Marbridge Daily

May 04, 2012

China's Phone Penetration to Reach 100% by 2015

Sina Tech, 5/04/12

China's Ministry of Industry and Information Technology (MIIT) today issued its communications industry development targets as a component of the telecom industry's 12th Five-Year Plan (2011-2015), in which it announced the goal of 1.4 bln telephone subscribers in China by 2015, with a telephone user penetration rate of 100%. Among this total, mobile phone subs are expected to exceed 1.2 bln, with penetration at over 85%. The 3G user base is expected to exceed 450 mln subs, accounting for over 36% of all mobile phone users. The 3G network is expected to cover the majority of both urban and rural areas, and LTE is expected to be put into commercial use.

The MIIT's stated revenue goal for the telecom industry at large in 2015 is RMB 1.5 trln or above, with revenue from basic telecom services exceeding RMB 1.1 trln. The MIIT expects total investments in information infrastructure to exceed RMB 2 trln.

With regard to broadband access, throughout the duration of the 12th FYP the expected penetration rate for fiber broadband in newly built residential communities will be over 60%. The majority of urban and rural areas are expected to reach bandwidth capacities of 20 Mbps and a minimum of 4 Mbps respectively, with parts of certain cities upgraded to 100 Mbps. IPv6 next generation networks will see comprehensive commercial coverage. The backbone network and top 1,000 commercial websites in terms of domestic traffic will support IPv6. Broadband international gateway capacity will reach 8 Tbps.

China's total internet user base is expected to exceed 800 mln people by 2015, with a 57% nationwide internet penetration rate. The number of fixed broadband internet access accounts is projected to exceed 250 mln, with FTTH internet access accounts exceeding 40 mln.

In 2010, the last year of the 11th FYP, total annual revenue from the telecom industry reached RMB 1.03 trln, with revenue from basic telecom services accounting for RMB 907.9 bln. In 2010, total telephone subscribers reached 1.15 bln, with a penetration rate of 86.5%. China's internet user base in 2010 reached 457 mln people and the internet penetration rate was at 34.3%. Broadband international gateway capacity was 1.6 Tbps, with 7 submarine cables and 20 terrestrial cables.

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