Where Chinese Telecoms Industry Goes Essay

1868 words - 8 pages

Executive Summary

Telecoms market of China is full of opportunities and challenges in 2010. After 3G licenses are issued, where are three big telecom providers going? All kinds of small amounts of electricity and comprehensive popularization of 3G cards will agitate the spark of splendid market in China.
This article will discuss the development especially three main carriers first. And then review the developing process of China inclining to technological development and marketing development. After that there will be a forecast for Chinese telecoms industry.

Executive Summary 1
Introduction 1
China telecoms industry development and three main carriers 2
Market and ...view middle of the document...

Although China does not have a long history of telecoms industry development, it can be cut into three steps clearly.
From 1980 to 1993 is deregulation period. In 1980, China telecom infrastructure and telecom service are in shortages, and the national PSTN capacity has only 435 million. To solve the problems, the government began to relax price oversight and implement telecommunications reform the management system. “The government approved post and telecommunications departments collecting the first install fee in June 1979”(T. Parks, C. Yuanzhe 2003). And then adopted some another actions such as financial support, derating tariff and accelerated depreciation policy etc.
From 1993 to 1998 is the price supervision period. In 1993, in order to break the telecom market exclusivity China introduced the second telecom carrier China Unicom produced by electronic ministry, electrical units, etc. “In 1994, the birth of China Unicom creates the history of Chinese telecommunications industry, which represents an important milestone of breaking Chinese telecom market exclusivity”(Becky P. Y. Loo 2004). And the government officially starts to regulate. Though ostensibly really breaks the market exclusivity, in the system of not separating government functions from enterprise management it is hard to produce real fair competition.
From 1998 to 2008 is the reform supervision institution and industrial recombination period. “In 1998 the Chinese government established Ministry of Information Industry (MII) which regulates telecommunications and related departments”(Ding Lu, Chee & Kong Wong 2003). MII becomes the new government regulator assisting the government implement management and no longer directly engaged in the telecom business. The partition of post and telecommunication determines that China telecom comes into an independent business telecom operator.
There are three main telecoms carriers in China.
China mobile has a number of mobile phone users based on which constructs TD-SCDMA 3G base stations. In early 2009 China mobile put forwards G3 advertising to lead 3G life. Emphasizing on integration platform of the network for existing 2G users, they need not change card not change number even not registered cases. And they can just simply easily be upgraded to dual-mode 3G mobile phone.
“Revenue for the 12 months ended Dec. 31, 2010, rose 7.3 percent to 485.2 billion Yuan.” (Owen Fletcher, Joanne Chiu & Dow Jones Newswires 2011). “China Mobile said in its annual results that the group's total customer base reached 584 million by the end of 2010. The number of 3G customers reached 20.7 million by the end of 2010, securing the group a leading position in the 3G market” (Xinhua, 2011).
China Unicom has the most mature 3G technology - WCDMA which will become the next phase of development foundation. In late April China Unicom advances the new 3G business brand called “WO” and plans to invest 13.9 billion dollars in offering 3G...

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