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CAICT: Private Capital has Become Main Force in Value-added Telecom Services

Updated:2018/2/11 14:39

Recently, China Academy of Information and Communications Technology (CAITC) released the Analysis Report on Domestic Value-added Telecom Services Licensing in January 2018. By the end of January, there are 49,496 licensed enterprises providing value-added telecom services nationwide, increasing 1.08% than last month; in the mentioned enterprises, 8,876 are trans-regional enterprises licensed by the MIIT and 40,620 enterprises are local ones licensed by local Communications Administrations, increasing 3.26% and 0.61% than last month, respectively.

According to the report, domestic value-added telecommunications field has formed an increasingly diversified investment and financing market with private capital became the major force. Judging by the enterprises approved by the MIIT, there are 310 state holding enterprises, accounting for 3.5% of the total number; 8,508 private holding enterprises, accounting for 95.8% and 58 foreign-funded ones, accounting for 0.7%.

Overall, national value-added telecom services market is characterized by unbalanced regional developments. Among these 8,876 trans-regional enterprises, 2,980 are registered in Beijing, 1,636 are in Guangdong and 939 in Shanghai, meaning 62.5% cross-regional enterprises are concentrated in the three regions. In contrast, there are less than 10 trans-regional enterprises in some western regions.

For these 40,620 local enterprises, 8,637 are in Beijing and 5,043 are in Guangdong, these two regions have the top value-added telecommunications enterprises, followed by Zhejiang, Jiangsu, Sichuan and Shanghai, 62.3% enterprises are located in the above six regions, while 12 western provinces only account for 12.4% of the total number. When classified by the 2015 edition of Telecommunication Service Classification, 49,496 value-added telecommunications enterprises own 60,874 licenses in total, including 31,407 information services limited to Internet information services, 12,320 information services excluding Internet information services, 5,266 domestic call center services, 4,830 online data processing and transaction processing services, 3,706 Internet access services, 1,599 Internet data center services and 1,786 other services.

Judging from the number of cross-regional operators of each business, the top three businesses are: mobile information services provided by 5,792 enterprises, domestic call center business by 2,827 enterprises and Internet access services by 1,649 providers.

The scale of registered funds varies greatly among different operators, but the majority are above CNY 10 million. Among the 8,876 licensed operators, 64.5% operators are registered with capital of CNY 10 million, 20.6% are between CNY 10 million to 50 million, 8.0% are between CNY 50 million and 100 million , 6.5% large enterprises are registered with more than CNY 100 million.

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