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China's telecom service revenue driven by mobile broadband

November 16, 2015

A new report has found that mobile broadband bundles will be the most important driver for the growth of China's telecom service revenue, according to a document published on Press Release Rocket.

Entitled: "China: Amid Rising Competitive Pressures and Lower Prices, Operators Turn to Fixed and Mobile Broadband Bundles," the Hexa Reports study offers a professional-level summary of the current telecommunications market in China, and makes in-depth forecasts of key indicators until 2020.

The report looks at a number of elements, including regional context; economic, demographic and political context in China; regulatory environment and trends—which includes reviewing the agenda for the next 18-24 months, as well as developments in national broadband plans; a demand profile—looking at previous figures and forecasts of fixed telephone, broadband, mobile service revenues; and service evolution—how overall revenues have changed from 2013 to 2020.

According to the findings, the top two operators in the country – China Mobile and Chine Telecom—will account for nearly three-quarters (71.3%) of overall service revenue in 2015. These operators are focused on integrated services that combine fixed and mobile access, so that consumers receive a higher quality of service—and, as a result, customer adoption increases. One of the key takeaways from the report is that China has an estimated telecom service revenue of US$190.0bn—or 1.7% of nominal GDP this year—making it the biggest telecom services market in the Asia Pacific region. Another key finding is that telecom service revenue is expected to reach $241.2bn in 2020, largely driven by increased investments in network expansions, as well as developments in 4.5/5G technology. In terms of 3G subscriptions, these are predicted to witness a decline in the coming years as more customers move to 4G networks and as operators up their investment in LTE coverage. By the end of 2020, in fact, LTE subscriptions will account for 79% of mobile subscriptions in China, totalling 1.2bn. A full copy of the report can be accessed via the Hexa Reports website.

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