China Looking to Increase Internet Consumption throughout Country

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E-commerce is huge in China, but China’s Premier Li Keqiang wants to make e-commerce even bigger in China with the proposal of Internet that is faster and cheaper. This is where the “Internet Plus” action is going to help the citizens of China to be able to shop online, use social media, and so forth without the worries of their Internet.

The speed of Internet in China is well below the global average, as can be seen below:

Chart courtesy of http://www.akamai.com/dl/content/q4-2014-soti-report.pdf

Chart courtesy of http://www.akamai.com/dl/content/q4-2014-soti-report.pdf

Though China has made efforts to make their Internet faster, there are still several rural areas that are dealing with speeds that are below 2Mbps. This type of speed can make it impossible to use the e-commerce sites within China.

In terms of price, Premier Lie Keqiang also stated his disappointment. The price for Internet service in some areas of China can be as much as 100 yuan to 600 yuan a month for a 3G service. With this Internet Plus plan, Li wants to utilize whatever methods necessary in order to get the price of Internet down for consumers. He stated, “I am willing to advertise for new businesses including online shopping, express delivery and e-commerce…They have given a strong boost to employment and consumption for our country.”

It seems that Li sees the advantages of boosting the world of online shopping, as he too uses online shopping. The idea is to allow all of the Chinese people access to an internet that is fast and reliable. In hopes this would increase the popularity of e-commerce and online shopping even more.

After Li expressed his ideas for a dominating Internet throughout China, the Ministry of Industry and Information Technology stated, “The construction of the 4G network and speed enhancement will be the main focus of this y ear and we are committed to provide faster network at lower expense.”

However, many professionals warn this is going to be harder than what people realize. Xiang Ligang, an expert in telecommunication and found of CCTime, stated:

“Building a 4G network that covers the entire country requires mammoth investment…”

Thus, the idea of doing this is one that is rather hard to fill. However, with the potential of opening up this field to private investment, such as from e-commerce, online companies and the like, it could make it easier financially for the country

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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