Guest Introduction
Mr Jiang Qi, General Manager of Aeroflex
China.
Born in August 1968 in Jiangsu Province. Graduated from
Jiangsu Danyang High School in July 1986.
Studied Electric Technology major in Shanghai Industrial
University from September 1986 to July 1990.
Worked in Shanghai No.26 Radio Factory from July 1990 to
December 1995. His title was developed from R&D Engineer
to Chief Design Engineer.
Work in China HP Shanghai Division and then worked in Agilent
Technologies (Split from HP, 1999-2005) from January 1996
to June 2005. His title was developed from Senior Sales
Engineer to East China District Sales Manager.
Worked in Aeroflex Company and the title was China General
Manager, Chief Representative of Beijing Office and Shanghai
Office from September 2005 till now.
Content of Visit:
Emcee: Wang Jing, Secretary General of
TD Technology Forum
Guest: Mr. Jiang Qi, China General Manager
of Aeroflex Company
¡°New Star¡± of Test and Measurement
Field
Wang Jing: Mr. Jiang, Welcome you to this visit. I am very
glad as today¡¯s interview is the latest segment of TD-SCDMA
Seniors Visit Series held by TD Forum and Sina Tech. As
this interview has been held for 14 phases, its response
is very active and popular. People can get relevant company¡¯s
information in TD field. Now let¡¯s talk with Mr. Jiang to
get more information about Aeroflex Company.
Jiang Qi: Thanks TD Forum and Sina Tech for giving this
opportunity to Aeroflex. Aeroflex entered into test instrument
field by merging other companies. Its general operation
in China started in 2005. In fact, Aeroflex has entered
into TD-SCDMA test field at that time. Thanks General Secretary
Wang Jing introducing Aeroflex to TD Forum, which can help
us get more reputation in TD-SCDMA field.
Wang Jing: Test instrument companies experienced such a
development phase in TD-SCDMA field: In 2006, the whole
industry has an extreme demand to TD-SCDMA test instrument.
Test instrument is the weak link in TD-SCDMA industry.
Jiang Qi: Yes. It is weak relatively. Aeroflex entered into
this field in an indirect approach.
Wang Jing: The higher the commercial use in TD-SCDMA field,
the more test work shall be done. In my opinion, the so-called
¡°The difference of TD-SCDMA mature level to other technologies¡±
mainly due to the imperfect and non-complete test approaches.
The work which shall be done in R&D and trial stage
is not completed totally. So the residual problems appeared
in the test commercial operation and commercial operation
stage. We are very glad to welcome Aeroflex, which is an
experienced international company, to participate into test
phase of TD-SCDMA test. It has protection and assistance
function to the smooth success in commercial operation.
In the beginning, I hope Mr. Jiang can give us a brief introduction
to Aeroflex.
China users have not very high acknowledge to Aeroflex in
test instrument industry. In fact, Aeroflex was established
in 1937 with its HQ in New York. Aeroflex employed 2600
staff in the world and its annual sales income was about
700 million dollars. Aeroflex worked very well in component
field in the beginning. For example, in American air and
spacecraft industry, there are many chips used in satellites
are the product of Aeroflex. However, most of these products
can not be sold in China. After the success in component
field, Aeroflex merged other company and then entered into
test instrument field. The first company Aeroflex merged
is Comstron, whose main business in frequency hopping signal
source. We merged some other famous companies gradually,
for example, we merged Marconi Instrument Company, which
has over 70 years RF experience and manufactured powerful
test instrument product in radio field. Aeroflex acquisitions
were mainly held in 2002 to 2005. By these acquisitions
and mergence operation, Aeroflex build very extensive product
line in test instrument field, which covered air and spacecraft,
national defense and military industry, communication manufacturing
test, communication R&D (aviation electronics also included).
In 2005, HQ decided to integrate the merged companies. I
participated into Aeroflex in 2005.
Wang Jing: How about the Aeroflex¡¯s position in a ranking
of international famous test instrument and instrument manufacturers?
The first one is Agilent, the second one is Rohde &Schwarz.
And how about Anristu? Is it ahead of us?
Jiang Qi: The annual sales amount of Aeroflex is the 8th
in all test instrument companies. The companies which are
ahead of us include Agilent, Rohde &Schwarz (R&S),
Danaher (Tektronix and Fluke included)¡¢Teradyne etc. Aeroflex
takes the 3rd position in the wireless test instrument companies.
Wang Jing: The companies in the 1st and 2nd position, Anristu
and Tektronix are the members of TD forum.
Jiang Qi: They entered TD-SCDMA field in an earlier time.
We went into TD-SCDMA field in 2005. In fact, Racal Instruments
(Note: a famous wireless communication test instrument manufacturer
purchased by Aeroflex) signed TD-SCDMA test cooperation
agreement with Datang in 2001. TD-SCDMA technology development
speed will be impacted if the test work can not be completed
in time. Just as GCF gave great support to GSM consistency
test and CCF made support to CDMA, these organizations had
a great push to the technology development. However, TD-SCDMA
does not have such a source of test support. Chinese relevant
organizations has recognized this situation and made a remedy
action. As our partner, Beijing StarPoint Telecommunication
Software Co., Ltd has developed test system.
Wang Jing: We do not have a regulatory document now.
Jiang Qi: Yes. However, Beijing StarPoint and Aeroflex have
made out RRM system for TD-SCDMA together. The current MTNET
Laboratory has started test work with this system. The Research
Institution of China Mobile will purchase this system immediately.
Wang Jing: Aeroflex has a close cooperation with Beijing
StarPoint. How about the task division?
Jiang Qi: As a company based on the universities, Beijing
StarPoint is very strong in software field. It applied Aeroflex
PXI RF module when we cooperated to make TD-SCDMA mobile
phone comprehensive test instrument in 2005. The Marconi
Instrument Company, which was merged by Aeroflex, developed
new RF test platform consisting of PXI module in its London
factory. When we introduce this platform to Beijing StarPoint,
they found that the combination of this hardware platform
and its software function will develop wireless comprehensive
test instrument for TD-SCDMA mobile phone in short time.
PXI has many good hardware indicators and flexible module
configuration. It also has open bus line. While other mobile
phone comprehensive test instruments from other test instrument
companies all are traditional test cassette. These devices¡¯
hardware capability and chip processing ability is fixed.
However, the comprehensive test instrument made by PXI module
does not have these limitations. PXI is an open standard.
The different manufacturer can make case, controller and
module based on standard. Aeroflex produces PXI RF module
mainly. The comprehensive test instrument made with PXI
module has better performance in RF indicators and faster
speed than before. As Beijing StarPoint recognized these
advantages of PXI, it began to cooperate with us. Aeroflex
provided hardware to Beijing StarPoint. Beijing StarPoint
developed base band pad and TD-SCDMA test software basing
on PXI module to make mobile phone comprehensive test instrument
SP6010. The SP6010 product was developed in the beginning
of 2006 and sold in large amount in the year of 2007 and
2008.
Wang Jing: It means that placing Beijing StarPoint software
on the hardware platform of Aeroflex to build a mobile phone
terminal test instrument. What are your customers now?
Jiang Qi: It should be the final user of Beijing StarPoint.
Currently, all the TD-SCDMA mobile phone vendors are their
user. However, the module of Aeroflex is an internal device
which can not be discovered from outside. Therefore, Aeroflex
is some strange to many people.
Wang Jing: As a result, the reputation of Aeroflex is not
very high. But many people know Beijing StarPoint.
Jiang Qi: The comprehensive test instrument SP6010 made
by Beijing StarPoint is a very excellent product. It has
many advantages, such as fast test speed and powerful hardware
indicators. It is advanced in the protocol and updated with
the latest TD-SCDMA version. SP6010 not only has largest
market share in TD-SCDMA R&D market, but also has extensive
applications in TD ¨CSCDMA mobile phone production line.
Wang Jing: How about other test instrument manufacturers?
Do they have competitive relationship with Aeroflex?
Jiang Qi: The competition between Beijing StarPoint and
other test instrument manufacturers is mainly in the TD-SCDMA
mobile phone test field. They compete with us directly in
the standards other than TD-SCDMA. Currently, the world
largest mobile phone manufacturer began to use our PXI instrument
to replace other traditional test instrument in a large
amount. Our PXI module configuration is very flexible and
it can be used to make test to all mobile phone standards
with appropriate software. It has a protection for user
investment. We¡¯ve considered the future band width demand
in current hardware. For example, if it is necessary to
add WiMAX or LTE test function, we can just add an software
on current PXI module. In addition, PXI module speed is
much faster than some traditional devices. Its test speed
can be up to 5 times of traditional ones, which can reduce
the test time and cost. Our users have made a general estimation
for PXI application: the PXI test cost per mobile phone
is 40% lower than the test with traditional devices.
Wang Jing: The cost reduction is very considerable.
Jiang Qi: Currently the market has accepted our test concept
and test platform. There are more and more companies begin
to use this device.
Take the First Chance in
TD-SCDMA R&D Work and Have a Good Anticipation to Future
Development
Wang Jing: Can you provide us some data? How about your
terminal test instrument market share in global GSM market?
Jiang Qi: GSM market has become saturated now. There are
3 brands in this market. We entered into new market in the
second half year of 2007 and the year of 2008. We paid more
attention to WCDMA. The biggest market of Aeroflex is WCDMA+GSM
market and CDMA 2000 market. I think our share of new business
growth in global market is over 20%. The old business market
share data is not available now. With the cooperation between
Aeroflex and Beijing StarPoint, our market share in TD-SCDMA
market will be over 50%.
Wang Jing: There are more than 50% TD-SCDMA terminal test
instruments are the product of cooperation between Aeroflex
and Beijing StarPoint.
Jiang Qi: You are right.
Wang Jing: This figure is very good explanation. Currently,
TD-SCDMA is in network construction period now. In fact,
WCDMA and CDMA network are also in network construction
stage. The user scale is still in the development process.
It will take about 2 years time to build a new network user
group. We should build good network and wide coverage first,
and then develop user group. It is the best opportunity
for Aeroflex as the scale user group is in fastest developing
stage and all the mobile phone will be tested by your terminal
test instrument.
Jiang Qi: For the TD-SCDMA industry, we take the first chance
in the R&D market. Beijing StarPoint SP6010 product
almost is applied in all TD-SCDMA R&D mobile phone manufacturers.
It hopes that there will be great demand in future as the
TD-SCDMA technology becomes mature and the network deployment
is completed. The user demand to TD-SCDMA mobile phone will
be enhanced in a great extent. All the TD-SCDMA manufacturers
will need the many test devices to make TD-SCDMA test. It
is the biggest opportunity for us.
Wang Jing: Are your customer mobile phone manufacturer in
fact?
Jiang Qi: Yes, mobile phone manufacturer.
Wang Jing: Not the operator, such as China Mobile?
Jiang Qi: The operator is not our customer.
Wang Jing: There are many mobile phone manufacturers in
TD forum. The domestic mobile phone manufacturer strategy
was adjusted to 3G. The market space of 3G is very wide
and attractive.
Jiang Qi: We hope the day will come soon.
Wang Jing: I hope Mr Jiang can make an evaluation for TD-SCDMA
general development, TD current situation and future.
Jiang Qi: We have this following evaluation. The government
will promote TD-SCDMA technology development with all heart
and soul. China Mobile also has made large input in this
technology. With the support from China Mobile, the world
largest mobile communication operator, TD-SCDMA technology
will become much more perfect in future and the TD-SCDMA
market will become mature. The technology mature level is
the key preconditions. Only the mature technologies can
be applied by many users. The growth of user amount will
bring sharp increasing in TD-SCDMA mobile phone demand.
We estimated that the market demand to our test instrument
will increase rapidly in the 2nd half year of 2009. Meanwhile,
China Mobile is developing the TD-SCDMA next generation
TD-LTE technology. It requires all the device vendors enhance
R&D work level in network terminal. The terminal market
of LTE is not very clear now. Maybe it will have some test
demand in the 2nd half year of 2010. The LTE terminals what
I say are not only the mobile phone, also the data card.
The R&D input will enhance at that time. Therefore,
we anticipate that LTE terminal test market will start in
the 2nd half year of 2010.
Wang Jing: It is about the R&D.
Jiang Qi: The real commercial operation will be in the year
2011.
Wang Jing: There are many different evaluations in current
industry field. At first, TD-SCMDA time windows will take
a long time. China Mobile has input much money in TD-SCDMA
network and the government also has given great support.
It seems that network test development is much faster than
terminal test. It is reasonable that the terminal test will
be 1-2 years later than network test. In your side, the
current focus is existing TD-SCDMA commercial chance. TD-SCDMA
scale user is unsatisfactory now. It is only a little higher
than 1 million. It hopes that the annual growth shall be
in 10 millions. In this way the TD-SCDMA market can become
full of vigor and build a virtuous circle. It will take
about 3-4 years time. I hope that the user amount growth
in 2010 will be 10 million. If the user amount can not reach
10 million, then we can say the China TD-SCDMA market is
not real built. TD-SCDMA mode is coexisting of 2G and 3G.
The 2G can not be removed as the 3G¡¯s coming. 3G also can
not be removed by LTE. The current real business future
is a very important thing to Aeroflex. You also have WCDMA.
You have much wise knowledge to China TD-SCDMA market. TD-SCDMA
will not become peripherization in end as some other¡¯s estimation.
With China Mobile¡¯s powerful implementation capability,
this situation will not happen.
Jiang Qi: I will make some supplement for Aeroflex promise
to TS-ACDMA and TD-LTE in China market. We have cooperated
with Beijing StarPoint Company to make TD-SCDMA mobile phone
terminal test instrument. We will give them support in all
senses. We also have cooperation in TD-SCDMA protocol constituency
test field and introduces new product. In the TD-LTE field,
the terminal emulation test system TM500 has been applied
by all TD-LTE device manufacturers in R&D and production
of network device. Aeroflex is developing TD-LTE test options
in 7100 series LTE terminal wireless comprehensive test
instrument.
Wang Jing: Aeroflex¡¯s reputation is out of step with its
contribution for TD-SCDMA. It shall make some disclosures
in some extent. There are many manufacturers participating
into TD forum. There are many works to be done by you. There
are many potential customers in this forum. We hope to disclose
your work by the platform of the forum to more people. It
is good for both TD-SCDMA industry and Aeroflex.
Jiang Qi: I am much appreciated that TD forum can provide
such a good promotional opportunity.
Hold Today and Look for Future
Wang Jing: In the LTE field, almost all the test instrument
manufacturers take TD-SCDMA as their first trial. Almost
all the international test instrument manufacturers pay
high expectation in LTE. LTE is the first world-integration
technology in the history of communication. The 1st generation
technology is ¡°All flowers blooming together¡±. There were
2 or 3 standards both in the 2nd and 3rd generation technology.
The LTE, which is prelude of 4th generation, begin to inosculate.
It is a very important chance point for real integration.
It also means a much bigger market opportunity. How about
Aeroflex development situation in LTE field?
Jiang Qi: We started from LTE-FDD in LTE field. As the FDD
development speed is much faster and the market is dominated
by NTT DoCoMo. The test stage has been considered by them
in an earlier time. NTT DoCoMo cooperated with Aeroflex
in the beginning of LTE-FDD test. They proposed test requirement
and developed LTE-FDD terminal test instrument in our TM500
terminal emulation instrument. Currently, it is the only
one LTE-FDD terminal emulation test instrument all over
the world. It faces no competition.
Wang Jing: When did you begin this work?
Jiang Qi:
We did this work in the year of 2007. The real bulk distribution
was the 2nd half year of 2007 and 2008. TM500 was distributed
in large amount in Japan. As NTT DoCoMo purchased it, NEC,
Fujitsu and many other device manufacturers began to purchase
it too. In the 2nd half of 2008, we found that TD-LTE is
a development direction for China TD-SCDMA market. The China
TD-SCDMA technology will develop to TD-LTE certainly. We
sent the information to the market department of London
factory and hoped to get their focus. At that time, China
Mobile, Vodafone and Verizon began to input in TD-LTE study.
As China Mobile is the world biggest mobile communication
operator, Aeroflex decided to start TD-LTE test option study
in TM500 immediately in September 2008. TM500 is a famous
product type in the industry. It was a main network emulation
test instrument all over the world in WCDMA time. And then
we cooperated with NTT DoCoMo to develop LTE-FDD on TM500.
We began our development on TM500 in September 2008 and
realized final product delivery in October.
Wang Jing: It also benefit from the small difference between
LTE-FDD and LTE-TDD.
Jiang Qi: Yes. So we can develop new module in a much faster
speed. FDD is a mature product. It has been delivered in
larger amount. It is very easy and fast to develop TD-LTE
on it.
Wang Jing: Some emulation functions shall be added, it is
very rapid.
Jiang Qi: Yes. The first delivery of that product is to
Ericsson in the world and to ZTE Communication in China
in December. Currently, ASB and Nokia-Siemens are the biggest
users in China market.
Wang Jing: The LTE network terminal R&D will need many
these UE emulation test instruments?
Jiang Qi: Yes. The application amount is very large.
Wang Jing: How did ZTE and Huawei make the emulation in
UE filed?
Jiang Qi: Both ZTE and Huawei have their own UE emulation
test instrument. However, they need to use UE emulation
test instrument from a 3rd party to make test. ZTE and Huawei
were our customers in the WCDMA base station and HSPA time.
In addition, Nokia, ASB, Ericsson, Datang and Motorola all
are our users for TD-LTE terminal emulation test devices.
For LTE, we paid more attention to FDD in the very beginning.
But we got fruit from the ¡°tree of TD-LTE¡± in fact.
Wang Jing: China Mobile moved very quickly.
Jiang Qi: Yes, very quickly. The 2008 financial crisis has
a significant impact to Aeroflex in electric manufacture
industry field in China. It really was a surprise to me
that TD-LTE communication R&D market grew in an explosive
way.
Wang Jing: So your company performance is very good (Laugh).
Jiang Qi: The performance of Aeroflex in 2009 fiscal year
is a little higher than 2008 fiscal year. The influence
of economical crisis to manufacturing made our performance
in this field reduce more than 50%. However, our general
performance rose up against the market. In my opinion, TD-LTE
had very great push to China Market.
Wang Jing: How about your performance in communication test
instruments and meters in China?
Jiang Qi: Our performance grew year by year. Our fiscal
year is July 1st to 30th June in the next year. I came to
Aeroflex in September 2005 (2006 fiscal year). Aeroflex
performance growth in 2006 fiscal year was over 50% to 2005
year. The growth in 2007 fiscal year was 30% and in 2008
was 60%. The growth proportions all were very significant
growth. However, the 2009 fiscal year performance growth
is only less than 10% to 2008 fiscal year. It is influenced
by financial crisis in a large extent. There is a great
shrink in global electric manufacturing market.
Wang Jing: What is the proportion of communication instrument
and meter in Aeroflex global business?
Jiang Qi: It takes a large proportion of 60% around. However,
there are many Aeroflex products can not be sold in China.
As a result, our company sale amount proportion is different
with other international companies. 40% of Aeroflex products
can not be sold in China.
Wang Jing: You lay your hope in communication field in China
market.
Jiang Qi: Yes. Because there are many limitations to Aeroflex
in national defense and military industry, we only can sell
general products. However, we make the most advanced technology
and product in communication field. It is very more energetic
in China mobile communication market. China is very attractive
to Aeroflex. China market is one of the markets that can
adopt new technology most quickly.
Wang Jing: The ancient oriental China is more vigorous to
pursue new technology.
Jiang Qi: Yes.
Wang Jing: The main products of TD-LTE are UE terminal emulation
instrument and terminal test instrument. When do you start
your traditional strengths?
Jiang Qi: In fact, our product has been developed yet. The
product type is 7100 and used for LTE-FDD. However, we anticipate
that the terminal market will start in next year, so we
just make out this product and communicate with some certification
organizations and chip manufacturers who are the main early
users to these products. The company which manufactures
terminal and data card will make budget in the next year.
Wang Jing: Have you report the growth anticipation of TD-LTE
terminal to HQ?
Jiang Qi: We will report this information in future some
day.
Wang Jing: It is a little earlier to report it now.
Jiang Qi: Yes, a little earlier. However, there are some
users now, such as certification organizations and chip
manufacturers. Their demand amount is limited. However,
if we do not dominate this market in the beginning, we will
get behind of competitors.
Wang Jing: Especially there are changes in WiMax situation.
It has a considerable impact to global LTE especially the
LTE-FDD development. So ¡°how quick LTE is¡± also is a subject
of debate. When I talk with the people of forum member organizations,
I still suggest them to hold today. The preparation for
future is also necessary. But the control on money and source
input is very important. The reasonable investment based
on the reasonable anticipation to market development. As
what you say above, the large amount demand to terminal
test instrument will appear till 2011 around. Some test
organizations or department and R&D departments will
do this work. But it has a long considerable distance to
large amount terminal production.
Jiang Qi: Aeroflex has all the platforms now. The work just
is make software on it.
Wang Jing: I always play a trick with our forum members.
There are little companies that can earn money in TD-SCDMA
industry chain. However, the test instrument and meter manufacturer
will be the first gainer. The manufacturer¡¯s vision to future
is very important for their development. Test instrument
and meter manufacturer has faced a very good opportunity
as other manufacturer is investing in R&D. So it is
very important for Aeroflex to build correct vision for
future.
I am very glad to invite Mr. Jiang from Aeroflex to make
some introduction to Aeroflex company itself, its achievement
in TD-SCDMA field and its development strategy in TD-LTE
field. It is very important for the reader or audience who
is very concerned to China communication industry development.
We hope that Aeroflex can make the most of its advantage
as a international company and give real assistance to China
TD-SCDMA industry Chain development and lay a good base
for its future development to TD-LTE. Thank you very much,
Mr. Jiang.
Jiang Qi: Thanks Secretary-general Wang Jing. As what you
say above, Aeroflex is not very famous in TD-SCDMA industry.
Because we are always in the backstage when we cooperate
with other partners in TD-SCDMA field. I hope that there
more and more China users know Aeroflex company information.
The HQ¡¯s input to China market is increasing now. As what
you see, many large test systems have been transferred to
the service center. In 2008, we founded a new sole corporation
to provide service for our customers, as service is a very
important aspect for China users other product sale. Currently,
Aeroflex has set office in Beijing, Shanghai and Shenzhen.
In the personnel recruitment, Aeroflex is recruiting new
talents continuously as we seen many opportunities in China.
Aeroflex will enhance the investment in new growth field
as we¡¯ve invested in TD-SCDMA and future TD-LTE. We are
very pleased to become a member of TD forum. We will participate
into many forum activities and enhance our reputation.
Wang Jing: We can know more about Aeroflex too. It is good
for other member organizations for the lots of business
cooperation opportunities. This is today¡¯s talk. Thank you!
Jiang Qi: Thank you
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