About Mobile VCE

1
Wireless Telecomms in China Korea Industry
Overviews Walter Tuttlebee Mobile VCE
2
Brief Industry Overviews

• Topics
• National Priorities
• Government Players Research Bodies
• Telecom Operators Manufacturers
• Academia
• Interactions the national ecosystem
• Firstly China, then Korea

3
China
Industry Overview
Changing Priorities - From Little Red Book to
Little Red Phone (Sculpture in the teams Hong
Kong hotel)
4
Industry Overview - China

• Perspective
• In October 1983 a conference of policy leaders
  in Beijing called on China to study the concept
  of The Third Wave, as introduced in our book by
  that name
• Since then top Chinese leaders have strongly
  supported the idea that China should
  simultaneously (ie alongside classic
  industrialisation), and as rapidly as possible,
  try to build a knowledge intensive economy
• Extracts from Revolutionary Wealth, Alvin Heidi
  Toffler
• The Third Wave was published in 1980 and was a
  highly prescient forecast of the digital economy
  we are still only just entering
• 1st wave Agricultural, 2nd wave Industrial,
  3rd wave Information revolution

5
Industry Overview - China

• National Priorities in Telecom
• Teledensity growth - from 1 (1990) to 63 (2006)
• 2002 The largest single geographic telecoms
  market
• Key Imperative Economic and Technical
  Independence
• National Priorities (as described by MII in
  2004)
• 1st Provision of communications services -
  to facilitate economic and social growth
• 2nd Growth of indigenous industry - to
  reduce reliance on imports
• 3rd Development of own technology - to
  reduce IPR costs and to create export
  opportunities

6
Industry Overview - China

• Relevant Government Agencies
• Ministry of Information Industries MII
• Provides strategic direction to industry, with
  responsibility for industry policy, regulation
  spectrum management
• Ministry of Science Technology MOST
• Responsible for development of Chinas science
  technology base, overseeing the 863 programme,
  including FuTURE
• State Administration of Radio, Film Television
  SARFT
• Regulates and controls broadcasting and content
  provision
• National Development Reform Commission NDRC
• Higher level than the ministries, the NDRC
  develops national economic and social strategies
  - such as the 5 year plans which determine the
  framework within which MII, MOST SARFT must
  operate

7
Industry Overview - China

• Research Bodies
• CATT Chinese Academy of Telecoms Technology
• Hard product related research
• Eg parent of DaTang Telecom, pioneer of TD-SCDMA
• CATR Chinese Academy of Telecoms Research
• Soft research analysis advice
• Eg responsible for the 3G trials in recent years
• Independent Research Bodies
• Eg SHWCRC Shanghai Wireless Comms Research
  Centre, independently operated, but with
  well-coordinated backing and support from the
  state, the local Government, ministries,
  universities, etc,

8
Industry Overview - China

• Telecom Operators
• China Mobile
• China Unicom
• China Telecom
• China Netcom
• China Satcom (smaller player)
• China TieTong (smaller player) (previously China
  Railcom)
• The State has control and majority ownership of
  all the companies
• The companies are also financed through the Hong
  Kong stock market eg Vodafone owns a few of
  CMCC
• A reshuffle has been widely expected now for 3
  years

9
Industry Overview - China

• Infrastructure Manufacturers
• Huawei, ZTE, Datang have emerged as the major
  players
• Integrated providers of infrastructure
  handsets, often using predominantly their own
  in-house designed chipsets
• Huawei
• Employee ownership unusual
• Export focus on the West
• Rapid recent growth in export sales 8bn in 2005
• ZTE
• Export focus on developing nations
• DaTang
• Pioneer of TD-SCDMA, poised for payback growth

10
Industry Overview - China

• Handset Manufacturers
• Global Handset Market Size in 2006 1bn units
• of which 450m were made in China
• A Changing Scene
• 2004 proliferation of local handset
  manufacturers
• Reflecting restricted access to local sales
  channels, especially in the Mid and West of China
• Recently, the international majors have increased
  local production, aggressive brand promotion
  improved distribution
• China Handset Market Size in 2006 120m, of which
• Major international brands 70
• Local brands 30 - no company gt5
• - many companies 1-3
• Partnershipseg TCL-Alcatel, Bird-Sagem
• and 30m (?) copy phones !

11
Industry Overview - China

• Universities
• A few very strong Universities in telecoms
• Funded by MOST through the FuTURE
  programme Future Technology for Universal Radio
  Environment
• Fed into the 3G TD-SCDMA
• Feeding into the ITU 4G standardisation process
• Coordinated collaborative and competitive
  programme
• Long Term 10 year sustained funding
• Universities work with industry
• Supplying technology (esp to Chinese companies)
• Learning (eg from foreign companies)

12
Industry Overview - China

• Interactions An Effective Ecosystem
• A 2004 Perspective

13
Korea
Industry Overview
A view of Seoul from the surrounding mountains
14
Industry Overview - Korea

• National Priorities in Telecom
• Key Imperative Exports
• ICT is 45 of Koreas Export Income
• ICT, esp. telecoms, has driven Koreas rapid
  economic growth
• A Coordinated National Strategy IT 8-3-9
• 8 new services
• 3 new infrastructures
• 9 economic growth engines (technologies)
• A 5 year plan 2002-2007
• Close industry-government collaboration to define
  deliver
• Specific itemised public-private funding
  commitments, broken down by technology, by year,
  etc
• With specific result targets eg ICT export goal
  for 2007 etc

15
Industry Overview - Korea

• Relevant Government Agencies
• Ministry for Information Communications MIC
• Works closely with industry (and ETRI), with
  responsibility for industry policy, regulation
  spectrum management future evolution
• Experienced, technology-literate, leadership
• Very active export promotion Korea as a global
  testbed

16
Industry Overview - Korea

• Research Bodies
• ETRI Electronics Telecommunications Research
  Institute
• Founded in 1976
• 2,300 staff
• Wireless communications a core focus
• Claims to have spun out over 200 companies
• Close links with Government (MIC)
• Close links with industry technology transfer
  (eg WiBro)

17
Industry Overview - Korea

• Telecom Operators
• Wireline KT (93), Hanaro
• Wireless SKT (51), KTF (32), LGT (17)
• Mature, technologically advanced saturated
  market

18
Industry Overview - Korea

• Infrastructure Manufacturers
• Samsung, LG
• Integrated providers of infrastructure
  handsets, often using predominantly their own
  in-house designed chipsets
• Built their business on CDMA
• Diversifying effectively into 3G
• Strong RD (esp Samsung)

19
Industry Overview - Korea

• Handset Manufacturers
• Serious global players, competing highly
  effectively
• Built the business on CDMA in the 1990s
• Diversified effectively into GSM
• High-end phones fashion leaders, technology
  leaders
• World leaders now in 3G, HSDPA, Mobile TV
  handsets
• Samsung world 3 (4Q 2006)
• LG world 5
• Pantech Curitel world 7
• Supplier to Verizon, Disney Mobile
• Recent expansion has caused cashflow problems

20
Industry Overview - Korea

• Universities
• A number of strong Universities in telecoms
• Well linked into the global academic network
• Well connected with ETRI Korean Industry
• Undertakes funded research for both

21
Industry Overview - Korea

• Interactions An Effective Ecosystem
• A 2004 Perspective

22
Industry Overview Common Features

• Despite major differences between them
• Both countries have clearly articulated national
  priorities, reflected in strong industry
  ecosystems
• Both countries make effective use of University
  research, pulling it through to trials and
  commercialisation
• Research Institutes also play an important role
• now lets look in more detail ?

23
(No Transcript)