Page 344 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
Information Technology, Miao Wei, said the new policy to 18 billion yuan. Operating revenues for the mobile
was not meant to wall off the country’s companies from and fixed-line service provider grew by 6.4 percent year-
outside competition. Yet he also conceded, without on-year to 352.3 billion yuan as service revenues rose
offering specifics, that the plan might need changes. 5.6 percent to 309.6 billion yuan. The company, which
“We never thought about closing ourselves and doing it is China’s third-largest mobile operator in subscriber
only at home, but I think we need some adjustments,” he terms, added 17 million mobile subscribers during
said. While China may want more local suppliers in some the year with the number of 4G subscribers rising by
sectors, Miao said in most industries “we still open up 63.4 million to 122 million. The company saw strong
and welcome foreign companies to China.” The Chinese growth in its 4G business as handset Internet data traffic
program plays into the increasing sensitivities over tripled. China Telecom said the monthly average data
global trade. Still, Western companies fear that the Made traffic per 4G customer “entered a GB [gigabyte] era”.
in China policy could be used to justify government Chairman Yang Jie was positive about the company’s
demands to hand over their latest technology as the 2017 outlook, as it is set to benefit from government
price of staying in the Chinese market. They also worry policies to promote technological development in
that government-backed investment funds and other China, such as Made in China 2025. He said current
resources could be used to acquire many Western telecommunications consumption shows considerable
companies with key technologies while subsidizing geographical differences. While the eastern part of China
their Chinese rivals (Bradsher). is enjoying the growth in advanced telecommunications
services, such as mobile telephones and Internet
Telecommunications access, many villages in the central and western parts
of China are still striving for basic telecommunications
The Chinese telecom market is the largest in the services. Such a wide digital gap will probably hinder
world in terms of subscribers and is undergoing the overall advancement of China’s telecommunications
transition. Mobile subscriptions outnumber fixed industry. The question of how to reduce the disparity of
voice connections and voice is giving way to data as telecommunications consumption has thus become a
the primary revenue generator. Three operators— critical challenge for China (Woodhouse).
China Telecom, China Unicom and China Mobile—
serve China’s telecom market. All three are integrated Growing competition in mainland China’s fixed-
providers of telecom services although China Mobile line broadband market could see the “Big Three”
is the largest in the crucial mobile market. China’s telecommunications network operators overtake the
fixed-line market is in decline due to voice mobile mainland cable companies in the competitive online
substitution although the two main fixed-line operators video distribution segment.While the central government
of China Telecom and China Unicom have aggressively opened the way for domestic telecommunications
deployed and marketed fiber broadband to increase network operators and television broadcast service
the value of maintaining a fixed-line. Fixed-line providers to directly compete in each other’s turf in 2016,
penetration has dropped significantly over the past the cable companies have only made small inroads in the
five years. This trend is predicted to continue over the low end of the fixed-line broadband market. At the end of
next five years to 2022 driven by the growing adoption 2015, domestic cable operators only had 18 million fixed-
of mobile broadband. China’s telecommunications line broadband subscribers, or 8.6 percent, of the total
development has generally been driven by investments market. There were 258 million total fixed-line broadband
from government-allied entities. However, the Chinese subscribers, most of which are customers of China
government has chosen a minimal intervention Telecom, China Unicom or China Mobile. That advantage
approach in broadband development. Although some by the country’s three main telecommunications is
government funding is spent on universal service, a expected to result in increased gains for them in the
major strategy of the Chinese government has been to so-called Internet protocol television market segment,
create a competitive market structure by restructuring where subscribers view online video stream through
the telecommunications sector. a set-top box. China Telecom, China Unicom and China
Mobile could generate a combined 37 billion yuan in
China Telecom reported a 10 percent fall in profit in Internet Protocol Television (IPTV) revenue by 2025 on
2016 as expected as the state-owned Chinese telecoms 85 percent penetration of their fixed-line broadband
company doubled its total 4G subscribers. Net profit fell customer base. “Cable operators are relatively small and
344
Information Technology, Miao Wei, said the new policy to 18 billion yuan. Operating revenues for the mobile
was not meant to wall off the country’s companies from and fixed-line service provider grew by 6.4 percent year-
outside competition. Yet he also conceded, without on-year to 352.3 billion yuan as service revenues rose
offering specifics, that the plan might need changes. 5.6 percent to 309.6 billion yuan. The company, which
“We never thought about closing ourselves and doing it is China’s third-largest mobile operator in subscriber
only at home, but I think we need some adjustments,” he terms, added 17 million mobile subscribers during
said. While China may want more local suppliers in some the year with the number of 4G subscribers rising by
sectors, Miao said in most industries “we still open up 63.4 million to 122 million. The company saw strong
and welcome foreign companies to China.” The Chinese growth in its 4G business as handset Internet data traffic
program plays into the increasing sensitivities over tripled. China Telecom said the monthly average data
global trade. Still, Western companies fear that the Made traffic per 4G customer “entered a GB [gigabyte] era”.
in China policy could be used to justify government Chairman Yang Jie was positive about the company’s
demands to hand over their latest technology as the 2017 outlook, as it is set to benefit from government
price of staying in the Chinese market. They also worry policies to promote technological development in
that government-backed investment funds and other China, such as Made in China 2025. He said current
resources could be used to acquire many Western telecommunications consumption shows considerable
companies with key technologies while subsidizing geographical differences. While the eastern part of China
their Chinese rivals (Bradsher). is enjoying the growth in advanced telecommunications
services, such as mobile telephones and Internet
Telecommunications access, many villages in the central and western parts
of China are still striving for basic telecommunications
The Chinese telecom market is the largest in the services. Such a wide digital gap will probably hinder
world in terms of subscribers and is undergoing the overall advancement of China’s telecommunications
transition. Mobile subscriptions outnumber fixed industry. The question of how to reduce the disparity of
voice connections and voice is giving way to data as telecommunications consumption has thus become a
the primary revenue generator. Three operators— critical challenge for China (Woodhouse).
China Telecom, China Unicom and China Mobile—
serve China’s telecom market. All three are integrated Growing competition in mainland China’s fixed-
providers of telecom services although China Mobile line broadband market could see the “Big Three”
is the largest in the crucial mobile market. China’s telecommunications network operators overtake the
fixed-line market is in decline due to voice mobile mainland cable companies in the competitive online
substitution although the two main fixed-line operators video distribution segment.While the central government
of China Telecom and China Unicom have aggressively opened the way for domestic telecommunications
deployed and marketed fiber broadband to increase network operators and television broadcast service
the value of maintaining a fixed-line. Fixed-line providers to directly compete in each other’s turf in 2016,
penetration has dropped significantly over the past the cable companies have only made small inroads in the
five years. This trend is predicted to continue over the low end of the fixed-line broadband market. At the end of
next five years to 2022 driven by the growing adoption 2015, domestic cable operators only had 18 million fixed-
of mobile broadband. China’s telecommunications line broadband subscribers, or 8.6 percent, of the total
development has generally been driven by investments market. There were 258 million total fixed-line broadband
from government-allied entities. However, the Chinese subscribers, most of which are customers of China
government has chosen a minimal intervention Telecom, China Unicom or China Mobile. That advantage
approach in broadband development. Although some by the country’s three main telecommunications is
government funding is spent on universal service, a expected to result in increased gains for them in the
major strategy of the Chinese government has been to so-called Internet protocol television market segment,
create a competitive market structure by restructuring where subscribers view online video stream through
the telecommunications sector. a set-top box. China Telecom, China Unicom and China
Mobile could generate a combined 37 billion yuan in
China Telecom reported a 10 percent fall in profit in Internet Protocol Television (IPTV) revenue by 2025 on
2016 as expected as the state-owned Chinese telecoms 85 percent penetration of their fixed-line broadband
company doubled its total 4G subscribers. Net profit fell customer base. “Cable operators are relatively small and
344
