Last updated: 15 Aug 2012 Update History
Report Status: Archived
Report Pages: 191
Analyst: Paul Budde
Publication Overview
The China market still has low penetration rates and this is an excellent indicator for future growth. The report covers trends and developments in telecommunications, mobile, internet, broadband, digital TV and IPTV developments. Subjects include:
Researcher:- Paul Budde
Current publication date:- August 2012 (18th Edition)
Executive Summary
China outperformed all other major economies in 2011 although GDP growth slowed to 9%. The government vowed, in the 12th Five-Year Plan released in March 2011, to continue reforming the economy and emphasised the need to increase domestic consumption in order to make the economy less dependent on exports for GDP growth.
According to the International Monetary Fund, China’s share of worldwide GDP is to grow from 1.7% in 1991 to 11% in 2014. This highlights the massive change underway in China. Telecommunications is an important vehicle to drive through this radical shift in economic prosperity and culture.
China’s entire telecommunications market generated around US$160 billion in 2011. It is the second largest telecoms services market in Asia Pacific after Japan. The market is expected to increase at a compound annual growth rate of 8.8% between 2009 and 2014, reaching US$187 billion by 2014, surpassing Japan as the largest telecommunications market in Asia.
The market experienced a settling in period after the government initiated industry restructure in 2008. China Mobile is still the dominant player but the 3G space sees a more equitable distribution of market share. The mobile sector is still expanding at over 15% per annum and 3G services are starting to gain momentum supported by a more mature value chain. Confronted with a continuous decline in the fixed-line market, the government has again intervened to set aggressive targets for broadband services. China became the leading country in the number of Digital Subscriber Line (DSL) users in 2003 and by 2010 was the leading country in terms of FttX deployment.
There is rapid development of internet businesses in China as the digital economy takes shape. The pace of development has escalated as more and more of the population gain access to the internet. Chinese based online enterprises can target consumers like no western company has been able to do and numerous successful IPOs on the NYSE are testament to this. Internet users have exceeded the 550 million mark, increasingly accessing web sites via mobile phones.
China continues to build a substantial world-class telecommunications infrastructure and the investments show no sign of abating. As data traffic grows, the major operators are keeping pace by increasing both domestic and international connectivity through submarine and terrestrial cable links. The country also has high aspirations with its space program and has developed a local industry to develop, build and deploy communications satellites.
China is at the forefront of technology development, strongly supported by all levels of government. Amongst these initiatives are Cloud Computing and Smart Grid deployments and the building of Smart Cities that support the government’s climate change targets set out in the Twelfth Five Year Plan.
Market highlights:
China – Key performance indicators – 2010, 2012 (e)
Sector |
2010 |
2012 (e) |
Internet users (million) |
||
Internet |
457 |
590 |
Mobile internet |
233 |
400 |
Broadband subscribers (million) |
||
DSL |
100 |
120 |
Total |
126 |
180 |
Subscribers to telecoms services (million) |
||
Fixed-line telephone subscribers |
294 |
280 |
Mobile phones |
859 |
1,125 |
3G share of mobile base |
5.5% |
20.4% |
(Source: BuddeComm based on industry data and BuddeComm forecasts)
For those needing high level strategic analysis and objective analysis on China, this report is essential reading and gives further information on:
Related Reports
Monitor critical insights with our AI-powered Market Intelligence Platform gathering and analyzing intelligence in real time. With AI trained to spot emerging trends and detect new strategic opportunities, our clients use TMT Intelligence to accelerate their growth.
If you want to know more about it, please see:
BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.
For more details, please see:
More than 4,000 customers from 140 countries utilise BuddeComm Research
Are you interested in BuddeComm's Custom Research Service?
Have the latest telecommunications industry news delivered to your inbox by subscribing to BuddeComm's weekly newsletter.