintech, a subsidiary of Taiwanese chip maker MediaTek, which provided US$ 2.2 million.
Investors knew all about NetQin’s inside connections. The company made no secret of its being favored by “leaders” and “revolutionary predecessors.”
A NetQin press release last November announced a company visit by General Zhou Erjun, a nephew of the late premier Zhou Enlai and former political department director at the National Defense University. The company called itself “a revolutionary offspring” and “a new generation of technology worker that grew up under the red flag.”
NetQin’s walls started collapsing March 15, a day before the company planned to submit its IPO application, when the official China Central Television (CCTV) reported that the company was forcing consumers to use its software. The report labeled company products “rogue software.” And according to the report, consumers were being forced to pay service charges through Yidatong.
After the CCTV story appeared, China Mobile temporarily suspended its business with NetQin, but it did not penalize Yidatong.
NetQin then submitted its New York Stock Exchange IPO application to the U.S. Securities and Exchange Commission (SEC) as planned but lowered its asking price, scaling back the fund-raiser to US$ 75 million from US$ 100 million.
NetQin expanded its SEC report April 9 to cite risks tied to the CCTV exposure, adding that the company should reduce its reliance on mobile carriers such as China Mobile.
On launch day May 5, NetQin’s share value fell 19 percent from the initial asking price, exposing another dimension to the risks inherent among China Mobile’s contractors and across the board for monopoly sectors in China.
China Mobile names new manager [May 31, 2010]
China’s biggest mobile carrier China Mobile announced Monday that Wang Jianzhou, the current general manager of China Mobile has been nominated chairman of the firm, and Li Yue, the deputy manager of the company will be appointed as the general manager of the corporation.
Wang used to be the deputy secretary of CPC leadership group of China Mobile.
At the request of the State Assets Supervision and Administration Commission (SASAC), the firm will set up a board of directors with a chairman and general managers.
Wang said that the firm has made great achievements in the past years, but faces many challenges ahead. Li stated that the development of the internet would bring new opportunities for the firm and it will strive for more.
Ericsson Employee Probed for China Mobile Scandal [Nov 18, 2010] (emphasis is mine)
The probe is related to corruption charges surrounding two high-ranking executives from China Mobile over telecom equipment procurement
(Beijing) – An equipment procurement officer from Ericsson, the international mobile equipment supplier, was brought in for questioning to assist in the investigation of the ongoing China Mobile scandal in Southern China.
The investigation is related to corruption charges surrounding two high-ranking executives of China Mobile’s Sichuan branches who stand accused of accepting bribes in exchange for equipment deals. Li Hua, the general manager of China Mobile’s Sichuan branch, and Chen Binglan, the deputy general manager of China Mobile’s Sichuan branch responsible for equipment and project procurement, have been placed under custody of the party’s disciplinary agency.
Caixin learned from sources close to the situation that just after the corruption case of Li was exposed, the focus of investigation has since moved to Chen.
China’s telecom industry has seen a huge expansion of networks in recent years and equipment procurement deals have become a hotbed for corruption. Since the 1990s, fixed line telephone subscribers have increased from 10 million to 1.1 billion, and mobile phone subscribers grew to 800 million from zero. The huge volumes involved in telecom equipment purchases and related services have become an important source for global equipment suppliers to grow their profits.
Equipment suppliers from different countries have employed strikingly creative tactics to grab a bigger share of the pie.
Previously, the corruption case of Shi Wanzhong, former chairman of China Mobile’s Anhui branch, this year brought to light the involvement of Siemens Telecommunication. (See Century Weekly’s cover story of “Shutdown for a Gatekeeper of Telecom Gold” in the 30th issue for details. http://english.caing.com/2010-07-30/100165466.html)
Another person detained for investigation by related authorities was Shen Changfu, the Party chief, chairman and general manager of China Mobile’s Chongqing branch, for his dealings in equipment procurement from foreign suppliers, including Ericsson.
Similar to the career path of Li Hua in the telecom sector, Shen Changfu was formerly the director of Chongqing Telecom Administration, and later in charge of China Mobile’s Chongqing branch when the company was founded along with reforms in the telecom sector.
Both Sichuan and Chongqing are important regions for Ericsson’s presence in China. In 2004, Ericsson established its Western China headquarters in Chengdu. Ericsson had four regional units in China at the time: the Northern region, the Southern region, the Central regions and the newly-established Western region. The Western region of Ericsson China covers markets in Sichuan, Chongqing, Yunnan, Guizhou and Tibet. The company has on several occasions reiterated Ericsson’s strategic development in Sichuan, saying that it is one of the most vigorous telecom markets in China. The company is counting on the central government’s active support of infrastructure development in Western regions for greater demand in telecoms platform building.
Chongqing is yet another important base for Ericsson. Founded in 1998, Chongqing Ericsson Technology Co., Ltd. is the sole subsidiary of Ericsson in Western China, providing professional telecom services, primarily responsible for the delivery of telecom services and technical training to operator customers of Ericsson in China’s Southwestern areas. In 2006, a center for supply, procurement and telecom services was opened by the subsidiary in Chongqing, offering procurement, integration and backup services to Ericsson China and its global products.
Although Ericsson has remained the No. 1 telecom equipment provider in the global market for quite some time, its performance has disappointed many this year. As revealed in its third quarter financial report in October, net sales were SEK 47.5 billion, up 2 percent year-on-year but down 1 percent from quarter-on-quarter. In the first nine months of this year, Ericsson reported total sales of SEK 140.6 billion, down 5 percent year-on-year, and an operating income of SEK 16.1 billion, down 6 percent year-on-year. Its profit margin this quarter was 39 percent, up three percent year-on-year.
In contrast to the fast growth of Chinese equipment manufacturers such as Huawei and ZTE, Ericsson, as one of the global telecom giants entering the market of China at an early stage, has been relegated to daily diminishing market presence in China. Ericsson ranked next to last place among all the suppliers in terms of successful bidding during the fourth round of TD-SCDMA bidding this year.
Former Telecom Executive to Face Charges [Jan 7, 2011] (emphasis is mine)
China Mobile’s former deputy manager and party secretary will be handed over to judicial authorities now that the almost year-long party disciplinary investigation has been completed
(Beijing) — A former executive of China’s largest telecom operator, China Mobile, may face official charges after the completion of a Communist Party investigation, according to Gan Yisheng, deputy secretary of the Central Commission Discipline Inspection (CCDI).
The case of Zhang Chujiang, China Mobile’s former deputy manager and party secretary, has been handed to the country’s judicial system by the party’s disciplinary agency to be formally charged, said Gan.
Caixin learned that a provincial prosecutor in Northern China will process Zhang’s case of alleged corruption.
The Party investigation into 52-year old Zhang’s dealings at China Mobile was launched in December 2009. On September 10, 2010, Zhang was expelled from his position and the Communist Party of China.
Zhang has spent most of his career in the telecom industry at China Mobile and China Netcom. In addition, he has worked for the central government and at one point held the position of vice minister at the Ministry of Industry and Information Technology.
After the Party investigation opened into Zhang early last year, several other officials at China Mobile’s Sichuan branch were implicated in similar allegations of official wrongdoing. Li Hua, president of Sichuan Mobile and Li Xiangdong, head of China Mobile’s wireless music operations, as well as a procurement officer from global mobile equipment provider Ericsson was also found to be involved in the crimes.
Sources familiar with the situation told Caixin that the investigation headed by the CCDI has come to a close.
Chief Engineer of MIIT Under Probe [March 24, 2011]
An industry insider said the case may be linked to the China Mobile corruption scandal
(Beijing) — Su Jinsheng, chief engineer of the Ministry of Industry and Information Technology (MIIT), is under investigation on alleged disciplinary violations, Caixin has learned from sources close to the situation.
A source familiar with the matter said Su had been absent from work since he was taken away for questioning by disciplinary authorities.
The exact cause of his detention has yet to be revealed. An industry observer said Su is suspected of involvement in China Mobile’s corruption scandal, currently under investigation by the Communist Party’s disciplinary agency.
An initial probe into China Mobile brought down a group of China Mobile’s high-level officials on corruption charges last year, including Li Hua, the general manager of China Mobile’s Sichuan branch, and Chen Binglan, the deputy general manager of China Mobile’s Sichuan branch. The investigation has yet to be concluded.
Su was named the chief engineer of MIIT in April 2009. He was also the director of MIIT’s Telecommunication Management Bureau, and the director general of the Telecommunications Administration Bureau of the Ministry of Information Technology. In June 1999, he was appointed temporary Communist Party secretary and the head of a working team in charge of preparation work for establishing the China Mobile Communications Corporation.
Su made his last public appearance on March 16 when he attended an industry conference in Beijing.
Wrong Key Fumble for China Mobile in Pakistan [May 23, 2011]
Last place among Pakistani carriers was not what China Mobile expected when it started a global expansion
Ramble around Islamabad and you’ll find the word Zong plastered on walls everywhere, and prominently displayed on signboards near the city’s most popular Chinese restaurants.
But Islamabad’s familiarity with Zong, the brand name for China Mobile Ltd.’s overseas operations, need not be interpreted as a sign of success for the Chinese mobile phone service in this crowded capital city, or anywhere else in Pakistan.
China Mobile has been struggling to build a Pakistani business since buying the domestic carrier Paktel, today known as CMPak and the brand name Zong, in early 2007 – four years after Pakistan opened its telecom market to international competition.
The acquisition marked a proud beginning for the Chinese carrier’s global expansion, which continues today. China Mobile paid US$ 560 million for what was then Pakistan’s fifth-largest mobile operator.
But today, Zong is still in fifth place – at the bottom of the heap among mobile carriers in Pakistan, where the mobile phone penetration rate has stabilized at about 60 percent.
Zong’s user base has increased from less than 1.5 million in 2007 to 6.92 million by the end of 2009, but its major competitors have picked up far more customers, according to the Pakistan Telecom Administration (PTA).
Among the 97.6 million Pakistanis with mobile phones in 2009, PTA says nearly one-third were serviced by Mobilink, a subsidiary of Egypt’s Orascom. The Pakistani subsidiary of Norway’s Telenor counted 22.5 million customers, while Warid Telecom had 18.8 million users and Ufone 18.5 million.
Neither is Zong getting the kinds of revenues enjoyed by its competitors. Among all carriers, PTA says, average revenues per user are about US$ 2.50 per month. But a Zong user generates only an average US$ 1.50 for the Chinese company.
Because Pakistan and China are political allies, Zong’s struggle has been particularly painful for China Mobile, the world’s largest wireless service in terms of subscribers.
“If we cannot succeed in Pakistan, we’d better not go anywhere else” outside China, the company’s Chairman Wang Jianzhou declared after the Paktel acquisition.
Door Knocking
PTA data obtained by Caixin says Pakistan’s mobile phone user coverage rate was only around 8 percent in 2004 and 22 percent the next year. China Mobile bought into the market when the coverage rate had reached 54 percent. The rate continued growing rapidly as the Chinese company settled into its new territory and, in 2008, launched the Zong brand.
By the time Zong arrived, its four competitors had already secured market positions, and the coverage growth rate had slowed considerably.
China Mobile first knocked on Pakistan’s door in 2005, after the Pakistani government offered to sell a 26 percent stake in Ufone, a subsidiary of Pakistan Telecommunication Co., to the highest foreign bidder.
China Mobile was one of 13 international players that participated in the auction, but lost with an offer of US$ 1.4 billion. The winner was Etisalat of the United Arab Emirates, which paid US$ 2.6 billion.
Afterward, Wang said he had no regrets. “Market pressure would have been too great had we offered a price that was too high,” he said.
Nevertheless, Ufone’s strong performance in the following years brought Etisalat satisfactory returns. According to PTA, Ufone’s subscriber list has grown nearly 11-fold since 2004, stabilizing at around 20 million in 2010.
Negotiations with Nasdaq-listed operator Millicom gave China Mobile another opportunity in 2006. The Luxembourg-based company then had about 10 million subscribers in 16 emerging countries in Latin America, Africa and Asia, including Pakistan.
And at the time, Paktel was a Millicom subsidiary – as well as the worst performer in the multinational’s portfolio.
China Mobile hired China International Capital Corp. (CICC), China’s largest investment bank, as a financial advisor to prepare a bid for Millicom in collaboration with Bain Capital, a private equity firm.
The deal was close to signing, a source told Caixin, and Millicom’s market capitalization was around US$ 5.6 billion when CICC suggested China Mobile offer US$ 4 billion. The advisor had valued the Paktel portion of the company at zero.
The Chinese eventually abandoned the Millicom deal due to concerns about political risks in emerging countries and potential management issues. But in the end, China Mobile got Paktel.
More recently, minus Paktel, the market capitalization of Millicom has risen as high as US$ 15 billion.
China Mobile tried to open the Pakistani market door with the same key that worked in China. But the key didn’t fit because each market functions under a different regulatory framework, with a different business environment.
For example, China’s telecom market is monopolized by state-owned China Mobile and two other carriers, while Pakistan’s market is open to price-cutting competition.
A PTA report said the Pakistani mobile industry generated US$ 2.8 billion in total revenues in the 2009-2010 fiscal year, up 11 percent from a year earlier, even though tariffs decreased up to 20 percent.
Pakistan is also one of the few countries that heavily taxes telecom operators. And Pakistani mobile phone subscribers are typically price-oriented, say industry experts, with a habit of chatting on the phone for long periods of time.
Another difference is that mobile phone numbers are freely transferable in Pakistan, allowing customers to switch service providers at will. So if Zong tries to raise prices, its subscribers are likely to leave for another operator with a better tariff.
This business environment means user coverage rates are crucial for operator profits in Pakistan, and so far Zong’s rate has fallen far behind its rivals.
China Mobile tried to win more Pakistani customers by applying a rural market strategy that succeeded in China. It was Wang who had won China Mobile a huge rural customer base starting in 2004 – a move that’s underpinned the company’s high growth rate for years since.
But the strategy failed in Pakistan, partly because rural land needed for telecom bases and equipment is not cheap. Rural property in China, on the other hand, costs far less than urban parcels. In addition, carrier network operations and maintenance have been impeded by weak infrastructure in Pakistan, especially in rural areas.
China Mobile’s lackluster performance in Pakistan can also be attributed to human resources. An investment banker familiar with the company told Caixin that China Mobile executives rejected the advice to retain a Pakistani management team after buying Paktel, and instead dispatched a team of Chinese managers to oversee operations and control critical areas such as human resources and finance.
“The first batch of people sent to Pakistan came from domestic provincial branches of China Mobile,” the banker said. “They did not have good language skills, and therefore encountered serious communication problems.”
China Mobile gradually withdrew its Chinese managerial staff starting in 2009 and switched to a localized approach. The Zong marketing staff, whose job includes overseeing an army of signboards in Islamabad, is now entirely Pakistani.
Another Try for Telecom-Broadcast Reform [March 11, 2011]
Last year’s plan to integrate the nation’s telecom and broadcast operations is dead, but the reform push is still alive
A plan to integrate China’s media networks ground to a halt last year as broadcasters and telecom operators failed to settle their differences.
This year, however, a fresh start may be coming soon as policymakers get involved with new efforts to integrate operations, particularly broadband Internet, through top-down restructuring orders.
Ministry of Industry and Information Technology (MITT) chief Miao Wei recently declared the pilot integration plan will not expand this year, telling legislators at the National People’s Congress and the Chinese People’s Political Consultative Conference sessions that an ambitious project aimed at blending networks had breathed its last.
A source told Caixin that each of 12 cities and provinces involved in the pilot project’s initial stage last year later submitted detailed plans to the central government to push forward the integration. But none received a reply, thus underscoring the government’s interest in trying a fresh approach.
In another signal that the government wants to move forward, Caixin learned MITT recently urged telecom operators to explore possibilities for a new round of restructuring.
That call was followed by a plan floated by telecom operators to break up the nation’s largest mobile phone company, China Mobile, and divide its assets between two telecoms – mobile provider China Unicom and landline giant China Telecom – as well as the nation’s broadcasters.
In a March 7 interview, China Mobile Chairman Wang Jianzhou told Caixin he’s heard the arguments for a new round of telecom reshuffle. But Wang called the idea impractical. And MITT officials denied the existence of a breakup plan.
The nation’s telecoms had strongly opposed an earlier plan to shift some telecom responsibilities to broadcasters floated by the Chinese Academy of Social Sciences. It called for transferring all 100,000 Internet data facilities run by China Telecom and China Unicom – facilities which see annual revenue at about 6 billion yuan – to cable television companies operating under a proposed, new National Broadcasting Television Network Co.
Broadband Battle
This proposed national broadcast company would operate a broadband cable network supervised by the State Administration of Radio Film and Television (SARFT). That’s because to many in broadcasting industry, broadband issues pose the greatest barrier to telecom-broadcast integration.
China Telecom and China Unicom currently dominate China’s Internet services by providing broadband networks, the international access, data centers and content flow.
The government lets broadcasters and telecoms alike operate broadband services, and it’s given broadcasters certain advantages. But only telecoms offer international broadband access and intra-network settlement.?
Broadcasters argue that relaxing the telecoms’ monopoly grip on Internet broadband should be a first step toward network integration.
Under the academy of sciences plan, China Telecom and China Unicom would appraise the values of their data center businesses before breaking them up to hand over to the National Broadcasting Television Network Co.. The proposed network company would be responsible for operating and servicing all content on the Internet and TV in China.
Under the plan, MITT would focuses on regulating telecom operations and competition among the country’s three operators – China Telecom, China Unicom and China Mobile. And the operators would be responsible for building and operating the broadband and Internet access networks.
Meanwhile, SARFT would become responsible for monitoring broadband media content and issuing permits for operating, monitoring and managing the broadband market.
Among those objecting to the plan is Kan Kaili, a professor at Beijing University of Posts and Telecommunications, who argues that network and business operations must be separated in a way that breaks up the monopoly in broadband market. He said any restructuring that creates a larger company with a vertically integrated monopoly would make a bad situation even worse.
Yang Peifang, a telecom expert from the MITT, also opposes the academy’s plan. He said broadband woes are mainly a business problem that would not be resolved through a new administrative monopoly. Yang said service businesses should be developed to encourage orderly competition and make the communications market more profitable.
The central government has long supported giving SARFT responsibility for an integrated broadcast-telecom platform, but telecoms consistently objected.
Luo Mingwei, an official with China Telecom’s Department of Regulatory Affairs, recently wrote in an article for the industry publication People’s Posts and Telecommunications News that the plan to “centralize broadcast and control rights under the broadcasting sector” triggered concerns among network operators. These concerns centered on “whether market operation and industry development is moving toward the market, or rather toward a model integrating politics and business,” he wrote.
Luo’s article underscored the argument that any telecom-broadcast reform will require clearly separating politics and business, and building an industry regulation model that satisfies market needs as well as supports national security.
Yang told Caixin a current priority should be to build and coordinate a regulatory body that oversees broadcasting and telecom management. The next reform moves should create “a complex system that cannot be simplified,” he said.
“It’s hoped that this reform can follow more technological and economic principles, and refer more often to opinions from industry experts,” Yang said.
China Mobile, SPDB Join Hands in Mobile Payment [Nov 26, 2010]
The size of the mobile payment market in 2010 will reach 2.84 billion yuan, while customers are expected to hit 150 million
(Beijing) — Shanghai Pudong Development Bank (SPDB) and China Mobile Ltd. announced a strategic partnership on November 25 in which the two will jointly develop financial services through mobile phones.
According to Wang Jianzhou, chairman of China Mobile, the mobile carrier’s equity investment in SPDB was completed in October. China Mobile now holds a 20 percent stake in SPDB.
Xue Jianhua, general manager of SPDB’s electronics department, said that the biggest obstacle for China’s electronic payment services market is the lack of technological and regulatory standards. Backed by the partnership, the two will try to push forward a national standard for mobile payments for mainstream use.
According to Xue, China Mobile and SPDB will launch new products or services under the partnership as early as the second quarter next year.
In 2009, China’s mobile payment market was valued at 1.97 billion yuan with 82.5 million customers. According to consulting group iResearch, the size of the mobile payment market in 2010 will reach 2.84 billion yuan, while customers are expected to hit 150 million.
Xue said that the two will also jointly explore more business cooperation opportunities related to ATM machines and other payment terminals.
How Jack Ma’s Mistake Damaged China’s Market [June 14, 2011]
By secretly transferring Alipay, the Alibaba founder violated contract rights that China should reinforce
Business contract principles and property rights together form a basic cornerstone of the market economy. But contract violations can crack the cornerstone and undermine an entire market structure.
Few people ever thought China’s Jack Ma, the highly successful Internet entrepreneur who frequents international events speaking fluent English, would ever secretly transfer the online payment service Alipay, a core asset of Chinese-foreign joint venture Alibaba Group, to a private firm he controls.
But Ma and his management team, an Alibaba minority shareholder, did indeed transfer Alipay starting in June 2009 and closed the deal in August 2010. A low price was paid, and the process went unreported until recently.
In the face of this outcome, Alibaba’s foreign stakeholders Yahoo and Softbank have two options: They can sit down at the negotiation table with Ma and work out a compensation package, or they can pursue a legal course by suing Ma and his management for maliciously infringing on shareholder interests, and hopefully bring Alipay back to the Alibaba fold.
Yahoo and Softbank together control 70 percent of Alibaba. Currently, Yahoo wants to bargain for compensation while Softbank has refused to talk with Ma, leaving room for maneuvering.
No one knows what will happen next, but public opinion has already rendered judgment. We agree with the majority who say Ma is wrong. He made a mistake by violating contract principles that support the market economy, and his error is having dire consequences.
Ma founded Alibaba and took most of the credit for Alipay’s commercial success. He has every reason to be fully committed to and concerned about the company’s future outlook. And he is well qualified to benefit from Alibaba’s growth.
However, by acting without the consent of Alibaba’s leading shareholders, Ma was presumptuous to transfer the company’s core asset to a concern under his name, for a price too low to be fair. He seriously violated a contract between Alibaba’s shareholders, and the contract between shareholders and management.
Yahoo and Softbank lost a valuable asset. Yahoo’s share price slumped as a result, and now the company faces a class-action lawsuit filed by U.S. shareholders. Unless there was some other kind of agreement that hasn’t been revealed, also seriously damaged were the interests of other members of the managerial staff with stakes in Alibaba.
The ostensible beneficiaries of the transfer were Ma and another Alibaba founding member, Xie Shihuang. Ma owns 80 percent and Xie 20 percent of the private firm that took over Alipay.
Even if Yahoo, Softbank and Ma work out a compensation agreement that’s approved by Alibaba’s board of directors, a basic fact cannot be denied: Management led by Ma took unilateral action and violated a basic principle of commercial society by failing to abide by a contract.
A contract requires credibility and integrity. A violation leads to imbalance and weakens an enterprise. So Ma is paying a heavy price: The international business reputation that he has been building for years has been tarnished, and prospects for Alibaba’s long-term growth have been diminished.
The damage does do not stop there. In economic terms, the move points to a great “negative externality.” If contracts are not respected, an entire society could face an increase in commercial risk that unnecessarily drives up business costs.
Honoring contracts is often a weakness for Chinese companies. It’s not uncommon for insiders to re-appropriate assets. But this old black eye becomes even more pronounced when it involves someone like Ma, an internationally respected figure who’s seen as a representative of Chinese entrepreneurship and, as the Alibaba chief, a success story China can be proud of.
The Alipay transfer at a discount likewise delivered a direct blow to overseas investor confidence in Chinese companies, sapping their trust. That may explain why many who once loved Ma and pinned their hopes on him now feel so much regret.
Of course, Ma’s mistake is not simply a matter of personal integrity. He is an entrepreneur with good credit, as his track record proves. And one reason why he went against contract principles on the Alipay issue is connected to the hesitancy of regulators at the People’s Bank of China.
The central bank for years delayed a regulatory decision on licensing third-party payments businesses such as Alipay. The vague process reflected a less-than-open-minded attitude toward foreign investors in third-party payment operations.
The central bank started soliciting opinions on proposed rules for third-party payment systems back in 2005. In the regulations finally enacted in June 2010, the central bank said foreign-funded third-party operators would have to follow special rules to access the Chinese market and would need State Council approval.
Yet at this point, China can and should open its third-party payment services to foreign investors. It’s unnecessarily complicated to make Chinese and foreign companies follow different sets of rules. So it is regretful that the Alipay transfer by Ma was not only an unwise move but motivated by unwise policy.
Contract fulfillment hinges on a complete institutional arrangement. The planned economy unfortunately disrupted China’s long-standing commercial traditions. Even today, we are still traveling a long, arduous road to build a market economy. In the next stretch, we should create a system in which independent mediators, arbitrators or a judicial force can be summoned to settle contract disputes. Such a legal system is needed to support the market economy. Currently, if Softbank or Yahoo sue Ma in China, the impartiality of Chinese judicial officials would be tested.
The Jack Ma success story is perhaps more famous in today’s China than the original Arabian Nights story of Alibaba. We hope that eventually Ma’s tale has a happy ending. We also hope to see more wealth stories for Chinese companies.
But this is no fairytale scene. There is a real need to uphold the spirit of contractual agreements with honor and integrity, and thus reinforce a solid market economy in China. Reaching this goal has much to do with the future of China’s vibrant commercial system.
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that
Follow-up: – Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011]
See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks
China Mobile to accelerate TD-LTE commercialization [June 10, 2011] (emphasis is mine)
China Mobile reportedly has decided to accelerate its investment in TD-LTE technology aiming to push the commercialization of TD-LTE networks one year ahead of its original schedule, according to industry sources.
The affects of poor sales on the commercialization of its 3G TD-SCDMA networks has pushed China Mobile to move forward into the 4G segment, the sources indicated.
The move by China Mobile has attracted attention from a number of chipset makers including Qualcomm, Sequans Communications, MediaTek and VIA Technologies as well as China-based Spreadtrum Communications, Hisilicon Technologies and Innofidei, as they have all been eyeing the 4G chipset market in China, the sources noted.
MediaTek has decided to expand its R&D team for the development of LTE and WiMAX chips in Taiwan and China, with plans to raid talent from other wireless chipmakers as well as from HTC, said the sources, noting that MediaTek also does not rule out the possibility of acquiring related LTE R&D teams at home and abroad later.
Global opportunities for LTE TDD [Ovum, February 2011]
Quite often, LTE TDD (also known as TD-LTE) is wrongly presented as a Chinese technology. … However, unlike TD-SCDMA, which was originally a Chinese technology that was subsequently adopted by 3GPP, LTE TDD has been part of the 3GPP standardization effort since its inception. … China Mobile learned at its cost with TD-SCDMA that being a 550 million customer mobile operator helps to attract vendor attention but is not enough to make a technology a global success. The operator consequently built a strategy to position LTE as the next GSM, making LTE the de facto global standard for mobile broadband – something most cellular operators would welcome for cost reasons.
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China Mobile is facing several challenges with TD-SCDMA. One of the most acute relates to the smaller economies of scale associated with a weaker device ecosystem compared to UMTS/HSPA. This is why China Mobile quickly oriented its long-term mobile broadband strategy towards LTE TDD. … In terms of LTE TDD network expansion, we believe that it could be faster than TD-SCDMA as the network will leverage many aspects of the current TD-SCDMA network including cell site facilities, backhaul, and even parts of the base stations. … Despite the large scale of the trials, the drawback of a 1H12 launch is the impact it may have on the development of the LTE TDD ecosystem. Fortunately for the technology, another significant market, India, may launch commercial LTE TDD services before the end of 2011.
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It is Ovum’s view that LTE TDD will become widely adopted in the global market, but this will take time, as exemplified by our forecasts. There will be a delay of 12–18 months between the take-off of the two LTE variants. For LTE FDD take-off should be around 2012–13, while it is expected that this will be around 2013–14 for LTE TDD. We forecast 89 million LTE TDD connections by 2015, representing roughly 25% of total LTE connections.
First Pre-commercial LTE TDD/FDD Uni-Mode Single Chipset USB Dongle to be Launched in June [June 9, 2011]
In June 2011, the world’s first pre-commercial LTE TDD/FDD uni-mode, multi-band, single chipset USB dongle supporting LTE TDD/FDD idle mobility (cell reselection) will be launched by Huawei Hisilicon. Successful completion of the IOT tests with all of the 10 infrastructure vendorsindicated that it had fully satisfied the Uu IOT and terminal test requirements of MIIT and CMCC.
Detailed design parameters are as follows:
The TD-LTE USB Dongle makes an unprecedented advance in functionality, performance, form factor, and interoperability. Prior to the launch of this pre-commercial TD-LTE dongle, 3 other critical development stages were completed:
- The first release of TD-LTE single-mode USB dongle test samples were released at the Shanghai World EXPO in mid 2010. All the terminals were custom-designed for the trial/ demonstration with the 65nm chipset design. Most of them passed the IOT tests with 1-2 infrastructures.
- The first release of LTE TDD/FDD dual-mode Single Chipset USB (65nm design) dongle test samples were released at GSMA MWC 2011 in February 2011. The USB dongles provided by Huawei Hisilicon and Qualcomm can support TD-LTE and LTE FDD in a single chip. The dongle is designed to support TD-LTE or LTE FDD based on the software that is loaded. IOT tests with 3-4 infrastructrues were passed during this phase.
- The pre-commercial TD-LTE single-mode multi-band USB dongles (45nm design) were launched during the GTI 1st workshop in April 2011. These were targeted for trial applications and installations. More than 20 TD-LTE USB dongles from ZTE provided problem free services during the two-day GTI workshop. The DL peak data rate reached 80Mbps and the average single user DL data rate reached 4Mbps. The dongle demonstrated the commercial readiness, stable performance and rapid development of the TD-LTE dongle.
The development quickly progressed from a 65nm test sample to a pre-commercial, Full IOT, Uni-mode, 45nm solution in less than a year. TD-LTE Large Scale Trials in China and commercial deployment in India and Japan will speed up its commercial readiness. The TD-LTE dongle will be commercially available in 2011.
Spreadtrum Communications Acquired Stake in MobilePeak Holdings, Ltd., a Leading UMTS/HSPA+ Modem Chipset Designer [June 9, 2011] (emphasis is mine)
Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that it has acquired approximately 48.44% of the total outstanding shares of MobilePeak Holdings, Ltd. (’MobilePeak’), a privately held fabless semiconductor company based in Shanghai and San Diego that specializes in the design of highly integrated UMTS/HSPA+ modem chipsets.
Spreadtrum acquired approximately 48.44% of MobilePeak’s total outstanding shares, and provided a short-term loan to MobilePeak for the repayment of MobilePeak’s outstanding convertible bridge loans, for an aggregate cash consideration of approximately US$32.58 million. Spreadtrum intends to purchase all of MobilePeak’s issued and outstanding shares, and expects to complete the acquisition in the third quarter of 2011. Thanks to MobilePeak’s efficient operations, Spreadtrum expects the acquisition to have a minor impact on its earnings per share in Q2 and the remaining quarters in 2011, and Spreadtrum maintains its Q2 2011 guidance in terms of revenue, gross margin, and operating expenses as a percentage of revenue.
Commenting on the transaction, Spreadtrum’s Chairman, President and CEO, Dr. Leo Li, said, ’We are very pleased and excited to welcome the MobilePeak team. The synergies between the two companies and the opportunities created by this transaction are clear. With MobilePeak’s complete UMTS/HSPA+ solution, we will broaden our portfolio of worldwide wireless handset technologies, and make inroads into the WCDMA feature phone, smart phone and tablet markets.
“Utilizing our advanced 40nm technology, mature GSM/GPRS/EDGE and TD-SCDMA platforms, and working closely with MobilePeak’s Shanghai and San Diego teams, we will be well equipped to expand our international market shares. These capabilities are also a solid foundation for developing the next generation multi-mode FDD-LTE/WCDMA and TDD-LTE/TD-SCDMA technologies over the next two years.”
Mr. Qiuzhen (Joe) Zou, Chairman and President of MobilePeak, said, ’ We are eager to work with the Spreadtrum team. Since MobilePeak’s inception in 2005, our team has developed world-class baseband chipsets with support for 3GPP Standard through Release 7, including HSPA+ technology up to Category 14 with 21Mbps maximum downlink speed and 11Mbps maximum uplink speed. MobilePeak has more than 100 patents granted or pending worldwide, and its solutions have passed GCF tests and top-tier handset makers’ strict in-house tests. We are confident to roll out the first 40nm HSPA+ solution platform for feature phones and smart phones by 2012.’Mr. Zou will assume the role of Chief Technology Officer at Spreadtrum.
Mr. Zou founded MobilePeak in 2005 and has since served as MobilePeak’s Chairman. He served as MobilePeak’s Chief Technology Officer from 2005 to 2010 and assumed the position of President in 2010. Mr. Zou has more than 18 years of experience in the wireless communications industry. From 1993 to 2003, Mr. Zou held various positions with QUALCOMM, Inc., where he became a Vice President of Engineering in 2000. At QUALCOMM, Mr. Zou led various semiconductor design projects, including multiple generations of CDMA baseband chipsets. Mr. Zou received a BSEE from Southeast University in Nanjing, China in 1992, followed by an MSEE from Stanford University in 1993.
China market: 3G network investment totals CNY289 billion [June 14, 2011]
China Mobile, China United Telecommunications and China Telecom have cumulatively invested a total of CNY289 billion (US$43 billion) in setting up 3G networks consisting of 697,000 base stations around China, China-based http://www.xinhua.com has cited Ministry of Industry and Information Technology officials as indicating.
The three carriers had 67.57 million 3G subscribers in total as of the end of April 2011, the report indicated.
Goal for domestic 3G network set at 50m users [June 9, 2011]
The Chinese government has set a target of achieving more than 50 million third-generation (3G) mobile users by the end of 2011 for its homegrown telecommunication standard, but analysts predict the technology may not be the biggest winner in the 3G era.
Zhao Bo, deputy director of the electronics and information department with the Ministry of Industry and Information Technology, said on Wednesday that China should continue to push forward its TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) 3G technology.
“The TD-SCDMA technology should realize its strategic target of acquiring at least one-third of China’s market, and grab 50 million users by the end of this year,” Zhao said.
He said he is confident that China Mobile Ltd, the world’s biggest telecom carrier by users, will achieve the goal within the schedule.
China Mobile is building the TD-SCDMA 3G network in China, while its domestic rivals, China Unicom Ltd and China Telecom Corp Ltd, adopted the WCDMA and CDMA2000 3G technologies.
Ye Lin, an official from the technology department of the Ministry of Industry and Information Technology, said since the three Chinese telecom operators obtained 3G licenses in early 2009, China has made major progress in 3G network development.
The three carriers have invested a total of 289 billion yuan ($44.6 billion) in 3G network construction in the past three years, Ye said. More than 697,000 3G base stations have been set up in the same period, he added.
The ministry recently announced that the number of 3G users in China reached 67.6 million by April.
China Mobile topped the list with 29.4 million, and China Unicom followed with 20.4 million. The smallest telecom carrier, China Telecom, had 17.8 million by April.
The great leap forward: How the world’s largest operator aims to jump one generation [Ericsson Business Review, June 10, 2011] interview with Bill Huang, GM of the China Mobile Research Institute (emphasis is mine)
China Mobile is pushing the time division (TD) flavor of LTE hard. Why is it necessary to have more than one kind of LTE, and what benefits does TD offer end users?
To understand, you must look back at what caused this technology evolution. There was an understanding that to go digital we must have a global standard. There were many candidates but they fell apart. GSM was a very good effort and succeeded in becoming the first real global standard. Then came 3G. In retrospect, 3G was a questionable development. It optimized voice capacity and quality but data traffic was kind of an afterthought. GSM did the job just fine. The best example is China Mobile. We deployed the world’s largest GSM network with the lowest tariffs, and never saw the need for a better voice service. 3G was a solution looking for a problem. And indeed, WCDMA did not take off until HSPA was developed. So from a historical perspective, HSPA was the only killer application for WCDMA, and internet access is the only reason HSPA took off.
Mobile internet is the only growth area for mobile communication … LTE carries the heritage of GSM and WCDMA with it … the selection of TD technology as a strong candidate in the evolution of LTE gives us an internet advantage. Historically, mobile communication has been symmetrical, dominated by voice. Internet traffic is not symmetrical. Downlink is typically 10 times faster than uplink, and addresses this. TD is unique in the way you can adjust the uplink and downlink ratio. And that’s why TD has become very useful – not only does it allow operators to use spectrum more efficiently, it also offers consumers a better user experience and lower costs.
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How will China Mobile use 3G?
We will accelerate. For China Mobile 3G is an important licensing issue, and we are building a 3G infrastructure to create the momentum [with 3G HSPA level?] with which we move towards 4G.
Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?
Completely wrong! We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.
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Instead of looking at data volume, we can charge for downloading a movie, regardless of size, or a song or a book. We have all of that already in place. But frankly I don’t think consumers are used to content based billing, so we need to educate them – in many cases. … China Mobile’s strategy is that we will be a content and application aggregator, therefore becoming a smart pipe – not a dumb pipe that just provides access without aggregating anything. So we become the Walmart of information.
Instead of charging for content or traffic we can create a club. People are familiar with that concept. You pay one monthly charge and everything is free. It’s very effective; Netflix is a good example of a subscription based service that I think has a very good future as a business model. At China Mobile we can do anything with scale, but we can’t do everything in a niched or personalized way. So, if we provide a club we get to leverage that scale. We have 600 million subscribers. If only 10 percent sign up, that’s already 60 million members. If just 1 percent sign up, that’s 6 million members.
How do you handle the threat from the over-the-top (OTT) players, the internet companies?
It is a very real threat: OTT services can now replace almost any communications service imaginable. ott services are usually free, so this business model is based on backward billing. … What we hope to entice the user with is the quality of service – that’s our most important competitive advantage. … we must also look to reduce the cost of our services, potentially making them free as well. If we use other ways to generate revenue – like advertising or the club concept, and the user subscribes to a bandwidth bundle – we could provide the voice club service for a fixed fee, while guaranteeing the quality. Then I think we could kill off OTT very easily.
…
What do you expect from the cloud?
For mobile internet we have established a three-front strategy: LTE; the smartphone (operating Ophone, which is based on Android plus); and cloud computing. Only by combining all three can we create a really competitive and successful mobile-internet business.
We believe the cloud is an infrastructure technology that can address the cost of computing, reduce energy consumption and become a common platform for society, consumers and companies. Historically telecom operators have been reluctant to embrace it, but this was a mistake. In the US, I think carriers have already given up. They allow Google, Amazon and Microsoft to run cloud computing. But there are opportunities for China Mobile. If anything, we can do infrastructure on a large scale, data centers and so on. We do not have to develop all of the internet services in the world to compete with Google or Facebook. What we could do is build a cloud-computing infrastructure and invite all the internet companies to partner with us.
…
The most important phenomenon that will drive change in the mobile communications industry today is the evolution of smart phones. What used to be a communications device is now an all-purpose computing device. Today, fewer than 20 percent of our subscribers use smartphones. We think that in three to five years over 80 percentof our subscribers will use smartphones.
…
Have tablets changed this picture?
No, I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.
How do you work with the app store concept?
We embraced it completely and the way we differ from Apple is that we support all operating systems – including iOS if Apple wants us to. … We hope to create a platform that is independent of operating systems. … The reason China Mobile chose Android was that we need the flexibility to differentiate. We need to add components, APIs and functionality to Android. That’s why we call it Android plus.
…
I don’t know if video is going to be a major revenue stream, but I am sure it’s going to be a major application. I say that because making video calls on IMS [IP Multimedia System]will become an internet application, so it depends on how we charge for it. It opens up the potential for more creative billing strategies. We would be able to deliver a level of quality that would be very difficult for an ott player to achieve.
…
We studied what kind of apps users download and you’d be surprised how similar people’s tastes are. The top 1,000 apps have a 99-percent share of the market. That’s very good news for operators. We are not very good at long tail, but we are definitely good at short tail.
…
We want a mobile phone to be able to transmit TV to a large screen – so you can watch the program on your phone’s small screen or your computer screen, but also take it with you when you visit someone and watch it together on a large screen, in high definition. You won’t need the DVD. The mobile becomes the set-top box. So China Mobile doesn’t need a three-screen strategy – we only need a one-phone strategy. We are working on a wireless multimedia transmission technology called WiMo for this, and expect it to be available in two to three years.
Are you ready for mobile banking?
To be frank, we have not figured out which technology’s the right one to get the credit card or the payment mechanism into the phone. The most viable one for phones would be near-field communication (NFC). We have already established our architecture for mobile commerce and an account system with connections to all the banks, so from a service point of view we already have everything in place. What we need right now is for more phones to have the capability to carry the mobile payment and transaction engine – the right chip and components to support it, along with NFC.
Is banking a comfortable area for operators?
We don’t necessarily have to compete with the banks. We can rather just be the wallet and charge a monthly fee for the service. In other words, the banks can issue the cards and put them into our phones. We will make our platform open for all the banks. We don’t have to issue our own cards; all we have to do is to become the channel for the credit cards. And then we can make money. It is a great service – to sign up you don’t have to fill in a lot of forms; we have all the customer data that is needed.
How China institutional changes influence industry development? The case of TD-SCDMA industrialization [May 25, 2011]
… in view of that China state capitalizing on different SOEs and accompanying institutional changes, we further break framework into two time-periods:
– During stage 1 (2002- 2008) that China central government started to support Datang Group, aiming to commercialize TD-SCDMA technology into products. State also assigned Datang to lead TDIA [TD-SCDMA Industry Alliance designed to function as the platform of TD-SCDMA development, involving the activities of setting standard, sharing IPR, organizing supply chain, and coordinating among members] for TD-SCDMA industrialization.
– In stage 2 (2009-present), China state turned to mandate China Mobile to promote TD-SCDMA, not only responsible for networking building and service providing, but also for organizing of mobile handset supply chain (Wang and Tsai, 2010).…
The R&D capacity of Datang Group as a whole is questionable, despite that Datang set home-grown TD-SCDMA standard (interview ES1). Since 1992, CATT had received national grant to undergo the earliest home-grown standard (SCDMA, 2G), but failed to commercialize due to weak R&D capacity in commercialize large-scale system development (Chen, 2005; Soh and Yu, 2010)11. Second, Datang XiAn, founded in 1993 and specializing for telecommunication equipment manufacturing for digital automatic switching (SPC) product, can not compete with local minying enterprise Huawei and mixed enterprise ZTE since late 90’s to early 2000’s (Fuller, 2005: 201; Harwit, 2007; Liu, 2008).
… the Datang Group is state-owned enterprise spin off from CATT, and they didn’t directly confront market and no pressure for survival(interview ES1and IS1). Although state continuously channeled national resources to compensate the loss (cf. Table 1 2004 negative profit) from developing TD-SCDMA and that Datang Mobile indeed deployed on R&D and accomplish some patents, Datang Group as a whole can not develop innovation capacity in designing parts and testing whole TD-SCDMA network system. One of the reason is that Datang Group lacked of associated knowledge and experience before (Soh and Yu, 2010).
The same situation occurs in TD-SCDMA mobile terminal products. The joint ventures IC design firms of Datang and MNCs, such as T3G or Commit, launched none of TD-SCDMA products to the market and ended up merged by ST-Ericsson or bankrupted. Likewise, Datang Mobile fruited no complete TD-SCMDA handset, so the state turned to university and public-sector research institutes to support the development of TD-SCDMA (Liu, 2008, 2009).
…
TDIA also confronted frustration in knowledge sharing and organizing of supply network. There’s no patent license-out or cross-license among member (Sumtttier et al., 2006; Whalley et al., 2009), except occasional license out from Datang to ZTE and Putian (Soh and Yu, 2010). Theoretically, Datang supposed to invite and global companies, such as Huawei and ZTE, into the supply chain of TD-SCDMA and leverage on their experience. But Datang, as the father of TD-SCDMA, tried to protect and guard their child (interview ES1). On the other hand, the R&D capacity of Huawei and ZTE outperformed Datang, so Huawei and ZTE won’t bother to join Datang on patent sharing and further on TD-SCDMA technology/product (interview RS4 and RS6).
…
State pick winner [and looser] SOE as national team
By contrast to Datang, the state evolves to pick China Mobile as the new national team by assessing past performance as selection criteria. First, China Mobile has near 500 million (end of 2008) users, making it as the largest telecom operator worldwide (BMI, 2010). So it’s a feasible path to migrate most China users from 2G (GSM) to home-grown standard (Interview, ES1). Second, China Mobile is most profitable and potential operator in China that China Mobile had the capacity and capital to promote TD-SCDMA (Interview ES1, SS2, ES1).
… the state threatens China Mobile: TD-SCDMA or none of 3G licenses. Coupled with impact on Mr. Wang’s political career, China Mobile has no choice but to promote TD-SCDMA (Interview ES1). On the other hand, the state also subsidizes RMB$10 billion (SinoCast, 2009) to compensate for potential loss estimated RMB $30 billion each year (Interview RS5).
In short, China state changes institutional means of supporting core SOE by both subsidies and threat, rather than carrot without stick. The state also changes to assess SOE’s past performance for prospects of TD-SCDMA. Despite the mandatory mission, China Mobile indeed starts to recruit R&D staff with high salary (Interview RS5) and experiments several innovations on TD-SCDMA network deployment, mobile phone launch, and service package to users (Interview IS1).
…
For the particular case of TD-SCDMA development, this paper contributes to discover that China state experiments and adapts institutions, along with the mentality adjusted from ‘standard matters’ to ‘R&D capacity rules’. More, the macro-level institutional learning also leads to meso-level institutional adaptation in the telecommunication industry. China Mobile acts as a mediator between state and network of firms, with the resources re-distribution and demand for collective action through the whole supply chain. Therefore, China Mobile not only managed to offer users with innovative service and networking build through in-house R&D, but also to organize the preliminary formation of TD-SCDMA production networks.
…
China Mobile, as a customer rather than rival of equipment manufacturers, had invested RMB$148 billion during 2008 to 2010 through four stages bids of infrastructure construction (BMI, 2010; IEK, 2010). Both local and global firms, such as SOEs Datang and Putian, minying Huawei and MNCs Nokia-Siemens, all compete for TD-SCDMA network building (Wang and Tsai, 2010). The final winners are Huawei and ZTE, for their cheaper but good product quality than MNCs’ and SOEs’ (Interview ES2). It indicates that China Mobile also selects their cooperating partners basing on market performance as the foremost criteria. This is different from the previously protectionism signal that Datang sent, since the SOE was targeted to dominate China market under the umbrella of MIIT, and which formulated the national industrial policy.
China Mobile also realizes that the biggest problem of TD-SCDMA industrialization is the shortage of TD-SCDMA handsets in the market. Under the pressure from mission and profit, China Mobile urges their current partners (e.g. Nokia and Motorola) to produce TD-SCDMA products through replicating the same incentives tools that state imposed upon China Mobile. That is, China Mobile, basing on their market significance, threatens their main suppliers (e.g. Nokia and Motorola): TD-SCDMA products or none of other business (Interview IS1). On the other hand, China Mobile first offered RMB$ 600 million to three chipsets designers and nine handset suppliers, to induce these leading firms to offer cheap products to penetrate China market. Thus, Nokia, HTC, Samsung and some local firms started to launch TD-SCDMA handsets. Most of all, China Mobile plays as a coordinator to integrate the supply chain, from upstream IC design firms to downstream manufacturers (Interview IS1).
China Mobile awards 12 companies TD-SCDMA research grants [May 17, 2009] (p. 4, emphasis is mine)
China Mobile will provide funding of RMB 600 million ($87.77 million) to 12 mobile phone and chip manufacturers for the research and development (R & D) of terminal devices based on the homegrown TD-SCDMA standard, China Mobile announced on May 17.
According to the announcement, the 12 companies include nine mobile phone manufacturers, namely Motorola Inc., Samsung Corp., Yulong Computer Telecommunication Scientific Co. Ltd., Dopod Communication Corp., LG Electronics (China) Co. Ltd., ZTE Corp., Hisense Group, Guangzhou New Postcom Equipment Co. Ltd. and Huawei Technologies Co. Ltd. along with three chip makers, namely T3G Technology Co. Ltd., MediaTek Inc., and Spreadtrum Communications Co. Ltd.
As China Mobile stipulated that chip makers and mobile phone manufacturers pair up in the R & D project, T3G will work with Motorola, Samsung, Dopod and Huawei while MediaTek will work with Yulong, ZTE and LG. Spreadtrum will collaborate with Hisense and New Postcom.
Motorola, Samsung, Yulong, Dopod and LG, together with their chip maker partners [T3G and MediaTek], will receive combined funding of RMB 310 million ($45.35 million) from China Mobile for R & D of high-end TD-SCDMA mobile phones. The remaining mobile phone manufacturers [Huawei, ZTE, Hisense and New Postcom], together with their chip maker partners [T3G, MediaTek and Spreadtrum], will be responsible for R & D of low-end TD-SCDMA mobile phones and will receive combined funding worth RMB 290 million ($42.42 million) from China Mobile, the announcement said.
China Mobile Reveals TD-SCDMA Handset Subsidy Bidding Results [May 17, 2009] (emphasis is mine)
On May 17, China Mobile (NYSE: CHL; 0941.HK) held a signing ceremony for subsidies targeted at joint TD-SCDMA handset R&D, with nine handset manufacturers and three chip manufacturers signing a “cooperative R&D” agreement. China Mobile will invest RMB 600 mln in the subsidies, driving total investment of over RMB 1.2 bln in TD-SCDMA R&D, with the remaining contributions coming from participating vendors.
6 joint bids won subsidies for China Mobile’s “Flagship Broadband Internet Handset” project: Motorola and 3G chip manufacturer T3G; Samsung and T3G; mobile handset manufacturer Yulong and TD-SCDMA chipmaker Leadcore Technology; Smartphone manufacturer Dopod and T3G; LG Electronics and Leadcore; and ZTE and Leadcore. China Mobile will invest approximately RMB 310 mln in the project.
For the “Low Cost 3G Handset” project, the five successful bids were ZTE and Leadcore; LG and Leadcore; Hisense and wireless baseband chipset provider Spreadtrum Communications (Nasdaq: SPRD); Guangzhou New Postcom and Spreadtrum; and handset manufacturer Huawei and T3G. China Mobile will provide approximately RMB 290 mln of funding for this project.
7 months later these 11 handsets were shown [as per China Mobile’s Dec 17, 2009 press release in Chinese
China Mobile‘s 200 Models of TD Mobile Phone Listing This Year [March 18, 2011]
Recenly Li Yue, president of China Mobile, attended the Results Announcement said that China Mobile has an adequate supply in the 3G mobile phones. Currently, 50 companies are available to TD phones, and another 200 models will be able to supply soon.
At the end of last year, China Mobile has conducted 6 million low-end TD mobile phones tender. And in February this year, China Mobile has conducted 12.2 million high-end TD mobile phones procurement, of which, about 150 million units flagship Internet terminals, 30 million units dual card dual standby terminals, 320 million units multimedia intelligent terminals, 400 million units fashion and entertainment terminals and 320 million units universal intelligent terminals.
Xue Taohai, vice president of China Mobile, said the group will control the handset subsidies in 17.5 billion yuan. It is reported that China Mobile set a new goal for 25 million 3G users this year, and the current 3G network has covered 656 cities.
China Mobile Changes Strategy in Terminal Procurement [April 22, 2011]
Foreign mobile phone makers that has been disappointed in the bidding invitation of China Mobile Ltd. (SEHK: 0941 and NYSE: CHL) for centralized procurement of 6 million TD-SCDMA terminals last year, have turned things around in this year’s first round of centralized procurement kicked off by the leading telecommunications carrier.
Reporters find out that foreign mobile phone makers have won more than half of the share in recent centralized procurement, indicating that China Mobile has adjusted its philosophy in terms of the development of TD-SCDMA terminals, pointed out an insider who declines to reveal his name, saying that the company is not satisfied about current situation for the distribution of TD-SCDMA mobile phones.
A top executive of China Mobile opens out that the sales volume of TD-SCDMA terminals is small, indirectly confirming the report, saying that TD-SCDMA mobile phones have bad quality and high prices.
In the opinion of a researcher of iSuppli, China Mobile has changed its strategy to snatch market share and enlarge user base through low-end TD-SCDMA terminals and will improve the brand influence and boost the sales volume of TD-SCDMA mobile phones through the promotion of flagship terminals.
At the end of 2010, a domestic TD-SCDMA chipmaker has begun preparing for the next year’s centralized procurement of TD-SCDMA mobile phones by China Mobile, since the distribution of TD-SCDMA terminals completely relies on telecom carriers.
The top management of the chipmaker has been determined to win the centralized procurement. However, in February 2011, the announcement of China Mobile about the result disappointed them.
China Mobile has focused on medium- and high-end mobile phones in this year’s first round of centralized procurement while bid winners were all domestic TD-SCDMA terminal makers last year.
The changing philosophy of China Mobile is unfavorable to domestic mobile phone makers, which are mostly oriented to the manufacturing of medium- and low-end TD-SCDMA terminals.
Take the example of upstream chipmaker Leadcore Technology Co., Ltd., its shipment of TD-SCDMA chips topped 13 million in 2010. In last year’s centralized procurement, the company took over half of the share.
In contrast, US IC designer Marvell Technology Group Ltd. (Nasdaq: MRVL) that is oriented to the medium- and high-end TD-SCDMA smart phone market is likely to snatch more than half of the share in the latest centralized procurement.
Whatever strategy China Mobile adheres to, its aim will not change. That is to attract more customers for TD-SCDMA mobile phones. A top executive of Leadcore Technology believes that high-end TD-SCDMA terminals will help China Mobile improve its brand influence. But, to boost sales volume, the company still has to rely on medium- and low-end mobile phones.
(1 USD = CNY 6.51) Source: http://www.nf.nfdaily.cn (April 22, 2011)
Muted group procurement result of TD smartphone in May, indicating backend loaded demand with low SP mix in 2011 [May 24, 2011]
Leadcore, Huawei, and Borqs indicated that China Mobile (CM) procured only 1.2mn TD smartphone (SP) with a minimum order of 200,000 for each model, well below the market expectation of 12mn units with minimum guaranteed order of 800,000 per model. CM has selected six models (three Ophone, two Android, and one feature phone) from Huawei, ZTE, Samsung, Lenovo, Motorola, and Coolpad. They attributed the disappointing central procurement result of TD smartphone to relatively poor quality of phones. That said, Leadcore believes that MIIT has required CM to add 30mn TD-SCDMA subs in 2011 and TD terminal or chipset shipment is likely to be 53mn in 2011. Leadcore is hopeful that feature phone and SP could represent most of the TD phones with fixed wireless terminals at only 3-4mn in 2011. Leadcore expects CM to shift to open channels, which also receives a subsidy through contracts with provincial or local CM subsidiaries; and we predict the mix of open channel and central procurement to increase from 30% and 70% in 2011 to 70% and 30% in 2012, respectively. Similarly, Spreadtrum also expects TD chipset market to reach 45-50mn in central procurement (fixed wireless 35%, feature phone 50%, smartphone 10-15%), and 60mn-70mn units in total (including the open channel). Spreadtrum has seen strong recent demand from open channel. We note that open channel tends to sell more feature phones and fixed wireless phones.
Leadcore and Spreadtrum aim to gain TD market share in 2011
Leadcore believes that it has 50% of TD market share together with Mediatek. Marvell has relocated some of its R&D resources to China and is getting support from OEM. CM would like to give 60% of its SP orders to Marvell. However, in a recent stability test by CM, Leadcore scored at 95% pass rate, with T3G at 93% and MRVL at only 65%.
Rumor: China Mobile Establishes National Handset Procurement Arm [May 27, 2011]
An industry source said recently that China Mobile (NYSE: CHL; 0941.HK) has circulated a memo internally announcing the establishment of a terminals center, to be announced officially in August, that will operate as a national-level handset procurement subsidiary. The operator is currently making necessary internal adjustments in order to transfer staff to the new center.
The new terminals center will be operated like a division of China Mobile, overseen directly by China Mobile headquarters, and will focus on terminal procurement and sales. The center will be comprised of several departments, including products, procurement, marketing, channels, systems support, general services, and finance. While it is being referred to internally as the “mobile terminals center,” externally it will operate like a company.
Previously, the source said, China Mobile’s headquarters had been separate from provincial-level procurement operations, which it will now unify under the new terminals center. If a handset manufacturer is not on the center’s supplier list, it will be unable to promote its handset through provincial subsidiaries.
Earlier reports claimed that China Mobile had planned to transform handset distributor Topssion, which it acquired in March, into a terminal sales subsidiary.
Borqs Unveils Latest OPhone Handsets at 14th China Beijing International High-tech Expo [May 20, 2011] (emphasis is mine)
With the coming of the World Telecommunications Day, the 14th China Beijing International High-tech Expo (the Expo) opened at China International Exhibition Center from May 18th to 22nd, 2011. This Expo was co-organized by several state departments of China, including the Ministry of Science and Technology, Ministry of Commerce, Ministry of Education, and Ministry of Industry and Information Technology. Many innovative enterprises participated into the Expo with their innovation achievements. Borqs, one of the members of China’s National Special Key Projects, were also invited and exhibited the new serial of TD smartphones running on OPhone OS 2.0 or higher.
From “Made in China” to “Created in China”, and then to “China Standards”, enterprises based in Zhongguancun have always been committed to innovation and development since their establishment. As technology advancement and industry transfer are seen everywhere around the world, China Mobile developed and launched the first 3G standard in China, TD-SCDMA, a decade plus ago. As of today, China Mobile has maintained 61.9 million 3G mobile users as well as 26.99 million TD-SCDMA users. Recently, Mr. Jianzhou Wang, the Chairman of China Mobile, pointed out that TD system was no longer a test network but a commercial one covering 656 cities around China with the joint efforts of China Mobile and its industry partners from within and outside the country. Especially, the TD-SCDMA industry chain has emerged in recent years,, consisting of near 50 telecommunication enterprises, including many manufacturers and providers of network, terminals and chips, in and outside China.
OPhone OS is closely related to TD. Up to now, OPhone smartphones account for 50% of TD smartphones. At the Expo, a wide range of TD terminals are exhibited, including many new OPhone-based models. Following its receiving recognition from the state officials at the prior 11th Five-year Plan Major Science & Technology Achievements Exhibition, OPhone OS continued to be all the rage and attracted many visitors at the Expo.
TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]
TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations
- All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
- The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
– 78% supporting facilities modification accomplished
– 69% equipments arrived
– 35% equipments installed
- Transmission tests have been completed in several cities
- EPC and Security tests initiated in several cities in April 2011
- RANtests are planned to start in the end of May 2011TD
…
GTI Official Website: http://www.lte-tdd.org
The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.
China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]
China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.
Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.
The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.
Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.
TD LTE to revolutionize wireless broadband [May 31, 2011] (emphasis is mine)
During the second international LTE conference held in New Delhi, the industry said that it has become imperative to deploy LTE technology to set standards. With numerous benefits of TD LTE, the industry is graping with deployment challenges while early availability of devices has become another area of concern. Bharti Airtel is conducting trial in Chandigarh. The deployment of TD LTE at right time as well as availability of devices will be a challenge, and it is coming out with a lot of hope.
Speaking at the event, J Gopal, Advisor (Technology), DoT said that they are looking forward for this technology to bridge digital divide and facilitate economic growth. With various consumer-centric advantages, TD LTE is becoming an important tool for every operator today while some of them have already begun trials.
“Eventually we see migration from WiMax to TD LTE and significantly there is a global initiative to promote it. India and China are the leading contenders of this technology, which is mature now,” said Sujit Bakre, head, 4G business development and product management (APAC), Nokia Siemens Networks. Large investments have already been done on 2G/3G and now we should leverage voice onto TD LTE, he added. Bakre reiterated that they bagged two commercial deals in Middle-East and Latin America but however couldn’t name the operators.
Puneet Garg, VP, Networks, Bharti Airtel said that TD LTE is a next step towards broadband wireless and is the fastest BWA technology and has become a realty now. “It will make high speed wireless broadband affordable to urban and rural consumers. This technology facilitate low TCO”, he added.
Rajan S Mathews, director general, Cellular Operators Association of India said that broadband is the single big imperative for the country. “As we are poised to be the largest economy by 2050, therefore we couldn’t afford to miss the broadband bus,” he said. Mathews said that the government is aggressively implementing the national policy on broadband and TD LTE is a great opportunity for the country to get into building standards.
20 Operators Have Joined GTI [May 19, 2011]
Following the 1st GTI Workshop, GTI has gained strong momentum. Till May 19th, 20 operators from Europe, Asia, America and Oceania have formally joined GTI.
These 20 GTI operators are:
Aero2, Belltell, Bharti Airtel, China Mobile, Clearwire, Datame, E-Plus, FarEastone, First International Telecom Corp,KT, Omantel, Nextwave, Packet One, Smoltelecom, SoftBank, Tatung Infocomm, Vividwireless, Vodafone, Voentelecom, Woosh.
GTI was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Seven operators including Aero2, Bharti Airtel, China Mobile, Clearwire, E-Plus, Softbank Mobile and Vodafone jointly kicked off GTI activities in February during Mobile World Congress in Barcelona.
GTI objectives are:
1) Energizing the creation of a world-class and a growth-focused business environment;
2) Delivering great customer experience and bringing operational efficiencies;
3) Promoting convergence of TD-LTE and LTE FDD in order to maximize the economy of scale;
4) Facilitating multilateral cooperation between and/or among operators.
GTI has started preparing the 2nd Workshop and initiated the discussions on the technical areas which will be investigated among GTI operators.
Vividwireless joins global TD-LTE promotion initiative [May 19, 2011]
vividwireless a Seven Group Holdings Limited [media-related] company, owns and operates Australia’s first 4G wireless broadband network. vividwireless launched in Perth in March, 2010. The network has since been expanded to cover select parts of metropolitan Sydney and Melbourne, Adelaide, Canberra and Brisbane.
Vividwireless – which presently operates mobile WiMAX networks in capital cities – has joined the Global TD-LTE Initiative (time division long term evolution) launched at Mobile World Congress in Barcelona in February.
GTI, which held its first working meeting in Guangzhou earlier this month, was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Its founding members were ChinaMobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2. Vividwireless says it was invited to join at the launch.Commenting on the launch of GTI at the time, Julien Grivolas, principal analyst at Ovum said: “A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA [China’s 3G mobile standard] proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players.”
He added: “This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonisation with LTE FDD) from a number of international players.
“With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organisation remains fully open to all operators and technology vendors interested in promoting LTE TDD.”
Vividwireless said that the GTI would “organise a series of activities to bring TD-LTE operators and vendors together to share development strategies and technology know-how, expediting the development of terminals and fostering global roaming and low-cost terminals.”
Vividwireless trialled LTE in Sydney earlier this year and says “The trials…demonstrated that TD-LTE can deliver wireless broadband that is faster than ADSL2+, with peak speeds as high as 128Mbps and consistent ‘real world’ speeds between 40 – 70Mbps.”
Following the trial the company said it was sufficiently impressed to consider using TD-LTE rather than WiMAX for its planned major east coast network rollouts. CEO Martin Mercer said “The technology is far more mature than we had expected. The Huawei SingleRAN solution [used in WiMAX mode in Vividwireless’ networks today] is basically ready to go today and is at a price point that would enable us to take service to market at prices comparable to what we offer today.
“We could deploy this technology in our east coast rollout and provide customers with services superior to those we provide today and equivalent prices. The question for us now based on the results of the trial is: do we rollout TD-LTE on the east coast…and do we deploy it in other markets as well?“
vividwireless First To Trial 100Mbps Broadband TD-LTE In Australia [Nov 10, 2010] (emphasis is mine)
Leading 4G wireless broadband provider, vividwireless, today announced the first
Australian trial of superfast mobile wireless broadband – TD-LTE – (Time-Division
Duplex Long Term Evolution) which can deliver peak speeds of more than 100Mbps.
vividwireless CEO Martin Mercer said the trial with technology partner Huawei Australia
was part of the company’s continuing technology roadmap assessment.“vividwireless is trialing the advanced TD-LTE technology to evaluate and determine the
very best mobile voice and broadband service to meet our customers’ future needs.
vividwireless is determined to ensure that it retains its ranking as Perth’s fastest wireless
broadband provider,” he said.Huawei’s global experience with the technology has found TD-LTE can deliver wireless
broadband that is much faster than ADSL2+, with peak speeds of more than 100Mbps.
The trial will cover the market readiness of TD-LTE, including the technology’s capacity,
coverage and ‘real world’ performance.“Demand for high speed wireless connectivity is increasing rapidly. Customers want fast,
reliable HD video streaming, gaming, communications, transactions and other
entertainment to be available wherever they are,” said Mr Mercer.“Our current network satisfies this demand and this trial will help us to ensure that we
continue to be Australia’s leading wireless broadband provider,” he added.The trial will commence in December 2010 in inner-city Sydney around Redfern, as well
as Western Sydney around Horsley Park. These locations will allow vividwireless to test
the performance of the technology in high demand, high density, inner city conditions
such as apartments and cafes, as well as suburban conditions.Huawei Australia Chief Technology Officer Peter Rossi said, “Having worked with
vividwireless in rolling out its Perth network and the initial footprints in Sydney,
Melbourne, Adelaide, Canberra and Brisbane, we are delighted to be working on this
TD-LTE trial.“Huawei’s SingleRAN solution allows vividwireless to make a smooth transition from
WiMAX to TD-LTE to suit its network requirements, and with Huawei holding the title of
the world’s number-one LTE essential patent holder, vividwireless will always have a
cutting-edge mobile network,” he concluded.
Ovum encourages operators in developed countries to be pragmatic [May 6, 2011] (emphasis is mine)
Ovum has highlighted the potential of LTE TDD on many occasions, but has also pointed out the various challenges it faces. In particular we have highlighted that the current status of the device ecosystem may negatively impact the pace of rollout. Devices are always a crucial success factor for any kind of technology, but for LTE TDD they are even more important. This is largely due to the fact that most of the operators that have announced aggressive LTE TDD plans are based in emerging markets (China, India, and Russia).This means that low-cost devices will have to be made available quickly to serve these markets. In that sense, the creation of the Global TD-LTE Initiative at Mobile World Congress 2011 is a step in the right direction.
Launch of the GTI accelerates ecosystem development
In February 2011, China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2 officially launched the Global TD-LTE Initiative (GTI). The organization will focus on promoting the fast development of LTE TDD technology, promoting the convergence of LTE TDD and FDD modes to maximize economies of scale, and sharing the ecosystem with other TDD technologies, such as the Japanese eXtended Global Platform (XGP) technology.
In the mobile telecoms industry, scale is vital – something that WiMAX can testify to. A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players (as stated in our report TD-LTE, China Mobile’s long-term engagement with ‘TD’, OVUM051850). Attracting vendors’ interest was the easy part given China Mobile’s size, but making sure that other operators would consider the LTE TDD option required more imagination. This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonization with LTE FDD) from a number of international players. With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organization remains fully open to all operators and technology vendors interested in promoting LTE TDD.
China Mobile will not be the first to launch commercial LTE TDD services
The GTI launch event in Barcelona confirmed what we expected (see the report Global opportunities for LTE TDD, OT00063-016): with a launch expected in 2012, China Mobile will not be the first operator in the world with commercial LTE TDD services. However, it is true that the operator’s large-scale trial networks to be deployed in seven cities in 2011 will be much bigger than the majority of LTE (TDD and FDD) commercial networks available at that time.
Among the LTE TDD frontrunners, the GTI event confirmed Aero2 from Poland as a candidate to become the first with commercial services, in as early as May 2011. The operator will use equipment from Huawei to construct a converged LTE FDD/TDD network. Softbank Mobile also unveiled plans to commercially launch LTE TDD services in Japan before the end of 2011. Like Aero2, the Japanese operator will use the 2.5GHz spectrum band. Softbank Mobile recognizes that the timeline set for its LTE TDD project is aggressive, but claimed that it has full confidence in vendors to overcome the various challenges. In Softbank’s opinion, LTE TDD is better suited to handle mobile data services. This is because the technology’s asymmetric nature fits well with mobile broadband data usage patterns and because of the greater technical efficiency of LTE TDD versus LTE FDD in terms of smart antenna systems. Finally, the official support of LTE TDD by Bharti Airtel means that there are now three 2.3GHz broadband wireless access spectrum owners committed to rolling out the technology in India. Speaking at the event, the CEO of Bharti Airtel, Sanjay Kapoor, stated that support from operators in India and China will ensure scale for LTE TDD and definitely signals the end of WiMAX’s hopes.
Ovum encourages operators in developed countries to be pragmatic
So far, operators have continued to favor the FDD variant of LTE, especially in developed markets. However, we recommend that these operators, which sometimes own unused TDD spectrum, closely monitor the development of the LTE TDD market. The reason is simple: given the rise of data traffic, all spectrum is valuable. They should continue to adopt a very pragmatic approach to LTE TDD. This consists of ensuring LTE FDD/TDD integration into network equipment now and into devices once the LTE TDD device ecosystem is sufficiently mature. If LTE TDD becomes widely adopted, by 2014-15 LTE FDD operators may well be tempted to leverage LTE TDD cost benefits to add extra capacity to their networks.
The E-Plus Group, China Mobile and ZTE sign a MOU for TD-LTE field trial in Germany [Feb 14, 2011]
The E-Plus Group, China Mobile Communications Corp. and ZTE will work together to launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will empower this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.
The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators during years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.
The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011 consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.
China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and convergence of TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.
With joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.
About the E-Plus Group
The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. After revolutionizing the voice market for larger user groups now the company opens the mobile data market for the masses by its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships the E-Plus Group was able to significantly strengthen its market position and show a more dynamic and profitable development than the market. Since 2005 E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target group-specific services and thus breaks new ground in mobile communications in Germany. More than 20 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates an annual revenue of €3.2 billion (2010) and employs more than 2,500 people (FTE) in Germany.
326 Million Dual-Mode 4G Devices to be Activated by 2016 [May 31, 2011]
326 Million Dual-Mode (3G + LTE) Devices will be Activated by 2016 according to Maravedis’ latest research titled “Global 4G Device Forecast 2011-2016”.
“All LTE devices activated during 2010, including USB data cards, modems and notebooks, were single-mode,” said Cintia Garza, author of the report. “However, LTE+3G smartphones have emerged during 2011 as more LTE operators begin to add LTE to their device offering, in particular smart phones whose adoption will be key to LTE uptake.”
In the United States, Sprint’s early success with WiMAX smart phones suggests a very promising uptake for LTE smart phones. Many other carriers around the world are also looking at introducing smart phones in their LTE device portfolio by the end of 2011, such as NTT DoCoMo (Japan), and Yota (Russia).
“By 2013, more than 50% of LTE devices activated worldwide will support both FDD and TDD duplex modes, once TD-LTE deployments consolidate in China, India, Malaysia, Korea and other APAC countries,” continued Garza. “On the other hand, 75% of the LTE devices will support legacy systems (2G/3G) and 9% will support WiMAX technology; these devices will mainly include smart phones, tablets and USB dongles”.
Tablets are also one of the most promising devices in the 4G device market. Maravedis’ report predicts tablet shipments will grow from 46 million in 2011 to nearly 150 million by 2016. Apple iOS is expected to remain the most popular tablet for the coming years, reaching 46% market share by 2016.Additional Research Findings:
- 260 million dual-mode (TD LTE + FDD LTE) devices will be activated by 2016
- Android will account for 48.5% of the smart phone market, Windows 21% and iPhone (iOS) 16.5% by 2016.
- APAC and Europe will account for the largest number of smart phones and tablets activated by 2016.
- By 2016, 95% of the tablet installed base will be 3G/4G enabled.
Source:Maravedis
LTE Subscriptions to Experience Growth of over 3,400% Between 2011 and 2015 [June 9, 2011]
Between mobile applications, data, voice, and streaming and broadcast video, global wireless bandwidth usage has increased ten-fold since 2008, and there are no signs of it stopping. This obsession to connect anywhere, any time, on any device, viewing any type of digital content is about to have a very real and sudden impact on the wireless world. In-Stat (www.in-stat.com) forecasts that LTE subscriptions will experience a 3,400% explosion of growth between 2011 and 2015.
“Although there are regional variations in the adoption of cellular services, due in part to current available technology, LTE will clearly be the 4G service of choice moving forward,” says Chris Kissel, Analyst. “3G will remain the predominant service subscription, also with robust growth, but over the next 5 years things will trend toward LTE as 4G service availability is ramped up.”
Recent research by In-Stat found the following:
- North American FDD-LTE subscriptions are set to increase roughly 2100% from 2011 to 2015. In 2015, the ratio of North American FDD-LTE subscribers to TDD-LTE subscribers will be almost 14 to 1.
- 3G subscriptions remain dominant with WCDMA technology capturing 26% of 3G subscriptions. CDMA Rev B will be the smallest segment of the 3G technologies based on subscriptions.
- 2G service subscriptions will peak in 2012, then they will begin a slow decline during the remainder of the forecast period.
- More than half of all new deployments are LTE.
Mobile broadband subscribers overtake fixed broadband [June 7, 2011] (“in the text” emphasis is mine)
Market research firm Infonetics Research today released excerpts from its latest Fixed and Mobile Subscribers market forecast report
ANALYST NOTE
“As we predicted, mobile broadband subscribers surpassed wireline broadband subscribers in 2010 (558 million vs. 500 million). Fixed-line services are not dead, though, especially with China giving a boost to the worldwide wireline broadband base with its massive fiber-based program led by the Chinese government, which has set a 20Mbps benchmark for all broadband subscribers, where most today receive 2Mbps to 3Mbps at best,” notes Stéphane Téral, Infonetics Research’s principal analyst for mobile infrastructure.
FIXED AND MOBILE SUBSCRIBERS MARKET HIGHLIGHTS
- Infonetics forecasts the number of mobile phone subscribers to grow to 6.4 billion in 2015 (the current global population is 6.9 billion)
- In 2010, Asia Pacific accounted for nearly half of all mobile subscribers
- The number of cellular mobile broadband subscribers jumped almost 60% in 2010 to 558 million worldwide and should top 2 billion by 2015
- Access lines (residential, business, and wholesale PSTN, POTS, and ISDN connections) are forecast to continue declining, falling to 759 million worldwide by 2015
- As access lines disappear, new forms of wireline broadband continue to thrive; the number of wireline broadband subscribers (DSL, cable, PON, Ethernet FTTH, FTTB+LAN) hit 500 million worldwide in 2010
- WiMAX, in high demand in many regions with inadequate wired infrastructure, remains modest in scale but not growth: despite the global recession, the number of WiMAX subscribers grew 75% in 2010, with more strong growth ahead, reaching 126 million in 2015
- The number of VoIP subscribers (including VoIP over access lines and over other broadband lines, such as cable) is forecast to grow from 157 million in 2010 to 264 million in 2015
- While growth in the number of video subscribers is being challenged by over-the-top (OTT) and free-to-air services, telco IPTV subscribers are forecast to triple between 2010 and 2015, and digital and satellite cable subscribers will see healthy annual growth as analog cable video subscribers continue their inevitable decline
REPORT SYNOPSIS
Infonetics’ report provides worldwide and regional market size and forecasts through 2015 for access lines and fixed and mobile subscribers, including cable broadband, DSL, PON and Ethernet FTTH, residential and SOHO VoIP, telco IPTV, cable video, satellite video, mobile (GSM, W-CDMA, TD-SCDMA, cdmaOne, CDMA2000), cellular mobile broadband (W-CDMA/HSPA, CDMA2000/EV-DO, LTE, WiMAX, phone-based, PC-based), WiMAX (802.16m, 802.16e, 802.16d), and IMS subscribers. See report prospectus for details.
The report includes customizable pivot charts and analysis comparing subscriber types, regional service provider subscriber highlights, fundamental drivers of the market, technology developments, excerpts from Infonetics’ service provider capex reports, and analysis of overall market conditions for service providers, enterprises, subscribers, and the global economy.




The images leaked online provides glimpses of new HTC Windows Phone 7, currently being called ‘Eternity’. HTC Eternity will land as one of the first most smart phones running Microsoft Windows Phone 7 Mango (WP7) operating system.
The i8350 has also received its very own (blank, for now) page in Samsung’s UK support database, pretty much confirming that it’s real. You can see a screengrab of that above.


1.0 Program Overview









ZTE Light Tab T9 ZTE Light Tab T9 



so here is my take



Control of the skies: Zhang Qingwei
Phone boss: Wang Jianzhou
Electric lady: Li Xiaolin
Security chief: Zhou Yongkang
Chemical: Su Shulin
Son of suppression: Chen Yuan
Banking boss: Xiao Gang
Oxford educated: Guo Shuqing
Driving force: Zhu Yanfeng
Arms trade: Zhang Guoqing




