Wireless Telecomms

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Wireless Telecomms in China Korea Country
Overviews Setting the Scene Maurice Potts UK
Trade Investment Tel [phone] Email
maurice.potts_at_uktradeinvest.gov.uk
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(No Transcript)
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Country Overview

• Within ICT, both Korea and China have a common
  high view of strategic importance and are seeking
  to collaborate to advance their own national and
  joint regional interests.
• In telecommunications, Korea pioneered its path
  in the 1990s, with China following Koreas
  example over the past decade.
• Alongside Japan, South Korea is acknowledged as a
  world leader in the deployment and exploitation
  of the new communication technologies.
• China is seeking to emulate the success of its
  neighbours for example, the pioneering
  development and deployment of its home grown
  TD-SCDMA 3G technology.

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Country Overview

• Although approaches from Asia cannot be
  transplanted to the UK, lessons must be learned
  by UK Government and Industry, if the UK is to
  effectively exploit the countrys strengths and
  environment to compete at the forefront of the
  global ICT industry.

Although there are many economic, social,
cultural and geographic differences (from the
UK)this does not mean that their experience
should be disregarded, as there is much that the
UK can learn from these two countries Source
DTI Telecoms Mission, 2005
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National Comparators
Indicator China Korea UK
Geography
Capital Beijing Seoul London
Area 9,956,960 sq km 98,480 sq km 244,820 sq km
Demographics
Population 1.29 billion 48.4 million 60.4 million
Population Growth Rate 0.58 0.38 0.28
Urban population 42.99 80.80 89.20
Population density (inhabitants/km2) 129 491 243
Life expectancy at birth 71.4 yrs 76.85 yrs 78.38 yrs
Ethnic Groups Han Chinese 92 Others 8 Homogeneous (except for about 20,000 Chinese) White 92.1, black 2, Indian 1.8, Pakistani 1.3, mixed 1.2, other 1.6
Central Intelligence Agency, July 2005
UN Common Database, 2005
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National Comparators
Indicator China Korea UK
Economic Indicators
GDP 2.22 trillion 925.1 billion 1.782 trillion
GDP/Capita 1,700 19,200 29,600
GDP growth 10.70 4.60 3.20
Consumer inflation 1.50 3.60 4.80
Industrial Productivity Growth Rate 10.10 0.90
Unemployment 4.20 3.60 4.80
Imports 660 billion 214.2 billion 439.4 billion
Exports 961.9 billion 250.6 billion 347.2 billion
Expenditure on RD (as of GDP) 1.23 2.96 1.90
Currency Renminbi (Yuan) Won British Pound
Mobile penetration 420 million 38.3 million 65.5 million
Broadband penetration 51.9 million 20.5 million 8.8 million
Central Intelligence Agency, July 2004
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China

• People and Geography
• Largest population in the world approx. 1.3
  billion and an area of 9,600,000 sq km. This
  scale is a key factor in shaping the Chinese
  perspective on the telecoms industry and its
  associated technology and standards.
• Shanghai and Shenzhen may be considered as
  representing the commercial and manufacturing
  centres of China.
• Shanghai is a city with a dynamic atmosphere of
  commerce, in every way reflecting its
  entrepreneurial past and embracing of the market
  economy.
• Shenzhen has Special Economic Zone status, and is
  a rapidly growing industrial region with a
  population of new immigrants from other parts
  of China and an average age under 30.

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China

• Economic Development International Trade (1)
• Continuing growth rates of 10, which can be
  traced to major changes over the past three
  decades (see table on next slide)
• move to a more market-orientated economy in 1978
• increased the authority of local officials and
  plant managers in industry
• permitted a wide variety of small-scale
  enterprise in services and light manufacturing
  and
• opened the economy to growing foreign trade and
  investment (Special Economic Zones - SEZs).
• Joined World Trade Organisation (WTO) in 2001
• legislation aimed at protecting IPR and reducing
  piracy and China has begun to develop its own
  IPR, in areas such as telecoms.

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China
Economic Development International Trade (2)
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China

• Economic Development International Trade (3)
• At start of 2007, China stood as the 2nd largest
  economy in the world at about US10 trillion
  (measured by domestic Purchasing Power Parity).
• By end 2008 expected to overtake Germany as the
  third largest economy (measured by exchange rate)
  , and to overtake Japan by 2020.
• The Central Committee of the Chinese Communist
  Partys 11th 5-year plan for 2006 2010 targets
  a relatively conservative 45 increase in GDP.

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China

• Significance of ICT to the Chinese Economy
• The electronic information products industry is
  Chinas largest industry (by sales revenue), a
  position it has held since 2003, with an annual
  sales revenue of 4.75 trillion Yuan (617
  billion) in 2006.
• Telecommunications plays a major role in this
  figure, with mobile phone production volumes
  estimated at 450-480 million units in 2006, and
  representing almost 50 of the worlds mobile
  phones.
• In 2006, Chinas electronic and information
  products exports were 364 billion, representing
  37 of Chinas total export volume.
• Electronic and information imports import volume
  was 287 billion and representing 36 of Chinas
  total import volume.

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China

• Significance of ICT to the Chinese Economy, cont.
• ITU estimates of teledensity in China in 1990
  were 1. By end 2006 this teledensity figure was
  63, comprising 371m fixed line subscribers and
  481m mobile subscribers.
• Broadband subscribers in China have grown from
  20m in mid 2004 to 52m by early 2007.
• Huawei and ZTE, continue to be the most prominent
  exporters in the Chinese telecoms market, with
  the former adopting a more aggressive
  international profile
• 2005 58 of Huaweis 36 of ZTEs sales were
  exports

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South Korea

• People and Geography
• South Korea is home to a population of 48m, 80
  of the UK figure, within an area of less than 50
  of the UK.
• Almost 50 of the countrys population live
  within the Greater Seoul Metropolitan Area,
  reflecting the central role the city has played
  in South Korea's economic development.
• The very high density of housing (high rise) has
  made a major contribution to Koreas success in
  rolling out new telecommunications
  infrastructures, through a reduced cost of
  deployment/head.
• The population is very IT-literate, due as a
  direct result of an active government policy of
  public provision of IT training during the
  economic downturn of the late 1990s.

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South Korea

• Economic Development International Trade
• Since the early 1960s, South Korea has achieved
  an incredible record of growth and integration
  into the high-tech modern world economy.
• Today Koreas GDP per capita is two thirds that
  of the UK and is reported as being the 10th
  largest economy in the world.
• This success through the late 1980s was achieved
  by a system of close government / business ties,
  including directed credit, import restrictions,
  sponsorship of specific industries, and a strong
  labour effort.
• In 2005 total exports measured 228bn, with 22
  of exports destined for China, and 15 to the USA.

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South Korea

• Significance of ICT to the Korean Economy (1)
• Some 45 of Koreas exports today are ICT-based,
  and the bulk of export growth is ICT related,
  with this sector continuing to show high growth
  year on year.
• In January 2007, Koreas Ministry of Information
  and Communication (MIC) reported that Korea had
  shipped a total of 113 billion worth of ICT
  goods overseas in 2006, up 10.8 from the
  previous year.
• IT imports in 2006 grew 9.1 year-on-year to 58
  billion, bringing Koreas trade surplus in the IT
  sector to a record high of 54 billion. The
  exports of IT products in 2006 were mainly driven
  by semiconductors, digital TVs and flat panels.

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South Korea

• Significance of ICT to the Korean Economy (2)
• Investment in Research and Development, has
  shifted towards and increased proportion of R
  rather than D.
• Korean companies recognised that they needed to
  compete against the US and Europe for high
  technology development rather than against China
  for low cost manufacture.
• This is the case, particularly within the
  ICT-related companies, such as LG and Samsung,
  both of whom are now amongst the world industry
  leaders in several of their fields of activity,
  including mobile communications.