China market: Push for connection of telecom, broadcasting and Internet networks to create huge demand for equipment

The China government's push for the connection of telecommunications, broadcasting and the Internet is likely to create new investment and demand for up to 600-700 billion yuan (US$87.85-102.49 billion) worth of network equipment in the next five years, according to an estimate by Taiwan network equipment makers.

Sales of the standard ADSL CPE products totaled 15 million units in 2009 in China and are expected to continue growing at a rapid pace this year, buoyed by the integration of the three network systems, the sources noted.

While China-based network equipment makers such as T&W Electronics will receive the bulk of the windfall ADSL CPE orders, Taiwan-based ADSL CPE solution vendor TrendChip Technologies will land the solution orders from China CPE makers, said the sources.

In addition to broadband access devices, the convergence of the three networks will also stir up demand for core, switch and application-oriented networks as well as cable TV CPE products such as set-top boxes (STBs), the sources projected.