1. Telecom Market in China
Opportunities and Challenges
LEON LI @BEIJING , CHINA

2. Start to use Served in PLA
Slackware for 10 years
from 1997
With Red Hat
for 5 years
TAM,
RHCE & RHCA
Presales,
Account sales manager

3. “ It was the best of times,
it was the worst of times
Charles Dickens
”

4. China Telecom Industry 101

5. KEY FACT IN CHINA-TELCOM HOTSPOT
Population
Beijing 25M
Shanghai
25M
Taiwan
Shenzhen/
Hongkong 20M

6. KEY FACT IN CHINA-USERS
In China In USA
1 Billion
Mobile subscriber
vs. 230 Million
Mobile subscriber
3G Subscriber Smartphone User Internet User
150M 250M – 25% ( 30% growth/Y) 538M (40%) vs. 388M Mobile user
ARPU 20USD vs. Average 10 USD

7. KEY FACT IN CHINA-
LOCAL BRANDS WITH COMPETITIVE PRICE
78 USD 3.5” / 320*480
Android 2.3
MSM7225A 800M HZ
512 M
WCDMA/GSM Dual Simcard
3M Pixel Camera

8. CHINA TELCO INDUSTRY STRUCTURE
MIIT
Policy License
China China China
ZTE
Mobile Telecom Unicom
HUAWEI
Operators NEP

9. CHINA TELCO INDUSTRY STRUCTURE
China
Mobile
CM Head Quarter
Largest Carrier – GSM/TD-CDMA
Headquarter
655M mobile subscribers Departments
Employees 145K
Listed on both NYSE and HKSE
Revenue 83B USD 31 Provincial China mobile Research
Branch Internet Institute
Companies Company of China Mobile
Data service 22B USD

10. CHINA TELCO INDUSTRY STRUCTURE
China
Telecom
CT Head Quarter
Largest fix and broadband service company - CDMA
Headquarter
140M mobile subscribers Departments
80M+ broadband users
Listed on both NYSE and HKSE
Revenue 38.6B USD 31 Provincial
Beijing/shanghai
Branch
Research Institute
Companies
Employee 312K

11. CHINA TELCO INDUSTRY STRUCTURE
China
Unicom
CU Head Quarter
3rd operator in China – GSM/CDMA
Headquarter
202M mobile subscribers Departments
60M broadband users
Listed on both SSE, NYSE and HKSE
Revenue 33B USD 31 Provincial
E-business
Research
Branch Institute
company
Companies of China Unicom
Employee 214K

12. CHINA TELCO INDUSTRY STRUCTURE
HUAWEI
2nd NEP in the world private company
Headquarter is in Shenzhen
4 business groups:
--Enterprise, Carrier, Consumer and others
Revenue in 2011 : 32B USD
Employee 146K
Branches in 150 countries

13. CHINA TELCO INDUSTRY STRUCTURE
ZTE
Headquarter in Shenzhen
Revenue in 2011 : 13.5 B USD
Employee 89K
Branches in 107 countries

14. OPPORTUNITIES
• Huge mobile subscribers & Internet users with fast growth
• Enterprise begin to get used to open source
• A great number of Java developers
• Operators are forced to conduct innovation
• WECHAT’s popularity makes CM SMS/MMS income reduce

15. KEY CHALLENGES
• Open source community not active
• Enterprise still think open source as free
( RH GC revenue 23M USD, 50%+ are from OEM and most enterprise buy because of license issue)
• VOIP license still not issued
• No local presence
• No enough awareness for Mobicents

16. STRATEGY
• Leverage the community to prompt Mobicents
• local tech resource presence in China
• Focus on enterprise market in short term (e.g. call center solution)
• Build ISV ecosystem

17. THANK YOU
LEON LI
PHONE: +86-139 010 79663
MAIL: xli@telestax.com