Plans for Beijing's 2008 Olympics include massive telecom upgrades, details CCA report

22 May 2003 Austin, TX Lightwave -- As part of the sweeping modernization projects for the 2008 Olympics, Beijing Communications Corp., the local operating company serving China's national capital, will invest $6.64 billion over the next 5 years to extend and upgrade its network. This is a fraction of the $37 billion planned for expenditures to host the 2008 Olympics, reveals new research from Communications Consulting Associates.

May 22nd, 2003

22 May 2003 Austin, TX Lightwave -- As part of the sweeping modernization projects for the 2008 Olympics, Beijing Communications Corp., the local operating company serving China's national capital, will invest $6.64 billion over the next 5 years to extend and upgrade its network. This is a fraction of the $37 billion planned for expenditures to host the 2008 Olympics, contends a new market research report, "Beijing's 2008 Olympics-Business Opportunities in Modernizing Beijing's Telecom Networks," from Communications Consulting Associates (CCA).

CCA reports that Beijing Communications Corp.'s $6.64-billion investment, which represents approximately $0.9 billion per year, will support the following objectives:

• Add capacity for an additional 3.4 million fixed network voice lines
• Replace linear optical network connections with rings and upgrade existing SDH rings to higher bit rates
• Develop IP-based video transport networking capable of supporting HDTV
• Introduce mobile service in competition with China Mobile and China Unicom
• Implement WDM and new technologies such as RPR at "edges" of the metropolitan network
• Extend DSL and other broadband access technologies to a higher percentage of Beijing's present 1.7 million Internet users

These ambitious plans for telecom investment come on the heels of several recent and extensive changes in China's telecom industry. Last year, for example, China's Ministry of Information and Industry split the nationwide monopoly service provider into two large regional groups. Also in 2002, China's accession to the World Trade Organization changed the competitive landscape for telecom equipment and service companies. So at the same time that they are adjusting to the telecom industry's new regulatory and competitive structure, China's major operators will undertake substantial upgrades to prepare for the 2008 Olympics.

CCA's 2008 Olympic report describes the rapid changes being planned, the partnerships being formed, the complex workings of the government organizations and telecom companies involved, and the multi-billion dollar expenditures specific to information infrastructure and communications networks planned for the Beijing region. CCA is partnering with KMI Research for sales and order fulfillment of the report. For moiré information, visit www.kmicorp.com/fiberoptics_market_studies/cca.htm.

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