China to Turbocharge Internet Speed

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As China’s middle class population continues to burgeon, the government is under growing pressure to provide decent internet speed for consumers. Slow connections are retarding communication on both sides of the cultural divide, as overseas shoppers struggle with Asian websites that open too slow.

China’s Connection Rates Not Good Enough

The world’s second largest economy is falling behind on the web in terms of internet speed, despite its citizens becoming increasingly mobile. Business Insider reports that China ranks eighty-second for internet speed and is worse than its competition Malaysia, Thailand and Taiwan that are competing for the same western consumer base.

Big Numbers for Future Internet Speed

The State Council announced last week that it plans to spend $182 billion cranking up its networks by the end of 2017, in a bid to achieve ‘a more service-driven economy to boost internet speedgrowth’ with better internet speed. This year alone it will plough $69 billion into network construction to establish a base for the two years following.

Per Premier Li Keqiang, China has chosen to focus more on services – as opposed to low-tech manufactured goods. It knows that technology and internet speed are vital components of its drive to dominate space, e-commerce, green energy and bioengineering in ten years’ time.

Role of State-Owned Enterprises

China Telecom Corp, China Mobile, and China Unicom (Hong Kong) Ltd. will carry forward these decisions taken by the government of the People’s Republic of China. These companies have already made two commitments for 2015. They are boosting internet speed, and lowering mobile data prices to encourage further migration to more expensive 4G contracts.

How Fast Could Internet Speed Become

Three things stand in the way of exponentially faster internet connections. These are optical fibre bandwidth, server capacity and the laws of economics. Everything asymptotes including human endeavour. Could China be correct that the world will straight line – internet speed wise at least – by 2025?

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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