By the end of July, 2007, there have been more than thirty public companies in mainland China, including China Unicom, Bird, Datang, Eastern Communications, Yangtze Communication, China Satcom Guomai Communications, and ZTE etc.

Turnover Trends of China Unicom, 2001-2006

In Jan-May 2007, the total business value of China communication industry reached RMB 748.2 billion, up 26.1% year-on-year, among which the telecommunication business amounted to RMB 715.05 billion, up 26.8%; and the postal business RMB 33.15 billion, up 13.2%. Generally, the operating income of China communication industry reached RMB 318.67 billion, increasing 10.1% year-on-year, among which the operating income of telecommunication business was RMB 288.68 billion, increasing 9.6%; and postal business RMB 29.98 billion, increasing 15.2%.

Fixed phone users kept rising slowly. From Jan to May 2007, fixed phone users increased by 4.39 million to 372.21 million, among which the newly increased fixed phone users in May were 213,000. From Jan to May 2007, telephone users in cities increased 2.70 million up to 254 million, the newly increased telephone users in the countryside were 1.70 million to 118 million. Wireless users decreased by 211,000, reaching to 90.92 million, accounting for 24.4% that of the fixed telephone users and descending by 0.4%.

Since the second half of 2006, mobile users were increasing each month. Mobile phone users tended to accelerate the pace of growth. In May 2007, newly increased telephone users in China were 7.16 million, adding up the user of mobile phone to 494.60 million. It is estimated that in the first half of this year, it would break the record of 500 million households. As the same time, internet users of fundamental telecom enterprises will tend to adopt broadband a lot. From Jan to May 2007, internet users adopting dial will decrease by 4.59 million to 21.84 million. While users newly access to broadband internet were 6.34 million, reaching 58.24 million.

As for the business structure, income from mobile communication and income from fixed data communication increased by 16% and 45.9% year-on-year respectively, each taking up 2.74% and 1.95% higher in its proportion to the total communication business income. In contrast, income from local fixed telephone decreased 4.2% year-on-year, accounting for 3.71% lower in its proportion to the total communication business income. In mobile communication field, mobile data service develops fast, with business income growth to 31.4%. Fixed local call dropped by 5.1% year-on-year, whereas, mobile local call increased by 35.5%, which showed us with a stronger substitutive for fixed phones. From Jan to May 2007, total distant call time was 162.35 billion minutes, increasing 19.7% year-on-year, among which the traditional distant fixed telephone call time, distant mobile call time, IP Mobile call time increased by 6.4%, 59.1% and 4.7% respectively. Distant mobile call time took up 35.4% of total distant call time, increasing 8.8% year-on-year. Meanwhile, both proportions of distant fixed telephone call time and IP telephone time dropped somewhat.

This report introduces thirty stock listed communication companies on overall comparison, performance, operating and investment, and gives detailed analysis on major business structure and new market trend.

2. Analysis of Overall Data from listed Companies in China Communication Industry
2.1 Operating and Financial Index
2.2 Main Business Structure
2.3 Performance of the Companies

3. Listed Companies in Communication Industry in 2006-2007
3.1 China Unicom (600050)
3.1.1 Brief Introduction
3.1.2 Operation and Income
3.1.3 Investment
3.1.4 Main Business Structure
3.1.5 Latest Market Trend and Future Development
3.2 Sunwave Communication (002115)
3.2.1 Brief Introduction
3.2.2 Operation and Income
3.2.3 Investment
3.2.4 Main Business Structure
3.2.5 Latest Market Trend and Future Development
3.3 Jiangsu ETERN Group (600105)
3.3.1 Brief Introduction
3.3.2 Operation and Income
3.3.3 Investment
3.3.4 Main Business Structure
3.3.5 Latest Market Trend and Future Development
3.4 China Satcom (600118)
3.4.1 Brief Introduction
3.4.2 Operation and Income
3.4.3 Investment
3.4.4 Main Business Structure
3.4.5 Latest Market Trend and Future Development
3.5 Guomai Technologies (002093)
3.5.1 Brief Introduction
3.5.2 Operation and Income
3.5.3 Investment
3.5.4 Main Business Structure
3.5.5 Latest Market Trend and Future Development
3.6 Bird (600130)
3.6.1 Brief Introduction
3.6.2 Operation and Income
3.6.3 Investment
3.6.4 Main Business Structure
3.6.5 Latest Market Trend and Future Development
3.7 Datang (600198)
3.7.1 Brief Introduction
3.7.2 Operation and Income
3.7.3 Investment
3.7.4 Main Business Structure
3.7.5 Latest Market Trend and Future Development
3.8 Daheng New Epoch (600288)
3.8.1 Brief Introduction 
3.8.2 Operation and Income
3.8.3 Investment
3.8.4 Main Business Structure
3.8.5 Latest Market Trend and Future Development
3.9 Yangtze Communication (600345)
3.9.1 Brief Introduction
3.9.2 Operation and Income
3.9.3 Investment
3.9.4 Main Business Structure
3.9.5 Latest Market Trend and Future Development 
3.10 Routon Electronic (600355)
3.10.1 Brief Introduction
3.10.2 Operation and Income
3.10.3 Investment
3.10.4 Main Business Structure
3.10.5 Latest Market Trend and Future Development 
3.11 Zhongchuang Telecom Test (600485)
3.11.1 Brief Introduction
3.11.2 Operation and Income
3.11.3 Investment 
3.11.4 Main Business Structure
3.11.5 Latest Market Trend and Future Development 
3.12 Hengtong Photoelectric (600487)
3.12.1 Brief Introduction
3.12.3 Operation and Income
3.12.3 Investment 
3.12.4 Main Business Structure
3.12.5 Latest Market Trend and Future Development 
3.13 Fiberhome Mobile Communication (600498)
3.13.1 Brief Introduction
3.13.2 Operation and Income
3.13.3 Investment 
3.13.4 Main Business Structure
3.13.5 Latest Market Trend and Future Development 
3.14 Zhongtian Technology (600522)
3.14.1 Brief Introduction
3.14.2 Operation and Income
3.14.3 Investment 
3.14.4 Main Business Structure
3.14.5 Latest Market Trend and Future Development
3.15 New Sea Union Telecom (002089)
3.15.1 Brief Introduction
3.15.2 Operation and Income
3.15.3 Investment
3.15.4 Main Business Structure
3.15.5 Latest Market Trend and Future Development 
3.16 China Satcom Guomai Communications (600640)
3.16.1 Brief Introduction
3.16.2 Operation and Income
3.16.3 Investment
3.16.4 Main Business Structure
3.16.5 Latest Market Trend and Future Development
3.17 Shanghai Feilo (600654)
3.17.1 Brief Introduction
3.17.2 Operation and Income
3.17.3 Investment
3.17.4 Main Business Structure
3.17.5 Latest Market Trend and Future Development
3.18 C&W Technology (600658)
3.18.1 Brief Introduction
3.18.2 Operation and Income
3.18.3 Investment 
3.18.4 Main Business Structure
3.18.5 Latest Market Trend and Future Development
3.19 Aerospace Communications (600677)
3.19.1 Brief Introduction
3.19.2 Operation and Income
3.19.3 Investment 
3.19.4 Main Business Structure
3.19.5 Latest Market Trend and Future Development
3.20 Shanghai Potevio (600680)
3.20.1 Brief Introduction
3.20.2 Operation and Income
3.20.3 Investment
3.20.4 Main Business Structure
3.20.5 Latest Market Trend and Future Development
3.21 Coship Electronic (002052)
3.21.1 Brief Introduction
3.21.2 Operation and Income
3.21.3 Investment
3.21.4 Main Business Structure
3.21.5 Latest Market Trend and Future Development
3.22 CEC Corecast (600764)
3.22.1 Brief Introduction
3.22.2 Operation and Income
3.22.3 Investment
3.22.4 Main Business Structure
3.22.5 Latest Market Trend and Future Development
3.23 Eastern Communications (600776)
3.23.1 Brief Introduction
3.23.2 Operation and Income
3.23.3 Investment
3.23.4 Main Business Structure
3.23.5 Latest Market Trend and Future Development
3.24 Sun-create Electronics (600990)
3.24.1 Brief Introduction
3.24.2 Operation and Income
3.24.3 Investment 
3.24.4 Main Business Structure
3.24.5 Latest Market Trend and Future Development
3.25 Shenzhen Sed Industry (000032)
3.25.1 Brief Introduction
3.25.2 Operation and Income
3.25.3 Investment 
3.25.4 Main Business Structure
3.25.5 Latest Market Trend and Future Development
3.26 China Kejian (000035)
3.26.1 Brief Introduction
3.26.2 Operation and Income
3.26.3 Investment 
3.26.4 Main Business Structure
3.26.5 Latest Market Trend and Future Development
3.27 ZTE (000063)
3.27.1 Brief Introduction
3.27.2 Operation and Income
3.27.3 Investment
3.27.4 Main Business Structure
3.27.5 Latest Market Trend and Future Development
3.28 CITIC Guoan (000839)
3.28.1 Brief Introduction
3.28.2 Operation and Income
3.28.3 Investment
3.28.4 Main Business Structure
3.28.5 Latest Market Trend and Future Development
3.29 Huiyuan Communication (000586)
3.29.1 Brief Introduction
3.29.2 Operation and Income
3.29.3 Investment 
3.29.4 Main Business Structure
3.29.5 Latest Market Trend and Future Development
3.30 Fuzhou FuFa (000547)
3.30.1 Brief Introduction 
3.30.2 Operation and Income
3.30.3 Investment 
3.30.4 Main Business Structure
3.30.5 Latest Market Trend and Future Development

4. Development Trend of China Communication Industry after 2007