The Chinese government has pledged to provide nationwide broadband coverage by 2020, an ambitious goal which should see significant extra investment in wireless networks, especially to reach the country’s vast rural areas.
China has laid down the eight-year timeline to complete broadband coverage in both urban and rural areas, according to its ruling State Council. The cabinet says it has raised the priority of national broadband in its overall agenda and published the first firm implementation schedule.
This is the most important pronouncement on high speed access since China’s change of government and there will be heavy reliance on Wi-Fi and mobile networks to meet the goals. The strategy includes roll-out of Wi-Fi coverage in key public urban areas by 2013 and fixed broadband coverage for 50% of all households by 2015. Homes in some major cities will receive speeds up to 1Gbps by 2020, says the plan.
The government has laid down a three-stage program, with fiber optic networks and 3G mobile coverage to be accelerated in 2013 to deliver broad coverage and the objective of 4Mbps speeds for 75% of the population this year. Then, higher speed broadband will be expanded in 2014 to 2015; and fixed and mobile network and technology updates will take place from 2016 to 2020 to fill in coverage gaps and to upgrade speed and capacity in urban districts. Previous government statements said fixed line connections and Wi-Fi hotspots would be the key focus in 2013.
The telcos will be expected to increase their already significant capex budgets to support the plans, but can also hope for additional revenue streams and government support. Second operator China Unicom has already responded to the new program, saying it will start to raise broadband speeds in capital Beijing and phase out lower speed offerings.