According to IHS iSuppli's China Electronics Supply Chain Services, as data usage is increasing and increasing pressure on the network capacity of Chinese wireless operators, China is deploying a public wireless local area network (WLAN) on a large scale to offload data traffic.
As of the end of the first half of 2011, the number of mobile users in China reached 906.8 million, an increase of 15.4% over the same period in 2010.
Among them, 2G wireless standard users accounted for the majority, 826.3 million, an increase of 8.7% over the same period last year. However, the growth of 3G subscribers is more rapid, a substantial increase of 219.5% over the same period last year, reaching 80.5 million.
3G users can access mobile Internet services. The rapid growth of such users not only increases the amount of data transmitted to wireless networks, but also puts a lot of pressure on operators' network capacity and return on investment. Operators realize that wireless cellular networks may have difficulty keeping up with the current growth rate of mobile data demand.
To this end, China is launching WLAN in public places to offload data traffic. Compared with cellular infrastructure equipment, the cost of WLAN is lower, and the equipment is deployed faster, so it is more suitable for the above purposes.
This year China's three major telecom operators continue to deploy hot spots. In the first half of 2011, China Mobile's hotspots increased to 84,200, a 133.9% increase from the end of 2010. China Mobile plans to launch a centralized tender for WLAN equipment with more than 2 million access points in December.
China Telecom said in May that it will increase the number of its WLAN hotspots to 1 million by the end of 2012. China Unicom has kept a low profile and completed the procurement of 400,000 access points in August 2011.
The large-scale deployment of WLAN in China started in 2008, and there are currently more than 50 WLAN equipment manufacturers, mainly domestic enterprises. As of the end of 2010, China's three major operators have established more than 20 partnerships with WLAN equipment manufacturers, but there are no suppliers with prominent advantages.
Last year, the traditional architecture using fat access points was replaced by a centralized WLAN architecture using access controllers (AC) and thin access points. The centralized WLAN architecture allows network managers to adopt a structured and hierarchical control mode for multiple access points in enterprises and public places. In addition, WLAN devices are replacing 802.11b / g devices based on the increasingly popular 802.11n standard.
The shift to a centralized WLAN architecture stimulated the activities of China's three major operators. For example, from June to September 2010, China Telecom organized technical tests on the centralized WLAN architecture. A total of 33 WLAN suppliers participated in these trials, and 31 were qualified to enter the second phase of contract bidding. China Telecom concluded its 2010 centralized bidding for WLAN equipment in February 2011 and selected 17 WLAN partners. The order involved approximately 110,000 802.11b / g access points.
At the same time, China Mobile started deploying WLAN hotspots on a large scale for the first time at the end of 2010, and completed the bidding for WLAN equipment contracts for 1 million access points in March 2011. By the end of 2010, China Mobile had established about 36,000 hot spots, more than 15,000 by China Unicom, but significantly less than 100,000 by China Telecom.
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