China - Major Telecom Operators - Overview and Statistics

Synopsis

In 2008, the biggest announcement regarding China’s telecommunications industry in almost a decade was made. The government’s reforms created three integrated operators, China Mobile, China Telecom and China Unicom, reducing the number of main operators from six to three. The newly converged operators were to boost the China telecommunications market, particularly with the foreseen growth after the 3G licences were finally awarded later in 2008. This report provides an overview of the three big operators in China’s telecommunications market, including analyses on the industry restructuring. It includes financial and operational statistics, capital expenditure breakdown by operator and strategic direction post 2010.

Key developments: consistent revenue growth by all operators but varying levels of profitability; value added services gain a larger percentage of total revenue; ARPU continues to decline; broadband investments increase particularly FttX infrastructure.

 Companies covered in this report include: China Mobile; China Telecom; China Unicom; China Netcom; China Satcom; China Tietong.

Table of Contents

• 1. Synopsis
• 2. Overview of industry restructure
  • 2.1 Restructuring of the telecommunications operators: 1993-2001
  • 2.2 Industry restructure: 2002-2007
  • 2.3 Drivers for business restructuring in China – 2007
  • 2.4 Industry restructure – 2008
  • 2.5 Newly formed entities – 2008
• 3. China Mobile Ltd (CML)
  • 3.1 Company overview
  • 3.2 Company background
  • 3.3 China Mobile: Financial statistics
    • 3.3.1 China Mobile: Financial statistics – value-added services
    • 3.3.2 Financial highlights – Annual Report 2008
    • 3.3.3 Financial highlights – Annual Report 2009
    • 3.3.4 Financial highlights – Annual Report 2010
    • 3.3.5 China Mobile: Capex
    • 3.3.6 Financial and operating highlights – Q1 2011
  • 3.4 China Mobile: Operations statistics
    • 3.4.1 China Mobile: Operations statistics – value-added services
    • 3.4.2 China Mobile: Operations statistics – 3G development
  • 3.5 China Mobile: Business operations strategies
  • 3.6 China Mobile investments and the development of m-commerce
  • 3.7 China Tietong (merged into China Mobile)
• 4. China Telecom
  • 4.1 Company overview
  • 4.2 Company background
  • 4.3 China Telecom: Financial statistics
    • 4.3.1 Financial highlights – Annual Report 2008
    • 4.3.2 Financial highlights – Annual Report 2009
    • 4.3.3 Financial highlights – Annual Report 2010
    • 4.3.4 China Telecom: Capex
    • 4.3.5 Financial and operating highlights – Q1 2011
  • 4.4 China Telecom: Operations statistics
  • 4.5 China Telecom: Business operations strategies
    • 4.5.1 Business operations strategies – 2009
    • 4.5.2 Business operations strategies - 2010
  • 4.6 China Satcom (merged into China Telecom)
• 5. China Unicom
  • 5.1 Company overview
  • 5.2 Network capacity
  • 5.3 Company background
  • 5.4 China Unicom: Financial statistics
    • 5.4.1 Financial and operating highlights – Annual Report 2008
    • 5.4.2 Financial and operating highlights – Annual Report 2009
    • 5.4.3 Financial and operating highlights – Annual Report 2010
    • 5.4.4 China Unicom: Capex
    • 5.4.5 Financial and operating highlights – Q1 2011
  • 5.5 China Unicom: Operations statistics
    • 5.5.1 China Unicom: Operations statistics – GSM business
    • 5.5.2 China Unicom: Operations statistics – 3G business
    • 5.5.3 China Unicom: Operations statistics – fixed-line broadband and data communication business
    • 5.5.4 China Unicom: Operations statistics – traditional fixed-line business
  • 5.6 China Netcom (merged into China Unicom)
    • 5.6.1 Financial and operating highlights – Interim Report 2008
    • 5.6.2 Recent developments
• 6. Related reports

• Table 1 – China Mobile revenue, capex, EBITDA margin, net profit – 2000 - 2010
• Table 2 – China Mobile VAS revenue breakdown (selected items) – 2006 - 2010
• Table 3 – China Mobile revenue composition of value added business – 2006 - 2010
• Table 4 – China Mobile capex – 2008 - 2013
• Table 5 – China Mobile subscribers, annual change, ARPU and market share – 1997 - 2010
• Table 6 – China Mobile voice usage – 2006 - 2010
• Table 7 – China Mobile key operating data – 2008 - 2010
• Table 8 – China Mobile Advanced services usage – 2007 - 2010
• Table 9 – China Mobile advanced services by subscription – 2008 - 2009
• Table 10 – China Mobile advanced services by subscription – 2010
• Table 11 – China Telecom financial data – 2001 - 2010
• Table 12 – China Telecom revenue breakdown – 2008 - 2010
• Table 13 – China Telecom wireline revenue breakdown – 2007 - 2010
• Table 14 – China Telecom capex breakdown – 2008 - 2010
• Table 15 – China Telecom fixed-line, PHS and broadband subscribers and ARPU – 2004 - 2010
• Table 16 – China Telecom mobile and 3G subscribers and ARPU – 2002 - 2010
• Table 17 – China Telecom key operational statistics – 2007 - 2010
• Table 18 – China Unicom financial data – 2001 - 2010
• Table 19 – China Unicom mobile and fixed-line service revenue structure – 2009 - 2010
• Table 20 – China Unicom mobile and fixed-line voice and non-voice revenue – 2008 - 2010
• Table 21 – China Unicom mobile service revenue 2G and 3G – 2009 - 2010
• Table 22 – China Unicom capex breakdown – 2007 - 2011
• Table 23 – China Unicom GSM mobile subscribers – 2002 - 2010
• Table 24 – China Unicom key operating metrics – 2007 - 2010
• Table 25 – China Netcom subscribers by service – 2003 - 2008
• Table 26 – China Netcom ARPU by sector – 2003 - 2008
• Table 27 – China Netcom revenue percentages – 2003 - 2008
• Table 28 – China Netcom financial data – 2003 - 2008
• Table 29 – China Netcom traditional and innovative revenue ratios – 2005 - 2008

• Chart 1 – China Mobile revenue, capex, ARPU – 2000 - 2010
• Chart 2 – China Telecom revenue, capex, broadband ARPU, mobile ARPU – 2004 - 2010
• Chart 3 – China Unicom revenue, capex, mobile ARPU – 2002 - 2010
• Chart 4 – China Unicom subscriber data – mobile, fixed-line, broadband – 2007 - 2010

• Exhibit 1 – Restructuring Scenario 1
• Exhibit 2 – Restructuring Scenario 2
• Exhibit 3 – Restructuring Scenario 3
• Exhibit 4 – China Mobile Limited at a glance – December 2010
• Exhibit 5 – China Telecom Corporation Ltd at a glance – December 2010
• Exhibit 6 – China Unicom Ltd at a glance – December 2010
• Exhibit 7 – China Network Communications Group Corporation (Hong Kong) Limited at a glance – H1 2008