Traveling through the sword to engage in military industry.

In the communications field, after the 8080 chip and a batch of professional decoding chips came out one after another, the number of switches broke through 3000 and 5000 ports, and recently broke through 10000 ports of programmable switches!

In the main world, this technological achievement had to wait until 1970, when the world's first program-controlled digital switch was opened in Gaul, and the 70-port program-controlled switch was not realized until the mid-1982s. As for Dongda, it was not until 1991 that it spent a large amount of money to introduce the first -port program-controlled switch, and it was not until that the first -port program-controlled switch was domestically produced!
It can be said that there were many difficulties. In order to realize the ideal living scenario of having electricity and telephones upstairs and downstairs, it was not until after 2000 that telephones began to be truly popularized in ordinary households. In the early days, the initial installation fee for installing a telephone was several thousand yuan when the average monthly salary was only a few hundred yuan. Not many families could afford it.

In the world of Liang Jian, the breakthrough in large-scale integrated circuit chip production technology, one of the key technology areas that Ren Zhong focused on promoting, has brought about breakthroughs in design and chip application scenarios. In addition to personal computers, it has first gained large-scale application opportunities in communications.

Since the entire set is independently designed and manufactured, the cost of the Dongda 10,000-door programmable switching system in Liangjian World is very touching.

While competitors were charging up to US$500 per line, Dongda was able to reduce the manufacturing cost to less than US$100 when its -line programmable switching system first came out!

In the conference room of ET Company of Dongda Telecom, the atmosphere was both tense and exciting.

Professor Tang Haoqiang, the general manager of the company, had just walked in with an unconcealed joy on his face. He held a report in his hand, which was about the company's latest 10,000-port program-controlled switch that had completely passed the strict test items in the finalization test, which meant that the company had once again made a new breakthrough in the impact of large-capacity switches.

This report not only marks another technological leap for ET, but also indicates that the company's position in the global telecommunications market will be further consolidated.

"Dean Ren, we did it!" Professor Tang Haoqiang's voice was trembling. He handed the report to Ren Zhong, his eyes flashing with excitement. "Our research and development of the 5000-port switch was successful. After the news is released, it will definitely cause a huge sensation in the international telecommunications market. I can see that our order volume will usher in a new round of rapid growth. Now our production cost, with the capacity doubled, has increased by less than 20% compared to the production cost of a 100-port switch after using a large number of new chips. According to the pure BOM material bill cost and manufacturing cost, our comprehensive production cost is now lower than 500 US dollars per line. The sales price of mainstream products on the market is generally still above US dollars per line. Do we need to further reduce prices to completely collapse the market price and defeat our competitors in one fell swoop?"

There was a ruthlessness in Professor Tang Haoqiang's eyes. Previously, the market price of a 5000-port switch was 500 US dollars. Under the leadership of Ren Zhong, ET Company of Dongda Telecom positioned itself in competition with them at 450 US dollars per line. They were evenly matched, but the profit was the best among them. This allowed the Communication Technology Research Center to fully recover its R&D expenses through market sales, and use the excess profits to feed back other new technology research that had no income for the time being.

Ren Zhong took the report and quickly scanned the exciting performance indicators. He nodded with a satisfied smile on his face. He knew that this was not only another victory in new product research, but also the beginning of a new era in telecommunications.

When the number of switches reaches tens of thousands and the market price is brought down, the tide of telephone popularization will begin.

"Professor Tang, this is the result of our team's hard work and a reflection of our technical strength." Ren Zhong's voice was calm and powerful, and his eyes revealed a firm belief in the future. "Our sales strategy is, of course, to continue to suppress our competitors, but we don't need to kill them all at once. The international telecommunications market is too big, and we can't just have an exclusive."

Professor Tang Haoqiang nodded. He knew what Ren Zhong meant. In this global market environment, cooperation and competition coexist. Only by maintaining the vitality of the market can we promote the continuous advancement of technology.

"We now have a technological advantage, so there is no need for us to make such big concessions on sales prices in the international telecommunications market for the time being, so as to avoid making them think that our technology is worthless." Ren Zhong continued, his eyes flashing with wisdom.

"Our price per line will continue to be close to that of our competitors. In the international telecommunications markets of the major powers, we can also make further concessions and compete at prices 15% lower than theirs. We are now selling in bulk at US$425 per line, and the price to channels can be US$400, so that users around the world can also experience the benefits of technological progress. We are absolutely ahead of them in terms of call quality and product reliability. We must publicize this point. With this technological advantage and this new price, the competitiveness of our products is unquestionable." Ren Zhong's tone was firm. Having gone back and forth between the two worlds, Ren Zhong knew the common rule of international product pricing. It is not simply based on one's own costs, but rather on the company's overall development strategy and long-term sustained combat thinking.

"Don't feel embarrassed because we make more money. The powerful countries have never been soft-hearted when they use their technological advantages to harvest our market." There was a hint of coldness in Ren Zhong's words. He knew that in this cruel business world, only the strong can survive.

"For high-tech products, we must dare to set prices according to market prices rather than production prices," said Ren Zhong.

This was a big shock to Professor Tang Haoqiang and the ET company executives present. All along, they have been adhering to the principle of pricing from a cost perspective. Whether it is a 50% or 100% price increase, there is generally an upper limit.

Someone as unreasonable as Ren Zhong raised the gross profit to over 300%, which is a super high profit that can drive people crazy!
"We can't think that our selling price should be low just because our production cost and labor cost are low. That's not possible." Ren Zhong's voice was firm. He knew that this was a strategic idea related to the company's future positioning. ET should not make people think that it only produces cheap products, but should be a synonym for high-tech products!

"We need to benchmark the pricing system of international products and the ranking of our product's technical performance parameters among international products." Ren Zhong continued, his eyes flashing with a bit of passion. "If our product quality really reaches or even exceeds that of our competitors, then we will dare to use the best price of our competitors as a pricing reference. We are very sincere if we are 15% cheaper."

"As for promotion, we can spend more effort to showcase our products in some national exhibitions, develop demonstration projects and other aspects, and promote our communication products like cars."

Dongda Telecom ET Company is the entity responsible for promoting switches. The general manager was transferred from a technical director of the Telecommunications Technology Research Center. Of course, when he first took on the responsibility, the number of switches had just exceeded 1,000.

After so many years of development, ET has grown into an international company. The global sales of 3-port switches, 5-port switches and 10-port switches have begun to account for about 5% of the industry, because -port switches are now top-of-the-line.

Now that they have developed a 10-port switch, this is a major event. Once it is announced, it will undoubtedly make headlines in major technology media around the world. So in terms of technology recognition, ET Telecom has now made a good start. What Ren Zhong said is what he has always advocated. In the international telecommunications market competition, ET has basically always been % lower than its competitors in competing for orders. Although many countries and regions have not regarded ET as a major supplier due to various considerations, its excellent performance and more affordable prices have allowed ET to get a share of the international telecommunications market and become one of the world's mainstream telecommunications product suppliers.

When the 300-line program-controlled exchange came out, Tang Haoqiang originally thought that he would take advantage of this opportunity to completely destroy his competitors with low prices! For example, he would lower the price per line to the current ultra-low level of 200 or even more than US dollars per line. In this way, many telecom companies would probably go bankrupt and sweep the market and defeat their competitors.

Because the vast majority of competitors are still producing old-style vertical and horizontal switches, which are not only costly, but also have high operation and maintenance costs, and poor product quality and reliability, after the new programmable switches were launched by ET, only a very small number of companies have caught up and have now developed programmable switches with thousands of ports.

"Dean Ren, I understand." Professor Tang Haoqiang nodded, his eyes revealing understanding and determination. "We will not miss this opportunity. We will go all out according to Dean Ren's positioning of our products and continue to use our strength to let the world see the power of Dongda Telecom."

Ren Zhong smiled and nodded, he knew that this battle had just begun. He stood up, walked to the window, looked at the bustling streets outside, his heart full of expectations for the future.

"However, this price is the external sales price. In our Dongda Telecom market, we continue to implement the dual-track pricing system and basically sell according to the principle of small profits. However, this sales price must be strictly confidential. It is best to adopt the method of participating in telecommunications. On the one hand, it can reduce the cost pressure of Dongda Telecom's network construction, and on the other hand, it can also expand the capital of Dongda Telecom operators, making it easier to raise funds when it goes public overseas in the future."

Ren Zhong's vision has gone beyond the present and he has begun to focus on the overseas capital that is crying out for food. If we want to move forward quickly, we cannot rely solely on primitive accumulation, and we must take advantage of the overseas capital if we can.

After all, Dongda started from a very low foundation. Now, as the world's most populous country, its economic development has only ranked tenth in the world. It lacks a lot of capital. It costs a lot to build road networks, airports and other transportation. These are key infrastructures and are not very attractive to capital and the premium is not high. Ren Zhong does not want external capital to intervene. However, emerging high-tech industries such as telecommunications have great potential and can easily attract capital with a high premium. One dollar of equity can do things worth twenty or even thirty dollars. Ren Zhong certainly needs to make good use of it.

The huge industry of Dongda is taking off comprehensively. We cannot just focus on making big money from the Liming Group and think that we can support the entire industrial system of the great country. This is impossible.

From the perspective of overall development, the Liming Group is just a locomotive of industrial takeoff. It is responsible for running fast in the front and leading the way. Most of the industries behind it still need to develop through market development to continue to grow.

In the following months, ET's 10,000-line programmable switching system created a storm in the global market.

With advanced technology and reasonable pricing, ET's switches quickly captured the market, and the number of orders continued to rise. Competitors began to feel the pressure, and they had to start considering how to adjust their strategies to meet ET's challenges.

At major technology exhibitions around the world, the booth of ET Telecom is always crowded. Visitors show great interest in ET's 10,000-line program-controlled switches. They speak highly of ET's product performance and reliability, and are full of expectations for ET's future.

In some developing countries, ET's switches have become the key to improving communication infrastructure. Telecom operators in these countries have begun to purchase ET's switches on a large scale to meet their growing communication needs. ET's switches have not only improved the communication quality of these countries, but also saved them a lot of costs.

In some developed countries, the switches of ET Telecom have also begun to attract attention. Telecom operators in these countries have begun to realize that ET's switches are not only reasonably priced but also have superior performance, making them a choice worth considering. They have begun to contact ET to explore the possibility of cooperation.

As time went by, external operators gained a deeper understanding of ET Telecom's products and experienced clearer voice and more reliable quality. The low cost and the significant reduction in subsequent operation and maintenance costs meant that ET's 30-port switches had a full life cycle advantage that was at least % greater than that of its current competitors, and its market share soon continued to expand.

The 10,000-line programmable switching system began to sign contracts with one developed city telephone network operator after another in the great powers.

Seeing the endless stream of 10,000-line program-controlled switches being shipped to all parts of the world, ET employees feel more and more proud, knowing that their company is making history. They know that their efforts and innovations are changing the world.

ET has gone from being on par with other major telecom equipment manufacturers to being a leader. Judging from the orders, its market share has gradually increased from over 10% to over 30%!
There is no doubt that ET Telecom will write its own legend in the global telecommunications market.

Ren Zhong knew that if he pushed ET to go public overseas at this time, it would become Dongda's first billion-dollar enterprise in a matter of minutes. However, he was not in a hurry. He waited until the 10,000-line programmable switching system truly took control of the market development leadership and achieved better performance before releasing it. By then, he would become the world's first 50 billion-dollar enterprise!

You should know that in the main world, this record could not be created until the 1980s. Ren Zhong wanted ET Telecom to achieve such a goal in the 1960s in the world of Bright Sword. Obviously, he had a big ambition. The battle in the science and technology industry has just begun with the emergence of the 10,000-line programmable switching system.

Next is wired network and wireless communication (end of this chapter)