After a week of stable operation of the 500-door program-controlled switch developed by Xinchuang Electronics Company, it naturally won the order from Dongguan Telecommunications Bureau.

Since 82 years, Fuzhou has introduced process control switches, which has caused a shock in China, and thousands of people in the communications industry have visited Fuzhou every year. Although telecommunications bureaus across the country have recognized the advanced technology of program-controlled switches, imported equipment is expensive, and not many cities in China can afford it.

Compared with the 10,000-door program-controlled switch introduced abroad, the configuration of the 500-door program-controlled switch is of course relatively low-end. However, replacing the vertical and horizontal telephone exchange with this can immediately improve efficiency.

And it's also very affordable, even compared to vertical and horizontal telephone exchanges, it's only cheaper, not more expensive.

In fact, the vertical and horizontal telephone exchange has a complex mechanical and mechanical structure, and there are no more than ten countries in the world that can independently manufacture this kind of equipment, and China is one of the very few countries that have the ability to produce vertical and horizontal telephone exchanges, which also proves that the industrial foundation is good. On the surface, there is a big gap with developed countries, and it is only some high-end technologies that have been blocked. In fact, with the foundation of China's industry, if it is not subject to technological blockade, it is possible that the pulverizer of developed countries will be started many years in advance!

Compared with the non-bulky vertical and horizontal telephone exchange, the core components of the program-controlled exchange are mainly integrated circuits, and the complexity of these integrated circuits is even less than that of a Pangu computer. The failure of domestic independent production is just a blind spot in thinking, overestimating the technical content of this thing. Really pierced this layer of white paper, its price can be beaten to the price of cabbage!

Therefore, Dongguan signed a contract for 20 program-controlled switches, and the amount involved in the contract was only 400,000 yuan. Although, it may be that the efficiency of 20 500-door program-controlled switches is not as good as that of a single 10,000-door program-controlled switch. However, the 10,000-door program-controlled switch introduced in Fuzhou will be as high as 5 million US dollars even if the Japanese side gives a preferential price, and the introduction from Europe and the United States will be as high as more than 10 million US dollars.

And 20 500-door program-controlled switches, although it is more complicated to use than a single program-controlled switch. However, after the installation is completed, it will be able to increase the installed telephone capacity of Dongguan at the cost of several hundredths of imported equipment.

More importantly, a program-controlled exchange can set up new telecommunications bureaus in villages and towns, which can carry out telephone service to households.

In fact, in the 90s, domestic telecommunications equipment could blow out because the telephone penetration rate was relatively low, but the growth was very rapid. The introduction of imported switches and other equipment is difficult to produce benefits in some economically underdeveloped villages and towns.

But assuming that the investment in equipment of a new telecommunications bureau only needs tens of thousands of yuan, this is a profitable business. Because, the investment of tens of thousands of yuan only needs 10 households to install the capital to protect the capital, and if you install a few more, the installation fee is the net profit. In addition, in the follow-up operation process, there will be a steady stream of phone bill income.

International manufacturers sell more than one million pieces of equipment, and domestic manufacturers sell tens of thousands, although the performance and quality may be much lower than those large manufacturers. But it belongs to the category of improvisation, even if there is a failure, it actively cooperates with replacement and maintenance. In this way, it can naturally quickly encroach on the inland market that international manufacturers disdain.

On the contrary, the technical threshold has been pierced, and everyone can manufacture it, and the domestic manufacturers still have a certain profit margin for tens of thousands of telecommunications equipment sold quickly.

In the mid-90s, China's telecommunications infrastructure was known as the "seven countries and eight systems", and the introduction of coastal cities and first-line telecommunications equipment was basically imported from different companies in different countries, not only at different prices. Moreover, they are basically non-standard and incompatible. For a long time, domestic telecom operators believed that only after the international manufacturers could manufacture such advanced equipment, and China's domestic manufacturers could not make telecommunications equipment as tall and tall things.

The first company to break the myth that only developed countries can manufacture telecommunications equipment is called Julong Technology! This company is the originator of domestic program-controlled switches, and at the peak of Julong Technology in the mid-90s, it can win orders of 10 billion yuan a year. At that time, the market share of Julong Technology in China was no less than that of overseas manufacturers. As for companies such as Huawei, ZTE, Datang, and Fiberhome, they are all looking up to the streets of Julong Technology. It is a pity that the technical team of Julong Technology Company was originally an active technical officer and soldier of the army, and at the end of the 90s, international policy did not allow the military to do business, so the technical team of Julong Company with military establishment had to be evacuated. Because this situation was not expected, the dragon company quickly fell.

It is also the decline of Julong that has led to the rise of competitors such as ZTE, Huawei, and Datang. Companies including ZTE and Huawei are strategically the same as the dragon, relying on cheap and sufficient low-end products to surround the city from the countryside and seize the market share in most areas bit by bit. In the end, only the first- and second-tier cities remain, and sooner or later they will change to domestic equipment.

At the end of the day, there is only one word – cheap!

This is not the same level as the cost performance of the computer you sell 4000 and I sell 2000. It's that you sell 1 million, and I sell 20,000!

Even if 1 million devices are indeed better than mine. But that little bit of performance isn't worth the difference. This kind of large-scale procurement of annual procurement volume will gradually reach a huge market of 10 billion or 100 billion yuan, and cost performance is the key.

In terms of the rapid development of the domestic telephone installation market, the overall use of imported equipment, the cost of a telephone into the home is about 3000 ~ 5000 yuan, plus the telephone, the telephone installation cost is 5000 ~ 10,000 yuan.

The replacement is replaced by the products provided by the new venture electronics company, and the cost of telephone access does not exceed 100 yuan. Even if the cost of the telephone is included, it is only a cost of 2,000 yuan.

This lowering of the threshold will promote the rapid growth of the number of telephone users.

Even if the state-run telecommunications bureau does not have performance appraisal indicators, if the benefits are better, employees can still get better benefits. For example, welfare housing!

The unit with better conditions, although the salary will not rise much, can provide benefits to employees, for example, the welfare housing system that is hated by the real estate of later generations. The real estate development in this era is not very large, mainly because most of the units have subdivision benefits. Units with good benefits will not be able to get a big house per capita in a few years. Even if the unit with poor efficiency is equivalent to a free long-term staff dormitory, it can still be guaranteed.

The contract in Dongguan is only a start, in fact, the current orders in Dongguan can only meet the 10,000 lines. In fact, the local market potential in Dongguan is at least 100 times more than 100 times more room to grow, and with the economic development, this city alone needs to install at least one million telephones.

Not to mention thousands of cities across the country, the future of the telephone installed market alone is an astronomical number.

It is precisely for this reason that after Lin Qi made the company's program-controlled switch products, he separated the project team and established a new company, Xinchuang Communication Technology Co., Ltd.

In the future, this company will specialize in telecommunications equipment, not only fixed telephone-related program-controlled machines, telephone lines, telephones and other businesses, but also a huge market of Internet equipment and mobile communication equipment with a larger market scale.

Although this business will not be the main business of the group company, it is a very promising direction after all. Moreover, it can be regarded as making a contribution to the country by getting involved in this market many years in advance, allowing the country to save some foreign exchange and allowing those international monopoly oligopolies to make less profits.