New Technologies Increase Potential for Broadband Growth in China

Parks Associates anticipates a thriving market for broadband services in China, estimating the number of users will grow to 13 million by the end of 2003. Chinese Telecom Market: Overview and Analysis, a new report from Parks Associates, notes that this growth is in keeping with recent trends, in which broadband users in China grew from two million in mid-2002 to 6.6 million at year-end 2002, a 230% growth rate in six months. Moreover, the recent commercial launch of a new broadband service based on powerline communications (PLC) technologies may further expedite the development of Chinas broadband services market.

Dallas, TX (PRWEB) Parks Associates anticipates a thriving market for broadband services in China, estimating the number of users will grow to 13 million by the end of 2003. Chinese Telecom Market: Overview and Analysis, a new report from Parks Associates, notes that this growth is in keeping with recent trends, in which broadband users in China grew from two million in mid-2002 to 6.6 million at year-end 2002, a 230% growth rate in six months. Moreover, the recent commercial launch of a new broadband service based on powerline communications (PLC) technologies may further expedite the development of Chinas broadband services market.

Important drivers of the market include the decreasing price of broadband equipment and services, the continuous growth of PCs and Internet users, more appealing Internet content (including pirated movies), and heavy promotions from service providers," said Yuanzhe (Michael) Cai, an analyst for Parks Associates. Also, new service offerings such as PLC services from non-telco competitors can increase the intensity of competition and boost the take rate of broadband services."

These new providers will have to contend with Chinas powerful telecom carriers. Chinese telcos currently dominate the broadband market, with China Telecom in the No. 1 spot. These companies offer a variety of access methods, including ADSL, cable modem, Ethernet + LAN, and Wi-Fi. ADSL, currently with more than three million users, has the majority of the market and the best near-term growth prospects.

In comparison, FibrLINK Networks Co., a broadband services provider controlled by the State Power Telecommunications Center, had just finished PLC field tests in two Beijing residential buildings before launching its PLC commercial services on April 7, 2003.

Besides the strong background of FibrLINK, PLC services also have technological merits," Cai said. PLC technologies use the existing power grid to transmit voice, video, and data at high rates and could become a viable alternative for high-speed Internet service because of the ubiquity of power outlets and the no-new-wires advantage. But in order to compete with telcos ADSL services, FibrLINK has to offer comparable bandwidth and value-added services at reasonable price points. It must also devise effective marketing campaigns to increase consumer awareness."

FibrLINKs services are offered at a price comparable to telcos ADSL services. Users pay 300 yuan ($36) for PLC modems (which are installed for free) and 100 yuan ($12) monthly for broadband Internet access services with bandwidth between 512 kbps and 1.6 Mbps.

Chinese Telecom Market: Overview and Analysis identifies opportunities for international service providers and equipment vendors by analyzing the current competitive landscape, the regulatory changes in the service market, and future strategies of the dominant carriers. The reports unique Chinese perspective clarifies the Chinese governments thought process and agenda on economic reforms and helps readers understand the key success factors of doing business in China.

For additional information about Parks Associates Chinese Telecom Market: Overview and Analysis study, please contact Parks Associates at 972-490-1113 or at sales@parksassociates.com.

About Parks Associates:
Parks Associates is a market research and consulting firm that provides information and analysis on emerging residential, small office, and light commercial technologies. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions.

Its market expertise encompasses the full range of connected-home solutions, including home networks, digital entertainment, broadband and Internet services, and home systems. Parks Associates also hosts two industry events, Parks Forum and CONNECTIONS (in partnership with the Consumer Electronics Association), each year. www.parksassociates.com.