Virtual China: Information Technology - Press Reviews, May 3, 1999

Weekly Press Review

May 3, 1999

The Broadband Internet Protocol Network Model Project, a major new initiative to improve service and stimulate competition in China's telecommunications and Internet industries, was ratified recently by the State Development Planning Commission. The project, scheduled to begin construction later this year, will link 15 major cities in eastern China, including Beijing, Shanghai and Guangzhou, in a high-speed IP-based fiber optic network. The Chinese Academy of Sciences (CAS), the Ministry of Railways, the State Bureau of Radio, Film and Television and the Shanghai Municipal People's Government will each invest a total of 300 million yuan (US$36 million) to build the 15 city backbone. The four institutions were recently given the official go ahead to form China's third nationwide telecommunications company, after China Telecom and China Unicom. The new network is designed to offer IP telephone services to compete directly with China Telecom's standard phone service as well as Internet access far cheaper than what is available today. "There is no doubt that IP services will become No 1 in future telecommunications," Hou Ziqiang, a research fellow at CAS stated in the China Daily. "Accordingly, the design of future telecommunications networks should target IP services."

China Telecom has already started offering its own IP-based telephone service. China Telecom, China Unicom and China Jitong Corp began offering the service last Wednesday on a six-month trial basis in 25 cities. During the test period prices will be fixed at 0.3 yuan (US$0.036) for local calls and 4.8 yuan (US$0.58) for international calls, representing a more than two thirds reduction over standard line rates. Customers who wish to use the service purchase a special telephone card and access number and use normal telephones. PC ownership is not required to use the service.

In other news last week, the Beijing Haidian District People's Court issued a decision which appears to set a precedent in China extending the protection of its eight year old copyright law to works distributed on the Internet. The court found that the Chengdu-based Computer Business Information Weekly infringed on the copyright of Chen Weihua when it reprinted an article he had written and posted on the Internet without his permission.

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