Telecommunication in China

Telecommunication in China

  • Submitted By: pbenjang
  • Date Submitted: 03/02/2010 5:24 AM
  • Category: Business
  • Words: 5940
  • Page: 24
  • Views: 723

Table of Contents

• Executive Summary
• Introduction
• History of China’s Telecommunications Development
o Chronological summary
• The Present Telecommunications Industry in China
o Reform and Restructuring of the Industry
• Analysis of the Structure of China’s Telecom Industry
o Five Forces Analysis
• Conclusion
• References

Executive Summary

This study presents an analysis of China’s telecommunications services industry. China began its economic reforms and adopted the open door policy in 1979. The telecommunications industry was a typical industry under the socially planned system in pre-reform China. It has gone through many reforms since then. Before the late 1990s, the domestic telecom industry was highly protected. The government protected incumbents in the market from foreign competition as well as domestic competition. As a result, Chinese people had to consume low-quality services while paying high prices. Since the mid 1990s, reforms have been introduced to this industry. The restructuring of China Telecom and the establishment of a few telecom services groups brought some degree of competition into the market. Telecom services have been improved in terms of quantity, quality and price. However, the telecom services market is still dominated by six major local telecom companies. China’s entry to the WTO will change this situation and we are expecting to see rapid developments in this industry. It is important for us to fully understand the history of this industry, to realize the possible changes in the future, and to formulate good strategies for development.

China is the largest cellular market with about 200 million mobile subscribers and a population of 1300 million.
China’s telecom industry received special protection in the past, domestically and internationally because it was regarded as one of the country’s key national industries and because it is related to national defense. Under heavy protection, the...

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