China Mobile Communication Market Analysis4267.doc

China Mobile Communication Market Analysis The field of mobile communication has become the communications power of the most active, and its growth rate has far exceeded the fixed communication. As of the end of 1999, global mobile phone users has more than 450 million. The potential of China as the world's largest mobile communication state, when the scale of 43.24 million users, second only to the United States and Japan, ranking third in the world. The new century, China's rapid development of mobile communications will continue to June 2000, China's mobile subscribers has reached 60 million, this year is expected to become the world's second largest mobile communications state. China's mobile communication as well as the development of the entire communications industry, thanks to a modest advance in the telecommunications industry in macroeconomic policy-making, but also benefited from China's continued economic stability, high-speed development, but also benefited from the information industry policy support and guidance. Mobile Communications Business of the joint development and manufacturing, so that China's mobile communication industry has shown great vitality of the situation. 1, China's mobile phone operator Market Analysis Development of a Over the past decade, China's mobile communication network scale and subscriber scale achieved a rapid development. As of June 2000, GSM size of the network to reach 82.97 million, nearly 60 million mobile phone users, mobile phone penetration rate of more than 4.6%, mobile communications network will be developed this year as the world's second-largest network. 2 market competition China's mobile operators increasingly competitive market, with China Mobile Communications Corporation of the formally established, the carrier market, which is based on China Mobile Communications Corporation and China Unicom as the main competition, a new pattern. (1) China Mobile and China Unicom to compete Since its establishment in 1994, China Unicom, the Government and the Ministry of Information Industry has been the strong support and inclination to gradually increase their competitive strength, as China is currently the only - an integrated services provider, China Unicom's business remains focused on mobile communication, and obtained a CDMA license. China Mobile has withdrawn co-operation with the Great Wall of telecommunication network, the Great Wall telecommunications network to operate independently. It is predicted that the Great Wall CDMA network will also will be incorporated into China Unicom, China Unicom's overall strength that will be further enhanced. China Unicom has already constituted a strong competition from China Mobile. The strength of the gap between the two will be further reduced, as of June 2000. (2) mobile phones and fixed telephone penetration and the interaction between the competing Since two years ago, China Telecom Mobile Communications Corporation to develop a simulated network of "Local Link" and then to develop a digital network of "local" service, will expand the field of competition to the fixed phone market. And low fees, access costs only three hundred dollars a month Huafei half, almost close to the level of installing a fixed telephone. At that time the mobile communications company or a subsidiary of China Telecom. However, telecom reorganization in 1999, moving after independence, it gradually evolved into a new China Telecom's competitors and partners. In recent years, fixed telephone and energetically develop the "mobile telephone" business, and in many cities, the rise of the south to Zhaoqing, Shenzhen, and east to the Yuhang, Hangzhou, west to Kunming, Xi'an, dozens of cities, rise to an upsurge of mobile telephone, Investment, and are generous in mobile telephone building, and efforts to expand the business. PHS can not only ease the introduction of fixed-line becomes saturated, the market weakness in the cold and hot equipment used in conflicts has also boosted the growth in telephone traffic, improve network termination rates, improve the whole network of business volume and revenue, reduce Small by the initial installation fee to reduce the negative impact of the capital. (3) the addition of mobile operators, mobile operators market, promote healthy and rapid development Chinese mobile communications market is the world's most growth potential of the market, the world's major telecom operators are optimistic about the huge potential market. With the "WTO," the advent of new mobile service operators may appear in China's mobile communications market. At present, only China Mobile and China Unicom's two mobile operators and the largest telecommunications country in the world are generally three or more, it is necessary to introduce a third (or more) mobile communications network operators to offer mobile services operator. Are most likely to acquire mobile licenses that China Telecom Group, the following reasons: * China Telecom owns the world's second, China's first network size, a total of more than 120 million fixed-line telecommunications users; * It has a wealth of telecommunications networks (including mobile network) operating maintenance experience; * Has been opened in some cities in China mobile telephone business; It is China's largest telecom company, but also post-WTO against the foreign telecom operators to seize the Chinese market, most likely, the largest state-owned enterprises; * After the separation from the mobile and paging, China Telecom is also looking for new business growth, while the mobile communications market as the fastest-growing business, China Telecom, the urgent need to cut into the market; In fact China Telecom are now ready to operate mobile services related to preparation. Two. Analysis of China's mobile communications market Business of the rapid development of mobile communications for equipment manufacturers to provide a huge market, attracting the world's leading mobile communications manufacturer; mobile communications market competition can be divided into three kinds, namely, between the foreign brands, domestic brands as well as between Domestic and foreign competition among brands. 1. Market conditions Investment in China's mobile communications continue to grow. A huge investment boom of China's mobile communication mobile communications device market. The size of mobile phone users high-speed growth for handset manufacturers to provide a fast-growing huge market, according to statistics calculation, in 2000 mobile phone sales and sales will reach 40 million (31.76 million subscriber growth, coupled with existing mobile phone users buy a new machine, the total size to 40 million) and about 8 billion yuan. Reposted elsewhere in the paper for free download http:/ 2 market competition (1) foreign suppliers in the Chinese market has basically taken shape pattern Foreign firms since 1994 to make significant inroads into the Chinese mobile communications market, the majority of the current GSM systems market, are still being occupied by foreign manufacturers. The main foreign supplier of Nokia, Ericsson, Motorola, Siemens, Nortel Networks, Alcatel, etc., they are a year from China Mobile Communications Equipment Market to obtain huge profits. Zeyi mobile phone market, Motorola, Nokia, Ericsson, Siemens and other brand-based. Prior to 1998, foreign brands dominated China's mobile phone market in 1999, although the breakthrough of domestic brand mobile phones, foreign brands are still account for 97% of the market share. China's current total of 27 handset manufacturers, the annual production capacity of more than 35 million, of which 10 domestic brand enterprises, joint ventures or wholly-owned enterprises 17. (2) national mobile industry group showed potential breakthrough In the past, China's mobile telecommunications industry is basically a blank, resulting in the network of major equipment monopolized by foreign companies. This situation since 1997 has undergone major changes, some domestic enterprises, research institutes independently developed a range of GSM system, to fill the gaps in this area. 1998 Ome, Huawei's GSM system equipment has a successful start and, through the Ministry of Information Industry of the production-oriented identification, marking the domestic GSM equipment in industrial areas has taken solid steps. Entered in 1999, Datang, Huawei, ZTE, Jinpeng such as self-developed GSM system, and succeeded in making the Ministry of Information Industry issued license network telecommunications equipment, and to enter the industrial stage of development. In 1999, the domestic mobile communications infrastructure to achieve a zero breakthrough, the base station market share of 2% market share of 4% switching system, in the first half of this year, domestic mobile communications infrastructure has reached a market share of 6%. Since the state of the nation to support mobile communications and mobile communications industry and manufacturing Business of reciprocal interaction between the end of 2000, this proportion is expected to reach 15%. Projections to 2003, domestic mobile switching systems and base station's market share will reach 70% and 50%. At present, the domestic mobile communications systems vendors have been able to provide a full network solutions and products, 2.5G (GPRS) mobile communications, the National Bureau of manufacturers launched the experiment. (3) The ready-made mobile phone brands Since 1999, countries in supporting the development of China-made mobile phones have issued a series of preferential policies, and identified Dongxin, ZTE, TCL, Konka, Haier, Kejian, Soutec, Fenghua Bird, Xiamen Overseas Chinese, Beijing Post and Telecommunications Equipment Factory (Capitel Group) 10 domestic offices, as a main focus for mobile phone companies to be actively supported in 1999, domestic mobile phone market share has reached 3%, to June 2000, in the sales of 20 million phones, domestic mobile phone market share has reached more than 7% and is expected to reach about 15% by year's end. A huge market, the profits of the temptation of money, to recover the determination of mountains and rivers, localized management, rich experience in the Chinese market development and integration of human environment, sales network and service concept, all of which are involved in mobile phone market, domestic producers a competitive edge where, I believe that in the near future, foreign brands monopoly situation of China's mobile phone market will be gone, domestic mobile phone will replace the foreign brands in China people respected ethnic products. (4) Market Forecast China's mobile communications market will continue rapid growth, its growth rate will far exceed the fixed communication. At the same time mobile communications and lnternet combined with each other, will also create a great mobile Internet market, and in turn more to promote prosperity and development of mobile communications market. Although this year launched the development of WAP phones is not as people initially thought it was fast, but the scale of more than 10,000 users, and are doubled. At the same time, new technologies, the emergence of new business will also be a strong impetus to the development of mobile communications market. Three market-driven factors In recent years, China's mobile telecommunications market, domestic brands are making more and more gratifying results. (1) National Mobile Communication Industry Development Policy Technological developments and market changes in the pattern there are many drivers. In order to promote China's mobile communications equipment, especially self-developed mobile communications equipment manufacturing industry, according to the State Council and Ministry of Information Industry to develop the relevant technical equipment, policies, decisions to increase investment in infrastructure, the intensity of the use of domestic equipment, emphasizing the performance at the same price ratio conditions, preference for domestic production equipment, in order to promote domestic mobile communications equipment manufacturers to large-scale development. According to the policy, since 1999, and strictly control imported directly from the mobile communication system and equipment, primarily using domestic joint-venture production and China's own development and production of mobile communications systems equipment; will no longer award a new GSM electricity will be funded or funded enterprises, on the existing joint-venture enterprises to accelerate the transfer of technology, the depth and speed, speed up product localization process, while strengthening government supervision, standardize the mobile communications equipment manufacturers business activities. On the other hand, the state established to promote the development of mobile communications products for mobile communications research and development of special funds, special funds through the guidance and support throughout the development of China-made mobile communication industry, and have made substantive progress. (2) to strengthen research and development efforts to enhance Sino-foreign cooperation to improve domestic mobile communications company's comprehensive strength At present, most domestic mobile communications R & D capability of enterprises is still relatively weak, the lack of in-depth technical research capabilities, the face of fierce market competition and competition from foreign companies, China's mobile communication industry need to enhance the independent research and development capabilities and strengthen the deep and abroad level of technical cooperation and technology transfer, vigorous efforts to attract students to come back, strengthening the mechanisms and technological innovation, enhance the domestic mobile phone industry's overall strength. Reposted elsewhere in the paper for free download http:/