Nearly half of the Chinese population possesses mobile phones as the mobile subscription soared to 592 Million due to lower call rates and increased adoptability of mobile phones.
The Ministry of Industry and Information Technology in China revealed that the mobile subscribers in the country reached 592 Million at the end of May 2008, nearly half of 1.3 Billion, total population of China, as reported by Xinhua.
According to the industry analysts, the mobile subscription base grew by over 8% and nearly 44.8 Million new users subscribed in the first five months of 2008 (January-May 2008). Besides, the industry revenue augmented by 9.6% to $48 Billion in the initial five months this year compared to the same period last year. Currently, over 45% people in China are using mobile phones. Meanwhile, fixed asset investments in the telecom sector went up by 2.7% to 75.1 Billion Yuan (US$ 11 Billion).
The upsurge in the Chinese mobile industry is mainly grounded on reduction in call rates by the industry players to increase their market penetration. Moreover, these figures indicate towards a new trend noticed among the Chinese regarding the mobile phone usage. The introduction of such new technologies as 3G has also popularized mobile phones in the country.
The affordability factor of mobile phones compared to fixed-line phones has taken the mobile industry in China to new heights. Consequently, there is not only an enlargement in the mobile subscription base, but the industry translated the benefit into increased revenues.
Moreover, the Chinese government made public that it is planning to roll out 3G services at commercial level as the service is currently under trial. The industry analysts hoped a rise in the industry revenues once the 3G technology is commercially deployed.
According to a Research Analyst at RNCOS, “The phenomenal increase in mobile subscriber base in China is making mobile operators and manufacturers optimistic about the vast growth opportunities in the sector. High growth in the telecom sector would help the Chinese economy to touch the peak. The industry is expected to grow in near future because operators are increasingly focusing on expanding their user base by attracting new consumers. As a result, the revenue of mobile companies will also increase.”
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