Vendors of telecommunications gear are finding new markets for advanced data-networking equipment in China as the mainland's largest carriers slow down the expansion of their fixed-line systems, analysts say.
Suppliers like Cisco Systems, Nortel Networks and Alcatel are expected to generate fresh opportunities in the mainland from the initiatives of China Telecom and China Netcom Corp (CNC) in wireless local area network (WLAN) and Internet broadband access.
Officials of telecom consultancy and research firm BDA China say that spending for fixed-line telecom infrastructure on the mainland has fallen and remains under pressure, mainly because of limited growth in operators' voice business.
'Expectations in the China market have been built up so much, even though a pick-up in capital expenditure has failed to materialise,' says BDA China managing director Duncan Clark.
Many foreign telecom-equipment vendors have touted China as their fastest-growing market even during the economic downturn and continuing market restructuring.
Other vendors of fixed-line telecom equipment in the mainland include Siemens, Lucent Technologies, Huawei, ZTE, and FiberHome Telecommunications Technologies.
BDA China co-managing director Ted Dean says improved prospects for the vendors depend on how competition escalates between the data operations of China Telecom and CNC over the next several years.