China’s communications market powers on to 2008

For immediate release

For more information go to budde.com.au

China’s communications market powers on in run-up to 2008 Beijing Olympics

Sydney, May 28, 2007 – China’s communications market is rocketing ahead, recording enormous growth in its mobile, broadband and new media sectors, according to a new BuddeComm study.

Investment, the sheer size of China’s population and innovation are driving the expansion. Last year, China’s telecommunications market racked up revenues of about US$80 billion, which was 20 percent of the overall Asian market.

In 2007 Telecoms, Mobile and Broadband in China, BuddeComm found China’s most dynamic sector, mobile communications, is growing at close to 20 percent a year, with the country on track to chalk up 600 million mobile customers by the end of 2008.

Already the superpower can boast to have the world’s biggest mobile subscriber base, which passed 450 million earlier this year and is forecast to grow beyond 520 million by year’s end. And these figures don’t include China’s 90 million users of its limited mobility services – known as Little Smart.

In addition, its biggest operator, China Mobile, is also the world’s largest with well over 300 million subscribers, and is growing at more than 20 percent. That works out to an extra 5 million subscribers a month.

While China still awaits the government to issue 3G licences services, when it does, the mobiles market will receive yet another boost, the study reports.

It is anticipated 3G licences will be awarded later this year or early in 2008 in time to showcase a 3G service at the Beijing Olympics. Although international suppliers, manufacturers and operators have grown increasingly anxious at China’s dithering in issuing licences.

China has been innovative in developing its own 3G standard. Datang Mobile has led the way with the world’s first TD-SCDMA 3G end-to-end systems solutions, combining base stations and handsets.

Of course this hasn’t stopped China looking beyond 3G. It was reported to have launched the world’s first 4G mobile standard. Labelled Future Project, the 4G trial was rolled out in Shanghai at a cost of 150 million yuan (US$19.3 million) and designed to allow data transmission at up to 100Mb/s.

The dizzying pace of growth isn’t confined to China’s mobile industry. The country’s rapid growth in broadband subscribers has it on track to overtake the US, which clings to the number one position. China, however, already has more DSL subscribers than the US.

2007 Telecoms, Mobile and Broadband in China reports the number of broadband subscribers will tip 69 million by the end of the year. Some industry estimates put subscriber numbers at 139 million by end of the decade. Last year, China’s broadband market shot up almost 40 percent.

“(Broadband) growth can be expected on the back of a booming economy, rising incomes, expanding PC penetration as well as new technologies such as VoIP and IPTV and events such as the Olympic Games,” the study says.

“The emergence of VoIP in the market was set to boost wireless broadband, enabling operators to see returns on their wireless local area networks (and) the deployment of IPTV services was also expected to boost broadband penetration.”

Convergence and the rise of digital media is another area expected to experience explosive growth as new media markets develop.

Already, wherever you look, digital media is there, with gigantic floating HDTV plasma screens, and flat screens, some multimedia, in everyday places such as lifts, cabs and at major roads intersections.

Importantly, operators such as China Telecom and China Unicom are building broadband networks capable of supporting voice, video and data traffic for web access, internet telephony, distance learning, TV broadcasting and e-commerce.

These developments have enabled China to look at the unified provision of TV/video, telephony and internet services, known as “triple play”. About 100 million households in China receive cable TV, the largest network in the world, with a number of schemes aimed at providing fully interactive services including high-speed internet access and IP telephony via cable modem.

There are also a number of projects looking at the delivery of IPTV, China Telecom and
Shanghai Broadcasting Cooperation’s digital media arm, BesTV, leading the way.
Shanghai Telecom (branded iTV) is the largest provider of IPTV with 150,000 users, Heilongjiang Telecom, next with 100,000 subscribers, and the other eight, together, 50,000 users.

Cost of 2007 Telecoms, Mobile and Broadband in Asia report China is US$995.00 (excl GST) for a PDF with a single user licence. Prices available on request for multi user licence and hardcopy.

For detailed information, table of contents and pricing see:
www.budde.com.au/publications/annual/asia/china.html

About BuddeComm
BuddeComm is an independent global telecommunications research and consultancy company, specialising in new media, with 45 researchers spread across 15 countries. The company publishes more than 70 research reports each year analysing global communications markets, trends and business opportunities.

PAUL BUDDE Communication Pty Ltd,
T/As BuddeComm
http://www.budde.com.au

© Scoop Media