New Fixed Networks research report from Business Monitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 08/28/2012 -- BMI View: The Chinese telecommunications industry is the biggest in the world in terms of existing size and growth potential in light of the country's sizeable population. The 1bn mobile subscribers represent only a penetration rate of less than 80%, with a large proportion of consumers in rural regions still untapped. However, fulfilling the potential requires significant investments from the private and public sector, a capability that could weaken if the broader economy continues to deteriorate.
- Our mobile subscriber forecasts have been upgraded on the back of continued robust growth trajectory. We now envisage 1.017bn subscribers by end-2012.
- Fixed broadband forecasts are expected to experience weaker growth than previously predicted in light of increasing demand for mobile alternatives.
- China Mobile continues to dominate the mobile sector with the largest percentage of net additions, although its market share is still eroded by the efforts of China Unicom and China Telecom.
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Key Trends And Developments
China Telecom and Taiwan-based fixed-mobile convergence applications provider Ubitus announced in June 2012 that they have formed a partnership to deliver cloud gaming services to internet-connected TVs in China. As cloud gaming eliminates the need for consumers to purchase a gaming console, thereby reducing cost, the combined cost of an internet-connected TV and high-speed broadband connection could still be beyond the reach of majority of the consumer market.
Chinese mobile broadband subscriptions have overtaken fixed broadband connections for the first time, according to the China Internet Network Information Centre. Growth in the mobile sector is attributed to strong consumer demand for 3G-based mobile broadband networks, facilitated by the growing ubiquity of internet-enabled devices such as smartphones and tablet computers.
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