Introduction:
Dr. Tao Xiongqiang currently works as the Vice-President
of China Potevio Information Industry Group, Senior Vice-President
of China Potevio Information Industry Corporation Limited
and President of Headquarter of System Project Department
and Dean of China Potevio Information Technology Academy
and etc.
Foreword:
With the outspread of the construction of TD-SCDMA scale
testing network, China Potevio's power is more and more
obvious day by day with a tendency well prepared for a terrific
start. At the same time, we observed an interesting phenomenon,
that is, although media exposal rate of China Potevio on
TD-SCDMA development is not high, we always read concise
and comprehensive good news on State-owned Assets Commission
official website, for example, ¡°construction of China Potevio
TD-SCDMA scale experiment website project is ongoing favorably¡±.
With strong curiosity, Acting Secretary General of TD-SCDMA
Technology Forum Doctor Wang Jing called on China Potevio.
The meeting room on the top floor of China Potevio¡¯s new
office building is elegantly decorated with a wonderful
view. Standing in the front of the bright French window,
you can either look the mountain far away into the distance,
or overlook Boya Tower in Peking University. Here, Senior
Vice President of China Potevio Information Industry Corporation
Limited Doctor Tao Xiongqiang accepted the exclusive interview
of TD-SCDMA Forum and Sina.com Tech.
Interview Content:
Model-transferred China Potevio
Tao Xiongqiang: Fist I would like to give a simple introduction
on the highlights of China Potevio Academy in researching
field. TD-SCDMA is the emphasis of our investment and it
is a national project. Early in 2001, Potevio established
Potevio Information Technology Academy, from then on, the
researching investment of Potevio converted to investment
in both headquarter and sub-company from main investment
to sub-company. In the early 2003, company decided in due
form to enter TD field and mobile storage card industry
is Potevio¡¯s another investment direction.
Wang Jing: TD¡¯s mobile storage card? Is it used in mobile
phone?
Tao Xiongqiang: Yes, it can be used in mobile phones or
as USB disk and it is an intelligent storage card. Potevio
mainly arranged its industry direction in 2003 and 2004
and made important adjustment on the management system in
the 2005. We concerned about Potevio¡¯s marketing, previously
headquarter lacked marketing and sales capability and who
will be in charge of marketing and sales after the new adjustment
of system? In the year of 05, Potevio headquarter decided
to implemented ¡°Project Department Management System¡±, Potevio¡¯s
industries involved were divided into 5 parts, it is 5 industries
including ¡°system, terminal, components, industrial application
and increment service¡±, the hundreds of Potevio¡¯s products
are categorized according to these 5 parts and project department
will be established for those parts with ripe condition.
System Project Department, Terminal Project Department and
International Project Department were established in 2005,
Finance Project Department was established in 07 and among
them, System, Terminal, and Finance, these three project
departments was divided by products.
Wang Jing: What is the main business of International Project
Department?
Tao Xiongqiang: All the international businesses are processed
in International Project Department, there are many subsidiary
companies of Potevio which have international businesses
but the international businesses of each subsidiary company
are not so big, therefore all the international business
are centralized to International Project Department and
Potevio¡¯s overseas investment is also undertook by International
Project Department. System products and products and services
for operator are drawn to System Project Department, products
for end users are drawn to Terminal Project Department and
the products and services for finance industry are undertook
by Finance Project Department. The establishment of Project
Department brought qualitative change to Potevio, and Potevio¡¯s
model-transformation from a pure managing company to an
entity and property company brought Potevio historical significance.
Wang Jing: Model-transformation?
Tao Xiongqiang: Yes, model-transformation! An entire model-transformation!
From headquarters¡¯ previous guideline issuing and checking
to headquarters¡¯ concrete participation in the operation
of industry chain and from indirect responsibility for company
to direct responsibility for company. In 05, I myself also
took the position of General Manage of System Project Department
from pure charge of Reaching Academy. The concept of Project
Department covers the whole industry chain including developing,
producing, sales, engineering and etc.
Wang Jing: Is the effect obvious from 05 till now?
Tao Xiongqiang: It is very obvious and the running scale
of headquarter is increased constantly.
Wang Jing: That is a good omen.
Tao Xiongqiang: The current situation is good, the headquarter¡¯s
direct operation will occupy almost 1/3 of the sales scale
this year, Potevio¡¯s souse control capability is enhanced
greatly, and in general, it has great effect to Potevio¡¯s
entire figure promotion. It is terrible if a group has no
uniform control capability, the current four Project Departments
are drawn to Potevio Corporation, for all the companies
under Potevio, whenever an industry is identified, it will
be drawn to Potevio Corporation.
Wang Jing: Didn't Potevio Corporation come into the market?
Tao Xiongqiang: No. We want to establish this platform well
first and currently 90% of Potevio Group¡¯s assets are invested
to this operating platform.
Wang Jing: The change is obvious and it is qualitative change!
Tao Xiongqiang: It is qualitative change. Now Potevio headquarter
runs the industry in all sides, and much care is required
for the whole link from developing to marketing. Growth
process of Project Department is also the establishment
process of new Potevio and accordingly, our logo has changed
to today¡¯s ¡°Potevio¡± for the consideration that ¡°China Putian¡±
is not favorable for internationalization although ¡°China
Putian¡± is popular in China. ¡°Potevio¡± covers the significations
of power, correspondence, technology and energy.
Potevio¡¯s big environment including industry platform, operating
platform and brand is established and Potevio grows to be
an entire industry company. Now Potevio¡¯s performance is
better and better year by year from previous frequent criticism
to current frequent praise, but... (smile) the reform is
especially a successful model.
Wang Jing: It is not so easy, for we all know that there
are many second level and third level subsidiary companies
of Potevio, then how to incise and divide them.,
Tao Xiongqiang (smile): Reform faces concept transformation
at the same time, previously Potevio was only an executive
governor, did not afford responsibility directly, headquarter¡¯s
dispatch on subsidiary resource was also very difficult,
now along with the running integration, sub-company¡¯s approval
to Potevio is higher and higher, there is no inharmonious
voice between superiors and subordinates, they all accept
Potevio as an industry company, they all want to establish
the platform healthily and Potevio's growth is comparatively
successful among headquarter-type centralized SOE.
Wang Jing: Is the logo unified?
Tao Xiongqiang: Yes, it is unified and it was not forced
to be unified like before. If subsidiary company wants to
use Potevio¡¯s new logo, Potevio does not surely approve
the second level company¡¯s use and it must pass Potevio
Quality System Department's auditing. Supervision Department
will supervise it.
Wang Jing: Currently Nokia Siemens joined the forum, the
public pay much attention to Nokia Siemens and Potevio Nokia,
while Potevio occupies 51% in Potevio Nokia, would you please
give a simple introduction on this aspect?
Tao Xiongqiang: Potevio Nokia was registered in 06, and
till now, Potevio¡¯s TD production is processed by a joint-venture.
The company itself runs normally, Nokia Siemens currently
owns TD Tech and Potevio Nokia, and stockholders will communicate
further to negotiate how to develop.
Potevio¡¯s TD-SCDMA
Tao Xiongqiang: Let¡¯s pick up TD. In TD-SCDMA developing
aspect, China Potevio began in 2003, investment in developing
and late stage industry investment have been enhanced continuously
and the team was enlarged. Currently there are more than
8 hundreds researching staff, researching process is mended
continuously, currently in China Mobile¡¯s group purchasing,
it is the company with most complete product line which
can provide several product series of macro cell, micro
cell and light fiber pulls distant. Currently, the above
mentioned three product lines have won bids in Tianjin and
Qinhuangdao in succession, and for new functions, its places
in the competition of rate of progress and testing are in
the front. Recently China Mobile and Information Industry
Ministry consigned its subordinate to do testing and Potevio¡¯s
places of competition in each index of HSDPA, RF front end
stability, roaming shift between multi-protocol state, TD
and GSM, and the whole process of IOT (inter-operability
test) are in front. Testers are surprised with the result
for they all long take us in the fourth place but each index
is in front in the actual test. There is also suspicion
for some of the indexes were tested twice, the testers are
confused and they said that they always thought it is normal
that we should be in the fourth place and abnormal if not,
therefore we hope you help do some propaganda for us, ha-ha.
Wang Jing: What are Potevio's advantages in competition?
Tao Xiongqiang: China Potevio¡¯s advantages in TD-SCDMA competition
lie in the following aspects: firstly, in organization network,
scale product line construction has been finished and it
will make our price be more competitive in the near future,
secondly, it is competitive in price, thirdly, it is competitive
in application for there is increment platform in the previous
GSM net, TD-SCDMA can adopt ¡°Refer-ism¡±, and the combination
of Potevio¡¯s another main product mobile intelligent storage
card and TD is under consideration, the motion payment function
of intelligent storage card takes the leading position in
the world and presently it is issued under the cooperation
with banking union. At the same time, ¡°Mobile Yellow Pages¡±
with easier search function and more detailed information
put forward recently was chosen by China Netcom to serve
for 2008 Olympic Games under service providing by us and
there are also some terminal authorization functions to
be brought into TD as highlights of the solution project.
Wang Jing: What is the mechanism of Potevio¡¯ investment
to TD?
Tao Xiongqiang: At present, it is stock investment mainly
supported by profits of Potevio¡¯s other industries.
Wang Jing: En, actually it is a right step and there are
many international companies taken this step.
Tao Xiongqiang: Presently it is impossible for TD product
line to live on itself absolutely and we hope it will next
year.
Wang Jing: Are you confident with your cost competitive
power?
Tao Xiongqiang: We have adequate confidence and our new
edition cost is competitive.
Wang Jing: Is that because your production and purchasing
have been localized?
Tao Xiongqiang: Yes, Potevio has established a central purchasing
platform to unify price negotiation, share resources and
integrate inter resources gradually.
Wang Jing: I am aware of the matter thoroughly that Potevio
took part in TD. I was shocked when I called on three weeks
ago, before there were few people in our team and the researching
staff is not as experienced as ZTE and HUAWEI staff but
these years the staff increased to more than eight hundreds,
both Node_B and RNC are developed by the company itself
and it is not an easy process. Public¡¯s impression to your
company still stays in the stage of the reform several years
ago but actually it foreheads post in these two years. How
about the situation in Qinhuangdao and Tianjin after won
bids.
Tao Xiongqiang: Goods supply for these two areas was in
place by the end of July this year. At present, Qinhuangdao
route has been opened thoroughly to 100%, and at the same
time, network optimization project was carried out earlier
than anticipation. Presently Tianjin route has not opened
till now for some negotiation problem on site location in
Tianjin has not been solved.
Wang Jing: Is the work in Qinhuangdao the fast one among
the eight cities?
Tao Xiongqiang: Yes, goods supply, route opening, network
optimization are all the fastest and are all earlier than
optimization.
Wang Jing: Where is your company¡¯s TD production base?
Tao Xiongqiang: It is in Wuhan, there is a professional
production base-Potevio Joint Venture Company and the whole
process of production is carried through there.
Wang Jing: Is the whole design of mass-produced product
carried out by Potevio?
Tao Xiongqiang: Yes, it is carried out by Potevio itself,
production is finished by joint venture company for consideration
of specialization division, and development and design are
finished by Potevio separately, that is joint venture production
company. By TD program, the whole Potevio¡¯s industry chain
has been established, further more, 4G development power
is being enhanced and we begin to invest in the after 3G
project team established recently to try to develop it.
In future, Potevio¡¯s floor will be strengthened gradually
for more investment, more floor and less investment, weaker
voice. Besides, on TD and GSM¡¯s union on organization network,
soft subject researching with China Mobile is ongoing to
help provide more forward looking thoughts for industry
on organization network strategy in future, it was just
checked and accepted and got high appraisal.
Wang Jing: As the four main network device manufactures,
if Potevio considers taking part in TD terminal, is not
there a Terminal Project Department in your company?
Tao Xiongqiang: We mainly take part in TD terminal chip,
we are one of the primary stockholders of Commit, Potevio¡¯s
value is displayed in the cooperation with Commit Company,
and Commit does well in chips. Potevio also made some investment
in terminal, for example, our subordinate company Potevio
Lingyun.
Wang Jing: That¡¯s right, then in system testing aspect,
for China Mobile¡¯s different requirements, for example,
HSDPA, GSM dual-mode, auto shift and etc., if Potevio¡¯s
system product reached the above support requirements?
Tao Xiongqiang: En, it generally reached. Both shift between
TD and GSM and roaming testing have ended, HSDPA in-house
testing has also finished and outdoor testing in Huairou
will start in Sep. Many inner testing have been taken, got
good feedback and there shall no problem with new function
in TD system.
About Future
Wang Jing: If so, if you can forecast what the challenge
is for system provider in next step next year?
Tao Xiongqiang: Currently, the principal challenge is TD-SCDMA
products stability and capability successive promotion,
the next is network standardization and optimization, and
another is cost reducing. Therefore lots of work needs to
be carried out, and China Mobile requests us to provide
HSDPA by the end of this year and provide HSUPA next year.
Wang Jing: Is HSUPA requested to provide next year??
Tao Xiongqiang: Yes! so all of us have great pressure. Researching
staff's string is always tight from the start of TD.
Wang Jing: What do you think is the challenge for TD-SCDMA
future development and system service providers?
Tao Xiongqiang: In future, TD-SCDMA will forehead along
the way of HSDPA and LTE unceasingly, government also supports
this way, and Potevio agrees and foreheads along this way.
Wang Jing: It is obvious that TD is Potevio¡¯s principal
product, and then how about TD¡¯s future standing on Potevio¡¯s
position?
Tao Xiongqiang: Above all, we think highly of it, for Today¡¯s
TD, the market is more and more lucid, although there is
risk, industry direction is very clear, government and operators
give more and more affirmation, industry chain is more and
more complete, and for the whole chain of chip terminal
testing system, it has achieved multi-provider almost. We
are confident about future development, it is surely that
multi technologies will coexist in future, therefore Potevio
also made some investment in other fields.
Wang Jing: Besides Potevio¡¯s general manager, you are also
a professional expert. Although there is no subversive technical
problem, to succeed, what is the main point for industry
development?
Tao Xiongqiang: In future, for TD-SCDMA¡¯s success, government¡¯s
support is most required, it is the base for the whole industry¡¯s
long term development, and at the same time, for industry
circle, promotion of product competitive power and cost
reducing are also required.
Wang Jing: I think we need top-ranking manufacture¡¯s join,
especially, for terminal.
Tao Xiongqiang: I agree on this point, we already have top-ranking
manufactures joint, and as far as I know, all of the principal
manufactures whose places in competition are in front will
join in by the end of this year and the beginning of the
next year for they have to enter TD field if they want to
keep the top-ranking position. If only China government
is determinate enough and provide long-term support, they
are surely not willing to be spectator.
Wang Jing: Potevio is the first company of the forum interview
series, it is a principal company, it is our purpose that
the public can know your company much well and has an objective
recognition, especially for the abroad.
Tao Xiongqiang: It is also our hope that Potevio¡¯s current
real situation can be spread out from the forum and by other
medium to help the public have better recognition of us,
thanks!
(The End)
Interview Postscript:
After the interview, all the while, we think about the problem
that the conception of ¡°new state-owned company¡± refers
to the ¡°new model state-owned company¡± born from the second
phase of state-owned company reform and its main character
is that it should be registered according to Company Law,
takes joint-stock company and limited company as its main
legal form, and its share structure is multiplex although
state-holding share is kept.
In the recent years, many China central companies are transferring
to ¡°new state-owned company¡±, and profits of ¡°new state-owned
company¡± are promoting drastically year by year displaying
a mighty profit-making capability. Index shows that in the
year of 2006, for China central companies, sales income
reached 8.3 thousand billion, profit reached 7681.5 billion,
and there are 21 companies whose sales income reached out
1 hundred billion and 13 companies whose sales income reached
out 0.1 hundred billion. By the end of 2006, the total capital
amount of China central companies reached 12.2 thousand
billion and the yearly average increase reached 13.6%.
It is a fact that state-owned companies¡¯ profits promoted
drastically in recent years, and low efficiency and other
problem are objective existences. By marketizing and standardizing
operation and stock transformation, state-owned company
can perform ¡°segment transformation¡± which provides wide
space for system reform operation.
What is the competitive power of ¡°new state-owned company¡±?
And what is the contribution of ¡°new state-owned company¡±?
It seems that we find the answer from China Potevio¡¯s reform
in these recent 10 years.
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