ZTE and Huawei Claim Lions Share of China Mobile’s PTN Purchasing
The two companies each win 35 percent of first stage of technology rollout.
Telecommunications gear makers ZTE and Huawei were the big winners in China Mobile’s massive equipment purchases for the build out of its first Package Transport Network (PTN), with each company garnering a 35 percent share of the revenue, according to iSuppli Corp.
PTN is a connection-oriented transport network technology. Based on Internet Protocol (IP), PTN is applicable to a multi-service environment and capable of accessing, converging and transporting “Time Division Multiplex (TDM) over package” services.
After China’s telecom restructuring in 2008, the nations three carriers were granted rights to provide full-range services and 3G in China. However, there are bottlenecks in the transmission of data from the base station to the IP networks. To resolve the pressures from 3G mobile broadband traffic growth, carriers plan to build IP-oriented transport networks.
China Mobile was the first to make the effort to invest in PTN, announcing unified bidding in December 2009. The winners in the first order of the bidding process were ZTE, Huawei, FiberHome, Shanghai Alcatel-Lucent and Ericsson.
The specific amount of PTN equipment included in the deal was not announced. However, the first purchase is estimated at no less than 50,000 pieces of equipment. Huawei and ZTE each garnered about 35 percent of the orders from the deal.
FiberHome, a domestic optical equipment vendor, ranked third with a 15 percent market share. The company also produces PTN equipment for Ericsson, which won 5 percent of the deal.
Shanghai Bell Alcatel, the joint-venture of Alcatel-Lucent and Shanghai Bell, grabbed 10 percent market share and ranked fourth in this bidding. The other bidders are Nokia-Siemens and New Postcom from Guangdong Province.
After the restructuring in 2008, China Telecom purchased China Unicom’s CDMA network. China Unicom merged with China Netcom to form the new China Unicom. After the restructuring, both China Telecom and China Unicom must deal with the network integration of fixed networks and mobile networks.
In contrast, China Mobile has a relatively simple network architecture. The goal of improving the base station network and data transport capability is clear. That’s why China Mobile is leading the PTN purchasing among the three carriers.
In order to offset the lack of TD-SCDMA terminals, China Mobile planned to increase the number of such terminals in addition to handsets. By customizing mobile network terminals, including USB Modems, netbooks, e-readers, mobile home gateways, video surveillance terminals, China Mobile is promoting TD-SCDMA from mobile phones to wide-ranging terminals. The promotion of multiple TD-SCDMA terminals is no doubt intended to raise mobile broadband demand in 2010.
iSuppli believe the first PTN bidding represents just a test for Chinas carriers. With 3G applications and services widely promoted in the future, China Telecom and China Unicom are expected to launch their PTN bidding in 2010.
Telecommunications gear makers ZTE and Huawei were the big winners in China Mobile’s massive equipment purchases for the build out of its first Package Transport Network (PTN), with each company garnering a 35 percent share of the revenue, according to iSuppli Corp.
PTN is a connection-oriented transport network technology. Based on Internet Protocol (IP), PTN is applicable to a multi-service environment and capable of accessing, converging and transporting “Time Division Multiplex (TDM) over package” services.
After China’s telecom restructuring in 2008, the nations three carriers were granted rights to provide full-range services and 3G in China. However, there are bottlenecks in the transmission of data from the base station to the IP networks. To resolve the pressures from 3G mobile broadband traffic growth, carriers plan to build IP-oriented transport networks.
China Mobile was the first to make the effort to invest in PTN, announcing unified bidding in December 2009. The winners in the first order of the bidding process were ZTE, Huawei, FiberHome, Shanghai Alcatel-Lucent and Ericsson.
The specific amount of PTN equipment included in the deal was not announced. However, the first purchase is estimated at no less than 50,000 pieces of equipment. Huawei and ZTE each garnered about 35 percent of the orders from the deal.
FiberHome, a domestic optical equipment vendor, ranked third with a 15 percent market share. The company also produces PTN equipment for Ericsson, which won 5 percent of the deal.
Shanghai Bell Alcatel, the joint-venture of Alcatel-Lucent and Shanghai Bell, grabbed 10 percent market share and ranked fourth in this bidding. The other bidders are Nokia-Siemens and New Postcom from Guangdong Province.
After the restructuring in 2008, China Telecom purchased China Unicom’s CDMA network. China Unicom merged with China Netcom to form the new China Unicom. After the restructuring, both China Telecom and China Unicom must deal with the network integration of fixed networks and mobile networks.
In contrast, China Mobile has a relatively simple network architecture. The goal of improving the base station network and data transport capability is clear. That’s why China Mobile is leading the PTN purchasing among the three carriers.
In order to offset the lack of TD-SCDMA terminals, China Mobile planned to increase the number of such terminals in addition to handsets. By customizing mobile network terminals, including USB Modems, netbooks, e-readers, mobile home gateways, video surveillance terminals, China Mobile is promoting TD-SCDMA from mobile phones to wide-ranging terminals. The promotion of multiple TD-SCDMA terminals is no doubt intended to raise mobile broadband demand in 2010.
iSuppli believe the first PTN bidding represents just a test for Chinas carriers. With 3G applications and services widely promoted in the future, China Telecom and China Unicom are expected to launch their PTN bidding in 2010.
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