The Chinese telecom industry witnessed 10.3% rise in profit during Jan-Sep 2008 due to increasing number of broadband and telephone users as well as rising competition.

Statistics revealed by the Ministry of Industry and Information Technology (MIIT) showed that the Chinese telecom industry recorded a 10.3% increase in its profit during January-September 2008 on YOY basis, as per the news published by chinaknowledge. Business volume went up by 23.2%.

During January-September 2008, 64.25 Million new subscribers were added, bringing the total users to 977 Million by the end of September. During the same period, 12.93 Million new broadband users were recorded, taking the total subscriber count to 79.35 Million. 99.6% of administrative villages and 91.7% of natural villages in China were recorded using telephones by the end of September 2008. However, no specific figures on either the business volume or profit were revealed by the ministry.

Chinese telecom sector witnessed increase in profit and business volume during January-September 2008 due to steady growth in the number of telephone and broadband users. According to the ministry, broadband service is now available in every town of the country.

Further, in an effort to make the telecom market highly competitive, integrated telecommunication operators have been established in China, which provide mobile, land-line, data and various other fundamental telecom services. Consequently, the profit of the industry is growing very rapidly.

Moreover, the recent reforms in the telecom industry have split the monopolized telecom operators, providing various services, into full service providers. This step was essential to increase the competition and development of the industry. Telecom industry, in addition to overhauling, has provided the foreign players an opportunity to penetrate into the largest telecom market of the world.

According to a Research Analyst at RNCOS, “The restructuring of Chinese telecom industry is progressing at a steady pace. This has given equal opportunity to operators to compete in the most lucrative telecom market of the world. Further, the government’s decision to issue 3G licenses on the completion of restructuring is also expected to boost the revenues of Chinese telecom industry in coming years.”

Related Market Research Reports:
Turkey Telecom Sector Forecast to 2012
Booming UAE Telecom Sector
Russia IT and Outsourcing Industry Forecast to 2011