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China Telecom and Huawei Announce Business Joint Innovation Center

Feb 28, 2018

[Barcelona, Spain, February 28, 2018] China Telecom and Huawei have established a Business Joint Innovation Center (BJIC) to jointly develop differential, innovative products and solutions that will offer users information and communication services.

The BJIC model has transformed the traditional industry partnership. Both companies invest in joint development, verification, and go-to-market of products and solutions to accelerate provisioning of new products and achieve shared success. This a breakthrough in the history of telecom industry cooperation.

China Telecom - Huawei Business Joint Innovation Center Signing Ceremony

Yang Jie, Chairman of China Telecom, said at the launch event: "China Telecom is committed to becoming a leading integrated intelligent information service operator. We will work with partners from all industries to build Rubik's cube-style industry ecosystems, in which we can share and create value together for shared success. The BJIC is a useful and important example of win-win cooperation based on the Rubik's cube-style industry ecosystem. The goals of the center include business model innovation, quick subscriber base growth and quick service monetization."

Eric Xu, Huawei's rotating CEO, stated: "China Telecom and Huawei have transformed their traditional cooperation model into an innovative, constructive, comprehensive and future-oriented one. eCloud, which is now in a mature stage of development, is a good example of our collaboration. We have shifted from the old equipment-selling partnership to a new cooperation model centered around joint business innovation. This is why we launched our BJIC today."

Gao Tongqing, Executive Vice President of China Telecom, gave a general introduction to the BJIC and China Telecom's Transformation 3.0 strategy at the Barcelona launch event. He explained the direction of the cooperation centered around Rubik's cube-style industry ecosystems. “By aligning strategies, combining strengths and complementing advantages, China Telecom and Huawei will execute their strategies, build a new type of partnership, and achieve shared success based on the BJIC,” said Gao. “The initial stages of the joint innovation will focus on the four domains of Smart Home, cloud-and-network integration, IoT, and 5G. The cooperation between the two companies will expand to include more domains as industry needs and technologies evolve.”

At the launch event, China Telecom and Huawei showcased three innovative outcomes of recent cooperation, including Video 3.0, eCloud, and all-optical networks. For IPTV services, Video 3.0 ensures the best experience including fast channel change, VOD smooth play, a nine-screen guide, a four-screen view, voice search, and personal TV recommendations. Audiences on site experienced real-scenario services based in China via global networks.

eCloud is a public cloud service co-operated by China Telecom and Huawei. Today, it is growing at a compound monthly growth rate exceeding 30% and serves tens of thousands of governments and medium- and large-sized companies. China Telecom presents eCloud as a unified platform and portal for its B2B services and aims to use eCloud to build innovative solutions for key industries including manufacturing, transportation, and logistics in 2018.

In all-optical networks, China Telecom and Huawei deployed the world's first commercial all-optical backbone network in the vibrant economic regions of the middle and lower Yangtze River. Through a combination of technologies including ROADM, 100G ultra-long haul transmission, ASON and all-optical switching, China Telecom can roll out 100G connection services across provinces in minutes and significantly reduce network construction and operation costs. As part of the joint business innovation between the two companies, these three innovative outcomes lay a solid foundation for establishment of the BJIC.

China Telecom is a major force behind the construction of a digital and intelligent society in China, as well as the transformation of China into an advanced nation with a robust network infrastructure. As a pioneer in supply-side reforms for cloud computing, Big Data, and AI, as well as a network infrastructure enabler, China Telecom is working tirelessly to help build a powerful China with advanced networks and world-leading enterprises. In this endeavor, the operator will enhance the construction of information infrastructure, strengthen four key aspects of integration, and improve social productivity by promoting intelligent networks, ecosystem-based services, and smart operations. China Telecom is committed to becoming a leading provider of integrated intelligent information services.

Staying customer-centric, Huawei proactively explores the transformation directions and information service needs of the future intelligent society, and continuously innovates cloud computing, 5G, AI, AR/VR, and IoT. Huawei's All Cloud strategy aims to help operators go digital by providing solutions for network cloudification, service cloudification and operations cloudification.