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China's Number of Value-added Telecom Service Enterprises Exceeds 79,100

CAICT, 2/28/20

As of the end of January 2020, China's total number of enterprises holding a value-added telecommunications service license reached 79,148, up 0.90% month-on-month, reports the China Academy of Information and Communications Technology (CAICT), a department of China's Ministry of Industry and Information Technology (MIIT). Of this total, 19,358 were cross-regional enterprises licensed by the MIIT, down 0.05% MoM, and 59,790 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 1.21% MoM.

Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 19,358 cross-regional enterprises, 4,772 are registered in Beijing, 3,972 in Guangdong, and 1,917 in Shanghai, for a combined total of 55.1%.

Among the 59,790 local enterprises, 12,289 are registered in Beijing, 7,447 in Guangdong, and 6,365 in Zhejiang, comprising a combined 43.7% of the nation's total local value-added telecom service enterprises. The next largest concentrations are in Jiangsu, Shanghai, and Sichuan, which, combined, comprise another 17.7% of the total, meaning that 61.4% of China's local value-added telecommunications companies are concentrated in these 6 provinces; in contrast, the combined number of local value-added telecommunications enterprises spread out across China's 12 western provinces accounted for only 12.3% of the country's total.

According to the value-added telecommunications service classification in the 2015 edition of China's Telecommunication Service Catalogue, China's 79,148 value-added telecommunications companies have a total of 99,461 licensed projects. Among them, 46,396 (or 46.65% of the total) are Internet information service projects, 15,750 (15.84%) are non-Internet information service projects, 14,004 (14.08%) are online data processing and transaction processing services, 10,058 (10.11%) are domestic call center services, 5,827 (5.86%) are Internet access provision ("ISP") services, 3,251 (3.27%) are Internet data center ("IDC") services, and 4,175 (4.20%) are other businesses.

In terms of the main service categories provided by China's 19,358 cross-regional value-added telecommunications service enterprises, the top three were non-Internet information services (11,311 operators), domestic call center services (7,802 operators), and Internet access services (3,744 operators).

The range in the amount of registered capital across China's 19,358 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (69.6%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 17.3%, those with RMB 50 mln to RMB 100 mln comprised 7.1%, and those with RMB 100 mln or more comprised 5.7%. A small percentage (0.3%) had registered capital of less than RMB 10 mln.

Currently, the sources of investment and financing in China's value-added telecommunications field have become increasingly diversified, and private capital has developed into a major force. As of the end of January 2020, among China's 19,358 cross-regional value-added telecommunications service enterprises, 753 (3.9%) were state-owned, 18,452 (95.3%) were privately held, and 153 (0.8%) were foreign-invested enterprises.

Editor's Note: China's 12 western provinces include Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Ganxu, Qinghai, Ningxia, and Xinjiang.

Keywords: wireless Internet telecom MIIT call center Internet access Internet data center value-added data processing ISP CAICT private investment national statistics

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