China's telecommunications market will generate $187 billion by 2014.
This is fuelled by mobile penetration into the Chinese rural market and the uptake of 3G services, according to the latest report from Pyramid Research.
Daniel Yu, analyst at Pyramid Research and author of the report, says China's telecoms market generated $110 billion in 2008, making it the second largest telecoms services market in Asia-Pacific after Japan.
"Given the continued demand for connectivity and rising adoption of mobile and fixed broadband services, the Chinese market will increase at a compound annual growth rate of 8.8% between 2009 and 2014, reaching $187 billion by 2014, surpassing Japan as the largest telecommunications services market in Asia," Yu says.
"China, like many emerging markets, is becoming an increasingly mobile market, adding 71.2 million mobile subscriptions in 2008, roughly 12% of all additions worldwide and second only to India's 113.3 million net additions,” adds Yu.
The research firm expects mobile service revenue growth to be supported by a penetration increase from 58% at year-end 2009 to 80% at year-end 2014. Mobile services are predicted to account for more than 76% of total services revenue in China by 2014.
Despite the declining rate of growth in the economy, Pyramid Research claims the mobile industry will experience healthy growth in 2009 as mobile operators roll out 3G networks and extend coverage to rural areas.
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