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China - Telecoms, Mobile, Broadband and Forecasts

Publisher Name » BuddeComm
Published Date » 2012-08-15
No. Of Pages » 191

Accelerated investment in FttX and Wi-Fi as mobile data soars

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 had close to 1,300 million phone users by mid-2012, including mobile phones, fixed-line phones and PHS handsets. Mobile subscribers comprised over 80% of the total.
  • Non-voice revenue comprised over 40% of total industry revenue and value added services comprised over 25% of total industry revenue.
  • Internet access conditions improved in rural areas as more provinces and municipalities moved into the first echelon of internet development.
  • Broadband investments increased particularly with FttX infrastructure, driven by government initiatives.
  • Nascent IPTV growth was impacted by the government announcement of three-network integration trials of the country’s telecom, broadcast television and internet networks.
  • Mobile TV was introduced using the local China Multimedia Mobile Broadcasting (CMMB) mobile TV standard.
  • Large scale LTE trials continued even though 3G deployments still have to reach critical mass, and government statements that 4G operations will only be approved in 2014.
Table of Contents

1. Key Statistics

2. Telecommunications Market
2.1 Country Overview
2.1.1 Background
2.1.2 China’s economy
2.2 Telecommunications market progression
2.2.1 Background of China’s telecom market
2.2.2 China’s telecom market restructure in 2008
2.2.3 Overview of China’s telecom market – 2008-2011
2.3 Telecommunications market sectors
2.3.1 Fixed lines and mobiles
2.3.2 Internet and broadband

3. Regulatory Environment
3.1 Overview
3.2 Tenth Five-Year Plan (2000-2005)
3.3 Eleventh Five-Year Plan (2006-2010)
3.4 Twelfth Five-Year Plan (2011-2015)
3.5 E-government
3.5.1 Government e-commerce projects 
3.6 Ministry of Industry and Information Technology (MIIT)
3.6.1 Ministry of Information Industry (MII)
3.6.2 MII Expansion
3.6.3 Ministry of Industry and Information Technology (MIIT)
3.7 China Internet Network Information Centre
3.8 World Trade Organisation accession
3.9 Regulatory developments: 2010-2012
3.9.1 MiiT to draw foreign investment
3.9.2 Roaming and long-distance fees simplified
3.9.3 Draft Telecom Law review
3.9.4 Industry Standards updated
3.9.5 Internet information watchdog established

4. Major Operators
4.1 Overview of industry restructure
4.1.1 Restructuring of the telecommunications operators: 1993-2001
4.1.2 Industry restructure: 2002-2007
4.1.3 Drivers for business restructuring in China – 2007
4.1.4 Industry restructure – 2008
4.1.5 Newly formed entities – 2008
4.2 China Mobile Ltd (CML)
4.2.1 Company overview
4.2.2 Company background
4.2.3 China Mobile: Financial statistics
4.2.4 China Mobile: Operations statistics
4.3 China Telecom
4.3.1 Company overview
4.3.2 Company background
4.3.3 China Telecom: Financial statistics
4.3.4 China Telecom: Operations statistics
4.4 China Unicom
4.4.1 Company overview
4.4.2 Network capacity
4.4.3 Company background
4.4.4 China Unicom: Financial statistics
4.4.5 China Unicom: Operations statistics

5. Telecommunications Infrastructure
5.1 Infrastructure developments in China
5.2 International infrastructure
5.2.1 Terrestrial and submarine cable infrastructure
5.2.2 Satellite infrastructure
5.3 Internet networks
5.3.1 Backbone internet networks
5.3.2 International outlet bandwidth
5.3.3 Basic internet resources
5.3.4 IP Addresses
5.3.5 Domain names
5.3.6 Websites
5.3.7 Web pages
5.4 Television broadcasting
5.5 Cable TV
5.5.1 Background to cable systems
5.5.2 Cable TV market overview
5.5.3 Cable TV market statistics
5.6 Digital Cable TV
5.6.1 Digital Cable TV background
5.6.2 Digital Cable TV statistics
5.6.3 Digital Pay TV
5.6.4 Foreign ownership laws
5.6.5 Next Generation Broadcasting network
5.7 Satellite TV
5.7.1 Market overview
5.7.2 Regulatory issues
5.8 Digital terrestrial TV (DTTV)
5.8.1 Market overview
5.8.2 Government targets
5.9 Other infrastructure development
5.9.1 Climate change in China’s 12th five year plan
5.9.2 Smart cities
5.9.3 Forming a silicon delta in Guangdong, Hong Kong and Macau
5.9.4 Moving up the value chain
5.10 Smart grids
5.10.1 Smart grids – background
5.10.2 Electricity growth projections for China
5.10.3 Smart grids – China investments
5.10.4 State Grid Corporation
5.10.5 Smart grids – China policy
5.10.6 Smart grids – industry standardisation
5.10.7 Smart grids – Anhui Province
5.11 Cloud computing
5.11.1 Background
5.11.2 Market size
5.11.3 Cloud computing investments and deployments

6. Internet Market
6.1 Internet growth
6.1.1 Background
6.1.2 China internet user statistics

7. Broadband Market
7.1 Overview
7.2 Broadband statistics
7.2.1 Operator broadband subscribers
7.2.2 Broadband subscribers by access type
7.3 Broadband technologies
7.3.1 Overview
7.3.2 Cable modems
7.3.3 Digital subscriber line (DSL)
7.3.4 Fibre-to-the-home (FttH)
7.3.5 Forecast FttX subscribers – 2010-2017
7.4 Wireless broadband
7.4.1 Wireless local area networks (WLANs)
7.4.2 WiFi
7.4.3 World Interoperability for Microwave Access (WiMAX)
7.4.4 Multi-carrier Wireless Internet Local Loop (McWiLL)
7.4.5 Wireless Authentication and Privacy Infrastructure (WAPI)
7.5 IP telephony/Voice over Internet Protocol (VoIP)
7.5.1 Market overview
7.6 Broadband TV
7.6.1 Overview of media convergence
7.6.2 Triple play background
7.6.3 Regulatory developments on media convergence
7.6.4 Convergence trials
7.6.5 Three-network integration trials
7.6.6 Internet Protocol TV (IPTV)
7.6.7 Internet Protocol TV (IPTV) projects
7.6.8 Regulatory issues

8. Digital Media / Digital Economy
8.1 E-Services Overview
8.2 E-Commerce
8.2.1 E-Commerce background
8.2.2 E-Commerce progress
8.2.3 E-Commerce volumes
8.3 E-Entertainment
8.3.1 Online activities 2010
8.3.2 Online activities 2011
8.4 Information acquisition
8.4.1 Search engines
8.4.2 Web news
8.5 Commercial exchange
8.5.1 Online shopping
8.5.2 Group buying
8.5.3 Online payment
8.5.4 Travel ordering
8.5.5 Online banking
8.6 Web entertainment
8.6.1 Online gaming
8.6.2 Cyber literature
8.6.3 Online video
8.6.4 Online music
8.7 Exchange and communication
8.7.1 Instant Messaging (IM)
8.7.2 Blog
8.7.3 Microblogging
8.7.4 Social Networking websites
8.8 Digital Media
8.9 Online advertising and marketing

9. Mobile Communications
9.1 Overview of China’s mobile market
9.2 Mobile statistics
9.2.1 Mobile subscribers 1995-2012
9.2.2 Mobile subscribers by operator
9.2.3 Prepaid cards (SIM and PIM cards)
9.2.4 Mobile talk time
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
9.3.6 HSPA+
9.4 Third Generation (3G) mobile
9.4.1 Background
9.4.2 3G Licences
9.4.3 3G Investments
9.4.4 3G developments
9.4.5 3G statistics
9.5 3G technologies
9.5.1 TD-SCDMA
9.5.2 WCDMA
9.5.3 CDMA2000
9.6 Fourth Generation (4G) mobile
9.7 Mobile number portability (MNP)
9.8 Mobile data services
9.8.1 Short Message Service (SMS)
9.8.2 Wireless Application Protocol (WAP)
9.8.3 Multimedia Messaging Service (MMS)
9.8.4 Push-to-Talk (PTT)
9.8.5 M2M
9.9 Mobile TV
9.9.1 Overview
9.9.2 Market size
9.9.3 Mobile TV standards
9.9.4 Mobile TV developments
9.10 Mobile applications
9.10.1 Market overview
9.10.2 M-commerce
9.10.3 M-payment
9.10.4 Mobile gaming
9.10.5 Instant Message (IM) search services
9.10.6 Mobile music
9.10.7 Mobile internet

10. Forecasts
10.1 Forecast fixed-line subscribers – 2011-2017
10.2 Cable TV market forecasts – 2010-2015
10.3 Digital cable TV market forecasts – 2010-2015
10.4 Forecast internet users – 2012-2017
10.5 Forecast broadband subscribers – 2012-2017
10.6 Forecast: Mobile subscribers 2011-2013; 2017
10.6.1 Forecast: Total mobile subscribers 2011-2013; 2017
10.6.2 Forecast: 3G mobile subscribers
10.7 Forecasting methodology

11. Glossary of Abbreviations

List of Tables


Table 1 – Country statistics – 2012
Table 2 – Telecom revenue and investment statistics – 2011
Table 3 – Telephone network statistics – May 2012
Table 4 – Internet user statistics – May 2012
Table 5 – Broadband statistics – May 2012
Table 6 – Mobile statistics – May 2012
Table 7 – National telecommunications authorities
Table 8 – Percentage share of global GDP – 1991, 2014
Table 9 – China GDP growth – 2006 - 2015
Table 10 – Telecommunications investment in fixed assets – 2006 - 2010
Table 11 – Value added services telecom business revenue – 2006 - 2010
Table 12 – Fixed-line and mobile subscriptions and penetration rate – 1998 - 2013
Table 13 – Fixed-line local telephone calls – 2006 - 2010
Table 14 – Fixed-line traditional long-distance telephone calls – 2006 - 2010
Table 15 – China’s telephone subscribers fixed versus mobile overview – 1998 - 2012
Table 16 – Product ownership in households: 2005; 2009
Table 17 – China Mobile revenue, capex, EBITDA margin, net profit – 2000 - 2011
Table 18 – China Mobile data services revenue breakdown – 2010 - 2011
Table 19 – China Mobile wireless data revenue - 2010 - 2011
Table 20 – China Mobile capex – 2008 – 2014
Table 21 – China Mobile subscribers, annual change, ARPU and market share – 1997 – 2011
Table 22 – China Mobile voice usage – 2006 - 2011
Table 23 – China Mobile Advanced services usage – 2007 - 2010
Table 24 – China Mobile advanced services by subscription – 2008 - 2009
Table 25 – China Mobile advanced services by subscription – 2010
Table 26 – China Mobile wireless data traffic - 2010 - 2011
Table 27 – China Telecom financial data – 2001 - 2011
Table 28 – China Telecom revenue breakdown – 2010 - 2011
Table 29 – China Telecom wireline revenue breakdown – 2007 - 2010
Table 30 – China Telecom capex breakdown – 2008 - 2011
Table 31 – China Telecom fixed-line, PHS and broadband subscribers and ARPU – 2004 - 2011
Table 32 – China Telecom mobile and 3G subscribers and ARPU – 2002 - 2011
Table 33 – China Telecom key operational statistics – 2007 - 2011
Table 34 – China Unicom financial data – 2001 - 2011
Table 35 – China Unicom mobile and fixed-line service revenue structure – 2009 – 2011
Table 36 – China Unicom mobile and fixed-line voice and non-voice revenue – 2008 – 2011
Table 37 – China Unicom mobile service revenue 2G and 3G – 2009 - 2011
Table 38 – China Unicom capex breakdown – 2007 – 2012
Table 39 – China Unicom GSM mobile subscribers – 2002 - 2011
Table 40 – China Unicom key operating metrics – 2007 - 2011
Table 41 – China main indicators of telecommunications capacity – 2009 - 2011
Table 42 – China total international outlet bandwidth: 2006 - 2011
Table 43 – International outlet bandwidth for key networks – 2004 – 2011
Table 44 – IPv4 address resources in China and annual change – 2005 - 2011
Table 45 – Total domain names in China and annual change – 2005 - 2011
Table 46 – Classified domain names in China – 2009; 2011
Table 47 – Classified .cn domain names – 2009 - 2010
Table 48 – Growth of websites in China and annual change – 2002 – 2011
Table 49 – Growth of web pages in China and annual change – 2006 - 2011
Table 50 – Overview of cable TV market – December 2011
Table 51 – Cable TV subscriptions and annual growth – 1996 - 2013
Table 52 – Digital cable TV subscribers and penetration rate – 2002 - 2013
Table 53 – Digital pay TV subscribers – 2005 - 2009
Table 54 – Internet users and annual change – 1996 – 2013
Table 55 – Internet subscribers and annual change – 1996 - 2013
Table 56 – CNNIC internet statistical survey – 2009, 2011
Table 57 – Comparison in age structure of China internet users – 2008 – 2011
Table 58 – Broadband subscribers, annual change and penetration – 2000 - 2013
Table 59 – Broadband subscribers and households – May 2012
Table 60 – China Telecom broadband subscribers and annual change – 2003 - 2012
Table 61 – China Unicom broadband subscribers and annual change – 2003 - 2012
Table 62 – Broadband subscribers and growth by access type – May 2012
Table 63 – Cable modem internet subscribers and annual change – 2000 - 2010
Table 64 – DSL internet subscribers – 2000 - 2011
Table 65 – FttX subscribers – 2006 - 2012
Table 66 – Forecast FttX subscribers and penetration: 2010 - 2012, 2017
Table 67 – Growth in IP telephony in China – 2004 - 2011
Table 68 – Reception devices connected to main television set – 2008
Table 69 – IPTV subscribers – 2004 - 2013
Table 70 – Utilisation rate and number of users of different network applications in China – 2009 - 2011
Table 71 – Estimated value of B2C e-commerce market – 2005 - 2012
Table 72 – Estimated value of C2C e-commerce market – 2005 - 2012
Table 73 – Utilisation rate and number of users of different network applications in China – 2009 - 2011
Table 74 – China – top online companies by application with global comparison – 2011
Table 75 – Market share of online search engines – 2005 - 2010
Table 76 – Search engine users and utilisation rate in China – 2009 - 2011
Table 77 –Online search advertising market – actual: 2005 - 2014
Table 78 – China online retail market revenue and customers – 2003 - 2012
Table 79 – Online banking users and utilisation rate – 2007 – 2011
Table 80 – Online gaming revenues – 2004 - 2012
Table 81 – Online gamers users – 2007 - 2011
Table 82 – Online video users – 2007 – 2011
Table 83 – Online music users and utilisation rate – 2007 – 2011
Table 84 – Instant messaging users and utilisation rate – 2007 – 2011
Table 85 – China’s top 15 social networks – March 2011
Table 86 – China’s SNS market share and user loyalty – 2010
Table 87 – China media market revenue – 2002 - 2009
Table 88 – China advertising market revenues in major media – 2001, 2010, 2012 (e)
Table 89 – Mobile subscribers and annual change – 1995 - 2013
Table 90 – Mobile subscribers by operator and annual change – June 2012
Table 91 – Prepaid mobile subscribers by operator – September 2010
Table 92 – China Unicom postpaid versus prepaid mobile subscribers by network – 2004 - 2010
Table 93 – China Mobile postpaid versus prepaid mobile subscribers – 2004 - 2010
Table 94 – Mobile talk time – 2006 - 2011
Table 95 – Little Smart (PHS) subscribers – 2002 - 2012
Table 96 – China Telecom CDMA subscribers pre/postpaid, MOU and ARPU – 2002 - 2010
Table 97 – China Telecom CDMA network statistics – December 2010
Table 98 – HSPA+ and LTE downlink peak data rates
Table 99 – 3G subscribers in China – 2008 - 2013
Table 100 – China Mobile – TD-SCDMA datacard packages – May 2011
Table 101 – 3G usage fee comparison – April 2009
Table 102 – Mobile data revenues – top three countries – 2009
Table 103 – China Mobile mobile data service user growth – 2004 - 2010
Table 104 – China Mobile and China Unicom mobile VAS revenue – 2009
Table 105 – China Mobile and China Unicom mobile VAS revenue – 2010
Table 106 – China Mobile value-added business revenue breakdown – 2006 - 2010
Table 107 – Growth of text messages (SMS) in China and annual change – 2000 - 2011
Table 108 – China Mobile SMS usage volume and annual change – 2003 - 2011
Table 109 – Leading mobile value added services by subscribers and penetration - 2010
Table 110 – Mobile internet subscribers and annual change – 2006 - 2011
Table 111 – Mobile internet use in China – 2008 - 2010; USA and Japan – 2009
Table 112 – Mobile internet use among urban Chinese youth – 2008 - 2010; USA and Japan urban youth – 2009
Table 113 – China Mobile - mobile internet use – 2010 - 2011
Table 114 – Forecast fixed-line subscribers and penetration – lower band: 2012 - 2013; 2017
Table 115 – Forecast fixed-line subscribers and penetration – higher band: 2012 - 2013; 2017
Table 116 – Forecast cable TV subscribers and household penetration: 2012 - 2013; 2015
Table 117 – Forecast digital cable TV subscribers and percentage of cable TV subscribers: 2012 - 2013; 2015
Table 118 – Forecast internet users and penetration – lower band: 2011 - 2012; 2017
Table 119 – Forecast internet users and penetration – higher band: 2011 - 2012; 2017
Table 120 – Forecast broadband subscribers and population penetration – lower band: 2012 - 2013; 2017
Table 121 – Forecast broadband subscribers and household penetration – higher band: 2012 - 2013; 2017
Table 122 – Forecast mobile subscribers and penetration lower band forecast – 2012 - 2013; 2017
Table 123 – Forecast mobile subscribers and penetration higher band forecast – 2012 - 2013; 2017
Table 124 – Forecast 3G mobile subscribers and share of mobile market – 2012 - 2013, 2017

List of Figures


Chart 1 – China revenue breakdown fixed/mobile; voice/non-voice - 2011
Chart 2 – China revenue breakdown fixed/mobile; voice/non-voice – 2006 - 2010
Chart 3 – China fixed-line and mobile subscribers – 1998 - 2013
Chart 4 – Fixed-line local telephone calls – 2006 - 2011
Chart 5 – Fixed-line traditional long-distance telephone calls – 2006 - 2011
Chart 6 – Internet penetration rate of key countries – December 2011
Chart 7 – China Mobile revenue, capex, ARPU – 2000 - 2011
Chart 8 – China Telecom revenue, capex, broadband ARPU, mobile ARPU – 2004 - 2011
Chart 9 – China Unicom revenue, capex, mobile ARPU – 2002 - 2011
Chart 10 – China Unicom subscriber data – mobile, fixed-line, broadband – 2007 - 2011
Chart 11 – China total international outlet bandwidth – 2006 - 2011
Chart 12 – IPv4 address resources in China and annual change– 2006 - 2011
Chart 13 – Websites in China and annual change– 2002 - 2011
Chart 14 – Web pages in China and annual change– 2006 - 2011
Chart 15 –Cable TV subscribers and digital TV penetration – 1996 - 2011
Chart 16 – Number of internet users and growth rate in China – 2002 - 2013
Chart 17 – Comparison in age structure of China internet users – 2009, 2011
Chart 18 – China broadband subscribers and household penetration – 2002 - 2013
Chart 19 – China mobile subscriber growth, population penetration – 2000 - 2013
Chart 20 – China operator market share 2G vs 3G – June 2012
Chart 21 – Leading mobile value added services by subscribers and penetration – 2010
Chart 22 – China subscriber reasons for using the mobile internet
Chart 23 – China popular mobile internet applications – December 2011

Exhibit 1 – Map of China
Exhibit 2 – Telecommunications industry statistics – 2006 - 2007
Exhibit 3 – Restructuring of China’s telecommunications industry
Exhibit 4 – Telecommunications industry statistics from the MIIT – 2008 – 2011
Exhibit 5 – China’s agreed schedule for telecom liberalisation – 2002 - 2007
Exhibit 6 – Restructuring Scenario 1
Exhibit 7 – Restructuring Scenario 2
Exhibit 8 – Restructuring Scenario 3
Exhibit 9 – China Mobile Limited at a glance – December 2011
Exhibit 10 – China Telecom Corporation Ltd at a glance – December 2011
Exhibit 11 – China Unicom Ltd at a glance – December 2011
Exhibit 12 – Regional/international fibre optic cable networks
Exhibit 13 – Selected Chinese satellite service providers and satellites
Exhibit 14 – China Satcom satellite fleet
Exhibit 15 – Types of telecom convergence
Exhibit 16 – BesTV Corporation
Exhibit 17 – Jiangsu IPTV application
Exhibit 18 – Overview of ‘eye will’ 

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