1February1999ChinaMarketResearchPhilipsBroadbandNetworksFinalReport2PBNChinaMarketResearchAgendaAgenda�Background&approachPage3~8�ThedevelopmentofCATVPage9~18�MarketlandscapePage19~35�DistributionsystemPage36~38�CompetitionPage39~50�ThegovernmentpolicyPage51~54�TechnologyandImpactPage55~57�StrategicissuesPage58~65Asoneoftheworldleaderofbroadbandaccessnetworks,PBNChinahasachievedUS$10millioninsales.Tofurtherincreaseitsbusiness,PBNChinaisplanninga“30milliondrive”totriplethesalesintheyear2005.Asaresult,thisprojectiscarriedouttohelpPBNChinatounderstandtheChinesemarketandmakerealisticbusinessplansandstrategies.3PBNChinaMarketResearchBackground&ApproachBackground&Approach4BackgroundandapproachProductFocusProductFocusBasedonthepresentationgivenbyPhilipsandfollow-upmeetingswithPBNChinamanager,thismarketresearchhasconcentratedonHFCnetworksonlyandtheircomponentsasfollows:8Cable:HybridFiberCoaxialNetworks8HFCTransmissionEquipment-transmitters-fibernodes-RFamplifiers8NetworkManagement-software-service5Background&ApproachCriticalIssuesCriticalIssuesOurresearchteamhascollectedbothqualitativeandquantitativeinformation/statisticsinordertoaddressthekeyissuesinthefollowingmajorareas:(2)��GeneralMarket�Distribution�Competition-assesstheoverallChina’sbroadbandmarketsizebypotentialdemand,geographyandsegment,suchashigh-andlow-endmarket,etc.-technicalnetwork-componentissuesregardingfiber/coax,etc.-China’seconomicdevelopmentplansanditsimplicationonoutputanddemandforbroadbandproducts--thedistributionchannelsforlocalcompaniestoselltheirbroadbandproductsinChina-thedistributionchannelsforeignfirms(overseas)selltheirbroadbandproductsintoChina--largeandsignificantlocalfirmscompetinginthisarena,theirlocationandkeycompetitivecharacteristics-foreign-fundedcompaniesbasedinChinacompetinginthisarena,theirlocationandkeycompetitivecharacteristics-overseas-basedforeignfirmscompetinginthearenabyexportingtheirproductsintoChina(2)ThisisprimarilyaresearchtohelpPBNChinacollectinformationandunderstandthemarket.Therewillbelittlebusinessstrategyanalysisasthiswillrequire“sector”specificconsultingprofessionalsatahighercost.ThecriticalissuesabovearebasedontheinformationfromPBN.6Background&ApproachGeographicCoverageGeographicCoverageNorthwesternNortheasternCentralEasternSouthwesternSoutheastern�ThisresearchprojectwasdesignedtoobtainandprovideinformationonChina’smarketforbroadbandproducts.�Toachievethecoverage,wefirstselectedandconductedfieldresearchinapproximately12cities/municipalitiesinthenortheastern,northwestern,central,southwestern,southeasternandeastern/coastalregions.�Thesecitieswerechosenbasedonasetofcriteriaduringthefirstphaseofthisprojectbeforethefieldresearch.7Background&ApproachTimescheduleofthemarketsurveyTimescheduleofthemarketsurveyDesktopresearchandcityselection1weekIntervieweetargetandmakeappointment:�Broadcasting&Filmbureaus�ProvincialCATVStations�CityCATVStation�Manufacturers�AgentsandDistributors�Institutions�Post&TelecomAdministrationBureaus2WeeksTeamtraining:�IndustryconferencesandTechnologyexhibitions�Technicaltraining/briefingbyPhilipstobetterunderstandHFCproductsandit’sfunction�TentativeinterviewsinShanghai1WeekFieldwork4WeeksAdditionaldataanalysisandresearchDataanalysisandpre-finalpresentation2WeeksFinalreportpreparationFinalreport4Week2Weeks8Background&Approach...