China Telecom Sector Analysis (2006-2007)

• The improvement in network construction will lead to more and more 3G subscribers and in next 5-6 years, the 3G subscribers will be about 40% of the overall market.
• In China, the fixed line subscriber base is expected to grow at the rate of less than 4-5% for the period 2006-2009. It is estimated that the subscriber base will reach at the level of about 425 Million by the end of 2009.
• By 2010, China’s mobile subscribers will increase to about 640 Million and it is expected that the subscriber base would be about 446.59 Million in the year 2006.
• The broadband subscriber base is also expected to grow at the rate of more than 21% to reach the level of about 101 Million by the end of 2009.

• What are the emerging trends and technologies in the Chinese Telecom sector?
• What is the future outlook of the Telecom market in China?
• Who are the Key players in the Chinese Telecom Market?
• How lucrative is the Chinese Telecom Market for the domestic as well as foreign players?
• What are the challenges faced by the industry?
• How is the market affected by other factors prevailing in the economy?
• What are the strategies for growth of telecom sector in China?

Table of Contents

1. Analyst View

2. China Telecom

2.1 Overview

2.2 Basic Telecom Service Providers

2.3 VAS Providers

2.4 Market by Region

3. Industry Overview (Asia vis-à-vis China)

3.1 Fixed Line

3.1.1 Asia Fixed Line Forecast (2006-2010)

3.2 Mobile

3.2.1 Asia Mobile Market Forecast (2006-2010)

3.3 Wireless

3.3.1 Asia Wireless Market Forecast (2006-2010)

4. China Telecom Market by Service

4.1 Fixed Line

4.2 Mobile

4.3 Wireless

5. China Telecom Market by Vendors/Providers

5.1 Fixed Line

5.2 Mobile

5.3 Wireless

6. China Telecom Market by Technology

6.1 GSM & CDMA

6.2 WiFi

6.3 3G Mobile

7. Emerging Technologies

7.1 ZigBee

7.2 DVB-H Technology (Digital Video Broadcasting - Handhelds)

7.3 HSDPA (High Speed Downlink Packet Access)

7.4 MIMO (Multiple-Input Multiple-Output)

7.5 1xEV-DO

8. Driving Forces

9. Key Opportunities

10. Challenges

11. Strategic Outlook

12. Future Outlook (2006-2009)

13. Recent Trends and Developments

14. Competitive Landscape

14.1 Overview

14.1.1 Telecom Operators

14.1.2 Network Equipment Suppliers in China

14.2 Comparative Financial Analysis

15. Market/Brand Leaders

15.1 China Mobile (Hong Kong) Ltd.

15.2 China Netcom

15.3 China Satcom Guomai Communications Co. Ltd.

15.4 China Telecom

15.5 China Unicom Ltd.

15.6 Hutchsion Whampoa Ltd.

15.7 Nokia OYJ

15.8 Motorola, Inc.

15.9 Alcatel

15.10 China Tietong (formerly China Railcom)

15.11 Shanghai Mobile Communications Co., Ltd.

16. Appendix I: Government Regulator

17. Appendix II: Regulatory Environment

18. Appendix III: China’s WTO Commitments

List of Figures:

Figure 1-1: China - Investments by Four Leading Telecom Carriers (in Billion US$), 2005

Figure 2-1: China - VAS Providers by Market Share (%), 2005

Figure 2-2: China - VAS Market Revenue (%), 2004

Figure 3-1: Asia-Pacific - Fixed Line Telecom Market Value (in Billion US$), 2001-2005

Figure 3-2: Asia-Pacific - Fixed Line Telecom Market Segmentation Value (%), 2005

Figure 3-3: Asia-Pacific - Forecast for Fixed Line Telecom Market Value (in Billion US$), 2006-2010

Figure 3-4: Asia-Pacific - Growth in Worldwide Market Share (%), 2001 & 2005

Figure 3-5: Asia-Pacific - Mobile Market Value (in Billion US$), 2001-2005

Figure 3-6: Asia-Pacific - Mobile Phone Market Volume (in Million Units), 2001-2005

Figure 3-7: Asia-Pacific - Growth in Mobile Market (%), 2001-2005

Figure 3-8: Asia-Pacific - Market by Region (%), 2004

Figure 3-9: Asia-Pacific - Projected Mobile Phone Market Value (in Billion $), 2006-2010

Figure 3-10: Asia-Pacific - Growth of Online Mobile Gaming Users by Countries (%), 2004

Figure 3-11: Asia-Pacific - Forecast for Handset Sales Volume (in Million Units), 2006-2009

Figure 3-12: Asia-Pacific - Wireless Telecommunication Services Market Value (in Billion US$), 2001-2005

Figure 3-13: Asia Pacific - Wireless Telecommunication Services Market Segmentation Value (%), 2005

Figure 3-14: Asia-Pacific - Forecast for Wireless Telecommunication Services Market Value (in Billion US$), 2006-2010

Figure 3-15: Asia-Pacific - Forecast for Wireless Telecommunication Services Market Volume (in Million), 2006-2010

Figure 4-1: China - Market Share of the Major Telecom Operators (%), 2005

Figure 4-2: China - Growth of Telephone/Internet Subscribers (in Million), 2000-2005

Figure 4-3: China - Spending on Different Telecom Systems (%), 2004

Figure 4-4: China - Fixed Line Subscriber Base (in Million), 2001-2005 & Mar-06

Figure 4-5: China - Mobile Subscribers (in Million), 2001-2005

Figure 4-6: China - Mobile Phones Market Volume (in Million Units), 2001-2005

Figure 4-7: China - Broadband Subscriber Lines (in Million), 2001-2005

Figure 4-8: China - Total IT Spending (in Million US$), 2001-2005

Figure 4-9: China - Internet Users (in Million), 2001-2005

Figure 4-10: China - Internet Access Market (in Billion US$), 2001-2005

Figure 5-1: China - Market Shares by Leading Vendors (%), 2004

Figure 5-2: China - Fixed Line Telecom Operators Subscriber Base (in Million), 2005

Figure 5-3: China - Mobile Vendor Market Share (%), 2004-05

Figure 6-1: Asia - Share in Global GSM Market (%), 2004

Figure 6-2: China - GSM & CDMA Subscriber Growth (in Million), Dec-04 to Mar-06

Figure 6-3: Worldwide - WiFi Handset Revenue by Region (%), 2005

Figure 6-4: China - Market Share of Wi-Fi Product Vendors (%), June 2005

Figure 6-5: China - Wi-Fi Equipment Market Size (in Billion RMB), 2002-2008e

Figure 6-6: China - Forecast of 3G Mobile Subscribers (in Million), 2006-2010

Figure 6-7: China - Forecast of 3G Investment (in Billion ¥), 2006-2010

Figure 6-8: China - 3G Service Acceptant Degree among Subscribers (%), 2005

Figure 7-1: MIMO Performances with HSDPA (in MB/Sec)

Figure 7-2: Worldwide - EVDO Handsets Sales (in Million Units) 2004-2006e

Figure 7-3: Worldwide - Growth of EVDO Devices as a Percentage of CDMA2000 Devices (2003-2009e)

Figure 8-1: China - GDP Growth (in Trillion), 2001-2009e

Figure 8-2: China - Number of Households in Socioeconomic Grade C (in Thousand), 2000-2009

Figure 8-3: China - Number of Households in Socioeconomic Grade D (in Thousand), 2000-2009

Figure 8-4: China - Number of Households in HNWI (in Thousand), 2000-2009

Figure 8-5: China - Hotspot Market Share of Major Telecom Operators (%), 2005

Figure 8-6: China - Consumer Focused Market Share of Manufacturers (%), 2005

Figure 9-1: China - Population Growth (in Million), 2001-2005

Figure 9-2: China - GDP Growth (in Units), 2001-2005

Figure 9-3: China - Internet Users (in Million), 2000-2008e

Figure 12-1: China - Forecast for Fixed Line Subscriber Base (in Million), 2006-2009

Figure 12-2: China - Forecast for Mobile Phones Market (in Billion US$), 2006-2010

Figure 12-3: China - Forecast for Mobile Phone Subscriber Base (in Million), 2006-2010

Figure 12-4: China - Forecast for Mobile Penetration Rate (%), 2006-2010

Figure 12-5: China - Forecast for Internet Users (in Million), 2006-2009

Figure 12-6: China - Forecast for Broadband Subscriber Lines (in Million), 2006-2009

Figure 15-1: China Mobile (Hong Kong) Ltd. - Stock Performance

Figure 15-2: China Netcom - Stock Performance

Figure 15-3: China Satcom - Stock Performance

Figure 15-4: China Telecom - Stock Performance

Figure 15-5: China Unicom - Stock Performance

Figure 15-6: Hutchsion Whampoa Ltd. - Stock Performance

Figure 15-7: Nokia OYJ - Stock Performance

Figure 15-8: Alcatel - Stock Performance

List of Tables:

Table 3-1: Asia-Pacific - Fixed Line Telecom Market Volume (in Million), 2001-2005

Table 3-2: Asia-Pacific - Forecast for Fixed Line Telecom Market Volume (in Million), 2006-2010

Table 3-3: Worldwide - Projected Global Messages Volume (in Billion), 2006-2008

Table 3-4: Asia-Pacific - Wireless Telecommunication Services Market Volume (in Million), 2001-2005

Table 4-1: China - Total Broadband Users (in Million), 2005

Table 5-1: China Telecom - Investment in Major Equipment (in Million US$), 2004 & 2005

Table 5-2: China Netcom - Investment in Major Equipment (in Million US$), 2004 & 2005

Table 6-1: Asia-Pacific - CDMA Subscribers Growth (%), 2004-05

Table 6-2: China - Preference of 3G Subscribers by Area-wise (%), 2005

Table 7-1: Worldwide - Broadcast Standards

Table 9-1: China - Number of Villages with Telephone Services, 2005

Table 14-1: China - Comparative Financial Analysis of Top Telecom Players, 2005

Table 15-1: China Mobile (Hong Kong) Ltd. - Key Financial Ratios (2003-2005)

Table 15-2: China Netcom - Key Financial Ratios (2003-2005)

Table 15-3: China Satcom Guomai Communications Co. Ltd. - Key Financial Ratios (2002-2004)

Table 15-4: China Telecom - Key Financial Ratios (2003-2005)

Table 15-5: China Unicom Ltd. - Key Financial Ratios (2003-2005)

Table 15-6: Hutchsion Whampoa Ltd. - Key Financial Ratios (2003-2005)

Table 15-7: Nokia OYJ - Mobile Device Volume by Geographical Area (in Million Units), Q3 2004, Q2 2005 & Q3 2005

Table 15-8: Motorola, Inc. - Key Financial Ratios (Q4 2001 to Q4 2005)

Table 15-9: Alcatel - Key Financial Ratio, 2005Mobile (Hong Kong) Ltd. - Stock Performance