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Factors Influencing the Diffusion of the Internet in China: 1997-2001
Unformatted Document Text:  6 competition among China Telecom, China Unicom and China Mobile. The high cost of initial telephone installation prevents most Chinese people from getting access to the Internet at home. Similarly, China’s Internet infrastructure is controlled by the government through ChinaNet and China GBN (Commercial networks), as well as CNCNET, CERNet and CSTNet (Academic networks). These four networks are under the regulation and supervision of the Ministry of Information Industry (MII). Up to January 2001, there were around 520 Internet Service Providers (ISPs) and 600 Internet Content Providers (ICPs) in China. These content providers must obtain license from MII. China officially does not allow cable companies to offer telephony. Cable television networks are banned from offering telecom services, including Internet access. However, some coastal provinces like Qingdao, Shandong and Guangdong have launched cable television networks offering experimental broadband Internet access (Anderson, 2000). According to Tan (et al, 1998), the Chinese government attempted to balance the market competition against the Party’s supreme power over Internet infrastructure development. In spite of all these downsides, China has world’s second largest (after the United States) fixed-line and mobile phone networks, with 140 million and 85 million connected customers. China will become the second largest market for PCs by 2006, according to CCID Consulting Co Ltd. which is affiliated with the Ministry of Information Industry. Many bright prognostications enthusiastically predict an increase in China’s Internet population and future development. International Data Corporation estimated in 1999 that China’s Internet population

Authors: Lin, Jia.
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competition among China Telecom, China Unicom and China Mobile. The high
cost of initial telephone installation prevents most Chinese people from getting
access to the Internet at home.
Similarly, China’s Internet infrastructure is controlled by the government
through ChinaNet and China GBN (Commercial networks), as well as CNCNET,
CERNet and CSTNet (Academic networks). These four networks are under the
regulation and supervision of the Ministry of Information Industry (MII). Up to
January 2001, there were around 520 Internet Service Providers (ISPs) and 600
Internet Content Providers (ICPs) in China. These content providers must obtain
license from MII. China officially does not allow cable companies to offer
telephony. Cable television networks are banned from offering telecom services,
including Internet access. However, some coastal provinces like Qingdao,
Shandong and Guangdong have launched cable television networks offering
experimental broadband Internet access (Anderson, 2000). According to Tan (et
al, 1998), the Chinese government attempted to balance the market competition
against the Party’s supreme power over Internet infrastructure development.
In spite of all these downsides, China has world’s second largest (after the
United States) fixed-line and mobile phone networks, with 140 million and 85
million connected customers. China will become the second largest market for
PCs by 2006, according to CCID Consulting Co Ltd. which is affiliated with the
Ministry of Information Industry. Many bright prognostications enthusiastically
predict an increase in China’s Internet population and future development.
International Data Corporation estimated in 1999 that China’s Internet population


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