Double-digit Growth Seen for China's Telecom Market

Home>>Business

Last updated at: (Beijing Time) Friday, July 12, 2002

Double-digit Growth Seen for China's Telecom Market

China's telecom market is likely to keep double-digit growth in the coming years, looking ever more attractive to overseas investors, telecom analysts of Morgan Stanley predict.

DISCUSSION

CHINESE

SEND TO FRIEND

China's telecom market is likely to keep double-digit growth in the coming years, looking ever more attractive to overseas investors, telecom analysts of Morgan Stanley predict.

China's telecom market is likely to keep double-digit growth in the coming years, looking ever more attractive to overseas investors, telecom analysts of Morgan Stanley predict.

"Given that China's fixed-line and cell phones penetration rates are only 15 percent and 13 percent respectively, there is room for further development," said Mark Shuper, a telecom analyst of Morgan Stanley.

People feel the fixed-line telecom business is developing slowly because it is overshadowed by the higher growth seen in China's cellular industry, he said.

Compared with the low single digit growth or negative growth rates posted recently by fixed-line operators in some western countries, China's fixed-line market still exhibits higher potential for expansion, the analyst said.

China's fixed-line telecom market is keeping a steady increase with over 3 million new users per month, according to statistics from the Ministry of Information Industry. The figures also show that China had 196 million fixed-line telephone users at the end of May.

Many profitable businesses, like broadband Internet access and packaged telecom solutions for enterprises, are yet to be further developed, Shuper was quoted as saying.

China's dominant fixed-line telecom carries, China Telecom, China Netcom and minor carrier China Railcom all said they would like to be listed in the overseas stock market.

Morgan Stanley is one of the three underwriters of China Telecom, the other two being Merrill Lynch and China International Capital Corporation.

The telecom carriers' overseas listing is more strategic than a financial action, said Jonathan Zhu, managing director and head of telecom team, Morgan Stanley.

After being listed in the overseas market, the carriers will receive rich financial support from overseas investors, and more importantly, will learn modern management methods which will significantly upgrade their efficiency, said Zhu.

Questions?Comments? Click here

Telecom Competition Not "A Game Without Rules": Official

China, Land of Promise and Rivalry for Int'l/Home Telecom Developers

Ways China's Wealth Flows into the US ( 35 Messages)

How to View Major Problems in China's Income Distribution System ( 2 Messages)

Shanghai Plans Asia's Biggest Shopping Center ( 89 Messages)

Iraq Vows to Foil Hostile US Plans ( 38 Messages)

Chinese Satellite TV Hijacked by Falun Gong Cult ( 28 Messages)

Economists Divide over China's 2002 GDP Prospect ( 2 Messages)