Chinas Telecom Industry

Starting from the year 1994, the Chinese government has gone for major reforms in the telecommunications industry that was marked by monopolies and inefficiencies. In a span of ten years, the Chinese telecommunications industry has changed from a highly regulated market dominated by the monopolistic China Telecom into a market featuring limited competition. Currently there are six major telecom carriers in China-China Mobile, China Telecom, China Netcom, China Unicom, China Railcom, and China Satcom with none of the carriers having a market share of more than 40%, and in each business segment, including the fixed-line market, at least two carriers are competing with each other.

Aruvian Research analyzes China's Telecom Industry in a PEST Framework Analysis. A PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates.