Yesterday Juniper Networks (NASDAQ:JNPR, news, filings) won an interesting deal with China Telecom Shanghai. The Chinese incumbent has implemented Juniper's top of the line, multi-chassis routing system, the TX Matrix Plus hooking up multiple T1600 core routers. The massive bandwidth upgrade was necessary in order to scale its metropolitan network to handle both consumer demand and that of the World Expo currently going on in the city as well. They had been using three T640 core routers to serve the area since 2006, but needed to move up to the next level.
China Telecom's Shanghai division serves some 3.5M broadband customers, a third of whom apparently subscribe to IPTV services as well. That sounds like a lot, but Shanghai's population is on the order of 20M, so there is much room yet to grow. There are many other very large metropolitan areas in China whose appetite for bandwidth may lag Shanghai but not by much. Having a foothold with China Telecom in this market puts Juniper in a good position to win more deals down the line.
The internet in China is a wildly contradictory phenomenon that is far more dynamic and bizarre than western reporting about the Great Firewall is able to convey. But wherever they take it (or it takes them), bandwidth is booming on all fronts.
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