Wired Telecommunications in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
6011Revenue
$7.5bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
265k
Businesses
3
Wages
$X.Xbn
Wired Telecommunications in China industry analysis
The Wired Telecommunications industry is part of the telecommunication services sector. In terms of revenue, the industry is the second largest in the sector, after the Mobile Telecommunications industry (IBISWorld report 6012). However, the industry's share of telecommunications sector revenue has been declining since the early 2000s. Mobile telecommunications have rapidly developed over the past decade with both third-generation (3G) and fourth-generation (4G) mobile technology, allowing more consumers to substitute fixed-line telecommunication services with mobile ones. Additionally, fifth-generation (5G) mobile technology started commercial application in 2019. As of December 2020, China had announced more than 250 million fifth-generation (5G) users. This trend is well reflected in the total number of fixed-line subscribers, which is expected to decrease by 4.8% in 2023, to 157.7 million, as smartphones continue to grow in popularity. Industry revenue is anticipated to decline at an annualized 4.8% over the five years through 2023. This includes an expected fall of 5.0% in 2023, to $7.5 billion. Industry profit margin is estimated at 10.0% in 2023.The industry remains under strict government control. In May 2008, the government announced a restructuring plan for the country's fixed-line and mobile operators, which represented a final step toward the long-awaited release of third-generation (3G) mobile licenses. The plan merged or split the operations of Chinese carriers, creating three new operators offering mobile and fixed-line services: China Telecom, China Netcom, and China Tietong Telecommunications. However, China Tietong Telecommunications merged with China Mobile Communication Corporation in 2008.The restructuring aimed to promote homegrown innovation by telecommunications services providers, and enhance service capabilities and quality. The restructuring also altered the regulatory framework governing the telecommunications sector in China. The new entities have nationwide network resources, comparable scale and standing, full-service capabilities and competitive strength to help optimize the allocation of telecommunications resources and foster market competition.Industry revenue is projected to decline at an annualized 4.7% over the five years through 2028, to $5.9 billion. Industry competition is anticipated to become more intense over the next five years, especially in terms of voice quality, call cost and service types.
Trends and Insights
- The industry's share of telecommunications sector revenue has been declining. Mobile telecommunications have rapidly developed over the past decade with both fourth-generation (4G) and fifth-generation (5G) mobile technology.
- Fixed-line local call services is the largest segment but decreasing. The share of fixed-line local call services has decreased due to the rapid popularization of smart phones.
- Developed economies and large population demand more service. Regions with economic bases or large population demand large amount wired telecommunications.
- Rapid development of wireless telecommunications. The cost of wireless telecommunications is lower. People are more convenient to use, especially mobile phones.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 4.8 % over the past five years, to reach an estimated $7.5bn in 2024.
Trends and Insights
The Wired Telecommunications industry in China remains one of the largest in the world
- Despite shrinking over the past five years, the Wired Telecommunications industry in China remains one of the largest in the world.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Revenue for the Wired Telecommunications industry is projected to continue falling
- Revenue declines are projected to slow as the industry approaches a lower base and remaining fixed phones are mainly used for office work, which represents a relatively stable market.
Biggest companies in the Wired Telecommunications in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Wired Telecommunications in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Fixed-line local call services, Fixed-line long-distance call services and Fixed-line value-added services. Fixed-line local call services is the largest segment of the Wired Telecommunications in China.
Trends and Insights
Fixed-line local call services
- Fixed-line local call services are the industry's main product segment and are expected to account for 57.0% of total industry revenue in 2023.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Mobile Telecommunications in China
- Internet Services in China
Complementors
- Satellite Transmission Services in China
International industries
- Wired Telecommunications Carriers in the US
- VoIP in the US
- Dark Fiber Network Operators in the US
- Wired Telecommunications Carriers in Canada
- Wired Telecommunications Network Operation in Australia
Table of Contents
About this industry
Industry definition
The Wired Telecommunications industry in China comprises establishments providing voice, data, image, multimedia and information services through fixed-line telephone networks. Telecommunication services provided by dedicated telephone networks within some specialized industries and institutions, such as power generation, police, oil, aviation and railways, are not included in this industry. In addition, the industry does not include content providers of value-added services.
What's included in this industry?
Fixed-line local call servicesFixed-line long-distance call servicesFixed-line value-added servicesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
GLOBAL SYSTEM FOR MOBILE COMMUNICATION (GSM)CODE DIVISION MULTIPLE ACCESS (CDMA)PERSONAL HANDY-PHONE SYSTEM (PHS)VOICE OVER INTERNET PROTOCOL (VOIP)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry's share of telecommunications sector revenue has been declining. Mobile telecommunications have rapidly developed over the past decade with both fourth-generatio...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Fixed-line local call services is the largest segment but decreasing. The share of fixed-line local call services has decreased due to the rapid popularization of smart phone...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Developed economies and large population demand more service. Regions with economic bases or large population demand large amount wired telecommunications.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Rapid development of wireless telecommunications. The cost of wireless telecommunications is lower. People are more convenient to use, especially mobile phones.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Stated-owned companies dominate the market. State-owned capital dominates the industry to guarantee the stable wired telecommunications service supply and safety.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Policy support drives industry development. In recent years, the State Council, the National Development and Reform Commission, the Ministry of Industry and Information Techn...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
High profits in the wired communication industry. The industry is highly profitable in China as it is monopolized by three fixed-line telecommunication carriers.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Wired Telecommunications industry in China in 2024?
The market size of the Wired Telecommunications industry in China is $7.5bn in 2024.
How many businesses are there in the Wired Telecommunications in China industry in 2024?
There are 3 businesses in the Wired Telecommunications industry in China, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Wired Telecommunications industry in China grown or declined over the past 5 years?
The market size of the Wired Telecommunications industry in China has been declining at a CAGR of 4.8 % between 2019 and 2024.
What is the forecast growth of the Wired Telecommunications industry in China over the next 5 years?
Over the next five years, the Wired Telecommunications industry in China is expected to decline.
What does the Wired Telecommunications in China include?
Fixed-line local call services and Fixed-line long-distance call services are part of the Wired Telecommunications industry.
How competitive is the Wired Telecommunications industry in China?
The level of competition is low and steady in the Wired Telecommunications industry in China.
