Research Reports
The China Government's Policy for Liberalizing the Telecommunications Industry
November 01, 2001 / Ren Ai-Min
0 Page, Topical Report
US$1,330 (Single User License)

Abstract

In the last few years, reform and market liberalization have led to the rapid development of China's telecommunications market, and the market has become a major focus of international attention. As of the end of 2000, the total capacity of all fixed-line switch equipment in China came to 179.1 million lines, with 144.1 million subscribers; the total capacity of all mobile communications switch equipment was 118.9 lines, with 85.3 million users. More than 1.2 million kilometers of fiberoptic cable had been laid, and there were 780,000 data communications ports. China already constitutes a huge, rapidly growing market for telecommunications equipment and services, and is attracting the attention of the leading multinational equipment manufacturers and service providers. However, owing to the restrictions imposed by government policy, those multinational telecommunications equipment manufacturers which have already moved into the Chinese market have found that there are limitations on what they can do, and multinational service providers are still prohibited from operating in China. An in-depth analysis of the China government's policy with respect to the opening up of the telecommunications industry suggests that, for foreign telecommunications companies, the adoption of suitable entry and development strategies is the key to surviving and thriving in China.
  •  List of Figures
  •  List of Tables

In the above analysis, an investigation of the structure of China's telecommunications industry and of the government's policy with respect to market opening to suggest some strategies which foreign telecommunications companies seeking to enter and develop the Chinese market could follow has been pursued. Foreign telecommunications equipment manufacturers need to gain an in-depth understanding of the competitive environment in China, then exploit their own advantages to participate in that competition, adopting a long-term strategy of "trading technology for markets" to secure more room for development. Foreign operators and service providers should be realistic in devising their strategies. They need to seek out areas where they can achieve a breakthrough and then, in line with Chinese government policy, use the various different investment methods available to achieve gradual penetration in terms of operational level and geographical scope of operations.

To get MIC's complete insight, please log in.