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tec. T o p t h e m a MARKET Telecommunications in China Andreas Limbert, Eric Ng L et China sleep, Napoleon once said. If China wakes it will shake the world. There are currently many signs that the giant is emerging from its slumber, especially in the telecommunications field. GROWTH STRATEGY China's central government recognised the deficits in the telecommunications sector at the beginning of the eighties and declared it a key strategic sector. From then on all five-year plans have contained decisions on promoting the further development of the telecommunications industry and associated services. (Fig. China-Contact) At the beginning of the eighties there were only 3 million subscriber lines in China, providing a mere 0.4 % of the population with access to the telephone network. By 1992 the number of lines had risen to a good 11 million. In 1998 it had reached 116 million, and it is assumed that by the year 2000 there will be about 160 million lines offering 10 % of all inhabitants access to the telephone network. To be able to evaluate this number correctly, it must be borne in mind that in Western Europe and the USA a good 55 % of the population has a telephone. Consequently the telecommunications market in China still holds enormous potential for growth. Responsibility for strategic and conceptional planning and for organising the necessary changes within this sector was transferred to the Ministry of Post and Telecommunications (MPT). The MPT was also put in charge of the installation and maintenance of the main trunk lines that link up the 31 provinces of China and via which all international long-distance calls are switched. Under the leadership of the MPT, 31 provincial Post and Telecommunication Authorities (PTA) were established and given responsibility for the infrastructure and business administration within the respective province. At the end of 1998, the decision was taken to combine the MPT, the Ministry for the Electronics Industry (MEI) and other related ministries to form the Ministry for Information Industry (MII). The 10 HARTING tec.News 4-II-1999
Germany MII's main task is to synchronise the developments taking place in the electronics industry with the China (Fig. IBM) changes in and requirements of the telecommunications industry. In all the phases mentioned China used the most modern technologies available and in some cases whole generations of technology were skipped. SIGNAL TRANSMISSION AND NETWORKS China's geographical size (almost 10 million square kilometres, equivalent to 27 times the size of Germany, for example) was one of the great challenges in the modernisation of the telecommunications network. Three different technologies were used for main trunk lines: fibre optic, microwave and satellite systems. Forty satellite receiving stations now maintain links with the 17 satellites in orbit. An approx. 200,000 kilometre fibre optic trunk line network based on SDH (Synchronous Digital Hierarchy) transmission technology permits bit rates of 622 Mbps and 2.5 Gbps. A 100,000 kilometre distribution network was also laid and 140,000 microwave connections installed. At present (Fig. Dornier) the public dial-up telephone network in China comprises 135 million subscriber lines with 4.8 million local exchanges distributed throughout the country. CELLULAR TELEPHONE SERVICE Parallel to the line connected telephone system, at the end of the eighties China also built up mobile telephone networks. The first analog cellular network was put into operation in 1987 in Guangdong province. There are now 25 million mobile telephone subscribers in China, and it is assumed that this number will rise to 50 million by the year 2005. All 31 provinces have been covered in the meantime. The prevailing technology is currently the digital GSM system, though it has recently been decided to build up a competing network based on CDMA technology. THE INTERNET AND DATA TRANSFER The Internet age dawned in China in 1995 under the name of CHINA- NET. Initially connection was restricted to business subscribers People Power Partnership 11
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