China Telecom Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The China telecom market size, valued at USD 476.24 Billion in 2024 has experienced significant growth, driven by the expanding urban population and their rising disposable income that is resulting in the growing demand for high-bandwidth telecom services, including 5G network connections. The market is projected to grow at a compound annual growth rate (CAGR) of 3.10% from 2025 to 2034, potentially reaching USD 646.27 Billion by 2034, supported by government efforts such as the launch of telecom satellites, and the promotion of research for the development of 6G networks.

China Telecom Market Growth

The increasing adoption of satellite phone services, driven by the lack of adequate connectivity infrastructure in rural regions, is enhancing the growth of the China telecom market. In response, the country has raised the number of satellite deployments at an accelerated pace, especially from suitable bases such as Hong Kong, to provide high-speed internet, voice, and broadcast services to areas where traditional terrestrial infrastructure is difficult or expensive to implement. China made Hong Kong a key launch hub for the expansion of direct-to-phone satellite service in May 2024, in collaboration with Hong Kong Telecom, Hutchinson Telecom, and SmarTone organisations.

Besides, strategic partnerships among major telecom industry players are also becoming a significant growth driver of the market. Telecom companies in China are increasingly collaborating with global technology firms, content providers, and infrastructure developers to expand their service offerings and improve network capabilities. For instance, in 2023, ABB and China Telecom unveiled a joint digitalisation and industrial IoT laboratory in Hangzhou, China, focusing on the development of comprehensive digital solutions that incorporate ABB sensor technology, China Telecom’s 5G network, industrial IoT and connectivity technology, as well as cloud computing.

Key Trends and Developments

The expansion of 5G services, the launch of new telecom satellites, and rising foreign investments are driving the China telecom market value.

November 2024

Chinese tech giant Huawei launched its first smartphone, the Mate 70, featuring a fully homegrown operating system, HarmonyOS Next. Moreover, the smartphone is powered by an advanced domestically produced chip. According to the company's online shopping platform, over three million orders were placed shortly after the launch.

September 2024

China Telecom Global held the inauguration ceremony for its Artificial Intelligence Innovation Center and Security Business Innovation Center in Hong Kong, representing a significant step in implementing the company’s strategy for high-quality development, building new productive forces, and advancing its cloud and digital transformation initiatives.

July 2024

ZTE Corporation, Yangtze Optical Fibre, Cable Joint Stock Limited Company (YOFC) and Huaxin Design Institute assisted China Telecom in launching the world's first demonstration project of a hollow-core fibre transmission system. This system features single-wavelength 1.2Tbit/s, unidirectional beyond-100Tbit/s, and a transmission distance of 20km in a live network.

April 2024

China Mobile launched the world’s first commercial 5G-Advanced network in collaboration with Ericsson, aimed at developing practical use cases. The launch was initially rolled out in 100 cities across the country, with plans to extend to over 300 cities by the end of 2024. Furthermore, China Mobile confirmed that it will launch 20 5G-A-compatible devices by the end of 2024 as well.

Expansion of 5G Services is Fuelling the Growth of the China Telecom Market

The expansion of 5G services is driving significant growth in market by enabling faster and more reliable connectivity across industries. Telecom leaders such as China Mobile, China Telecom, and China Unicom leading the rollout, 5G is transforming multiple projects and industries such as the development of smart cities, autonomous vehicle manufacturing, and expansion of IoT services, while boosting demand for high-speed services, including HD video streaming and real-time gaming. In September 2022, China Broadcasting Network Corp (China Broadnet), officially expanded its 5G services to all 31 provincial-level regions, where China Telecom and China Unicom received 100mHz in the 3.5GHz band respectively.

Launch of New Telecom Satellites is Leading to the China Telecom Market Development

The launch of new telecom satellite is playing a crucial role in the development of China’s telecom market by enhancing connectivity in both urban and remote areas, especially, where traditional infrastructure is negligible or unavailable. These satellites are improving internet access, communications, and broadcasting services, thereby driving economic growth, and bridging the digital divide across the country. China Mobile launched two low earth orbit experimental telecom satellites in February 2024 to test 5G and 6G infrastructure spanning across the country, specifically in terms of integrating satellite and terrestrial networks.

Rising Foreign Investments is Impacting the China Telecom Market Revenue

Rising foreign investments are promoting infrastructure development, innovation, and technological advancements in the telecom industry, thereby increasing its overall market value. Global investors are seeking to tap the market’s vast potential, to accelerate the rollout of next-generation networks, including 5G and 6G, particularly in underserved areas. Ministry of Industry and Information Technology (MIIT), in April 2024, officially launched a pilot program to remove the longstanding 50% foreign ownership cap on data centres and other value-added telecom services (VATS), allowing full foreign ownership in the sector.

Expansion into International Markets is Influencing the China Telecom Market Dynamics and Trends

The expansion of key players into international markets is aiding the revenue growth of the China telecom industry. A few of these players include China Telecom, China Mobile, Huawei and ZTE. In November 2024, China Telecom Gulf officially launched its business operations in Riyadh, marking a significant effort in the company’s efforts to offer comprehensive services under the "Belt and Road Initiative" and to promote the building of a "China-Arab Community with a Shared Future”. These initiatives are enabling Chinese companies to leverage economies of scale, expand customer base, and foster cross-border collaborations, thereby strengthening their position in the domestic and international telecom markets.

China Telecom Market Trends

China has begun testing 6G technology, opening new opportunities for the telecom industry in the long run. In July 2024, a team of Chinese researchers from the Beijing University of Posts and Telecommunications revealed the ‘world’s first’ 6G field test network, demonstrating that communication could achieve 6G transmission capabilities using existing 4G infrastructure. If deployed, the network is expected to deliver ultra-high speeds, near-zero latency, and seamless connectivity across a diverse range of devices in a far superior way when compared to 5G technology, supporting the China telecom market. Additionally, it will facilitate transformative applications such as immersive augmented and virtual reality (AR/VR), advanced AI-powered services, autonomous systems, and the Internet of Everything (IoE).

China Telecom Industry Segmentation

The EMR’s report titled “China Telecom Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Fixed Voice Services
• Fixed Internet Access Services
• Mobile Voice Services
• Mobile Data Services
• Pay-TV Services
• Machine-to-Machine (Mobile IoT) Services

Market Breakup by Transmission

• Wireline
• Wireless

Market Breakup by Region

• North China
• East China
• Southwestern China
• Southcentral China
• Northeast China
• Northwestern China

China Telecom Market Share

Launch of new OTT platforms is increasing the telecom-based pay-TV services in China

With an increasing shift in consumer preferences towards on-demand content, OTT platforms such as iQIYI, Tencent Video, and Youku are transforming the television entertainment landscape. This is further being enhanced by new OTT launches such as the LaLiga Plus direct-to-consumer (DTC) platform launched nationwide in August 2022, which provided access to live matches free of cost, with high-profile content reserved pay-per-view (PPV). These platforms offer a wide range of exclusive content, attracting millions of subscribers, and encouraging telecom providers to capitalise on the same by bundling Pay-TV services with high-speed broadband and mobile data packages.

As per the China telecom market report, the growing number of internet users in China is also driving an increase in fixed internet access services by telecom providers. According to a report by the China Internet Network Information Center (CNNIC), the country, had over 1.09 billion internet users as of December 2023, a year-on-year increase of 24.8 million from December 2022. This increase has raised the demand for fixed broadband or internet access services, encouraging telecom providers to enhance their offerings with faster speeds and more competitive pricing.

Growing number of smartphone users are increasing the share of wireless transmission in the telecom industry

The growing number of smartphone users is significantly increasing the share of wireless transmission in China telecom market, as they have become essential for daily communication in the 21 st century. According to the industry reports, domestic smartphone sales in the country grew by 2.3% year-on-year in the September 2024 quarter. Furthermore, smartphones are not only used as wireless telecom devices, but are also being leveraged for online entertainment, and conducting business activities with the help of digital transactions, driving a greater reliance on wireless networks, particularly 4G and 5G technologies, to support the high-speed data transfer and seamless connectivity.

As per the China telecom market analysis, the share of wireline transmission is also increasing due to the expansion of optical fibre networks in Chinese provinces. These networks offer higher bandwidth and faster speeds compared to traditional copper lines, making them essential for meeting the increasing demand for data-intensive services such as video conferencing, high-definition streaming, and large-scale cloud computing. China expanded its optical fibre network in 2023, by installing nearly 4.74 million km of optical fibre cable, bringing the national total to 64.32 million km, according to the estimates from the Ministry of Industry and Information Technology.

China Telecom Market Regional Analysis

East China is leading the China telecom market owing to increasing efforts of 5G expansion by key market players

In East China, Shanghai has emerged as a leading hub for 5G services in China, with key industry players consistently participating in 5G expansion efforts. The city's advanced infrastructure, high-tech industries, and demand for seamless connectivity are key factors encouraging the China telecom market growth. Besides, 5G technology is contributing to the city’s overall growth by aiding the development of smart cities, Internet of Things (IoT) solutions, and autonomous systems. As a result, telecom operators are investing heavily in 5G network deployment eyeing future growth and stability in the telecom market. On May 20, 2024, the China Association of Metros approved the standards of these networks, paving the way to introduce 5G technology to rail transport across the city.

Besides, Beijing’s rising urban population is also driving the growth of the China telecom market. According to the country’s National Statistics Office, the city’s urban population grew from 41,540 in 2022 to 43,760 in 2023. This rise has contributed significantly towards the demand for mobile and broadband services, especially advanced network connections, including 4G and 5G. Besides, the city’s dense population drives high data consumption across mobile networks, as well as increasing demand for high-speed internet and digital services.

Competitive Landscape

China telecom market key players are expanding their product and services range to include emerging technologies such as 5G, satellite communication devices, cloud computing, artificial intelligence (AI), Internet of Things (IoT) and more. They are also investing in the research and development of 6G networks, aiming for future growth and long-term stability in the market.

ZTE Corp.

ZTE Corp. was founded in 1985, with headquarters in Shenzen, China. It is a leading global provider of integrated information and technology communication (ICT) services. Its specialities include enterprise telecom solutions, carrier networks, development of mobile devices, and providing 5G, LET, 4G, and AI services.

Wingtech Technology Co. Ltd.

Based in China, it was founded in 2006 as a global communication devices and semiconductors manufacturing company. In the semiconductor segment, the company specialises in the R&D and design of semiconductor power devices and analogue chips, besides wafer manufacturing, packaging, and testing. Among communication devices, the company is widely known for its mobile phones, tablets, laptops, IoT, and automotive electronic products.

Singtel Optus Pty

Founded in 1991, and headquartered in Melbourne, Victoria, Singtel Optus is a leading distributor of mobile and internet services. It specialises in selling mobile plans, mobile phone devices, home internet and prepaid internet services. Besides, the company is also a well-known distributor of tablets and smartwatches across the globe.

China Satellite Communications Co. Ltd.

Headquartered in Beijing, itis a subsidiary of the China Aerospace Science and Technology Corporation (CASC) specialising in satellite communications and broadcasting services. It provides secure and reliable TV broadcasting and transmissions to the public, customised clients, and key industrial customers, including timely and reliable communications capacity serving major events, emergencies, and disaster relief efforts.

Other key players considered in the China telecom market report are Tencent Holdings Ltd., China Telecom Corp., China United Network Communications Group Co., Ltd., Jiangsu Zhongtian Technology Co., Ltd., China Railway Signal & Communication Corp. Ltd., and FiberHome Telecommunication Technologies Co., Ltd., among others.