CCID Consulting recently released the report, "Review and Trend Analysis on China's WLAN Market in 2008H1".

China's WLAN market developed rapidly in 2008H1 under China's policy of telecom reorganization and wireless city. The sales revenue of China's WLAN market in 2008H1 reached 1.38 billion Yuan, up 31.4% year-on-year. By the end of June, 2008, China's hotspots reached 10,000, covering 110 cities. More than 30 cities have incorporated wireless cities in their strategic infrastructure planning. CCID Consulting forecasts that in 2008H2, with various WLAN operation modes' releases and carriers' purchase and deployment surge, by the end of 2008, China's WLAN market will reach 2.8 billion Yuan.

WLAN Market's Characteristics in 2008H1 Reorganization Process Accelerates Carriers Demand Demand for WLAN surged following the telecom reorganization scheme was released in 2008H1. Before the reorganization, many carriers were already preparing WLAN network. China Telecom have an optimistic view of WLAN network, compared with other carriers, thus has obvious advantage. China Telecom has invested heavily in preliminary layout, demonstration and scheme draft of WLAN network scale, coverage area and business development; it went through equipment bidding, equipment testing and manufacturers' determination; and then carried out site selection so as to gestate WLAN leading deployment plan.

After the release of telecom reorganization, China Telecom acted shifty to set up sites, made active and cautious purchases, and promoted WLAN deployment vigorously. In 2008HI, China Mobile enlarged WLAN deployment and actively deployed WLAN equipment around Olympic venues.

Wireless City Construction Drives Rapid Development of WLAN Market Urban informatization leads to the development of wireless cities that comply with the nationwide trend. In 2008H1, under the support of national policy, and the joint effort of carriers and WLAN manufacturers, wireless cities developed rapidly, which in turn drove the WLAN market upwards. Major carriers invest large funds to carry through WLAN deployment; non-mainstream carrier CHINACOMM made large investment in Beijing; H3C, Cisco, Nortel actively seize the opportunity to exert force in carrier and industrial market.

Brand Competition Heating up

With three kinds of H3C product entering China Telecom's WLAN centralized purchase list, H3C becomes the biggest WLAN products and solutions provider for China Telecom, and H3C firmly occupies China's WLAN market's leading position. D-link, TP-link and Netgear did not take much benefit in the carrier market, as they expanded competition to the family user market.

WLAN Market's Development Trend in 2008H2

Carriers Actively Explores WLAN Operation Mode, Product Infiltration Speed Accelerates

After the telecom reorganization, mastering complete services rend and good operation mode are the successful factors. In order to remedy defects in the wireless network, China Telecom actively studies the success of foreign examples, and explores effective profit modes. China Netcom actively plans to release WLAN services and products, which will be released in 2009. Carriers WLAN operation modes' release will arouse users' demands for WLAN, which will drive the deployment of WLAN terminal market. CCID Consulting forecasts that China's WLAN market will reach 2.8 billion Yuan in 2008.

WIFI Mobile Phones Have Broad Prospect, Policy Loose Can be Expected Soon

Currently, using mobile phone with Wi-Fi in China is inhibitive, but the following factors show that the policy is likely to loosen up:

Firstly, with large-scale construction of WLAN infrastructure, especially in Beijing, Shanghai and Guangzhou, their distance with wireless city is smaller, which provide good network foundation and condition for wireless network.

Secondly, people's life rhythm becomes faster. The aim of using mobile phone to deal with many things is becoming a main trend. People could go online, mobile stock, electronic transaction with Wi-Fi function.

Thirdly, China's domestic manufacturers, such as Huawei and ZTE have the strength to carry through Wi-Fi independent development.

Source:CCID