According to Xinhua News Agency, currently 156 million people in mainland of China are broadband users, meaning to say that the penetration rate of broadband internet service in China less than 14%, far lower than the average penetration rate of 30% to 40% in the developed countries. The industry average access bandwidth in China is 1.8 megabits per second (Mbps), less than 1/10 of the average bandwidth in the OECD members.
According to international experience, the broadband penetration rate after passing the 10% limit will enter into the a period of rapid growth which stabilizers after reaching 40%. Starting in 2011, China’s broadband penetration rate has been over 10%, marking the start of the period of rapid growth; it is expected to increase to about 20% in 2015 with an annual net increase of 30 million new users.
China Telecom currently possesses the world’s largest broadband Internet ChinaNet in term of both the size of the Internet and number of users. Over the past 15 years, China Telecom has led three times of broadband speed increase. The first time was in 1999 marking a speed increase from a 56K dial-up to ADSL Internet access. The second time was in February 2011 by launching the “City Optical Broadband Network Program in China” and released the FTTH 20M home broadband services. The third time was in August this year to promote 100Mbps broadband, which marks the beginning the “Ultra speed era” among the Chinese users.