Internet connectivity must be more affordable, Li says

Calling the information industry crucial to China's economic transition, premier also tells major telecom service providers to enhance speed

Premier Li Keqiang urged the country's major telecom service providers on July 31 to implement faster internet connectivity and make it more affordable, while improving services for small and medium-sized businesses to help boost industrial upgrading and nurture new economic drivers.

"The information communication industry plays a crucial and fundamental role in China's economic transition and industrial upgrading," Li said on July 26 while visiting China's three telecom service providers in Beijing. The providers are China Mobile Communications Corp, China United Network Communications Group Co and China Telecommunications Corp.

Li focused on entrepreneurship, precise measures for cutting connectivity costs as well as technology innovation while visiting the headquarters of the three providers. At China Telecom, Li learned that the company has already reduced its connectivity fees by 40 percent, and its network flow has increased by 130 percent.

The three companies have taken a variety of measures to enhance speed and cut costs. This has improved corporate competence and reduced social costs in general, while telecom service providers also managed to gain larger consumer groups with increased internet flow, Li said.

The premier's visit followed an announcement by the providers on July 27 that they will scrap domestic long-distance and roaming charges beginning Sept 1, a month ahead of the deadline announced by the Ministry of Industry and Information Technology. This was promised by the premier in March in his Government Work Report and marks the end of over 20 years of roaming fees in China. The move will benefit more than 80 million users.

Li, speaking at a symposium after the visit, said there is huge potential in the information communication industry, especially since China's information consumption, mobile payment and e-commerce businesses have experienced robust growth in recent years.

He encouraged the telecom companies to take bigger steps to cut costs for dedicated internet access to small and medium-sized enterprises, in particular.

Huge potential lies in the emerging information technology industries, such as cloud computing, the internet of things and intelligent terminals, which drive the upgrades of traditional industries, Li said.

He encouraged the three providers, all State-owned enterprises, to nurture innovation and better work with small businesses with complementary advantages.

Zhang Aihua, a professor at the School of Economics and Management at Beijing University of Posts and Telecommunications, says cutting dedicated internet access fees for SMEs is important to boost China's economic transition.

"Today's internet exists in almost all kinds of businesses, while internet technology is a key part of business for many startups," Zhang says. "This is like making highways more affordable to drivers."

zhangyue@chinadaily.com.cn