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1、CONTENTS Error! No text of specified style in document. January 2012 | 1-800-330-3772 | IBISWorld Industry Report 6012 Mobile Telecommunications in China January 2012 About This Industry . 2 Industry Definition 2 Main Activities . 2 Similar Industries . 2 Additional Resources . 3 Industry Performa
2、nce 4 Executive Summary . 4 Key External Drivers 4 Current Performance . 5 Industry Outlook 7 Industry Life Cycle . 9 Products (2) China Mobile merged with China Tietong, a traditional fixed-line telecommunications service carrier; (3) China Unicom merged WWW.IBISWORLD.COM.CN Mobile Telecommunicatio
3、ns in China January 2012 6 with China Netcom, a major broadband communications and fixed-line telecommunications operator in China. After the restructuring process, in 2009, the three newly formed companies obtained 3G licenses, based on the TD-SCDMA standard, WCDMA standard and CDMA2000 standard re
4、spectively. Enterprises and industry wages ACMR-IBISWorld estimates that there will be 1,425 enterprises operating within in the Mobile Telecommunication Services industry in China in 2011, with annualized growth of 6.4% in the past five years. The three carriers all have extensive operations in all
5、 the provinces, autonomous regions and municipalities across the country. Some service providers have exited the industry due to an inability to adopt to rapid technology changes, while new firms are entering the industry with new types of value- added services. Employment levels and total industry
6、wages also increased in these years, with annualized growth rates of 9.3% and 11.6%, respectively, in the five years to 2011. Sales staff and technical staff make up the largest and second-largest segments within the employment structure, respectively. WWW.IBISWORLD.COM.CN Mobile Telecommunications
7、in China January 2012 7 Industry Outlook The Mobile Telecommunication Services industry in China is expected to continue to develop steadily in the five years to 2016. However, due to future market saturation levels, growth in mobile telecommunication subscriber numbers will slow in the outlook peri
8、od. ACMR-IBISWorld estimates that industry revenue will increase at an annualized growth rate of 6.1% in the five years to 2016. Industry profitability is expected to remain high in the next five years, despite slower growth rates and lower pricing levels. Profits as a proportion of industry revenue
9、 are forecast to decline from 28.6% in 2011 to around 25% by the end of 2016 as increased competition and new rival technologies reduce industry profit levels. This market will continue to develop and expand in the future as competition between the Mobile Communication Services industry and the Wire
10、d Telecommunication Services industry intensifies, with the trend of mobile phones replacing fixed-line phones continuing. Also, mobile phone manufacturers have been expanding into rural markets, which benefits service providers. Further, the building of Chinas 3G network has improved usage levels a
11、nd mobile phone features, which will provide more opportunities for telecommunication carriers and benefit this industry as a whole. China Mobile and China Unicom will remain the main companies in this industry in future years, not only due to their expanding network coverage, but also because they
12、have pursued the building of the more advanced 3G network, which can support more value-added services. The restructuring of the industry has led to the entry of China Telecom as a major competitor, which also obtained a 3G license and will compete for a larger market share. China Mobile has also ad
13、justed the percentage rate for the distribution of value-added service sales with service providers, from a 15% and 85% split, to a 45% and 55% share. The new policy has been carried out in Shandong and Guangxi province. The market for service providers is expected to decline with lower prices, caus
14、ing increased industry concentration levels. More small service providers will exit the industry in the future due to lower profits. With technology developments, many new companies that supply value-added services will enter the industry, and new types of value added services will be constantly dev
15、eloped. The market share of value- added services is expected to increase. The share has reached around 30% and the usage level of value- added services of Chinese telecommunication users is very high at over 90%. Penetration has increased in the market due to growth in television and radio advertis
16、ing, and more information provided by telecommunications offices. WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 8 WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 9 Industry Life Cycle This industry is in the growth stage of its life cycle. Life Cycle Stage
17、 This industry in China has a relatively short development history Industry revenue and value added have increased rapidly in recent years New technologies are constantly being applied in the industry Chinas Mobile Telecommunication Services industry was first started in 1987 when China introduced T
18、ACS standards. The first mobile communication system was set up and used for commerce purposes in Guangzhou. Therefore, this industry has developed in China for barely two decades and is still growing strongly. In the five years to 2011, mobile phone subscriber numbers and industry revenue are expec
19、ted to increase at annualized rates of 14.7% and 12.0%, respectively. Industry value added is expected to increase at an annualized rate of 12.1% in the same period, higher than Chinas average GDP growth rate around 11.0%. Although the basic telecommunications sector operates as an oligopoly, the co
20、mpetition level has intensified, and new services have been constantly launched in this industry. Chinas telecommunication sector reforms introduced China Telecom as a new competitor in the industry. With the development of 3G, the network will be able to support more value-added services. The voice
21、 service segment remains as the main segment in this industry, while value added services have seen sharp rises in recent years. The value added service segment will continue to grow and account for a larger share within this industry in future years. WWW.IBISWORLD.COM.CN Mobile Telecommunications i
22、n China January 2012 10 Products (2) Virtual Private Mobile Networks, which are used for internal communications; (3) free call-in services for all users including mobile phone subscribers; and (4) Enterprise Short Message System, through which the carriers can connect inter-office systems, customer
23、 service systems, ERP systems and others to collect and distribute corporate operational data through short messages. International Trade Exports in this industry are low and steady. Imports in this industry are low and steady. Imports and exports are not applicable to this industry. WWW.IBISWORLD.C
24、OM.CN Mobile Telecommunications in China January 2012 15 Business Locations Region Percentage East China 37.6 Middle South China 30.4 North China 13.2 South West China 7.1 North East China 6.1 North West China 5.6 Region Percentage East China 31.1 Middle South China 29.1 North China 13.5 South West
25、China 10.9 North East China 8.5 North West China 6.9 WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 16 Mobile networks have covered most parts of China. In line with the economic development level and population size, this industry is concentrated in East China, Middle South Ch
26、ina and North China, with 82% of establishments located in these regions. Guangdong in Middle South China is the largest user of mobile telecommunication services in China. The total number of subscribers totaled 96.2 million in 2010, and is expected to top 100 million in 2011, accounting for 13.1%
27、of total subscribers in China. The mobile phone penetration rate of Guangdong Province is nearly 100%, higher than the national average level. Guangdong is one of the largest mobile phone production bases in China and where most value-added service suppliers are located. East China ranks second in t
28、erms of industry revenue, accounting for 32% of total industry revenue. Shandong, Zhejiang and Jiangsu represent a respective 7.2%, 6.4%, and 6.2% of total subscribers in China. Strong economic performance in East China led to rapid growth in demand for mobile telecommunications services. The remain
29、ing subscribers are relatively evenly spread across other regions in China in accordance with economic performance, population size and competition from wired telecommunications services. WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 17 Competitive Landscape Market Share Conce
30、ntration The level of industry concentration is high. The Mobile Telecommunication Services industry in China operates as an oligopoly. Chinas mobile communications market is dominated by three carriers: China Mobile, China Unicom and China Telecom, which make up a joint market share of nearly 95%.
31、These three companies employ more than 70% of employees in the industry and have subsidiaries or branches in virtually every city in China. Other firms are mainly value-added service providers, 90% of which are small and medium enterprises. Their revenue accounts for about 5% of the whole value-adde
32、d service business. Industry competition is expected to intensify in the future, especially with the entry of China Telecom and bourgeoning 3G businesses. China Mobile and China Unicom will continue strengthening their positions in the market, while China Telecom will develop its own business to com
33、pete for market share. The three companies adopted new policies to standardize and influence the value-added service market. Key Success Factors The key success factors in the Mobile Telecommunications industry are: Having a loyal customer base If a company has more loyal customers, the development
34、of the company will be steadier, and the launching for new services will be easier. Establishment of brand names In China, China Mobile and China Unicom have several brands which are developed in different places and provide different services. This makes the products more specialized, professional,
35、 fashionable and easily accepted. Must have a license It is compulsory for a company that wants to provide mobile telecommunication services to be issued with a license from the government. Ability to provide goods/services in diverse locations The company that covers more areas and provides good se
36、rvices in these areas will get more market share. Undertaking technical research and development The development of technologies will give a company more advantages over the competition. Development of new products The value added services have continued increasing strongly in China in recent years.
37、 New services will also attract more users. WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 18 Cost Structure Benchmarks Purchases 25.7% Depreciation 16.5% Commission 9.8% Wages 4.9% Advertising 3.3% Management and Administration 2.9% Rent 1.9% Research and Development 1.8% Util
38、ities 1.5% Other 3.1% Profit 28.6% Industry profit is forecast to account for 28.6% of total revenue in 2011. Although average charge rates continued to decline in recent years, the number of users and profit levels for value-added services increased. The Mobile Telecommunication Services industry i
39、n China is characterized by its high level of purchases or investments in network building and upgrades, the development of new services and technologies, and supporting systems. These purchases are expected to account for 25.7% of industry revenue in 2011, as the three major companies constantly in
40、vested in network building and upgrading, especially for 3G equipment. Depreciation is forecast to make up 16.5% of total industry revenue in 2011, which is higher than most other industries in China. With the growing number of users for mobile telecommunication services and constantly developed new
41、 services, the working load of equipment remained at a high level. This type of equipment also needs to be maintained and upgraded constantly. Industry wages are expected to account for 4.9% of industry revenue in 2011. Rapid development of the industry requires more employees and the individual wag
42、es level continued increasing in China. Management, administration and R (2) It shall have a feasibility study and technical plan regarding network formulation; (3) It shall have funds and specialized personnel commensurate with its proposed business activities; (4) It shall have a site and the corr
43、esponding resources to carry out its operations; (5) It shall have the reputation for, or be capable of, providing long-term services to its subscribers; and other conditions as stipulated by the State. The government has implemented protectionist policies for the mobile telecommunication service ca
44、rriers. Although foreign investors have been permitted to participate in this industry since 2001, there are some conditions for them to satisfy. According to the negotiation agreement for entering the WTO, the Chinese government has opened mobile telecommunication services to foreign investors, but
45、 holding shares in basic telecommunication firms should be less than 49% from 2004, while shares of the value added service sector should be less than 50%. WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 32 Key Statistics Industry Data Revenue IVA Establish- ments Enterprises Em
46、ploy- ment Exports Imports Wages Assets Number of Mobile Phone Users (Million Units) 2002 30,498.1 17,523.7 1,452 631 141,615 - - 1,250.5 94,670.6 206 2003 41,344.8 22,796.3 1,800 720 163,604 - - 1,612.4 96,787.0 269 2004 45,843.4 30,668.2 2,316 828 179,987 - - 1,925.4 101,657.5 335 2005 53,076.7 34
47、,991.4 2,954 936 196,642 - - 2,441.6 107,707.7 393 2006 60,580.6 39,859.1 3,345 1,045 228,921 - - 3,029.0 121,478.0 461 2007 68,626.4 44,184.9 3,846 1,226 253,193 - - 3,329.0 138,058.0 547 2008 78,024.3 50,702.9 4,154 1,264 287,713 - - 3,820.2 148,212.6 641 2009 91,349.2 60,456.5 4,569 1,327 319,705
48、 - - 4,462.7 175,243.6 747 2010 98,583.4 64,932.8 4,844 1,380 339,207 - - 4,891.7 192,438.9 859 2011 106,667.2 70,452.1 5,084 1,425 356,846 - - 5,237.3 206,510.7 914 2012 114,240.6 75,876.9 5,310 1,459 372,190 - - 5,562.1 219,678.5 962 2013 121,666.3 81,491.8 5,530 1,487 385,961 - - 5,871.6 231,837.
49、1 1,008 2014 128,966.2 87,196.2 5,700 1,510 397,926 - - 6,179.3 243,491.2 1,051 2015 136,188.3 92,864.0 5,850 1,530 408,272 - - 6,477.2 254,078.2 1,092 2016 143,270.1 98,528.7 5,964 1,550 418,071 - - 6,753.1 264,131.9 1,127 WWW.IBISWORLD.COM.CN Mobile Telecommunications in China January 2012 33 Annual Change Revenue (%) IVA (%) Establish- ments (%) Enterprises (%) Employ- ment (%) Exports (%) Imports (%) Wages (%) Assets (%) Mobile Phone Users (%) 2003 35.6 30.1 24.0 14.1 15.5 N/C N/C 28.9 2.2 30.4 2004 10