The Fixed voice telephony subscription of Telecom industry in China attained a value of 69,015.69 Thousand in 2020
The industry recorded a historical decline (CAGR) of 15% between 2017 to 2020, and is expected to decline by ...
GlobalData projects the industry to decline at a CAGR of ...
The Fixed voice telephony subscription of Telecom industry in China recorded a low-double-digit YoY decline in 2020
The fixed voice telephony subscription of Telecom industry in China declined significantly over the last few years, the fixed voice telephony subscription recorded a low-double-digit YoY decline in 2020.
The Chinese fixed-line telecommunications market is still dominated by China Telecom and China Unicom, which together account for a significant share of the market.
Customers within the market range from individuals to large corporations. Buyer power is weakened by the sheer number of customers, meaning that the loss of a single customer would have little impact on any given player’s revenue.
The number of suppliers is low, as few companies have the necessary ability to supply complex, reliable, and geographically extensive networks. In the case of China, the network was maintained by a state-owned monopoly, which has morphed into a state-owned oligopoly.
Despite recent growth, new entrants may be put off by the increasing popularity of wireless technologies and the strong stance of state-owned incumbent operators. The market faces a strong threat from mobile phones and internet applications, although many operators offer such substitutes themselves and are looking to counter their impact by offering them in bundles with fixed telecom services. Rivalry in the Chinese market is reduced by the lack of active players.
Impact of 5G on fixed lines
The three major telecom operators have used 5G field experiments to help the current rollout of the technology, focusing a lot of their R&D efforts towards 5G and away from fixed-line. China Unicom initially launched a 5G network field test in cities and is jointly developing 5G applications and solutions with its partners. China Mobile launched a 5G field experiment in 2019 and will start the construction of mobile networking to speed up the SDN and Network Function Virtualization (NFV) and bring the next generation of cloud network transformation.
Competitive Landscape
The Chinese fixed-line telecoms market has experienced moderate growth in 2020 as the market decelerated, a trend which looks set to continue. The market consists of market leaders China Mobile, China Telecom Corporation Limited and China Unicom. The market leaders are all based in China, indicating the strong presence of Chinese fixed-line providers in the market. All market leaders are also state owned showing the government’s control over the market. The majority of the market leaders distinguish their services based on prices, broadband speed, customer service, network coverage and availability. The market players usually create partnerships with mobile virtual network operator (MVNO) companies, in order to provide fixed-line network for the right price. In addition, the market players are raising capital in the forms of debt offering by issuing bonds, venture financing by launching new shares and fighting competition through acquisitions. Due to the COVID-19 outbreak the fixed-line telecommunication providers have been forced to provide consumers who struggle financially with flexible contracts, implement caps on internet speeds due to high usage and provide free services to consumers who work in frontline such as doctors, nurses and other key workers.
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