Information Technology Reference
In-Depth Information
Chapter 3
Examining the Influence
of Government Policy on
Broadband Internet Access:
The Case of China
Qiuyan Fan
University of Western Sydney, Australia
ABSTRACT
Governments worldwide are driving initiatives to deploy broadband infrastructure and services. China
has topped the world broadband market with the total broadband user base exceeding 320 million
(CNNIC, 2009). However, a closer analysis indicates that broadband in China is less advanced in terms
of penetration rate, access speed and price. Why China is lagging? Despite the fact that broadband
performance and adoption are determined by both non-policy factors and policy factors, the OECD
experience shows that smart national broadband policies are the key to broadband success. This chapter
reviews and analyzes relevant regulations and government policies pertaining to broadband develop-
ment in China using a multiple perspective model. The primary goal of this chapter is to examine how
various policy factors interplay to affect broadband deployment and performance in the case of China.
This research shows that the Chinese approach to broadband development has not produced desirable
results. Several factors affect the growth of broadband. The most significant is lack of a detailed national
broadband plan with clearly stated goals, performance targets and action plans for implementation.
China's regulatory arrangement and approaches to regulating broadband industry have failed to es-
tablish a well functioning and competitive market and to drive high levels of broadband performance,
investment and innovation.
INTRODUCTION
portunities to individuals and businesses in China
over the past decade. China's broadband sector
has experienced an exceptional annual growth
rate of 80 percent in the last three years. As of 30
June 2009, the broadband users reached 320 mil-
lion while the Internet users reached 338 million
Broadband has been considered as a way of boost-
ing national competitiveness and bringing new op-
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