Taipei, Thursday, March 5, 2015 14:52 (GMT+8)
mostly cloudy
Taipei
19°C
Digitimes Research: China pushing fixed-line broadband network development
Benson Wu, DIGITIMES Research, Taipei [Friday 3 January 2014]

According to the statistics from China's Ministry of Industry and Information Technology (MIIT), the number of fixed-line subscribers in China reached 185 million as of the third quarter of 2013, up only by 9% compared to the same quarter a year ago.

Neither did the country's Optical Network City project achieve its goal, with the penetration rate of FTTH/O reaching only 18%. Although China has the most FTTH/O subscribers in the world, the number of subscribers increased by only 13 million during the first three quarter of 2013 - a number which is only 10% of the increase in 3G service subscribers during the same period.

The development of fixed-line broadband networks has been slow mainly because of a number of reasons, Digitimes Research believes.

First, there is a lack of competition, which gives service providers few incentives to improve their service quality, and in turn deters subscribers from upgrading their connectivity.

Uneven development in urban and rural areas sees fixed-line broadband service providers showing reluctance in investing in less populated regions outside the more urbanized parts in eastern China.

The coming of the 4G mobile era, which sees the country's three major telecom service providers put more of their investments in construction of mobile networks, which can generate faster and better returns. This has prevented investment in fixed-line networks.

But the China government is now taking steps to improve the country's fixed-line broadband service development. In December 2013, the MIIT lifted a ban on China Mobile from running fixed-line network business, a move it hopes will heat up competition in the fixed-line network sector.

Earlier in August 2013, China's State Council announced its broadband network operation and development goals and in October 2013, the State Council introduced a new program aiming at reforming the China's telecom industry and creating a fair competition environment.

Realtime news
  • TPK reports 33% on-month drop for February

    Displays | 18min ago

  • Mitac expected to see growing cloud computing sales in 2015

    IT + CE | 26min ago

  • Panel pricing declining in March, says DisplaySearch

    Displays | 37min ago

  • Nvidia invites Tesla CEO to chat on smart automobile industry at GTC 2015

    IT + CE | 45min ago

  • MWC 2015: Chipset vendors, equipment suppliers gearing up efforts to develop LTE-U devices

    Mobile + telecom | 46min ago

  • Taiwan market: 3G avergae download speed reaches 6.27Mbps, says NCC

    Mobile + telecom | 2h 48min ago

  • Japan market: ZTE to launch Blade S6 for mid-range segment

    Mobile + telecom - Newswatch | 2h 54min ago

  • 30% of 50-inch LCD TVs shipped in 2015 to be Ultra HD

    Displays | Mar 4, 22:23

  • Taiwan solar cell makers looking for idle equipment in China

    Green energy | Mar 4, 22:20

  • ASMedia appoints lawyers to defend patent lawsuit against VIA

    IT + CE - Stockwatch | Mar 4, 22:16

  • Worldwide server market grew 4.8% in shipments, while revenues increased 2.2% in 4Q14, says Gartner

    IT + CE | Mar 4, 22:14

  • Samsung loses top position in global 4Q14 smartphone market, says Gartner

    Mobile + telecom | Mar 4, 22:11

  • Smartphone platform providers eyeing emerging Africa market

    Mobile + telecom | Mar 4, 22:06

  • Digitimes Research: 24- and 27-inch monitor retail pricing increases in February

    Displays | Mar 4, 22:02

  • MWC 2015: MediaTek intros 64-bit SoCs for smartphones and tablets

    Bits + chips | Mar 4, 22:00

  • Casetek sees weaker profits in 4Q14

    Before Going to Press | Mar 4, 21:51

  • Casetek rumored to land chassis orders for iPhone for 3Q15

    Before Going to Press | Mar 4, 21:49

  • TSMC wins processor orders for second-generation Apple Watch, say rumors

    Before Going to Press | Mar 4, 21:43

  • Taiwan January manufacturing production index down on month, up on year, says MOEA

    Before Going to Press | Mar 4, 21:41

Pause
 | 
View more

2015 China IC design market forecast

RESEARCH EXTRAS | Jan 23, 10:50

Global economic growth is forecast to reach 3.8% in 2015, up from 3.3% in 2014. From the perspective of the electronics industry though, PC shipments will continue to decline, smartphone shipment growth will drop, and tablet shipments may decline. Despite the...

2015 global AP market forecast and vendor analysis

RESEARCH EXTRAS | Jan 23, 10:46

Digitimes Research estimates that total 2014 AP shipments will reach 1.52 billion units worldwide, up 19.6% from 2013, and in 2015 the global market will see shipments of 1.65 billion units, growing 8.5% on year. The slowdown is mainly due to a shrinking tablet...

Taiwan large-size LCD panels – 4Q 2014

TAIWAN FPD | Feb 17, 11:23

Taiwan-based makers saw their large-size TFT LCD panel shipments increase on year in fourth-quarter 2014, driven largely by demand for TV applications. But they are facing growing competition from China-based and Korea-based makers who are ramping up new production...

Taiwan LCD TVs – 4Q 2014

TAIWAN FPD | Feb 17, 11:07

Taiwan's LCD TV makers saw significant increases in shipments in the fourth quarter of 2014 thanks to strong seasonal demand, as well as Foxconn's shipments to Mexico to fulfill government procurement orders.

Taiwan small- to mid-size LCD panels – 4Q 2014

TAIWAN FPD | Feb 16, 15:11

Major Taiwan-based suppliers of small- to medium-size LCD panels changed their production strategies in fourth-quarter 2014 as the industry entered the slow season amid sluggish demand for smartphone applications and rising competition from China-based rivals...

2015 China IC design market forecast
Wireless broadband developments in Southeast Asia markets
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.