Home / Blogs

Cable in China

Stephane Bourque

I'm writing this piece on the plane on my way back to Vancouver after a 12-day trip in China. I've written about China before, and every time I go, I understand and appreciate this complex country and culture a little more. If you think China is "up and coming," well, you might want to go and take a look for yourself. To be honest, I think they are already here.

What have I learned about the Chinese broadband industry? To start with, cable is the ugly duckling in China. There are roughly 200 million cable users in China, of which less than 15% have high-speed internet. That's not too shabby, but it's a lot lower than the 500 million plus users on wireless and wired networks. On top of that, the government also mandates that operators provide a number of services at no cost, and smaller providers are up against two cash-rich broadband giants that are subsidized by the government.

As a result of these factors, many cable operators feel that they must give away some of their services in order to attract, or simply keep, their user base. This is a battle that they are unlikely to win, and it explains why the price per port is so crucial to operators. It also helps explain why technologies like EPON Protocol over Coax (EPoC) and Ethernet over Coax (EoC) are widely deployed in China — CMTS ports are just too expensive. The Chinese cable industry has clearly had to be very creative to remain viable and grow, and operators are now driving a new platform called centralized DOCSIS, or C-DOCSIS. This reduces the port cost dramatically, allowing them to compete more effectively with wireline and wireless carriers.

What does all this mean for software makers? Well, we need to first understand the issues and adapt as much as possible. This adaptation includes everything, from the features we offer, to support mechanisms, to, of course, pricing models. So, our homework is to now find a way to make the software affordable and feature-rich for people on the other side of the world. It's not an easy task, but I think it's worthwhile in the end. We're teaching them how to build a business with some North American flavor, while they're teaching us how we can be more competitive. We've made a lot of progress in China already based on how fast cable operators are growing. Even for ugly ducklings, it's impressive — in some cases, up to 100% per year. Not bad for a so-called "up-and-coming" country!

By Stephane Bourque, Founder, CEO and President at Incognito Software Systems. Incognito Software Systems is a global provider of broadband device provisioning, IP address management, bandwidth monitoring, and service activation solutions.

Related topics: Access Providers, Broadband, Networks


Don't miss a thing – get the Weekly Wrap delivered to your inbox.


To post comments, please login or create an account.

Related Blogs

Related News

Explore Topics

Dig Deeper

IP Addressing

Sponsored by Avenue4 LLC

DNS Security

Sponsored by Afilias


Sponsored by Verisign

Mobile Internet

Sponsored by Afilias Mobile & Web Services

Promoted Posts

Buying or Selling IPv4 Addresses?

ACCELR/8 is a transformative IPv4 market solution developed by industry veterans Marc Lindsey and Janine Goodman that enables organizations buying or selling blocks as small as /20s to keep pace with the evolving demands of the market by applying processes that have delivered value for many of the largest market participants. more»

Industry Updates – Sponsored Posts

Attacks Decrease by 23 Precent in 1st Quarter While Peak Attack Sizes Increase: DDoS Trends Report

2016 U.S. Election: An Internet Forecast

Verisign Releases Q2 2016 DDoS Trends Report - Layer 7 DDoS Attacks a Growing Trend

Verisign Q1 2016 DDoS Trends: Attack Activity Increases 111 Percent Year Over Year

Mobile Web Intelligence Report: Bots and Crawlers May Represent up to 50% of Web Traffic

Data Volumes and Network Stress to Be Top IoT Concerns

Verisign Mitigates More Attack Activity in Q3 2015 Than Any Other Quarter During Last Two Years

Dyn Evolves Internet Performance Space with Launch of Internet Intelligence

Verisign's Q2'15 DDoS Trends: DDoS for Bitcoin Increasingly Targets Financial Industry

Protect Your Network From BYOD Malware Threats With The Verisign DNS Firewall

Verisign iDefense 2015 Cyber-Threats and Trends

3 Questions to Ask Your DNS Host About DDoS

Afilias Partners With Internet Society to Sponsor Deploy360 ION Conference Series Through 2016

Neustar to Build Multiple Tbps DDoS Mitigation Platform

3 Questions to Ask Your DNS Host about Lowering DDoS Risks

Tips to Address New FFIEC DDoS Requirements

Is Your Organization Prepared for a Cyberattack?

24 Million Home Routers Expose ISPs to Massive DNS-Based DDoS Attacks

Ofcom Benchmarking UK Broadband Performance Welcomed, But Needs Considerable Improvement

Why Managed DNS Means Secure DNS