Mobile Telecommunications in China: 3G brings more subscribers, higher value-added services

Share Article

With the development of more mobile phone functions and declining service charges, the number of mobile phone subscribers has been growing rapidly. In the five years through 2012, revenue from the Mobile Telecommunications industry in China has been increasing at an annualized rate of 10.4% to almost $119.0 billion. The building of China's 3G network has improved usage levels and mobile phone features, and provided more opportunities for telecommunication carriers. In the coming years, firms will develop more value-added and 3G mobile network services to increase average revenue per user, says IBISWorld.

IBISWorld Market Research

IBISWorld Market Research

Mobile service providers continue to gain market share from fixed-line telecommunication carriers, generating almost three-quarters of the revenue from China's entire telecommunications sector.

With the development of more mobile phone functions and declining service charges, the number of mobile phone subscribers, particularly those from the rural and migrant markets, has been growing rapidly. Services provided by this industry are increasingly replacing those provided by the Wired Telecommunication industry in China. In the five years through 2012, revenue from the Mobile Telecommunications industry in China has been increasing at an annualized rate of 10.4% to almost $119.0 billion, reports IBISWorld. It accounts for almost three-quarters of the revenue from China's entire telecommunications sector.

The Mobile Telecommunications industry in China operates as an oligopoly dominated by three carriers, China Mobile, China Unicom and China Telecom. In 2009, the three newly formed companies obtained third-generation (3G) mobile network licenses. The building of China's 3G network has improved usage levels and mobile phone features, and provided more opportunities for telecommunication carriers. Industry competition is expected to intensify with the growth of China Telecom, the newest major industry player, and bourgeoning 3G mobile network services businesses.

Although voice services remain the largest business segment in the industry, value-added services revenue is growing strongly. Many types of value-added services were developed over the past five years, such as short messaging service (SMS), multimedia messaging service (MMS), and color ring-back tone (CRBT). Due to market saturation, growth in mobile telecommunication subscriber numbers will slow in the coming years. Therefore, firms will develop more value-added and 3G mobile network services to increase average revenue per user, says IBISWorld.

For more information, visit IBISWorld’s Mobile Telecommunications in China industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Mobile Telecommunications industry in China comprises establishments that provide mobile telecommunication services, including mobile voice services and value-added services, such as short message service (SMS), multimedia messaging service (MMS), interactive voice response, Java-based mobile value-added services, binary runtime environment for wireless (BREW), and color ring-back tone services.

Industry Performance
Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle
Products & Markets
Supply Chain Products & Services Major Markets
Globalization & Trade
Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data Annual Change Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website