Reflections on Broadband China Strategy: Lack of Substantial Promotion of State Funds

Broadband China, a popular keyword on the Internet for many years, but the actual network quality is not so hot, is it the inaction of telecom operators? Nor can it be all blamed. The country has launched a broadband strategy. It is obviously not enough to stay on paper.

With the confusion of broadband development and the complaints of netizens about network speed, Tencent Technology visited Wuhan, China's first birthplace of optical fiber, and tried to find answers here.

Wuhan is an important research and development base for the optical communications industry and one of the most important communications hubs in the country. It is also the third largest business command and dispatch center of China Telecom, with the fourth largest network capacity in the country, directly interconnected with the three super cores of Beijing, Shanghai and Guangzhou, and provides access to Hunan, Jiangxi, Guangxi, Shaanxi, Hainan, Yunnan and other provinces Become an outlet for these provinces to access the Internet. Wuhan as a core node provides high-quality Internet services to Hubei broadband users.

When it comes to fiber optics, we must mention the flame. Academician Zhao Zisen, the father of China's fiber optics, said in an exclusive interview with Tencent Technology that in 2013, China's broadband penetration rate was less than 7%. The development of China's broadband industry is not a technical issue, but an economic issue, limited network construction funds, and users The monthly fee is too high, and users cannot afford broadband. Broadband China's strategic countries still need strong support.

Reflections on Broadband China Strategy: Lack of Substantial Promotion of State Funds

Although broadband speeds have been significantly improved everywhere, the problem of "fake broadband" that has been plagued by users still exists, and the speed-up target set by the "Broadband China" strategy is being flooded.

In this regard, the second station visited by Tencent Technology is China's largest broadband service provider-China Telecom. From the branch company Hubei Telecom Tencent Technology visited this time, we learned that Hubei Telecom took the lead in starting a pilot project of fiber-to-the-home construction in a newly built community in Wuhan in 2005, thus unveiling the commercial prelude of China's "fiber-to-the-home". In 2006, the National Development and Reform Commission's High-Tech Industry Department defined Wuhan's "promotion of triple play and fiber-to-the-home" project as the "Wuhan model."

At the end of 2011 and August 2013, Wuhan launched the second and third city-wide network speedups in succession, implemented large-scale FTTH home renovations, and launched free activities or discounts through the launch of "100M broadband into homes" and other activities Substantially increase user broadband. Up to now, Hubei Telecom's fiber-to-the-home project in Wuhan has invested more than 3 billion yuan. FTTH fiber-to-the-home projects cover more than one million households and 3000 communities.

Although there are achievements, the problems facing them also exist. According to the relevant front-line technicians, broadband speed-up is actually a complicated process. In addition to increasing the user's broadband access speed, it also needs to increase the broadband bandwidth of the entire cell and the speed of the backbone network. And to make these three improve simultaneously, it is a huge project for China Telecom, which requires a lot of manpower and financial resources.

For some small and medium-sized broadband and second-tier operators different from China Telecom, they do not have the strength to comprehensively improve broadband speeds, nor do they have the ability to speed up backbone networks. Therefore, the so-called high-speed broadband provided to users is actually a "shared broadband" that makes users hateful.

Obviously, the implementation of the Broadband China strategy is still inseparable from the country's substantial support, especially funding.

In foreign countries, the national injection of funds for broadband has already been implemented. For example, the United States has established a broadband support fund, the Japanese government provides interest-free loans to broadband operators, the Swedish government bears 1/2 of the rural broadband network construction cost, and the local government bears 11%. The government's support for broadband strategy is indispensable for both policy and funding.

In August this year, the long-established national broadband strategy was officially released. According to the strategic plan, by 2015, urban fiber-to-the-floor households will be basically implemented, rural broadband will enter rural areas, villages will have a fixed broadband household penetration rate of 50%, and administrative village broadband will reach 95%; urban and rural households will have basic broadband access capabilities Reached 20Mbps and 4Mbps, some developed cities reached 100Mbps. The goal is to achieve 400 million fixed broadband users by 2020, with urban and rural broadband access capabilities reaching 50 Mbps and 12 Mbps, respectively.

First of all, this is a good thing. At least the country has upgraded broadband China to the will of the country, and it will surely receive further policy support during the implementation process.

Prior to this, broadband construction was led by operators who were responsible for investment implementation, limited to financial pressure. Operators will give priority to construction in some southeastern regions with good return on investment, while broadband construction in the central and western regions is relatively lagging, resulting in obvious regional differentiation. This rise to the national will is expected to comprehensively plan the development of the nationwide broadband construction and give full support in terms of funds, fiscal and taxation policies.

However, two months have passed now, and the specific policy support that operators expect is not synchronized.

According to industry estimates, to achieve the goals set out in the Broadband China Strategy, the three major domestic telecommunications operators need to invest at least 250 billion to 280 billion yuan each year in infrastructure construction. However, in the Broadband China Strategy, the strategy and implementation goals were planned in detail, and the policy support and the universal service fund were only taken several times.

Judging from the existing policy support, telecom operators can only use the existing special funds to provide limited broadband funding support, which is obviously a shortfall.

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