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China's Number of Value-added Telecom Service Enterprises Exceeds 67,200

CAICT, 5/20/19

As of the end of April 2019, China's total number of enterprises holding a value-added telecommunications service license reached 67,260, representing a 2.53% month-on-month increase, 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, 14,852 were cross-regional enterprises licensed by the MIIT, up 2.95% MoM, and 52,408 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 2.41% MoM.

Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 14,852 cross-regional enterprises, 4,097 are registered in Beijing, 2,955 in Guangdong, and 1,531 in Shanghai, for a combined total of 57.8%. In contrast, the number of cross-regional enterprises in some of China's western provinces remains in the single digits.

Among the 52,408 local enterprises, 10,909 are registered in Beijing, 6,295 in Guangdong, and 5,868 in Zhejiang, comprising a combined 44.0% of the nation's total local value-added telecom service enterprises. The next largest concentrations are in Jiangsu, Sichuan, and Shanghai, which, combined, comprise another 17.7% of the total, meaning that 61.7% 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 13.5% 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 67,260 value-added telecommunications companies have a total of 81,807 licensed projects. Among them, 40,081 (or 48.99% of the total) are Internet information service projects, 14,258 (17.43%) are non-Internet information service projects, 8,786 (10.74%) are online data processing and transaction processing services, 8,298 (10.14%) are domestic call center services, 4,916 (6.01%) are Internet access provision ("ISP") services, 2,500 (3.07%) are Internet data center ("IDC") services, and 2,968 (3.63%) are other businesses.

In terms of the main service categories provided by China's 14,852 cross-regional value-added telecommunications service enterprises, the top three were mobile information services (8,665 operators), domestic call center services (5,851 operators), and Internet access services (2,786 operators).

The range in the amount of registered capital across China's 14,852 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (67.2%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 18.6%, those with RMB 50 mln or more, but less than RMB 100 mln comprised 7.8%, and those with RMB 100 mln or more comprised 6.1%. 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 April 2019, among China's 14,852 cross-regional value-added telecommunications service enterprises, 460 (3.1%) were state-owned, 14,293 (96.2%) were privately held, and 99 (0.7%) were foreign-invested enterprises.

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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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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