Wednesday, 22 February 2012

ANALYSIS: CHINA'S 3G DEV'T TO WITNESS TURNING POINT IN 2011.

BEIJING, March 29 Asia Pulse - Along with constant improvement of the 3G technology and greater internet penetration, China's 3G development will witness a turning point to switch from beginning stage to high growth stage in 2011.

Statistics show that the sales of 3G smart terminals in China had exceeded that of personal computers as of the fourth quarter in 2010 and the data consumption of 3G mobile phone subscribers was significantly greater than that of 2G mobile phone subscribers, representing a rapid growth momentum.

According to statistics released by the Ministry of Industry and Information Technology (MIIT) on March 25, China's 3G mobile phone service subscribers expanded to 55.99 million by the end of February.

China's domestic sales of 3G mobile phones had amounted to 58.53 million as of the end of February 2011, among which, 23 million or 40 per cent were smart phones.

The consumption of 3G mobile phones would be greater in the future and smart phone is to take a greater proportion in 3G mobile phones.

Chang Xiaobing, chairman of China Unicom (SSE:600050, SEHK:0762) estimated that by the end of this year, the proportion of smart phones to all mobile phones would reach 67 per cent, and the fast growth trend will continue in the next two years.

Meanwhile, Chinese basic telecom enterprises' revenue from value-added business exceeded 217.5 billion yuan (US$33 billion) in 2010, accounting for 42 per cent of the industry's total main business revenue, and 194.7 billion yuan was generated from value-added business of mobile data capacity, accounting for 90 per cent of the total revenue from value-added business.

Benefiting from this, the growth rate of the telecom industry's main business revenue hit 9.7 per cent in the first month this year, representing Chinese telecom industry's best performance since the global financial crisis.

At the same time, as Internet penetration continues to rise, 3G mobile phones will be more popular in the future.

The penetration rate of the Internet in China had reached six per cent in 2010, and it would continue to rise significantly this year. With the industry chain getting mature, the performance-to-price ratio of 3G mobile phones would be optimized and the application of 3G mobile phones would be widened, so more and more people would choose 3G mobile phones.

(XIC) ry

29-03 1849

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