This week, the State Council of China announced that it plans to increase the nationwide speed and reduce fees. According to reports, this three-year broadband network plan will spend 182 billion US dollars (about 1.1 trillion yuan).
The State Department stated in its policy statement that there is still a big gap between China's Internet speed and international standards and the expectations of Chinese citizens. There are also problems such as high network fees, unbalanced urban and rural development, and limited service quality.
According to the plan, the construction of LTE and optical fiber networks will accelerate. In 2015, more than 80 million households and 10,000 villages and towns will be connected to optical fiber, and an additional 14,000 villages and towns will receive broadband coverage. This year's planned expenditure is estimated to be about 69 billion U.S. dollars (about 427.51 billion yuan), and another 113 billion U.S. dollars (about 700.013 billion yuan) will be spent in 2016-2017.
The State Council has set a goal to complete the construction of 1.3 million LTE base stations by the end of the year to support more than 300 million 4G users.
“By the end of 2017, all households above the prefecture level will be able to connect to 100Mbps fiber optic networks, 80% of villages and towns will cover fiber optic networks, all cities and towns will cover 4G networks, and broadband rates of municipalities and provincial capitals will reach 30Mbps.†said the State Council. .
MobileWorldLive reported that China's broadband speed ranks 80th in the world. Akami Technology has found that compared to the average global network speed of 4.5 Mbps, China's average network speed is only 3.4 Mbps.
Reuters reported that the planned investment will bring benefits to equipment manufacturers, such as Ericsson, the merged Nokia Alcatel-Lucent, and domestic hardware vendors Huawei.
The China National Information Center stated: "The competition in the market is not enough, which leads to relatively high telecom costs and room for improvement in service quality."
In China, there are three mobile network operators approved by the State, namely China Mobile, China Telecom and China Unicom. The three companies operate a joint venture called China Tower Corporation. The joint venture is responsible for the construction, management and operation of base stations and other broadband network infrastructure accessories.
Note: This article uses the exchange rate of 1 US dollar = 6.1958 yuan
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