Research Report on Developing Trend of Post and Telecom Industry in Beijing from 2006 to 2007

Section two. Analysis on developing environment - 8 -
1. Relationship with overall economy - 8 -
2. Analysis on policy environment of post industry- 9 -
3. Analysis on policy environment of telecom op四、通信产品制造行业政策环境分析
4. Analysis on policy environment of telecom products manufacturing industry  - 14 -

Chapter Two. Analysis on Telecom Operation Industry - 15 -
Section one. Status quo - 15 -
1. Status quo - 15 -

Section two. Features and existing problems - 38 -
Section three. Analysis on telecom contractors and capital channels - 63 -
1. Major telecom contractors in China - 63 -
2. Analysis on capital channels - 66 -

Section four. Analysis on developing trend - 67 -
1. Two big events will occur in 2007 - 67 -
2. Opportunity and challenge in 2007 - 68 -
3. Ten trends of telecom market in 2007 - 68 -

Chapter Three. Analysis on Development of Telecom Products Manufacturing Industry - 71 -
Section one. Development - 71 -
1. Analysis on status quo of global telecom products manufacturing industry - 71 -
2. Analysis on status quo of China’s telecom products manufacturing industry - 72 -

Section two. Features and existing problems - 79 -
1. Features  - 79 -
2. Existing problems - 80 -

Section three. Supply of major products - 81 -
1. Supply of mobile phones - 81 -
2. Supply of small smart - 82 -
3. Supply of program-controlled exchangers - 83 -
4. Facilities of mobile communication  - 84 -
5. Supply of telephones - 84 -

Section four. Analysis on major enterprises and capital channels - 85 -
1. Comprehensive ranking of enterprises - 85 -
2. Key enterprises - 86 -
3. Analysis on capital source - 89 -

Section five. Analysis on developing trend - 91 -
1. Three trends of development of the world’s telecom manufacturing industry - 91 -
2. Analysis on developing trend of China’s telecom facilities industry - 91 -
3. Analysis on risks of future investment  - 92 -

Chapter Four. Important Changes and Impacts - 93 -
Section one. Division of China Netcom and China Telecom - 93 -
1. History of China Telecom - 93 -
2. Analysis on merging and restructuring plan - 93 -
3. Capacity comparison of China Telecom and China Netcom - 93 -
4. Analysis on industrial chain after restructuring - 93 -
5. Analysis on purpose of restructuring - 94 -
6. Suggestions on strategic development of telecom contractors - 94 -

Section two. Post Reform “Half Step Forward”- 95 -
1. System of “Parent and Subsidiary Companies” - 95 -
2. Reform plans - 96 -
3. Business area, service and compensation system - 97 -

Section three. Emerging 3G brands - 98 -
1. Emerging 3G - 98 -
2. Worries behind optimism - 99 -
3. Unpredicable future of TD - 99 -

Chapter Five. Development of Post Industry - 101 -
Section one. Status quo - 101 -
1. Developing environment - 101 -
2. Status quo - 103 -
3. Types of services - 105 -

Section two. Basic features and existing problems - 107 -
1. Basic features - 107 -
2. Existing problems - 108 -

Section three. Supply of products/services - 110 -
1. Public business - 110 -
2. Express service - 115 -
3. Finance business - 119 -
4. Logistics service - 125 -
5. Information service - 130 -
6. Stamp collection service - 131 -
7. Internationa post service - 134 -

Section four. Bodies of operation and capital channels - 136 -
1. Construction of capital channels - 136 -
2. Assessment on competitiveness of key enterprises- 137 -

Section five. Analysis on developing trend - 137 -
1. Public business - 137 -
2. EMS - 142 -
3. Finance business  - 148 -
4. Logistics service - 151 -
5. Information service - 157 -
6. Stamp collection service - 160 -
7. Internationa post service - 162 -

Chapter Six. Suggestion on Investment and Finance Exploration - 164 -
Section one. Analysis on investment opportunities - 164 -
1. Analysis on investment opportunities of post industry - 164 -
2. Analysis on investment opportunities of telecom industry - 167 -

Section two. Analysis on risks of investment and prevention - 175 -
1. Analysis on risks of investment and prevention of post industry - 175 -
2. Analysis on risks of investment and prevention of telecom industry- 178 -

Section three. Suggestion on Investment and Finance Exploration - 180 -
1. Investment direction - 180 -
2. Key investment areas - 182 -
3. Market exploration - 182 -
List of tables - 184 -

List of tables
Table 1. Industrial chain of business letters - 9 -
Table 2. Percentage of income of China’s telecom industry in GDP from 2001 to 2006 - 17 -
Table 3. Comparison of growth rate of telecom income and GDP from 2001 to 2006 - 18 -
Table 4. Statistics of Jan. to Dec. 2006 - 19 -
Table 5. Statistics of income of China’s telecom industry from 2000 to 2006 - 38 -
Table 6. Prediction of income from 2007 to 2010 - 38 -
Table 7. Structure of telecom business in 2006 - 44 -
Table 8. Growht rates of services of telecom industry in 2006 - 44 -
Table 9. Telecom subscribers at the end of each year in the “Tenth Five-year Plan” period - 45 -
Table 10. Comparison of monthly income of telecom services from 2003 to 2006 - 45 -
Table 11. Comparison of monthly growth of telephone subscribers from 2003 to 2006- 46 -
Table 12. Comparison of monthly growth of mobile phone subscribers from 2003 to 2006 - 46 -
Table 13. Structure of calling time of distance calls from 2004 to 2006 - 47 -
Table 14. Comparison of ARPU of telephone and mobile phone service from 2004 to 2006 - 47 -
Table 15. Incomes of telecom in the East, Middle and West from 2005 to 2006 - 48 -
Table 16. Newly increased telephone subscribers in the East, Middle and West from 2004 to 2006 - 48 -
Table 17. Newly increased mobile phone subscribers in the East, Middle and West from 2004 to 2006 - 49 -
Table 18. Top 10 provinces of telecom income in 2006 - 49 -
Table 19. Top 10 provinces with most telephone subscribers in 2006  - 50 -
Table 20. Top 10 provinces with most mobile phone subscribers in 2006  - 50 -
Table 21. Number of telephone subscribers in every province in Dec., 2006 (unit: 10,000) - 51 -
Table 22. Number of telephone subscribers in every province in Nov., 2006 (unit: 10,000)  - 52 -
Table 23. Number of telephone subscribers in every province in Oct., 2006 (unit: 10,000)  - 53 -
Table 24. Number of telephone subscribers in every province in Sep., 2006 (unit: 10,000)  - 54 -
Table 25. Number of telephone subscribers in every province in Aug., 2006 (unit: 10,000)  - 55 -
Table 26. Number of telephone subscribers in every province in July, 2006 (unit: 10,000)  - 56 -
Table 27. Number of telephone subscribers in every province in June, 2006 (unit: 10,000)  - 58 -
Table 28. Number of telephone subscribers in every province in May, 2006 (unit: 10,000)  - 59 -
able 29. Number of telephone subscribers in every province in Apr., 2006 (unit: 10,000)  - 60 -
Table 30. Number of telephone subscribers in every province in Mar., 2006 (unit: 10,000)  - 61 -
Table 31. Number of telephone subscribers in every province in Feb., 2006 (unit: 10,000)  - 62 -
Table 32. Number of telephone subscribers in every province in Jan., 2006 (unit: 10,000)  - 63 -
Table 33. Advantages and disadvantages of telecom contractors  - 66 -
Table 34. Analysis on business of contractors - 66 -
Table 35. Profit growth rate and market share components of top four telecom contractors from Jan. to Jun., 2006 - 67 -
Table 36. Comparison of investment of telecom contractors from 2004 to 2006 - 67 -
Table 37. Analysis on capital channels  - 68 -
Table 38. Change trend of investment scale of global communication from 2002 to 2006 - 73 -
Table 38. Change trend of service income of China’s telecom industry from 1999 to 2005 - 74 -
Table 40. Investment in real assets of China Telecom from 2000 to 2005 - 74 -
Table 41. Comparison of net profit from 2001 to 2005 - 74 -
Table 42. List of big events in telecom manufacturing industry in 2006 - 79 -
Table 43. Production of mobile phones from 2004 to 2006 (unit: 10,000) - 83 -
Table 44. Monthly production of mobile phones from 2004 to 2006 (unit: 10,000) - 83 -
Table 45. Production of small smart phones from 2004 to 2006 (unit: 10,000) - 84 -
Table 46. Monthly production of small smart phones from 2004 to 2006 (unit: 10,000) - 84 -
Table 47. Production of program-controlled exchangers from 2004 to 2006 (unit: 10,000) - 85 -
Table 48. Monthly production of program-controlled exchangers from 2004 to 2006 (unit: 10,000) - 85 -
Table 49.  Production of mobile communication facilities from 2004 to 2006 (unit: 10,000) - 86 -
Table 50. Monthly production of mobile communication facilities from 2004 to 2006 (unit: 10,000) - 86 -
Table 51. Production of telephones from 2004 to 2006 (unit: 10,000) - 86 -
Table 44. Monthly production of telephones from 2004 to 2006 (unit: 10,000)- 87 -
Table 53. Top 50 enterprises with the strongest capacity of telecom manufacturing industry - 87 -
Table 54. Changes of China Huawei Technology Co., Ltd. from 2002 to 2005 - 88 -
Table 55. Structure of capital sources of China’s telecom manufacturing industry in 2005 - 92 -
Table 56. Percentage of capital source from Jan. to Nov., 2006 - 92 -
Table 57. Three steps of postal system reform - 103 -
Table 58. Plan of postal system reform  - 103 -
Table 59. Real asset and investment of post industry from 2004 to 2005 - 105 -
Table 60. Status quo and prediction of growth of postal service from 2000 to 2008 - 106 -
Table 61. Total business of postal service from 2003 to 2005 (unit: 100 million RMB) - 106 -
Table 64. Status quo of postal service from 1999 to 2003 - 112 -
Table 65. Market scale and growth of letter industry from Jan. to Nov., 2006 - 113 -
Table 66. Market scale and growth of letter industry from 1999 to 2005 - 113 -
Table 67. Comparison of incomes of letter incomes of 1999 and 2005 - 113 -
Table 68. Percentages of business letters and civil letters from 1999 to 2004 - 114 -
Table 69. Package business and growth rate from Jan. to Nov., 2006 - 114 -
Table 70. Income of pakage service from 2003 to 2004 - 115 -
Table 73. Subscribion and sales and growth rate of newpapers in 2006 - 116 -
Table 74. Income of posting newpapers and periodical from 2003 to 2004 - 116 -
Table 75. EMS business and growth rate from Jan. to Nov., 2006  - 118 -
Table 76. Income of EMS from 2003 to 2004 - 118 -
Table 77. Structure of express post market from 2003 to 2004 - 119 -
Table 78. Structure of express post market in 2004 - 119 -
Table 80. Recognition of EMS by residents  - 119 -
Table 82. Balance and growth rate of post savings from Jan., to Nov., 2006 - 121 -
Table 83. Coverage of post savings at the end of June, 2005 - 121 -
Table 84. Balance of post savings from 2003 to 2004 (unit: 100 million RMB) - 122 -
Table 85. Transactions of over-province business by post green card from 2003 to 2004 - 122 -
Table 86. Income of Westunion remitting from 2003 to 2004 - 123 -
Table 87. Advantages and disadvantages of international electronic currency exchange - 124 -
Table 88. Development of insurance agents of postal departments in 2004 - 124 -
Table 89. Other intermedia services by postal departments - 125 -
Table 90. Advantages and disadvantages of Westunion remitting - 127 -
Table 91. Four advantages of post logistics  - 128 -
Table 92. Disadvantages of post logistics - 129 -
Table 93. Opportunity and threat of post logistics - 129 -
Table 94. Income of telecom agency by post industry - 132 -
Table 95. Structur of income of telecom agency by post industry - 132 -
Table 96. Income of information platform and telecom business by China Post - 133 -
Table 97. Stamp collection and growth rate from 2005 to 2006 - 134 -
Table 98. Income of stamp collection business - 134 -
Table 99. Income of export business to the world, Hong Kong, Macao and Taiwan in 2004- 136 -
Table 100. Market structure of export business to the world, Hong Kong, Macao and Taiwan in 2004 - 137 -
Table 101. Investment scale of China Post from 2003 to 2005 (unit: 100 million RMB) - 138 -
Table 102. Investment condition of China Post from 2003 to 2005 - 138 -
Table 103. Types of letter business - 139 -
Table 104. More than 2/3 income is from big customers  - 140 -
Table 105. Comparison of civil letters and business letters - 141 -
Table 106. Analyisis on the use of over-regional counting up by four types of customers - 152 -
Table 107. Assessment of the effect of third phase project of postal green card - 152 -
Table 108. Comparison of logistic business by postal services in every provinces - 154 -
Table 109. Growth of international post business from 2004 to 2008 - 165 -
Table 110. Change of growth rate of postal services in 2005 (%) - 166 -
Table 111. Change of growth of different types of postal service in 2006 (%) - 166 -
Table 112. Capital expence of international telecom industry from 2000 to 2008 - 169 -
Table 113. Industrial chain of 3G industry - 171 -
Table 114. TD-SCDMA chain in China is maturing - 173 -
Table 115. Prediction of mobile subscribers from 2007 to 2009 - 174 -
Table 116. Prediction of investment on 3G network construction from 2007 to 2009 - 174 -
Table 117. Changes of competition structure of China’s telecom facility industry - 175 -
Table 118. Prediction of testing market of 3G contractors in China from 2007 to 2009 - 175 -
Table 119. Demand and market shares of optical fiber and optical cables - 176 -