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Market Research Report

China - Telecoms, Mobile and Broadband - Statistics and Analyses

Published by BuddeComm Product code 204221
Published Content info 112 Pages
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China - Telecoms, Mobile and Broadband - Statistics and Analyses
Published: August 27, 2018 Content info: 112 Pages
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Description

This report provides a comprehensive overview of trends and developments in China's telecommunications market. The report analyses the telecoms Infrastructure, mobile, fixed broadband, digital media and digital economy sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Regional market comparisons
  • Telecoms Maturity Index
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU;
  • Mobile voice and data markets;
  • Broadband (FTTH, DSL);
  • Internet of Things, 5G developments
  • Mobile, broadband and mobile broadband forecasts to 2023.

Researcher:- Phil Harpur

Executive Summary

China to lead the world in 5G investments

As the Chinese market approaches saturation, there has been a shift of emphasis in China's broadband policy from infrastructure build-up and service provision to application creation and user demand stimulation.

China's fixed-line market is in decline due to voice to mobile substitution. Fixed line penetration has dropped significantly over the past five years. This trend is predicted to continue over the next five years to 2023 driven by the growing adoption of mobile broadband.

In early 2018 the Chinese government updated its list of 'sensitive sectors' for outbound investment, removing telecoms operations from the list.

China is projected to lead spending on Internet of Things technologies in the Asia Pacific, driven by the agriculture and healthcare sectors. China's government is aiming for universal and affordable broadband coverage through investment and competition as specified in policies.

Fixed broadband penetration in China has grown strongly over the past five years. Fibre broadband continues to be the fastest growing fixed broadband segment, as DSL and cable modem access will continue to decline as customers migrate away from these platforms in favour of fibre broadband. There was very strong growth in fibre connections from 2012 to 2017.

Within China one of the largest drivers of economic growth is its increasing urbanisation rate as rural residents move to cities in search of economic opportunities. Urban residents earn three times the income of rural residents in China.

Moderate growth is predicted over the next five years in the fixed broadband segment for the 2018 to 2023 time-period.

Much of the initial growth in China's digital economy was underpinned by the online demand for information, media and commerce, giving rise to China's three domestic digital economy giants; Baidu (search), Alibaba (e-commerce) and Tencent (social media). Also evolving within China's digital economy to meet the needs of China's online audience are the banking and financial services industry, public administration services, health services and education services. China has the world's largest e-commerce market and online retail sales are forecasted to grow strongly.

Although China boasts the largest mobile market in the world, there is still much room for growth given the focus on large scale mobile broadband investment.

Mobile subscriber growth is expected to be slower due to a saturated and mature market over the next five years to 2023. Operators will continue to focus on increasing ARPU in light of diminishing opportunities to acquire new subscribers and the need for operators to maximise monetization of 4G and 5G investments.

In the short term the need to adequately serve subscribers based on handset type influences the allocation of limited radio frequency resources between the three technology platforms. In the medium to long term the need to maximise revenue is driving strategies encouraging subscribers to migrate to higher paying 4G and 5G products based on mobile broadband.

Mobile broadband has seen very strong growth in China over the past five years. Proliferation of LTE and improving affordability of smartphones is driving growth both in mobile broadband subscribers as well as the amount of traffic used per subscriber. This strong growth is expected to continue over the next five years to 2023 but at an increasing slower growth rate due to a fast maturing market. The mobile broadband market will be driven by increasingly faster speeds offered by the mobile operators as they roll out their 4G and 5G networks and improving tariffs due to strong competition.

China has emerged as one of the most aggressive countries promoting 5G and is projected to become the world's largest 5G market by 2025, as networks are rolled out in urban areas and handset vendors integrate 5G chipsets into mobile devices. China is predicted to account for more than two-thirds of all 5G connections by 2025. The Chinese government is a major driving force behind the country's adoption of IoT with plans such as the "Made in China 2025" strategy. Government backing of 5G, artificial intelligence and data analytics is driving the rapid development of IoT in Greater China and the region is predicted to dominate "industrial IoT."

Key Developments

  • China's government strengthens IOT policies to boost economic growth.
  • China is projected to lead spending on Internet of Things technologies in the Asia Pacific
  • Fixed broadband penetration in China has grown strongly over the past five years.
  • Fibre has overtaken DSL to be the key fixed broadband technology platform.
  • China's massive online population allows a number of social media platforms to flourish.
  • China is projected to become the world's largest 5G market by 2025.
  • China is predicted to account for more than two-thirds of all 5G connections by 2025.
  • Mobile broadband has seen very strong growth in China over the past five years.

Key companies mentioned in this report:

China Mobile; China Telecom; China Unicom, Alibaba, JD.com, Baidu, Tencent, SINA, Weibo, Sohu, Xiaomi, Meilishuo, Mogujie, RenRen, Youku, Iqiyi/Qiyi, V.QQ.com, BesTV, Apple

Table of Contents

Table of Contents

1. Key statistics

2. Telecommunications market

  • 2.1 Market overview and analysis
  • 2.2 Regional Asian market comparison
  • 2.3 Historical overview
    • 2.3.1 China's telecom market - 1980s and 1990s
    • 2.3.2 China's telecom market - 2000 - 2007
    • 2.3.3 China's telecom market - 2008 - 2012

3. Regulatory environment

  • 3.1 Historic overview
  • 3.2 Regulatory authority
    • 3.2.1 Ministry of Industry and Information Technology (MIIT)
    • 3.2.2 China Internet Network Information Centre
  • 3.3 Government policies
    • 3.3.1 Private investment in state-controlled industries
    • 3.3.2 Broadband China
    • 3.3.3 Three-network Convergence Policy
    • 3.3.4 Internet Plus
    • 3.3.5 IOT / M2M
  • 3.4 Telecommunications Regulations
  • 3.5 Licensing
  • 3.6 Interconnect
    • 3.6.1 Local calls and domestic long-distance calls
    • 3.6.2 International long-distance calls
    • 3.6.3 Internet backbone networks
    • 3.6.4 SMS
    • 3.6.5 MMS
  • 3.7 Tariff Setting
  • 3.8 Universal Service Obligation
  • 3.9 Competition issues
    • 3.9.1 New Telecommunications Licenses

4. Fixed network operators

  • 4.1 Introduction
  • 4.2 China Telecom
  • 4.3 China Unicom
  • 4.4 China Mobile
  • 4.5 China Tower
  • 4.6 CITIC Networks

5. Telecommunications infrastructure

  • 5.1 Overview of the national telecom network
  • 5.2 International infrastructure (satellite, submarine)
    • 5.2.1 Terrestrial and submarine cable infrastructure
    • 5.2.2 Satellite infrastructure
  • 5.3 Data Centres
  • 5.4 IT Equipment Manufacturers
  • 5.5 Smart infrastructure
    • 5.5.1 IoT
    • 5.5.2 Smart grids
    • 5.5.3 Smart cities
    • 5.5.4 Connected homes
    • 5.5.5 Connected cars

6. Broadband market

  • 6.1 Market overview and analysis
  • 6.2 Broadband statistics and Forecast
    • 6.2.1 Operator broadband subscribers
  • 6.3 Government Broadband Policy and Plans
  • 6.4 Fibre-to-the-Premises (FttP) and Fibre-To-The-Home (FttH)
    • 6.4.1 Overview
    • 6.4.2 China Telecom
    • 6.4.3 China Unicom
    • 6.4.4 China Mobile
  • 6.5 Hybrid Fibre Coax (HFC) networks
  • 6.6 Digital Subscriber Line (DSL) networks
    • 6.6.1 Fixed wireless

7. Digital economy

  • 7.1 Introduction
  • 7.2 Online activities
  • 7.3 e-Commerce
    • 7.3.1 Alibaba
    • 7.3.2 JD.com
    • 7.3.3 China Unicom
  • 7.4 e-Banking
  • 7.5 e-payments
    • 7.5.1 e-Government
    • 7.5.2 e-Health
    • 7.5.3 e-Education

8. Digital media

  • 8.1 Introduction
  • 8.2 Regulation
  • 8.3 Key digital media players
    • 8.3.1 Baidu
    • 8.3.2 Tencent
    • 8.3.3 SINA
    • 8.3.4 Weibo
    • 8.3.5 Sohu
  • 8.4 Television broadcasting
  • 8.5 Internet Protocol TV (IPTV)
  • 8.6 Hybrid fibre coax cable (HFC)
  • 8.7 Video streaming
  • 8.8 Social media
  • 8.9 Online gaming and gambling

9. Mobile communications

  • 9.1 Market overview and analysis
  • 9.2 Mobile statistics
    • 9.2.1 Mobile Statistics and Forecast
    • 9.2.2 Mobile broadband
  • 9.3 Regulatory issues
    • 9.3.1 Licensing
    • 9.3.2 Mobile Number Portability (MNP)
    • 9.3.3 VAT Introduction
    • 9.3.4 Roaming Charges
  • 9.4 Mobile infrastructure
    • 9.4.1 Second Generation (2G) mobile
    • 9.4.2 Third Generation (3G) mobile
    • 9.4.3 Fourth Generation (4G) mobile
    • 9.4.4 Fifth Generation (5G) mobile
    • 9.4.5 Other infrastructure developments
    • 9.4.6 IoT and M2M networks
  • 9.5 Major mobile operators
    • 9.5.1 Operators
    • 9.5.2 China Mobile
    • 9.5.3 China Telecom
    • 9.5.4 China Unicom
    • 9.5.5 MVNOs
  • 9.6 Mobile content and applications
    • 9.6.1 Rich Communication Services (RCS)
    • 9.6.2 Mobile gaming
    • 9.6.3 m-commerce
    • 9.6.4 m-banking (payments/loans)
    • 9.6.5 Mobile Advertising
    • 9.6.6 m-TV
    • 9.6.7 Apps
  • Table 1 - Top Level Country Statistics and Telco Authorities - 2018 (e)
  • Table 2 - Historic - Telecom industry revenue and fixed asset investment
  • Table 3 - China Telecom financial data - 2001 - 2017
  • Table 4 - China Telecom revenue breakdown - 2009 - 2017
  • Table 5 - China Telecom fixed-line, fixed broadband subscribers and ARPU - 2004 - 2018
  • Table 6 - China Unicom financial data - 2001 - 2017
  • Table 7 - China Unicom - Fixed line Local access subscribers - 2008 - 2018
  • Table 8 - Fixed-lines and penetration rate - 1998 - 2018
  • Table 9 - Total international internet bandwidth - 2007 - 2018
  • Table 10 - Historic - International outlet bandwidth for key networks
  • Table 11 - Fixed Broadband Subscribers and Penetration (with Forecast) - 2003 - 2023
  • Table 12 - Internet users, penetration and annual change - 1996 - 2018
  • Table 13 - Urban and Rural Internet users - 2013 - 2017
  • Table 14 - Lit/Equipped International Bandwidth Capacity - 2013 - 2018
  • Table 15 - Proportion of Broadband Subscribers by Access Speed - 2013 - 2017
  • Table 16 - Average Download Speed of Fixed Broadband / 4G Network - 2014 - 2017
  • Table 17 - Internet access by Internet access device type - 2013 - 2017
  • Table 18 - Internet access locations for computers - 2013 - 2017
  • Table 19 - China Telecom - fixed broadband subscribers- 2003 - 2018
  • Table 20 - China Unicom - Fixed line Broadband subscribers - 2008 - 2018
  • Table 21 - China Mobile - Fixed Line Broadband subscribers - 2017 - 2018
  • Table 22 - Number of Broadband Access Ports, Proportion of FTTH Ports - 2010 - 2017
  • Table 23 - Number of Fibre Broadband Users - 2012 - 2017
  • Table 24 - China Telecom - FTTH Subscribers - 2013 - 2018
  • Table 25 - Historic - DSL internet subscribers - 2000 - 2014
  • Table 26 - Online shopping users and utilisation rate - 2009 - 2017
  • Table 27 - Usage rates of internet applications - 2012 - 2017
  • Table 28 - Historic - Cable TV subscriptions and annual growth - 1996 - 2016
  • Table 29 - Historic - Digital cable TV subscribers and penetration rate - 2002 - 2016
  • Table 30 - Usage rates of social networking applications - 2016 - 2017
  • Table 31 - Mobile Subscribers and Penetration (with Forecast) - 2003 - 2023
  • Table 32 - Historic - Mobile subscribers and annual change - 1995 - 2002
  • Table 33 - Mobile Broadband Subscribers and Penetration (with Forecast) - 2009 - 2023
  • Table 34 -- Mobile subscribers by operator - 2002 - 2018
  • Table 35 - Mobile subscriber market share by operator - 2002 - 2018
  • Table 36 - China Mobile revenue, capex, EBITDA margin, net profit - 2000 - 2017
  • Table 37 - CAPEX breakdown - 2017 - 2018
  • Table 38 - China Mobile ARPU - 1997 - 2017
  • Table 39 - China Mobile subscribers - 1997 - 2018
  • Table 40 - China Mobile - 3G and 4G subscribers - 2015 - 2018
  • Table 41 - China Telecom mobile and 3G/4G subscribers and ARPU - 2002 - 2018
  • Table 42 - China Unicom - 4G and total subscribers - 2014 - 2018
  • Table 43 - Historic - China Unicom 2G and 3G/4G subscribers - 2002 - 2015
  • Table 44 - China Unicom - ARPU- 2008 - 2018
  • Chart 1 - Asian Telecoms Maturity Index by Market Category
  • Chart 2 - Asian Telecoms Maturity Index vs GDP per Capita
  • Chart 3 - Telecoms Maturity Index - Northern Asia
  • Chart 4 - Fixed-line and penetration rate - 2007 - 2018
  • Chart 5 - Fixed Broadband Subscribers and Penetration (with Forecast) - 2008 - 2023
  • Chart 6 - Internet users and penetration - 2007 - 2018
  • Chart 7 - Mobile Subscribers and Penetration (with Forecast) - 2008 - 2023
  • Chart 8 - Mobile Broadband Subscribers and Penetration (with Forecast) - 2009 - 2023
  • Chart 9 - Mobile subscriber market share by operator - 2002 - 2018
  • Exhibit 1 - Key Market Characteristics by Market Segment
  • Exhibit 2 - Northern Asia - Key Characteristics of Telecoms Markets by Country
  • Exhibit 3 - Restructuring of China's telecommunications industry
  • Exhibit 4 - Regional/international fibre optic cable networks
  • Exhibit 5 - Selected Chinese satellite service providers and satellites
  • Exhibit 6 - China Satcom satellite fleet
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