China Telecom Americas Talks International at the Intelisys International Symposium

Representatives from the China Telecom Americas channel team attended the Intelisys International Symposium on February 22nd at City Winery in New York City.  The event brought together a mix of attendees from international suppliers and sub agents from the Intelisys channel community for a full afternoon of thought leadership and discussion on how to grow international business.

This year’s symposium kicked off with a networking lunch and a brief welcome speech delivered by Justin Marano, Director of Partner Sales at Intelisys. Attendees then dove into educational sessions, exploring topics such as global unified communications, network security, SD-WAN and cloud development, addressing regional factors and actionable steps to anticipate challenges and opportunities.

Jingyu Tian, Regional Sales Manager, Wholesale & Strategic Alliances, discussed the current network situation and future network development in China, where recent developments in 5G and IoT technology have global enterprises discussing multi-cloud and hybrid/SD-WAN infrastructures to support the growing demand for network resources at the edge. To learn more about how China Telecom delivers innovations for an IoT future, read about the NB-IoT based smart water management platform we deployed.

Of course, the symposium wasn’t all work and no play. The symposium closed with an afterparty at the Barrel Room, where attendees enjoyed an evening of cocktails, conversation and invaluable networking opportunities.

Visit our Facebook page to see event photos

China Telecom Implements a Low Voltage System for Minghua’s $45 million Spartanburg plant

Company Overview

Minghua USA, a division of Jiangnan Mold Plastics Technology Corporation, specializes in developing, manufacturing and selling plastic products and hi-tech molds to major automobile companies such as BMW, Mercedes-Benz, Volkswagen and General Motors.

To support its North American business initiatives, the company recently invested $45 million into a new 260,000-square-foot facility located in Greer, S.C., a strategic location for companies in the automotive industry.

Business Needs and Challenges

With a new facility arises the need to install network cabling, racks, hardware and more. Minghua needed a network that could provide reliable connectivity for its computers and phones to communicate internally, as well as with its eight China sites and the rest of the world.

However, the customer did not have a team of experts on hand to help design and implement a low voltage system. Due to the number of systems and components required, Minghua was in search of an experienced US partner that understood standard compliance and how system design would work in unison with equipment.

Why China Telecom Americas

Minghua selected China Telecom Americas to design and implement its low voltage system because of its previous success with low voltage projects and its strong domestic support and network presence in China.

China Telecom Americas designed and implemented everything from structured cabling, access control, security surveillance, server room UPS and A/C and digital signage to their IT network, IP private branch exchange and Wi-Fi system. In addition, CTA provided low voltage equipment and installation, configuration services and a dedicated on-site project manager to interface with the client.

Calvin Qing, IT Manager, Minghua HQ, says, “It was no small achievement to roll out a low voltage system with so many sub-systems in a short time frame, especially with plant build-out, EDI testing with BMW and order changes, and China Telecom Americas demonstrated great project management and allocated all of its available internal resources to ensure the project was delivered on time. In fact, the system was completed ahead of schedule.

We feel that the project was customized for our needs and delivered with exceptional attention to detail and a high level of responsiveness.”

Media Contact:

Ryan Oklewicz, press@ctamericas.com, (703) 787-0088

China Telecom, Shenzhen Water Group Deliver the World’s First Commercial NB-IoT-based Water Management Platform

In recent years, Shenzhen has seen escalating water problems. The city was listed among the top 10 most water-scarce cities in China in 2015 and could face a water deficit of 694 million cubic meters per year by 2020.

That’s why the city is prioritizing water management to better plan, distribute and manage the use of water resources.

China Telecom and Shenzhen Water Group have teamed up to launch the world’s first NB-IoT-based smart water project, in which the city collects real-time data from 1,200 smart water meters and monitors pipe networks and water quality control to 4,500 people.

The smart water management platform runs on China Telecom E-Cloud 3.0 and aims to demonstrate the benefits of NB-IoT connected smart meters through transmission reliability and signal penetration tests.

Prior to the pilot test, Shenzhen Water Group had been sending utility staff to customer properties and had problems measuring, identifying and resolving water flow issues and leakages in a timely manner, among other issues. Having to physically visit every customer site to diagnose water issues proved labor intensive, inefficient and costly.

This project required broad coverage throughout the city and physical depth of coverage due to the hard-to-reach water meter locations. To implement the project, China Telecom leveraged its 800 MHz NB-IoT network with over 500 NB-IoT-capable base stations throughout Shenzhen.

Using the new IoT water management platform, Shenzhen Water Group can now receive real-time alerts so that issues big and small can be resolved faster. The smart meters check data pressure and compare throughput at different nodes of the network, which allows the company to find leaks and take necessary preventative measures. They also experience additional benefits, including:

  • Higher data accuracy with the ability to receive data from 99.5% of the meters in each reading.
  • Better visibility into water usage habits and patterns of different consumer groups.
  • Wider coverage over existing networks, with up to a 20dB gain – water meters underground and in basements are more likely to be able to connect to the NB-IoT network than other networks.
  • Open data formats can be combined with other data sources to create big data analysis, so water consumption can be compared to weather conditions.

This smart water management project has set the pace for full utilization of NB-IoT in China’s water industry and is only a part of the nation’s initiative to lead the way in narrowband IoT commercialization. In the future, these efforts could greatly help China develop new benchmarks and create applications and business models based on insights gathered from IoT.

View the full Shenzhen Internet of Things case study here.

China Telecom Showcases Smart Waste Management Platform at the 2017 World Internet Conference in Wuzhen, China

Last week, the fourth annual World Internet Conference concluded in Wuzhen, Zhejiang province, China. The three-day expo (December 3-5) has become one of the leading events to catch a glimpse of the latest technologies being developed by China’s leading internet companies and service providers.

At this year’s event, China Telecom shared its 5G network technological advancements and demonstrated its eagerness to contribute to 5G standards and help promote commercialization. To that end, China Telecom has achieved the impressive feat of implementing full NB-IoT coverage in Zhejiang province.

Based on cellular mobile network connection technology, NB-Iot offers reduced costs, lower power consumption and enhanced coverage, in addition to a number of other advantages. Smart meters, smart parking, smart homes, and smart cities have undergone proof-of-concept testing and implementation in many places across China, one of which being the host city of this year’s conference.

Conference-goers were able to preview China Telecom’s latest IoT sensor-equipped smart trash bins that detect and report on garbage levels across the city of Wuzhen.  Attendees who stopped by the China Telecom booth received a demo of the solution with a visualized, real-time report of the sensor-generated data as it was being captured throughout the day.

Here’s how the technology works:

Each smart trash bin placed throughout the town is solar powered. The sun provides energy for a mechanism to engage inside the receptacle and compress the trash once it reaches 90 percent capacity, allowing the can to hold up to 3-5 times the trash load of conventional trash cans. It also reacts to motion sensors, makes emergency calls and has a fire extinguishing feature.

But these smart trash bins aren’t just a way to show off cool IoT technology; they were one of the several efforts to keep Wuzhen clean and curb waste management inefficiency – for instance, reducing fuel costs associated with trash collection trips. Such technology provides important data for environmental and transportation planning, as well as city resource allocation. In a rapidly developing country like China, energy and fuel savings, less waste buildup, smart route optimization, and more importantly, the ability to connect people, things, and data, are all key goals and drivers in becoming environmentally friendly.

This smart waste management solution offers only a glimpse of the IoT future, as there are many other practical applications in the Internet of Things realm. As the Internet continues to weave itself deeper into our lives, it is foreseeable that the “Smart Wuzhen” IoT model and NB-IoT commercialization will allow more and more people in Zhejiang, and throughout China, to enjoy the benefits of smart living.

The Benefits of SD-WAN for a Globalized IT Economy

As enterprise WANs become more costly and complex, a growing number of organizations are turning to next-generation networks to keep their data lanes running at peak performance. Leading this charge is the software-defined WAN (SD-WAN), which decouples the WAN’s control plane from network traffic and makes it programmable.

Organizations of all types can take advantage of SD WANs’ automation capabilities by programming them to intelligently route traffic over a mix of terrestrial and wireless technologies – such as public internet, private MPLS and 4G LTE – based on the application. Key benefits include:

  • Easy configuration: Rather than working directly with routing protocols, the IT team simply needs to tell the SD-WAN application how to handle certain traffic.
  • Lower cost: Because an SD-WAN can dynamically adapt to changing network conditions, low-cost broadband options are more feasible.
  • Flexibility: An SD-WAN can be reconfigured much faster than a traditional WAN, making it highly adaptable to the needs of different businesses.

This simplified, cost-effective approach to WAN is catching on fast. Gartner predicts that by 2020, 30% of enterprises will have deployed SD-WAN technology, up from less than 1% in 2015.

Benefits of a Managed SD-WAN

With a centrally managed SD-WAN architecture, IT teams can build a better WAN from the outset. The ability to augment or replace MPLS connections with broadband internet services can lower WAN costs by up to 90 percent.

It can also dramatically lower operational expenditure by giving IT operators the ability to add new network locations to the WAN within hours rather than weeks. The EdgeConnect SD-WAN solution, for example, employs a “plug and play” deployment model that can automatically add new physical branches and cloud-based IaaS services into the WAN. IT teams can quickly effect configuration updates to all WAN appliances with a single click.

This type of SD-WAN also integrates routing, basic firewalling, 256-bit encryption and WAN optimization. As a result, internet-based WAN connections are both secure and reliable, and the need for expensive, latency-adding backhaul WAN connections is drastically reduced.

China Telecom partnership with Silver Peak

To help address the connectivity, performance and security requirements of its international clients, China Telecom recently announced a formal partnership with Silver Peak, a global leader in broadband and hybrid WAN solutions.

China Telecom chose Silver Peak’s EdgeConnect SD-WAN solution based on its complete, single-device architecture. This will allow China Telecom to serve multinational clients cost-effectively while meeting their unique application service level agreements (SLAs). It provides seamless integration with China Telecom’s NetCare monitoring and management platform, and customers can also opt into Silver Peak’s Unity Boost performance pack, which accelerates latency-sensitive applications and reduces data duplication across the network.

Silver Peak pivoted to SD-WAN as its flagship offering in mid-2015, and now has more than 300 clients for its Unity EdgeConnect SD-WAN solution. Although not typically viewed as a full replacement for WAN routers, Silver Peak can provide that capability.

With a shared vision of SD-WAN replacing traditional WAN in the future, China Telecom and Silver Peak aim to bring secure managed services to enterprises and organizations across North America and APAC.

Contact Information 

For more information please contact:
Ryan Oklewicz
(703) 787-0088
press@ctamericas.com

China Data Center Trends and Future Outlook

According to a report by market research firm Technavio, the data center market in China is expected to post exponential growth over the next five years, with a CAGR on capex revenue of around 13 percent between 2016 and 2020.

Much of this growth has come from widespread adoption of data centers by government agencies during the last decade, says the report. In addition, major government investment in data center advances, targeted at stimulating the country’s digital economy, is boosting the adoption of cloud services, big data and IoT.

So what are the top data center trends in China, and how are they poised to shape the country’s digital future?

Data Center Infrastructure Management (DCIM)

Data center operators are constantly searching for ways to utilize floor space, electricity and equipment more efficiently. They are being helped in this quest by the latest generation of DCIM tools, which can monitor and manage the operations of both the facility’s support functions – such as air conditioning and PDUs – and its IT equipment, such as servers and network switches.

These DCIM tools can also provide colocation customers with transparency into their data center’s operations, for a single, holistic point of view into the status of their IT infrastructure. As part of its IT Infrastructure Management capability, China Telecom offers various key DCIM services, including 24/7/365 proactive monitoring, operation management and system optimization.

The Converged Data Center

Rather than managing their storage, CPU and virtualization in separate silos, an increasing number of data center service providers are graduating towards a more converged IT infrastructure which can utilize off-the-shelf appliances, all managed by a single software stack. The objective? To reduce overall operational complexity, while increasing flexibility, scaling and efficiency. According to recent figures by 451 Research, 40 percent of organizations are already using this type of architecture to some degree – a number that is likely to rise as more enterprises abandon traditional stand-alone servers in favor of cloud apps and colocation services.

Improved Content Delivery Networks

CDN site acceleration can be a key differentiator for ISPs that want to offer more responsive web hosting services in China. By serving static assets from the network edge, CDNs are also now improving user experience and reliability for a wide range of industry verticals and technologies, including ecommerce, finance, media/publishing, SaaS and mobile apps. China Telecom’s CDN network includes more than 60 CDN cache nodes in mainland China alone, accelerating the delivery of websites, downloads and streaming data.

Demand for faster, more stable broadband connections will only increase in China as companies look to extend their presence and provide better quality and cybersecurity. The hyperconverged CDN data center is likely to be a core enabler, offering advanced support for on-demand streaming, live broadcasts and adaptive streaming media over HTTP. Further down the line, it’s possible that individual mobile devices, communicating via P2P-style networks, will function as CDN “micro” nodes to ease data center workloads.

Hyperscale Data Center Partnerships 

The huge resource needs of applications such as big data, IoT, social networks and IaaS are leading to growing demand for hyperscale data center architectures. These allow users to seamlessly add on-demand computing resources from any location. Another key driver is the need for customers to continue to receive quality and secure data center infrastructure, facilities and services as they expand internationally.

In order to meet these demands, it’s expected that more data center providers will enter into strategic partnerships to provide international customers with large-scale, carrier-and-cloud neutral, multi-tenant data center products. A prime example of this is the recent co-operation framework agreement struck between China Telecom, Daily-Tech and Global Switch.

Although the U.S. still accounts for 45 percent of the world’s major cloud and internet data centers, China leads the world in internet consumption, with 710 million people online, according to a recent report by CNNIC (China’s Internet Network Information Center). As demand for cloud computing and other data services continues to grow in China, advances in data center technology can be expected to play a key role in both the int­­­egration of these technologies with modern manufacturing, and China’s gradual transition to a service economy.

Developing a Trusted Security Strategy for China

Organizations in the Americas are increasingly looking to expand into China and tap into its vast growth opportunities. Yet to take advantage of this dynamic, fast-expanding market, they need to manage data securely and efficiently. That’s why firms are looking to China Telecom Americas (CTA) as their trusted partner: a provider that can offer peace of mind with cutting-edge threat protection via a comprehensive set of network security solutions.

We live in a digital world. Data is the lifeblood of any organization, and that’s no different for those looking to grow their business in China. But the sheer volume, variety and sophistication of online threats, network resilience challenges and business risk can present a significant barrier to growth and impair essential services, affecting brand reputation and ramping up the cost of doing business in the region. Average breach costs for global organizations rose to $4 million in 2016. That’s why a trusted partner is so important to secure mission-critical data and networks.

Adding to the problem for organizations operating internationally is that data must be shared extensively, often across both on-premises and cloud systems, and pushed out to multiple fixed and mobile endpoints, creating a large possible attack surface for cybercriminals, nation states and hacktivists to target.

DDoS Threats

Distributed denial-of-service (DDoS) attacks are a constant source of pain for IT security managers, and the threat is growing globally. There was a 4 percent increase in the volume of attacks in Q4 2016 compared to the previous year, with the peak attack size up to 517Gbps and targets on average suffering not one but 30 attacks. DDoS is an ever-present threat. As one vector diminishes, another comes to the fore (as has happened recently with Network Time Protocol, or NTP).

The emergence of IoT-powered botnets such as Mirai has added a new level urgency to DDoS mitigation, with attacks of 300Gbps now not uncommon, according to Akamai. In our always-on digital world, even a few minutes of downtime can cost firms millions. Time, quite literally here, is money.

Record Threat Volumes

DDoS is far from the only security threat facing firms. One security vendor alone blocked over 81 billion unique threats last year, and recorded a spike in new ransomware families of 752 percent. The sheer range of threats, infection vectors and attack techniques is staggering. From relatively simple information-stealing Trojans to complex multi-staged zero-day threats, it requires security teams to constantly be on guard.

Organizations operating in China are exposed to exactly the same threats as anywhere else, and suffer the same financial and reputational fallout when one sneaks through. In fact, China was a top 10 global target for web app attacks in Q4, with SQLi, LFI and XSS the biggest threats.

The CTA Difference

Security teams have to manage all these myriad challenges while balancing the books and meeting sometimes rigorous regulatory and legislative compliance requirements. They must also ensure any security controls don’t interfere with data flows and employee productivity. Fortunately, China Telecom Americas has a number of managed security solutions designed to do all the heavy lifting for customers, providing maximum security while reducing cost and complexity.

Anti DDoS

CTA offers DDoS protection via two techniques: black hole filtering and “clean pipe.” Black holing drops unwanted traffic before it can enter a customer’s network. It does this by dynamically routing it to an empty “black hole” IP address. Clean pipe techniques work best on volumetric attacks and ensures traffic is scrubbed of any DDoS packets before entering the organization’s network by sending it to a CTA cleaning server first.

Threat Monitoring

At the heart of CTA’s threat-monitoring service is security information and event management (SIEM). This 24/7 platform monitors for threats around the clock, consolidating feeds from multiple sources around the customer’s IT environment for the most effective and comprehensive real-time monitoring and reporting possible. Threats are detected early, allowing for swift incident handling and remediation, which is vital to minimize the fallout of an attack. Hotline support and emergency threat advisories are also available around the clock where needed.

Secure Internet Access

Organizations operating in China, as elsewhere, need to enable secure remote and mobile working to drive productivity and business agility while keeping data and systems protected. The answer is CTA’s mobile VPN (virtual private network) offering, based on China Telecom’s MPLS VPN hybrid network, which reaches across the entire mainland of China. It offers a highly secure encrypted connection into your corporate network from wherever you are, supporting key use cases including VoIP, videoconferencing and use of resource-hungry enterprise apps like ERP software.

In fact, corporate data security is guaranteed because the MPLS network connects directly with cloud providers like Amazon Web Services (AWS) and Azure. We also offer our VPN customers real-time network monitoring, proactive fault handling, network management and a centralized portal for easy management.

The above offerings are all part of the China Telecom Americas managed security platform, which also features web content filtering, AV protection, intrusion detection and prevention systems (IDS/IPS), cloud security and more. By outsourcing to a trusted global partner with a proven track record in China, organizations doing business in the region can be sure security is handled by the experts, freeing up their own IT teams to focus on more strategic tasks.

Contact Information 

For more information please contact:
Ryan Oklewicz
(703) 787-0088
press@ctamericas.com

Umbra Uses CTA’s Managed MPLS Solution to Connect its Locations Across Four Continents

Umbra is one of the world’s most innovative housewares product design companies. A global company based in Toronto, Canada, Umbra brings intelligent design to everyday items. The company develops and manufactures modern housewares products ranging from furniture and frames to bath and kitchen products to entirely new categories of everyday items.

The company was established in 1979 when one of the founders couldn’t find a window shade he liked for his apartment. Instead, he created his own — and the company was born. Umbra (which means “shade” in Latin) is still led by the original two founders.

The company reimagines everyday items and creates objects that designers would appreciate, give as gifts or use themselves at home. Today, Umbra sells more than 2,000 home products through 25,000 retailers in 120 countries. Its products include wall décor and picture frames, window rods, jewelry storage, bathroom and closet organization, kitchen gadgets and furniture.

Umbra has numerous locations on four continents: in Asia (Shenzhen, China), North America (Toronto, Canada and Buffalo, New York), Europe (over 30 countries) and South America (São Paolo, Brazil). Umbra’s main manufacturing plant is in Shenzhen, China, with warehouses in Toronto, Buffalo, and Shenzhen.1 The company’s vast IT resources and network are shared across all locations from its hosted data center in Toronto. Umbra also provides IT services to its smaller sister company, TCH, an industrial and case hardware manufacturer headquartered in Toronto. TCH’s North American facilities are located in Toronto, Buffalo and Dallas.

Business Challenge

Several years ago, Umbra invested in a centralized MPLS [Multi-Protocol Label Switching] network for all of its major computing functions across the globe. The hosted data center in Toronto includes the ERP system and all of Umbra’s manufacturing and distribution software.

Having a reliable MPLS connection that is always on and accessible worldwide is very important. Without a connection to the data center in Toronto, the production lines stand still and distribution comes to a halt — which affects customer expectations and satisfaction, as well as revenue.

Customer Problem

Umbra experienced several issues with its previous North America-based MPLS provider, including:

• An unreliable network and packet loss

• Inadequate support

• Little or no visibility as to when a problem would be fixed

• Bureaucratic and slow response times

In addition, Umbra had to manage the routers on the MPLS network themselves. Eventually, the previous provider added managed services for the MPLS, but “it took months to implement at just one site,” said Scott Peter, Umbra’s IT infrastructure manager. “Another issue was that network problems required submitting an online help ticket to report, which typically resulted in long wait times for an email response with a scheduled fix. It dragged on and on, and [the process] was very painful.”

To efficiently conduct IT worldwide business, Umbra required:

• A stable network with a proven MPLS provider that would quickly respond and resolve any problems in a timely manner;

• Reliable MPLS managed services for 24/7 uptime;

• Lower cost of service and support; and

• Global reach.

Why Umbra Chose China Telecom Americas

“The attraction to China Telecom Americas was its strength and footprint in the Asia Pacific region,” Peter said. “We wanted better network performance and reliability from Shenzhen to Toronto.”

“China Telecom Americas was able to solve the latency problem with guaranteed 230 milliseconds latency. Our previous provider offered that, too, but in reality they were always at 300 milliseconds. It was tough to get them to acknowledge there was a problem with the Service Level Agreement. There were even problems with billing. Nothing went smoothly.”

In 2012, Umbra moved its network to China Telecom Americas, ending its affiliation with a large North America based provider.

How China Telecom is Different

Unlike the North America-based service providers, China Telecom is the world’s largest and fastest fixed line and broadband network operator. They deliver superior results by investing more than any other provider in terrestrial and cable infrastructure, including cloud, terrestrial and submarine cables. In addition, China Telecom:

• Owns 70 percent of the fixed line infrastructure in China

• Owns 80 percent share of the Chinese data center market

• Operates 70+ PoPs in key metro areas around the world, including more than 300 PoPs in China

The team supporting Umbra — along with the network operations center (NOC) — is based in Los Angeles, which offers numerous advantages:

• The team in Los Angeles is bilingual and many are native Chinese.

• Because the Pacific Time zone in Los Angeles overlaps with the business day in China, help is just a phone call away. Umbra doesn’t have to send an email and wait 12 hours for a response — and they don’t have to call in the middle of the night.

• China Telecom Americas has a U.S. project manager who works closely with the Umbra team in Canada — in addition to the team of network engineers — for ongoing 24/7 support.

Customer Solution — Managed MPLS Private Data Network and Global Internet Service

China Telecom Americas delivered an end-to-end, managed MPLS solution with QoS [Quality of Service] that was tailored to Umbra’s specific needs and a Service Level Agreement that guaranteed up-time of 99.9 percent.

The solution also included expanded bandwidth and global Internet service — and was implemented successfully in a very short timeframe.

Fast, Smooth Implementation

Peter oversaw the entire implementation. “We had 60 days to implement the China Telecom Americas solution. We were on a tight timeline,” he explained.

“One of the things that impressed me was that China Telecom Americas was extremely customer service-focused. They dropped everything when we needed them. Things got done and, if there was a problem, I could just call our rep and get someone from China Telecom Americas right away. No matter what the problem was, we could easily get someone who could manage the router, get us up and running, cut us over, or do whatever needed to be done.”

“It was almost as if we had one dedicated person. China Telecom Americas was always available and easy to reach, and its engineer based in Los Angeles was very, very good at what he did. Everything went really fast and smoothly.”

Quality of Service and Traffic Shaping

With its complete service approach, China Telecom Americas also provided Umbra with traffic shaping — and “we didn’t even have to ask for it,” Peter noted. “We were able to put Quality of Service on the MPLS, which was very important to us for CITRIX and VoIP optimization. We were able to do that right at the network level. All we had to do was tell China Telecom Americas what traffic we needed to optimize and they would put it in. It was simple to do and it was quickly implemented.”

— Dramatic Improvement in Network Performance and Productivity

Umbra increased its network performance and efficiency, saving time and money. Since switching its network to China Telecom Americas, Umbra now enjoys a wide range of benefits:

Less down time — an optimized, stable and improved MPLS network 

Improved business productivity increased revenue, increased production and cost savings due to network efficiency and reliability

Shorter response time  network problems are quickly addressed and resolved

Better value — “With China Telecom, we also increased our bandwidth, bringing greater value to our business,” Peter said. “The previous provider might have been able to undercut the cost, but we would still have their bureaucracy and high latency.”

Convenience — “Before, we had one provider for MPLS and another provider for Internet. With China Telecom Americas providing both services, we switched over to one bill. Everything became easy now that we only have one provider and one bill to deal with. If we have issues with anything, we only have one person we need to call.” 

Partnership with China Telecom Americas Delivers Lasting Benefits

Consistent, fast and centralized service and reliable connections across continents have been critical to Umbra’s success. Umbra’s partnership with China Telecom Americas enables performance that allows the company to focus on continuous improvement and innovation as they develop next generation products for their customers throughout the world.

To learn how China Telecom Americas can help your business, contact China Telecom Americas sales at sales@ctamericas.com

Case Study: Fast-Growing Global Equipment Manufacturer Chooses China Telecom Americas to Connect All of its Locations Worldwide

Douglas Dynamics, Inc. Overview

Home to the most trusted brands in the industry for 65 years, Douglas Dynamics is North America’s premier manufacturer of vehicle attachments and equipment for snow and ice management, customized truck solutions, turf care and industrial maintenance.

Based in Milwaukee, Wisconsin, Douglas Dynamics has received numerous industry awards and has been named one of the fastest-growing public companies in Wisconsin for the past three years. Partnering with dealers, suppliers and end users, the company has 10 locations around the globe, including over a dozen product engineers and sourcing specialists in Beijing, its only location in China.

Douglas Dynamics, a NYSE public company (PLOW), is also known for its innovative high-quality products that help its customers in North America — and in many parts of Europe and China — increase efficiency, productivity and profitability. Its well-known brands include FISHER, SnowEx, WESTERN (snow and ice management); Henderson (truck equipment); TurfEx (turf care) and SweepEx (industrial maintenance). Douglas Dynamics manufactures its products at three locations in the United States — Maine, Wisconsin and Michigan.

Business Challenge

Douglas Dynamics uses one main server, located at its headquarters in Milwaukee, for all of its data and voice transmissions. It uses a cloud-based telecommunications system. Employees across all of the company’s brands access and transmit data and files 24/7 from any device, through a CITRIX Virtual Desktop Interface (VDI) connection.

With international operations and geographically dispersed personnel, Douglas Dynamics needs reliable, fast and secure connections that are always on, providing access to all employees across its many locations throughout the world.

In addition, the Chinese Internet is oversubscribed. China is the largest Internet market in the world with over 670 million users — three times greater than the U.S. This massive number of people using the Internet results in a congested and slow experience, particularly at peak hours throughout the day. High levels of latency and packet loss can be commonplace.

“China is the factory to the world and the world’s largest Internet market. China Telecom Americas knows this market and has made greater investments in Chinese infrastructure than any other provider.”

– Jon Crane, IT Analyst, Douglas Dynamics

Customer Problem

The Douglas Dynamics engineers and sourcing specialists in Beijing need the ability to transmit and receive voice and data packets that are housed on the server in Milwaukee.

But for several years, the company struggled with inconsistent and often unreliable Internet connections in China. With limited connections, Douglas Dynamics employees in China could not use the company’s data systems they needed for their jobs, or communicate with their colleagues at other locations around the world.

Douglas Dynamics’ commitment to delivering industry-leading products to its customers, maintaining close relationships with partners, and continuous innovation and improvement is part of the company’s DNA. Advancing technology is a critical component of its market strategy, and the challenges with connectivity were significant impediments to that principle.

“When we opened our location in Beijing, we used a different MPLS [Multi- Protocol Label Switching] provider. They were expensive, but reliable,” said Jon Crane, IT Analyst at Douglas Dynamics. “After a few years, we decided to try an Internet-based solution for a variety of reasons, and we immediately started having network problems. We then tried a few different international carriers, but none could provide the low latency and security we needed. The network kept going down, and we were very frustrated. We didn’t have an MPLS connection for over three years. And then we found China Telecom Americas.”

Why Douglas Dynamics Chose China Telecom Americas

“What impressed us most about China Telecom Americas was its local expertise in China,” Crane noted. “Unlike the North American-based carriers, China Telecom specializes in networks running in China. They have good local contacts, know the culture and speak the language, making it a smooth transition. We were pleased that the sales and engineering team understood our problem, but didn’t try to push a pre-packaged solution on us.”

How China Telecom is Different

China Telecom has the Best Infrastructure in China

Unlike the North American-based service providers, China Telecom is the world’s largest — and fastest — fixed line and broadband network operator. They deliver superior results by investing more than any other provider in terrestrial and cable infrastructure, including cloud, terrestrial and submarine cables. In addition, China Telecom:

  • Owns 70 percent of the fixed line infrastructure in China
  • Owns 80 percent share of the Chinese data center market
  • Operates 70+ PoPs in key metro areas around the world, including more than 300 PoPs in China

Teams are Both Local and Global — Always Available and No Language Barriers

The team supporting Douglas Dynamics — along with the network operations center (NOC) — is based in Los Angeles, which offers numerous advantages:

  • The team in Los Angeles is bilingual and many are native Chinese.
  • Because the Pacific Time zone in Los Angeles overlaps with the business day in China, help is just a phone call away. Douglas Dynamics doesn’t have to send an email and wait 12 hours for a response — and they don’t have to call in the middle of the night.
  • China Telecom Americas has a U.S. project manager who works closely with the Douglas Dynamics team in the U.S. — in addition to the team of network engineers — for ongoing 24/7 support.

Customer Solution — MPLS Private Data Network and Global Internet Service

China Telecom Americas provided a 2 MB end-to-end MPLS solution with a Service Level Agreement that guaranteed up-time of 99.9 percent. The new system was up and running within six weeks.

Because the MPLS solution is a private network, it circumvents all of the problems related to the Chinese firewall and Internet capacity roadblocks.

Results — Reliable Performance at a Competitive Price Point

China Telecom America’s vast network of Points-of-Presence (PoPs) within the United States and throughout China made it possible to efficiently use a private MPLS data network that can reliably connect Douglas Dynamics’ Beijing location with its headquarters in Milwaukee. China Telecom Americas provides a number of high-value benefits to its customers:

  • Secure, reliable high-speed data transport
  • Guaranteed low latency
  • Minimized levels of packet loss
  • An optimized network that best addresses Chinese infrastructure
  • Faster time to market: implemented within six weeks
  • Very competitive pricing

“It was easy to develop a good relationship with China Telecom Americas. They have a small company feel and they’re very responsive. The entire team is very competent and well-versed on the problem and solution. Having a telecom provider with a network operations center (NOC) in Los Angeles and a backup NOC in China supports our on-going network needs. The time zone overlaps with the business day in Beijing, which is much more efficient than having a team based on the East Coast.” – Jon Crane, IT Analyst, Douglas Dynamics

Partnership with China Telecom Americas Delivers Lasting Benefits

Consistent levels of service and reliable connections across continents have been critical to Douglas Dynamics’ success. Their partnership with China Telecom Americas enables performance that allows the company to focus on continuous improvement and innovation as they develop next generation products for their customers throughout the world.

To learn how China Telecom Americas can help your business, please contact China Telecom Americas sales at sales@ctamericas.com

Case Study: Global Housewares Product Designer and Manufacturer Uses China Telecom Americas’ Managed MPLS Solution to Connect its Locations Across Four Continents

Umbra Overview

Umbra is one of the world’s most innovative housewares product design companies. A global company based in Toronto, Canada, Umbra brings intelligent design to everyday items. The company develops and manufactures modern housewares products ranging from furniture and frames to bath and kitchen products to entirely new categories of everyday items.

The company was established in 1979 when one of the founders couldn’t find a window shade he liked for his apartment. Instead, he created his own — and the company was born. Umbra (which means “shade” in Latin) is still led by the original two founders.

The company reimagines everyday items and creates objects that designers would appreciate, give as gifts or use themselves at home. Today, Umbra sells more than 2,000 home products through 25,000 retailers in 120 countries. Its products include wall décor and picture frames, window rods, jewelry storage, bathroom and closet organization, kitchen gadgets and furniture.

Umbra has numerous locations on four continents: in Asia (Shenzhen, China), North America (Toronto, Canada and Buffalo, New York), Europe (over 30 countries) and South America (São Paolo, Brazil). Umbra’s main manufacturing plant is in Shenzhen, China, with warehouses in Toronto, Buffalo, and Shenzhen.1 The company’s vast IT resources and network are shared across all locations from its hosted data center in Toronto. Umbra also provides IT services to its smaller sister company, TCH, an industrial and case hardware manufacturer headquartered in Toronto. TCH’s North American facilities are located in Toronto, Buffalo and Dallas.

Business Challenge

Several years ago, Umbra invested in a centralized MPLS [Multi-Protocol Label Switching] network for all of its major computing functions across the globe. The hosted data center in Toronto includes the ERP system and all of Umbra’s manufacturing and distribution software.

Having a reliable MPLS connection that is always on and accessible worldwide is very important. Without a connection to the data center in Toronto, the production lines stand still and distribution comes to a halt — which affects customer expectations and satisfaction, as well as revenue.

“China Telecom Americas was extremely customer service-focused. They dropped everything when we needed them.” – Scott Peter, Umbra IT Infrastructure Manager  

Customer Problem

Umbra experienced several issues with its previous North America-based MPLS provider, including:

  • An unreliable network and packet loss
  • Inadequate support
  • Little or no visibility as to when a problem would be fixed
  • Bureaucratic and slow response times

In addition, Umbra had to manage the routers on the MPLS network themselves. Eventually, the previous provider added managed services for the MPLS, but “it took months to implement at just one site,” said Scott Peter, Umbra’s IT infrastructure manager. “Another issue was that network problems required submitting an online help ticket to report, which typically resulted in long wait times for an email response with a scheduled fix. It dragged on and on, and [the process] was very painful.”

To efficiently conduct IT worldwide business, Umbra required:

  • A stable network with a proven MPLS provider that would quickly respond and resolve any problems in a timely manner;
  • Reliable MPLS managed services for 24/7 uptime;
  • Lower cost of service and support; and
  • Global reach.

Why Umbra Chose China Telecom Americas

“The attraction to China Telecom Americas was its strength and footprint in the Asia Pacific region,” Peter said. “We wanted better network performance and reliability from Shenzhen to Toronto.”

“China Telecom Americas was able to solve the latency problem with guaranteed 230 milliseconds latency. Our previous provider offered that, too, but in reality they were always at 300 milliseconds. It was tough to get them to acknowledge there was a problem with the Service Level Agreement. There were even problems with billing. Nothing went smoothly. Since   moving to China Telecom we have experienced a  level of customer service that continually exceeds our expectations.”

In 2012, Umbra moved its network to China Telecom Americas, ending its affiliation with a large North America based provider.

How China Telecom is Different

Unlike the North America-based service providers, China Telecom is the world’s largest — and fastest — fixed line and broadband network operator. They deliver superior results by investing more than any other provider in terrestrial and cable infrastructure, including cloud, terrestrial and submarine cables. In addition, China Telecom:

  • Owns 70 percent of the fixed line infrastructure in China
  • Owns 80 percent share of the Chinese data center market
  • Operates 70+ PoPs in key metro areas around the world, including more than 300 data centers  in China

Teams are Both Local and Global — Always Available and No Language Barriers

The team supporting Umbra — along with the network operations center (NOC) — is based in Los Angeles, which offers numerous advantages:

  • The team in Los Angeles is bilingual and many are native Chinese.
  • Because the Pacific Time zone in Los Angeles overlaps with the business day in China, help is just a phone call away. Umbra doesn’t have to send an email and wait 12 hours for a response — and they don’t have to call in the middle of the night.
  • China Telecom Americas has a U.S. project manager who works closely with the Umbra team in Canada — in addition to the team of network engineers — for ongoing 24/7 support.

Customer Solution — Managed MPLS Private Data Network and Global Internet Service

China Telecom Americas delivered an end-to-end, managed MPLS solution with QoS [Quality of Service] that was tailored to Umbra’s specific needs and a Service Level Agreement that guaranteed up-time of 99.9 percent.

The solution also included expanded bandwidth and global Internet service — and was implemented successfully in a very short timeframe.

Fast, Smooth Implementation

Peter oversaw the entire implementation. “We had 60 days to implement the China Telecom Americas solution. We were on a tight timeline,” he explained.

“One of the things that impressed me was that China Telecom Americas was extremely customer service-focused. They dropped everything when we needed them. Things got done and, if there was a problem, I could just call our rep and get someone from China Telecom Americas right away. No matter what the problem was, we could easily get someone who could manage the router, get us up and running, cut us over, or do whatever needed to be done.”

“It was almost as if we had one dedicated person. China Telecom Americas was always available and easy to reach, and its engineer based in Los Angeles was very, very good at what he did. Everything went really fast and smoothly.”

Quality of Service and Traffic Shaping

With its complete service approach, China Telecom Americas also provided Umbra with traffic shaping — and “we didn’t even have to ask for it,” Peter noted. “We were able to put Quality of Service on the MPLS, which was very important to us for CITRIX and VoIP optimization. We were able to do that right at the network level. All we had to do was tell China Telecom Americas what traffic we needed to optimize and they would put it in. It was simple to do and it was quickly implemented.”

“Our billing, management, visibility and support are handled a lot better. China Telecom Americas makes it easy to do business with them, and we have been pleased to have them as our network partner.”  – Scott Peter, Umbra IT Infrastructure Manager

Results — Dramatic Improvement in Network Performance and Productivity

Umbra increased its network performance and efficiency, saving time and money. Since switching its network to China Telecom Americas, Umbra now enjoys a wide range of benefits:

  • Less down time — an optimized, stable and improved MPLS network
  • Improved business productivity — increased revenue, increased production and cost savings due to network efficiency and reliability
  • Shorter response time — network problems are quickly addressed and resolved
  • Better value — “With China Telecom, we also increased our bandwidth, bringing greater value to our business,” Peter said. “The previous provider might have been able to undercut the cost, but we’d still have their bureaucracy and high latency.”
  • Convenience — “Before, we had one provider for MPLS and another provider for Internet. With China Telecom Americas providing both services, we switched over to one bill. Everything became easy now that we only have one provider — and one bill — to deal with. If we have issues with anything, we only have one person we need to call.”

Partnership with China Telecom Americas Delivers Lasting Benefits

Consistent, fast and centralized service and reliable connections across continents have been critical to Umbra’s success. Its partnership with China Telecom Americas enables performance that allows the company to focus on continuous improvement and innovation as they develop next generation products for their customers

To learn how China Telecom Americas can help your business, please contact China Telecom Americas sales at sales@ctamericas.com

Chinese Data Centers Benefit from Hyperconvergence

Hyperconvergence enables leading Chinese IT service providers to combine technologies that formerly operated in separate silos (such as telephony, internet and television). This transformation is changing approaches for managing data centers, and the way telecommunications companies deliver services to customers.

Telecommunications companies continually seek to improve service delivery and provide new and innovative benefits to customers in the areas of media, cable, residential and enterprise internet, wireless, fixed-line, software and hardware. In the evolution of services, many telecommunications companies now combine these services to offer even greater possibilities.

Leading Chinese IT service providers, such as China Telecom, are already taking advantage of such hyperconverged (combined) technologies to join telecom, TV, residential and enterprise internet and mobile in order to deliver expanded services, or to provide exclusive content for particular subscribers. At the same time, some telecommunications companies are investing heavily in infrastructure to ensure these hyperconverged services are supported with enough bandwidth.

The Evolution of Telecommunications

One result of hyperconvergence is an expansion of the telecommunications industry. Supported by the Chinese government within its current Five-Year Plan, hyperconvergence in this context brings new opportunities for expanded services. This evolution is prompted by three major drivers: technology, customer demand and socioeconomic factors.

Regarding technology drivers, a leading global management consulting firm, Booz & Company, explains: “A key driver for convergence is the development of new technologies that enable the fixed and wireless worlds to come together. Within the next five years, new generations of affordable, highly integrated digital processors and radio components are expected to be developed, with high performance and low power consumption.”

The second factor – customer demand – is significant. A growing Chinese mobile market means that customers are demanding data, gaming, TV and messaging options on their mobile devices. Hyperconvergence allows telecommunications companies to be flexible in responding to these needs, able to adjust their compute, storage and networking capabilities to respond to what customers may want in the future. Providers, like China Telecom, that stay ahead of the trends will thrive in this new environment.

Socioeconomic factors come into play as China’s current Five-Year Plan includes a goal of fostering convergence within telecommunications companies, along with other providers, to strengthen the country’s overall technology infrastructure.

As Booz & Company report: “The essence of convergence is synergy, which means that two or more players can contribute their strengths and combine with unique offerings from others, creating new services and products or building up differentiation.”

Hyperconvergence in Data Centers

The hyperconvergence of compute, storage and networking components is a recipe for the next evolution in data centers. Using this approach, a data center is based on off-the-shelf appliances managed by a single software stack. This revolutionary approach is an improvement over complex and costly data center methods in which each function (usually from separate vendors) operates within its own silo.

Hyperconvergence is a more integrated approach that enables users to set up their infrastructure more quickly to reduce operational complexity and favorably reconfigure IT teams. This infrastructure often includes additional functionality, such as data backup, de-duplication, replication and wide area network (WAN) optimization. It also enables IT teams to seamlessly scale up or down by adding or removing appliances.

According to recent research by 451 Research, 40 percent of organizations are already using hyperconverged infrastructure, and that number is likely to rise quickly. Christian Perry, research manager at 451 Research, states that: “Loyalties to traditional, standalone servers are diminishing in today’s IT ecosystems as managers adopt innovative technologies that eliminate multiple pain points.”

Most leading Chinese IT service providers that offer hyperconverged systems start with low-cost commodity x86 hardware and add value-rich software, but the technology is flexible, with software-only options available as well. This type of data center configuration enables IT departments to provision resources instantly, and accommodates a wide variety of applications, offering a high degree of flexibility and efficiency.

According to a recent article published by Data Center Knowledge: “Uses include general purpose workloads, virtual desktop infrastructure, analytics, and for remote or branch office workloads. In fewer cases, companies use it to run mission critical applications, server virtualization, or high-performance storage.”

What Does This Mean for Enterprise IT?

Hyperconvergence offers a simplified architecture, plus a simpler administration model. Instead of having a set of applications and teams to manage 1) a storage array, 2) virtualization, and 3) server hardware; one team (or perhaps even one person) can manage the complete hyperconverged stack. These simplifications can result in immense savings and/or reasonable costs for scaling and growing a Cloud IT footprint.

China Telecom’s Contribution

China Telecom is working to assist organizations that want to take advantage of this technology. Offering content delivery networks, enterprise internet, and cloud and data center services, China Telecom enables companies to take advantage of the security and capacity to elevate their offerings to the next level.

Its data center development reduces operation, maintenance and energy-consumption costs, and improves the overall efficiency of data center operations. These services also implement highly cost-effective data center engineering protocols to maximize each data center’s investment value.

Software-defined data center (SDDC) is a technology infrastructure concept that infrastructure and operations professionals need to pay close attention to. Converged infrastructure is the foundation for SDDCs, and Chinese organizations can leverage these concepts to reduce infrastructure complexity, increase flexibility, and move closer to a more virtualized, automated, and resilient infrastructure. China Telecom is leading the way here, too, with aims to provide and co-locate SDDCs in China and around the world which can help meet enterprise requirements for urgency and flexibility in the very near future.

Start exploring now and learn more about China Telecom Americas and its cutting-edge data center offerings.

China Telecom’s CDN Technology Transforms User Experiences While Adding Reliability and Security

Transmission speed and reliability in the digital world are more important than ever, and content delivery networks (CDNs) are paving the way for better internet and mobile technology services by serving static assets from the edge — as well as site acceleration and other products.

In China, only 44 percent of the population are Internet users, but that’s still enough people to make it the world’s largest online population. As the number of users is expected to increase considerably in the coming years, leading Chinese IT service providers seek to innovate underlying frameworks in ways that both serve customers and satisfy regulatory requirements.

China’s IT industry has a number of projects in progress to further its capacity to serve the coming wave of virtual activity and meet these demands. A major initiative is improving content delivery network (CDN) infrastructure.

CDN Development

A CDN is a system that delivers content from a website or mobile application to people more quickly and efficiently, based on their geographic location. Comprising a network of servers (“points of presence,” or POPs) in locations across the globe, CDNs cache static resources, bringing data closer to users and reducing necessary round-trip time. Content delivery networks are useful across a range of verticals:

  • Ecommerce: A CDN helps e-commerce sites deliver content quickly and efficiently, even during the holiday shopping season or other high-traffic times. Without CDNs, load times for images and other elements would be a considerably longer for users who might be hundreds or thousands of miles away from the host servers.
  • Finance: CDNs allow banking institutions to deliver sensitive data to consumers and analysts on a range of devices with a fast, secure and reliable infrastructure. Also, there is additional defense against network and application-level attacks.
  • Media/Publishing: A CDN can help media companies update pages in real time. For delivering images and video, CDNs can take advantage of content optimization techniques and device caching that promotes smooth delivery.
  • Mobile apps: A CDN delivers dynamic and location-based content, reducing load times and increasing responsiveness. Other techniques that help the mobile user experience include text compression and video pacing, for example.
  • Technology and SaaS: A CDN helps tech sites serve billions of requests each day. Particular concerns by SaaS providers addressed by a CDN might include onboarding times and SSL security.

A project involving a partnership between China Telecom Global and Conversant Solutions Pte Ltd is the introduction of an international CDN in which the two companies’ CDN infrastructures integrate through a CDN federation (an interconnection of individually operated CDNs) to provide a global delivery framework.

This connection will enable content upload, delivery, storage, transcoding, management and related services. It will optimize both companies’ resources and will improve the quality and quantity of Chinese internet services. Faster speeds mean faster load times for web and mobile users, quick scalability during heavy traffic times, minimized risk of traffic spikes (which ensures site stability), decreased infrastructure costs due to traffic offloading, and better site performance. Other benefits include the availability of usage analytics, high-capacity infrastructures (for higher availability and lower network latency), and improved performance.

More stable broadband connections will help companies doing business in China to extend their presence and provide better quality and security. China Telecom Americas offers a high-speed content delivery network with a strong presence across the country and the world, accelerating the delivery of content in China and beyond.

What to Look For in a China CDN Provider

Because the point of a CDN is to reduce the distance between your users and the servers bringing them desired content and information, it’s smart business to find a local provider.

When investigating, consider whether the provider can navigate infrastructure hurdles. In addition to these basic framework issues, enterprises entering new markets will likely need help understanding local internet laws or regulations which may change frequently.

China Telecom offers clear advantages to companies looking to improve performance in China and other Asia-Pacific markets where they lack a physical server presence.

These advantages include:

  • Full network control: China Telecom owns and operates one of the world’s best-connected networks, delivering content to last-mile networks without relying on third-party transit providers with their own routing policies.
  • Licensure: China Telecom has a full CDN license in China and is licensed to host and deliver web content throughout the country.
  • Reliable, easy to use storage: Storage options include secure origin, external file and cloud-based solutions, fully optimized for specific technical requirements. Customers can upload content via Aspera, FTP, SFTP, R-Sync, and SCP. Data is securely stored and backed up using state-of-the-art firewall and data-retention technologies.
  • Advanced streaming: Support for streaming on demand, live broadcasts, and adaptive streaming media over HTTP. Dynamic Content Packaging (DCP) of adaptive streaming media in HDS and HLS formats. Encoding and transcoding functions available for content compatibility with a wide range of viewing platforms. (This is especially important as many consumers in China view video via personal devices.)

Learn more about China Telecom’s CDN features and service, which includes fully customized solutions packages.

Readers are invited to learn more about plans for improving communications technology in China by China Telecom and China Telecom Americas.

Everything You Need to Know About China’s “Internet Plus” Future

The growth of the internet is having a massive effect on transforming and modernizing Chinese industries and businesses. So much so that the Chinese government has created its own “Internet Plus” initiative to transform, modernize and equip traditional industries to join the modern economy.

China’s new Internet Plus strategy will have a huge impact on businesses across all industries, especially as the roles of big data and data centers grow. For businesses hoping to enter the Chinese market, understanding Internet Plus is a critical component to achieving success.

The Internet Plus initiative was built out of a motivation to connect China’s growing economy to the power of connected services. With so many traditional industries in China, ranging from manufacturing to agriculture, the government is set on linking these industries to the world.

In its 2015 Government Work Report, the government states that it will launch major projects to develop equipment, networks, circuits, energy, materials and even biomedicines to help emerging industries become leading ones.

Part of the motivation for this push comes as the manufacturing boom that helped China grow at astonishing rates has now begun to moderate. New sources of growth are needed.

According to McKinsey, in 2013 China’s internet economy represented 4.4 percent of gross domestic product (GDP) — higher than the United States and Germany — representing a possible avenue of significant growth.

The Elements of ‘Internet Plus’

The Internet Plus roadmap is a five-year plan to integrate cloud computing, big data and the Internet of Things with a variety of industries from manufacturing to commerce, internet banking, agriculture and many others.

Internet Plus is made up of several different initiatives:

  •     More funds for research and development, reaching 2.5 percent of GDP through 2020
  •     Decreased dependency on non-domestic technology innovation
  •     Access to 100 MB/s internet connections for people in large cities
  •     Broadband connectivity to reach 98 percent of population
  •     More funds for promoting business development and innovation

This plan is already showing benefits for businesses hoping to enter the Chinese market. At a recent conference organized by VMware and the Chinese Academy of Engineering, Chinese business decisionmakers heard from EMC senior vice president Charles Fan who spoke about Internet Plus, stating that the country’s economy will “radically change” due to the program.

This will happen through growth in mobile devices, cloud service, the Chinese internet boom and a “new generation” of applications that connect people to social media, big data and analytics.

This growth will attract offshore businesses looking to make an impact in the burgeoning Chinese internet economy, and they will need experienced and sophisticated partners such as China Telecom to assist their efforts.

How Does Big Data Fit In?

While big data plays a part in the Internet Plus program, it’s also a separate issue in its own right. E Weinan, dean of the Beijing Institute of Big Data Research, has explained the need for further growth: “While the internet has a solid foundation, which Chinese companies can draw upon and enjoy better use amid China’s huge market, there has not yet been a mature technology path in big data that Chinese companies can rely upon.”

McKinsey’s 2016 China consumer report finds China as the world’s largest e-commerce market — generating revenue of $615 billion in 2015, nearly the same as Europe and the United States put together. Chinese consumers, eager to use new technology and make purchases — much of both trends mobile-based —  are therefore providing sites with huge amounts of consumer data, ripe for analysis and segmentation. Targeted advertising could unlock untold billion yuan from shoppers across the country.

China’s big data market is expected to reach 822.88 billion yuan ($124 billion) in 2020, up from 76.7 billion yuan in 2014. This will directly help power data centers, China’s internet growth, innovation and more — all in accordance with Internet Plus goals.

Do you want to learn more about how to take advantage of the Internet Plus growth in China? Contact China Telecom Americas to learn more.

China Telecom picks Keysight tech for NB-IoT device test

China Telecom is using Keysight Technologies’ mobile-IoT test platform to help accelerate its Narrow-Band IoT (NB-IoT) chipset and module certification progress. Based on the E7515A UXM wireless test set, Keysight said it is the only all-in-one test platform vendor to support China Telecom’s NB-IoT RF conformance test and power consumption verification.

Keysight’s mobile-IoT test platform enables the operator to simulate real-world conditions so it’s able to verify critical performance, such as power consumption, RF performance and interoperability, when rolling out new NB-IoT applications, Keysight said in a press release.

To view the original article, visit Telecom Paper

China Telecom Brings its Global MVNO, CTExcel, to Hong Kong

HONG KONG, CHINA, Mar 30, 2017 (Marketwired via COMTEX) — CTExcel now connects customers in four global markets on a single integrated network for data, voice, and text.

Businesses and individuals can enjoy a range of mobile services across Mainland China, Macau and Hong Kong, all on one mobile plan and one SIM Card.

CTExcel’s high quality solutions and packages connect Hong Kong customers with the world, and benefit global travellers on business or leisure alike.

China Telecom Global (CTG) today announced that Hong Kong’s Office of the Communications Authority (OFCA) has licensed the company to offer Mobile Virtual Network Operator (MVNO) services in Hong Kong. CTG has expanded its mobile network footprint into Hong Kong with its CTExcel brand, giving corporate clients and consumers seamless and affordable access to 4G networks around the world through a single SIM card. Hong Kong marks the fourth international market in its repertoire, adding to the company’s other launches in the United Kingdom in 2012, France in 2013 to cover the European region, and the United States in 2015.

The launch was marked with an opening ceremony attended by CTG’s management team and over 150 business partners and customers. During the event, Mr. Jacques Bonifay, CEO of Transatel and Mr. Gerrit Jan Konijnenberg, CEO of Uros were also on stage to make the announcement together with CTG’s management team, that they will be using China Telecom’s network to provide 4G roaming service to their customers travelling in Mainland China.

Integrating its telecommunications infrastructure from all four markets into one mobile network aligns with CTExcel’s vision of lowering the connectivity barrier globally. The breadth of CTExcel’s tailor-made global telecommunications portfolio provides users with access to international high-speed 4G LTE service and Mobile WiFi in over 100 countries, as well as the ability to perform IDD calls and SMS at some of the most cost-effective rates in the market.

By leveraging the network and service capabilities of its mobile business in Mainland China and Macau, CTExcel now offers Hong Kong customers a seamless and consistent mobile connection to different regions. It has also unveiled plans to roll out its “one-card-multiple-numbers” SIM card solution, which will allow customers to activate local numbers in multiple regions on a single SIM. The initiative caters especially to those who have close connections in different markets, allowing them to be contacted via local mobile numbers in a more convenient and cost-effective way.

“Along with announcement of the ‘Belt and Road’ strategy, Chinese enterprises have speeded up their pace of overseas expansion. The telecommunication demands of Mainland China, Hong Kong Macau, Europe and the Americas continue to increase. Coupled with China’s booming outbound tourism sector, an even greater need arises for services that simplify and streamline the process of staying connected to home, particularly in nearby locations like Hong Kong that often act as connecting hubs to the rest of the world,” said Mr. Deng Xiao Feng, CEO of China Telecom Global. “As the first batch of telecom companies from China to offer mobile services beyond the Asian market, we’re committed to providing our customers with the same world-class connectivity that they can expect from our home-grown network.”

Flexible and all-around packages to enterprises and individuals CTExcel also provides bespoke solutions designed to meet the needs of travellers locally and internationally. Besides providing travellers the convenience of stable and high-speed mobile services locally and abroad, CTExcel also combats overseas roaming costs and meets demands for stable Internet connectivity on-the-go, through a Mobile WiFi solution that is supported in over 100 countries and regions, allowing businesses to “pool” data across employees in different markets. The MVNO also provides 24/7 customer support hotlines, and low-cost IDD and global SMS rates to both businesses and consumers.

“CTExcel can now provide a range of solutions that are excellent in both quality and dependability to businesses and consumers in both Mainland China and Hong Kong” says Mr. Deng Xiao Feng, CEO of China Telecom Global. “Reliable access to 4G LTE connectivity in multiple markets, backed up by global customer service support and cost-effective alternatives such as our Mobile WiFi service, makes staying online hassle free and less worrisome for today’s highly mobile, always-on generation of travellers and entrepreneurs.”

CTExcel’s SIMs and services will be available for Hong Kong customers in the coming quarter of 2017 through local convenience stores, CTG’s retail and commercial partners, and via online purchase. CTG’s existing and prospective business customers can expect CTG’s enterprise business team to serve their mobile requirements together with their global wireline business.

To view the original press release, please visit Marketwatch

China Telecom Allies with OpenStack as Government Announces Support for the Open-source Software Platform

China Telecom (CT) was approved as the newest OpenStack Gold Member at the Foundation’s November 2016 board meeting.

China Telecom joins some of the leading technology companies in the world — including Inspur, Cisco, Dell EMC, Ericsson, Fujitsu, Hitachi, Huawei, NEC and Symantec — as one of 24 founding Gold Members.

Large and small businesses, telecoms, public cloud service providers, government organizations and researchers around the world use OpenStack’s open-source software to build clouds, support the diverse cloud computing ecosystem and enable cloud innovation.

China Telecom was selected as a Gold Member for its capability to support OpenStack’s development in the rapidly growing Chinese and Asia-Pacific markets.

At China’s first Open Source & Cloud Computing Summit (COSCCS) in December 2014, the country’s officials declared the government’s support for OpenStack ecosystems and plans to encourage state-owned enterprises to use OpenStack-based cloud products. The Ministry of Industry and Information Technology (MIIT) predicted that OpenStack would contribute to business growth.

Indeed, today, many Chinese organizations are engaging OpenStack across various sectors, including internet, telecom, IT, education and retail. Momentum is growing and will inspire other Chinese firms to investigate opportunities for growth. One advantage for Chinese companies is that they are using a mature version of OpenStack, mostly from 2014 onwards, and don’t need to upgrade from earlier versions.

As one of the largest mobile carriers in the world, with more than 500 million subscribers and over 300 data centers, China Telecom is currently migrating its CloudStack deployment to OpenStack, supporting strategic opportunities in the public cloud and contributing significant code and knowledge to the OpenStack community.

China Telecom will also contribute new investment and resources to complement the many OpenStack technology vendors and users that comprise one of the best networks in APAC.

“OpenStack is truly a global community, with nearly 650 companies supporting the project in 187 countries,” says Jonathan Bryce, Executive Director of the OpenStack Foundation.

“The investment and commitment of our new Gold Members underscores the global growth and evolution of OpenStack, with projects of massive scale serving millions of end users in China and other markets worldwide.”

For an example of collaboration among members, telecom company Huawei works with software maker Red Hat and aims to accelerate collaboration around OpenStack for network functions virtualization, which is required by communication service providers like China Telecom.

China Telecom Adds Value to OpenStack Community

The China Telecom Cloud uses the OpenStack platform to provide stable, scalable cloud facilities and comprehensive customer service to end users in the Asia-Pacific region.

The China Telecom Cloud is focused on Cloud+Network Integration technology and is set to take enterprise internet in China to the next level with a combination of its range of existing telecom services and OpenStack’s vast network, expanding the company’s Asia-Pacific reach and enhancing service delivery to end users in the region.

With centralized supersized data centers – each more than 10 million square meters – and numerous small and medium-sized data centers, China Telecom can contribute a vast practice environment and use cases to the OpenStack community.

“China Telecom has gained strong capabilities and rich experience through many years of hard work,” says Joe Han, President of China Telecom Americas.

“We will contribute to the community through strengthening and improving OpenStack. We will focus on realizing telecommunication functions on OpenStack, such as NFV, SDN, Container and Big Data, and return the results to the OpenStack community.”

China Telecom Expands OpenStack Accessibility in Asia-Pacific

The new partnership will also make the OpenStack platform readily available through China Telecom’s network services, which will increase accessibility to users throughout the Asia-Pacific region.

China Telecom looks forward to working with the OpenStack open source community to speed up the development and utilization of the China Telecom cloud ecosystem, and in turn attract more private business involvement in the OpenStack community.

“China Telecom is active in organizing and participating in OpenStack-related activities, including OpenStack Summit, OpenStack Day, meetups and more. We have also shared our OpenStack practice and case studies at relevant trade shows and technology forums,” says Mr. Han.

“With our leading role in China’s cloud businesses, China Telecom’s full-scale and successful use of OpenStack will bring the government and more businesses into the OpenStack community.”

For more information, hi-res images or to organize an interview please contact Ming Wei, Director of Solution and Delivery, at weiming@ctamericas.com

About China Telecom Americas

China Telecom Americas is a wholly owned US-based subsidiary of China Telecom Corporation, one of the world’s leading providers of integrated communications and information technology services to customers in over 70 countries around the globe. With headquarters in Herndon, Virginia, and offices in Chicago, Dallas, Los Angeles, New York, San Jose, Toronto and Sao Paolo, China Telecom Americas is advancing transpacific enterprise connectivity through a suite of locally based, turnkey services from network architecture, cloud and data center services to equipment management, security, content delivery, mobility solutions and more. Discover more at www.ctamericas.com

The NFV/SDN Trends in China You Need to Know

Chinese communication service providers (CSPs) are using network functions virtualization (NFV) technology to deliver expanded internet services to customers, and are hoping for a strengthened economy as a result.

NFV is the next stage in evolution for CSPs. As part of its Internet Plus initiative, China is embracing this technology, which offers flexibility, speed and cost-effectiveness.

While the technology is still new, and there is much to be learned, Chinese companies are moving ahead to expand China’s internet coverage, and strengthen its economy as a result.

This newest development in networking technology is expanding and improving services for companies doing business in the Chinese market. As part of a software-defined networking (SDN) framework, NFV enables CSPs to quickly and easily deliver innovations to customers.

The NFV Advantage

NFV replaces traditional telecommunications network appliances — like routers and firewalls — with software running on off-the-shelf servers, significantly increasing the flexibility and speed for new service delivery.

Operators can deploy cutting-edge functions at certain network locations without the need for new equipment. This more dynamic operation enables network administrators to rapidly respond to evolving customer requirements. Because less equipment is needed, costs decrease and efficiencies are gained.

Chinese CSPs have been quick to adopt this technology to improve services to their customers, and deliver the best networks in China.

In an effort to strengthen enterprise internet, China has begun to embrace NFV. One organization helping to plan NFV implementations is the Network Function Virtualization Lab, which is a joint effort between Hewlett Packard Enterprise (HPE) and the China Telecom Beijing Research Institute. The lab helps China Telecom accelerate new offerings for its customers, and test and verify the benefits of transitioning to NFV technology from legacy networks.

Quoted in a press release from Hewlett Packard Enterprise, Li Zhigang, President, China Telecom Beijing Research Institute said, “We believe that the integration of NFV within SDN-enabled infrastructure will be the next stage of evolution for the strategic development of the China Telecom network.”

He Jianbo, Manager, Network Function Virtualization, China, Hewlett Packard Enterprise added, “NFV will deliver carrier-grade solutions that offer available and reliable network performance. This will help Chinese and global CSPs compete more effectively and deliver new services more quickly to its customers at a lower cost.”

China’s Internet Plan

With its quickly expanding economy — and accompanying enterprise internet — China has the opportunity to benefit greatly from NFV technology, as it helps strengthen the country’s broadband infrastructure, enabling it to attract businesses from other countries.

The Chinese Government recognizes this potential impact and has developed a strategy for advancing NFV technology, contributing to the development of the best networks in China.

Following the country’s lowest growth in 24 years, Beijing instituted the Internet Plus policy in 2015 to push the country ahead in terms of technology. The policy seeks to add internet services, such as mobile, cloud, big data and Internet of Things (IoT) to other fields, initiating a springboard for new industries and business development.

For example, internet technology combined with manufacturing could produce new production methods; internet combined with medicine could optimize medical treatment; and internet combined with agriculture would give farmers better climate, land and demand data.

Digital Trends says that Internet Plus depends heavily on the web. It states, “As part of Internet Plus, China plans to bolster its research and development spending to a total of 2.5 percent of gross domestic product through 2020. This represents an increase of 0.4 percent.”

It’s important to note that, while telecommunications networks represent a mature technology, NFV is still in its early stages.

According to Linux.com, at the China SDN/NFV Conference 2016, held in Beijing in April, Wei Leping, President of the SDN/NFV Industry Alliance commented, “Internet application companies, cloud service providers and a small number of large carriers are currently leading the way in SDN/NFV development.”

Overcoming Challenges

The challenges that accompany a shift to NFV are strategic, architectural and operational, according to Network Testing Product Manager Trinh Vu of Amdocs Inc.

Strategic challenges include change management and determining what to virtualize, where to begin and how to measure success. Architectural challenges include managing performance, reliability and security risks. And operational challenges include managing complex NFV deployments and dealing with the operational complexity of virtualized/hybrid carrier networks.

CSPs transitioning to NFV must learn to think differently about service innovations, and must go through an initial learning curve to gain the necessary skills and experience to make the best use of this technology. Linux.com reported Mr. Wei’s recommendations for future development in this area:

  •  Choose an advantageous strategy to deepen transformation.
  • Settle on practical tactics, followed by productive actions.
  • Dare to make breakthroughs in thought processes.
  • Collaborate with others in the industry to avoid fragmentation.

Despite these challenges to enterprise internet, Chinese CSPs are using NFV to deliver the best networks in China and bring customers innovative, responsive features.

As NFV technology and telecommunications progresses, businesses looking to expand in China will need to find a trusted Chinese partner to provide the internet backbone for their operations.

Smart Cities, Smart Innovation: The Next Generation City

Smart cities are changing the way urban development will operate in the next century, and things are just getting started. Businesses can take advantage of growth and opportunity in these cities, particularly in China, as digital infrastructure takes hold.

The Internet of Things (IoT) increasingly gives consumers options to make their lives easier by connecting devices that think and act on their preferences and anticipate behavior.

The same is happening in cities around the world – with leaders considering how implementing these major technological changes could transform their cities into working hubs of smart technology.

The goal is to create “smart” cities that allow citizens to work, play, interact and travel by using technology as much as possible.

The National Development and Reform Commission of China defines a smart city as a “new idea and new mode of promoting smart city planning, construction, management and service, using the Internet of Things, cloud computing, big data and spatial geographic information integration, etc.”

A smart city takes information from layers of digital services and then uses it to make better decisions about how to plan a variety of services, such as transport, energy and healthcare.

For instance, the Malaysian Government and China Telecom Americas launched SMARTXP, a Smart City Experiential Centre, which allowed citizens to come and interact with technology, showing how such a smart city would work. Virtual reality, screen displays and interactive games all demonstrated what living in a smart city would be like.

This might seem like a futuristic concept – but that future isn’t as far away as you might think.

As China Telecom Americas explains, technologies like smart home gateways can turn homes into smart homes, allowing multiple devices and apps to control various everyday aspects of a home – including kitchen appliances, beds, or even power sockets that can be turned off or on.

“Technology is permeating into every aspect of our lives – yet how can we utilise the smart devices in our palm to enhance our living standard?”

How a Smart City Works

The creation of a smart city takes a significant amount of infrastructure. For instance, to provide digital services a city must be able to develop “layers” of digital infrastructure:

  • Sensors: Cameras, sensors and smartphones help to gather data from users. This can then help create massive repositories of information that feed into subsequent layers, enabling better and more data-driven decision-making.
  • Networks: This layer requires partnering with trusted, local networks and providers, such as electricity grids, the internet itself and telecommunication networks to spread and gather the information from users.
  • Platforms: To provide smart services, underlying platforms need to be created, requiring expertise in security, network management and information processing. This requires strong and reliable cloud services from a trusted provider that can ensure security.
  • Applications: Whether a citizen is looking up a bus timetable that is updated in real-time to account for traffic or monitoring their own electricity use, applications need to feed the information gathered in the previous three categories.

These advances are crucial for expanding economic activity. According to Malaysian Prime Minister Datuk Seri Najib Razak, the creation of such experiences as the SMARTXP centre, created in conjunction with China Telecom Americas, will help people envision a more connected future. He points to studies showing 90 percent of Malaysians will be living in cities by 2020.

“So, the demand for smart city infrastructure will be tremendous and vital,” he told the Malay Mail Online, also saying he was “pleased” to see the creation of the SMARTXP concept.

What a Smart City Can Do

From a citizen’s perspective, the types of services a smart city could provide would involve information about everyday activities. Taking public transport, for instance, would be a far more enjoyable experience with sensors on trains and buses that provide real-time location updates.

In Zhenjiang, citizens are able to make hospital appointments and rent bicycles from their smartphones. Information is sent to a “control center”, which then helps planners and operators reduce inefficiencies. Using cloud services, China will develop these smart cities further.

As the China-Britain Business Council explains, businesses around the world could find opportunities to digitize infrastructure relating to transport, water, energy and healthcare, along with a need for massive digital storage.

This evolution could see substantial changes in the way cities are run and managed in decades to come. As MIT has pointed out in its own analysis, telecommunication providers such as China Telecom are playing a crucial role in developing smart cities.

“They are not only extending their network coverage and improving their network quality, but also exploring new technologies to build new network layers.”

Discover how technology is fuelling this development with the help of trusted Chinese telecommunications providers like China Telecom Americas.

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How Digital Transformation is Shaping a New China

Chinese digital transformation isn’t just providing opportunity for those within its borders, but for businesses around the world. Learn how your business could be part of one of the biggest digital transformation stories in history.

The rise of China is setting the stage for an Asian century, but businesses are still figuring out how they can enter this new and exciting market.

Technology provides the answer. The Chinese market is undergoing rapid digital transformation – understanding this massive shift, and how to harness it, will be vital for businesses all over the world.

Much of this growth has been focused on consumers, as they spend more money online in traditional e-commerce outlets. According to a Cisco survey, 89 percent of Chinese respondents said they use independent shopping apps on a smartphone at least once a week – compared to 34 percent of U.S. respondents.

The potential for Chinese growth is even higher. Outside consumer-based commerce, many businesses in China are not yet using the internet to innovate and grow. In 2013, the cloud computing market was only worth $1.5 billion, around 3 percent of China’s enterprise IT market. However, that’s projected to rise to $20 billion by 2020, representing 20 percent of China’s IT market.

The Opportunity Abroad

This poses a significant opportunity for businesses outside China who are hoping to enter the competitive market. According to All China Review, the next phase of digital transformation in China could contribute between 7 and 22 percent of the increase in China’s gross domestic product (GDP) from 2013 to 2025.

So how can U.S. businesses take advantage of this?

Firstly, businesses should understand that there is a huge demand for digital services and skills in the Chinese market. An Accenture Strategy study shows 22 percent of the world’s economy will be linked to digital skills and services. In the U.S. that sector is 33 percent of GDP, while in China that figure is only 10.5 percent.

As the study explains, there is room for growth in China to adopt more of a focus on productivity and the consumption of services, rather than through pure e-commerce.

“Organizations need to act aggressively in shifting the focus of their digital talent and technology from making efficiencies to creating entirely new business models”, Accenture Strategy Group Chief Executive Mark Knickrehm said in a 2016 statement.

Over time, businesses in China will rely less on product development and manufacturing, shifting focus onto marketing, customer service and sales channels.

As McKinsey explains in its research, Chinese firms will need to invest in more IT services to make this shift successful: “Technology investments and product portfolios may have to be revisited more frequently, and CIOs [chief information officers] may need to have a greater voice in strategy.”

What Does This Mean for CIOs?

These changes represent significant opportunities for offshore businesses to invest in the growing Chinese demand for infrastructure.

For instance, according to McKinsey, China is facing opportunities with regard to some of the country’s largest markets including used-car sales, chemical companies, real estate and even healthcare. Recent news points to the Chinese government seeking even greater private investment.

The Cyberspace Administration of China has said it has placed an emphasis on building out technologies including 5G networks, cloud computing, the Internet of Things, smart cities and ecommerce. All of these areas will present opportunities for infrastructure creators.

Businesses all over the world are seeking to take advantage of this trend, with China’s call to build a “Digital Silk Road” attracting foreign investment. The Belgian telecom Belgacom has stated it finds the prospect of digital investment in China an attractive one.

Businesses may find it difficult to enter the Chinese market at first. Partnering with leading Chinese IT service providers can be a crucial first step to gaining a foothold in the market. Businesses like China Telecom Americas, with existing partnerships in the region, can be one of the best ways to access new opportunities in China.

Learn more about how to partner with trusted telecommunications providers in China and enter this exciting market with China Telecom Americas.

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Gaming in China: The New Realm for Big Business

The rapidly growing Chinese gaming market is attracting attention from Western businesses. However, to successfully enter the Chinese market, foreign companies must understand some key differences and build partnerships with trusted, local partners.

The Chinese gaming market is now the largest in the world – and big business is paying attention.

According to the 2016 Global Games Market Report, PC and online gaming captures 59 percent of China’s $24.4 billion market, with mobile gaming representing around 41 percent market share.

Mobile games are the fastest growing segment in China. Forecasts predict that by 2019 mobile games will represent 48 percent of China’s total gaming market, which is expected to be worth $28.9 billion in 2019.

Rapid increases in China’s internet access through Wi-Fi networks – the country has more than 620,000 Wi-Fi hotspots and counting – is powering the online gaming juggernaut, along with widespread adoption of 4G service which is quickly bringing China to the top of global internet access rates.

There are also socioeconomic forces behind China’s gaming explosion. Its emerging middle class is now estimated to be half a billion strong, and that means more disposable income to spend on entertainment (consumer spending grew by 6.9 percent in 2015).

Chinese gaming experts Zixue Tai and Fengbin Hu also note that China is following in the footsteps of other mature gaming markets in the region, as gaming expands beyond traditional demographics in China.

“Although current mobile game play is predominantly male-oriented (close to 70 percent), all industry reports have noted an accelerated rise in the proportion of female players in the past three years,” they write in Mobile Gaming in Asia. “Meanwhile, there has also been a steady upsurge in the 25+ demographics in the mobile player statistics in recent years.”

East versus West: Market Differences

While Western businesses are eager to carve out a slice of China’s gaming pie, there are several important market differences that foreign companies must account for before trying to enter China’s gaming market.

Android devices capture 73 percent of the Chinese market, with iOS devices falling well behind at 27 percent. Unlike Western markets where Android games are mostly limited to a small number of major marketplaces, there are approximately 400 distribution channels for China’s Android games.

SMS payments are favored by Chinese gamers over credit card payments which dominate gaming transactions in the West. Chinese gamers also use China-based third-party payment services, such as Alipay which boasts around 450 million users.

Chinese prefer free-to-play models for both mobile and PC games. In-game advertising is less accepted than in Western countries, but Chinese gamers are more open to pay-to-win models.

Entering the Market: Key Partnerships

It’s essential that foreign companies seeking to enter China’s gaming market create partnerships with some key local players.

China’s law stipulates that foreign companies must use a local partner to publish a game in any Android marketplace. Tencent, iDreamSky and NetEase are among the best-performing game publishers in China.

While there are around 400 Android distributors in China, the top 10 capture 80 to 90 percent of the total gaming revenue. Myapp, MIUI App Store and 360 Mobile Assistant are the three largest Android distributors.

While China’s growing 4G network is beginning to handle credit card payments, partnering with one of China’s telecommunications operators remains vital to managing the preferred SMS payments.

It’s important to note that on-net – or on-network – experience is key in this market. Working directly with a trusted telecommunications provider on its network is better than working with a wholesale provider that leases its connections and provides slower service. For example, China Telecom offers global customers access to the ChinaNet internet network. ChinaNet owns more than 70 percent of Chinese internet content resources and provides global customers with many resources including information, video, real-time chatting tools, online trading, games, search engine and information services.

Tapping into a local, trusted partner will also give you a clear competitive advantage, connecting you to the relationships you need and powering your technology and tools.

To streamline and simplify your transition into the Chinese market, find out more about the trusted telecommunications partner you need.

The Growth of Personal Clouds in China

In the Chinese IT industry, cloud storage seems to have taken center stage. Read more about their cloud market and the changes they face.

Despite the current economic and political challenges facing China, there is still some optimism in its IT sector. Over the last few years, cloud storage seems to have taken center stage in the Chinese IT industry. What started with pervasive and rapid internet growth has exploded as more people gain access to mobile devices. Personal cloud has sprung up to serve an insatiable need for sufficient storage and data sharing points for mobile users. Behind the boom lies a growing level of attention from both China and the international players.

The size of the cloud market

In 2014, the cloud computing products raised about $4 billion, contributing to approximately 5% of its IT industry, and hence lower than the global spending of about 11%. iiMedia Research group expected the number of active personal cloud users to hit 450 million, from 380 million in 2014. Based on CTA estimation, the Chinese spending on private cloud is expected to hit $2.57 billion in 2017 and enjoy a 30.7% growth in the next five years. While the rates manifest the public willingness to embrace the new storage platform, most popular platforms are yet to reach mainland China.

The key drivers of personal cloud market

While the topic seems to have missed the media headlines, it is driving force behind the Chinese dwindling economy and widening political issues. Private cloud users are keen on some features that come with the platform such as 10 TB storage capacity, fast sharing, high-security measures, and accessibility to all devices. Nonetheless, the service providers are keen to further innovations to win the ever-growing market.

The challenges

By the virtue of its size, every technology vendor hopes to grasp a share of the coveted market. They will have to deal with several hurdles if they are going to make significant progress in the market. For instance, they will have to deal with low internet speeds that stand at about 4MBS compared to the US average of about 11MBPS. In addition, a 14% access to fixed line broadband and 21% mobile broadband means the country is largely unexploited.

Unlike other international players, the Chinese personal cloud services allow users to share information raising concerns among the regulators. In a bid to clean the sector, the national authorities embarked on a drive to purge illegal content from the internet, which saw the exit of six primary services. The absence of a clear business model to drive the firms into prosperity stands the way between companies and profitability.

Whitepaper: China Telecom Americas’ Commitment to Carrier Partners Creates Opportunities for Global Expansion

As the North American subsidiary of the largest integrated communications service provider in China, China Telecom Americas is best able to help telecommunications service providers extend their reach and reinforce their brand with outstanding products that are backed by industry-leading SLAs. No carrier is investing in the infrastructure and services needed for the globalization of business like China Telecom. China Telecom Americas makes it easy for communication services providers to successfully expand to Asia in support of their clients’ operations and to reach the massive Chinese market.

Ready, Set, China! Millions of global companies have established operations in China, eager to take a slice of China’s growing pie. Many have come to learn that success doesn’t happen overnight in a country as complex as China; it’s a marathon that requires endurance and resourcefulness.

Telecommunications service providers see the potential of the world’s most populated nation, which has shown an appetite for networked and value added services. The massive global participation of multi-national companies in the Chinese economy continues to incent carriers from around the world to find innovative ways to serve their enterprise clients beyond their geographical scope and domain of expertise. China has become one of the world’s top destinations for enterprise expansion, yet the country is wrought with challenges to both enterprises and carriers. Diversity of the country, its location, heterogeneity across the expansive Chinese market and a plethora of regulations create an increasingly challenging business sphere.

China Telecom Americas’ research shows that enterprises doing business in China overwhelmingly consider reliable telecommunications services to be a priority. Carriers hoping to meet their clients’ needs in China must be prepared to deliver exceptional service. To avoid spending hundreds of millions of dollars building, deploying and managing the array of service options necessary to meet enterprise communication needs, carriers would be wise to partner with an incumbent when entering China.

China Telecom is China’s leading integrated communications services provider with majority market share for fixed-line services and the greatest global capacity to, within and from China. Recognized by industry analysts for its pioneering strategy of deploying CN2, the Next Generation Carrying Network built for business MPLS requirements, China Telecom continues to innovate and establish subsidiaries globally to provide better regional service and support. China Telecom Americas was established in 2002 to serve North and South America and currently counts some of the world’s largest companies and carriers among its valued customers.


“We are constantly adding capacity in and out of China because demand from our customers is growing. We were reselling another company’s services, and they were getting their capacity from China Telecom. Working directly with China Telecom Americas gives us circuits direct from China Telecom and puts margin on the bottom line.”

-Director of Commercial Carrier Management, US-based Global Communications Carrier


China Investment Remains Strong

Since the mid-1980s, China’s financial integration with the world economy has grown sharply. The country currently accounts for 40 percent of FDI to developing countries and is the largest recipient of FDI after the United States. China will also become one of the world’s biggest global investors by the end of this decade, with global offshore assets tripling from $6.4 trillion now to nearly $20 trillion by 2020. In an increasingly competitive world for FDI, the future for China remains bright. As more multinational companies realize the strategic importance of entering the Chinese market and establish operations in the country, they must connect people, applications and content as part of daily operations, and this is where China Telecom Americas serves as a bridge between nations.

National economies that were once slightly entangled are now permanently intertwined. China is the United States’ largest trading partner, accounting for more than 15% of US trade, according to US Census Data, and will account for thirty percent of the world’s growth through to 2017, based on global forecasts from the International Monetary Fund. Trade between China and Latin America has also grown significantly. According to the Chinese Ministry of Commerce, bilateral trade between China and Latin America expanded from $200 million annually in 1975 to $70.2 billion per year in 2006. By 2013, that figure had risen to $289 billion.

China’s Telecommunications Landscape is Vast and Growing

With a population of 1.38 billion and a land mass slightly larger than the United States, China owns the worlds largest fixed-line and mobile networks in terms of both network capacity and number of subscribers. By 2020, China’s telecom market will be four times larger than the US market . In terms of Internet users, China has surpassed the United States at over 700 million users and also holds the greatest number of mobile phone subscribers worldwide. Its consumers, households and business have caused a boom in e-commerce, with shopping, texting and gaming rapidly growing. This large-scale adoption of communications technology and services has allowed China’s telecom service industry to grow. According to a KPMG report, China is targeting 1.2 billion 3G/4G mobile users (85 percent penetration) by 2020, up from 325 million in June 2013.

Implications for Carriers

The massive telecommunications market presents significant opportunities for carriers and value added service providers, even if they lack infrastructure in China. In order to succeed, they must select an alliance partner that demonstrates a willingness and ability to invest billions of dollars in infrastructure and support services required to keep up with the explosive demand for telecommunications services resulting from unprecedented economic growth. MNCs want to streamline the number of vendors that they use for their global communications requirements. They typically want to acquire telecommunications services through vendors with whom they have existing relationships. Even if carriers’ clients have not already inquired about communications services in support of operations in China, carriers should ready themselves to serve clients’ business in China.

For carriers whose clients have already led them into China, it’s a perfect time to evaluate alternatives that provide the best mix of service coverage options, support, SLAs and overall value. In most cases, carriers are serving existing clients who are expanding into China, so a relationship of trust between them is already established. If the services provided in China do not meet customers’ expectations, the entire business relationship could be at stake. Thus, carriers need to make sure that they choose a partner with the strength and resources to support the quality of their own brand.

China Telecom Americas Fosters Successful Relationships with Carriers

If anyone knows what carriers need to successfully serve demanding enterprise customers in China, it’s China Telecom. China Telecom Americas, China Telecom’s subsidiary serving carriers and enterprise customers in North and South America, combines the experience of a world-class carrier, the expertise and strength of its parent, and a North American team to locally support its relationships with carriers and service providers doing business in Asia.

Delivering data communications solutions to clients in China can be challenging on many levels including:

  • Overcoming a lack of knowledge about doing business in China’s expansive market;
  • Finding a local partner that can reach into all of China;
  • Choosing between the multitude of networking options;
  • Dealing with language and time differences and;
  • Writing contracts with terms that are acceptable to the carrier.

China Telecom Americas is a strong, reliable choice for telecommunications service providers seeking a world-class partner in Asia in order to support their brand and their clients’ requirements. China Telecom Americas offers the strongest SLAs for network performance of any carrier serving China and the program management team has delivered industry leading on-time installations 99% of the time. China Telecom Americas works on behalf of carriers and customers for network planning, implementation and operational support in the Americas, China and the rest of China Telecom’s global network coverage area. The company is Cisco certified and has close synergies with technology providers like Citrix, Juniper Networks and Equinix.

The company provides a range of enterprise services along with a set of carrier-specific offerings including China Transit Services (Figure 2), Internet Peering, Network Ethernet Leasing Service, Wholesale IPLC, Wholesale MPLS, Wholesale Voice and Managed Services in the company’s Internet Data Centers (IDCs). These services help carriers extend offerings under their own brand while leveraging the multi-billion dollar investment that China Telecom has made in global capacity and services.

Most important to carriers and value added service providers is China Telecom Americas’ ability to locally support their global objectives. Telecommunications service providers interviewed reported the following benefits received from China Telecom Americas:

  • End-to-End Service Management – “We did not need to know what was happening behind the scenes to provision the circuits that were ordered for our customer or to deal with service issues when they arose. We just worked with the China Telecom Americas support team and they turned around and worked with the people in China in all hours of the night. They were like our advocate.”
  • English Language Support – “When we have issues, we don’t have a language barrier standing in the way of resolution.”
  • Local Presence – “My China Telecom Americas rep comes to the office to sit down and talk about what we need.”
  • US-Based Contracts – “For us, writing contracts in the US is a lot easier than writing them under Chinese regulations and being able to pay in US dollars is key.”
  • Better Margins – “Since we can now buy the circuits we need directly from China Telecom Americas, we can cut out the middleman and put money on the bottom line.”
  • Best Service Level Agreements – “China Telecom Americas offered us out-of-the-box service level agreements that far exceeded what any other carrier could guarantee.”


    “One of our largest clients came to us with the need to network 11 facilities in China together and provide a fast, reliable and secure connection back to the US for access to the financial and ERP systems located in Chicago. They have more than 800 people relying on this circuit and the operation would go down if the circuit fails. China Telecom Americas helped us plan the solution, made sure provisioning went smoothly and did everything we needed to support the client.”

-Director of Network Solution, US-based Business Communications Services Provider


China Telecom’s Strength and Stability Rewards Carriers

Extending services into a new geographic region presents risks to any carrier. Management can mitigate risk by selecting to do business with a strong, forward-looking global leader that is dedicated to its clients and carrier partners.

China Telecom has earned a reputation for service and management excellence that carriers can leverage to better serve its increasingly global client base. The company was once again named one of the 2007 “World’s Most Admired Companies” by FORTUNE Magazine and in 2008, Euromoney named China Telecom “Asia’s Best Managed Fixed Telecom Company.”

The company is shaping and facilitating the steady economic growth being experienced in the region. Its more than 670,000 employees share the commitment to place “Customer First. Service Foremost.” China Telecom has the largest IP network and fixed-line subscriber base in Asia and has the most capacity to and from China. The company has established bi-lateral direct circuits with 70 telecom carriers in 40 countries and regions and the list is growing.

China Telecom invests billions of dollars to develop the best-supported products and services for global business, including CN2 (Figure 3) and its cable network, such as the Transpacific Express (TPE) Cable (Figure 4). TPE is a cable that offers unprecedented capacity and performance with its own backhaul infrastructure in China and the United States. It has landing points in Shanghai and Qingdao China, Keoje, Korea, Tanshui, Taiwan and Nedonna Beach, US with full connectivity capability to all cities in China, all China Telecom Hong Kong and US PoPs and all of China’s neighboring countries. It connects directly to other cable systems including APCN2, SMW-3, FEA and EAC.

The FASTER cable system, a 9,000-km submarine cable system linking Japan and the West Coast of the U.S., is China Telecom’s most recent subsea cable investment and the first trans-Pacific subsea cable designed to deliver 60 Terabits per second (Tbps) of bandwidth.  With its state-of-the-art design, FASTER provides continuous connectivity and high capacity for cloud, video streaming, analytics, and the Internet of Things. It can support the expected four-fold increase in broadband traffic demand between Asia and North America, enhancing China Telecom’s infrastructure to support customers’ data traffic.

Building the Brand, Expanding the Reach

MNCs will continue to participate in the growing Chinese economy for many years to come, spawning further expansion of the country’s communication services sector. In support of clients’ requirements, carriers and telecommunications value added service providers worldwide must develop their short and long-term strategies for Asia expansion. In order to sustain their brand and revenue streams, they are advised to establish a relationship with an integrated communication services provider that has deep knowledge and extensive services throughout Asia.

As the North American subsidiary of the largest integrated communications service provider in China, China Telecom Americas is committed to helping carriers and service providers extend their reach and reinforce their brand with their customers by providing outstanding products that are backed by industry-leading SLAs. Investing heavily in the infrastructure and services needed for globalization, China Telecom Americas is making it easier for communication services providers to expand to Asia in support of their clients’ operations by the day.

About China Telecom Americas

China Telecom Americas, a wholly-owned US-based subsidiary of China Telecom Corp. Ltd. (NYSE: CHA), is an international telecom provider for Data, IP and Voice Wholesale services to multinational companies, organizations and international carriers requiring China domestic services and International access to China & Asia Pacific. With headquarters in Herndon, Virginia, and offices in Chicago, Houston, Los Angeles, New York, San Jose, Dallas and Toronto, Canada, China Telecom Americas continues to expand its reach, including Latin America. China Telecom Americas provides a locally based, one-stop-shop, turn-key solution for everything from China domestic and international data circuits to IDC services, network management, equipment management, system integration and more.

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Case Study: Sterigenics MPLS Network Solution in China

Sterigenics needed a reliable network solution for their China offices to run their ERP system. The network proved to be very reliable and performance superior to the previous infrastructure.

  • Challenge: Sterigenics needed a reliable network solution for their China offices to run their ERP system.
  • Solution: China Telecom Americas proposed a CN2 MPLS VPN solution with Managed routers.
  • Key Benefits: The CN2 MPLS VPN solution with Managed routers came with SLA covering the congested Trans-Pacific portion between the United States and China. After a quick an efficient installation the network supporting two sites in Shanghai and one in the US has proved to be very reliable and performance superior to the previous infrastructure.

Sterigenics International, Inc Headquartered in the Chicago suburb of Oak Brook, IL, Sterigenics International, Inc., is a leading global provider of contract sterilization solutions and radiation processing services. With 38 facilities across North America, Europe and Asia, Sterigenics is the only company in the world to offer technology in all leading sterilization modalities. As a result of this broad-based network, customers around the world receive the convenience of cutting-edge technology and expert technical support close to their production and distribution facilities.

Sterigenics attracts clients which span multiple sectors and markets, including firms within the medical device, pharmaceutical, and food safety industries. Sterigenics anticipated a major growth in network traffic in their expanding Shanghai activities. The IT Department needed to have a reliable network solution for the China facilities to access their global ERP system. The initial IP circuit was adequate for light usage, but due to the congestion on the public Internet, it was difficult to get the performance they needed from their IP SEC VPN tunnel between Shanghai and the United States. From Shanghai to North America to the heart of the European Union, Sterigenics International is expanding—building new facilities and enlarging existing ones, to bring the latest in technology and increased speed-to-market to medical device manufactures worldwide.

Working Together
China Telecom Americas and Sterigenics began to work together around the same time that Sterigenics was beginning construction on their second facility in Shanghai. At that point, higher bandwidth network solutions were required to support their newly-implemented global enterprise resource planning (ERP) platform. The Chicago Office of China Telecom Americas reached out to Sterigenics, the concerns were discussed and a plan of action was developed. Mike Smith, Vice President of IT at Sterigenics, explains: “After describing our application environment and networking requirements, the China Telecom Americas sales team and engineers presented a couple of options, from which we selected the one that would best work for us both functionally and within our budget. China Telecom Americas also understood that we did not have staff on the ground in China, so we required a solution that they could install, monitor, and support.” At the beginning, the service was a 2M IP Access line, which kept costs low for Sterigenics. This level of service was maintained for nearly two years. However, due increased congestion, the IT department at Sterigenics came to realize that MPLS was a better solution for them so China Telecom Americas migrated the Sterigenics network to MPLS.

Solutions that Worked
China Telecom Americas proposed a CN2 MPLS VPN solution with managed routers. This service came with an SLA covering the congested trans-pacific portion between China and the United States. After a quick and efficient installation the network supporting two sites in Shanghai and one in the US (Downers Grove IL) has proven to be very reliable and performance superior to the previous infrastructure. In addition China Telecom configured and installed the routers in Shanghai and is managing these routers proactively through their NetCare service giving Stergienics IT staff the flexibility to focus on other strategic areas in their business while China Telecom does the proactive monitoring. In addition to the MPLS solution, CTA also proposed and provided a backup private line between the two locations in Shanghai so in the event one of the locations fails, the network will automatically reroute to the other location via the private line. This addresses the business continuity for the Shanghai locations and mitigates the risk for any operational and production issues.

In The End
An MPLS solution was selected to connect Sterigenics’ two operating facilities in China; a separate leased line between the sites provides essential backup. Through China Telecom’s services, local customers can now access Sterigenics’ global ERP environment and also utilize an automated data collection bar coding system.

China Telecom’s round-the-clock support and monitoring meant Sterigenics could launch its global ERP environment in China without having to invest in on-site IT resources or a 24-hour operational support staff. Since implementation, China Telecom Americas has been able to continue customizing its service to accommodate Sterigenics’ international growth strategy. Sterigenics credits China Telecom Americas with playing a key role in helping them pave their way to success in China. With the continued assistance of China Telecom Americas, Sterigenics is currently exploring the possibility of expanding to other parts of the Asia-Pacific region, where China Telecom has additional resources to deliver and extend the CN2 MPLS VPN network.

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White Paper: How China Telecom’s Transformation Enables Growth

China Telecom’s multi-pronged transformation strategy is changing the company into an integrated information services company at the forefront of technology and service innovation. The transformation strategy benefits shareholders and China Telecom’s many types of clients, including households, small and medium enterprises, multinational companies and global carriers.

The Future Is Now

Predictions that leading economists and technologists once made about China are now being validated. Each prediction is like a brush stroke that helps paint a vibrant image of this flourishing nation, helping to strengthen the global economy and transform the lives of its 1.38 billion people. The experts said:

  • China would become among the fastest growing economies. Indeed, Indeed, real GDP growth averaged 9 percent since 1998 and China has become the world’s second largest economy. In the first quarter of 2016, China’s economy grew at an annual rate of 6.9 percent, down slightly from the end of 2015 but still very much in line with the official target.
  • China’s entrance into the World Trade Organization (WTO) would re-shape the constitution of its GDP. China’s economy has swung from agricultural based to manufacturing based, and the services sector has become increasingly important as a driver of the economy. It accounted for 48.2 percent of China’s economic output in 2014.
  • Increased income levels among the population would create demand for products and services that global companies would enter China in order to meet. Much publicity covered multinational companies (MNCs) that entered China at the turn of the century to test the market, but now MNCs are executing market penetration strategies on a large scale.
  • China would surpass even the United States in Internet usage. The country has over 700 million Internet users, double the population of the U.S.

Indeed, the China that had been envisioned is upon us. The future is now.

Yet countries blessed with history that is as long and rich as China’s understand that further prosperity and progress require smart planning and investment. Nations never stop evolving. As the largest fixed-line operator in China, China Telecom offered a strong foundation upon which the country could build over the past few decades. With wise management and its own set of predictions for the future, China Telecom set out in 2004 on a path of transformation in order to better serve its customers, the global market and its shareholders.

Relationship Between Telecommunications Growth and Economic Change

World Bank studies have shown that there is a positive correlation between economic development and telecommunications density and available services, and some studies even claim that a causal relationship exists in both directions. Telecommunications growth has also been linked to other stimulants like increased education, improved access to information, development of research centers and other positive changes on an economy and a culture.

The telecommunications sector in China has been one of the fastest growing sectors in China. The country’s 371 million phone subscribers account for one fifth of the world and its 131 million Internet users make up one tenth of the world’s users. In 2014 alone, telecom services spending in China amounted to $182.9 billion USD.

China Telecom’s Transformation Strategy Delivers Diverse, Branded Communications Solutions to Global Clients

China Telecom is the major supplier of integrated communications services in China, managing more than 220K wire lines and offering data, voice, Internet and converged services throughout the country. In a study of Chinese consumers conducted by Nielson Media Research and reported that China Telecom was highlighted as one of only 17 “Platinum Trusted Brands” due to its outstanding performance in the survey. A company with China Telecom’s size and success might have rested on its laurels, but China Telecom has not. Leveraging its strong foundation, the company announced a bold transformation strategy in 2004, with the goal of putting the company in a position to diversify its operation, support the growth of the Chinese economy and in turn, the world economy, and continue to strengthen its brand.

Chairman and CEO of China Telecom Wang Xiaochu explained that the company is using the transformation as a platform to encourage the growth of both revenue and the customer base and to win the race to occupy the top position of future information services. Expansion of broadband services, convergence of voice, data and video and a move from product management to brand management all characterize the transformation. He explained that the transformation strategy has brought about three important changes.

First, China Telecom is optimizing its revenue structure, whereby voice revenues are a diminishing percentage of overall revenues. Revenue from non-voice services such as broadband access, fixed network value-added services, integrated information services and systems integration and management has been growing steadily.

Second, the company is introducing new bundled and branded offerings to combat price erosion and make them more “sticky” to customers. Branded offerings like Best Tone (an integrated information inquiry service for phone users), BizNavigator (an integrated application suite that meets the needs of enterprise clients) and One Home (an integrated voice, data, TV offering through the home box) address the needs of three target groups; personal, enterprise and household. Fixed-line based voice search services, MPLS/ VPNs and IT solutions to support mission critical applications have all been launched and are enjoying promising adoption. The company is also offering “seed services” such as IPTV.

Third, China Telecom continues to strengthen its ability to grow with precision management that focuses on delivering value to shareholders and outstanding products and services to its clients. China Telecom’s management had the foresight to understand the importance of serving MNCs. While the company continues to invest in infrastructure, branding and customer service systems in China, it is at the forefront of expansion to serve MNCs. The company was the first among its peers to open operations in North America, and now has offices in Hong Kong, London and Brazil, with company-owned information technology services termed “Information Silk Road” that offer seamless services between the Americas, China, Asia and Europe.

Transformation in Action

China Telecom’s transformation is manifested in the lives and livelihoods of individuals, households, Small-to-Medium-Size Enterprises (SMEs) and MNCs doing business in China. Let’s take a closer look at three strategies that epitomize China Telecom’s transformation in action and indeed, have placed the future in our hands: BizNavigator, CN2 and China Telecom’s global expansion to serve MNCs locally.

BizNavigator

Biz Navigator was conceived as a way to provide IT support to local offices of MNCs and to enhance the competitiveness of SMEs, whose importance to the changing economy was recognized. Since its launch, it has been adopted by well over 500,000 SMEs.

China Telecom’s BizNavigator has proven valuable to SMEs and global MNCs with offices in China. BizNavigator exemplifies China Telecom’s mission to become an integrated information service provider, integrating communications services with application support services. BizNavigator provides industrial IT applications support for processes like sales, logistics management, supply and demand management, travel services, tax and other financial reporting. It allows clients to manage domain names, provides corporate e-mail, enables website creation and maintenance, provides virus protection, helps manage customer contacts, provides a data-rich office automation platform and more. All these are provided on a base of communications services ranging from broadband access to interactive teleconferencing and support services like equipment procurement and maintenance and LAN deployment.

As an example, BizNavigator was deployed in support of Guangzhou’s “Bridge for Business and Trade” service, which is a portal to connect suppliers with buyers. After just one month, there were over 22K daily hits on the site, and messages among the members increased at a rate of 2K per day. BizNavigator is delivering the future of integrated information services to China’s businesses and provides an excellent example of China Telecom’s Transformation Strategy in action.

The Business Internet Comes to Life

With the staggering demand for Internet services coming from within China and outside from MNCs expanding into the region, China Telecom’s leadership made a bold move to build an entirely new global Next Generation Network (NGN). The network was dubbed China Telecom Next Generation Carrying Network, or CN2, and it began rolling out in 2005. CN2 provides the global coverage, network technology infrastructure and management capabilities required for MNCs to successfully leverage China in their growth strategy. It’s an advanced communication and information network for the future.

Telecom Magazine reported that CN2 makes China Telecom one of the most proactive NGN carriers in the world. CN2 is an IPv6-capable backbone network leveraging new softswitches and protocols like DiffServ and MPLS, which boost performance. Five classes of service and QoS help CN2 guarantee reliability and performance of mission-critical and high-priority applications. Its MPLS-optimized architecture also enables Frame Relay and ATM traffic to be transported over a Layer 2 VPN, which promotes network efficiency and scalability. CN2 provides a highly-advanced network on which to deliver high value services using technology that will transition well into the future, allowing the company and its subsidiaries and partners to provide cost effective new offerings.

Expanding Around the World

Businesses today are networked for success. For many companies entering or expanding into China, the business plan depends on the availability of reliable communication services throughout the region. Without them, critical success factors cannot be met. China Telecom established subsidiaries like China Telecom Americas, China Telecom Europe and China Telecom Hong Kong to help assure that MNCs’ global operations thrive.

China Telecom and its subsidiaries consistently deliver uncomplicated solutions to complex problems – problems that stem from rapid expansion in China, the need to distribute content to tens of millions of people or to synchronize mission-critical applications on multiple continents. China Telecom’s clients depend on the company to enable their growth – and China Telecom – along with its local subsidiaries in Asia, the Americas and Europe – deliver.

China Telecom’s Transformation Strategy leverages the company’s expansive assets including:

  • International bi-lateral connectivity to 100+ countries
  • Broadband access to 300 cities in all 31 provinces
  • Trans-Pacific cables systems, including China-U.S., Japan-U.S., SEA-ME-WE3 in APCN2, SMW3, Flag, TAE and more.
  • CHINANET (China’s largest Internet network) and CN2, the business class IPv6-capable backbone Internet network
  • Over 670,000 employees worldwide who embrace the corporate philosophy “Customer First. Service Foremost.”

Conclusion

As predicted, China is a major driver in the world economy, and its continued effects are expected to be positive. Wise and experienced executives at China Telecom announced a multi-pronged transformation strategy that is changing the company into an integrated information services company at the height of communications services. The Transformation Strategy benefits shareholders and China Telecom’s many types of clients, including households, SMEs and MNCs and global carriers.

The Transformation Strategy today leverages the company’s massive, existing assets, and introduces new products like BizNavigator and CN2 and support services that enable positive change in people’s lives. Transformation enables the rapid growth strategies that MNCs are now executing in the region. No other telecommunications carrier offers the seamless network coverage, services and capacity connecting Europe, North America and Asia that China Telecom does. China Telecom’s network reach and performance help connect people and content and cost-effectively support mission-critical applications around the globe. China’s future is beautifully painted on the canvas for the world to see and China Telecom’s Transformation Strategy makes the colors bright.

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White Paper: Access China with Next Generation Networks

China Telecom is one of only a handful of elite carriers that has built entirely new IP networks in order to satisfy the complexities of globally distributed, Internet-based, mission-critical applications. China Telecom’s next generation network initiative, China Telecom Next Generation Carrying Network, or CN2, began its acclaimed commercial roll-out in mid-2005. Corporate entities, public sector organizations, carriers and managed service providers now have access to a broad range of highly reliable, high performance network services through the region’s best-connected and entrenched information provider – China Telecom.

Partnering for Success
Penetration of Internet subscribers, like the distribution of China’s nearly four million websites, is concentrated in more developed regions of China. It parallels the investments that have been made in all sorts of infrastructure such as the thousands of industrial parks that have been created to nurture upstart Chinese business, attract multi-nationals doing business in the region and retain them. What many foreign companies have discovered over the years is that in order to have long-term success in China, finding a strong local partner is crucial. China Telecom Americas and its parent company, China Telecom, helps multi-national companies and carriers develop and execute their market penetration strategies in China.

The Century’s Greatest Innovation

It has been suggested by some pundits that the Internet is the greatest innovation of the last 100 years, having shaped the global political landscape, fundamentally shifted the way economies develop and changed how people live, work, learn and play. The world is getting comfortable in a digital skin. Most of us would agree that the Internet has had a profound effect on our lives. According to Nielsen’s 2010 Global Online Survey, 40 percent of online consumers in Asia Pacific claim that the Internet has helped them make big decisions. Today global ecommerce is booming, e-mail and instant messaging communications have become ubiquitous and vital industries such as financial services rely on the Internet for mission-critical applications.

There’s a common global theme. Driven by consumer and business demand, Europe and Asia are now becoming Internet transit centers, a role that had once been dominated by North America. Data published by China Internet Network Information Center (CINIC) in August 2016 show that Internet adoption and use in China remains strong. The number of Internet users grew by 6.1% in 2015 and currently accounts for over 50 percent of China’s population (CINIC). Consider all of this testament to China’s potential: the country has 721 million Internet subscribers, more than double the population of the United States, and the number of mobile Internet users has reached at least 630 million.

So What’s Wrong with the Internet?
If so many people are using the Internet with positive results, what could be wrong? The Internet on which we depend today is wrought with weaknesses stemming from the fact that it was originally developed as a means for research universities to share information among their computers. As it evolved to be used by consumers, government, businesses, educators and researchers, it remained fundamentally a one-size-fits-all infrastructure.

The Internet’s founders could not have foreseen the level of dependency the global business community now has on the Internet as the foundation for the Information Technology (IT) stack, becoming the network of choice for all kinds of applications and communication methods – from voice to video. Who could have anticipated the many changes to the business environment that now affect all areas of IT, especially the network? Today’s IT executives must now make network architecture and operations decisions in consideration of these trends, which make up the new IT paradigm:

  • Globalization. Whether the company’s increasingly global view is driven by a global client base and/or global sourcing of services or materials, IT – from the network layer up to the business application layer – is supplying the enabling infrastructure to sustain the expansion.
  • A growing reliance on distributed, composite applications. The nature of distributed, composite applications is that resources are spread out among many physical and logical locations and they are comprised of IT assets that were not originally built and rolled out together. These applications are ever changing and leverage both old and new technologies. They are dependent upon underlying network performance to keep application resources on-line, performing at required service levels and synchronized worldwide.
  • A move from batch to real-time transaction processing. Industries like manufacturing, financial services and even retail that used to wait 24 hours to analyze the day’s operations data or complete clients’ transactions are now processing transactions in real time and expect to view performance data in real time through their Business Activity Monitoring (BAM) applications and Executive Dashboards. Real-time transaction processing smoothes network loads, yet also means that unless the network supports classes of service, mission critical financial trading transactions or important updates to the ERP system may experience performance bottlenecks due to a burst of e-mail traffic. Customer Service Level Agreements (SLAs) and IT’s operations performance targets are now higher than ever, and rely on real-time transactions, which in turn require network reliability, accessibility and performance.
  • Intense competition and consolidation in many vital industries. There is extreme pressure in nearly every industry to reduce the cost of operations. Information technology, from the business layer down to the network layer, has delivered cost savings by rolling out systems and processes that automate and control business operations. As new network protocols and services are commercialized by industry-leading communications companies, the cost of IT operations has been further reduced and the new IT paradigm has been enabled.
  • Government regulations. Although many regulations are process-oriented, others dictate stringent IT performance, new reporting capabilities and auditable levels of security in the IT infrastructure.
  • Greater availability and acceptability of digital content and web applications. Integrated Software Vendors (ISVs) and content owners have made billions of dollars of investments in web-enabling applications and creating digital content. The growth of digital content market is spurred by the commercialization of services that enable it to be consumed in a variety of ways; through a television, computer or mobile device. The convergence between mobile and fixed line services; between voice, data and video; and between devices all requires supporting network infrastructure to meet rising consumer demands.

Most consumers and business users of Internet services are incognizant of the new paradigm, but IT executives and network communications providers certainly are. The fact is that the Internet we use today (the majority of it running IPv4 technology) has had millions of patches applied to it in order to help it address this new IT paradigm. And in spite of its shortcomings, the Internet continues to be a strategic part of our lives and the global economy.

China Telecom’s CN2: The Business Class Internet
While many global users may be satisfied with the current Internet, some IT executives, industry analysts and innovators like publicly-traded China Telecom Corporation (NYSE: CHA) have seen both cause for concern and untapped opportunity. China Telecom has the majority market share of Internet users in China and 53% of the country’s Internet backbone. The company controls 70% of China’s local access and has led the country’s telecommunications evolution with service offerings like China VNet (Internet portal) and ChinaNet (IP and broadband network) and was the first Chinese carrier to establish a US operation to serve global clients, China Telecom Americas.

Forward-thinking and resourceful, China Telecom evaluated a constellation of emerging technologies, market conditions and trends and concluded that ChinaNet would meet much of the market’s needs for a long time, yet the company understood that there would remain an underserved market segment. The growing importance of IT to global competitiveness, the increasing dependence on networked applications, the booming economy and the influx of Multi-National Corporations (MNCs) investing in China would require an entirely new global Next Generation Network to meet both the staggering volume of demand for Internet services and the new IT paradigm – one that rests on the power of global, distributed, real-time and regulated networked operations. China Telecom laid plans for China Telecom Next Generation Carrying Network, or “CN2.” CN2 provides the global coverage, network technology infrastructure and management capabilities required for MNCs to successfully leverage China in their growth strategy. It’s an advanced communication and information network for the future.

Technology for the Next Generation
NOCs in Shanghai and Beijing equipped with service-aware management tools provide automated provisioning, proactive problem identification and resolution, network and application performance management, service level management and real-time reporting.

CN2 moves China Telecom from a traditional network carrier to a comprehensive integrated information service provider and reinforces its position as an ally to multinational businesses doing business throughout Asia.

A multi-billion dollar investment, CN2 was built from the ground up. It is an IPv6-capable backbone network leveraging new softswitches (the control layer) and protocols like DiffServ and MPLS, which boosts performance of its bearer layer. With five classes of service and QoS, CN2 guarantees reliability and performance of mission-critical and high-priority applications. The MPLS-optimized architecture also enables Frame Relay and ATM traffic to be transported over a Layer 2 VPN, ensuring support for both legacy traffic and new IP services over a single IP/MPLS network. This promotes network efficiency and scalability in order to satisfy the growing demand for IP services.

CN2 enables China Telecom and its subsidiaries to continue to support its legacy services while moving forward with cost effective new offering such as:

  • high-performing global VPNs such as IP/VPNs or Ethernet VPN;
  • converged services offering communications from anywhere to any device (combined voice, data and video services);
  • high-quality IP voice;
  • video streaming and other advanced broadband applications;
  • 3G mobile applications.

Pervasive Network Coverage
After nearly three years of tests and trials, the network began its commercial roll-out in mid-2005, beginning in China with core nodes in seven cities, aggregate nodes in 22 cities, edge nodes in 165 cities with direct coverage to 194 cities with the ability to extend further through ChinaNet. CN2’s Global Points of Presence (POPs) are located in New York, Los Angeles, San Jose, Washington DC, Frankfurt, Hong Kong, Beijing, Shanghai, Guangzhou, Singapore, London, Seoul and Tokyo. Connecting to ChinaNet’s over 35 million registered customers, CN2 reaches more subscribers in Asia than any other network, and provides direct connections to all major global ISPs for direct traffic routing. As an ultra long-haul Dense Wavelength Division Multiplexing (DWDM) network, CN2 provides better transit and minimizes signal delays.

Smart Operations Support System
Many global carriers struggle with the fact that their Network Operations Centers (NOCs) were built before the entire IT paradigm shifted – before real-time, distributed, mission-critical applications were running over the Internet and certainly before classes of service needed to be managed like applications. How can a company offer industry leading Service Level Agreements for multiple services without the tools to assure that they can be met?

China Telecom’s network investment has been matched by an equally powerful Operations Support Systems (OSS) infrastructure called China Telecom Global Support Center. NOCs in Shanghai and Beijing equipped with service-aware management tools provide automated provisioning, proactive problem identification and resolution, network and application performance management, service level management and real-time reporting. These OSS tools provide China Telecom’s global clients and carrier partners visibility into CN2’s performance. When distributed, composite applications experience performance problems, quickly identifying and isolating the root cause of the problem to the network, ERP system, middleware, database, J2EE application or even the mainframe becomes essential. CN2’s management tools empower Operations Support experts to rapidly rule out whether or not the problem is caused by the network.

CN2’s Benefits to Clients and Affiliates
While leveraging the assets that already exist on ChinaNet, CN2 offers a business class alternative that enables applications and communication services in Asia and beyond to perform at unprecedented levels. CN2 takes into account:

  • The need for immense scalability (of users, network capacity, thousands of interconnections, domains and IP addresses, etc.);
  • The need for application specific SLAs;
  • The growing global dependence on Internet based distributed, composite, mission critical applications;
  • Security as required by government regulations and today’s security best practices;
  • Support for alternate devices and converged media such as voice, data and video;
  • The need to find and fix performance bottlenecks quickly.

Corporate and Public Sector Organizations
Corporations and Public Sector Organizations will realize many benefits from CN2, including:

  • Improved performance of all networked applications;
  • Broader range of services available;
  • Greater flexibility in service choices;
  • Cost effectiveness – more services available through one investment;
  • Ability to store information centrally on the network, which means that they can obtain it from many points, rather than have to transfer data among devices;
  • Reliable management capabilities.

Communications Providers and Managed Services Providers
Communication and Managed Service Providers which have had a long history of collaboration with China Telecom are offered the following with CN2:

  • Best of breed services to offer to their clients either under the China Telecom brand or privately labeled;
  • Ability to generate new revenue streams from innovative, customizable service offerings;
  • Opportunity for easier and cheaper entry into the Asian market by working with China Telecom and its subsidiaries;
  • Availability of carrier-class multi-service IP networks and service driven switching;
  • Superior customer support by leveraging CT’s investment in OSS, making service fulfillment and service support available in real-time.

Summary
China Telecom’s CN2 initiative set out to leapfrog current technology and Internet service offerings in order to enable the growth of the Chinese economy and to remain the Internet service provider of choice serving China and the rest of the world. CN2 is not merely an enhancement or network upgrade. It represents a network and corporate transformation and one that will benefit the region, MNCs and carriers doing business in China for years to come.

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