Category: Network

China has designs to bring about 1,000 of its regional radio and television networks under the banner of a single, national cable television network company body in order to better integrate its telecommunications, Web and broadcasting systems, said reports.

According to Chinese news agency China Every day, the State Administration of Radio, Film and Television (SARFT) has said that the new body will be in operation “by the finish of the year” and will also help drive expansion in to new business opportunities in mobile TV and online videos.

When asked why the SARFT is embarking on this project, agency official Tao Shiming said: “The cable television network at present is managed locally, and is lacking in organization and scale.”

The editorial also noted that the 1,000 radio and television networks in China are run by different operators at varied administration levels. The absence of a unified network is delaying the country’s designs to compete with others for opportunities stemming from the convergence of technologies.

To overcome this fragmentation, there needs to be national consolidation, the document said. The completion date, however, may take up to four years, said Zeng Huiming, deputy secretary-general of the cable TV committee of the China Radio and Television Association.

The document also pointed out that the new consolidated company will have a start-up investment fund of around 80 billion yuan (US$11.8 billion) contributed by both the government and broadcast and television companies.
However, analysts are skeptical about the consolidation designs.
Telecom analyst Xiang Ligang, for one, told China Every day that they was not sure what returns can be had from the whole exercise.

“It’s hard to earn profits if the new company offers lower prices, but simultaneously, it is also hard to win more users if it charges high fees,” they said. The four local telcos–China Mobile, China Unicom and China Telecom–have invested over 2 trillion yuan (US$294.2 billion) on telecom networks and will still have an advantage in the market, Xiang said.

Another analyst, Adrian Tong from Hong Kong’s Media Partners Asia, told Bloomberg in a separate document that it won’t “be easy” for China to integrate all the smaller players and that the “consolidation will take years” because its industry is fragmented. This is unlike the situation in the U.S. where several bigger cable operators are dominant, they added.

China Every day also mentioned that the government last month launched a pilot project in 12 cities to check the convergence of the networks, with trials expecting to last until 2012. The project will focus on connecting the broadcasting and telecom networks, it added.

Riverbed Technology announced the release of Steelhead ™ Virtual, a virtual version of its Riverbed ® Steelhead ® wide area network (WAN) optimization appliance. With the launch of Virtual Steelhead, Riverbed is expanding the scope of their market leading WAN optimization solutions.

Virtual Steelhead allows customers to deploy WAN optimization solutions from Riverbed in a wide range of environments that may have specific requirements such as robust environment or space constrained environments and data centers that have been heavily virtualized. Companies and governments are now free to choose between physical Steelhead, Steelhead Steelhead Mobile and virtual software best suits their individual locations. In addition, service providers and systems integrators to offer managed services based on Riverbed’s WAN optimization now have the option to offer a virtualized solution.

Award-winning family of Riverbed Steelhead products provides organizations of all sizes for application acceleration and data regardless of location. Riverbed WAN optimization solutions speed application performance in some cases up to 100 times, making the feel more like WAN LAN. More than 8,300 customers across a wide range of markets, have implemented WAN optimization solutions from Riverbed to improve the productivity of remote and mobile employees, enable private clouds, and provide a network throughout the company and the visibility applications. As companies and governmental organizations have demanded more deployment options, Riverbed has developed innovative WAN optimization solutions to mobile factors, physical fitness and now virtual.

With the introduction of virtual Steelhead, built for VMware ™ Platform vSphere, organizations have the flexibility to provide anywhere access for employees of a comprehensive solution that meets the needs of customers in any environment.
“Our server infrastructure is 80% now virtualized.

The option of extending virtualization to WAN optimization solution based on best-of appliance Riverbed, Steelhead class will enable our continuing effort to reduce our IT hardware footprint . Virtual Steelhead are based on a proven WAN optimization solution. Virtualization is an innovative way to manage the consolidation, cost control measures, and even green initiatives, “said Searl Tate, director of engineering at Paul Hastings, a global law firm.

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Juniper Networks is working on a low-end router wide area network designed to compete with 2600 Cisco Systems’ router.
Last week, Stephen Kamman, an equity analyst at CIBC World Markets, published a research note on the new router, code-named Pepsi. Cisco, which dominates the market with more than 90 percent market share, is believed to be the “Coca-Cola” to “Juniper Pepsi.”

Details of the new router are scarce, but Kamman said he would not be surprised to see Juniper to add security features of NetScreen Technologies in the router that will connect to corporate networks operators’ networks. These features likely include a firewall and virtual private networks. Juniper announced last month it is buying Netscreen, a provider of well established security apparatus, in a deal valued at U.S. $ 3.4 billion.

Kamman was unsure of a release date for the router. Juniper declined to comment on the product.

Cisco currently dominates the wide area network (WAN) with its 2600 router market router. The market research firm Dell ‘Oro estimated the total market of U.S. $ 1,260,000,000 year.

WAN access routers sit in the customer’s network and provide access to Internet and other wide area services. Most of these devices are sold by companies, what they offer to their customers as part of their data networks and Internet services. Cisco recently announced that adds features to 2600 to show support better over Internet Protocol (VoIP).

Cisco’s strength in this market comes from its close ties with business resellers, Kamman said. Cisco is also known as a key provider of intellectual property products. Its high-end routers are used in almost every network carrier to transport traffic over the Internet.

Like Cisco, Juniper also sells high-end routers to carriers. In fact, the company has built its business over the past six years by the marketing as an alternative to Cisco. Now, with the addition of the NetScreen product line and sales force, Juniper has relationships with resellers of transport that the corporate side of the business.

Cisco 2600 is a technologically advanced device, Kamman said. He believes that Juniper has the engineering expertise to easily create a box to compete with the 2600. But so far, has lacked a sales channel and a focus on this market.

“For Juniper, the challenge has not been in the construction of a new low-end platform for WAN access,” Kamman said in an interview. “It was the distribution channel. Six months ago, I would say that this change would not have made sense for Juniper, but now with the acquisition of NetScreen makes sense.”