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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (275)	8/11/2003 12:57:37 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

( BW)(MA-YANKEE-GROUP) Yankee Group Estimates China's VPN Market Will Reach $1 Billion by 2006 Business Editors/High-Tech Writers BOSTON--(BUSINESS WIRE)--Aug. 11, 2003--The new Yankee Group report, "Virtual Private Nets Go to Work in China," finds that IP VPNs are gaining momentum in China, due in part to the growing networking requirements of foreign companies moving into China, and the developing needs of domestic companies expanding overseas. "China's entry into the World Trade Organization provides a major impetus for the IP VPN market, as more multinationals--especially manufacturing companies--move operations into China," says Agatha Poon, Yankee Group Telecommunications Strategies Asia-Pacific senior analyst. "In addition, international expansion by Chinese firms is creating new demands for IP VPN services. Demand also has started to pick up among domestic industries." "As value-added service is set to open for foreign investment, service providers of all kinds, including fixed-line incumbents, independent ISPs, and foreign operators, are set to profit from the potentially lucrative IP VPN market," says Poon. With growth from traditional voice services slowing, fixed-line operators are seeking to offer more value-added IP services over their backbones. Overall, the Yankee Group sees a fundamental change among Asian operators, marking the shift from conventional telco business to IP-centric service operation. The Yankee Group expects the Chinese IP VPN market to have strong growth in the next 3 to 5 years as state-owned and private companies continue to increase their networking requirements within the region. Among a raft of market segments, vertical markets in the finance, energy, government, and transport sectors would be early adopters of IP VPN services. businesswire.com