China's telecommunications market grows steadily; subscribers to double by 2005

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 (2001-05) 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 more 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 will further open its markets to outside competition and create a more competitive environment.

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

For more details on the report, "Chinese Optical Communications Market Review and Forecast 2002 (Equipment and Components)," call 650-941-3438 or visit www.strategies-u.com.