China's Optic-communication Market: Size, Development, and Opportunities, Slides of Computer Science

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Native View of Chinese Optic-communication Market

And Its Potential Opportunities for us

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)

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…….

Optic-Communication development

• 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

Current Chinese Optic-communication market

---Optic Fiber and Cable (2)

• You can not with stand its low prize and its tremendous descend speed.

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2001.1 2002.1 2003.

Corning Korean Chinese

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)

Current Chinese Optic-communication market

---Optic Component ( Passive Component )

• Seven Biggest Optic-Communication company ( Corning, Alcatel, Lucent,JDS Uniphase…) occupies 65% of this market.

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1999 2000 2001

Product Sale

Total Value(Million)

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 )

Company 2002 (Billion) 2003(Billion) China Telecom Inc. (^) 12.3 12.

Union Telecom Inc. (^) 5.4 8.

Web Telecom Inc (^88 )

China Mobile Inc (^12) 13.

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

Company Time Sales Specific Field

JDS Uniphase(Guang Ju Inc) 1995 150M DWDM, Switch, Isolator Attenuator, LEDs,LDs.

Oplink Communications Inc. 2000 132M multiplexers/demultiplexers, filters Circulators, fused fiber-optic couplers

WuHan Telecom Division (Corning Inc.)

1980 120M DWDM, Switch Collimator, Connector, Attenuator, Isolator

Accelink Inc 2000.1 30 M Attenuator, Isolator, Fast Ethernet Switcher

Augoo Inc (Anavex Inc.) 2000 25M Collimator, Connector, Attenuator, Isolator, Fast Ethernet Switcher

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.