China Telecom Restructuring Enticing Foreign Operators

Delhi, India (PressExposure) January 31, 2009 -- According to our new report, “Restructuring and 3G - New Dimensions for China Telecom Sector”, foreign telecom players, who have been waiting for a long time to serve the Chinese wireless market, are now considering giving shape to their plans of entering the world’ largest and highly lucrative telecom industry, China.

Various foreign players, such as SK Telecom of South Korea and Telefonica (the second largest phone company of Europe), already enjoy substantial stakes in China’s fixed-line operators, China Telecom and China Netcom. “Restructuring of the Chinese telecom industry would give these players an opportunity to bring their mobile business to the country, as the domestic partners now have access to the country’s wireless market”, says an analyst at RNCOS. For instance, SK telecom, which held 6.61% of China Unicom’s total equity before the telecom industry reorganization, is seeking suitable opportunities to raise its stake in the company.

As if to reward these moves, the Chinese government announced in September 2008 that it would relax access to its telecom industry for foreign investors by cutting minimum investment criteria by as much as 50%. We anticipate that deregulation by the government may trigger an influx of foreign investment in the Chinese telecom sector.

Also, the government’s move to finalize issuance of 3G licenses in the first week of 2009 has opened up new avenues for foreign biggies to venture into the market as the market will create huge thirst for capital among Chinese telecom operators, who are actively expanding and upgrading their existing networks in order to gain a favorable position in the country's most promising 3G environment.

The report, “Restructuring and 3G - New Dimensions for China Telecom Sector”, also studies various areas of opportunities emerging in line with the ongoing technological developments in the Chinese telecom industry. It thoroughly evaluates the current performance of domestic telecom industry, inclusive of fixed-line, mobile, Internet and broadband on various parameters, like subscribers, penetration and service providers’ share.

The research offers five-year forecast and analysis on various telecom segments, based on numerous macro- and microeconomic factors, industry specific databases, and our in-house statistical and analytical model. This report has been made to give clients an insight into the telecom market and emerging technologies, such as Mobile TV, IPTV and WiMAX.

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About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts who analyze data collected from credible sources. We provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

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Press Release Submitted On: January 31, 2009 at 3:09 am
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