Daniel Slotta
Research expert covering Greater China
Telecommunications industry in China - statistics & facts
China’s telecommunication industry has been the backbone of the country’s tech rise. The ubiquitous availability of mobile payments and other online services that shape life in China would not have been possible without extensive coverage of fast and reliable mobile network. Thereby, the three big telecom companies were responsible for building the network infrastructure and bringing 5G to the market.
Because the telecom companies are at least partially state-owned, they operate in the space between market competitors and extended arms of the state. On the one hand, the three operators compete in the market for the business of over one billion smartphone users. On the other hand, they cooperate to execute the development objectives of the state. For instance, in 2019, China Unicom and China Telecom have entered a joint mission to build the national 5G infrastructure.
Chinese smartphone companies were quick in bringing 5G devices to the market. Vivo, Xiaomi, and OPPO shipped about 58 million units of 5G smartphones per quarter in 2021, just two years after the launch of the 5G services. A year later, in 2022, over 80 percent of smartphone shipments were capable of accessing the 5G network. This fast-to-market strategy of end devices enabled the 5G adoption rate to grow quickly.
Three pillars of the Chinese telecommunications services
As a result of the reconstruction and acquisitions in 2008, the Chinese telecommunications market was dominated by three state-controlled telecommunications service operators: China Mobile, China Telecom, and China Unicom. While China Mobile focused on providing mobile services, China Telecom and China Unicom were also issued with nationwide fixed-line licenses. Today, all three companies provide a comprehensive selection of services.Because the telecom companies are at least partially state-owned, they operate in the space between market competitors and extended arms of the state. On the one hand, the three operators compete in the market for the business of over one billion smartphone users. On the other hand, they cooperate to execute the development objectives of the state. For instance, in 2019, China Unicom and China Telecom have entered a joint mission to build the national 5G infrastructure.
The age of 5G
With almost 1.7 billion mobile subscriptions, China has become the country with the largest mobile-cellular user base worldwide. When 5G (fifth generation) technology started to sweep through the market in 2019, China became one of the front-runners in the global 5G deployment and 5G devices production race.Chinese smartphone companies were quick in bringing 5G devices to the market. Vivo, Xiaomi, and OPPO shipped about 58 million units of 5G smartphones per quarter in 2021, just two years after the launch of the 5G services. A year later, in 2022, over 80 percent of smartphone shipments were capable of accessing the 5G network. This fast-to-market strategy of end devices enabled the 5G adoption rate to grow quickly.
What’s next?
After the successful rollout of the 5G mobile network, the Chinese telecom industry is already working on the sixth-generation mobile network technology. After large investments of telecom operators in 5G infrastructure in the early stages of the rollout, the companies have announced that they plan to reduce their capital investment. Instead, they want to look ahead and begin leading China into the 6G future.
