Italy's telecommunications giant Aethra plans to expand its presence in China greatly and double its operational output within three years.

Giulio Viezzoli, president of Aethra, a global leader for audio-video conference endpoints and related services, and network termination equipment, said the company's decision was based on growing demand in China's market and close cooperation with Chinese partners.

Aethra set up its representative office in Beijing in 1998 and its sales output in China reached US$6 million in 2003.

"Our aim is to increase sales output to US$12 million by 2006," said Giulio, adding that he is confident of reaching the goal because of the company's better business performance in China since the beginning of last year.

In terms of sales volume in 2003, the company has become the world's No 3 after the US-based Polycom and Norway's Tandberg, according to the ranking from the US-based market investigation company Wainhouse.

Last year, the total sales volume of all its branches worldwide stood at US$100 million. It plans to reach US$120 million by 2006.

Aethra was founded in December 1972 by Giulio, president and CEO of Aethra, with the aim of becoming an international market leader in the telecommunications industry. Aethra has been utilizing digital technology since the 1970s, and the company first developed ISDN products, terminations and videoconferencing systems, in the 1980s. Over the past decade, Aethra has focused on the development of a wide range of video communication solutions, satisfying the requirements of many different sectors.

Today, with headquarters in Ancona of Italy and offices around the world, Aethra is one of the key players in the global telecommunications market, with a presence in more than 60 countries.

It distributes its leading-edge products through more than 40 carriers and businesses worldwide.

Macro Viezzoli, vice-president of the family-held company, said relying on heavy investment on research and development (R&D) and exploring potential markets will become major strategies to achieve goals.

Aethra's dynamic Research & Development department is at the heart of the company's business philosophy, enabling Aethra to stay at the cutting edge of technological developments. As a result, the company produces high-quality products that are compliant with key international standards, and creates highly flexible, personalized solutions for its customers.

"Every year, the company invests significant revenues back into R&D and participates in numerous international research projects, with the aim of achieving ever-increasing levels of customer satisfaction," said Macro.

He said modern corporate governance inside the family-held company has helped prevent a short-lived fate.

"To localize our production is main strategy in China," said Macro.

Out of the world's top four telecommunication companies, Aethra is the only one building a factory in China. Its company is based in South China's economic hub Shenzhen.

David Li, president of Aethra China said in China, Putian and Unicom were the major partners for his company. Users of video communication and audio conferencing equipment are currently being attracted from enterprises and government organizations.

"We are going to expand our service to individuals," said David.

He said innovation is always the main focus of Aethra's strategy and new technology is the cornerstone of the company's success.

He said "it's the same with our strategy in China."

"The mission is to continue leadership in audio and video communications over broadband networks, and to achieve broadband network convergence thanks to experience gained in the networking, video communication and services sectors."

(China Business Weekly September 13, 2004)