China Telecommunications Report Q2 2010

Executive Summary ....................................................7
SWOT Analysis............................................................8
China Wireline (Fixed-Line and Broadband) Business Environment SWOT ..................... 8
China Mobile Business Environment SWOT..................................................................... 9
China Political SWOT ................ 10
China Economic SWOT .............. 11
China Business Environment SWOT............................................................................... 12
Business Environment Rankings .............................13
Asia.................................................. 13
Table: Asia Telecoms Business Environment Rankings .................................................. 16
China ............................................... 17
Industry Forecast Scenario .......................................19
Mobile.............................................. 19
Table: China Telecoms Sector – Mobiles – Historical Data & Forecasts ....................... 19
ARPU............................................... 21
Table: China Telecoms Sector – ARPU – Historical Data & Forecasts (CNY) ............... 21
Fixed Line........................................ 23
Table: China Telecoms Sector – Fixed Lines – Historical Data & Forecasts.................. 23
Internet ............................................ 25
Table: China Telecoms Sector – Internet – Historical Data & Forecasts........................ 25
Market Data Analysis ................................................27
Mobile Market ................................. 27
Table: China Mobile Market, December 2009................................................................ 27
Table: China Mobile Net Additions, Q409...................................................................... 28
Subscriber Mix............................ 29
ARPU & MOU............................ 30
Table: China ARPU Levels, 2008-Q309 ......................................................................... 30
3G............................................... 31
Mobile Contract Wins...................... 34
Table: Mobile Contract Wins, 2009................................................................................ 34
Mobile Content ................................ 35
Regional Outlook........................ 35
Table: Asia Mobile VAS Market By Service, 2009 (US$bn)............................................ 35
Country Outlook .............................. 36
Overview..................................... 36
Table: China Mobile VAS Revenues (CNYbn) ................................................................ 36
Mobile Broadband...................... 38
Mobile TV................................... 39
Value-Added Services Timeline............................................................................................ 40
Table: Selected VAS Services Launched, 2008-2009 ...................................................... 40
Regional Mobile Markets................. 41
East China .................................. 41
Table: East China Regional Mobile Markets – No. Of Mobile Subscribers (mn)............. 41
Guangdong ................................. 42
Zhejiang...................................... 42
Shanghai ..................................... 42
Beijing ........................................ 43
West China....................................... 45
West China Regional Mobile Markets – No. Of Mobile Subscribers (mn) ....................... 45
Sichuan ....................................... 46
Chongqing .................................. 46
Central China .................................. 47
Central China Regional Mobile Market – No. Of Mobile Subscribers (mn) .................... 47
Hubei .......................................... 48
Mobile Operator Data ..................... 49
China Mobile .............................. 49
China Unicom............................. 51
Fixed Line........................................ 53
Table: China Local Access Market, 2009 ....................................................................... 53
Regional Fixed-Line Markets............................................................................................... 54
East China .................................. 55
East China Regional Fixed-Line Markets – No. Of Fixed-Line Subscribers (mn)............ 55
Central China ............................. 57
Central China Regional Fixed-Line Market – No. Of Fixed-Line Subscribers (mn) ........ 57
West China.................................. 58
West China Regional Fixed-Line Markets – No. Of Fixed-Line Subscribers (mn)........... 58
Broadband ....................................... 60
China Telecom............................ 60
China Unicom............................. 61
Broadband Content..................... 62
China's Internet Application – No. Of Users (H109 Vs FY08)........................................ 62
WiMAX ....................................... 63
Regulatory Environment...........................................65
China: Regulatory Bodies And Their Responsibilities .................................................... 66
Regulatory Developments ............................................................................................... 70
Competitive Landscape............................................72
Competitor Analysis Tables ................................................................................................. 72
Table: Key Players – China Telecoms Market................................................................ 72
Table: Selected Operators – Revenue Growth, 2002-2008 ............................................. 72
Company Monitor......................................................73
Nokia Q309 Net Sales And Operating Profit By Division (EURmn) ................................ 73
Nokia Handset Device Sales By Geography (mn units)................................................... 74
Nokia Major Developments Across Asia (2009) ............................................................. 75
Nokia Siemens Networks Sales By Region (EURmn) ...................................................... 76
Selected Profiles – Operators .............................................................................................. 77
China Telecom............................ 77
China Mobile (Hong Kong) ............................................................................................ 83
China Unicom............................. 88
Country Snapshot: China Demographic Data.........93
Table: Demographic Indicators, 2005-2030................................................................... 93
Table: Rural/Urban Breakdown, 2005-2030 .................................................................. 94
Section 2: Education And Healthcare............................................................................. 94
Table: Education, 2002-2005 ......................................................................................... 94
Table: Vital Statistics, 2005-2030................................................................................... 94
Section 3: Labour Market And Spending Power ............................................................. 95
Table: Employment Indicators, 2001-2006..................................................................... 95
Table: Consumer Expenditure, 2000-2012 (US$) ........................................................... 95
Glossary Of Terms ....................................................96
Table: Glossary Of Terms............................................................................................... 96
Methodology ......................................................97
How We Generate Our Industry Forecasts ..................................................................... 97
Table: Key Indicators For Telecommunications Industry Forecasts................................ 97
Telecoms Business Environment Ratings........................................................................ 98
Table: Weighting Of Indicators ...................................................................................... 99
Table: Ratings Indicators ............................................................................................. 100
Sources ..................................... 100