Some backgrounds of China universal service---Village Access Project (Chunxia Bai). Definition of UF in China. China Administrative System (Mainland). Federal. Central Government. Provincal government (31 ). State. Universal Service Project VA Target: Town and village
China Administrative System (Mainland)
Provincal government (31)
Universal Service Project VA Target:
Town and village
The basic goal
Administrative Villages /natural villages must have access to telephones
The minimum requirement
at least two telephones be available in an village, one in the public telephone booth and the other in the office of villagers' committee
Administrative Village(700 thousands)
An administrative village might include several natural villages
VAP started in 2005, why? Project
Since 2000, China telecommunication industry facilitated liberalization and privatization, in the meantime. gap between urban and rural in China enlarged and aroused concerns.
All Counties established local Exchanges
Network extend to towns and villages
more than 95% of administrative villages have telephone
Access at the end of 2005, 100% by 2007. VAP
All natural villages access to phone. VAP
All towns connect to Internet
All families access to phones
Now in Phase 3 and Phase 4
Low Income Group
Pubilc Service Organizations (Schools &Hospitals)
High cost areas
2008 VAP statistics:
3. Rural Information Service
VA project is a kind of Socialistic Type of Campaign
----- Promoting rural economic development, enforcing rural education and enriching rural lives byestablishing information infrastructures and service platform in rural areas.
-----Several governmental departments including MIIT, NDRC, SASAC and MA involved in VAP in policy making and planning
-----A Transition from Political Campaign to Market Oriented Mechanism
2004 experiment in 13 provinces
since 2005 rollout in whole country
General goals to 2020..
MII, Telecomm. regulator; NDRC: competition authority; SASAC: public owner, MA: Ministry of agriculture
-----Provincial governments try to play more part.
Each carrier’ task is consistent but might be adjusted
at the beginning of every year after a intensive discussion and bargain
-Technology: low cost, wide coverage; fool-proof and robust; Domestic equipments preference.
- Network: Achieve VA goals by extending its existing networks
Fiber/copper loop,; GSM& CDMA,
FWA SCDMA (China innovated system oriented to rural),
VSAT, Globalstar and AceS
-Cheap and practical user terminal equipments, e.g, Rural information sets, Economic handsets, Easy Computers
-Service, 119, e-governments, agricultural produce related information service.
local Exchange Relay/Trunk
SCDMA-400M: for villages in mountains and islands .
SCDMA-1800M: for towns in plains
McWiLL: Broadband Wireless access to Internet.
There are about 100 state-owned business now. In future the number will drop to 50 or so by privatization and consolidation. They are under the supervision of three different departments of Chinese central government. Their joint aggressive pushes made non-subsidy universal services in China possible.
state-owned Assets Supervision and administration Commission
National Development and Reform Commission,
realizes public ownership
enforce antitrust related issues
Industry regulator the business plays in,
(for telecommunications carriers, is MIIT)
of different departments
might give carriers excuses
for elusive behaviors
Industry development and market regulation
How much state ownership should and could in common carriers’ operation?
Unclear Central –local government jurisdictions
Lack of systematic institution arrangements
Since 1990s Economy restructure by Privatization, Globalization, LiberalizationChina Economy System Evolution
Separate the ownership
and management of public sector
Privatize state-owned and
Stimulus policy for private sector
growth (2nD FDI country)
set public assets supervision system
and market regulation system
Module und Variations_E Globalization, Liberalization
step by step
find solution by doing
Can go there? How to get there? No one has clear ideas. No emulated path.
“Crossing the river by feeling for the stones” (Deng xiaoping)
Present: ambiguous governments’ roles; legislation behind practice; inconsistent rules.
Someday? in future: Systematic institutional arrangements
Adjusting and reforming gradually
Central and local government jurisdiction in VAP Globalization, Liberalization
UFO: VAP +Internet access
+Rural information service
UFO: VAP—Basic telephone
Local governments try to play a part in local ICT service development.
But they have not enough influence in carriers and many provinces have to rely on central-level investment on UFO.