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The Progress and Development Trend of Internet Technology in China
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Jiang Lintao

Chief Engineer of Telecommunications Research Institute,

Ministry of Industry and Information Technology

Ladies and Gentlemen,

The Internet has become an integral part of a nation's information infrastructure facilities. The information technology would not be able to be so popular in society today without the development of the Internet, which contributes immensely to the information technology application. The stunning growth and vigorous exploration of the Internet have greatly accelerated and promoted the technological development of the communication and information industry, and new ideas and technology innovations have made businesses more diversified and integrated, providing an information platform open to the whole society, which in turn arouses people's passion for further innovation. The new businesses derived from the usage of the Internet have benefited millions of users.

I. The Mobile Internet

1. The Development of China's Mobile Internet

China’s mobile Internet is developing rapidly at the current stage. By June this year, the number of netizens who visited the Internet via mobile phones had reached 73.05 million, accounting for 28.9 percent of all mobile phone users. Some 86 percent of mobile phone Internet visitors are under 30 years old. The number of WAP with independent domain name was about 65,000; WAP websites totaled around 260 million; and the web bytes were about 800GB.

In terms of mobile Internet industry chain development in China, communication operators create the biggest revenue. By the end of 2007, mobile WAP businesses in China had brought in 9.04 billion yuan ($1.33 billion), growing 32.3 percent year on year. Mobile value-added service companies also boomed with a market scale valued at about 20 billion yuan ($2.93 billion) in 2007. In terms of software platform, the mobile phone client software sector is flourishing, and major breakthroughs also have been made in the mobile Internet browser technology. Hardware platform is gradually taking shape in terms of baseband chip and application processor.

2. Keys to Mobile Internet Technology Development

Non-standardization and closeness are the two major elements that distinguish mobile Internet framework from the fixed-line Internet, and are caused by the differences of terminal platforms (both software and hardware platforms). Currently, competitions are mostly centered on terminal platform development, in particular, the terminal hardware platform (including processor framework and application processor), and software platform (including operating system, middleware and browser).

3. Development Trend of the Mobile Internet

A. The mobile Internet will become the focus of a new round of competition in the field of Internet and information communication technology. Compared with the fixedline Internet, it will embrace an increasing number of participants and bring about more diversified types of competition.

B. The importance of content and application is underlined. Content and application advantages as important competition element move upward of the industry chain, and integrating industry chain oriented toward content and application is becoming a notable trend.

C. Terminal is a critical point in developing the mobile Internet.

Competition in this area will become fiercer than traditional rivalry on mobile communication, and ignite competition in other spheres, including content application, operating system, processor chip and exterior design.

D. The mobile Internet will adopt an open system rather than the closed system of traditional mobile communication.

E. The mobile Internet will stimulate the reform and innovation of the Internet, mobile communication and the telecommunications industry as a whole. And new definitions will be given to the connection and interests between the upstream and downstream of the communication industry chain.

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