Wednesday, May 17, 2006

China’s booming mobile phone and Internet industry: What Next?

At present, China has more than four hundred million mobile phone subscribers which is the highest in the world. China Mobile Group, a state owned company, is the world’s largest mobile phone operator. China’s capital, Beijing is the largest mobile phone market but it is also the most expensive in call rate (.4 yuan per minute for both incoming and outgoing). Until recently, government had tight control over the mobile phone call charge. According to CCTV.COM recently a new system has been introduced by the authority.

Along with mobile subscribers the mobile phone production of the country has increased as well. According to the Ministry of Information Industry, more than 340 million units of mobile phone will be produced in the mainland of China and out of that 250 million will be exported. According to the report published in Telecome.Global, last year Mainland China produced about 304 million units which is 30% more compared to 2004.

In addition, the number of internet users is also rising in China. According to Robin Li, Chairman and CEO China’s leading search engine, most of the mobile phone users are becoming internet users. According to the statistics of the Ministry of Information Industry there are around 100 million internet subscribers in China . Li said that the number would increase with the introduction of the third generation mobile phone with internet facilities and predicted that in the next two or three years the number of mobile phone users would rich to 100 million.
The future for mobile phone in Asian seems to be bright. India is going to pass USA and Russia to become the 2nd largest market for mobile phone by 2008.
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Brough said...

In addition to traditional mobile phones (GSM and CDMA) from China Mobile and China Unicom, several of the "fixed line" operators, notably China Telecom and China Netcom provide wireless local loop (WLL) services that are, in effect, mobile phone services. Last I heard (sometime in late 2005) there were at least 100 million WLL phones using a technology variously call "Little smart", PHS or PAS.

If you include the four phone companies above and add in China TieTong (formerly run by China Railways) the total teledensity in China is well over 50 per 100 population.

mehdi said...

Thank you Brough, for your information. I did not know about these four industries and yes if that is the case then the real number of mobile phones will be much higher. It is really astonishing that mobile phone use is increasing at a very fast pace. Not only in China,Bangladesh where I leave is also a very attractive place for the mobile company investors.