VOIP in China
The Asian Wall Street Journal (AWSJ) shows that China leapfroged the US and Europe in the usage of VOIP.
The reasons are pretty clear :
The country is vast and for a long time, there was hardly any fixed line connection in many parts of the country. It is of course easier now to initiate the deployment of the newer technology first. The carriers that came into being 5 years ago after the deregulation of the industry in China save a lot of cash installing Internet based equipment instead of traditional switches. Thus, they didn't experience the conflict of interest players in the US experience, who see VOIP (or other technology for that matter) as threat to their business model.
The economic growth of China. It is raising ahead with an annual GDP growth of 8% or more. So more and more people crossed the line to the middle class - China was hugely successful in eliminating poverty. And naturally, those people want to have telephone services. The AWSJ writes that of the 300 million with phone services in China today, just over half of them got the service in the past 4 years;
Accompanying this point is a general price decline in the service - AWSJ quotes that the costs for domestic long-distance calls is less than a "Nickel" per minute and that a call to the US costs only 25 cents per minute vis-a-vis US$ 1 a few years back.
We are not commenting on this now, as the numbers speak for themselves. Anyone who wants to comment?
(By Asia Business Consulting)
The reasons are pretty clear :
The country is vast and for a long time, there was hardly any fixed line connection in many parts of the country. It is of course easier now to initiate the deployment of the newer technology first. The carriers that came into being 5 years ago after the deregulation of the industry in China save a lot of cash installing Internet based equipment instead of traditional switches. Thus, they didn't experience the conflict of interest players in the US experience, who see VOIP (or other technology for that matter) as threat to their business model.
The economic growth of China. It is raising ahead with an annual GDP growth of 8% or more. So more and more people crossed the line to the middle class - China was hugely successful in eliminating poverty. And naturally, those people want to have telephone services. The AWSJ writes that of the 300 million with phone services in China today, just over half of them got the service in the past 4 years;
Accompanying this point is a general price decline in the service - AWSJ quotes that the costs for domestic long-distance calls is less than a "Nickel" per minute and that a call to the US costs only 25 cents per minute vis-a-vis US$ 1 a few years back.
We are not commenting on this now, as the numbers speak for themselves. Anyone who wants to comment?
(By Asia Business Consulting)
posted by Andreas @ 11:12 pm
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