The 2nd China Carriers Forum Held in Bei Jing

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The 2nd China Carriers Forum Held in Bei Jing
The 2nd China Carriers Forum held in Bei Jing, on the 20th March 2014, which is organized by China Genesis Resourcing Consulting China, China Mobile Communication Association and Telecommunication Development Industry Alliance, and sponsored by Neusoft Group and CNLink Networks Limited. The Forum gathered delegates from worldwide carriers, telecommunication equipment, virtual network operator and research institutes to discuss the new development pattern trends of China Telecommunication industry, innovate carriers new business stream and how to overcome the challenges that brought by OTTs etc.
It is the common sense to worldwide carriers that the telecom industry is undergoing the hardest developing period. The carriers are looking for the way out within mobile network era. The Chairman of The 2nd China Carriers Forum Mr. Linzhen Xie, who is the Executive Vice President of China Mobile Communication Association, member of the standing committee of Science and Technology Committee MIIT China (The Ministry of Industry and Information Technology of People’s Republic of China), Director of National Laboratory of Optical Communication of Beijing university indicate in the opening remark that according to China Mobile’s annual financial report, China Mobile annual income was 6302 billion Yuan in 2013, which increased 8.3% on a year-on-year basis, however the net profit was 1217 billion Yuan, decreased 5.9% year-on-year. “China Telecommunication industry is showing three big trends” Mr. Xie presented:” Firstly the 70% of the increased income stemmed from mobile data and related businesses; Secondly 70% of the increase of traffic come from the application of mobile internet; Lastly the percentage of smart terminals to mobile terminals has taken over 70%. That means online video, VoIP application and social network software have become the main source of incremental of telecom business. But that applications have not yet brought extra income for carriers, most of the profit has gone to the pocket of mobile application suppliers.
In the ear of “Network is the King”, carriers are experiencing the pressure of the psychological transformation from ” Any network application can not success without carriers” to “Carriers can not do well in core applications”, and have to face the severe test of “Transparent pipelined”. Nevertheless Mr. Xie believed “Carriers have not got the gene of ‘Inevitable Pipelined’ and not only limited to do traffic management”, he emphasized that “In the following future 10 years, at the same time of that people have enough rich traffic to consume, the human society will achieve subversive breakthrough: one is the mobile finance–currency and capital are existing and growing in circulation, Mobile Internet provides just fertile soil for them, while in China, the Investors’ (10 years younger than worldwide average level) acceptance of mobile Internet is very high— I have no dout that mobile finance will become the huge golden mine in future 10 years”. Besides, Mr. Xie indicate that mobile healthcare, wearable devices and mobile smart traffic ( Telematics, Manless driving) etc. Have also big business opportunities. ” Carriers can not only to be a traffic provider, and as long as carriers can position right in the market, to achieve high speedy development and large business scale like Tencent and Baidu is not impossible at all”.
The advent of the era of the Internet makes all kinds of service based on network application developing rapidly and in geometric growth, no matter from the application type, number of users or number of bandwidth. Therefore, for any type of operation providers’ concerning points or being required points, is not only as simple as the operation business is normal or not. Mr. Xiaoyu Zhang, the National Sales Director of Beijing CNLink Network Technology Ltd (As the level 2 carriers, found in 1999), said frankly: “We feel the business is getting harder and harder to to when we do basic telecommunication services”. In the past, the data services is relatively easy to sell, “The easy day” when customers would not make more hard requirement disappeared in 2012. “We have a strong feel that customer’s requirement are getting higher and higher, the customers want more service that can help them to operate above the basic business services. To face the strong requirement from our customers, we feel deeply that we can not only limited to do basic telecom business, we do not want to be pipelined and be put away.” while Sky-E just represent CNLinks’ understanding and self-positioning in the era of internet.
It is well-known that internet has make a lot of traffic in China, however carriers never analyze where does this traffic come from? Where will this traffic goes to? And the consumers’ behaviour and requirement behind the traffic etc. ” In the past, carriers seldom paid attention to data, but now we can design our products according to user behaviour and customs, including traffic management and early warning of network attack etc.” while SKY-E is just the right integrated sensing monitoring service platform for all kinds of application operation providers (ICP) to provide multi-level network data flow analysis, risk event monitoring and early warning, monitoring analysis of network application state. Sky-E is an useful attempt of CNLink’s transformation at how to avoid being pipelined and how to satisfy the requirement of refinement operations etc.
As the fast development of 4G network business application, the market size of 4G terminals increases dramatically. Recently the three big China carriers have all opened year 2014 terminals’ purchasing planning, the price of the hardware has been very low, will the traditional IT hardware equipment manufacturers have future or not? The answer of Dr. Ningning Liu, the Vice President and General Manager of Telecom Business Unit of Neusoft group, is yes: ” As the application of cloud computing and SDN in our future life, we will encounter problems that we can never imagine now, especially the information security problems. In addition, big data, which has not been transferred into production materials and reused by carriers. From that view, carriers have to learn from Internet companies. What are the Internet companies doing now? They are thinking about how to convert user and stick customers, how to rank members and charge by different rate. To carriers, even a consumer who by a public card on the street can be your “member”, you (carriers) give up billions of members and do not operation well (study big data), only want to learn how to manage members from internet companies, that is really a big paradox.”
” To some extent, Information (security) should rise to the level of national strategy,” Dr. Liu thought: ” Artificial intelligence, cognitive science, psychology and network behavior are driven by the modern science and technology, in the future virtualization society, that matters will produce a new theoretical basis of innovation, that will bring great changes to our lives, and we are far away from being ready to this change. All the paradox and game bring a rare historical opportunity for traditional enterprise. Thus I think there is no need for carriers to study weather being pipelined or not, while carriers should study how to play the right role fitted for themselves.” He further indicated ” in the information consumption era, rationally monitoring means will have a huge market share.”
Mr. Jun Ma, the Deputy Director of Enterprise Research Institute Development Research Center of The State Council of China said that at present there is fierce longitudinal competition in Chinese telecom industry market, carriers faces the pressures from upstream monopoly segment including community and large public facilities, also faces the competition from downstream Internet companies. Internet companies rely on innovation to meet user requirements, so as to grasp the initiative.
During the forum Mr. Lintao JIANG, the Chief Engineer,committee chairman, Ministry of Information Industry and Telecommunications Research Institute. Mr. Huiling Zhao, Professorate senior engineer,Vice President China Telecom Corporation Limited Beijing Institute; Mr. Xiongyan TANG, the Ph.D., Senior Engineer Adjunct Professor of Telecommunication Engineering, Beijing University of Posts and Telecommunications; Guang YANG the Deputy Director, Dr. Professional Communication and Information System, China Mobile Research Institute of Wireless Technology Research, Beijing University of Posts and Telecommunications; Mr. Xueyong ZHOU, General Secretary , China Virtual Network Operator R&D Center; Mr. Kaili KAN, Professor of Policy and Information Industry Development Research Institute of Beijing University of Post and Telecommunication and many other industry gurus have made significant presentations.
In addition, Hua Wei, Potevio, Bewinner Communications, Bus-Online, Sony Mobile, EmiratesTelecommunicationsCorporation, Orange, Deutschen Telekom AG etc. , and many other more Worldwide famous carriers, virtual network operators and telecom equipment companies attent “the 2nd China Carriers Froum”, and discussed industry hot topics including the business application of 4G, OTTs, Virtual Network Operators, new technology trends, network construction directions etc.

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