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USITO Weekly Newsletter 6/18/2010
2010-07-15

 
 

No.427 June 18, 2010

Special Issues  
 

On June 18, USITO held a member meeting with Dr. Stewart Kowalski, Senior Security Official from Huawei Technologies who made a speech to USITO members on "Socio-technical Security Modelling: Telecommunication Infrastructures in Focus".

On July 1, USITO will host a farewell party for U.S. Embassy friends Paul Taylor, Jeanette Chu and Teresa Howes, please click here for the notice.

Top Stories

White paper on the Internet in China

On June 8 Tuesday, the Information Office of the State Council of China (SCIO) published a white paper on China’s Internet policy. The paper lists facts of the development and use of the Internet in China, briefs China’s policies on the Internet, and stresses the guarantee of citizens' freedom of speech on the Internet. It states that by the end of 2009 the number of Chinese netizens had reached 384 million, 618 times that of 1997, after an annual increase of 31.95 million users. It also states that the Chinese government has been actively advocating and supporting the development and application of the Internet across the country. The white paper also offers a loose guideline for the government's basic priorities in making Internet policy: active use, scientific development, law-based administration and ensured security.

The white paper is 31-page long, carrying six sections: Endeavors to Spur the Development and Application of the Internet, Promoting the Extensive Use of the Internet, Guaranteeing Citizens' Freedom of Speech on the Internet, Basic Principles and Practices of Internet Administration, Protecting Internet Security, and Active International Exchanges and Cooperation. Please click this link for the full white paper: http://www.chinadaily.com.cn/china/2010-06/08/content_9950198.htm

USITO Notes: The white paper reviews history of China’s Internet, starting with the first connection in 1994, a single 64-kb line in Beijing’s Zhongguancun district. It then draws a line to the present day, when China boasts more Internet users than any other country.

The paper contains an entire section on "guaranteeing citizens' freedom of speech on the Internet." The likely intent is to mollify concerns from certain sectors of society that a stricter Internet policy in recent years threatens the only relatively open forum in Chinese society. However, the paper gives ample flexibility for the government to selectively apply censorship: “While exercising such freedom and rights, citizens are not allowed to infringe upon state, social and collective interests or the legitimate freedom and rights and other citizens.”

In the English-language version of the paper, Twitter is mentioned as a positive development for China's Internet and evidence of Internet freedom.“The newly-emerging online services, including blog, Twitter, video-sharing and social networking websites, are developing rapidly in China, and provide greater convenience for Chinese citizens to communicate online.” Twitter is a US-based service that is blocked in China. It seems the Twitter reference is a mistranslation, as the Chinese version only refers to “micro-blogs” in general. Either that, or the translator has a good sense of irony.


India Selects Security Audit Firms to Certify Imported Telecom Gear

News from India early this week said that the Indian Department of Telecommunications has identified fifteen companies who will certify telecom equipment imported to India from foreign telecom equipment vendors. The Indian authority began selecting the audit firms since early this month and so far it has shortlisted fifteen companies, including British Telecom (BT) to do the certification work.

Official sources said that after Chinese government protested against India's new rule barring Chinese telecom vendors, the Indian government has asked the Department of Telecommunications to pick up a third-party international security audit firm to help certify the imported equipment. Imports to India must first go through the audit firm for security evaluation before purchase by Indian telecom carriers. The audit firm may need to visit the plant of the vendor among other auditing measures, before issuing a security clearance. The Indian government said it will then allow telecom companies to import the equipment from foreign suppliers.

Indian government said the solution will be temporary one, valid for the next 12 months. India currently does not have any such certification agencies to certify telecom security issues, according to a June 13 report from the Press Trust of India. It is said the Indian government is also taking measures to establish a domestic certification agency to replace the international firms after the 12 month period.

USITO Notes: This is the most recent development, after India's initial brand caused a great deal of fuss in India as well as in the Sino-Indian bilateral relationship. The Indian government has finally decided that it will allow the Indian telecom companies to use Chinese made hardware if they can pass the "security audit".

This decision may allow India to avoid painful delays in Indian telecom projects as well as hurting Indian carriers by forcing them to pay more for non-Chinese alternatives. The Department of Telecommunications may allow Indian carriers to eventually "self-certification", however, in such cases, a bank guarantee would also be required. In the event that a security threat is detected, the operators will forfeit their bank guarantee and may also face criminal proceedings.

The Department of Telecommunications has also drawn up a comprehensive list of core equipment that will require mandatory security clearance by the international security audit agencies. We have found that this product list shares items in common with China's 13 information security product list which requires China's CCC test. Key items in the Indian list include: mobile switching centres (MSCs), MSC servers, routers, LAN switches, packet data serving nodes (PSDN), media gateways, serving GPRS support nodes (SGSN), soft switches, call servers, firewalls, intrusion detection systems, intrusion prevention systems, session border controllers (SBC), operation support systems (OSS) and provisioning management systems, among others. We will continue to track the development of this issue.

Selected Chinese Media Reports
 

Trade and Investment

MOC Calls for Fair Treatment from India

Ministry of Commerce spokesman Yao Jian said in Beijing on June 12 that Indian government should give equal treatment to telecom equipment from foreign countries, and open its market further to promote the economic and trade relations between China and Indian. According to Yao, the telecom equipment screening rules released by India in the past months have seriously affected the contracts signed betwen China’s Huawei and ZTE and Indian enterprises, which are worth about USD 5 billion. He disclosed that to date no Chinese enterprises have obtained a security clearance from Indian authorities for exporting telecom equipment to India. Yao pointed out that Chinese telecom equipment has been fully tested in the markets of developed countries, which proves its compliance with market requirements, saying that the abruptly imposed security screening constitutes a discrimination against Chinese products. Chinese Text 

Tata Communications Call off JV Plan with Chinese Partner

India’s telecom operator Tata Communications said it has terminated its proposed plan to build a joint venture with China Entercom. Tata Vice President Srinivasa Addepalli explained that due to uncertainty in obtaining the approval from Indian regulatory department, both parties have agreed to terminate this JV plan. However, Tata emphasized that both parties will continue to provide VPN and Ethernet services in Chinese major cities. China Entercom, a company controlled by CITIC, is a licensed provider of IP-VPN and other value-added services. Chinese Text

3G and Mobile Communications

China Mobile Subscriber Base Shrinks Decline in Pakistan

Statistics released by Pakistan Telecommunication Authority show that the number of subscribers of ZONG service provided by China Mobile Pakistani company saw a decline by 300,000 in the past two months. Since entering Pakistani market in February 2007 to deliver telecom services, the market of Paktel/CMPak, which was in a plight due to bad management, has grown considerably. But CMPak is not among leading operators to date in Pakistan. China Mobile announced in April that it would invest USD 300 million in Pakistan in 2010, for purpose of extending infrastructures. Currently, Pakistan has six mobile operators including ZONG. Chinese Text

Pilot Cities Selected for 3C Convergence

Following the approval of overall principles for pilot implementation of 3C convergence at the beginning of June, the selection of pilot cities for implementation of 3C convergence plan has become a top priority. Sources told the media that 10 cities may be decided on for trial implementation of 3C convergence. The State Council has raised 5 requirements for selection of pilot cities: completion of upgrading of cable network, certain number of cable network subscribers, high consumption power in pilot cities, completion of restructuring of pilot cable service operators, and availability of financing capability or public company background. According to the schedule for pilot implementation plan, the cities selected will be announced late this month. Chinese Text

ZTE Wins Big Contract from China Telecom

ZTE announced in Singapore on June 16 that it has been awarded China Telecom’s RMB 1 billion contract for supply of PON equipment. ZTE’s PON equipment will support the urban optical network project launched by China Telecom in 2009, aiming to provide faster data rate for broadband access users and improve their experience. According to the contract, ZTE will supply ZXA10 xPON access system. This new solution is based on triple-play service, and can provide sound multi-broadcast and DBA capability, supporting high speed broadband access service including HIS, VoIP, IPTV and cable TV. Under the China Telecom plan, 12Mbps broadband access service will be made available to over 70% of rural areas, and the broadband access data rate will increase to 100Mbps in major cities across China. Chinese Text

China Telecom to Launch IMS Centralized Procurement

A China Telecom official revealed that following the conclusion of IMS pilot procurement work launched by China Telecom at the end of last year, China Telecom is likely to kick off a round of nationwide IMS centralized procurement as early as this July. IMS refers to the architecture of future networks supporting the fixed-mobile convergence, and is considered as an important move in implementing full-service strategies. Three telecom carriers are now accelerating their development paces in this area to acquire a uniquely advantaged position. Bidders may include Huawei, ZTE, Nokia-Siemens, Alcatel-Lucent, and Ericsson. Chinese Text

Software

Kingdee Acquires Firstsoft

Kingdee Software announced on June 17 that it has acquired Shenzhen Firstsoft Technology Development Co., Ltd., a professional collaboration software developer, in the form of acquisition of assets at a price of RMB10 million. Kingdee also introduced its brand new concept for collaboration platform: WORK-IN-ONE, providing integrated solutions to facilitate management in "Information, Business and System Collaboration". This was the third merger and acquisition case for Kingdee this year. Collaboration software is software used by individuals or organizations to enable communication and collaboration. Chinese Text

Ufida Software to Acquire Infoservice

Ufida Software announced on June 18 that it will work with its Jiangxi-based subsidiary to acquire 100% stakes of Shanghai-based Infoservice at the total price of RMB 491 million, of which, Ufida contributed RMB486 million to get 99% stakes. Infoservice is a leading provider of auto software and solutions, as well as auto-related consulting service, system integration of supporting computer software and hardware and auto-related IT outsourcing service. Its key customers include Shanghai Volkswagen, FAW-Volkswagen. Ufida said that it hopes to, through this acquisition, seize the growth opportunity in the auto software and relevant consulting service sector, and acquire the market leadership. Chinese Text

Internet

360buy.com to Set Up Open Platform

360buy.com, one of China's largest B2C e-commerce websites, plans to set up a third-party open platform to improve its services. According to reports in local media, the company is reportedly preparing for this new project and a new team for the development of this project has been established, led by Liu Shuang, strategic assistant president of 360buy.com. An insider revealed to the local media that 360buy.com's new third-party platform aims to open its e-commerce order fulfillment capabilities to serve more third-party vendors. On the other hand, it will be used to cope with competition from other e-commerce operators in China. Xu Lei, vice president of 360buy.com, also confirmed that the company is currently discussing matters related to the third-party platform. However, Xu said this is a long-term project and no detailed plan is yet available. Chinese Text

China Says Google Must Apply License for Maps

China's State Bureau of Surveying and Mapping said on May 21 that companies operating online map services must obtain a permit. The maps must reflect government policy on disputed territories and remove military-related addresses. Sources from Google Inc. said the company is now studying this Chinese rule which require online map services to obtain a government permit in order "to understand their impact on our map products in China." Early this year Google stopped following Chinese requirements to self-censor Web searches by redirecting mainland users to its Hong Kong site. Chinese Text

 

USITO selected and translated the news summaries above. If you are interested in learning more details about the above Chinese language links, you are welcome to contact us (wenjie@usito.org) to sponsor the translation of that report.

 

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