Taiwan's Loop has launched the Loop-AM3440, an access DCS-MUX that features complete interfaces and power redundancy design for uninterrupted power supply.

Digital and video applications to spice up product line; prices of low-end, midrange products to be stable

Local traffic engineering construction activities for data transmission have spurred growth in the E1/T1 equipment manufacturing industries in mainland China and Taiwan. The buoyant market in mainland China has expanded the supplier base to 200 makers, which although mostly newcomers and focused on the domestic market, nonetheless boost overall R&D in the region. Makers in Taiwan consider this line mature and are, thus, directing their efforts toward large utility enterprises to stimulate growth.

Available E1/T1 equipment from mainland China and Taiwan comprises fiber-optic modems, network modules, multiplexers, fiber-optic cables and add-on cards. At present, the mainstream E1/T1 equipment in mainland China has two to 16 E1/T1 lines with basic network management capability. With the increasing market demand for wider bands of E1/T1 equipment, makers expect equipment supporting 16 E1/T1 lines to be the next trend. Another upcoming trend is the application of digital technology and video on E1/T1 equipment, and its integration with different networks such as PSTN and Ethernet.

The influx of new entrants offering lower prices, particularly in mainland China, has resulted in a market shakeout. Due to the intense competition within the industry, prices of E1/T1 equipment have sharply decreased over the last two years. In 2007, makers expect prices to be stable, especially for low-end and midrange models.

	Model G01R from mainland China's Gaoke has two to six E1 ports based on ITU-T G.703 protocol and one or two lines V.35 with synchronous data signal.

Most locally owned makers in mainland China offer E1 interface equipment, which is considered standard. Very few makers offer T1 interface equipment, which is the standard in western countries.

E1/T1 equipment from mainland China generally comprises E1/T1 fiber-optic modems and network modules. Most makers are more involved in the former.

E1/T1 fiber-optic modems from the mainland can be classified by the bandwidth, number of E1 lines, kinds of components used, and add-on functions. Low-end products have basic functions and two E1/T1 lines. These products use ordinary optic transfer modules.

Midrange products have E1/T1 to 16 E1 lines, as well as some add-on function, such as network management software. High-end products have more than 64 E1/T1 lines with various add-on functions. These products use high-quality components.

Mainstream E1/T1 equipment features two to 16 E1/T1 lines with basic network management. Makers expect 16-line E1/T1 equipment to be the main trend in the next few years.

	Model G2-PI U from Taiwan's ATC is an add-on card for ISDN digital hybrid telephone systems.

The mainstream products in Taiwan are fiber-optic cables and multiplexers with copper wires. Add-on cards that integrate PSTN, VoIP and ISDN are similarly popular among manufacturers.

Other product lines include channel service units/data service units (CSUs/DSUs), E1/T1 ISDN PRI, SDHs and routers. Most makers perceive that the industry is following a stable growth pattern, thus new product development is not a priority.

Tailyn Communication Co. Ltd's entry-level products include SDH equipment, and its high-end models are composed of multiplexers. The company's UMAP1100 is an integrated access channel bank that features ISDN (LUNT/LULT) and DSU DP. It has a drop and insert function for T1 and E1. It also has a built-in router to support multiple data services, dual T1 and T1 protection, and a performance monitor and craft interface.

Users can monitor the operation status through network management SNMP. The UMAP1100 supports alarm and status surveillance, and maintenance signal for OAM functionality. It supports a T1 interface with 8000/s sampling frequency and 1544Kbps bit rate, and an E1 interface with 8000/s sampling frequency and 2048Kbps bit rate.

Auto Telecom Co. (ATC) mainly sells E1 and T1 cards that support ISDN PRI, and T1 and E1 interfaces. It sells cards with systems similar to its GDS-600, an ISDN digital hybrid telephone system that features a microprocessor stored program.

Loop Telecommunication International Inc.'s AM3440 is an access DCS-MUX applied in telecom, power and utility industries. The model features complete interfaces and a power redundancy design to ensure uninterrupted power supply. It transports and switches several digital access interfaces with E1 or T1 lines, including mini Quad E1, Quad E1/T1, ATM/FR, 10/100BaseT router, FOM, MDSL, G.SHDSL, G.703, U type, X.21, V.35/V36, RS-232, E&M, FXS, FXO and Magneto. It also supports both RS-232 copper wire pairs to extend the DTE interface up to 120 time slots for the MDSL, U, RS-232, X.21, V.36 and V.35 interfaces. It has an optical plug-in module to support up to four E1 channels.

Stimulated by the booming market demand for E1/T1 equipment, the number of E1/T1 equipment makers increased rapidly in mainland China over the last three years. To date, the country has about 200 E1/T1 equipment makers. Most companies are newcomers, and are focused on the domestic market and small-scale production.

Makers of low-end E1/T1 equipment are small-scale suppliers that buy components and do the assembly in-house. Midrange equipment makers have their own R&D teams and release new models annually. They implement strict QC processes and conduct OEM for other brands.

Makers of high-end equipment have large production capacity, strong R&D capabilities and complete marketing systems.

Guangzhou Gaoke Communication Technology Co. Ltd is considered one of the high-end E1/T1 equipment makers in mainland China. Established in 1993, the company is also one of the leading communication network access solution providers in mainland China. It provides service operator access solutions, such as narrowband and broadband.

Gaoke has more than 100 R&D staff and about 30 R&D engineers who are engaged in E1 equipment development. To date, the company's total output of E1 equipment has reached more than 100,000 lines.

Guangzhou Tianwei Communication Co. Ltd has evolved from one of the major state-owned communication equipment companies in the 1990s in mainland China. The company has been involved in E1/T1 equipment production for eight years. It has 60 employees, with more than 10 staff involved in R&D work. Tianwei's monthly production capacity is about 15,000 E1 lines.

Hangzhou Atel Network Science and Technology Co. Ltd is engaged in the development of data communication products. It began developing E1/T1 equipment in 2000, and currently has 120 employees, 30 of them involved in R&D. Atel's monthly production capacity for E1 equipment is about 30,000 E1 lines.

Taiwan has about 50 makers of T1 and E1 related equipment. The supplier base is expected to be stable in 2007. Leading E1/T1 makers in the region include Opnet Technologies Co., Tailyn, Loop, Comtrend Corp. and Taicom.

Taiwan makers have their own design and production facilities. They work with distributors, who in turn cooperate with larger network providers.

Exports of E1/T1 equipment from mainland China and Taiwan account for at least 10 percent of the total sales revenue of the interviewed makers in this report. The main markets are telecom carriers and utility companies in Asia, Africa, Europe and North America. Other E1/T1 equipment makers also cater to utility providers of power, petroleum, gas and water.

Mainland China's Gaoke began exporting its E1/T1 equipment in 2005. Its E1/T1 equipment now accounts for 10 percent of the company's total sales revenue. Its main overseas markets include Southeast Asia and Africa.

Taiwan's Tailyn started producing E1 and T1 equipment in 2002. It currently has a monthly output of about 2,000 units of T1 and E1 equipment. The company's major market is the United States, which accounts for 50 percent of its total sales revenue.

ATC sells E1/T1 equipment under the in-house brand of Hybrex. The company distributes its T1 and E1 add-on cards to Australia, New Zealand, Europe, the United States and Southeast Asia.

Established in 1991, Loop is considered one of the leading Taiwan manufacturers of T1 and E1 equipment, access multiplexers, optical SDH and IP products. Ninety percent of the company's sales revenue is generated from exports. Its major export markets are Asia, Europe and the United States.