Telecoms Market Trends and Developments in China
China has built a substantial nation-wide telecommunications infrastructure. Telecoms market trends and developments in China have led to Fibre optic cable networks criss-crossing the country. More cable is being laid as broadband growth continues to escalate into 2004. Based on a government policy to find cost-effective communication solutions, China has become the world's biggest user of Voice over Internet Protocol (VoIP) services.
China is also the largest mobile communications market in the world. Although sales declined in early 2003 due to the SARS outbreak, the Chinese telecoms market has rebounded. By October 2003, the number of mobile subscribers surpassed the number of fixed-line subscribers. As it entered 2004, China had around 265 million mobile subscribers, or about 20 for every 100 people, nearly double the penetration rate from 2001. The remarkable growth in the mobile sector has been boosted by increased competition, lower terminal prices and the rapid rise of prepaid services. Even more competition came with the popularity of the Personal Access System (PAS) known as Little Smart, a fixed-line service with limited roaming that began in rural regions but has since entered the urban areas.
China is the fastest growing Internet market in Asia, overtaking Japan as the world's second largest Web population after the US in 2002. By early 2004 telecoms market trends indicated the number of Internet subscribers in China had grown to 80 million. The government remains well aware of the enormous social and economic value of Internet and its importance in creating a prosperous nation. At the same time, however, it is concerned by the perceived risk to cultural heritage and to political stability.
Telecoms market trends show China is also emerging as a broadband superpower, showing strong growth into 2004 and ending the year 2003 with over 12 million broadband subscribers, though penetration remains comparatively low, meaning there is still much room for growth. Wi-Fi is also starting to appear in the market, though local regulations are upsetting foreign technologies companies.
Paul Budde - Managing Director, Paul Budde Communication
Published by Totel www.totel.com.au
Date: Aug 27, 2004
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