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tec.News - Harting

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the companies with branches in<br />

their province. Nevertheless, in<br />

certain segments of the market<br />

such as the base stations for<br />

cellular networks virtually all important<br />

parts are still imported.<br />

MARKET VOLUME<br />

It is expected that the turnover<br />

on the Chinese telecommunications<br />

market will be 28 billion US<br />

dollars by the year 2000. The<br />

gross income from telecommunication<br />

services is estimated at 26<br />

billion US dollars. Communication<br />

equipment exports account for<br />

about 3.2 billion US dollars. Since<br />

foreign joint ventures and companies<br />

wholly owned abroad have to<br />

meet the export quotas agreed in<br />

the company's operating permit,<br />

the exportation of equipment will<br />

increase further in the future.<br />

RESEARCH<br />

AND DEVELOPMENT<br />

Telecommunications is not only a<br />

matter of <strong>tec</strong>hnology. In China, as<br />

in all other countries of the world,<br />

it is also of immense political importance.<br />

China looks on the telecommunications<br />

industry as the<br />

driving force of its economy and in<br />

particular as the opportunity for<br />

transferring know-how to improve<br />

the <strong>tec</strong>hnological development situation.<br />

The central government is exerting<br />

tight control over the MII<br />

with respect to the direction this<br />

development takes. The objective<br />

is to be in future primarily a supplier<br />

of systems and know-how for<br />

the international telecommunications<br />

market instead of a customer.<br />

The Chinese government has transferred<br />

responsibility for setting<br />

up the necessary research and development<br />

institutes to the MII<br />

in order to achieve this objective.<br />

Ten national universities are now<br />

concentrating on research projects<br />

in the telecommunications<br />

field.<br />

(Fig. Siemens)<br />

The most well-known of these are<br />

the Beijing University for Post and<br />

Telecommunications, the Chengdu<br />

University of Electronic Science<br />

and Technology and the Jiao-Tong<br />

University in Shanghai. The MII<br />

also has its own research centres,<br />

such as the Chinese Academy for<br />

Post and Telecommunications in<br />

Beijing with 14 affiliated research<br />

centres and the Research Institute<br />

for Post and Telecommunications<br />

in Wuhan.<br />

TECHNOLOGIES<br />

OF THE FUTURE<br />

One of the future projects of the<br />

Chinese telecommunications market<br />

is the installation of a mobile<br />

telephone system based on CDMA<br />

<strong>tec</strong>hnology. It is to be operated by<br />

UNICOM in competition with the<br />

existing GSM system that China<br />

Telecom administers as a virtual<br />

monopoly. For its part, China Telecom<br />

has entered into a contract<br />

with GLOBALSTAR to participate in<br />

the latter's future satellite telephone<br />

system, by means of which<br />

48 systems in near-earth orbit are<br />

to cover the entire world.<br />

In-depth examination of the Chinese<br />

telecommunications market<br />

shows that the intentions and objectives<br />

of the MII are following<br />

world-wide trends: data highway,<br />

Internet, e-mail, electronic commerce,<br />

video access services and<br />

image telephony are also on the<br />

wish list there. Since market saturation<br />

point for speech telephone<br />

systems will not be reached before<br />

the end of the next five years, and<br />

not all <strong>tec</strong>hnical prerequisites<br />

have been met for the other <strong>tec</strong>hnologies,<br />

the Chinese communications<br />

market offers outstanding<br />

opportunities for equipment manufacturers<br />

and service providers.<br />

A MARKET<br />

FOR CONNECTORS<br />

A considerable proportion of the<br />

costs of a telecommunications<br />

system is accounted for by con-<br />

13<br />

People Power Partnership

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