review of telecommunications dl t drf ichidevelopment and ... · • mobile subscribers: 711 mln.,...
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2009 CHINA/U.S. LEGAL EXCHANGE
Review of Telecommunications D l t d R f i ChiDevelopment and Reform in China
Shi YuchunShi YuchunDepartment of Policies, Laws and Regulations
MIIT China
ContentContent
I. Telecom Development
II. Telecom Reform
III. Trends Analysis
22
I Telecom DevelopmentI. Telecom Development
1.Telephone subscribers increase continually
– Total number:1.37 bln., 1/5 of the world subscribers
• Fixed subscribers: 326 mln., 4 times of those in 1998
• Mobile subscribers: 711 mln., 28 times of those in 1998
33
Development of Chinese Telephone S b ib i 1998Subscribers since 1998
120000
82889. 4
91273. 4
98203. 4
80000
100000
64726. 7
74386. 1
60000
80000
bers
(x10
000)
42103. 5
53199. 8
40000
Subs
rib
11128. 414876. 8
22936. 2
32599
20000
44
11128. 4
01998年 1999年 2000年 2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年
Year
• Telecom sector develops as a fundamental and pleading industry
F 1st t l h i t ll d i 1882 t 10 l– From 1st telephone installed in 1882 to over 10 mln. subscribers in 1992: 110 years
– From 10 mln. subscribers to 100 mln. subscribers in 1998: 6 years
– From 100 mln. subscribers to 200 mln. subscribers in 2000: 2 years000: yea s
– Since 2001: increased by 100 mln. new subscribers annually
55
annually
2. Telephones penetration rate increases significantly
– Penetration rate: 77.4 subscribers per 100 inhabitants
• Fixed-telephones: 24.9 subscribers per 100 inhabitants
• Mobile-telephones: 52.5 subscribers per 100 inhabitantsp p
– Telephone-connected villages: 99.7%
– Telephone-connected natural villages (villages with more
66
than 20 households): 92.5%
Growth of Chinese Telephones Penetration Rate since 1998Penetration Rate since 1998
69 4
74. 3
70
80
57. 3
63. 4
69. 4
60
42. 1
50. 8
40
50
ion
Rate
(%)
25. 9
33. 74
30Pene
trat
10. 5313
20. 1
10
20
770
1998年 1999年 2000年 2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年Year
3.Substitution of mobile telephones to fixed telephones continuestelephones continues– Mobile Subscribers
• Oct 2003: overtook fixed subscribers• Oct. 2003: overtook fixed subscribers• Up to Aug. 2009: 2.2 times of fixed subscribers
– Fixed Subscribers– Fixed Subscribers• Aug. 2007: decreased monthly• Up to Aug 2009: decreased by 46 47mln Subscribers• Up to Aug. 2009: decreased by 46.47mln. Subscribers
– Margin between mobile and fixed subscribers: 400 l
88
400 mln.
Substitutive Effect of Mobile Telephonesto Fixed Telephonesto ed e ep o es
64123
70000
54728. 6
50000
60000
35043. 336781. 2 36544. 8
34080 433482 4
39342. 8
46108. 2
40000
ers(
x100
00)
固定电话移动电话f
21441. 9
26330. 5
31244. 334080. 4
20661. 6
26869. 3
33482. 4
20000
30000
Subs
crib
e 移动电话f
8742. 110871. 6
14482. 9
18036. 8
8453. 3
14522. 2
10000
20000
99
2386. 34005. 2
01998年 1999年 2000年 2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年
Year
4. Internet develops rapidly
– Internet users: 338 mln., 160 times of those in 1998
– Penetration rate: 23.9 users per 100 inhabitants
– Broadband internet users: 270 mln over 90% ofBroadband internet users: 270 mln., over 90% of
internet users
– Websites: over 2.88 mln. , 543 times of those in 1998
1010
Development of Chinese Internet Users since 1998
2980030000
35000
25000
2100020000
rs(
x100
00)
9400
11100
13700
10000
15000User
3370
5910
7950
9400
5000
1111
210890
2250
01998年 1999年 2000年 2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年
Year
5. Competition framework farther optimizes
Basic telecom sector– Basic telecom sector
• China Telecom 249 mln. subscribers
• China Mobile 490 mln. subscribers
• China Unicom 243 mln. subscribers
– Value-added telecom sector
• Over 20 thousand service providers
• Over 94% providers contain private or foreign capital
1212
Subscribers Share ofBasic Telecom Operatorsas c e eco Ope ato s
Chi na Tel ecom25%
Chi na Uni com25%
1313
Chi na Mobi l e50%
6. Telecom tariff drops steadily
Telecom tariff level of Aug 2009 drops 8 41% as– Telecom tariff level of Aug 2009 drops 8.41% as
compared with July 2008
– Telecom tariff level drops 60% accumulatively from
1998 to 20081998 to 2008
– One-way charge of mobile telephones basically
achieves
1414
Telecom Tariff Level since 1998
0. 89 0. 90. 9
1
0. 78
0. 68
0. 81
0. 680. 7
0. 8
volu
me
0. 56
0. 50. 5
0. 6
reve
nue/
sevi
ce
0. 44
0. 390. 36
0. 3
0. 4
Tele
com
serv
ice
0. 1
0. 2
1515
01998年 1999年 2000年 2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年
Year
II Telecom ReformII. Telecom ReformTelecom liberalization deepens continuously
O 9 VAS
Telecom liberalization deepens continuously
Open 9 VAS todomestic investors
Entry into WTOOpen to foreign investors Issue 3 3G licenses
1993 200220011994 2000 2009
New round of telecom restructureEstablish China Unicom Establish China Tietong
1616
New round of telecom restructure,Further breaking up fixed monopolyBreaking up mobile monopoly
gBreaking up fixed monopoly
2 Telecom enterprises restructure2. Telecom enterprises restructure
中国卫星集团公司
DirecT
中国电信集团公司
铁道通信责任公司
ctorate GTelecom
,
中国网络通信中国网络通信Former China Telecom Group
中国移动通信集团公司中国移动通信集团公司
General oM
PT
中国移动通信集团公司中国移动通信集团公司
中国联合通信有限公司中国联合通信有限公司
of
1717
20021994 1999 20012000
Telecom enterprises restructure in 2008
Basic telecom services
p
CDMA network
1818
2002 2008
3.Regulatory authority gradually consummates
MII established, separation of Post and
Local telecom d i i t ti t bli h d
Dept. of Telecom d i i i
MIIT establishedpTelecom administrations established
compe
Administration, MPT
1993 1998 2000
Create fair
etition environ
2008
Separation from enterprisesSeparation from enterprises
nment
1919
p pp p
Establishment of MIIT
• MIIT was established according to “The Reform Program of Institutions of State Council” approved by the 1st session of the 11th NPC in 2008
Industry management responsibilities of NDRC
COSTIND, excluding responsibility for nuclear power MIIT
MII
2020
SCITO
• Main responsibilities of MIITFormulate industrial plan industrial policies and– Formulate industrial plan, industrial policies and standards and organize their implementation
– Monitor daily operation of industry
– Promote the development and independent innovationPromote the development and independent innovation of major technologies and equipment
R l i f i i– Regulation of communications sector
– Direct and promote the informatization
2121– Coordinate and safeguard national information security
4. Legislation consummate in the process of reformL– Law• Decision on Safeguarding internet security, NPC
– Administrative Regulations of State Council– Administrative Regulations of State Council• Regulations on Telecommunications• Measures on Administration of Internet Information
Services• Regulations on Administration of Foreign-Invested
Telecommunications EnterprisesTelecommunications Enterprises• ……
– MIIT rules• Administrative Provisions on Telecom Services Operation
and Licensing•
2222
• ……
III Trends AnalysisIII. Trends Analysis• Telecom reform and regulation shall be adapted to
social and economic development and technology advancementdv ce e
– Convergence of industrialization and informatization
– Convergence of telecom, broadcasting networks and
internet
– Effective competition
2323
– Promulgation of Telecommunications Law
Thank youThank you
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