China's Number of Value-added Telecom Service Enterprises Nears 73,700
CAICT, 9/16/19
As of the end of August 2019, China's total number of enterprises holding a value-added telecommunications service license reached 73,675, up 1.99% 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, 17,336 were cross-regional enterprises licensed by the MIIT, up 1.33% MoM, and 56,339 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 2.19% MoM.
Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 17,336 cross-regional enterprises, 4,501 are registered in Beijing, 3,515 in Guangdong, and 1,732 in Shanghai, for a combined total of 56.2%.
Among the 56,339 local enterprises, 11,267 are registered in Beijing, 6,625 in Guangdong, and 5,983 in Zhejiang, comprising a combined 42.4% 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 18.1% of the total, meaning that 60.5% 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 13.6% 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 73,675 value-added telecommunications companies have a total of 90,517 licensed projects. Among them, 42,814 (or 47.30% of the total) are Internet information service projects, 15,297 (16.90%) are non-Internet information service projects, 10,929 (12.07%) are online data processing and transaction processing services, 9,815 (10.84%) are domestic call center services, 5,310 (5.87%) are Internet access provision ("ISP") services, 2,795 (3.09%) are Internet data center ("IDC") services, and 3,557 (3.93%) are other businesses.
In terms of the main service categories provided by China's 17,336 cross-regional value-added telecommunications service enterprises, the top three were non-Internet information services (10,086 operators), domestic call center services (7,399 operators), and Internet access services (3,173 operators).
The range in the amount of registered capital across China's 17,336 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (68.9%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 17.8%, those with RMB 50 mln to RMB 100 mln comprised 7.3%, 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 August 2019, among China's 17,336 cross-regional value-added telecommunications service enterprises, 566 (3.2%) were state-owned, 16,653 (96.1%) were privately held, and 117 (0.7%) were foreign-invested enterprises.
As of the end of August 2019, China had issued virtual private network (VPN) service licenses to 1,026 enterprises, of which 939 were issued by the Ministry of Industry and Information Technology, and 87 were issued to regional enterprises by their respective provincial communications administrations.
In 2018, China's domestic Internet virtual private network service industry generated revenues of RMB 2.7 bln, up 1.1% YoY. Of this total, revenue from enterprises with an MIIT-issued VPN service provision license accounted for 81.8%, and revenue from enterprises with a provincial communications administration-issued license comprised 18.2%.
Keywords: wireless Internet license telecom MIIT VPN call center Internet access Internet data center value-added data processing ISP CAICT private investment national statistics
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