On the occasion when another world telecommunication day is approaching, a clear view the people get is that the Chinese telecom industry has speedily secured a firm place as a giant in the telecommunication industry within a span of no more than 10 years.

The telecom industry is the primary industry, a strategic and a pioneering one in China's national economy, one of the key industries for realizing the strategy in which the "informationization is going to take the lead in the industrialization". The recent years have witnessed a rapid development of the telecom industry in China, achieved a series of eye-catching result. But starting from 2007 along with the full-opening of the telecom market in China, foreign capitals will be able to apply for licenses for basic telecom business domestic and international of phonetic service, transmission business of grouping data exchange and circuit data exchange in which the Chinese telecom industry will be directly confronted with giant rivals of the world

Differences narrowed between China and developed countries

The year of 2004 saw a new progress achieved in China's telecom industry with its business revenue to see an overall stable increase up to RMB 518.76 billion yuan, a rise of 12.6 percent as against that of the previous year. The popular usage of phones reached 49.8 sets per 100 capita. The popularity of main lines for fixed phone-sets and for mobile phones reached a respective 24 and 25 percent with the phone-users to have reached 647 million households in total, of which the fixed phone users were up to 312 million households while the cellular phone users came to 335 million and the ADSL users amounted to 24 million.

In the meantime, China's telecom industry has also achieved a ceaseless progress in its international competitiveness. As compared to that in 2003 the international competitiveness of the Chinese telecom industry remains unchanged, occupying the 14th place in the world. The environment competitiveness saw a rise of 3 in the placement, taking the 25th in the world. But we see a continuous narrowing of the gap between the competitiveness of the Chinese telecom industry and that of the countries and regions at the forefront of the list. For instance, the integrated index for the international competitiveness of the Chinese telecom industry was 64.7 percent as against that of the US in 2004 yet in 2003 and 2002 it witnessed a respective percentage of 55.7 and 40.75 that of the US. We see the likewise case as compared to that of Japan. In the years of 2002, 2003 and 2004 the integrated index of the international competitiveness of the telecom industry in China saw a respective percentage of 54.9, 62 and 84.6 as against that of Japan. Therefore, we can come to a conclusion that China has already stood up a giant country in the world of telecom industry but there is still a long way to go when it is going to become a strong country in the very industry.

A distinctive superiority yet likewise an obvious inferiority

The international competitiveness of the telecom industry means a combination of the competitiveness in environment, in the market and the competitiveness of enterprises. The index system for the appraisal of the international competitiveness of telecom industry covers 10 major factors and 38 indexes for participation in the appraisal. The superiority of the Chinese telecom industry is mainly manifested in its annual investment in the industry and the annual increase rate in the per capita income of the industry. The former, as a key norm in measuring the investment level, is able to raise the scale and efficiency of the production elements while the later serves a key norm for measuring the consumption level, an indication to note that China sees a big potential for the telecom industry to develop its international competitiveness. Of the 16 countries placed in the front list of the international competitiveness in 2004 they were all strong countries in telecom industry except China. As against these countries the Chinese telecom industry still sees an obvious superiority in market competition. Of the 11 superior indexes for participating in the appraisal China stood out from among them.

But likewise, the Chinese telecom industry at present also indicates an obvious inferiority in the international competitiveness. In the index system, there sees 7 inferior indexes, taking up one half of the total. We still see an imperfect law system that can help create and keep a sustainable condition of competition for the telecom industry, nor a mature system for trade control and supervision. Aside from that, the per capita telecom income as a key norm for measuring the consumption level, the popularity of main lines in the country, volume of international phone calls, MOU and ARPU and especially, the factor of full-labor productivity that affects a lot the international competitiveness still witness a long way to go as against that of the developed countries. The major cause that incurred the aforesaid inferiority lies in the imperfection of the framework system in the macro-control of the telecom industry, the market structure still in the changing while the telecom enterprises as a micro-control basis still haven't come to form a micro-structure that is sufficient to promote enterprises in enhancing the international competitiveness in a sustainable way.

From a telecom giant to a strong country in telecom industry

In the initial years of the 21st century we've got a clear picture of three historical changes of the global telecom industry. The data business surpassed the phonetic; the mobile exceeded the fixed and the market scale in developing countries outstripped that in the developed countries. Using no more than 10 years of speedy development the Chinese telecom industry has fulfilled the aforesaid switch-over, becoming all at once the largest telecom market in the world. Though the internationalized technologies, standard, network and protocol are gradually melting away the state boundaries of the telecom industry and the globalized market system brought about unprecedented opportunities and challenges yet the changes of the telecom market and of the technologies and system have a high containing capability. In view of the telecom industry in 2005 and the planning period of the "11th Five Year Plan" we are full of confidence that the Chinese telecom industry is bound to become a world strong one with a full expectation for a system change in the time to come.

As expert pointed out, for the Chinese telecom industry there will be four changes: first of all, the telecom development is faced with a mode transition; secondly the telecom market is gradually approaching towards cooperation; thirdly the telecom control sees an adaptation to constant changes and fourthly the development of telecom business features varied characteristics of its own.

Whence the world telecom day

On 17 May 1865 to realize a smooth telegram communication in the world the "International Telegraph Convention" was undersigned by some 20 such European countries as France, Germany, Russia, Italy and Austria in Paris. This announced the establishment of the International Telegraph Union (ITU). In 1932, representatives from over 70 countries held a meeting in Madrid, Spain and decided to change the name into the International Telecommunication Union" as from January 1, 1934 onwards. On 17 May 1969 the 24th executive council meeting of the International Telecommunication Union passed an official resolution, deciding to make the date of May 17 the "International Telecom Day" and requesting every member country to conduct commemorative activities on every May 17 since 1969.

To make the commemorative activities more systematized there is a theme topic for every May 17-- the International Telecom Day. The theme topic for this year is "to get mobilized for creating a fair information society" and activities are conducted every year in China in commemoration of the International Telecom Day.

By People's Daily Online