Analysis of China's Telecommunications Industry
Contents Introduction 2 An overview of China’s telecommunications industry at current 3 Competitiveness and Market Share 5 China’s telecommunication industry analysis 6 An internal analysis of China’s telecommunications industry 6 Barriers to entry 6 Industry Rivalry 7 Bargaining power of buyers 8 Bargaining Power of Suppliers 8 Threat of substitute products/services 8 An external analysis of China’s telecommunications industry 9 Political/Legal 9 Economic 10 Socio-Cultural 10 Technological 11 Environmental 11 Conclusion 12 Appendices 14 Appendix A: GDP growth rate 14 Appendix B: Excerpt from the Telecommunications Regulations of the People’s Republic of China: 15 Appendix C: Market share of the telecommunications industry 16 Appendix D: HHI calculations 18 Appendix E: Ageing Population from 2000 - 2050 19 References 20
Introduction
China’s telecommunications industry is currently experiencing significantly large growths with revenue increases up 12.8% year-on-year to 386.2 billion yuan (MII, 2011). A large contributing factor to this increase is China’s enormous population of 1.3 billion (Mewton-Smith, R 2011) and as a cause has gained position as world leader with respect to subscribers. China’s telecommunications industry has always played and still proves to be a driving force in the country’s economy. Recent reforms in 2008 have seen the emergence of three dominant telecommunication operators China Mobile, China Telecom and China Unicom in an attempt to boost the telecom industry.
China’s economic growth will continue to raise its competitiveness in the global environment with Competitive Global Index (Global Competitiveness Index 2010-2011) of 4.84 positioning China at 27 in world rankings. Forbes (2008) announced China as the world’s leader in mobile telecommunications yet China has lagged on internet related services and are therefore unable to compete in these services worldwide. Contrary to the above,
Introduction
China’s telecommunications industry is currently experiencing significantly large growths with revenue increases up 12.8% year-on-year to 386.2 billion yuan (MII, 2011). A large contributing factor to this increase is China’s enormous population of 1.3 billion (Mewton-Smith, R 2011) and as a cause has gained position as world leader with respect to subscribers. China’s telecommunications industry has always played and still proves to be a driving force in the country’s economy. Recent reforms in 2008 have seen the emergence of three dominant telecommunication operators China Mobile, China Telecom and China Unicom in an attempt to boost the telecom industry.
China’s economic growth will continue to raise its competitiveness in the global environment with Competitive Global Index (Global Competitiveness Index 2010-2011) of 4.84 positioning China at 27 in world rankings. Forbes (2008) announced China as the world’s leader in mobile telecommunications yet China has lagged on internet related services and are therefore unable to compete in these services worldwide. Contrary to the above,
References: (Figures retrived from a Marbridge Consulting report, 2011)