Well, I agree on your point on the investment of CM and Huawei/Zhongxing, but considering that from 2000 to now, the investment of telecom industry has decreased dramatically - I guess 30-50%. BUT, the companies that involves in the competition didn't decrease, that caused layoff in some company like UT. And I know that many telecom equipment providers are not in a good time, like Nortel, Acltel, Luccent - you should know that 5 years ago these companies are top choice for many people.
Bascially, China telecom industry has by pass the high-investment/return stage, that ratio(investment vs. revenue) is 10-20% in US companies. And China telecoms are getting there too, from 50-80% several years before. |