Industry Trend Analysis - Belt & Road: Accelerating Chinese International Presence In TMT - MAY 2017

BMI View: The Belt & Road initiative facilitates increased investment in telecoms infrastructure and services in markets along strategic routes. For Chinese telecoms operators and equipment providers, it mainly acts as an accelerator of their global expansion strategies. It provides opportunities to deepen their presence in developing markets and position themselves for future data and cloud services growth.

China's Belt & Road (B&R) initiative (also known as One Belt, One Road) aims to create trade and transport corridors between China and Europe via Central Asia, South East Asia, South Asia, the Middle East and East Africa. Although not well publicised, the development of telecoms infrastructure and deployment of TMT services along B&R routes is just as critical to economic development as transport projects.

For TMT players, government objectives point to improving connectivity and enhancing regional integration. The March 2015 government reports 'Vision and Proposed Actions on Jointly Building Silk Road Economic Belt' and '21st-Century Maritime Silk Road' outline plans for the TMT sector, underlining the need to construct cross-border optical cables and other trunk line networks as well as creating an 'Information Silk Road'. China's telecoms operators are also encouraged to speed up their global market expansion, increase their outbound investment and establish overseas research and development institutions.

TMT Investment On The Rise
China M&A Value In B&R Markets By Sector, 2015 - June 2016, (USDbn)
Note: includes Hong Kong, Macao and Taiwan dat; Source: Mergermarket.

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