News 31 October 2007 - The Potential Growth of China’s Telecoms Industry

Just as 2007 may be the year that the global telecoms industry realises the potential of investing in emerging markets, 2008 may be the year where the biggest players in this industry move into the lucrative Chinese market. As China has emerged as one of the world’s most significant economic powers, Chinese companies have seen a huge rise in value and therefore there is a great interest in its telecommunications industry. In fact, many feel that China’s larger population will mean that the growth of this industry will rival that of India’s mobile market which has seen a phenomenal growth in recent years. However breaking into the China is very hard and so far only three foreign companies have been willing to invest in this market. The Chinese regulators are even now pondering a radical restructuring of their telecoms industry, which may result in the industry being made less competitive, allowing other foreign companies to enter the market.