China-based research group Analysys International has given the recent regulatory changes there the thumbs-up, claiming that “in the short term, the new policies will have less than a 10% impact on China’s whole situation; and in a long-term point of view, it is the booster that will improve industrial competency”.
The new rules will force service providers to improve their products and services, according to Analysys, ane will also “speed up the rule of survival of the fittest. Those SPs who lack core competency will be forced out, while leading SPs will further expand market share and market influences”.
“According to Analysys International, the top 10 SPs have accounted for 56% of the total market in China; about 30% in the revenue structure of over 70% small and medium SPs come from gray revenue.”
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