No.367 April 3, 2009
Special Issues  
  USITO-AmCham Joint Breakfast Series: 3G & Corporate Market
 
USITO Joins 2009 China RFID Expo as a Supporting Agency
 

On March 31, 2009, USITO and the AmCham-China IT/Telecom Forum jointly hosted the "ICT Breakfast Series". The event was named "3G and its Impact on China's enterprise communication market", featuring Tan Choon Seng, Vice President of Avaya. The meeting discussed 3G and its impact on China's enterprise communications market. USITO members please click here to download the preso used by the speaker.
Top Story

Media Report: Telecom Carriers to Promote WAPI

A senior executive with China Telecom said in the 3/25/2009 China Broadband Forum that China Telecom is currently relying on the WAPI standard to promote its mobile business strategy. The executive called for more support for the WAPI standard. Sources said that at the current stage a great deal of CDMA+WAPI handsets have been developed and are ready for commercial uses. (story in Chinese: http://news.ccw.com.cn/commu/htm2009/20090326_608447.shtml)

USITO Notes: WAPI, short for Wireless Authentication and Privacy Infrastructure, was a Chinese homegrown standard for wireless local area network. Soon after birth, the WAPI was evolved to be a trade issue between China and U.S. ICT industries, once ignited top level government intervention, as in 2004 Chinese Vice Premier Wu Yi and U.S. Secretary of State Colin Powell stepped in and temporarily cooled down the issue.

We have recently noticed the resurfaced WAPI issue in China telecommunication sector. The controversy seemed subsided since 2004, but again rears its head on the ground right now. We updated the situation in 1/5/2009 to our members that China would ˇ°probablyˇ± pick up the WAPI standard through more substantial enforcement measures. Members please click here to download the latest report prepared by USITO updating this issue. It attempts to brief USITO members important development for the WAPI standard in China's telecom sector, but doesn't draw conclusion on possible government decisions on the WAPI. We are grateful for member feedbacks (wenjie@usito.org).

 


USITO Issue Paper No.630 -

China Wireless LAN Standard Update
April 2, 2009


CNCA Announces Its 2009-2010 Development Plan

CNCA (Certification and Accreditation of China) has just released its ˇ°Summary of 2009 -2010 Development Plan of China's Certification and Accreditation Undertakingsˇ±, according to a 3/24/2009 post in the website of the ministry. The opening statement of the document says that 2009 and 2010 are the two critical years for implementing the ˇ°11 th Five-Year Plan for the Development of China's Certification and Accreditation Undertakingsˇ±, which lays the background for formulating such document.

The document summarizes several important issues for CNCA to highlight during the two years, one of which is the information security. It says CNCA will ˇ°regulate domestic information security certification testing market, and implement nationwide streamlined certification regime.ˇ± In addition, the ministry will take two different measures for carrying out product certification: 1.) Compulsory product certification and 2.) Voluntary product certification. For more details on the Summary, members please click here for a USITO translation.

USITO Notes: The Plan highlights both compulsory and voluntary certification approaches for products to be certified, though details are not available in the plan and need further interpretation. The world common practice for assessing infosec on the consumer market information security risks is on a voluntary basis. Moreover, transparency is also important for governments and ICT companies to better cope with infosec threats and promote accountability and confidence in security as products can be vetted by an open community of experts. USITO has been proactively engaging in the dialogue with China's infosec authorities and would continue to encourage any positive signs in the development of China's infosec regime.

SARFT Bans Unlicensed Web Video Shows

In March 30, 2009, SARTF (State Admin of Radio, Film, and TV, China's broadcast watchdog) posted a notice in its homepage, stating that the Chinese Internet sites will be banned from showing unlicensed films and TV shows.

Sources from SARFT said that at the current stage, most of the popular TV programs broadcasted in China's Websites are unlicensed or pirated, there is an urgent need to halt this situation. tech.sina.com.cn, 3/30/2009

USITO Notes: This should be applauded as a positive step in improving the cyber IPR protection framework. By limiting free uploading or sharing of unlicensed foreign films and TV shows on domestic video-sharing Websites, foreign copyright holders are able to better take hold of their digital rights.

At the same time, it is also an effort to tighten control in the virtual cyber world. As more and more contents accessible online, the government may find it harder to implement their propaganda , educational or cultural strategies.

Selected Chinese Media Reports

3G Mobile Communications

MIIT Forecasts 3G Brain Shortage

According to an MIIT Human Resources Center official, with the approval of three 3G licenses in this January, China has entered 3G era, and thus urgently needs more 3G talents. The HR center predicted China will face a shortage of about 1m 3G specialists. Chinese Text

Huawei Publishes First HSPA+ Network in Asia-Pacific

Huawei and Singaporean Telecom Operator StarHub announced that they worked together to publish the first HSPA+ commercial network of the Asia Pacific region in Singapore . StarHub subscribers will be among the first users enjoying HSPA+ mobile broadband services. In order to satisfy the higher requirements of Singaporean users for mobile data services, StarHub chose Huawei in May 2008 to expand the capacity of and upgrade its 3.5G mobile broadband network to HSPA+. Chinese Text

Alcatel-Lucent Wins Contract from China Mobile's CMPak

Alcatel-Lucent announced that it signed a deal with CMPak , China Mobile 's wholly owned subsidiary operating in Pakistan , for expanding the capacity of GSM/EDGE network. The contract is valued at USD 52.87m . Now the expansion project is ongoing, and upon completion, CMPak will be able to deliver better services in south Pakistan . Chinese Text  

Nokia, PTAC Sign Mobile Phone Deal

Nokia announced that it renewed the mobile phone supply contract with China PTAC Communications Services, which is estimated to be at least USD1.76b. China PTAC Communications Services is a state owned business and trade firm launched by China PTAC, established in 2000. Chinese Text

China Mobile to Acquire South African Company

According to a foreign media report, sources said that China Mobile is looking for partners to jointly acquire the assets of South African operator MTN Group in Iran , Syria and Sudan , valued at USD2b. It is said that China Mobile has contacted many foreign operators for the proposed acquisition. Chinese Text

Software

CDC Software Wins Contract from the Netherlands

CDC Software Corporation, the wholly owned subsidiary of China.com, announced on March 30 that it has received the order placed by Intersnack, a famed snack manufacturer in the Netherlands , for delivering CDC Factory manufacturing and operation management solutions for its two factories sited in Dutch. Chinese Text

Ali Software to Develop Management Software Market

Ali Software, a subsidiary of Alibaba Group, announced on March 31 its plan to invest RMB 1b to popularize management software among small and medium sized enterprises (SME), and promise the free use of the software in the next three years. According to President Wang Tao, thanks to tremendous e-commerce user resources of Alibaba Group, Ali Software is the software service provider who is well aware of demands of domestic SMEs. Chinese Text

2009 China IT Leaders Summit Held in Shenzhen

The 2009 China (Shenzhen) IT Leaders Summit, reputed as the Top-level Annual Event of China's Information Industry, was held in Shenzhen on March 29. Zhang Xiaoqiang, Vice Chairman of NDRC and Lou Qinjian, Vice Minister of MIIT sent letter of congratulations. More than 50 IT enterprise leaders attended the summit and made speeches. Chinese Text

83 Pilot Firms Designated for IT Application

The National Development and Reform Commission approved 83 projects as the pilot projects under state IT application program. 83 enterprises were designated as pilot for implementing these projects. These projects involve 7 categories of services, including mobile E-commerce, e-certification, SME e-commerce, etc. Chinese Text

 

Innovation

Shenzhen Contributes 1/6 Output Value of the Electronic Information Industry

The 2009 China (Shenzhen) IT Leaders Summit, reputed as the Top-level Annual Event of China's Information Industry, was held in Shenzhen on March 28. Xu Zongheng, Shenzhen Mayor, said in his speech that the electronic information industry has become the first pillar industry of Shenzhen, posting an output value of over RMB 780b in 2008, accounting for about 1/6 of China 's total output value, a growth of 13% year on year. Chinese Text

China In 46th Place in Global National IT Capability

The World Economic Forum published the latest Global Information Technology Report on March 26, stating that Denmark ranks No .1 in ICT development and application, followed by Sweden, U.S. , Singapore and Swiss. China rose to 46th. The Global Information Technology Report is an annual report prepared by the World Economic Forum and INSEAD, known as the most comprehensive and authoritative report reflecting the ICT impact on the development and competitiveness of various economies globally. Chinese Text

Huawei Wins U.S. Contract

A report posted on the website of Wall Street Journal, Huawei, one of China 's top telecom equipment vendors, is now trying to enter U.S. market. Sources said that Huawei has won the contract from Cox Communications, a U.S. digital cable TV provider, for supply of mobile phone network equipment. Before that, Huawei and other Chinese firms have never had access to U.S. market for reason of allegedly national security. Chinese Text

Supreme Court: IP Violators Face Harsher Punishment

On March 29, the Supreme People's Court published the Guidelines of the Supreme People's Court on Several Issues Concerning the IP National Strategy Enforcement. According to the Guidelines, the IP-related judicial relief means shall be applied to enhance the protection of IP based on law. The Guidelines highlight the need to leverage the role of indemnity in punishing the IP violations. Chinese Text

Lenovo Plans to Move Production Overseas

A Lenovo senior official disclosed on April 2 that Lenovo is planning to build factories in India and Brazil . He explained that the reason is the attractive tax incentives offered by local governments in the countries. Chinese Text

Internet

SARFT Closes Illegal Websites

On March 30, SARFT worked with telecom regulatory department to published the list of 162 websites which were closed down for reason of spreading porn and lewd content. These websites, without receiving the license for delivering audio and video programs via information network issued by SARFT, illegally provide audio and video services on Internet and disseminate large numbers of porn and lewd programs. Chinese Text

China Radio Association Founded

The inauguration conference and the first general assembly of China Radio Association was held in Beijing on March 30. The list of members of the 1 st executive committee was approved at the general assembly. Xi Guohua, VICE Minister of MIIT was elected the Chairman. The purpose of the association was to bridge the gap between the regulatory department and large numbers of radio station users, and make the most of the limited frequency resources so as to perform better functions. Chinese Text

Telstra Plans to Acquire Chinese Internet Firms

According to a foreign media report, Sol Trujillo, CEO of Telstra, the top telecom operator in Australia , said on March 30 that Telstra is considering investing in telecom and Internet firms in China and other Asian countries. He believed that the deployment of 3G mobile phone network in China will stimulate the Internet content and service demands, and acquiring content providers will help Telstra deliver more services in Australia . 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.

You can also visit this link for the HTML version of this newsletter: http://www.chinatzone.com/weekly/weekly090403.htm

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