BBG Communications : The rise of the net in China

Internet came to the mainland of the People's RepublicChinese Academy of Science Network and the
of China on September 20, 1987 when ICA Beijing andNational Computation Facilities of China. The laying of
Karlsruhe University in Germany, under the guidance ofinfrastructure started in 1989, and the system was
Prof. Werner Zorn and Prof. Wang Yunfeng, made thefinally connected to the global Internet in 1994. Hosted
initial connection. From that time on, the Web in Chinain the premises of the Chinese Academy of Science,
has developed into the biggest hub of net usersCSTNet is one of the four first important systems
internationally. In the last ten years, the Web proved towhich have been permitted access to the global
be a force of culture in the Chinese heartland, in aInternet.
similar way as in western countries.ChinaNet is the chief nation-wide proprietary network
According to BBG Communications, there wereoperated by China Telecom. China Telecom boasts
roughly 250 million high-speed internet users in China asthat ChinaNet is the widest Internet network the world
of mid-2008. In 2007, China was on top of the pack ofover. It had 25 million customers for broadband
countries with the most broadband users, followed byconnection as of 2006. Like CSTNet, ChinaNet belongs
the USA, Japan, and Germany. A majority of Chineseto the group of four first important systems with global
high-speed users subscribe to DSL, chiefly from Chinaconnectivity permission. It was established to improve
Telecom and China Netcom. The rates in the differentthe Internet infrastructure and to split up the telecom
provinces diverge, but the average range is frommonopoly into the South China Telecom and the North
US$10 to $20/month for a 1M DSL connection allowingChina Netcom in 2000.
downloading without limits.Another of the original four with global access,
Even though China has the largest number of internetCERNet is also the original education and research
users, its dissemination of 19.1% is way belowcomputer network of the Chinese nation. CERN is
industrialized countries like the US and Japan and evennon-proprietary system that services schools and
a little below the average international Internetacademic organizations.
dissemination rate of 21.1%. Online Chinese InternetThe last of the original four with global access,
users record on average of some 2 billion hours eachCHINAGBN’s establishment was suggested in
week, as compared to the US figure of only 129 million1993 to the State Council by Premier Zhu Rongji
hours a week.among the so-called Golden Projects. After the idea
Broadband is the standard connection in China, havingwas accepted in 1996, important improvements were
214 million people using broadband instead of othercarried out in 1998. Nowadays, the business is run by
kinds of service. The cost of having broadbandJitong Communications.
connection is generally affordable to mainland ChineseThe network UNINet is founded on China Unicom's
middle class people. However, wireless Internetinternational information system. Began in 1999,
connection, particularly through mobile phones has, isit’s formal launching was done in July 2000. It
catching up fast. There are 73.05 million Chineseis using the same infrastructure as China Unicom's
representing 28.9% of all Internet users who use theirtelephone, GSM and CDMA services.
mobile phones. On the other hand, dial-up connectionsAlso established with the division of ChinaTelecom
are on declining fast, having reached its peak in 2004.Company into South and North divisions in August 1999
The physical infrastructure for mainland Chineseeffected by the State Council, China Netcom began
Internet were laid down by the first four big nationaloperation of CNCnet in December 28, 2000. Apart
networks, namely CSTNet, ChinaNet, CERNet andfrom providing Internet service and Voice service,
CHINAGBN. Since then, Internet services have alsoexcluding GSM900/1800/1900 and CDMA which are
been provided by big telecom providers who came itmobile services, China Netcom is also in the business
later. Big networks acquire and exchange amongof producing broadband television programs and other
themselves the telecom companies that usuallycontent. In the coming days, China Netcom intends to
provide Internet services to China’s provinces.advance in the mobile industry as well.
Local ISPs that do not operate nationwide like theThe Golden Gate project was yet another one of the
Information Highway are out of the competition withGolden projects suggested to the State Council by
telecom companies who provide them with bandwidth,Premier Zhu Rongji in 1993. The China Ministry of
and their operations do not usually last long.Foreign Trade and Economic Cooperation (MOFTEC)
The interconnection among these different networks isput up the China International Electronic Commerce
an important issue for the Chinese clientele, becauseCenter (CIECC) in 1996. It is a protected system
going through the global Internet is considerablyspecially dedicated to electronic commerce, and is
sluggish. Still, the big players do not want to cooperateconnected to global e-commerce networks making
with competitors, notwithstandinginternational transactions possible.
government’s push.If you are interested in learning more about BBG
The first publicly accessible not-for-profit academiccommunications in San Diego, please visit the
network in China is CSTNet. It made use of thepreceding..