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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

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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