Sub-anchor: How to reduce costs of broadband access?

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For more on the investigation into the countrys telecom giants China Telecom and China Unicom, we are joined in the studio by reporter Li Kefu.

Q1: Can you give us more background on Chinas Internet market?

A: China now ranks as the Number 1 Internet market in the world. According to the China Internet Network Information Centre, Chinas Internet users reached 485 million in June this year. It is projected that Chinas Internet population will reach 718 million in two years, accounting for more than 50% percent of global internet users. Despite having the worlds largest number of internet users, Chinas Internet access speed lags behind. According to a report published by Chinas Internet information center, a government research agency, the countrys average Internet access speed is about 100 kilobytes per second, compared with the global average of about 230 kilobytes per second. China only ranks 71st globally in broadband speed. However, its not cheap. The average costs of Internet access here are three to four times those of developed countries. Its no surprise that fingers are pointing at China Telecom and China Unicom. Many argue that its the lack of competition in the market that has led to the current situation.

Q2: Will competition reduce the costs of broadband access at all?

A: It should do. According to the National Development and Reform Commission, with full competition in the broadband market, the cost of broadband access would be 27 to 38 percent lower. That equals a saving of 10 to 15 billion Yuan for Chinese Internet! users. In the United States, for example, which has almost 70 million Internet users; consumers are able to choose from a list of broadband providers, which includes AT&T, Comcast, Time Warner and Verizon. And Americans have a cheaper internet service compared with Chinese Internet users. Some also point out that anti-monopoly measures should not be limited to Chinas Internet providers, but should also apply to other monopolies of Internet content. For example, Baidu.com takes more than 70 percent of Chinas Internet search market. Tencent, the online communication giant, occupies nearly 80% of the online communication market in this country. The investigation into China Telecom and China Unicom can only be a start.

Editor:Zhang Dan |Source: CNTV.CN



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