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Table of Content
1. 2. 3. Introduction Market overview 1. Business volume 2. Network Operators Services 1. VAS Figures 2. SMS & MMS 3. Ring Back Tones 4. M-Commerce 5. Games 6. Other services 7. Biggest Service Providers 8. Revenue sharing model Currently used Broadband technologies 1. 2.5G 2. EDGE 3. Wireless Local Loop 4. SCDMA 5. The Cuntong Project 6. WLAN 3G 1. General 2. Lisence issue 3. TD-SCDMA 4. 3G testing 5. HSDPA 6. Other future technologies 1. Wimax 2. WRAN 3. DVB-H 4. Beyond 3G, 4G Policy making and public sectors role 1. CATR 2. Standard Association 3. CJK Standards meeting Public R&D programs 1. General 2. NFS 3. 863 4. FuTURE 5. Notable research institutes Private sector R&D activities 1. General 2. Network equipment manufacturers 3. Handset manufacturers Foreseeable radical changes Finnish Companies possibilities in China
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1. Introduction
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1. Introduction
This report has been written for the GIGA program of Tekes, focusing on converging networks. The report provides information on the China wireless broadband markets. This report discusses the following issues
Overview of the China wireless broadband market Competitive environment Technology adoption and outlook Available services Governments role in the development of the wireless broadband Public & Private R&D activities for wireless broadband technologies Opportunities for Finnish companies
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1. Introduction
China in a Nutshell
China National Statistics 2004 Population Land Area Largest City GDP per capita Metropolitan Population 1.3 billion (Finland 5.3 million) 9,600 000 km (Finland 338,000 km) Shanghai $5,600 (2004 est.) urban population: 41.8%; rural population: 58.2%. Source: www.china.org.cn, CIA world factbook
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2. Market Overview
2.1 Business Volume 2.2 Network operators
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M o b ile S u b s c r ib e r s & P e n e tr a t io n
400 300 Subscriber(Mil) 200 100 0 2001 2002 2003 2004 Year 30 25 20 15 10 5 0 Penetration % S u b s c rib e r P e n e t r a t io n
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Rai l com S & Chi na at N com et 1% 16% Chi na Uni com 15%
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Mobile subscribers
Yearly comparison on new mobile user subscription
900 800 700 600 500 400 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Ministry of Information Industry
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Thousand (subscribers)
2001
2002 2003
2004
Mobile Operators
Operator China Mobile China Unicom Network
GSM since 1995, GPRS since 2002
Users
GSM: 223.78 mln
Note
Planning to launch EDGE in 2H/2005 GSM-CDMA dual mode service since 2H/2004
GSM since 1994, GSM 88.76 mln cdmaOne since 2002, CDMA 30.47 mln CDMA2000 1X since late 2003 PHS (LittleSmart) since PHS: 39.12 mln 1997
China Telecom
(No mobile license, but operates PHS)
Total (including Fixed No mobile operating line): RMB 161.2 license! billion PHS in huge growth (US$ 19.4 billion) Total (including Fixed No mobile operating line): RMB 64.9 billion license! (US$ 7.8 billion) PHS in huge growth
China Netcom
(No mobile license, but operates PHS)
Data revenue/ Data Share of Data revenue/ Data Share Data month ($ milj.) Revenue (%) month ($ milj.) of Revenue revenue/ (%) month China Mobile China Unicom 416.67 120.33 18 15 515 116.67 21.4 14 110.52 85.48
101.2 79.03
Handset market 2004: 73 million handsets sold 2005 (E): 88 million handsets sold (by CCID) Over 1000 handset models in market Nokia, Motorola, Samsung and Bird are leading the market Domestic manufactures have less than 45% of the total market
China Mobile
As of 31 July, 2005 Contract subscriber Prepaid subscriber Total subscriber
Subscriber number
60,737
166,625
227,362
Net additions
105
3,476
3,581
850
22,220
23,070
CM has the right to use a total of 34 MHz of spectrum, for transmission and reception, respectively, in the 900 MHz frequency band and the 1800 MHz frequency band in Mainland China.
Source: China Mobile
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Number of Subscribers * Net increase in subscribers * Average Revenue per User per Month (ARPU)(USD/User/Month) * Total Usage (Minutes) * Average Usage per User per Month (MOU) (Minutes/User/Month) * Average Revenue per Minute (USD) Number of Users of Mobile Data Services * Short Message Services Usage Volume (Messages) Network Capacity (Users) Network Utilisation Rate Number of Employees
213.87 million 9.58 million 11.02 $ 196.48 billion 318 0.035 $ 174.00 million 59.1 billion 254 million 84.2% 90,771
204.29 million 9.91 million 11.27 $ 188.27 billion 313 0.035 $ 156.83 million 62.8 billion 244 million 83.6% 88,127
194.38 million 8.91 million 11.14 $ 170.37 billion 297 0.037 $ 147.09 million 40.0 billion 226 million 86.0% 85,621
China Unicom
The only operator in China to run two different networks of GSM and CDMA Testing on CDMA EV-DO & CDMA EV-DV as 3G (Tianjin and Shanghai has built EV-DO trail network) Speculation that China Unicom can be split up two Uni-Info, branded WAP portal. Established UNISK Information Technology (together with SK Telecom) to engage in wireless value added service business Uni-Java (developed with Qualcomm) and Brew are two application platforms for China Unicom
China Netcom
Overview Third largest operators in China. Focus on fixed line, broadband service, WLL, etc Main business area are north part of China Occupy 40% WLL market share Official partner of 2008 Olympic Games
China Satcom
Established in 2001, focus on satellite communication. It devotes to develop satellite communication, broadcasting and related business Testing 3G
Service fees
Service WLL service GPRS Handsets 75 - 250 USD Monthly fee 3.09 USD Minute price 0.014 Value added services, sms, e-net, call forwarding 0.15 USD/hour, sms XLT- cellphone 0.01 USD per message Basic Plan: no monthly fee, usage is charged at 0.004 USD per kilobyte; Economy Plan: 2.4 USD a month for 1MB free data volume, and 0.0012 USD for each additional kilobyte; Elite Plan: 12 USD a month for 20MB; 4) Business Plan: 24 USD a month for unlimited usage.
CDMA GSM
0.05 USD 0.05 USD Prepaid: 0.07 USD per minute, Sms China Mobile network to Unicom is 0.018 USD and 0.012 USD from Unicom to China Mobile.
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3. Services
3.1 VAS figures 3.2 SMS & MMS 3.3 Ring Back Tones 3.4 M-Commerce 3.5 Games 3.6 Other services 3.6 Biggest Service Providers 3.7 Revenue Sharing model
Data services account roughly about 10% of operators revenue Over 1000 Service Providers offering mobile VAS Total market value of mobile VAS exceed 2 billion Euro in 2003 VAS Market information at Q4 of 2004
WAP user reach 14.9 million, revenue 104 million Euro Java and Brew games are smoothly increasing, revenues are 2.5 million and 1 million Euro IVR market revenue 24.5 Euro CRBT increase fast, user reach 22 million, expect to reach 60 million in 2005, revenue 33.6 million Euros
SMS: 217 bln SMS sent in 2004, 2.69 bln USD of total revenue 57% of SMS are for chat & games, followed by ringtones, pictures, news, financial info, CMs top 5 SPs capture 57% revenue from WAP SMS. Revenue from SMS is leveling off MMS: Both operators started MMS with branded content. Color messaging by CM Color E by CU MMS, IMAP (emails), LBS Number of MMS users reached 6.98 million, revenue 31.1 million USD MMS is billed at USD 0.096 each (SMS is USD 0.012 each.) Users also need to pay for MMS content downloaded from Internet portals.
Mobile Games:
China is 2nd largest market in APAC. Role play & action games most popular. Mobile gaming market topped USD $98 million, 150% growth from 2003 Estimation for 2005: $177,5 million Currently, majority of revenue comes from offline mobile games Increasing Java and Brew support in mobile handsets is boosting the game market Mobile games are mostly from Japan & Korea, few Finnish already in market Price: 0.5-1 USD/download Java Game
Mobile email service has not yet been launched in China Market of the vertical market applications (professional use) is still in initials Location Based Services have certain restrictions Use of VoIP has been banned by China Telecom
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Top 5 Sp of IVR
TOM Mtone Linktone Sina Tencent
Linktone, Sina, Sohu, Tom, Mtone, Any8, Tencent Kongzhong, Nihon, Shenzhen Xuntian, Mobile NAVI, NewPalm Kongzhong, Shandas Digital Red, Magus, 5wan.com, BJ Mig Tencent Sina TOM Linktone Sohu
Top 5 SP of SMS
General revenue sharing model: Revenue sharing model depends on nature of cooperation between operator and SP, SPs and CPs Revenue sharing model is typically 15-20(operator):80-85(service provider) Normally revenue sharing model between SP and CP is 50:50, some times depend on negotiation Recent changes in the model China Mobile plans to use 3 different revenue share models with SPs in the future 1. 15:85 SPs will be responsible marketing 2. 30:70 Operator will cooperate with SP for marketing for some good service 3. 50:50 Operator will be responsible for Sales, marketing and support Operators are gaining greater control over SPs Good for some small SPs if they have attracting services and applications. Operator will help them to do marketing.
CDMA2000 1X
EDGE
China Mobile is deploying EDGE in some selected areas, to better compete with the high data rates of China Unicoms CDMA2000 1x network China Mobile Guangdong branch has newly launched EDGE network in Guangdong province, servicing more than 18 million potential customers in cities throughout the Guangdong province. Service is available with Sierra Wireless AirCard 775 wireless wide area network card
Two fixed line operators China Telecom & China Netcom are operating quasi mobile Wireless Local Loop (WLL) service It offers limited mobility within one metropolitan area The cheap price of WLL service has created price war and is decreasing mobile operators (CM & CU) ARPU There are two main technologies used for WLL: PHS, known as LittleSmart (or Xiao Ling Tong) SCDMA, known as Village Wireless Communication (or Da Ling Tong) PHS is mainly used for cities and SCDMA for rural areas
SCDMA is gaining market share from PHS
August 2005: over 81 million WLL users (55.50 mln as of the end of June 2004) Estimated to reach 100 million users by the end of 2005 PHS Internet access (32/64Kbps) costs about USD 15 cents an hour Average PHS handset price of USD 60 LittleSmart also offers some simple mobile VAS and Internet access with the speed of 64 Kbps WLL users are mainly low-end customers and use for internet access is minimal However, industry experts believe that China Netcom and China Telecom can gradually shift their large WLL customer base into 3G, so it might have heavy impact on the coming 3G competition
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SCDMA
SCDMA, or Synchronous Code Division Multiple Access, is a Chinese home-grown wireless access technology The main developer is Beijing Xinwei Telecom Technology, in cooperation with Datang, Putian Lingyun, TCL, Amoi, Skyworth, Zhenhua, Konka, Hisense, Lenovo, Jinpeng, etc. SCDMA Alliance between domestic manufacturers was established in August 2004 (MII) has designated the 23 megahertz frequency specially for the system Currently the technology is deployed in 106 cities of 16 provinces across China Currently SCDMA WLL (wireless local loop) networks have no broadband service, but the next evolution version of SCDMA will have a possibility to offer wireless broadband access Government has formed a high-level working group to investigate SCDMA possibilities as an choice for wireless broadband access
WLAN
Started in 2001, Large-scale deployment in 2002 by China Telecom, Netcom and China Mobile Equipment market size about $54 million in 2004
Estimated to reach $160 million by 2008 (In-Stat: China's WLAN Market Analysis and Forecast 2003-2008) Mainly in upscale hotels, business centers and media organizations and other public venues About 80% are individual users 20% business users
By the end of 2004, there were about 1,800 hotspots in China There are about 120,000 registered WLAN customers
According to some estimations, the user penetration in urban areas is below 5% Market is still in beginning, but expected to boom in next 5 years Some private companies use wireless LANs, but universities are still the biggest user group Only few domestic vendors. Biggest equipment developers are ZTE and Huawei, with joint research with some universities (SZPKU, Tsinghua Uni, South-East Uni)
WLAN
China has developed own WLAN standard (came to effect in Dec 2003) Standard is called GB15629.11-2003
similar to IEEE 802.11, but uses different security protocol WAPI (WLAN Authentication and Privacy Infrastructure)
Original deadline for vendors to sell only WAPI based equipments was June 2004 To support WAPI, Foreign companies would need to coproduct their equipments with Chinese manufacturers Due to strong opposition from foreign countries (especially USA), China announced to delay WAPI requirements in April 2004 WAPI is still unlikely to completely disappear, since number of manufacturers have already licensed it
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3G
China has not yet adopted 3G 3G license decision is still open Licenses are estimated to be granted during the 1/H of 2006 Final decisions on 3G licenses are to be made in very high political level; probably above the telecom regulator Ministry of Information Industry (MII) Possibly all 3 standards will be adopted
Government is revealing very limited information about licenses in beforehand Currently there is no official & reliable information available about the timetable or operator requirements MII has already run several 3G tests to compare different technologies
China has developed her own 3G standard, TDSCDMA (see chapter 5.3) A total of 155 MHz spectrum has been scheduled for TD-SCDMA Country is big enough to support own standard. Goal is to keep the invested money (infrastructure, R&D) in China. Mainly due to political reasons country will most likely also adopt CDMA2000 and WCDMA
3G licenses
There will be no license auction China Mobile favors WCDMA China Unicom is already testing CDMA2000 EV-DV and EV-DO Fixed line operators China Telecom and China Netcom are also likely to get 3G license Smaller fixed line operators China Satcom and China Railcom will also get the license? Lot of guesswork about licenses, whole industry is waiting WTO membership should open doors for foreign operators, but that will take time
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TD-SCDMA development
Datang Telecommunication technology (former China Academy of Telecommunication Technology) is the most active TD-SCDMA developer The biggest manufacturers have formed number of Joint Ventures for TD-SCDMA R&D The Chinese Government has already invested more than 1 billion (US$123.3 million) in the research and development (R&D) of TD-SCDMA Domestic companies have got heavy public subsidies for TDSCDMA development TD-SCDMA developer pool
TD-SCDMA
Pros:
ITU standard, belongs to 3GPP TDD technology, fully compatible with GSM and GPRS Easy to upgrade from existing infrastructure Efficient use of spectrum Effective data transmission. Asynchronous uplink downlink, suitable for Internet traffic Use of Smart Antenna technology Good mobility: > 120 km/h Large cells, with diameter up to 40 km
Cons:
Standard development far behind rivals. Standard is very immature, no commercial use so far No large scale support from industry. Only few TD-SCDMA chips available Lack of equipments and handsets. No mass production. No uniform platform for applications -> No application developer pool Some unsolved technical problems:
Cell interference large cell area functions high speed mobility poor stability of existing ICs Power consumption of handsets
TD-SCDMA forum Industry consortium devoted to develop and support TD-SCDMA technology Established in Dec/2000 by China Mobile, China Telecom, China Unicom, Datang, Huawei, Motorola, Nortel and Siemens More than 420 members
16 Board Members 18 Senior Members 390 ordinary members
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Source: http://www.tdscdma-alliance.org
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3G testing
China Academy of Telecom Research (CATR) is running the 3G testing 3G test has been ran in two phases: 1) Laboratory testing in CATR test lab and 2) field test with all 6 national telecom operators CATR 3G test laboratory in Beijing is called MTnet. All the field tests have been conducted and ran by CATR under the name of MTnet. MII has Invested almost 25 Million USD on CATR testing facilities First test (phase I & II, Core network and RAN) with all 3 standards was ran at 2001/6 to 2003/8
Results showed that TD-SCDMA was still too immature for commercial use
Initial tests for WCDMA and CDMA2000 have been conducted already several years earlier The special test for TD-SCDMA was arranged during May and June 2005 and completed successfully. More than 20 models of user terminals have gone through the test and results showed TD-SCDMA to be ready for commercialization TD-SCDMA application level testing is still on-going in MTnet.
Problems with terminals, high-speed mobility and cell interference Only one terminal (by Datang) was available for the phase1 field test
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Operators WCDMA trial networks under the MTnet with network supplier information
Network Equipment Manufacturer Huawei ZTE Siemens Nokia Ericsson Nortel Alcatel Motorola UT Starcom Lucent Guangzhou Post & Telecom Equipment Co., Ltd Eastcom China Railcom (10)
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Beijing
Shanghai
Guangzhou
China Netcom (10) China Mobile (10) China Netcom (10) China Telcom (10) China Mobile (10) China Netcom (10) China Netcom China Telecom (10)
Operators CDMA2000 (EV-DO) trial networks under the MTnet with network supplier information
Network Equipment Manufacturer Huawei ZTE Ericsson Nortel Samsung Lucent Motorola Putian Capitel Dalian LinkAir
Operators in Beijing
Operators in Shanghai
Operators in Guangzhou
China Unicom (20) China Satcom (10) China Mobile (10) China Netcom (10) China Telcom (10) China Mobile (10) China Netcom (10) China Satcom (5) China Unicom (10)
3.5G
Since China has been delaying 3G licenses so long, there will already be commercial HSDPA solutions available by the time Chinese operators start to build up their 3G networks Operators will have change to jump directly to HSDPA in some selected areas Huawei and ZTE have announced to launch commercial HSDPA solution in 2006 NEC and Samsung will launch HSDPA handsets early 2006 China Mobile will conduct HSDPA trials in Beijing in Dec 2005 with various vendors Datang Mobile has announced to launch a single carrier HSDPA solution for TD-SCDMA in the 1/Q 2006 Datang Mobile has partnered up with Alcatel Shanghai Bell to develop HSDPA solutions for TD-SCDMA TD-Tech (SiemensHuawei JV) has plans to launch commercial TDSCDMA/HSDPA products in the 1/Q 2006 T3G Technology (Datang-Phillips JV) will release the TDSCDMA/HSDPA chipset and system solution (single carrier, data support up to 2.8Mbps) in the 2/Q 2006
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Wimax
Wimax has lot of potential in China, since the fixed line network penetration is still rather small Government sees 3G and Wimax as complementary technologies and they have different demand on market. However, so far there is no clear action from government about Wimax Biggest Chinese networks equipment manufacturers, ZTE and Huawei, are both very active on Wimax Other active Wimax players in China are Intel and Alcatel Shanghai Belling Many of the current research projects are focused on the interoperability of WLAN and Wimax As a result from TD-SCDMA project and FuTURE project, there will be a need for a Chinese version of Wimax. Some research institutes and companies (such as Wireless Core, ZTE, Huawei) already have activities about this. Research for Chinese Wimax has just started recently and government has not yet given any official deadlines for forming the standard. Government is forming the responsible body to run the research
The Wireless Technology Innovation Institute of Beijing University of Post and Telecommunication (WTI-BUPT) is one of the most active research institutes studying Wimax in China WTI-BUPT has WiMAX Partnership Agreement with Picochip (UK) WTI-BUPT will use picoChip's WiMAX reference designs and PC102 processor within its research programmes Two parties will work together to develop commercial WiMAX systems optimised for the special needs of the Chinese market picoChip has also signed a cooperation agreement with the Institute of Computing Technology (ICT) of the Chinese Academy of Sciences (CAS) to collaborate on the acceleration of WiMAX in China
Mobile TV Currently the coming 3G is the big topic and mobile television is not widely discussed yet Still no government decision about used standard so far (could also be DVB-H) JV company of Shanghai SMG and has recently begun the DMB Mobile TV trial in Shanghai China is also developing own standard for mobile television Several parties have propositions for standard; Tsinghua University is strongest among them
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UWB
UWB technology is most suitable for short range transmission, with distances up to 10-20 meters In longer range transmitting UWBs signal becomes too weak Chinese government has no official plans about UWB, but China Academy of Telecom Research (CATR) has some small scale UWB research going on for consultancy purpose to support governments spectrum investigations In 2004 NSF (Natural Science Fund) has published UWB research fund (1.8 million Yuan) for public bidding as one of the key programs of the NSF Department of Information Sciences
B3G 4G
Currently Chinese research institutes are talking about B3G, not 4G There are basically two branches of B3G research:
Datang Mobiles Beyond TD-SCDMA B3G research under the FuTURE project
B3G research in FuTURE Project will be discussed more in details in chapter 8.3
Long Term Evolution for TDD Schemes proposed for LTE TDD
MC TD-SCDMA
Enhanced Technologies
China has a planned economy, using 5-year plans Each 5-year plan gives guidelines and goals for domestic industry In the current 5-year plan (2000-2005) mobile industry has been selected as one of the key industries Mobile industry is in a tight control of the Central government Some of the biggest national research programs are also included in 5-year plans All the operators and number of equipment manufacturers are either fully or partly government owned
Ministry of Information Industry (MII) is the telecom regulator Many of the research activities for wireless technologies are under the Ministry of Science and Technology (MOST) Main focus of governments research investments is in mobile technologies. Same goes to the state owned companies operations
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Under MII Telecom research and consulting to support MIIs policy making The main body in organizing governments research and funding programs for wireless technologies standardization and development Core business divided into 7 department
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The Research Institute of Communications Policy is the specialized policy-making consulting department of CATR under MII. This Institute is the main supporting organ serving China communications competent authorities in the policymaking work. It has in-depth participation in telecom industry policies, regulatory policies, laws & regulations and telecom industry development plan stipulation for a long period of time. Customers:
Ministry of Information Industry State Development and Reform Commission Ministry of Science and Technology The governments at various levels including provincial and municipal Communications Administrations Telecom operators and manufacturers Monetary securities & investment institutions R & D institutions at home and abroad
7. Policy making and public sectors role 7.3 CJK Standards Meeting
There are 4 governmental entities launching nationwide public research funding projects: MOST, National Planning and Reform Bureau, MII and China Academy of Science (CAS) Each of them have their provincial departments, who have the right to fund regional level research projects. Beijing, Shanghai and Shenzhen are most active cities in launching regional projects Typically in governments research projects there is an expert group that initiates the project, which is then published for public bidding Usually any companies and research institutes can apply for these projects In communication technologies largest projects include research on 3G Networks, TD-SCDMA, FuTURE (B3G), CDMA2000, WCDMA, NGN, LAS-CDMA In government funded projects companys self-funding ratio is usually 50% Sino-foreign JVs can also get public funding, if the majority (51% or more) of the investment and ownership is domestic.
In national level there are currently 5 main research programs going on in China (NSF, 863, 973, Starfire & Torch). Among them, NSF & 863 include funding for wireless technology development Additionally there are large number of regional research projects Many cities have public funds for SMEs high technology R&D
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863 Program
The National High Technology and Development Program of China Started first time in March 1986 Original program was temporary, but is now continuous and covers whole country 6 main research sectors, including Information Technology In IT sector, Wireless technology falls under the sub-branche of Communication Technology Annually 3-5 major projects in each main sector Single project funding are between 0.12-2.5 Million USD About 80% of the projects are around 1.2M USD Some projects involve foreign companies as well The most important sub-program for wireless technologies is called FuTURE project
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The FuTURE Project The Mission is to establish universal radio experiment environment that can meet the application demands and technique trends headed for the years around 2010 Integrates layered wireless communication systems via IPv6 core networks In broadband side it focuses on Cellular Layer (B3G/4G mobile) and Areas Layer; WxAN (WLAN/WPAN/WHAN)
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The FuTURE Project The 1st phase included vision, spectrum and technology trend evaluations (FuTURE) and Demo systems and application development and standard candidate proposals (FuTURE+) 2nd Phase, FuTURE II (2005-2010) is for trial & pre-commercial systems and standardization work
meeting the trends and needs in the field of wireless telecommunications in the next 10 years to carry out investigations on key technologies for air interface of beyond 3G/4G mobile communication system to set up demo systems to verify the key technologies that can support future wireless services to improve Chinas overall research capabilities in mobile communications Enhance Chinas international competitiveness during the standardization process of future beyond 3G/4G wireless communication systems
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FuTURE technology framework OFDM/GMC + TDMA/FDMA based multiple access Distributed radio architecture for improved coverage IDMA for better multiple cell frequency use Add-on techniques:
Powerful iterative receiver (turbo receiver) Advanced Turbo/LDPC channel coding/decoding Unified MIMO and adaptive time slot structure
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Achievements Active international cooperation on research and standardization Cooperation with Japan and South-Korea Big number of patents from funded sub projects FuTURE B3G test network in Shanghai
FuTURE Forum
Established in 2004 Non-Governmental & non-profit organization Jointly founded by operators, equipment providers, universities and research institutions both in China and abroad Objectives:
to clarify the vision of future mobile communication development; to assess new trends and new technologies, and to promote the research in B3G field; to realize the sustainable development of mobile communication through international cooperation between China and the rest of the world
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Source: http://www.chinab3g.org/english/futureproject.htm
FuTURE Forum
Working scopes:
To report to governments and relevant organizations the viewpoints and suggestions proposed by Forum members; To provide suggestions to initiate the R&D projects as well as the standardization research To promote international cooperation between the Chinese and overseas organizations by organizing conferences and seminars To organize research and discussion activities of the Forum members and to publish professional reports and white papers To communicate and work with other international consortium To sort and provide with the latest relevant information
The Wireless Technology Innovation Institute of Beijing University of Post and Telecom (WTI of BUPT) Tsinghua University in Beijing South-East University in Nanjing and Xian JiaoTong University Shanghai Wireless Communication Research Center (Wireless Core)
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Wireless Core
Shanghai Research Center for Wireless Communications is a Non-profitable organization established in 2003 by Ministry of Science and Technology (MOST), Chinese Academy of Science (CAS) and Shanghai Municipal Government. SHRCWC annual research budget is approx. 3 million Euros and mainly funded by conducting research projects for government. Wireless Core is focused on B3G research and is a member of the FuTURE project. Wireless Core operates the FuTURE B3G test bed in Shanghai. Research is focused on physical layer. It has active cooperation with private companies and its partners include for example China Netcom, Huawei, ZTE, Nokia, Ericsson, Siemens, Motorola and key universities. Wireless core has around 100 employees and the total number (including students) is around 160. About 80 of the permanent employees are researchers.
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State owned companies are mainly focusing on 3G and B3G research Majority of the companies still having very limited R&D resources Most of the wireless technology companies buy the core technology from foreign (U.S., Taiwan) companies Most prominent companies in terms of R&D include ZTE, Huawei, Datang and Putian Current trend is to establish Joint Ventures with foreign companies
Examples: T3G by Datang and Philips, JV by Huawei and Siemens ($100 million- plus), JV by Putian and Nokia ($111 million) , R&D lab by Nortel & Datang
Network equipment manufacturers: ZTE: GSM, CDMA2000 3X, WCDMA, TD-SCDMA, WLAN, Wimax, PHS Huawei: GSM, GPRS, CDMA, WCDMA, TD-SCDMA, WLAN, Wimax Putian Capitel: CDMA2000 1X, WCDMA, TD-SCDMA Datang: GSM, CDMA, TD-SCDMA, BTD-SCDMA
Generally speaking domestic manufacturers have too much focus on production capacity at the expense of R&D investments
3G licenses will probably be granted in 1/Q 2006 The whole industry is waiting to get confirmed information License decision will determine:
Scale of TD-SCDMA adoption WCDMA vs. CDMA2000 Winners and losers among manufacturers
This new plan will affect the situation of China Telecommunication industry and 3G license issue.
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Other
Consolidation among service providers is expected to happen in near future due to changes in revenue scheme New Telecom law to be released in 2006?
will likely outline the gradual opening of VoIP services for foreign players in China Other changes and outlines
Domestic manufacturers to partner up more and more with foreign players Governments decisions will remain unpredictable
Huge demand of Mobile VAS market Booming VAS market creates huge need for premium content and innovative applications Branded content and high quality games Market for professionally used applications is starting to grow Localization is required (language and culture)!
Fulfill the needs of operators Near future, especially the coming 3G era, will see a boom on network investments
Both green field and upgrades
Already need for reliable and effective billing, provisioning and CRM systems DRM systems Tools for network planning and optimizing Sharing the experiences in 3G business model
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Converging the diversified infrastructure Multiple standards need interoperability Multimode handsets Unified platforms Services for different platforms