How China is using telecoms to support its growth strategy
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China has a reputation for red tape and bureaucracy but despite these limitations the country's telecommunications sector has experiencing breakneck growth since Beijing restructured the telecom market in 2008. China Telecom alone added 66 million mobile
One reason for the rapid growth is that the development of mobile technology is part of a national development plan. The Chinese government recognizes that having a fully functional mobile telecommunications system in a country as immense and populous as China is one of the best ways to aid commercial, economic and educational development.
Deploying cellular services is cheaper, faster and more efficient than installing costly fixed-line networks in a vast country without an established telecommunications infrastructure. Furthermore, the advantages of the more recently deployed mobile broadband or third-generation (3G) cellular services are myriad. Consumers can access data-rich content, conduct numerous commercial transactions from their handset such as paying bills, shopping and banking online, and connect with a host of other services, ranging from social media to telehealth consultations.
Such technologies provide a massive boost to learning for schoolchildren, especially those in more remote areas without access to other educational resources. Furthermore, high-bandwidth wireless communications enable businesses to communicate more efficiently and to provide a more diverse range of products and services.
Since the first 3G licenses were granted to three state-owned enterprises in January 2009, China’s wireless Broadband operators have been aggressively rolling out networks and expanding capacity to increase coverage across the country and build demand for the service. This saw 3G subscribers top 136.6 million in January, up from about 50 million a year earlier, according to figures published by the Ministry of Industry and Information Technology. The overall mobile market grew by almost 15% year-on-year to 996.6 million subscribers, more than four times the number of people using fixed-line telephones. While 3G subscribers increased by 8.8 million during January, broadband internet users rose by just 2.51 million to 152.51 million, demonstrating the strength of demand for high-bandwidth mobile communications.
Despite this impressive growth, it’s still relatively early days for 3G in China, with penetration currently about 14% of the population compared with approximately 75% for overall mobile services. The expansion of 3G is not without its problems either. Different operators are using different bandwidths and technologies, making it difficult for customers to move from one provider to another, or roam on another domestic network. However, handset manufacturers have devised their own solutions and have already started to produce new mobile phones which are compatible not only with a range of frequencies, but also a range of three or four technologies.
China is betting that mobile broadband can provide a significant, shot in the arm for the economy and support overall social and educational development.
Thailand and the National Broadcasting and Telecommunications Commission should take note of this as the development of 3G and 4G services in Thailand will be a key factor that will assist Thailand to compete in the Asean Economic Community.
