China Telecom may cut 50% on fixed network investment

Updated:2013/11/27 17:00

Wei Leping, director of China Telecom Science and Technology Committee gave a speech to discuss how to develop FTTH on 2013 China Optical Communications Development and Competitiveness Forum. He said, "China’s FTTH is developing rapidly but it lacks strategic planning.” By the end of 2012, China Telecom's FTTH subscribers reached 20 million, and it surpassed Japan to become the world's largest FTTH operators. He also pointed out, “FTTH should be a long-term work than some short-term mission.

Contrast Verizon

In June this year, Wei Leping flied to the United States to do a research. Taking FTTH as an example, his analysis on FTTH development showed that Verizon’s planning towards FTTH is much clearer than Chinese carriers.

So far Verizon’s FTTH coverage up to 24.3 million and its FTTH mounting user reached 9 million. Lasting for 7-8 years, Verizon’s FTTH development went not fast. "Verizon already shifted its focus to fiber install base and the cost.” In addition, now FTTH service is not available  in the whole U.S except several states.

50% down on broadband investment

Except lacking plans, the development of broadband faced another problem——the coming storm of LTE. China Telecom may cut 50% on broadband investment but the final version is still under discussion, according to the report.

Wei Leping also talked to staff in China Telecom,“We have to use the broadband money since there are huge pressures in capital market.”However, he added, “China Mobile is going to increase the investment on broadband, which may make up the loss.”

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