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China's Number of Value-added Telecom Service Enterprises Nears 88,200

CAICT, 8/14/20

As of the end of July 2020, China's total number of enterprises holding a value-added telecommunications service license reached 88,181, up 2.96% 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, 21,124 were cross-regional enterprises licensed by the MIIT, up 2.24% MoM, and 67,057 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 3.19% MoM.

Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 21,124 cross-regional enterprises, 5,092 are registered in Beijing, 4,306 in Guangdong, and 2,128 in Shanghai, for a combined total of 54.6%.

Among the 67,057 local enterprises, 13,318 are registered in Beijing, 7,986 in Guangdong, and 6,979 in Zhejiang, comprising a combined 42.2% of the nation's total local value-added telecom service enterprises. The next largest concentrations are in Jiangsu, Shanghai, Henan, and Sichuan, which, combined, comprise another 23.4% of the total, meaning that 65.6% of China's local value-added telecommunications companies are concentrated in these 7 provinces; in contrast, the combined number of local value-added telecommunications enterprises spread out across China's 12 western provinces accounted for only 12.8% of the country's total.

In terms of the main service categories provided by China's 21,124 cross-regional value-added telecommunications service enterprises, the top three were non-Internet information services (12,241 operators), domestic call center services (7,650 operators), and Internet access services (4,516 operators).

The range in the amount of registered capital across China's 21,124 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (69.8%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 16.9%, 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 (0.4%) 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 July 2020, among China's 21,124 cross-regional value-added telecommunications service enterprises, 815 (3.9%) were state-owned, 20,077 (95.0%) were privately held, and 232 (1.1%) 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: ISP wireless Internet telecom MIIT call center Internet access CAICT private investment national statistics

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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