The Development Strategy of Information and Telecommunications in the Western China

1
The Development Strategy of Information and
Telecommunications in the Western China

• July 30, 2002
• China Academy of Telecommunications
  Research(CATR), M.I.I.
• P.R.China

2
Contents

• Background
• Position and Role
• Status
• Main Difficulties
• Development Principle, Objective and focus Points
• Corresponding Policies and Measures

3
Background
4
Basic Facts about the Western Region (I)

• Total population
• 355.31 million
• 28.07 of the national total population(2000)
• Rural population
• 253.23 million
• 71.27 of the total population, the number of the
  national total is 63.78 (2000)
• Population of minority nationalities
• 76.54 million
• 21.54 of the total population, the number of the
  national total is 8.41 (2000)

5
Basic Facts about the Western Region (II)

• Area
• 6.87 million sq.km
• 71.5 of the national total
• GDP
• 1665.462 billion RMB
• 18.63 of the national total(2000)
• Per capita GDP
• 4667 RMB
• 65.93 of that of the whole nation(2000)

6
Position and Role (I)

• Underdeveloped regional economy
• Large amount of poverty-stricken population in
  this region
• Great potentials in this region
• Plentiful underdeveloped natural resources
• Great market potential

7
Position and Role (II)

• The position and role of info-communications
• The info-communications industry is a basic
  industry with strategically implication for the
  regional economy and the national economy.
• The rapid development of info-communications will
  help bridge the digital divide and eliminate
  poverty.
• Brief Summery
• The enforcing development of info-communications
  in the western region is one of the important
  parts of the west development strategy in
  China.

8
Status

• Achievements
• The info-communications industry in the western
  China has made eye-catching achievements and the
  telecommunication infrastructure improved
  greatly. These progresses support the national
  west development strategy efficiently.
• Gaps
• The gap between the east and west still exist in
  many aspects, such as the penetration rate of
  services, the basic networks and the information
  application.

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Phone Subscribers Increasing
10
Composition of Telephone Subscribers (2001
year-end )
11
Penetration Rate Increasing(1999-2001)
12
Internet Subscribers Increasing
13
Telecommunications Facilities Improvement(Year-end
)
14
GapMain Line Penetration Comparison
15
GapMobile Penetration Comparison
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GapTelecommunications Facilities

• The transmission capacity and coverage of the
  long distance backbone networks of the western
  region are much insufficient compared with those
  of the eastern region.
• There is a wide gap between the local
  transmission networks of the western China and
  that of the eastern China.

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GapInformation Application

• The practical application level of local and
  domestic long-distance services and mobile
  services in the western region is much lower than
  that of the eastern region.
• In the using of newly rising telecommunication
  services such as Internet service the gap between
  the east and west is quite wide.

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Internet Users Comparison
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StatusBrief Summery

• How to improve the telecom infrastructure,
  cultivate and develop the telecom service market
  and improve the level of the telecom consumption
  and information resources application of the
  local inhabitant, are the key factors for China,
  and need to be solved.

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Main Difficulties

• The unfavorable natural environment the
  underdeveloped economy ? high cost of
  construction and operation and low payment
  capability of the consumers
• Financing difficulties and low self-development
  capacity of info-communications enterprises.
• Brief summery The comprehensive development of
  info-communications in the west rural areas can
  not only depend on local info-communications
  enterprises but also need the supports of the
  whole society and related industries.

21
Basic Statistics of the Underdeveloped
Economy(2000)

• the per capita GDP
• 4667 RMB
• 37.89 of that of the eastern region
• the per capita annual income in urban region
• 5630 RMB
• 70 of that of the eastern region
• the per capita net income of rural households
• 1686 RMB
• 51.37 of that of eastern region

22
Basic Statistics of the Underdeveloped
Economy(2000)

• the per capita annual communication services
  expenditure of urban residents
• 200 RMB
• 60 of that of the eastern region
• the per capita transport, post and communication
  services expenditure of the rural households
• 52 RMB
• 32.14 of that of the eastern region

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The Principle of the West Development Strategy

• To push forward the industry by developing
  enterprises
• To develop advantageous services in top priority
• To accelerate the accumulation of enterprise
  capital
• To increase the enterprise operation strength
• With informatization driving industrialization
  and industrialization pushing informatization
• Informatization is the driver for
  industrialization instead of replacing its role
• In informatization, our focus is the renovation
  of traditional industries of the western China.

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The Objectives and Focuses of the West
Development Strategy

• Objectives
• to narrow the digital divide between haves
  and have-nots
• become a leading industry that promotes the
  development of economy in the western China.
• Focuses
• the infrastructure build-out
• the initiative of the information service industry

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Corresponding Policies and Measures

• To establish and optimize the regulation
  mechanism, create a fair, equitable and
  transparent market environment by reinforcing law
  formulation and establishing reasonable rules for
  market competition.
• To establish the policy mechanism of universal
  service of info-communications with reference to
  the international conventions, and motivate
  relative enterprises to undertake the tasks of
  social development actively by economic leverage.

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Corresponding Policies and Measures(Continued)

• To encourage all kinds of investment at home and
  abroad into the info-communications sector, so as
  to promote telecom competition, lower prices and
  improve service quality.
• To provide the info-communications enterprises in
  the western region with necessary financial
  support such as governmental investment and
  preferential fiscal charges, and broaden the
  financing channels of the enterprises.

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Corresponding Policies and Measures (Continued)

• To accelerate the info-communications
  infrastructure build-out by pushing forward the
  integration of telecom network, computer network
  and CATV network.
• To develop human resources by providing education
  and training and by creating a good environment
  that can attract and retain talents.

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Thank you very muchfor your attention!