Ministry of Industry and Information Technology: Broadband infrastructure to invest 2 trillion

A few days ago, the State Council announced the "Broadband China Strategy and Implementation Plan", which for the first time positioned the broadband network at the national level as a strategic public infrastructure for China's economic and social development. Like the basic supporting facilities such as electricity, gas, and tap water, it is included in the relevant plans for economic and social development and urbanization in China.

On September 18, Shang Bing, the deputy minister of the Ministry of Industry and Information Technology, interpreted the broadband China strategy. Shang Bing said: "Broadband development has become a key area for the development of strategic emerging industries. Some technology areas related to broadband technology include the next-generation Internet, fourth-generation mobile communications, cloud computing, Internet of Things, etc. The ascendancy is also a core focus area in the current competition in the field of information and communication technology, so it must be strategically attached to broadband development. "

In recent years, China's broadband coverage area has continued to expand. As of the end of 2012, China's optical fiber and 3G networks have covered all cities and towns in the country, 87.9% of administrative villages have broadband, fixed broadband household penetration has reached 32.2%, and 94.3% of fixed broadband users have access bandwidths of 2 megabits per second or more.

However, China's broadband population penetration rate is far below the level of 25.6% in developed countries, and 40% of users still use broadband access below 4 megabits / second, far below the mainstream rate of 18 megabits / second in developed countries. The high fees, poor service, and wide broadband are becoming common problems reported by users.

According to relevant persons from the National Development and Reform Commission, since the financial crisis, developed countries and 127 developing countries have issued and implemented broadband strategies or related action plans to strengthen overall planning and strategic guidance, and strive to achieve super-conventional development of broadband by coordinating government and market forces. Seize the commanding heights of international competition.

Shang Bing revealed that according to calculations by relevant departments, the implementation of the Broadband China strategy, including investment in broadband infrastructure in both fixed broadband networks and mobile broadband networks, will require roughly 2 trillion yuan from now until 2020.

Where did the huge amount of funds come from? Shang Bing said that in order to solve such a large investment, the principle of combining government guidance and market regulation should still be adhered to. On the one hand, the government cannot be offside. Simply put, it cannot be replaced by the government. It should play the role of the market mechanism and the basic role of the market in allocating resources. By opening the market, encouraging competition, and guiding and promoting investment and construction of enterprises.

In rural and western regions where broadband penetration is much lower than in cities, due to low return on investment, industrial investment, financial support, tax incentives and other policies will be granted from the level of government guidance. At the same time, it will adjust the operation evaluation mechanism of the three major telecommunications companies, and guide and support enterprises to tilt broadband network investment to the central and western regions and rural areas.

Regarding the strategic deployment of broadband in China, Shang Bing said that in 2012 and 2013, it is mainly to speed up the overall popularization, focusing on solving the problem of increasing network speed and improving the user experience. From 2014 to 2015, the key popularization and promotion stage will focus on solving network coverage, including fixed network coverage and 3G, 4G mobile network coverage, while increasing user penetration, especially in rural and central and western regions. After 2015 is the stage of optimization and upgrading to improve the level of the entire industrial chain.

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