Market Insight

REPORT HIGHLIGHTS - Mega LTE Rollouts by China Telecom and China Unicom Lift Chinese Mobile Infrastructure Market 17 Percent in 2015

April 14, 2016

Stéphane Téral Stéphane Téral Technology Fellow – Telecommunications, IHS Markit
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Owing to China Unicom’s last-minute decision to roll out LTE (Long Term Evolution) without holding a license, the Chinese 2G/3G/LTE mobile infrastructure market grew 17 percent in 2015 over the previous year, hitting US$13 billion.

China is the world’s second-largest economy and home to the world’s largest mobile subscriber base, with a total of 1.3 billion subscribers in 2015.

In 2015, the combination of China Unicom’s and China Telecom’s massive FD-LTE (frequency division LTE) rollouts and China Mobile’s moderate TD-LTE (time division LTE) rollouts pushed mobile infrastructure capex 20 percent above the prior year’s level. A combined total of 1 million eNodeBs were deployed.

“2015 was an almost US$11 billion peak year for LTE in China, but 2016 is set for double-digit decline because the massive LTE rollouts are over,” said Stéphane Téral, senior research director for mobile infrastructure and carrier economics at IHS. “In the long run, we expect the Chinese mobile infrastructure market to slow down further, declining at a CAGR of -27 percent from 2015 to 2020.”

Based on the IHS Technology worldwide Mobile Infrastructure Quarterly Market Tracker, the country-specific Mobile Infrastructure and Subscribers Annual Market Tracker - China focuses on the 2G, 3G and LTE infrastructure markets and subscribers in China.

China Mobile Infrastructure Market Highlights

  • Chinese 2G and 3G revenue came to less than US$2 billion in 2015
  • Mobile subscriber growth is slowing down in China; 2015’s 1.3 billion subscribers represented only a 1.5 percent increase over 2014
  • In 2015, Huawei and ZTE together accounted for around 62 percent of China’s BTS (base transceiver station) unit shipments
  • Huawei entered the Beijing market for the first time in 2015

Chinese Mobile Report Synopsis

The annual IHS China mobile equipment report market size, vendor market share, forecasts through 2020, analysis and trends for 2G GSM, 3G CDMA2000 (TD-SCDMA, W-CDMA) and 4G LTE (E-UTRAN, EPC) mobile network equipment and subscribers in China. The report also includes an LTE deployment tracker. Vendors tracked include Alcatel-Lucent, Datang Mobile, Ericsson, Fiberhome, Huawei, Potevio, Newpostcom, Nokia Networks, ZTE and others.

For more information about the report, contact the sales department at IHS in the Americas at +1 844 301 7334 or americasleads@ihs.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihs.com; or Asia Pacific (APAC) at +604 291 3600 or technology_APAC@ihs.com.

Geography
China
Research by Market
Mobile & Telecom
Category
Mobile Networks
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