Despite dismal economy, Chinese telecom market growing steadily

October 31, 2002--As North America and Europe continue to experience a prolonged slump in sales of optical equipment and components, China has emerged as "one of the few bright spots in an otherwise dismal market environment," asserts a new report from Strategies Unlimited.

Oct 31st, 2002

As North America and Europe continue to experience a prolonged slump in sales of optical equipment and components, China has emerged as "one of the few bright spots in an otherwise dismal market environment," asserts a new report from Strategies Unlimited (Mountain View, CA). Worldwide optical equipment and component revenues fell 34% in 2001, but the Chinese market grew by 70% to $1.9 billion. China's Tenth Five-Year Plan (2001-2005) is expected to drive additional robust growth, with China generating an increasing share of worldwide fiber-optic equipment and component revenues.

China is one of the most dynamic markets for communications equipment, claims the report. At the end of 2001, China had a total of 169 million wireline telephone subscribers, 132 million mobile telephone subscribers, and nearly 100 million cable television subscribers. The government's plan to double these figures by 2005 will require a vast amount of new infrastructure, while China's entry into the World Trade Organization (WTO) will further open its markets to outside competition and create a more competitive environment.

Some of the world's largest and best-known suppliers have tapped into the Chinese market, many of which have established joint ventures in China. They supplied approximately one half of the market's needs in 2001, with the remaining half coming from domestic suppliers, who themselves are taking aim at North American and European markets.

Based on extensive in-country surveys of Chinese carriers, domestic and foreign suppliers, and government institutions, the report provides market data and forecasts for three categories of optical communications equipment and 15 categories of components. It also profiles the seven major Chinese service providers as well as 20 equipment suppliers and 32 component suppliers that serve the Chinese market. The recent reorganization of China's major telecom carriers and implications for China's entry into the WTO are also examined.

For more information about the report, "Chinese Optical Communications Market Review and Forecast 2002 (Equipment and Components)," visit the company's Web site at www.strategies-u.com.

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