Business Monitor International


China Telecommunications Report

Published 16 May 2014

  • 120 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
China Telecommunications Report

BMI View : The Chinese telecommunications industry is the biggest in the world in terms of size and growth potential, with the 1.2bn mobile subscriptions representing only a penetration rate of 89.0%. There are substantial growth opportunities in rural regions, where markets are still untapped, and the arrival of 19 MVNO operators should catalyse competition for these lower value subscribers. In 2014, the key growth drivers for the Chinese mobile sector are expected to come from mobile VAS and 4G services. The Chinese government pledged to support develop ment of China's e-commerce sector and the introduction of 4G services in 2014 should mark the transition into a high - speed mobile era , which should drive mobile VAS . The 'Broadband China' strategy roadmap , unveiled in 2013 , should also boost broadband coverage and speed in urban and rural regions . There is however , downside to this bullish outlook due to the heavy investment burden in the telecoms industry, a capability that could weaken if the broader economy deteriorates.

Key Data

  • The latest data from operators show the mobile market continued to expand in 2013, with total subscriptions increasing to 1.233bn at YE13.

  • The decline in fixed-line subscriptions accelerated in 2013, with the total number falling 4% to a low of 267mn at YE13.

  • Fixed broadband still has strong growth momentum, with total subscriptions up 7.8% in 2013 to 188.9mn at YE13.

Key Trends And Developments

Regulatory developments of great significance for the mobile market occurred in late 2013 and early 2014. The licensing of MVNOs took place in December 2013 and January 2014, a development BMI expects to catalyse subscription growth as new players target underserved rural and low income consumer groups. MVNO licences were awarded to 19 operators, including Suzhou Snail Digital Technology, Love Strickland, Changjian Times Communications, 35 Internet, Telling and Alibaba Group.

At the high end of the...

Table of Contents

BMI Industry View
7
SWOT
9
Mobile SWOT
9
Wireline SWOT
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (2011-2018)
16
Wireline
19
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (China 2011-2018)
19
Fixed Line
20
Broadband
20
Industry Risk Reward Ratings
23
Table: Asia Pacific Telecoms Risk/Reward Ratings - Q3 2014
26
Market Overview
28
Mobile
28
Regional Perspective
28
Table: China's Mobile Market Regional Comparison, 2013
29
Key Developments
29
Market Growth
30
Market Shares
31
Usage
33
Table: China's Operator ARPUs, 2012 And 2013 (CNY)
33
MVNOs
35
Networks
36
Table: Companies' 4G Strategies
39
Mobile Content
40
Table: Selected VAS Developments
41
Regional Mobile Markets
42
East China
42
Table: East China Regional Mobile Markets
46
Central China
47
Table: Central China Regional Mobile Markets
48
West China
48
Table: West China Regional Mobile Markets
50
Mobile Operator Data
51
Table: China's Mobile Market Overview
51
Table: China Mobile
52
Table: China Unicom
53
Table: China Telecom
54
Asia Pacific Mobile Content
56
Tablets Are The New TV
57
Table: Percentage Of Long-Form Video Views By Device
60
Infrastructure Is A Key Enabler
60
Wireline
62
Key Developments
62
Fixed-Line
62
Broadband
64
Broadband Content
70
Table: China's Internet Application Users
71
Industry Trends And Developments
72
Table: Market Developments
76
Regulatory Development
78
Table: China Regulatory Bodies And Their Responsibilities
79
Competitive Landscape
83
Table: China Telecoms Market Key Players
83
Table: Selected China Telecoms Operator Revenue, 2006-2013 (USDmn)
83
Company Profile
84
China Telecom
84
China Mobile
91
China Unicom
98
Regional Overview
103
Industry Trend Analysis
103
Table: Strategies Of Asian Top Chat Apps
104
Demographic Forecast
109
Table: China's Population By Age Group, 1990-2020 ('000)
110
Table: China's Population By Age Group, 1990-2020 (% of total)
111
Table: China's Key Population Ratios, 1990-2020
112
Table: China's Rural And Urban Population, 1990-2020
112
Glossary
113
Table: Glossary Of Terms
113
Methodology
115
Industry Forecast Methodology
115
Sources
116
Risk/Reward Ratings Methodology
117
Table: Risk/Reward Ratings Indicators
118
Table: Weighting Of Indicators
119

The China Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of China's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's China Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in China.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for China to test other views - a key input for successful budgeting and strategic business planning in the Chinese telecoms market.
  • Target business opportunities and risks in China's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in China.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
  • Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:

  • Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
  • Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
  • Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc