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Report Expects Chinas Telecom Service Revenue Growth to Pick up Slightly In 2010 to 8.7%, Mostly As A Result Of Rising Adoption of Fixed and Mobile Data Plans
(M2 PressWIRE Via Acquire Media NewsEdge) Dublin - Research and Markets(http://www.researchandmarkets.com/research/2882d1/china_with_the_in) has announced the addition of the "China: With the Industry Restructure Completed, the Real Battle Begins" report to their offering.
By 2011, China will overtake Japan to become Asia's largest fiber market, with 25.9 million fiber access lines in service at year-end 2011, versus Japan's 25.2 million, according to a new report.
China: With the Industry Restructure Completed, the Real Battle Begins offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from our research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.
In our last Country Intelligence Report for China, we projected that the Chinese market would overtake the Japanese market by 2011, but the strengthening of the Japanese yen against the U.S. dollar means that the event will be delayed two years, to 2013, when China's $168.1 billion in service revenue generated surpasses Japan's $166.8 billion, notes Daniel Yu, Senior Analyst at Pyramid Research. "However, China will overtake Japan to become Asia's largest fiber market by 2011, with 25.9 million fiber access lines in service at year-end 2011, versus Japan's 25.2 million," he adds.
One of the main drivers behind the rapid rise in fiber is a strong commitment from the government to deploy the technology. "Migration to higher speed, and thus higher-priced, fiber-optic connections, will ensure continued growth in China's fixed service revenue," Yu says. "The industry as a whole expects to spend $22 billion over the next three years deploying a fiber network, increasing total ports from 20 million to 80 million."
China's networks follow predominantly the FTTB/N configuration in metro areas and newly developed multi-dwelling units rather than the more costly FTTH configuration. FTTx service is still considered expensive, however. "As demand for high-speed access increases, economies of scale for both the equipment and the CPE costs will increase the affordability of the service," Yu explains. "FTTx will see its share of total broadband accounts rise from 14.8 percent at year-end 2010 to 30.9 percent at year-end 2015; we also expect broadband net additions to top 19 million in 2010 and climb to 24 million by 2015 as fiber technology gains acceptance in the market."
Executive Summary:
After several years of double-digit growth, Chinas telecom services market experienced a more modest 8.4% growth rate in 2009. The drop suggests that China is not immune to the effects of the global economic crisis, market maturation trends and the impact of rising competition on ARPS levels. Pyramid Research expects service revenue growth to pick up slightly in 2010, to 8.7%, mostly as a result of rising adoption of fixed and mobile data plans. Mobile data, the second-largest revenue generator after mobile voice, will see service revenues increase at a CAGR of 14.0% between 2010 and 2015, from $20.8bn to $49.4bn.
Broadband Internet service revenue will grow at a CAGR of 12.0% during the same period, and by 2012 it will eclipse fixed circuit-switched voice to become the largest revenue generator in the fixed market. Although VoIP will have the highest CAGR from 2010 to 2015, its market size is limited to 2% of the entire telecom services market. Total fixed circuit-switched revenue continues to decline due to fixed-to-mobile substitution. We expect this trend to continue throughout the forecast period. Even when operators try to stem substitution through bundling and discounts, the convenience and the affordability of mobile devices make them a preferred option for Chinese consumers.
Key Topics Covered:
- Executive Summary- Market and Competitor Overview- China in a regional context- Economic, demographic and political context- Regulatory environment- Demand profile- Service evolution- Competitive landscape- Major market players- Segment analysis- Mobile services- Fixed services- Pay-TV- Convergence- Identifying OpportunitiesFor more information visit http://www.researchandmarkets.com/research/2882d1/china_with_the_in
Source: Pyramid Research, Inc.
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