More than 30 million people will have access to the Internet at home by the end of the year, according to the Ministry of Information Technology.
Recent statistics show that sales of networking equipment reached 5.7 billion yuan (US$690 million) in the first half of this year.
"China's networking equipment market will grow at an annual speed of 35 per cent in the next three years and the market will be massive," said Chen Jianying, a networking equipment marketing analyst.
Industry officials have much faith in the increasing market.
"With the break of foreign companies' monopoly of technologies and the increase of people's demand for Internet surfing, there will be many opportunities for domestic businesses," said Juliet Wu, president of TCL Networking Equipment Co Ltd, which has recently formed a strategic alliance with five counterparts from Taiwan.
According to their agreement, the Taiwanese companies will provide advanced technology in broadband networking products to TCL Networking.
The Shenzhen-based TCL Network also introduced US$5 million from a Hong Kong venture capitalist to develop new technologies and products.
"The demand for broadband network facilities by family users, communities, and online educational establishments will be high in the future and those will be our main target areas," said Bo Lianming, TCL Networking's general manager.
Jeff Wang, chief financial officer of the Taiwan-based Accton Technology Corp, predicted a rosy picture for his company.
"The market potential is huge and it will be a fatal mistake for those that ignore it," Wang said. The company, which supplies international giants like CISCO, will expand its production base in Shenzhen, Guangdong Province to meet demands from the mainland.
(China Daily 08/29/2001)
