BEIJING, Aug. 31 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), releases its article on China's continuing, fast and steady growing telecom market.
I. Overall Size
In the global communication business industry, user accounts amount to 32.6% of a carrier's total revenue and 37.3% of total profit. Consumers are represented in small numbers but have high ARPU value. In the Chinese market, revenue from consumers reached 79.97 billion Yuan in the first half of 2007, up 21.3% year-on-year, accounting for 23.4% of the total revenue in the market. China is now realizing the importance of its consumers, which means that there is much room for growth in the market.
Fig. 1 Growth of China's Industry-Specific Telecom Market, 2004-2006
http://www.ccidconsulting.com/upload_fr/07083001.jpg
Source: CCID Consulting, July 2007
II. Market Characteristics
1. The scope of telecom applications across all industries has expanded.
From unattended ticket systems on municipal buses in the
transportation industry, to mobile phone banking and securities in
the financial services industry, to integrated emergency
command systems and mobile SMS platforms in the government sector,
to long-distance education and direct home education vehicles in the
educational sector; many sectors have successfully tailored telecom
applications to their industry needs. It can be said that industry-
specific telecom solutions are bringing tremendous social and
economic benefits to more and more of its consumers.
2. Competition between telecom companies that offer similar services to
users is intense. Basic telecom services for consumers include
Internet access, renting bandwidth and voice services for
enterprises. In this market, carriers provide homogenized services,
resulting in fierce price competitions. This has forced carriers
into a vicious cycle of low price competition.
3. Value-added services for industry-specific telecom applications
continue to develop. China's industry-specific telecom services
market is now in a transitional period from basic telecom services
to value-added services. In specific industries, carriers have
integrated telecom applications, software systems and total online
service solutions with specific industry needs. These solutions are
more profoundly integrated with the industry’s consumer information
systems, and production and services processes, which attract many
customers.
III. Market Structure
1. User structure
CCID Consulting has divided China's CT industry market into
financial services, energy, transportation, telecom, postal services,
healthcare, media market, construction, government education, family,
research and others. In regards to the industry-
specific telecom application market, the sectors discussed are
financial services, logistics, education, government, oil, coal and
power.
From the analysis of the market segments in the telecom industry, we can see that with the approach of the 2008 Beijing Olympic Games, there has been a big increases in the input of telecom applications in all sectors. This is reflected in the horizontal expansion scale and new business expansion models. The increases are particularly outstanding in the financial services, government and logistics sectors.
Fig. 2 Distribution of China's Industry-Specific Telecom Application
Markets in 2006
http://www.ccidconsulting.com/upload_fr/07083002.jpg
Source: CCID Consulting, July 2007
Note 1: The data does not include telecom applications in the telecom
industry itself.
Note 2: The logistics industry is a concept in the broad sense. In
other words, the logistics concept covers circulation,
transportation and postal services industries.
2. Carriers' market structure
Thanks to its historical fixed network resources, China Telecom has
many advantages over its competitors. It is in a monopolistic
position in building an enterprise’s network infrastructure. Its
main products include network and private line leasing. China Mobile
is mainly oriented towards personal users. Its corporate clientele
is relatively weak. But, starting from 2003, the company has
implemented an exquisite product project for corporate clients, and
has opened a series of applications tailored to industry needs. It
has gained certain achievements in the industry feature application
field for corporate clients. Other carriers have also offered
corresponding industry applications in relation to their own
needs. The following figure shows carriers' shares of
China's industry-specific telecom market.
Fig. 3 Distribution of China's Industry-Specific Telecom Application
Markets in 2006 --- By Operator
http://www.ccidconsulting.com/upload_fr/07083003.jpg
Source: CCID Consulting, July 2007
IV. Trend and Forecast
In the first half of 2007, telecom applications in various industries made comprehensive progress. All industry-specific markets expanded in size, mainly due to carriers' increased inputs to customers and the full-scale expansion of enterprise network market. CCID Consulting forecasts that in the second half of 2007, the industry-specific telecom application market will continue to maintain a rising trend. For the whole year, the market will reach a size of 127.49 billion Yuan.
Currently, China's industry-specific telecom market is now in a full transitional period from basic telecom services to value-added services. It can be foreseen that telecom applications will become integrated into industries. The rapid development of communication technology will generate new demand. In the next few years, the industry-specific telecom market will have much room to grow.
Fig. 4 Forecast for Trend of China's Industry-Specific Telecom Market,
2007-2009
http://www.ccidconsulting.com/upload_fr/07083004.jpg
Source: CCID Consulting, August 2007
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
For more information, please contact:
CCID Consulting Co., Ltd.
Cynthia Liu
Coordinating Manager
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
