China's Number of Value-added Telecom Service Enterprises Nears 82,400
CAICT, 5/13/20
As of the end of April 2020, China's total number of enterprises holding a value-added telecommunications service license reached 82,377, up 1.61% month-on-month, reports the China Academy of Information and Communications Technology (CAICT), a department of China's Ministry of Industry and Information Technology (MIIT). Of this total, 20,054 were cross-regional enterprises licensed by the MIIT, up 1.12% MoM, and 62,323 were local enterprises licensed by provincial (regional, municipal) communications administrations, up 1.77% MoM.
Regionally, China's value-added telecommunications industry is currently characterized by uneven development. Among the 20,054 cross-regional enterprises, 4,896 are registered in Beijing, 4,124 in Guangdong, and 1,989 in Shanghai, for a combined total of 54.9%.
Among the 62,323 local enterprises, 12,542 are registered in Beijing, 7,701 in Guangdong, and 6,601 in Zhejiang, comprising a combined 43.1% of the nation's total local value-added telecom service enterprises. The next largest concentrations are in Jiangsu, Shanghai, and Sichuan, which, combined, comprise another 17.9% of the total, meaning that 61.0% of China's local value-added telecommunications companies are concentrated in these 6 provinces; in contrast, the combined number of local value-added telecommunications enterprises spread out across China's 12 western provinces accounted for only 12.4% of the country's total.
According to the value-added telecommunications service classification in the 2015 edition of China's Telecommunication Service Catalogue, China's 82,377 value-added telecommunications companies have a total of 103,987 licensed projects. Among them, 48,353 (or 46.50% of the total) are Internet information service projects, 15,972 (15.36%) are non-Internet information service projects, 15,515 (14.92%) are online data processing and transaction processing services, 9,940 (9.56%) are domestic call center services, 6,138 (5.90%) are Internet access provision ("ISP") services, 3,512 (3.38%) are Internet data center ("IDC") services, and 4,557 (4.38%) are other businesses.
In terms of the main service categories provided by China's 20,054 cross-regional value-added telecommunications service enterprises, the top three were non-Internet information services (11,705 operators), domestic call center services (7,737 operators), and Internet access services (4,031 operators).
The range in the amount of registered capital across China's 20,054 cross-regional value-added telecommunications service enterprises is substantial, but with the majority (69.6%) clustered at RMB 10 mln. Those with registered capital greater than RMB 10 mln but less than RMB 50 mln comprised 17.3%, those with RMB 50 mln to RMB 100 mln comprised 7.2%, and those with RMB 100 mln or more comprised 5.6%. A small percentage (0.4%) had registered capital of less than RMB 10 mln.
Currently, the sources of investment and financing in China's value-added telecommunications field have become increasingly diversified, and private capital has developed into a major force. As of the end of April 2020, among China's 20,054 cross-regional value-added telecommunications service enterprises, 790 (3.9%) were state-owned, 19,075 (95.2%) were privately held, and 189 (0.9%) were foreign-invested enterprises.
Keywords: wireless private investment Internet telecom MIIT call center Internet access Internet data center value-added data processing ISP CAICT national statistics