Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

The China Syndrome

One of the more telling moments in last month's analysts call with Cisco CEO John Chamber's about quarterly earnings came toward the end of the conversation. When discussing competitors to Cisco's networking dominance, Chambers didn't cite any of the networking giant's usual suspects. Instead, he focused laser-like on China.

To anyone who has been paying attention, this should have come as no surprise. China is fast becoming one of the world's largest networking markets, and China-based networking manufacturing companies are increasingly targeting overseas markets.

Consider this: A recent report found that China is one of the fastest-growing carrier Ethernet markets in the world, with the number of Chinese Ethernet service connections doubling in the first half of 2004 alone to 30 million subscribers.

That means, of course, that China is a potential goldmine for U.S. networking companies, which are wasting no time in capitalizing on the burgeoning Chinese market. Not a day goes by, practically, without an announcement about an American networking company signing a major deal in China.

Cisco, for example, was recently chosen by China Telecom to be the primary equipment provider for the business network portion of the China Telecom Internet Protocol (IP) Next-Generation Network (also known as ChinaNet Next Carrying Network or CN2). The financial terms of the deal were not announced, but in the past six months, China Telecom has awarded contracts valued at more than $100 million to Cisco.

  • 1