Research Report on Mergers and Service Development of Chinese Telecommunications Industry, 2009
During 2001 to 2002, in order to break monopoly in the fixed telecommunications field, having been separated the mobile services, China Telecom was divided into the north and south part. In May, 2005, newly reformed China Telecom and China Netcom were established officially. The telecommunications companies in ten provinces, including Beijing, Tianjin, Hebei, Shanxi and Inner Mongolia of North China, Liaoning, Jilin and Heilongjiang of Northeast China, Henan and Shandong, belonged to the north part of China Telecom. Others belonged to the south part of China Telecom.
China Netcom Group Corporation (Hong Kong) Limited was merged by the north part of China Telecom together with China Netcom and Jitong Network Communications Company Limited.
The south part of China Telecom maintained the name, possessing the name of China Telecom and the intangible assets. Chinese telecommunications market was gradually formed the competition patterns with the basic telecommunications companies of China Telecom, China Netcom, China Mobile, china Unicom, China Satcom and China Tietong.
During the long development process, China Mobile Limited had been the giant of Chinese mobile communications industry. In 2008, the service revenues of China Mobile Limited reached to 412.3 billion Yuan (58.9 USD), up by 15.5% of 2007, realizing the annual net profits of 112.8 billion Yuan, up by 29.6% of 2007. Calculation by the users, China Mobile Limited had been the largest operator of Chinese mobile communications. By the end of December, 2008, the users of China Mobile Limited were 457.3 billion, up by 23.8% of 2007, the revenues and profits of China Mobile Limited exceeding the total sum of China Telecom and China Unicom.
By the end of May, 2008, the prelude of the fourth reform of Chinese telecommunications industry was officially started. The CDMA internet merged by China Telecom, China Tietong entry China Mobile, the integration of China Unicom and China Netcom, represented that Chinese telecommunications industry had entered the age of tripartite confrontation. After the mergers, the reformed China Telecom, China Mobile and China Unicom all had fixed networks, mobile licenses, the qualification of all service operations, marking the new competition stage of Chinese telecommunications industry.
There are three purposes for the mergers: first, strengthening the competitiveness of the operators; second, changing the disparate competition pattern; third, creating service reform opportunities for the operators.
The newly built China Unicom obtained the 3G license, the largest scale and well-rounded in the world. Because of its mature industry chains and the low price for the equipment, the newly built China Unicom had advantages in the competition of 3G service.
Meanwhile, WCDMA service is the technical standard of 3G in the world, the fastest growth in the users. It had obvious competition advantages compared with the CDMA2000 services, especially the later reform towards 4G. At present, WCDMA standard is the most mature, receiving supports from various major telecommunications equipment manufacturers. However, the market operation capacity of China Unicom fell behind China Mobile. The development perspectives of WCDMA services in China need further investigation. By the end of 2008, the accumulative GSM mobile phone users of China Unicom reached to 133.365 million and 100.146 million of the fixed phone users.
China Telecom is the largest operator of the fixed phones. By the end of 2008, the users were more than 208 million, but the users cut down by about several million in each month averagely. Since its acquisition of CDMA services of China Unicom, the CDMA users decreased in a successive three months in the end of 2008. By the end of 2008, the CDMA users of China Telecom totaled 27.91 million, down by 1.17 million compared with the beginning of acquisition. But the CDMA users increased in the beginning of 2009.
The internet users of China Telecom were 44.27 million at the end of 2008, accumulative net growth by 8.62 million in 2008. The internet users of China Unicom were 25.416 million at the end of 2008.
Although the internet users of China Mobile were very small, China Mobile had started the network construction in the whole country because of its abundant capital. It is predicted that its users will grow at a fast speed.
The TD-SCDMA standard operated in China Mobile belonged to Chinese independent 3G standard, falling behind of WCDMA and CDMA2000. But out of the consideration of the services, the giant position of China Mobile could not weaken in Chinese mobile communications market. It is possible for China Mobile to obtain another WCDMA license in recent years.
More following information can be obtained in this report:
- Merger History of Chinese Telecommunication Industry
- Present Development Situations of Chinese Telecommunication Industry
- Supervision Policies of Chinese Telecommunication Industry
- Major Operators and Their Operations of Chinese Telecommunication Industry
- Development Perspectives of TD-CSDMA Services in China
- Development Perspectives of WCDMA Services in China
- Development Perspectives of CDMA2000 Services in China
- Development Perspectives of Internet Access Services in China
- Factors Affecting the Development of Chinese Telecommunication Industry
1 OVERVIEW ON CHINESE TELECOMMUNICATIONS OPERATION INDUSTRY
1.1 Development Environments of Chinese Telecommunications Operation Industry
1.1.1 Economic Environment
1.1.2 Supervision Policies
1.1.3 Industry Chains
1.2 Development Situation of Chinese Telecommunications Industry
1.2.1 Overview
1.2.2 Fixed Telephone Services
1.2.3 Mobile Phone Services
1.2.4 Internet Services
1.2.5 Added Value Services
2 OVERVIEW ON THE MERGERS IN CHINESE TELECOMMUNICATIONS INDUSTRY
2.1 History of the Mergers of Chinese Telecommunications Industry
2.1.1 Establishment of China Telecom, China Mobile Limited and China United Telecommunications Corporation Ltd.
2.1.2 System Reform of China Telecom and the Establishment of Six Companies
2.2 Finial Merger Plan of Chinese Telecommunications Industry
2.2.1 Overview on the Plan
2.2.2 Merger Reasons
3 CHINESE TELECOMMUNICATIONS OPERATORS BEFORE THE MERGERS
3.1 China Telecom
3.1.1 Company Profiles
3.1.2 Fixed Telephone Services
3.1.3 Internet Services
3.1.4 Development Strategies
3.2 China Netcom Group Corporation (Hong Kong) Limited
3.2.1 Company Profiles
3.2.2 Fixed Telephone Services
3.2.3 Internet Services
3.2.4 Development Strategies
3.3 China Mobile Limited
3.3.1 Company Profiles
3.3.2 GSM Services
3.3.3 Internet Services
3.3.4 Development Strategies
3.4 China United Telecommunications Corporation Ltd. U
3.4.1 Company Profiles
3.4.2 GSM Services
3.4.3 CDMA Services
3.4.4 Internet Services
3.4.5 Development Strategies
3.5 China Tietong Company Inc
3.5.1 Company Profiles
3.5.2 Fixed Telephone Services
3.5.3 Internet Services
3.5.4 Development Strategies
3.6 China Satellite Communications Corporation
3.6.1 Company Profiles
3.6.2 Satellite Communications Services
3.6.3 Internet Services
3.6.4 Development Strategies
4 MERGER PLANS OF CHINESE TELECOMMUNICATIONS INDUSTRY
4.1 Service Extension of China Telecom
4.2 Service Extension of China Mobile Limited
4.3 Disappearance of China Netcom Group Corporation (Hong Kong) Limited
4.3.1 Merged in China United Telecommunications Corporation Ltd
4.3.2 Position in China United Telecommunications Corporation Ltd
4.3.3 Adjustment of Supervision Systems and Organization Structures
4.4 Disappearance of China Tietong Company Inc
4.4.1 Services Merged in China Mobile Limited
4.4.2 Adjustment of Supervision Systems and Organization Structures
4.5 Disappearance of China Satellite Communications Corporation
4.5.1 Withdraw from Chinese Telecommunications Industry
4.5.2 Basic Services Merged in China Telecom
4.5.3 Position of Basic Services in China Telecom
4.5.4 Adjustment of Supervision Systems and Organization Structures
4.6 Service Reform and Integration of China United Telecommunications Corporation Ltd
4.6.1 CDMA Services Merged in China Telecom
4.6.2 China Netcom Group Corporation (Hong Kong) Limited Merged in China United Telecommunications Corporation Ltd
4.6.3 Adjustment of Supervision Systems and Organization Structures
5 CHINESE TELECOMMUNICATIONS OPERATORS AFTER THE MERGERS
5.1 China Mobile Limited after the Mergers
5.1.1 Service Overview
5.1.2 GSM Services
5.1.3 Fixed Telephone Services
5.1.4 Internet Services
5.1.5 TD-SCDMA Services
5.1.6 SWOT Analysis on China Mobile Limited
5.2 China Telecom after the Mergers
5.2.1 Service Overview
5.2.2 Fixed Telephone Services
5.2.3 Internet Services
5.2.4 CDMA 1? Services
5.2.5 CDMA2000 Services
5.2.6 SWOT Analysis on China Telecom
5.3 China United Telecommunications Corporation Ltd after the Mergers
5.3.1 Service Overview
5.3.2 GSM Services
5.3.3 Fixed Telephone Services
5.3.4 Internet Services
5.3.5 WCDMA Services
5.3.6 SWOT Analysis on China United Telecommunications Corporation Ltd
6 DEVELOPMENT PERSPECTIVES OF CHINESE TELECOMMUNICATIONS OPERATORS
6.1 China Telecom
6.1.1 Development Perspectives of Fixed Telephone Services
6.1.2 Development Perspectives of CDMA2000 Services
6.1.3 Development Perspectives of Internet Services
6.1.4 General Development Perspectives
6.2 China Mobile Limited
6.2.1 Development Perspectives of GSM Services
6.2.2 Development Perspectives of TD-SCDMA Services
6.2.3 Development Perspectives of Internet Services
6.2.4 General Development Perspectives
6.3 China United Telecommunications Corporation Ltd
6.2.1 Development Perspectives of GSM Services
6.2.2 Development Perspectives of WCDMA Services
6.2.3 Development Perspectives of Internet Services
6.2.4 General Development Perspectives
7 PREDICTIONS ON THE DEVELOPMENT OF CHINESE TELECOMMUNICATIONS OPERATION INDUSTRY
7.1 Prediction on the Users of 3G Services of Chinese Telecommunications Operation Industry Internet
7.2 Prediction on the Internet Services of Chinese Telecommunications Operation Industry
7.3 Prediction on the New Licenses of Chinese Telecommunications Operation Industry
Chart Reform Events of Chinese Telecommunications Industry
Chart Fixed Telephone Users of China Telecom, 2004-2008
Chart GSM Service Users in China, 2004-2008
Chart GSM Service Users of China Mobile Limited, 2004-2008
Chart Service Users in China, 2004-2008
Chart Organization Structure of China Mobile Limited
Chart Organization Structure of China United Telecommunications Corporation Ltd
Chart Operations of China Telecom, 2004-2008
Chart Operations of China Mobile Limited, 2004-2008
