China’s telecommunication sector reported earnings of RMB63 billion in January this year, up 5.7% year on year, according to the figures released by the Ministry of Industry and Information Technology (MIIT).
China View reported the number of fixed-line users were down by one million to 339.8 million in the month, while mobile phone users grew by more than 8.4 million to 649.7 million, the MIIT data showed.
More people turned to broadband Internet connection as the number of dial-up network users declined by 2.53 million to 11.84 million, while the number of broadband users rose by 1.2 million.
All of which bodes well for the expansion into 3G which will be a bonanza for American telecommunications companies. We will use their initials throughout.
Seeking Alpha starts with ALTR which stated that ‘the improved outlook is largely attributable to better than expected demand from OEMs providing equipment for Chinese 3G wireless networks,’
XLNX noted more vaguely that the increase was ‘due primarily to better than expected wireless communications sales.’
The main OEMs benefitting are all Chinese—Datang, Huawei, and ZTE —with ALU, ERIC, and Nokiaand Siemens (SI) benefitting to a lesser extent.
China Mobile (CHL; China’s largest wireless carrier with more than 463.9M subscribers) should all on an additional 60K 3G base stations this year on top of the 20K it already has.
It will be rolling out its TD-SCDMA technology — which will be working better if not perfectly to 238 cities by year-end.
China Unicom with about 34.2M subscribers plans to roll out its WCDMA technology (note NOT TD-SCDMA) to 280 cities by year end.
China Telecom, which has nearly 30 million subscribers plans to roll out its CDMA2000 network to 100 cities by year-end. Overall, Chinese service providers are expected to spend something around $58 billion in 3G infrastructure over the next three years, according to China’s Ministry of Industry and Information Technology.
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