China: 3G Users to Grow at CAGR of Over 275% Till 2011

China issued long-awaited third-generation (3G) mobile phone licenses to three mobile operators in the first week of January 2009 - a move that is expected to lead to the investment of billions of dollars in building new networks. The Ministry of Industry and Information Technology (MIIT) awarded China Mobile with a license for TD-SCDMA, while China Telecom and China Unicom, received licenses for the US-developed CDMA2000 and Europe's WCDMA respectively.

 

According to our new research report, “China Telecom Industry Forecast to 2012”, 3G has vast growth potential in the world’s largest telecom market, which has already surpassed 650 Million mobile subscribers in early 2009. China's three telecom operators are frequently injecting huge investments in order to get major chunk of the market that will help them in shoving up their declining ARPUs. Moreover, the government has projected that the total investment in 3G would touch 170 Billion Yuan in 2009. It has also estimated that 3G will generate investment and consumption worth 1 Trillion Yuan on the Chinese mainland by 2011, with consumer spending on 3G terminals expected to reach 400 Billion Yuan.

 

Based on current industry trends, our research foresees a CAGR growth of more than 275% in the 3G user base from now to 2011. The country is anticipated to witness a big leap in 2010 onwards with total number of 3G users projected to reach 150-170 Million by 2011. “The expected growth in the user base will largely depend upon the availability of compatible handsets targeted at mass Chinese consumers, access to customized applications, and pricing of 3G services to a greater extent”, says a Sr. Analyst at RNCOS.  

 

Our report, “China Telecom Industry Forecast to 2012”, provides extensive research and latest analysis on the rapidly growing Chinese telecom market. It provides detailed analysis on the fixed-line telephony, mobile telephony, Internet and broadband market in the country, coupled with the current market performance and future prospects. This report is intended to give clients an insight into the status of emerging technologies, growth in subscriber base, handset sales, market share, market penetration, opportunities and roadblocks, and future scenario of the Chinese telecom market.