2013 China - Telecoms, Mobile, Broadband and Forecasts
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:
Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Major players, revenues, net profit, EBITDA, subscribers, ARPU;
Internet, VoIP, IPTV;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, mobile);
Forecasts for internet users, fixed-line, mobile, 3G, broadband subscribers to 2018.
Researcher:- Peter Evans Current publication date:- August 2013 (19th Edition
Accelerated investment in FttX as 3G impacts traffic growth
The government vowed, in the 12th Five-Year Plan, 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 under 2% in 1991 to 11% in 2014. This highlights the massive change underway in China. Telecommunications is an important vehicle to drive through this shift in economic prosperity.
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 10% 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.
China had close to 1,500 million phone users by mid-2013, including mobile phones, fixed-line phones and PHS handsets. Mobile subscribers comprised over 80% of the total.
Non-voice revenue comprised over 50% of total industry revenue and value added services comprised over 25% of total industry revenue.
Broadband investments increased particularly with FttX infrastructure, driven by government initiatives.
IPTV growth was impacted by the government announcement of three-network integration trials of the country’s telecom, broadcast television and internet networks, and showed signs of acceleration into 2013.
Large scale LTE trials continued even though 3G deployments still only account for 25% of all mobile subscriptions after four years. The government appears committed to only approve 4G commercial operations in 2014.
For those needing high level strategic analysis and objective analysis on China, this report is essential reading and gives further information on:
Aims by the government to broadcast all TV programs in digital format by 2010 and complete cable TV digitisation by 2015.
State Grid Corporation’s goal of building out a Smart Grid by 2020 as part of the country’s US$100 billion investments in Smart Grids.
China’s Twelfth 5 year plan targeting seven priority industries with the aim of increasing their GDP contributions from 2% of GDP to 8% by 2016 and supported by a budget allocation of RMB 10 trillion (US$1.52 trillion) over the five year period.
A noticeable shift to instant messaging, blogging and microblogging and increased use of the internet for currency transactions.
Data in this report is the latest available at the time of preparation and may not be for the current year
Table of Contents
1. Key Statistics
2. Country Overview
2.2 China’s economy
3. Telecommunications Market
3.1 Background of China’s telecom market
3.1.1 Background of China’s telecom market – 1980s and 1990s
3.1.2 Background of China’s telecom market – 2000-2007
3.1.3 China’s telecom market restructure in 2008
3.2 Overview of China’s telecom market – 2008-2012
3.2.1 Revenue breakdown: 2011 - 2012
3.3 Telecommunications market sectors
3.3.1 Fixed lines and mobiles
3.3.2 Internet and broadband
4. Regulatory Environment
4.2 Eleventh Five-Year Plan (2006-2010)
4.3 Twelfth Five-Year Plan (2011-2015)
4.4.1 Government e-commerce projects
4.5 Ministry of Industry and Information Technology (MIIT)
4.5.1 Ministry of Information Industry (MII)
4.5.2 MII Expansion
4.5.3 Ministry of Industry and Information Technology (MIIT)
4.6 China Internet Network Information Centre
4.7 Regulatory developments: 2013
4.7.1 MiiT to draw foreign investment
5. Major Operators
5.1 China Mobile Ltd (CML)
5.1.1 Company overview
5.1.2 China Mobile: Financial statistics
5.1.3 China Mobile: Operations statistics
5.2 China Telecom
5.2.1 Company overview
5.2.2 China Telecom: Financial statistics
5.2.3 China Telecom: Operations statistics
5.3 China Unicom
5.3.1 Company overview
5.3.2 China Unicom: Financial statistics
5.3.3 China Unicom: Operations statistics
6. Telecommunications Infrastructure
6.1 Infrastructure developments in China
6.2 International infrastructure
6.2.1 Terrestrial and submarine cable infrastructure
6.2.2 Satellite infrastructure
6.3 Internet networks
6.3.1 Backbone internet networks
6.3.2 International outlet bandwidth
6.3.3 IP Addresses
6.3.4 Domain names
6.3.6 Web pages
6.4 Television broadcasting
6.5 Cable TV
6.5.1 Cable TV market overview
6.5.2 Digital Cable TV
6.5.3 Next Generation Broadcasting network
6.6 Satellite TV
6.7 Other infrastructure development
6.7.1 Smart cities
6.7.2 Forming a silicon delta in Guangdong, Hong Kong and Macau
6.8 Smart grids
6.8.1 Electricity growth projections for China
6.8.2 Smart grids – China investments
6.8.3 State Grid Corporation
6.9 Cloud computing
7. Internet Market
7.1 Internet growth
7.1.1 China internet statistics
7.1.2 CNNIC statistical survey
7.2 Online activities
7.2.1 Online gaming
7.2.2 Social Networking websites
8. Broadband Market
8.2 Broadband statistics
8.2.1 Operator broadband subscribers
8.2.2 Broadband subscribers by access type
8.3 Broadband technologies
8.3.2 Cable modems
8.3.3 Digital subscriber line (DSL)
8.3.4 Fibre-to-the-home (FttH)
8.4 Broadband TV
8.4.1 Overview of media convergence
8.4.2 Three-network integration trials
8.4.3 Internet Protocol TV (IPTV)
9. Mobile Communications
9.1 Overview of China’s mobile market
9.2 Mobile statistics
9.2.1 Mobile subscribers 1995-2014
9.2.2 Mobile subscribers by operator
9.3 Mobile technologies
9.3.1 PAS/PHS (Little Smart/Xiaolingtong)
9.3.3 General Packet Radio Service (GPRS)
9.3.4 Enhanced Data for GSM Evolution (EDGE)
9.4 Third Generation (3G) mobile
9.4.2 3G Investments
9.5 Fourth Generation (4G) mobile
9.6 Mobile Services
9.6.1 Short Message Service (SMS)
9.6.3 Mobile applications
9.6.4 Mobile internet
10.1 Forecast fixed-line subscribers – 2013-2018
10.2 Forecast internet users – 2013-2018
10.3 Forecast broadband subscribers – 2013-2018
10.4 Forecast: Mobile subscribers 2013-2014; 2018
10.4.1 Forecast: Total mobile subscribers 2013-2014; 2018
10.4.2 Forecast: 3G mobile subscribers
Table 1 – Country statistics – 2013
Table 2 – Telecom revenue and investment statistics – 2012
Table 3 – Telephone network statistics – June 2013
Table 4 – Internet user statistics – June 2013
Table 5 – Broadband statistics – June 2013
Table 6 – Mobile statistics – June 2013
Table 7 – National telecommunications authorities
Table 8 – Percentage share of global GDP – 1991, 2014
Table 9 – China GDP growth – 2006 - 2015
Table 10 – Telecom industry revenue and fixed asset investment – 2006 - 2012
Table 11 – Fixed-line and mobile subscriptions and penetration rate – 1998 - 2014
As you know, I have resigned from the Labor Ministry and have decided not to re-contest the seat of Charlton at the next election – both for personal reasons.
Before leaving Parliament, I particularly wish to record my thanks to you for your generous and constructive participation in the deliberations that generated significant economic policy reforms for the Australian community. Continuous economic transformation is a key challenge that faces all Governments.
The development of sound public policy should always be contestable. Ultimately, good and equitable outcomes are not concessions to any particular interest group, but the careful balancing of interests to create the greatest possible benefit for the nation. You have contributed to that, and I sincerely thank you for it.
Greg Combet, Former Minister for Climate Change, Industry and Innovation