Name: Zheng Zhiqiang Course: EE566

1. Native View of Chinese Optic-communication Market And Its Potential Opportunities for us Name: Zheng Zhiqiang Course: EE566 Professor: Dr. Liu

2. My Presentation Process • The reason to pay attention to china • Optic-communication development of china (History view) • Chinese current Optic-communication market ( strongpoint : the field no much different from leading country weak point : the field at least 5 years lagged by leading country the best companies of china in some field) • What’s the potential opportunities for us (Conclusion)

3. The reason of pay attention to Chinese market (1) • China will be the biggest market for optic-communication. (1) Daily Telecommunication service demand increased by more than 20% annually ( Home phone, Cell phone…). ( According the China Telecom Inc. report 2003, the cell phone users exceeded 120 million and the home phone users exceeded 490 millions ) (2) Digital data service demand increase by more than 40% annually ( Internet, Ethernet, Data Storage, CATV….. ) (3) Government encourage the biggest telecommunication corporation to develop FTTH and make some regulations to increase the optic-devices demand.

4. The reason of pay attention to Chinese market (2) • All the biggest corporations try their best to save money and make profit because of Optic-devices market winter from 09/2000-01/2003. (1) Low payment for experienced labor ----As far as I know, a general electrical engineer who had 6-8 years design experience only got 10,000-15,000 USD annually. And I found that the counterpart in US can got 80,000-120,000 USD. (2) Chinese Government give some profitable policy to those high-tech corporation which set up branch in china ---- Low tax or free tax first year, low rent for office and factory…….

5. 70~80 Basic research ( Optic-Fiber, cable, emitter, receiver) 80~90 Single Mode Fiber (140Mb/s) Multimode Fiber (47Mb/s) 90~01 PDH 140Mbit/s SDH 622Mbit/s DWDM 32×2.5Gbit/s TDM 10Gbit/s Conclusion:Start Late, Fiber and Cable develop well occupy half of the whole market. But Component develop slowly Optic-Communication development

6. Current Chinese Optic-communication market ---Optic Fiber and Cable (1) • The most competitive field of the whole optic communication market 2004 optic-fiber demand –10 million miles, but the totally manufacture ability of Chinese fiber corporation is about 30 millions miles ( Or maybe minus 10 millions miles, because about 30% company will be shut down  ) • Many optic-fiber company have the most advanced technology. G.652C/D -- technique is mature, and widely used G.655B/C – widely used by china telecom for long distance communication

7. Current Chinese Optic-communication market ---Optic Fiber and Cable (2) • You can not with stand its low prize and its tremendous descend speed.

8. Current Chinese Optic-communication market ---Optic Fiber and Cable (3) • Potential opportunities for us (1) The coverage of optic-fiber network in china is still small. ( Mainly focus on several provinces). New “ North-Western Exploitation” need more optic-fiber network. (2) Government enforce some provinces to speed the FTTH(Fiber to the home) project. (Mainly because of the 2008 Olympic Games) (3) Rapidly increased demand for long-distance data transmission. ( The long-distance data transmission demand will be 13.7 times over now, but it is only for G.655 fiber)

9. Current Chinese Optic-communication market ---Optic Component (Active Component) • This field is slowly developed , less competitive, and have promising profits.

10. Current Chinese Optic-communication market ---Optic Component ( Passive Component ) • Seven Biggest Optic-Communication company ( Corning, Alcatel, Lucent,JDS Uniphase…) occupies 65% of this market.

11. Current Chinese Optic-communication market ---Optic Component ( Potential chances ) • Although it is the winter for optic-communication market for the world, the biggest four Chinese telecommunication company did not reduce the demand for optic-fibers and component. ---Maybe It is for 2008 Olympic Games. (1 USD = 8.2 RMB )

12. The most strongest Optic-communication Company in china ---Optic-Fiber and Cable Market

13. The most strongest Optic-communication Company in china ---Optical Component

14. Final Conclusion • China is not a good place for a skill worker and experienced engineer. • But ----China is the heaven for the Smart Investor and adventurist.

15. Information Source –Website, Magazine, Periodical • Website http://www.chinatelecom.com.cn/english/ ----China Telecom Inc. http://www.cnuninet.com/uninet/homepage/index.jsp ---China Union Inc. http://www.chinamobile.com/ ----China Moblie Inc. http://www.cnc.net.cn/english/index.html ---China NetCom Inc. http://www.alcatel.com.cn/alcatel/alcatel.nsf-- Alcatel In China http://www.corning.com.cn/sc/inside_corning/corning_in_china/ --Corning In china http://www.c114.net/ ---- China Telecom. Info Center http://www.google.com ----The Most useful website • Magazine, Periodical http://www.ebnchina.com -----Telecom. Magazine http://www.opticfibernews.com/ofn1/index.asp --Optic Fiber New Magazine

16. Thank You for your Patient If some one want know more,you can email me ZZHENG6@BUFFALO.EDU