China will overtake the United States to become the world's
biggest broadband market within a year because of its enormous
growth potential, rising popularity of personal computers and new
online services, a United Kingdom-based consulting firm said on
Tuesday.
Lending support to the findings, China Telecom and China Netcom,
the country's top fixed-line phone carriers, said they will focus
on the broadband business in the future as it earns them a higher
profit margin than voice services.
China's broadband users will reach 79 million by the end of 2007
compared with 46 million on June 30 this year, according to Ovum
Inc.
There will be about 50 million in the United States by the end
of this year, industry insiders said.
"We believe China's broadband development will continue to
benefit from a booming economy, growing incomes, expanding PC
penetration and new applications," said Kevin Lee, an Ovum senior
analyst. "The Olympics will provide another boost."
With only 3.4 percent of the population now connected to the
Internet via broadband, the service's penetration in China is well
behind many countries in the Asia-Pacific region, which translates
into great growth potential, Ovum said.
(China Daily September 6, 2006)
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