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China's Number of Value-added Telecom Service Enterprises Exceeds 85,600

CAICT, 7/10/20

As of the end of June 2020, China's total number of enterprises holding a value-added telecommunications service license reached 85,648, up 1.91% 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, 20,661 were cross-regional enterprises licensed by the MIIT, up 1.32% MoM, and 64,987 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 2.10% MoM.

Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 20,661 cross-regional enterprises, 4,998 are registered in Beijing, 4,226 in Guangdong, and 2,080 in Shanghai, for a combined total of 54.7%.

Among the 64,987 local enterprises, 12,978 are registered in Beijing, 7,893 in Guangdong, and 6,808 in Zhejiang, comprising a combined 42.6% 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 66.0% 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 12.6% of the country's total.

In terms of the main service categories provided by China's 20,661 cross-regional value-added telecommunications service enterprises, the top three were non-Internet information services (12,024 operators), domestic call center services (7,695 operators), and Internet access services (4,296 operators).

The range in the amount of registered capital across China's 20,661 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (69.7%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 17.1%, those with RMB 50 mln to RMB 100 mln comprised 7.2%, 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 June 2020, among China's 20,661 cross-regional value-added telecommunications service enterprises, 804 (3.9%) were state-owned, 19,664 (95.1%) were privately held, and 213 (1.0%) 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 ISP Internet telecom MIIT call center Internet access value-added 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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