2013 China - Telecoms, Mobile, Broadband and Forecasts

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:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, net profit, EBITDA, subscribers, ARPU;
  • Internet, VoIP, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV, mobile);
  • Smart cities;
  • Cloud computing;
  • Smart grids;
  • Forecasts for internet users, fixed-line, mobile, 3G, broadband subscribers to 2018.

Researcher:- Peter Evans
Current publication date:- August 2013 (19th Edition

Executive Summary

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.

Market highlights:

  • 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
    • 2.1 Background
    • 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
    • 4.1 Overview
    • 4.2 Eleventh Five-Year Plan (2006-2010)
    • 4.3 Twelfth Five-Year Plan (2011-2015)
    • 4.4 E-government
      • 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
      • 6.3.5 Websites
      • 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
    • 8.1 Overview
    • 8.2 Broadband statistics
      • 8.2.1 Operator broadband subscribers
      • 8.2.2 Broadband subscribers by access type
    • 8.3 Broadband technologies
      • 8.3.1 Overview
      • 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)
      • 9.3.2 GSM
      • 9.3.3 General Packet Radio Service (GPRS)
      • 9.3.4 Enhanced Data for GSM Evolution (EDGE)
      • 9.3.5 CDMA
    • 9.4 Third Generation (3G) mobile
      • 9.4.1 Background
      • 9.4.2 3G Investments
    • 9.5 Fourth Generation (4G) mobile
    • 9.6 Mobile Services
      • 9.6.1 Short Message Service (SMS)
      • 9.6.2 M2M
      • 9.6.3 Mobile applications
      • 9.6.4 Mobile internet
  • 10. Forecasts
    • 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
      • Table 12 – Fixed-line local telephone calls – 2006 - 2012
      • Table 13 – Fixed-line traditional long-distance telephone calls – 2006 - 2012
      • Table 14 – Growth in IP telephony in China – 2004 - 2012
      • Table 15 – China’s telephone subscribers fixed versus mobile overview – 1998 - 2013
      • Table 16 – Product ownership in households: 2005; 2009
      • Table 17 – China Mobile revenue, capex, EBITDA margin, net profit – 2000 - 2013
      • Table 18 – China Mobile data services revenue breakdown – 2010 – 2013
      • Table 19 – China Mobile wireless data revenue – 2010 – 2013
      • Table 20 – China Mobile capex – 2008 – 2013
      • Table 21 – China Mobile subscribers, annual change, ARPU and market share – 1997 – 2013
      • Table 22 – China Mobile voice usage – 2006 – 2013
      • Table 23 – China Mobile Advanced services revenue – 2011 – 2012
      • Table 24 – China Mobile wireless data traffic – 2010 – 2013
      • Table 25 – China Telecom financial data – 2001 - 2012
      • Table 26 – China Telecom revenue breakdown – 2010 - 2012
      • Table 27 – China Telecom wireline revenue breakdown – 2007 - 2012
      • Table 28 – China Telecom capex breakdown – 2008 - 2012
      • Table 29 – China Telecom fixed-line, PHS and broadband subscribers and ARPU – 2004 - 2013
      • Table 30 – China Telecom mobile and 3G subscribers and ARPU – 2002 – 2013
      • Table 31 – China Telecom key operational statistics – 2007 - 2012
      • Table 32 – China Unicom financial data – 2001 - 2012
      • Table 33 – China Unicom mobile and fixed-line service revenue structure – 2009 – 2012
      • Table 34 – China Unicom mobile and fixed-line voice and non-voice revenue – 2008 – 2012
      • Table 35 – China Unicom mobile service revenue 2G and 3G – 2009 - 2012
      • Table 36 – China Unicom capex breakdown – 2007 – 2012
      • Table 37 – China Unicom GSM mobile subscribers – 2002 - 2012
      • Table 38 – China Unicom key operating metrics – 2007 - 2012
      • Table 39 – China main indicators of telecommunications capacity – June 2013
      • Table 40 – China total international outlet bandwidth: 2006 - 2012
      • Table 41 – International outlet bandwidth for key networks – 2004 – 2012
      • Table 42 – IPv4 address resources in China and annual change – 2005 – 2012
      • Table 43 – IPv6 address resources in China and annual change – 2009 – 2012
      • Table 44 – Total domain names in China and annual change – 2005 - 2012
      • Table 45 – Classified domain names in China – 2009; 2012
      • Table 46 – Classified .cn domain names – 2009; 2012
      • Table 47 – Growth of websites in China and annual change – 2002 – 2012
      • Table 48 – Growth of web pages in China and annual change – 2006 - 2012
      • Table 49 – Overview of cable TV market – December 2012
      • Table 50 – Cable TV subscriptions and annual growth – 1996 - 2014
      • Table 51 – Digital cable TV subscribers and penetration rate – 2002 - 2015
      • Table 52 – Internet users and annual change – 1996 – 2014
      • Table 53 – Internet subscribers (fixed-line) and annual change – 1996 - 2014
      • Table 54 – Comparison in age structure of China internet users – 2008 – 2012
      • Table 55 – CNNIC internet statistical survey – 2009, 2011, 2012
      • Table 56 – China – top online companies by application with global comparison – 2011
      • Table 57 – Utilisation rate and number of users of different network applications in China – 2009; 2011; 2012
      • Table 58 – Market share of online search engines – 2005 – 2010; 2012
      • Table 59 – Search engine users and utilisation rate in China – 2009 - 2012
      • Table 60 – Online banking users and utilisation rate – 2007 – 2012
      • Table 61 – Online video users – 2007 – 2012
      • Table 62 – Online music users and utilisation rate – 2007 – 2012
      • Table 63 – Instant messaging users and utilisation rate – 2007 – 2012
      • Table 64 – Online gaming revenues – 2004 - 2012
      • Table 65 – Online gamers users – 2007 – 2012
      • Table 66 – China’s top 15 social networks – March 2011
      • Table 67 – China’s SNS market share and user loyalty – 2010
      • Table 68 – Broadband subscribers, annual change and penetration – 2000 - 2014
      • Table 69 – Broadband subscribers and households – June 2013
      • Table 70 – China Telecom broadband subscribers and annual change – 2003 - 2012
      • Table 71 – China Unicom broadband subscribers and annual change – 2003 - 2012
      • Table 72 – Broadband subscribers and growth by access type – June 2013
      • Table 73 – Cable modem internet subscribers and annual change – 2000 - 2010
      • Table 74 – DSL internet subscribers – 2000 - 2013
      • Table 75 – FttX subscribers – 2006 - 2013
      • Table 76 – Reception devices connected to main television set – 2011
      • Table 77 – IPTV subscribers – 2004 – 2013; 2014
      • Table 78 – Mobile subscribers and annual change – 1995 - 2014
      • Table 79 – Mobile subscribers by operator and annual change – December 2012
      • Table 80 – Little Smart (PHS) subscribers – 2002 - 2012
      • Table 81 – China Telecom CDMA subscribers pre/postpaid, MOU and ARPU – 2002 - 2012
      • Table 82 – 3G subscribers in China – 2008 - 2013
      • Table 83 – Growth of text messages (SMS) in China and annual change – 2000 - 2012
      • Table 84 – China Mobile SMS usage volume and annual change – 2003 - 2012
      • Table 85 – Leading mobile value added services by subscribers and penetration - 2012
      • Table 86 – Mobile internet subscribers and annual change – 2006 - 2013
      • Table 87 – China Mobile - mobile internet use – 2010 - 2013
      • Table 88 – Forecast fixed-line subscribers and penetration – lower band: 2013 - 2014; 2018
      • Table 89 – Forecast fixed-line subscribers and penetration – higher band: 2013 - 2014; 2018
      • Table 90 – Forecast internet users and penetration – lower band: 2013 - 2014; 2018
      • Table 91 – Forecast internet users and penetration – higher band: 2013 - 2014; 2018
      • Table 92 – Forecast broadband subscribers and population penetration – lower band: 2013 - 2014; 2018
      • Table 93 – Forecast broadband subscribers and household penetration – higher band: 2013 - 2014; 2018
      • Table 94 – Forecast mobile subscribers and penetration lower band forecast – 2013 - 2014; 2018
      • Table 95 – Forecast mobile subscribers and penetration higher band forecast – 2013 - 2014; 2018
      • Table 96 – Forecast 3G mobile subscribers and share of mobile market – 2013 - 2014, 2018
      • Chart 1 – China revenue breakdown fixed/mobile; voice/non-voice - 2012
      • Chart 2 – China fixed-line and mobile subscribers – 1998 - 2014
      • Chart 3 – Fixed-line local telephone calls – 2006 - 2012
      • Chart 4 – Fixed-line traditional long-distance telephone calls – 2006 - 2012
      • Chart 5 – Internet penetration rate of key countries – June 2012
      • Chart 6 – China Mobile revenue, capex, ARPU – 2000 – 2012
      • Chart 7 – China Telecom revenue, capex, broadband ARPU, mobile ARPU – 2004 - 2012
      • Chart 8 – China Unicom revenue, capex, mobile ARPU – 2002 - 2012
      • Chart 9 – China Unicom subscriber data – mobile, fixed-line, broadband – 2007 - 2012
      • Chart 10 – China total international outlet bandwidth – 2006 - 2012
      • Chart 11 – IPv4 address resources in China and annual change– 2006 - 2012
      • Chart 12 – Websites in China and annual change– 2002 - 2012
      • Chart 13 – Web pages in China and annual change– 2006 - 2012
      • Chart 14 –Cable TV subscribers and digital TV penetration – 1996 - 2014
      • Chart 15 – Number of internet users and growth rate in China – 2002 - 2014
      • Chart 16 – Comparison in age structure of China internet users – 2009, 2012
      • Chart 17 – China broadband subscribers and household penetration – 2002 - 2014
      • Chart 18 – China mobile subscriber growth, population penetration – 2000 - 2014
      • Chart 19 – China operator market share 2G vs 3G – December 2012
      • Chart 20 – Leading mobile value added services by subscribers and penetration – 2012
      • Chart 21 – China popular mobile internet applications – December 2011
      • Exhibit 1 – Map of China
      • Exhibit 2 – Restructuring of China’s telecommunications industry
      • Exhibit 3 – China Mobile Limited at a glance – December 2012
      • Exhibit 4 – China Telecom Corporation Ltd at a glance – December 2012
      • Exhibit 5 – China Unicom Ltd at a glance – December 2012
      • Exhibit 6 – Regional/international fibre optic cable networks: Augusy 2013
      • Exhibit 7 – Selected Chinese satellite service providers and satellites
      • Exhibit 8 – China Satcom satellite fleet
      • Exhibit 9 – Types of telecom convergence

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