Internet too expensive for most Chinese

Guangming Daily reports Chinese netizens spend ten times more money on the internet than people in developed countries.

A World Bank report reports Chinese netizens spend an average of RMB83.5 (US$10.8) on the internet every month, more than 10% of their monthly income. People in developed countries (depending on your definition of developed) spend an average of less than 1% of their income to access the same information online. That would be true of the United States, much of Australia and most of the UK.

A reasonable idea is that internet prices in China should be slashed by at least 20 to 30%. (The thought occurs that internet addiction, much in the news, might be fueled by such a cut.)

But it might happen. Earlier this year, Minister of Information Industry Wang Xudong said limits would apply to internet fees in 2007. Not all government promises come true but this seems a likely bet.

China is the world's second largest market for internet and broadband services, but a few state-owned companies still set the prices. As there is little market competition, these companies are understandably reluctant to reduce their fees. The quick way to sort this out is to allow competition and the prices will come tumbling down.

If the prices go down more people will use the internet. Cut the charges by 20 to 30 % and you might get another 20 million users. Which means that the total number of people online could reach 200 million by 2010. What needs to happen is for the prices to be brought down either by sensible discussion or by government order.
Source: China Daily

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