Core business revenue of the Chinese telecom companies grew 5% in the first two months of the year, backed by an increase in the number of mobile subscribers.
As per the statistics released by the Ministry of Industry and Information Technology, the telecom operators in China witnessed their returns from core business grew 5% year on year, hitting the mark of RMB 133.22 Billion, in January and February 2010, as per the news published by
Alibaba.
During January-February 2010, total business volume of the industry stood at RMB 451.56 Billion, representing 20.1% increase from the corresponding period of 2009. In the first two months of the current year, there was 11.0% year on year increase in the mobile telecom business revenue, which reached RMB 88.59 Billion, making up 66.50% of total core business revenue. During the first two months of 2009, the ratio stood at 62.87%.
Returns from fixed-line telecom segment fell 5.3% from 2009 levels to RMB 44.62 Billion, describing 33.50% of the total revenue from core business.
In addition, the main driving force behind the growth in Chinese telecom industry’s revenue is the surge in the number of mobile subscribers. Total mobile users in the country as of the end of February 2010 reached 765.97 Million, depicting 1.24% growth over January 2010 and 16.10% growth over February 2009. Moreover, the subscriber density reached 56.3%. The number of subscribers increased because of the low penetration of around 53% in 2009.
Besides this, Chinese people are also being attracted by the recently launched 3G technology. The total number of users using 3G technology in China had touched 16.06 Million by the end of February, an increase of 1.52 Million during the month.
Furthermore, according to a recent market research report titled “
3G Market Forecast to 2013” by
RNCOS, as 3G is on the path of continuous growth in China, the 3G user-base is anticipated to reach 120 Million by the year 2013.
According to a Research Analyst at
RNCOS, “China has emerged as the fast growing and largest telecom market of the world. In terms of mobile subscriber base, the country has already outperformed the US in 2008. Hence, the telecom market of the country remains highly lucrative for both foreign as well as domestic players because it provides abundant prospects for the telecom companies for the coming years.”
Related Market Research Reports:
Global Mobile TV Forecast to 2013
Indian 3G Mobile Forecast to 2012
Emerging Rural Mobile Market in India 
