The One Behind It All Chapter 26

Datang's situation is slightly better than that of Julong. Even with TD-SCDMA (one of the three major standards for 3G of the Telecommunications Alliance, the intellectual property rights are owned by Datang, and it has been industrialized. The other two major standards are WCDMA and CDMA2000). It has shown its talents in the 3G field, but because it started more than 10 years later than ZTE and Huawei, it is not comparable in scale. Moreover, there is no doubt that its growth is weak and its stamina is insufficient. The gap with ZTE and Huawei has become wider and wider. The bigger. In 1998, Datang's sales were about 10% of Huawei's and 25% of ZTE's; in 2001, Datang's sales were about 8% of Huawei's and 20% of ZTE's. By 2003, although Datang's sales reached about 1.8 billion yuan, they were only 6% of Huawei's and 8% of ZTE's. Moreover, in ZTE and Huawei's advantageous areas such as mobile, data, and optical communications, Datang has done almost nothing. It only relies on microelectronics and TD-SCDMA to obtain some incremental revenue. Its future depends entirely on the industrialization progress of TDSCDMA. Excessive uncertainty makes its prospects worrying.

In terms of system and business model, Datang's situation is somewhat similar to that of Julong. Compared with ZTE and Huawei, Datang's advantages and disadvantages are equally obvious. The advantages are in terms of talent and technology. The disadvantages are that it has been receiving national scientific research funds for a long time and lacks market awareness. Secondly, because it is a scientific research institute, its production capacity and sales system are almost No, on the contrary, there are tens of thousands of staff. At that time, Datang almost bet all its wealth and life on a technical standard that relies on state promotion---------TD-SCDMA, while ZTE and Huawei went all out in the three major 3G standards. The risk is greatly reduced.

Specifically, the "huge" laggard, or "China's" victory, begins with access equipment. The breakthrough of domestic manufacturers is in terms of products, switches, and in the market, it is reflected in entering the urban communication market from rural markets below the county level. Before 1994, China's local telephone field was mainly controlled by foreign communication equipment. Direct competition was too costly and might not succeed. ZTE and Huawei chose access equipment as a breakthrough point. This equipment can solve the interconnection between different standards. The problem. When ZTE and Huawei were doing well in the switch market, they began to invest in the development of access equipment. However, Datang and Julong, especially Julong, were not optimistic about access equipment at all and believed that this "setter"-like technology was not useful. There will be a future. ZTE and Huawei successively developed successful access equipment, cultivated and launched the market, and became the first contributors to the domestic manufacturers' comprehensive breakthrough in the local telephone field. When Julong and Datang realized the importance of access equipment, the market had already been divided. In the subsequent emerging markets, such as mobile, optical communications, and data fields, "Huge" failed to intervene in time. As a result, when the traditional switch market began to be saturated and mobile and other industries emerged, they naturally only shrank further.

Once upon a time, "Great China" was synonymous with China's communications manufacturing industry. Four companies relied on their group breakthroughs in tens of thousands of switches to defeat the "seven countries and eight systems" that had long been "unimpeded" in China. A few years later, due to technological innovation, mobile and data communications replaced switches and became the mainstream products in the communications industry. During this industry transformation, a gap also emerged between domestic manufacturers, and the gap became larger and larger mainly due to institutional issues. . "Hong Kong", which was once ahead of "China" in switch technology, gradually declined, while "China", which was purely a layman's intervention and had no professional background, caught up from behind and began to shape the leading image of China's communications industry in the global communications forest. At present, their influence has far exceeded the traditional fixed network field. They have their own outstanding performance in current or future mainstream fields such as mobile, data, optical communications, 3G, and NGN. And as they accelerate on the road to internationalization, they have attracted more and more widespread attention from the global communications industry and the vigilance of industry giants.

After all the changes in the world, looking back suddenly, the situation of "Great China" has changed. Due to institutional, technological, product, planning and other reasons, the fate of Great China is completely different. Due to management errors, Julong sadly withdrew from the communications market, and Datang could only struggle to survive. Only Huawei and ZTE carried the banner and went far away.