2010’s Top 10 Buzzwords for China’s Telecom Industry

China Academy of Telecommunication Research of MIIT recently published an article on China’s top 10 telecom buzzwords for 2010. Below are the selections. We translated and included some of their accompanying information. 1. Tri-network integration The tri-network integration is the integration of telecom, radio and TV, and Internet. After the integration, customers may use phones, TV sets, computers or other devices to surf the Internet, watch videos, make calls or enjoy other services that used to be exclusive to only one kind of network. On 1 July 2010, the State Council released the list of the first batch of 12 pilot cities for the tri-network integration including Beijing, Shanghai and Wuhan in order to explore integration patterns. The tri-network integration will be completed between 2013 and 2015. According to preliminary estimates, the integration will boost investments and consumption by more than 600 billion yuan in the markets of related industries. Of those industries, 249 billion yuan will be used for investing in upgrades to telecommunications broadband, the transformation of two-way networks for TV broadcasting, the development of the set-top box industry, and the construction of the audio and video content-based information service system. 2. Internet of Things The Internet of Things is a network of real-world objects linked by the Internet and interacting through web services. In March 2010, China set up its first Internet of Things center in Shanghai with a total investment of 800 million yuan (117.13 million U.S. dollars). The 170,000-square-meter center is designed to study technologies and industrial standards in the field. In the government work report delivered to the National People’s Congress (NPC), the country’s top legislature, Premier Wen Jiabao set forth an ambitious plan for the country to mount the commanding height of science and technological innovation, such as in the field of Internet of Things. 3. Cloud Computing Cloud computing as a service can generate enormous benefits. Inspired by the bright future of cloud computing, China’s government bodies, manufacturers, users, media and research institutions are paying close attention to the development of cloud computing and engaged in accelerating the surge of the industry. In December 2010, China Telecom has announced cloud computing trials in four cities as part of its cloud computing strategy codenamed "Star-Cloud." The cities include Beijing, Shanghai, Guangzhou, and Chengdu. China Telecom’s research institutes inBeijing and Guangzhou also co-compiled "Recommendations for Developing China Telecom’s Cloud Computing," which lays out the operator’s development targets and positions regarding three layers of cloud computing: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). 4. Mobile Internet The mobile Internet users in China has achieved 243 million in Mainland China in the third quarter of 2010, increasing 13.15% from the last quarter and 39% up from the same period last year. Internet music services, online news and search engines are China’s Internet users top three choices when they access to the web. 5. 3G Networks 3G users in China have exceeded 20 million in May 2009. The government body expects the number to grow and reach 150 million by the end of 2011. Investments in 3G networks in 2009 were at US$23 billion and the country spent another US$880 million in the first quarter of 2010. Currently, China has three different 3G networks. China Mobile operates the homegrown TD-SCDMA, China Unicom offers WCDMA (Wideband Code Division Multiple Access), which is popular in Europe, while China Telecom is on CDMA2000, which is widespread in the U.S. 6. Pay by Mobile Mobile payment system allows subscribers to directly brush mobile phones to take a bus, take subway, pay for coffee, and so on. According to a report released by iResearch, the transaction size for China’s mobile payment market in 2009 was 2.4 billion yuan ($353 million), double that of 2008. It is estimated that the market reaches 2.85 billion yuan ($419 million) by the end of December 2010. At present, China Mobile, China Telecom, China Unicom and China Union the country’s three biggest operators are all actively promoting their own mobile phone payment applications. 7. Smartphone Driven by the rollout of 3G networks as well as faster mobile Internet access, China’s smartphone market will experience the largest growth worldwide, quadrupling to reach a compound annual growth rate of 29 percent by end 2015, according to a new report released by Coda Research Consultancy. At present, the growth has been hampered by the shortage of affordable TD-SCDMA-compatible handsets. The next-generation iPhones is not compatible with TD-SCDMA. Thus the locally made, inexpensive 3G smartphones will solve the problem and lead the sales boom in China. It is estimated that sales of smartphones in the country will reach 97.6 million units by 2015. 8. Internet Information Security While the information industry in China has been growing rapidly, the country is facing a severe challenge on information security issues. The Minister of Industry and Information Technology has set up the country’s priorities to ensure security. In the meantime, the government bodies are studying how to implement real name registration on mobile phones and the Internet. 9. TD-LTE LTE is the primary technology behind 4G – the evolution of 3G networks. Where 3G made mobile data a reality, 4G will make it a much better one. LTE stands for Long Term Evolution, and it lives up to its name. TD-LTE stands for Time Division LTE, and was developed by China Mobile over the last three years. TD-LTE has much faster upload and download speeds than 3G. It also can be pretty cheaply and easily upgraded to the existing standards. China Mobile is now pushing hard to gain better international recognition for the technology, and ZTE unveiled two TD-LTE base stations in early June. 10. Microblogging The "2010 Annual Report on China Microblogging," released by the Public Opinion Research Laboratory of Shanghai Jiao Tong University, predicts that an explosive growth in the number of China’s micro-blog users is expected to appear around the year of 2012 and 2013, and the market will be mature in 2013. As of October 2010, the number of users who access China’s microblogging service has reached 125.2 million, and the cumulative number of active registered accounts exceeded 65 million. In a survey conducted China Youth Daily Social Investigation Center, 87.3 percent of people indicated that they log on to microblogs to learn about people’s attitudes concerning public events or incidents and make comments on it; 62.5 percent said microblogs have become channels for the release of information and also one of the sources of public information.

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