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Analysys International Says China Fixed-Line Telecom Operators Face Challenges to Further Expand Subscriber Base

Posted on: Wednesday, 29 March 2006, 09:01 CST

BEIJING, March 29 /Xinhua-PRNewswire/ -- Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says, as PHS user growth slows down, fixed-line telecommunication operators face challenges to further expand the subscriber base.

According to Analysys International, China fixed-line telecommunication subscribers continued to grow in 2005, with penetration rate reaching 26.9%. However, the growth was mainly brought by PHS user growth other than traditional fixed-line telecommunication subscriber growth.

Analysys International says China's fixed-line telecommunication subscribers increased by 7.23% in 2005, while PHS subscribers increased by 30.83%. Total absolute growth of PHS users in the full year was also larger than that of fixed-line subscriber growth. (Figure: China PHS and Fixed-Line Telecom Subscriber Average Monthly Growth 2002-2005 http://english.analysys.com.cn/UserFiles/watered/1667.jpg )

However, PHS subscriber growth rapidly slowed down in 2005. Analysys International says average growth of PHS subscribers reached 0.74 million per month in 2002, and topped at 2.27 million per month in 2004 after rapid growth in 2003. From the beginning of 2005, PHS subscriber growth began to slow down. Average growth of PHS reached 1.68 million per month in 2005, obviously lower than the level of 2003.

In addition, Analysys International says growth rate of traditional fixed-line telecommunication subscribers has been declining since 2003, which brings pressure to fixed-line telecom operators to further develop subscribers.

"Currently, fixed-line telecom operators lack effective growth points. PHS has lost the momentum to drive rapid growth for fixed-line telecom business," says Qiu Lin, an analyst from Analysys International, "It's unpractical to expand market share solely depending on the growth of PHS. Fixed-line telecom market faces huge challenges."

About Analysys International

Analysys International is the leading Internet based provider of business information about technology, media and telecom (TMT) industries in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the website at http://english.analysys.com.cn/ .

For more information, please contact: Jessica Wang Overseas Media Manager Analysys International Tel: +86-10-6466-6565 x394 Fax: +86-10-6466-7102/7103 Email: jessica_wang@analysys.com.cn

Analysys International

CONTACT: Jessica Wang, Overseas Media Manager of Analysys International,+86-10-6466-6565 x394, or fax, +86-10-6466-7102/7103,jessica_wang@analysys.com.cn

Web Site: http://english.analysys.com.cn/

Source: PRNewswire

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