Hello everyone, sorry if this has been posted. although rather long I
found it very interesting! I wonder how long until Jimmy is mentioned in these articles!
Opportunities for VoIP in China
In a country where Internet access is monitored and restricted, and
most of the approximately 1.2 billion residents do not own a
computer, a light is appearing at the end of the voice-over-IP (VoIP)
tunnel. China has announced Internet telephony trials in at least 25
cities after a few months of debate over whether the technology
infringes on the state-run telecom monopoly. And during a time when
the country is making many foreign policy concessions in its
longstanding effort to join the World Trade Organization (WTO), the
trials have the potential to change the nation's telecommunications
infrastructure, the second largest in the world.
In a breakthrough announcement last week, AT&T became the first
foreign telephone company to offer telecom services in mainland
China - with plans to eventually provide Internet telephony in
Shanghai. AT&T will partner with Shanghai Post and
Telecommunication and Shanghai Information and Investment to
offer value-added services to the Pudong special economic zone
within Shanghai, including a VPN and broadband IP service. The
announcement was part of a slew of U.S./China trade deals last week
that included equipment contracts with IBM, Compaq,
Hewlett-Packard, and Motorola estimated at $500 million.
This news comes as a shock, since China has witnessed a fair
amount of controversy about VoIP during the past few months. The
country was forced to reconsider the scope of its laws when two
entrepreneurs were arrested and charged with running an illegal
business because they had provided global phone services over IP. A
local court had ruled against the pair, siding with the telecom bureau
that had pushed for their arrest on the grounds that they were
nfringing on the state's telecom monopoly.
The two entrepreneurs appealed to the higher Fuzhou court in
January, which ruled in their favor, commenting that IP was a
computer information service and that international IP phone calls
are different from conventional PSTN calls. Then, just days before
the AT&T deal was signed, Chinese government officials announced
they would instate a strict permit system for providing IP phone
services, and would begin issuing permits after a six-month
troubleshooting period. Three state-run telco companies - China
Telecom, China Unicom, and China Jitong Telecommunications Co.
are taking part in VoIP trials during the testing period.
James Shen, CEO and founder of network equipment provider
NeTrue Communications, said the recent VoIP trials are very
significant. "I think they will selectively do some commercial
operation in some special zones," he said. The California-based
NeTrue provided development equipment to Rayes Technology
Group last year as part of a plan to develop IP telephony in China,
and five gateways were set up there. Shen, a native of China, said he
thinks there will be a period of adjustment and policy revisions after
the trials, especially if VoIP prices in some cities significantly
undercut PSTN rates. But he hopes the current activity will be a
catalyst for the Internet and telecommunication markets there. "At
least they'll open [the telecom market] up a little in the service "
said Shen.
MediaRing, Inc. also got its hand in the Chinese market last month
when it announced a deal with PC manufacturer Legend Computer
Systems, Ltd., and notebook computer seller Legend Toshiba China.
The companies will bundle MediaRing Talk 99 VoIP software with
their machines. The software allows users to make PC-to-PC phone
calls directly over the Internet, and also offers voice mail and text
chat services. Users do not have to be logged onto the Internet to
make or receive phone calls, and MediaRing's off-the-Net technology
alerts the recipient's computer to dial out and complete the call.
Michael Dean, vice president of corporate communications for
MediaRing, said the software is acceptable in China since the calling
process is purely digital. He said he has observed increased Internet
activity in China during the last year, especially in Shanghai. "I
believe [Internet telephony] will be privatized over the next five years,"
he said. In the meantime, some MediaRing users are already
enjoying the benefits of PC-to-PC voice communication between the
United States and China.
Lucas Guo, a resident of Shenzhen in China, began using Internet
telephony four years ago to speak to his friends in the United States.
But he said the audio and video qualities of the software he was
using made the conversation unclear most of the time. Last year,
when Guo was living in Los Angeles for a few months on business, a
friend suggested he try Talk 99, which has provided better audio
quality. Guo, who returned to China in February, has continued to
use Talk 99 to keep in touch with his friends and sister in alifornia,
although he mentioned he notices a slight time delay now that he's
communicating from halfway around the world. "It is great when I
call them or they call me on work days. Most times it lasts over 10
minutes. That means I save about $10 every day," said Guo.
WHERE IS IT HEADED?
A report recently issued by the Interactive Business Channel (IBC)
showed that China's telecom industry is estimated to grow based on
the nation's 13-year effort to join the WTO, expected to be discussed
during Chinese Premier Zhu Rongji's U.S. visit this week. Internet
use there is estimated to leap from the 2.1 million people who used
the Internet in 1998 to 37 million by 2005. The 1999 China Telecom
Summit & Expo, which will be held in Shanghai in June, is a
reflection of the growth and change the nation is experiencing. The
Expo will feature keynote speeches on IP telephony fiber; switching
technology; wireless, multimedia and satellite communications; and
communication networks. Four breakout sessions will cover IP
telephony, bandwidth, services, and the network.
It is promising that China is re-examining its stance on Internet
telephony during a period when the nation is also making concessions
in foreign policy. A collaboration between the two largest
telecommunication markets in the world could have an astronomical
effect on both the Internet and telco industries. Hopefully, the VoIP
trials will lead to commercialization (however controlled it may be)
a technology that is on the verge of worldwide acceptanc |
