China Telecoms Industry Report 2023-2028: Mobile Phone Penetration and High Fixed Broadband Take-Up Among Households Will Fuel Future Growth –

DUBLIN–(BUSINESS THREAD)–Added to “China Telecom Industry Report – 2023 – 2028” report offering

This report provides market forecast and revenue analysis as well as China Telecom industry statistics including market size, 5-year forecasts, market insights, key trends in Telecom, 5G, Digital Infrastructure and also features the following :

  • Global telecommunications market by major operators

  • Telecom Operators Profile, Revenue and EBITDA Combination

  • Mobile Revenue and Subscriber Market Overview and Forecasts

  • Spectrum Holdings

  • IoT Market Overview

  • Broadband Subscribers and Revenue Market Overview and Forecasts

  • Digital infrastructure (fiber, telecommunications towers, data centers, submarine cables)

  • Analysis and forecast of the telecommunications tower market

  • Topics/Opportunities related to 5G, M&A and e-commerce

  • Database of telecommunications merger and acquisition transactions

China Telecom Industry at a Glance Report

Globally, the telecommunications sector is proving to be a basic and essential infrastructure service for national economies, and data infrastructure is becoming critical in a connected world and is likely to increasingly attract a new class of investors, such as large infrastructure funds . the publisher expects the Chinese telecommunications industry to remain stable thanks to the defensive nature of the industry amid political uncertainties and an uncertain economic outlook due to the COVID-19 pandemic.

The increasing penetration of mobile phones and the high use of fixed broadband among households will drive future growth over the next five years. According to the China Telecoms Report, the publisher predicts that mobile subscriptions and fixed broadband subscribers will continue to drive the growth of the telecommunications sector in the period 2023-28. More than 390 million people have become Internet users in the past seven years, and another 260 million more Internet users are expected to be online in the next six years by 2028.

Following market expansion over the past 5 years, the publisher predicts sustained revenue growth through 2028, despite population decline and economic uncertainty. The Chinese government is the largest shareholder of the three telecommunications service providers (TSPs), heavily influencing strategy, network investments and pricing for operators and placing great emphasis on the development of the country’s telecommunications infrastructure as it is closely related with the development of the national economy and strengthening of national unification.

Capex investments

The Capex of the Chinese operators is cyclical and the launch of mobiles leads to investments in line with the growth of the main line of the operators. Capital investments peaked between 2015 and 2016 as the three operators built their respective 4G mobile network and fell to a lower level in 2019, but will increase again from 2022 to 2028 as mobile operators invest in 5G, they strengthen their 4G coverage and increase their capacity to meet strong data demand. Capex/GDP ratio increased from 2015 to 2017 and started to decrease from 2017 onwards.

5G is the backbone of a wide range of technological advances, including autonomous vehicles, smart cities and the Internet of Things. To that effect, China is stepping up the long march to 5G with the government instructing its 3 operators to accelerate construction of 5G networks with more than 2.1 million 5G base stations installed by the end of 2022.

Mobile subscribers and revenue

Average annual mobile revenue growth was lower (1.3%) than mobile service subscription growth (3.6%) over the 2015-2021 period, highlighting the structural challenges facing operators mobile phones Decline in voice and SMS revenue, only partially offset by wireless data monetization, is putting pressure on ARPU, exacerbated by reduced dual-SIM capability, which is driving lower mobile subscription growth.

Population growth is an important driver of growth for mobile operators, a slowdown in mobile subscription growth that will put pressure on it in the long term, setting up competition for the three mobile operators fighting for fewer new customers.

According to the Mobile Data Price Benchmark Study, China has had one of the biggest cost reductions per GB over the last 4 years, while India has the lowest rate in the world at just a few cents per GB and Singapore remains expensive.

The publisher estimates that China could end 2022 with about 555 million 5G network subscribers, and that this number could exceed 1.5 billion by 2028 (accounting for about 40% of 5G subscribers worldwide).

Broadband subscribers – FTTH Push to Gigabit Speed

The fixed broadband market is experiencing strong growth driven mainly by China Mobile’s push into the market over the past six years to become the market leader. Fixed broadband subscriptions are very affordable in China generating a lower ARPU than a mobile subscription, a market uniqueness as in most markets, fixed broadband services are usually at least double the price of mobile services.

Fixed broadband penetration is forecast to grow modestly as China’s investments in full fiber networks mature with affordable bundles and higher home broadband penetration growing towards saturation.

Meanwhile, fixed broadband customers opted to upgrade their connections and more than 94% of subscribers opted for FTTH subscriptions with speeds above 100 Mbps.

Theme – Telecommunications infrastructure / 5G / M&A / Infrastructure

Infrastructure funds, pension funds and sovereign wealth funds are allocating high valuation multiples to telecom infrastructure assets such as cell towers, data centers, submarine cable and fiber infrastructure.

Investment funds are assigning high valuation multiples to telecom infrastructure assets such as cell towers, data centers, submarine cable and fiber infrastructure. This report describes some real market examples of how investors view and value these investments with real industry examples and benchmarks and EV/EBITDA benchmarks.

Analysis of the China Telecoms Report’s transaction database highlights a dearth of inbound (domestic) transactions in the Chinese telecom services market, with the largest transaction being telecom operators transferring assets to an infrastructure entity, China Tower Co . However, in the short to medium term, the telecommunications sector is unlikely to experience corporate activity with government control of the sector and telecommunications remains a strategic sector with a low level of debt. The majority of transactions are expected in the data center, IoT and cloud computing sector with many private sector operators and large technology companies such as Tencent, Baidu and Alibaba.

The arrival of 4G moved the Internet from our desktops to our palms and pockets, 5G could transform the network from something we carry to something that takes us around, either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles) , or 5G. The outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, required investments and timing.

Key topics covered:

1 Key statistics

2 General telecommunications market, 2015-2028

3 Profile of telecommunications operators

4 Mobile market

5 Broadband market

6 Investments in telecommunications infrastructure

7 China Telecom Towers Infrastructure landscape

8 Themes / Opportunities

8.1 Consolidation opportunities

8.2 Diversification opportunities

8.2.1 Electronic commerce

8.3 New Telecommunications Operating Model

8.3.1 The attraction of multiple infrastructures

8.4 5G Developments

8.4.1 5G overview

8.4.2 5G – Relative Capex Investments and Frequency Range

8.4.3 5G OpenRAN

8.4.4 Beyond 5G and towards 6G

9 Database of telecommunications merger and acquisition transactions

10 Methodology

11 Copyright notice

Companies mentioned

  • Beijing RLZY

  • China Mobile

  • China Telecom

  • China Tower

  • China Unicom

  • Doctor Peng

  • Guodong

  • Mitena

  • But Netstone

  • Tietong

  • Zhejiang WanXing

For more information on this report, visit


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