China is likely to give more than 100 private companies access to broadband access network business by the end of 2016, reported the Xinhua-run Economic Information Daily citing a source from the Ministry of Industry and Information Technology (MIIT) Thursday.
So far, over 50 private broadband access network suppliers in Beijing, Tianjin, Shandong, Jiangsu, and Shaanxi have been licensed to pilot the business and many more have applied to local telecom authorities for qualification.
China allowed private businesses to enter broadband access network market on December 25, 2014 to encourage private investment in telecommunication sector.
On September 23, 2015, Chinese Internet regulator - MIIT decided to permit 44 more cities to open access to broadband access network business to private enterprises, driving total number of cities piloting the business to 61 ones.
China Merchants Securities said in its report that private investment in broadband access network market would directly boost broadband infrastructure sector, which, being closely related to many fields such as fiber optic, switchboard, server, data center, and maintenance equipment, meant a market with over 100 billion yuan value.
On stock market, companies engaged in broadband access network business including ZTE Corporation (000063.SZ), Dr. peng Telecom & Media Group Co., Ltd. (600804.SH), Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) may benefit from the news.
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