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Foreign telecom operators are looking for opportunities to achieve success in China.
When the globalization of economy become inevitable, many top Chinese companies have already extended their arms to the overseas markets. Meanwhile, many foreign companies treat China as one of their most important markets to invest. Therefore, the cross-border telecom service becomes more and more important. Many foreign telecom operators think that is a great opportunity for them to achieve success in China.
According to a survey made by NDC Consultancy, a China-based consulting company specialized in telecom industry, foreign telecom operators usually adopt following development strategies:
Main clients of foreign telecom operators are multinationals that invest in China and major Chinese companies that have engaged in investing overseas.
British Telecom established Asia-Pacific area as the core of its globalization strategy. Its main business in this area includes MPLS service, the multi-channel Internet connection between Asia and the US, the submarine fiber optic cables connecting Asia and Europe. In China, British Telecom mainly provides services for the multinationals’ branches in China, such as Unilever, Reuters, Nestlé, Pepsi and so on. Some Chinese companies, such as China Airlines, China Ocean Shipping, Haier and Huawei also get telecom services from British Telecom when they invest in overseas markets.
SingTel from Singapore divides its corporate clients into small-sized clients and middle- and large-sized clients and provides respectively different services for them. The company provides data reserve, transmission, telephone- and videoconference for its clients in addition to the traditional communication services. The data and Internet business are the main revenue source of SingTel in China. They contribute 28% of its revenue every year.
Most of the foreign telecom operators choose to cooperate with local operators in China to achieve success.
KDDI Corporation from Japan builds a partnership with China’s leading IDC ISP supplier 21vianet and sets up a data center in Beijing to provide its clients with the services based on ICT technology in China. The data center, whose English name is Telehouse, is one of the most famous brands of KDDI in the overseas market.
The US-based AT&T cooperates with China Telecom and Shanghai Information Investment Co., Ltd to establish Shanghai Xintian Communication Co., Ltd. AT&T has 25% of the joint venture’s shares. With this joint venture, AT&T provides value-added services, such as video, VPN and so on, for its clients in China. By the end of May 2010, Shanghai Xintian Communication Co., Ltd has already built businesses in 30 provinces and municipalities in Mainland China and Hong Kong SAR. 2,864 companies have got benefits from the company’s terminals, services and maintenance.
The foreign telecom operators adjust their strategies according to the customers’ needs.
T-Mobile from Germany establishes T-Systems to provide ICT services. The new branch company that mainly provides high-quality comprehensive ICT solutions for the automakers in China is growing as fast as China’s automotive market. In addition to the Chinese market, T-Systems also provides ICT services in South Asia, Malaysia, Japan, and India.
Verizon enhances a fundamental framework of network in the Asia-Pacific area. With Hong Kong as its new network hub and data center, Verizon that provides professional and individualized services and client-centered solutions expects to meet the increasing demand from corporate clients. In China, the American company is negotiating with local operators to build a comprehensive IP service platform.
It implies that more international telecom operators will get into the Asia-Pacific market when the globalization continues. Meanwhile, the change to the value chain of telecom companies has urged the operators to turn into service suppliers. Competitive power of telecom companies depends on their comprehensive service ability.
When the globalization of economy become inevitable, many top Chinese companies have already extended their arms to the overseas markets. Meanwhile, many foreign companies treat China as one of their most important markets to invest. Therefore, the cross-border telecom service becomes more and more important. Many foreign telecom operators think that is a great opportunity for them to achieve success in China.
According to a survey made by NDC Consultancy, a China-based consulting company specialized in telecom industry, foreign telecom operators usually adopt following development strategies:
Main clients of foreign telecom operators are multinationals that invest in China and major Chinese companies that have engaged in investing overseas.
British Telecom established Asia-Pacific area as the core of its globalization strategy. Its main business in this area includes MPLS service, the multi-channel Internet connection between Asia and the US, the submarine fiber optic cables connecting Asia and Europe. In China, British Telecom mainly provides services for the multinationals’ branches in China, such as Unilever, Reuters, Nestlé, Pepsi and so on. Some Chinese companies, such as China Airlines, China Ocean Shipping, Haier and Huawei also get telecom services from British Telecom when they invest in overseas markets.
SingTel from Singapore divides its corporate clients into small-sized clients and middle- and large-sized clients and provides respectively different services for them. The company provides data reserve, transmission, telephone- and videoconference for its clients in addition to the traditional communication services. The data and Internet business are the main revenue source of SingTel in China. They contribute 28% of its revenue every year.
Most of the foreign telecom operators choose to cooperate with local operators in China to achieve success.
KDDI Corporation from Japan builds a partnership with China’s leading IDC ISP supplier 21vianet and sets up a data center in Beijing to provide its clients with the services based on ICT technology in China. The data center, whose English name is Telehouse, is one of the most famous brands of KDDI in the overseas market.
The US-based AT&T cooperates with China Telecom and Shanghai Information Investment Co., Ltd to establish Shanghai Xintian Communication Co., Ltd. AT&T has 25% of the joint venture’s shares. With this joint venture, AT&T provides value-added services, such as video, VPN and so on, for its clients in China. By the end of May 2010, Shanghai Xintian Communication Co., Ltd has already built businesses in 30 provinces and municipalities in Mainland China and Hong Kong SAR. 2,864 companies have got benefits from the company’s terminals, services and maintenance.
The foreign telecom operators adjust their strategies according to the customers’ needs.
T-Mobile from Germany establishes T-Systems to provide ICT services. The new branch company that mainly provides high-quality comprehensive ICT solutions for the automakers in China is growing as fast as China’s automotive market. In addition to the Chinese market, T-Systems also provides ICT services in South Asia, Malaysia, Japan, and India.
Verizon enhances a fundamental framework of network in the Asia-Pacific area. With Hong Kong as its new network hub and data center, Verizon that provides professional and individualized services and client-centered solutions expects to meet the increasing demand from corporate clients. In China, the American company is negotiating with local operators to build a comprehensive IP service platform.
It implies that more international telecom operators will get into the Asia-Pacific market when the globalization continues. Meanwhile, the change to the value chain of telecom companies has urged the operators to turn into service suppliers. Competitive power of telecom companies depends on their comprehensive service ability.