China Telecom Industry Newsletter

June 2016

The Report

"China Telecom Industry Newsletter" is released by Deloitte China Telecommunications industry service team, aimed at senior management and industry experts. The newsletter provides information on recent development of Telecom industry, discussions on hot topics in the industry and latest policies and regulations related to the Telecom industry.

Viewpoints / key findings

The following are the recent development, hot topics and interpretations on the latest policies and regulations, as well as opportunities and challenges in the industry:

1. Analysis of operating and financial data of the top three telecom operators in China

  • 2016 marks the beginning of a fiercer competition among the top three operators. The market is saturated with mobile users and the industry of mobile services is undergoing a bottleneck period for development. The three top operators are managing to proceed forward the optimization of user structure, transferring the 2G and 3G users to 4G subscribers.
  • With the promotion of "Broadband China" policy, the three top operators are increasingly developing the broadband infrastructure in 2016. In the first quarter of 2017, the three top operators are continuously promoting the construction of fibre optic networks. The length of fibre optic cable has reached 32.3 million kilometres in the year of 2017 to March, added 1.89 million kilometres compared with the end of last year.

2. Connecting the future of mobility-Reimagining the role of telecommunications in the new transportation ecosystem

  • The shifting transportation ecosystem is expected to create a host of new challenges and opportunities for companies across the telecommunications industry value chain, including telecom operators, infrastructure solution providers, and equipment vendors.

3. 5G: a revolution in evolution

  • 5G may offer to users, carriers and enterprises: significantly higher speed, lower latency and support for low-power low-bitrate internet of Things (IoT) devices and sensors.
  • The technology building blocks for 5G readiness are being deployed in 2017, and in some markets are already in place. The foundational technologies required for 5G deployment are being widely adopted.
  • To keep synchronized with the world, China has made steps to deploy 5G networks, and the three top operators have scheduled to promote the layout of 5G networks based on their own needs.

4. Seven implicit costs of a cyberattack

  • The Deloitte Risk Advisory Cyber Security Report identified 14 major business impacts of a cyber incident, which can last for 5 years. Amongst the 14 impacts, seven of them are explicit and seven are implicit.

5. Another insight into business - the fourth report in telecommunications industry

  • Taking advantages of the fourth report to digitalize traditional enterprises, while adopting the externally identified data from the first party and the verified data from the third party to present the corresponding data with multi-level and multi-dimensional structure of report.

6. Updated financial reporting, regulatory related issues and tax policies

7. Remarkable Tax issues in 2016

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