ChinaRailcomGroupCo. Ltd was originally known as Railway Telecommunication Information LLC, which was founded on December 26th 2000. The company had 31 provincial branches, and it was a nationally owned major basic telecommunication operator. On January 20th 2004, the company, after approval from the State Council, was transferred from the ministry of the railway to the national asset committee, and the company name was changed to “China Railcom Group Co. Ltd” (hereinafter referred to as “China Railcom”). In June 2004, China Railcom was named as a trial enterprise to have a board of directors by the national asset committee.
Ifwesaythat the appearance of China Railcom five years ago ended the monopoly of the fixed telephone industry, then we can say that after the years the team at China Railcom is becoming stronger as it continues to survive in a market characterized by fierce competition. In these five years, China Railcom has continued to adhere by the principle of “win the market by service, build brand by quality, and increase competitiveness by differentiation”. While ensuring the telecommunication quality of the railways, the company has also expanded into the public telecommunication market and has gained exceptional economical and social benefits as the result. The income from the company’s main operations increased from the 3.74 billion Yuan to 13.8 billion Yuan in 2005, representing an annual growth of more than 30%. The number of fixed telephone users increased from the 1.358 million to 16.4 million in 2005, and the number of internet broadband users increased from none in 2001 to 2 million in 2005. By the end of 2005, the company asset totaled 53.3 billion Yuan, nearly three times more than it was when the company was first founded.
It’sworthnotingthat China Railcom has building a national billing center, provincial billing centers and national customer service system, and it is the first telecommunication operator in the country to offer users a detailed statement regarding their class.
Asabasictelecommunication operator, China Railcom owns various telecommunication network resources that’s fast, covers a wide range, and has high capacities. China Railcom high speed backbone optical transmission network uses the advanced DWDM technology, which provides high capacity and large coverage, and makes unified management and coordination easier. The China Railcom telephone exchange network covers more than 300 area codes in China. Its intelligent network that covers the entire countries is able to provide the users with various voice service and value adding services. The broadband multi-service comprehensive data network based on ATM technology can also provide the users with efficient and secure data communication services. CTT Net is a high speed broadband IP network with concentrated condition and unified management, which can provide users with internet access, MPLS－VPN and other functions. In 2004, China Railcom, with the support from the ministry of information industry, began testing for 3G and digital clustering. With the building of railway GSM-R as well as the testing and commercial trial use of digital grouping, the company is entering the mobile telecommunication field.
ZhaoJibin,thechairman of China Railcom, once told the reporters that, “the biggest advantage of China Railcom is that the company truly has a “national network”, which could be used to provide the corporate clients, and in particular the national corporate clients, with high quality telecommunication services. The second advantage of the company is its giant client, Chinese railways. Even though other operators may have higher values and higher profits than China Railcom right now, they don’t have a client that could bring them 4 billion Yuan of value annually, and a client that may eventually lead to more products in the future.”
ZhaoJibinstressedthat China Railcom must first serve the railways, understand the need of railway communication, adapt to their need, and provide them with unique services such as network ticket sales, network logistics and railway community’s future IPTV construction. Zhao Jibin believes that it is important for China Railcom to have a clear understanding and a clear direction in the future. In August 2004, China Railcom proposed the development strategy of “specific network + regionalization”, which included the standardization of the management as part of the strategy. The future development of China Railcom should be based on an effort to “build the specific network and strengthening the regionalization effort”. Through further standardization management, the company will build income and profit model to solve the problems caused by disorganized agencies. Through the management standardization of the construction process, the company will achieve better profits for each investment made in the construction and will promote budget management to provide the financial foundation needed. The goal of the reform is to create and perfect the system in an effort to build the headquarters of China Railcom into a macro-condition center, to build each provincial branch into simulated legal people, and to build municipal branches into the main body of marketing and cost control.
Recently,ZhaoJibinhas stated that, “In 2007 China Railcom will mainly evaluate its various branches on their rate of return on capital, profit margin, labor productivity and utilization of equipments with the goal to ensure the value and increasing in value of national assets.”
ChinarailwayGSM-Ris a technical system for the new generation train mobile telecommunication chose by the ministry of railway; the coordination communication function provided for railway transportation and production is already put in use in Daqin railway, Qinghai- Tibet railway and Jiaoji railway. With the opening of the Qinghai- Tibet railway on July 1st 2006, China Railcom, using the advanced GSM-R digital wireless telecommunication digital, has provided this “heaven” road, all 1,142 miles of this first rate plateau railway, with professional communication services and guarantees, and it has set a new record in the history of China Railcom. Qinghai- Tibet railway is the first railway in Asia to achieve train control and coordination management system totally based on GSM-R. It is also the first railway in the world to achieve dual network coverage. Through this advanced information communication network, most of the stations along this railway achieved automatic control. In addition, GSM—R railway comprehensive digital mobile telecommunication system is also combined with GPS satellite navigation technology to form a “train operation control system based on wireless communication and train positioning technology”. This system realized the integration between communication and signal technologies as well as the wireless transmission of train control information, making the Qinghai- Tibet rail the first true “digitalized railway”.
ChinaRailcom’s“newbusiness force” is a comprehensive telecommunication solution promoted by the company based on its advanced basic telecommunication network resources, rich telecommunication operation experience, talented professional team; it is aimed to satisfy companies’ demand for information. IP VPN is a service under China Railcom’s new business force. By combining the advantages of MPLS VPN, IPSec VPN and SSL VPN, the service provides the idealistic virtual network solution, as it can transmit data, voices and images, as well as achieve real time monitoring, network functioning, and management. The service will provide the a remote access and connection based on the internet for the every branch of a commercial client, which will solve the internal communication problem and save the costs for long distance communication. It will also makes it convenient for the branches and the headquarters to hold video conferences, support mobile offices, and allow employees to log on to the internal corporate website at anytime from anywhere. The call center is also a service under China Railcom’s new business force. It combines the rich telecommunication network resource as well as the operational and management experiences for call center in an effort to provide individualized call center solutions for enterprise and governmental agencies; based on a company’s need for building a calling center, the service will provide a one stop service that will include access, system integration, and operation management consultation. The users can also be provided with call center outsourcing services that include system outsourcing, seat outsourcing, and service outsourcing. “Quanshitong” is a multi-media communication service provided by China Railcom’s new business force. It can provide the users with point to point or multi-point multi-media communication services, including video, audio, and data services. It will be used to provide governmental agencies, enterprises, social groups, families, and individuals with video conference, remote education, remote medical care, and video conversation services.
“Yixuntong”digitalgroupis a professional mobile telecommunication system presented by China Railcom. It is aimed at governmental agencies, public safety and enterprises, with the goal of providing resource sharing, cost sharing, safe and reliable multi-functioning, high efficiency, and professional mobile coordinated telecommunication service to group users. “Yixuntong” has many advantages that civil telecommunications lack, such as fast establishment of a call, ultra long-range feedback and dynamic organization.
Asweareprogressing, China telecommunication is faced with a new turning point in 2007. Some have stated that late comers such as China Railcom are presented with more opportunities than challenges because of the many uncertainties in the telecommunication market. Yet for China Railcom, there is still a long way to go to reach a new plateau.