Experts claim that the development of broadband in our country is unbalanced, and advise the separation of network and business

by zzf000zxye on 2011-07-12 15:09:58

Whether it is national or corporate competitiveness, many measurable indicators can be provided, but one of the most representative indicators in the future may be bandwidth.

The main problem with China's broadband is unbalanced development. In some places, the development of broadband lags behind, while in other places there is overbuilding and even oversupply.

In China, networks are almost everywhere. A group of nearly 500 million Internet users and numerous network services such as instant messaging, online videos, and online games have put forward an important practical demand - faster Internet speed and wider networks.

With the continued growth of Internet users and the increasing popularity of network services, broadband is no longer a simple technical issue, but also relates to people's livelihood in the digital field.

At the same time, developed countries such as the United States have vigorously developed broadband network construction as an important strategy to "win the future". Although the number of broadband users in our country ranks first in the world, the gaps in broadband penetration rate, access speed, and tariff level compared with developed countries remind us to pay attention to the current situation and bottlenecks of broadband development from the height of national development strategy.

It is reported that the Ministry of Industry and Information Technology is studying and determining the goals and policy measures for broadband development, and actively recommending the inclusion of broadband at the national strategic level to promote its development.

Network Development

Encountering the "bottleneck" of insufficient broadband

In terms of broadband penetration rate, the report released by China Internet Network Information Center (CNNIC) shows that the number of broadband users in China has ranked first in the world. But according to Wu Hequan, academician of the Chinese Academy of Engineering, by the end of last year, the overall broadband penetration rate in China was 33.5%, while in 2007, the broadband penetration rate in Europe was 35.4%, and this indicator in the United States was 50.9%. The broadband penetration rate in our country has reached the world average, but there is still a certain gap compared with developed countries in the world.

In terms of broadband access speed, according to CNNIC statistics, the average Internet connection speed nationwide is only 100.9 KB/s, far lower than the global average connection speed of 230.4 KB/s, and the problem of "insufficient broadband" is relatively obvious.

In terms of broadband expenditure, according to a report previously released by the Department of Informationization of the National Information Center, if income disparities are considered, South Korea's per capita national income was 6.9 times that of China in 2008, which means that China's broadband fee level is equivalent to 124 times that of South Korea.

In fact, the absolute value of broadband Internet fees for Chinese Internet users is not high. It is just that "the communication charges of Chinese residents account for nearly 10%, while in developed countries it is 4%. That is to say, our Internet users enjoy the same level of communication services as in developed countries, but our income is much lower than that of developed countries, so the proportion is relatively higher," said Wu Hequan.

In the view of Zeng Jianqiu, professor at the School of Economics and Management of Beijing University of Posts and Telecommunications, it is not appropriate to make simple horizontal comparisons with some developed countries and regions, "such as South Korea, Singapore, Hong Kong, these countries or regions are relatively small, so building a broadband network is relatively easier." Zeng Jianqiu also pointed out that "the main problem with China's broadband is unbalanced development. In some places, the development of broadband lags behind, while in other places there is overbuilding and even oversupply." He believed that the uneven development of broadband is similar to expressways. "For example, our roads are always wide, but suddenly they become narrow, from eight lanes to one lane, which easily leads to problems. Therefore, the development of broadband must develop evenly to achieve maximum efficiency."

To some extent, the existing "broadband bottleneck" of China's interconnected networks being not smooth and the cost of broadband being too high has already restricted the development of the network itself. For example, services with usage rates exceeding 60% among Internet users, such as online music, online games, and online videos, are limited by bandwidth, resulting in poor user experience and complaints from related enterprises. In the promising cloud computing industry, China's cost is four times that of the United States.

Broadband Investment

Becomes New Economic Driving Force

In 2010, the U.S. Federal Communications Commission (FCC) submitted a proposal for the national broadband development plan to Congress, aiming to increase the speed of the U.S. broadband network by 25 times on the existing basis. The proposal plans to provide broadband networks with a bandwidth of 500M/s within the next 10 years and mobile devices with a bandwidth of 300M/s within the next 5 years.

On May 19, 2010, the European Commission announced a five-year "Digital Agenda" plan, deploying ultra-high-speed broadband in 27 member states. By 2020, the EU will provide Internet speeds of no less than 30M/s across Europe and provide Internet speeds exceeding 100M/s for at least 50% of European households.

Although South Korea's current broadband network ranks first in the world in terms of average transmission rate and home broadband coverage, the South Korean government is not satisfied. Relevant departments stated that South Korea could build a gigabit broadband network capable of downloading a DVD-level movie in 10 seconds as early as 2013.

"Whether it is national or corporate competitiveness, you can come up with many measuring indicators, but one of the most representative indicators in the future may be bandwidth," said Zeng Jianqiu, who believes that future competition will be competition over bandwidth.

Not only does the development of network economy such as video services and cloud computing depend on broadband Internet, but investment in broadband networks can also indirectly drive consumption growth and promote social employment. Broadband has become a new source of economic development power. According to relevant research by the World Bank, the return on investment in broadband is quite significant, meaning that every 10% increase in broadband penetration can boost GDP growth by 1.4%; for every dollar invested in broadband, a tenfold return can be achieved.

For China, the broadband industry can not only boost GDP growth but also effectively promote the transformation of China's economic model, shifting from an industrial or agricultural powerhouse to an information powerhouse.

Currently, many countries around the world have targeted broadband network construction, considering it as an important infrastructure for the future development of information society and increasing strategic investment. "82 countries have introduced 'National Broadband Strategies,' and China has become one of the few countries without a national broadband strategy. The direct consequence is that the focus of national infrastructure investment is on 'iron roosters' (railways, highways, airports), with insufficient strategic investment in broadband," said Jiang Qiping, Secretary-General of the Informationization Research Center of the Chinese Academy of Social Sciences.

"Network-Business Separation"

Achieving "All-Optical Network" at the Right Time

"From the current background of the integration of three networks, the national broadband strategy should be formulated at the level of the State Council or the National Information Commission as soon as possible," said Zeng Jianqiu. He pointed out that the current national documents on fiber-optic broadband construction have somewhat backward planning for urban and rural bandwidth levels. "At least they should reach 10M or more. From our research and some foreign experiences, 10M bandwidth is the minimum threshold, meaning that whether browsing web pages or watching videos online, you can do it seamlessly."

The urgent need for a national broadband strategy has become a common voice among experts inside and outside the industry. During this year's two sessions, many representatives and committee members proposed motions targeting the current status of China's "low-speed broadband" development. In addition, major domestic operators have also realized the urgency of accelerating broadband development. On the eve of the "May 17" Telecommunications Day, China Telecom announced the launch of the "Broadband China Wing Up" campaign, planning to achieve fiber optic coverage in all counties and above.

"Now is the best time to build a fiber optic network. Fiber optics are too cheap; noodles are more expensive than fiber optics." Zeng Jianqiu revealed that the cost of the best fiber optics is less than 0.1 yuan per meter. The reduction in cost is closely related to market demand, and it is timely to develop an "all-optical network" in China. We already have a widely covered backbone network, but we need to plan from a national perspective to reduce redundant construction.

In his view, equally important with the construction of the "all-optical network" is the "network-business separation", which means separating networks and businesses at the enterprise level, and separating physical networks from service networks.

"Actually, consumers don't care about the physical network; what matters most is network service and price," said Zeng Jianqiu. In China, a national-level integrated network can be established, while introducing corporate competition at the service level. "The focus of corporate competition lies in service; bandwidth itself should not be a competitive advantage for enterprises. The optical network should become national infrastructure."

"Currently, many companies are frantically building optical networks, which is an unordered state. They should be incorporated into the overall national broadband strategy, breaking ineffective or inefficient competition among companies, meeting the network needs of different consumer groups, promoting the improvement of service levels, and reducing related tariffs," Zeng Jianqiu pointed out.

"To increase the Internet speed and reduce costs, competition is the only way," said Jiang Qiping. The national broadband strategy plan should handle the relationship between broadband development and reform well, "creating conditions for corporate competition, especially fair competition involving private enterprises."