BEIJING, April 17 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, outlined the development trend of the global 3G market.
1. Current status of the world communications industry
Amid a booming macro economic environment, the global communications industry has maintained a growth momentum for 2 consecutive years following its recovery in 2003 and 2004. The communications industry has entered a new growth period. In 2006, production value in the global communications industry reached $1.79 trillion, a significant growth of 6.6% compared to 2005.
For more on “Size of the Global Communications Industry”, please refer to http://www.ccidconsulting.com/upload/11429.gif .*
(1) Current status of telecom operation development
In 2006, the telecom operation industry grew steadily. Revenue for the whole year reached $1.4323 trillion, up by 6.2% over 2005.
For more on “Size of the Global Telecom Operations Industry”, please refer to http://www.ccidconsulting.com/upload/11430.gif .*
In summary, the telecom operation industry showed the following features in 2006:
-- Mobile communications services grew fast. In 2006, the world’s
mobile communications users topped 2.5 billion, up by 26.3% over 2005.
Mobile communications drove up the fast growth of the global telecom
market.
-- Voice services were the main contributor to telecom operating
revenues. However, there was a gradual drop in its percentage share
in the total telecom revenues. Voice services entered a stage of
saturation, with the growth slowing down. Despite of this continuous
trend, voice services remained the dominant sector in the mobile
communications market.
-- Commercial use of 3G gathered pace. Preliminary successes in 3G
services development have been made so far, and the network building
gathered pace. In 2006, the number of 3G mobile phone users in the
world topped 100 million, far exceeding the growth of GSM users during
the same period.
-- Operators entered a stage of in-depth transformation. To adapt to
market competitions under a trend of network integration, telecom
operators have entered a stage of in-depth transformation and fully
penetrated into the industry chain.
-- There were frequent M&As between operators. To lower operating
costs, telecom operators have become integrated services providers
through M&As. Another driving force for M&As is the profit appeals of
new markets.
(2) Current status of the communications equipment manufacturing industry
After experiencing the Asian Financial Crisis and global economic recession, the world communications equipment manufacturing industry started to recover in 2003, and has been growing ever since. In 2006, production value in the industry reached $361.8 billion, up by 7.7% over 2005.
For more on “Production Value and Market Size of the Global Communications Equipment Manufacturing”, please refer to http://www.ccidconsulting.com/upload/11431.gif .*
The communications equipment manufacturing industry showed the following features in 2006:
-- The percentage of wireless communications products continued to
rise. With the development of technology and telecom services, there
is a growing demand for communications services. This is also the
case of wireless communication products, which have seen a notable
rise in their percentage.
-- Mobile terminals became a flashing point of profits. The
continuous fast growth of mobile communications users has made the
mobile phone-dominated terminals market active. Terminal making has
become a flashing point in the industry.
-- Product manufacturing shifted to China, India and Eastern Europe.
Under global economic globalization, communications equipment
manufacturing is shifting to China, India and Eastern Europe, with
China as the most important region for industry transfer.
2. Development trend of the global communications industry
The communications industry is a strategic and pillar industry of all economies. Most countries are developing towards an information society with communications industry and IT applications as the backbone, hence as a strategically important industry, there are plenty of new development opportunities and a bigger room for growth. This is particularly true of the mobile communications industry. Currently, the mobile phone penetration rate in the world is under 50%, while new markets have huge potentials. Mobile communications will continue to keep the world telecom market in a growth momentum. In the next 5 years, the global communications industry is anticipated to grow at a rate of around 6.5%, with the following trends:
-- Mobile communications will be a driving force of the global
communications industry. As the global economy maintains its growth
momentum, the global communications industry will continue to maintain
a stable growth in the next 5 years.
-- Voice services will continue to be the main source of telecom
operation revenues. In the telecom operation industry, voice as the
basic telecom services will continue to contribute most of the telecom
operation revenues. Particularly in the new markets, meeting the need
for basic voice services is still the primary task.
-- 3G applications will reach a peak. In different countries, the
telecom market is at different stages, with 2G reaching a certain user
penetration rate. This is particularly true in developed regions.
However, there has been a gradual drop in the ARPU value’s reliance on
voice. The new market space has shrunk. Under such a situation,
operators need to develop new telecom products and services. 3G
applications stem as the significant choice for most operators.
Through several years of exploratory efforts, 3G has basically
matured. 3G will enter a peak period of promotion and application.
-- Telecom operators worldwide will speed up their penetration into
all markets. As their transformation deepens, operators will not be
content with their status as the telecom services carrier. In fact,
their position in the whole communications industry chain determines
that they will fully penetrate into the whole industry in an attempt
to dominate in the chain. One important measure for them is to
transform into integrated services providers. Through such means as
M&As, they will offer various telecom services such as fixed phone,
mobile phone and broadband access. Meanwhile, they will cooperate
with CPs and application developers, or they become CPs and
application developers. Another important measure is to get involved
in the manufacturing of communications equipment, particularly
terminal products. Through terminal customization, operators solidify
services into terminals and thus strengthen user control.
-- Mobile terminals will continue to be a flashing point of profit in
the communications equipment manufacturing industry. The rapid growth
of mobile users worldwide provides a big market for mobile terminals,
particularly mobile phones. Mobile terminals will continue to perform
strongly.
-- The industry will continue the shift to developing countries such
as China and India. India will be another key region following China,
for the industrial transfer. Adapting to the world trend of
globalization and IT applications, East Asia will transform its
industrial structure along the hi-tech direction. For the first, its
industrial structure will come into line with the world development
trend. After completing their capital accumulation, OEM enterprises
will start to penetrate to the high end in the industry chain. In the
whole region, a complicated industry system will emerge in which
vertical and horizontal division of work coexists.
* Source: CCID Consulting, Jan. 07
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 the 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 contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
