Apple Pest Analysis
CHINA’S TELECOMMUNICATIONS INDUSTRY INTRODUCTION China has developed a huge telecommunications sector. Today China is one of the largest telecom subscribers in the world’s telecommunication market. China’s telecommunications industry started to expand during early 1990s due to economic growth, technological improvements, low tax rates, and institutional changes, which allowed competition. Figure 1 shows that electronic-telecom industry had the fastest growth of sales revenue during 1990-2000 in the manufacturing sector. [pic] Source: China Statistical Yearbook, 1990, 1995, 2000 The situation in telecommunication industry today differs from the one that was a decade ago. This paper focuses primarily on current issues in telecommunication industry. It briefly discusses government regulation of the telecommunication infrastructure since the People’s Republic of China was established (1949), outlines current government policies, describes major companies in telecommunication business and their competition, and provides information on recent developments of the telecommunications industry.
GOVERNMENT REGULATION OF THE TELECOMMUNICATION INDUSTRY During the Mao Zedong’s years (1950’s-1970’s) mainly politicians and military personnel were allowed to use telecommunications service in People’s Republic of China. Telephones were considered luxurious goods. In 1949 there were only 263,000 telephones with 310,000 telephone lines (Ding Lu, 2003). But at the end of the Cultural Revolution politicians realized that industrialization process in modern society could not be accomplished without reliable communications systems. And in 1975 the number of the telephone lines increased to 3.48 million (Ding Lu, 2003). In 1970’s the State Council enabled the Ministry of Post and Telecommunications (MPT) to operate post and telecommunications sectors. Under MPT local post and telecommunications administrations (PTE) were
GOVERNMENT REGULATION OF THE TELECOMMUNICATION INDUSTRY During the Mao Zedong’s years (1950’s-1970’s) mainly politicians and military personnel were allowed to use telecommunications service in People’s Republic of China. Telephones were considered luxurious goods. In 1949 there were only 263,000 telephones with 310,000 telephone lines (Ding Lu, 2003). But at the end of the Cultural Revolution politicians realized that industrialization process in modern society could not be accomplished without reliable communications systems. And in 1975 the number of the telephone lines increased to 3.48 million (Ding Lu, 2003). In 1970’s the State Council enabled the Ministry of Post and Telecommunications (MPT) to operate post and telecommunications sectors. Under MPT local post and telecommunications administrations (PTE) were
Cited: Lu, Ding. (2003). China’s Telecommunications market: Entering a New Competitive Age. Cheltenham, UK; Northampton, MA: Edward Elgar. Reuvid, J. and Li Yong. (2005). Doing Business with China. London; Sterling, Va: GMB Pub. , accessed June 3, 2007. Xiaojuan, J. (2001). China’s Industry in Transition: Organizational Change, Efficiency Gains and Growth Dynamics. Huntington, NY: Nova Science Publishers. Williams, J. (1999). Business Opportunities in Northeastern China. New York: Prentice Hall. Wong, J. (2002). China’s Economy into the New Century: Structural Issues and Problems. River Edge, NJ: World Scientific.