Panxing's quotation is still 7 million less than the quotation of $600 million, which makes Telfort, Ericsson, Alcatel and even KPN very curious. How did the Chinese do it?

In general, it is believed that Panxing Company is preparing to come up with a model project in order to open up the European market.—{2}{3}{w}{x}Choose Telfort Company as a breakthrough point, which is because it is attracted by their weak position. It would rather lose some of the costs and set up an OTN technology demonstration in Europe. For the Netherlands, which has a small land area and expensive labor, this is a good choice.

The cost of the same network project is earth-shaking in the Netherlands and in China. Even if it is the same 100g backbone network project in China, it is impossible to get the project if it is a line with such a large area in the Netherlands, a quotation of 100 million US dollars.

Because China's land expropriation costs and labor costs are too far from that of the Netherlands. The Netherlands does not say that every inch of land is valuable, but the land is in private hands. If you want to lay the lines, you have to discuss them one by one.

Labor costs are another big deal. Not only is the highest in the world, but there are also higher ones, such as the rich people in the Middle East. But in Europe and Western Europe, the labor costs of the Dutch are indeed extremely high. If Chinese workers can be used to replace the Dutch in construction, it will indeed save a lot of money.

This entry and exit, coupled with the "slightest" loss from Panxing Company - the total number may reach US$100 million or 200 million, this project can still be done.

As for the gap of $100 million or 200 million, some believe that the Chinese government may provide subsidies, while others simply point out that the quality of the project may be sacrificed.

But no matter which party it is, they are very curious about Panxing Company's cost reduction to this level.

Zhou Shuo coughed lightly, smiled slightly, and said, "In fact, we must clearly realize that the essence of this bid is two projects. One is the optical transmission network project, and the expenses of this part should be four parts. One is the equipment payment, used to purchase optical fibers, optical switches, data centers and other equipment. The other is the project payment, used to pay for project construction expenses, such as newly built computer rooms, loss of tools and equipment, network relay facilities, etc...."

Zhou Shuo turned his fingers and only two fingers were left here. He paused for a moment before slowly saying: "The third is labor costs. We will introduce some Chinese workers. We will bear those work with low technical content, and I believe that some of the costs can be reduced."

Sure enough! All the Westerners present couldn't help but nodded, and they still had to rely on labor exports to save money! Telfort, a national network, has not been completed for a long time, because the construction cost is too high. The only thing that Chinese companies have advantages over Dutch companies is that their manpower is worthless.

Zhou Shuo did not care about the clear expressions shown by these people, and continued without any impact: "The fourth part is the land expenses, which are used to pay for the cost of the land."

"Our detailed quotation for optical transmission network engineering composed of these four parts is listed in the bid. It is US$430 million. Considering that since KPN has invested in Telfort, if it can use part of KPN's existing engineering facilities and land, the quotation for this part can still be reduced."

Albert's eyes lit up, and his heart suddenly became bright! The Panxing Company has done a lot of homework. Even this happened! If he could rent a part of the facilities of KPN, it would be like tying Telfort firmly to the KPN tank. From then on, both companies prospered and lost. It would be beneficial to him without any harm!

KPN invests in Telfort Company only the first step. Albert is willing to promote KPN to acquire Telfort Company from the bottom of his heart. There is no saying in the communications service industry that it is better to be a bullhead than a phoenix tail. This is an industry that is easy to form a monopoly. The result of being alone can only be waiting for death. It is impossible to live a peaceful life with a small plate.

Once Telfort is merged into KPN, at least the shareholders on the board of directors will become shareholders of KPN, or they can sell their shares at a good price. KPN is already the largest network service provider in the Netherlands. If Telfort can merge Telfort to monopolize the Netherlands' telecommunications business, it will be a matter of time.

Zhou Shuo's approach gave him hope to promote the alliance between the two companies.

"What about gsm network?" Andrew asked, "For a quote of $163 million, I can't imagine how you can do it."

Andrew looked around and added: "And I don't believe that Panxing Company will provide inferior projects. Are you really going to undertake this project through losses? I am bluntly speaking, this is not a good choice for our Telfort Company. If a project is operating in a state of losing money, even if you are unintentional, it may be difficult to ensure quality."

"Please rest assured by all of the Telfort Company. Our Panxing Company will never provide inferior projects." Zhou Shuo nodded and made a guarantee.

"Sorry, please allow me to offend me." The person who spoke was Ericsson's vice president and Cto Gary, who poked his head out and frowned: "Ericsson has rich experience in the assumptions of GSM network. In terms of this tender, the macro base station covering the entire Netherlands requires more than 1,000 micro base stations and more than 20,000 micro base stations. The construction cost of macro base stations, excluding labor costs, is also more than 100,000 US dollars. Although the cost of micro base stations is not high, they are mainly used in cities, and the cost of land use will be higher than that of macro base stations."

The so-called macro base station is commonly referred to as a large signal tower that people often use. The signal coverage area of ​​a macro base station can reach about 30 to 60 kilometers, which depends on many factors such as equipment and terrain. Generally, in an ordinary prefecture-level city, there are only two or three macro base stations in urban areas to meet the needs.

However, there are many blind spots in the city, and the signal of the macro base station cannot be covered by blocking it. At this time, micro base stations need to check for shortcomings and make up for leaks. Therefore, the number of micro base stations will be much more than that of macro base stations. The troubles and cost of land use in cities will also increase.

Just think about it, if there are more than 400 cities and towns in the Netherlands, the use of micro base stations is more than 20,000, each of which has to rent them, buy properties and set up antennas, how huge the cost will be? What's more, a developed country like the Netherlands, the cost is ten times higher than that of China.

This little increase in cost alone accounts for 30% of the entire gsm network engineering cost.

Gary made what he thought was a decisive victory and said confidently: "After our Ericsson Dutch company's professional calculations, if the number of micro base stations is less than 20,000, even if the GSM network is built, Telfort's network quality will only be the lowest among the four operators."

In the early days, there were many problems with GSM networks. The technology of base station switching and signal coverage was not mature enough. If the number of base stations is small and the overlapping area is not large enough, it is easy to cause network disconnection and serial numbers. The only solution is to increase the density of base stations and make the overlapping signal area between the two base stations large enough.

Gary's general is about to reach the point this time. If the number of base stations set up in Panxing's bid is less than 20,000, they may be sent out directly. Even if the number of base stations on Panxing's bid is 20,000, the huge property cost can make this project profitable - it may even cause huge losses.

"Mr. Gary said one thing very well. After calculations by our Panxing Company, we believe that if we want to build a complete GSM network for Telfort, at least 28,000 micro-base stations will be arranged in the Netherlands."

Zhou Shuo laughed and said, "But Ericsson may not understand our Panxing Company. We have two patented technologies that can greatly reduce the number of micro base stations."

"What technology?" Andrew looked at Zhou Shuo curiously and asked excitedly.

Since Zhou Shuo took out the OTN technology, Andrew felt that Panxing Company was definitely not a person like Err. Since it can go further than Alcatel in the field of optical communications, why is it also outstanding in GSM base station technology? China is really a place where miracles are easy to create.

"These two technologies are repeater stations and distributed base station technologies, which are also the reason why we can reduce the cost of GSM network construction to 163 million."

"Repeat station? Distributed base station?" Gary was inexplicably aware of the CTO of Ericsson Netherlands. He is a CTO in the industry anytime and anywhere. Why hasn't he ever heard of these two technologies?

Zhou Shuo glanced at him lightly and smiled: "This is a unique solution that our Panxing Company specially customized and developed for Telfort Company, considering cost, maintenance and performance."

As he was talking, Li Baogui got Albert's consent by cleaning up and took out a drawing of more than one person from his bag.

Two employees of Panxing Company expanded the drawing one left and one right, and fully displayed the content on it. There are no complex design graphics or advanced technical information on the drawing, but a set of simple schematic diagrams.

The illustration of macro base station, micro base station, city, countryside, indoor and underground is very simple and easy to understand, but it only initially depicts the general composition of a GSM network.
Chapter completed!