Taipei, Wednesday, October 7, 2015 06:51 (GMT+8)
partly cloudy
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
  • Passive component maker Mag.Layers reports flat sales for September

    Bits + chips - Stockwatch | 9h 18min ago

  • Giantplus reports 3Q15 performance

    Displays | 9h 19min ago

  • Phison to post record 3Q15 revenues, says report

    Bits + chips - Stockwatch | 10h 20min ago

  • Tablet demand stays weak, say Taiwan IC designers

    Mobile + telecom | 10h 24min ago

  • Compeq September revenues hit record for 3rd straight month

    Bits + chips - Stockwatch | 10h 25min ago

  • Silitech revenues up on month in September

    Mobile + telecom - Stockwatch | 10h 27min ago

  • Taiwan market: Chunghwa Telecom plans to offer 1Gbps/600Mbps FTTH services

    Before Going to Press | 10h 2min ago

  • KYEC posts record 3Q15 revenues

    Before Going to Press | 10h 3min ago

  • TPK reports September 2015 revenues

    Before Going to Press | 10h 43min ago

  • Toshiba, SanDsik reportedly among takeover targets of Tsinghua

    Before Going to Press | 10h 43min ago

  • Digitimes Research: LTE operators compete with Wi-Fi Alliance to use 5GHz band

    Before Going to Press | 11h 4min ago

  • SPIL 3Q15 revenues decrease 5.7%

    Before Going to Press | 11h 19min ago

  • TAITRONIC 2015 opens

    Before Going to Press | 11h 50min ago

  • Simplo Technology sees increased September revenues

    Before Going to Press | 11h 51min ago

  • Taiwan LCD driver IC firms look to post more than 10% revenue decreases in 4Q15

    Before Going to Press | 11h 51min ago

  • Unity Opto Technology September revenues up on month, down on year

    Before Going to Press | 11h 52min ago

  • Diode maker Eris August revenues rise 17%

    Before Going to Press | 11h 53min ago

  • Nanya names new president

    Before Going to Press | 11h 53min ago

  • Asustek, Acer see large sequential growth in September notebook shipments

    Before Going to Press | 11h 53min ago

View more

The Big Fund - China's next step to becoming a global semiconductor leader

RESEARCH EXTRAS | Sep 16, 17:49

China has been solidifying its semiconductor industry policy objectives through the release of the "National IC Industry Development Guidelines" in June 2014 and "Made in China 2025" in June 2015, with one key financial support program being the National IC Industry...

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Taiwan LCD TVs – 2Q 2015


Taiwan-based LCD TV makers are seeing improving shipments. Among them, Foxconn Electronics (Hon Hai Precision Industry) will have the strongest shipment growth in the second half due to procurement orders from Mexico.

Global tablet market – 2Q 2015

GLOBAL TABLET | Aug 21, 12:11

Digitimes Research saw global tablet shipments fall to 45.76 million units in second-quarter 2015, showing a 10% decrease on quarter and representing more than a 15% decrease on year.

China smartphone market and industry – 2Q 2015

CHINA SMARTPHONE | Aug 18, 15:33

Smartphone sales in China no longer show any significant momentum for growth as the fast maturing market now increasingly relies on replacement demand from existing users.

Intel strategies in the mobile device market
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • 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.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.