Policy & Regulation

MIIT Wen Ku: Three Years of Speed up and Fee Reduction Cause Remarkable Results

Updated:2018/9/28 21:49

At a forum held by PT EXPO CHINA 2018 on September 27(Beijing Time), Wen Ku, director of the MIIT, said that China attached great importance to the speed up and fee reduction for broadband network. China's broadband network had made great progress since the launch of the speed up and fee reduction work in 2015.

In the past three years, telecom companies had invested more than CNY 1.2 trillion, built more than 10 million kilometers of optical cable lines and built more than 4.5 million 4G base stations. The pilot program of universal telecommunications services had supported 27 provinces and cities across the country and nearly 130,000 administrative villages had access to optical fiber and broadband.

In terms of fixed broadband,China's fiber network users accounted for 87.3% and the fixed broadband family popularizing rate increased to 82% which far exceeding the 70% target set by the 13th Five-Year Plan and completing national planning tasks ahead of schedule. The average download rate for fixed broadband was 21.3M currently which was five times that of 2014. In terms of mobile broadband, the total number of users reached 1.5 billion and the number of 4G users was 1.1 billion accounting for 73% of the total users which was the fifth in the world and the absolute value was the first. In terms of data, the average data usage for users was just 200M per month in 2014 and it was increased to 4.58G by 2018 with an increase of nearly 20 times.

China completely canceled long-distance and roaming charges for mobile phones in 2017. The distinction between local data and national data was cancelled again on July 1 this year. Since the network speed up and fee reduction work had been carried out for three years, the mobile data fee had decreased by more than 90% and the broadband fixed expense had also reduced by over 90% which benefiting over 1 billion people according to comprehensive calculations.

The promotion of speed up and fee reduction had pushed the upstream and downstream of the industrial chain to grow. According to statistics, China’s three major telecom operators had invested CNY 1.2 trillion which was a great boost to the manufacturing industry. The fiber manufacturer FiberHome and the equipment manufacturer Huawei both had benefited from it.

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