Backed by the introduction of 3G technology, a rise in mobile subscribers and various other factors, China has evolved as the fastest growing telecom market in the world.

As per the statistics released by the Ministry of Industry and Information Technology, the operating revenue of China's telecommunication industry in 2009 reached RMB 870.73 Billion, reflecting a year-on-year growth of 4.1%, according to the news published by China Knowledge.

In 2009, core business revenue of China’s telecom industry was RMB 842.43 Billion, up 3.9% from 2008. The revenue from mobile telecom business touched RMB 509.09 Billion, up 13.2% year-on-year, and this accounted for 16.1% of the overall core business revenue.

There was an increase in mobile subscribers in 2009, which led to the growth of China’s telecom revenue. Increasing competition and low mobile penetration in the rural market considerably supported the industry. Then, factors such as reduced tariff charges and falling handset prices have reduced the entry barrier for prospective subscribers.

The number of subscribers also increased due to the introduction of 3G technology. Total users of 3G mobile technology in China touched 13.25 Million as of the end of 2009.

2009 was the debut year for 3G technology in China, and generally, a telecom operator needs eight to ten months to complete its network deployment; still, there was a remarkable increase in the number of 3G subscribers in the year.

The Chinese telecom service providers had been very active in winding up the establishment of 3G networks in major Chinese cities in the first three quarters of 2009, and in Q4 2009, the number of 3G users started to take off.

The telecom operators in the country demonstrated unmatched aggressiveness in the deployment of 3G networks last year; the overall investment in network expansion and upgrading stood at RMB 160.9 Billion in 2009.

According to “3G Market Forecast to 2013”, a latest market research report by RNCOS, on account of this significant growth, the total numbers of 3G users are projected to reach 120 Million by 2013.

According to a Research Analyst at RNCOS, “China has come forth as the biggest and the most rapidly growing telecom market in the world. In 2008, China exceeded the US in terms of mobile subscriber base. Hence, by giving ample opportunities to the companies, China’s telecom market remains lucrative for both foreign and domestic players in the near future.”

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