BIZCHINA / IT Industry
10th Five-Year Plan
Updated: 2006-04-18 11:25
The Tenth Five-Year Plan of the Telecom Industry
1. Development objectives set by the Tenthth Five-Year Plan
During the Tenth Five-Year Plan (2001-2005), the telecom industry will
continue at a development pace faster than the growth of the national
economy. Total business income will reach 920 billion yuan (US$110.84
billion) by 2005, tripling the annual income of 2000.
The total length of fiber optic cable will reach 2.5 million kilometers,
including more than 500,000 kilometers of long-distance cable that will
almost cover the entire country. The overall capacity of the fixed
communications facilities will exceed 300 million lines and the overall
capacity of facilities for mobile communications will exceed 360 million
subscribers to rank first in the world.
The quantity and quality of fiber optic cable for international
telecommunications will be significantly improved and China's market
share in main international markets will also expand. By 2005, China
plans to develop into a major telecommunications hub in Asia and a center
for international telecommunications exchanges and information services.
The amount of Internet-linked computers will reach 40 million and the
number of ISP and ICP will reach 5,000. Telephone subscribers will exceed
500 million households and the national penetration percentage of
telephones will top 40 percent. By 2005, 95 percent of administrative
villages will be plugged into telephone networks.
Fixed-line telephone subscribers will reach 240 to 280 million, making up
20 percent of the world's total users. Mobile communications subscribers
will also be world leaders, reaching 260 to 290 million -- one-quarter of
global users. Subscribers to data, multimedia and Internet services will
climb to 200 million with a penetration rate of 15 percent. The service
quality of the telecom industry will meet corresponding national
standards.
During the Tenth Five-Year Plan total fixed assets investment in the
telecom industry will reach 1,250 billion yuan (US$150.6 billion). The
input-output ratio will jump from 1:1.5 to 1:3.3 and the output value of
per-100-yuan fixed assets will rise from 50-55 yuan to 60-70 yuan.
Telecom laws and related regulations will be issued and a fair, impartial
and regulated market will be established.
The online government project will also produce positive effects. All
local governments above the county level will have Websites and all
government documents above the prefecture and city level will be created,
dispatched and made available electronically. The public will therefore
be able to search governmental information via the Internet.
Technologies and the network basis for e-commerce will be developed to
satisfy the development of e-commerce in China. B-B e-commerce and the
B-C e-payment system will also be promoted.
2. Developmental key points of the telecom industry in the Tenth
Five-Year Plan
During the Tenth Five-Year Plan the fiber-optic transmitting network will
continue to be the key component of development. Microwave and satellite
transmissions will be developed and improved since supplementing means
safeguarding normal operations and meeting emergency requirements for
transmission.
The long-distance transmission network of the fiber optic cable will be
continually improved and a new 200,000-kilometer domestic long-distance
fiber optic cable will also be established. More efforts will be put into
the construction of international seabed fiber-optic cables. Key to
cross-province, long-distance fiber-optic cables will be the construction
of optic lay and a new type of fiber optic cable in areas with big
portfolios to fulfill the needs for transmitting bandwidth from different
social groups.
The overall arrangement of the transmission relay network will be further
adjusted to optimize network organization. The nation's main transmission
network of fiber-optic cable resources will be brought into full play to
avoid repeat construction. The industry will speed up the construction of
the broadband network and promote an integrated entry of different
operations, such as video, data and voice.
The development of fixed telephone networks will focus on rural areas and
midwest regions in China. More value-added services will also be
developed. Mobile telecommunications will grow rapidly and the
sustainable capability of network operations will be strengthened. The
construction of a third-generation mobile communications system will
begin around 2003 to take advantage of the favorable opportunities for
developing IP-based communications networks.
The exploitation of information resources is the most important task,
particularly information on important domains such as governments,
industries and enterprises, and bringing them to the Internet. The
country will encourage the development of information data banks for
education, medical and film industries.
3. Policies and measures for developing the telecom industry in the Tenth
Five-Year Plan period
(1) To strengthen the construction of the legal system and promote the
development of the telecom industry
The government will strengthen macro guidance, supervision and
administration of the industry to create an environment of policies,
regulations and market competition favorable for the development of the
telecom industry.
(2) To enhance the capability of innovation and accelerate the
industrialization of research
Telecom operators will be encouraged to use homemade telecommunications
facilities and software with the same quality and functions. Measures
will be worked out to help telecom operators conduct their own research
and exploit organizations or cooperate with existing ones and increase
research expenditure to improve the overall technological innovation
capability of the telecom industry.
(3) To establish scientific and reasonable polices for the charges
Scientific decision-making techniques and rigorous legal procedures will
be deployed to form reasonable expectations for telecom charges and to
make it a policy-regulated tool to promote the industry's development.
The level of charges and the structural adjustments will be based on
costs and directed by the market.
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