Viewpoint

1. Chinese network markets continued to develop at high speeds during 2000, with the total number of network consumers reaching 18.46million (by 12/31/2000), the total volume of the network access market reaching 489.3billion RMB, and the total number of ISP consumer providers reaching 620. In addition to the expanding of the Chinese network access market, other conditions of the market have also improved, and the service providers have also become more mature.

2. ISP has developed from the stage of educating individuals for personal network use to the stage of implementing service for enterprises.

3. Services provided by service providers have developed from single service to a set of services. The service offered meet different demands and have different levels.

4. As the services have evolved in continuous series, ISP have played the roles of system integrator, software developer and e-business platform providers.

5. The network access market will continue to develop during 2001-2003, by 2003  its total volume should reach 800 billion RMB.

I. Overview of Network developmental in 2000

1. Overview of the development of the Internet

a. Distribution for consumers of global networks

b. Growth of Asian network consumers

c. Content of international top domain names

d. Distribution of various global domain names

e. Languages distribution among global Internet consumers

2. Basic status of ISP in UK and USA

a. Sharing of ISP markets in the UK and USA

b. Comparing of access prices to main ISP prices in the UK and USA

3. General Development of internal networks

a. Basic implementation of Internal network

b. Distribution of bandwidth on backbone sets

c. Service provided by backbone sets

Chapter Highlights

Until now, North American has held an absolute advantage in the field of network distribution. However, China has become one of the most promising countries in the Asian-pacific area. The construction, establishment, and implementation of basic networks have made great progress in China. This chapter researches and analyzes the overall status of network development both in China and abroad 2000. In particular, there is a description of basic ISP conditions and developmental directions in developed countries, such as the UK and USA.  Through this research and analysis, this chapter provides a background for a more thorough analysis of the ISP/ASP market in China

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II.  Developmental Conditions of networks in year 2000

1. Policies and statutes concerning network development

a. Catalog of policies and statutes concerning networks (released in China in 2000)

b. Outlines of policies and statutes

2. Investment conditions 

III. Status of network technical development

1. Types of Broad Band access technology

a. XDSL System based on twisted-pairs

b. HFC network

c. Fiber in The loop (FITL)

d. Access of fixed wireless broad bands

   2. Applications of Broad Band technology

   3. Technology of dual-direction calling

   4. Technology of WAP

Chapter highlights

The development of new technology is constantly pushing the development of Internet access services, while at the same time the expansion of the access service market is accelerating the development of technology. This chapter presents research and analysis of network technology, and also introduces the current status of main network technology: Broad Band access, dual-direction calling, and WAP. The types and applications of Broad Band access technology are analyzed in particular detail to give readers a clear understanding of this technology that is so important to ISP/ASP development.

IV. Network Investment Conditions in year 2000

1. Cases-study of risk investments in networks

a. Changing direction of stock value of China.com in 2000

b. Changing direction of stock value of Sina.com in 2000

c. Changing direction of stock value of Netease.com in 2000

d. Changing direction of stock value of Sohu.com in 2000

Chapter Highlights

Through cases-studies of network risk-investment in China, as well as the changing stock value of Chinese network companies as they enter the NASDAQ market, this chapter presents general investment conditions for the Chinese network industry. The research gives readers a clearer understanding of international investments in Chinese networks.

V. Total volume and structure of the network access market in 2000

1. Collective scope and distribution

2. Total volume and structure of market

a.   Total volume of market

b.   Total volume and structure of service providers

3. Composition and distribution of network consumers

Chapter Highlights

As the total volume of the network access market expands, new directions in structure emerge. This chapter has researched and analyzed in detail the total volume and structure of the Chinese network access market in 2000, and managed to produced an important set of data regarding the total amount of market, structure and composition and distribution of network consumers.

VI. Analysis of demands on the network access market in 2000

1. Makeup of individual network consumers

a. Age of network consumers

b. Degree of network consumers

c. Occupation of network consumers

d. Incomes of network consumers

2. Changing characteristics of individual network consumers

a. Ages distribution has almost become balanced

b. On-line time has distinctly increased

c. There is no direct ratio between on-line charges and real income

d. The number of wireless on-line consumers has increased

3. Specific demands of enterprise network consumers

a. Construction style of enterprise websites

b. Analysis of why enterprises have not constructed websites

c. Factors for enterprises choosing service providers

Chapter Highlights

Changes among individual network consumers have enlarged their involvement in the network market. Although enterprise consumer’s network is still at a very low level, there is a significant potential demand that will need to be thoroughly exploited by service providers. The major factors that influence on enterprise’s choice of service provider are prices, technical strengths and service level.

VII.        Characteristics of the network access market in 2000

1. Comparing prices of access service providers

2. Comparing services of access service providers

3. Characteristics of the network access market

a. The structure of market

b. The differentiation of market

c. Diversification of market levels

Chapter Highlights

As competition among service providers has become more severe, services have developed from a single service to a set of services. By comparing the prices and calculation methods of access providers, researching and analyzing the services of service providers, this chapter has pointed out the main characteristics of the services of these providers.  Then by analyzing these characteristics, this chapter is able to present the details and developmental direction of the current network access market.

VIII.    Important Factors influencing the development of the network access market 2001-2003

1. China’s entry into the WTO

2. National support policy

3. Utilizing the developments of IT enterprises

4. Decreasing of expenses and fees of telecom

5. Development of new technology

6. Changing of network investment conditions

Chapter Highlights

During 2001-2003, there will be several active factors increasing the expansion of the network access market. This chapter has mostly analyzed the key factors for the development of network access network in China: China entry into the WTO should significantly increase the development and competition of the network access market; the National policy will support the network access service market; the development of e-business will increase the demands of access service; the decrease of telecom’ expenses and fees will benefit ISP; new technology will benefit the access market; and improvements in network investment conditions will benefit the access service market.  

IX.   Forecasting the developmental direction of the network access market 2001-2003

1. Qualitative forecast

2. Quantitative forecast

a.   Forecast of the number of network users

b.  Forecast of market scale

c.   Forecast of the number of “CN” domain names

Chapter Highlights

By combining qualitative and quantitative methods, this chapter forecasts the developmental direction of the network access market during 2001-2003. For qualitative analysis, this chapter has pointed out the developmental direction of the network access market during 2001-2003, for example: China Telecom will still monopolize the individual access market, ISP’s will compete with each other for enterprise network service market share. For qualitative analysis, it has forecasted many important statistics, such as network consumers, the market scale, “CN” domain names, etc.

Data

Figure 1       Internet users age distribution

Data Source：CCID

Internet Users in China: 22—30 years olds young adults occupying 61% of the total market, indicating that young people are still the dominant force in China Internet.  31—40 years old adults occupy 15% and 16—21years old youths occupy 16% of the total market share.

Figure 2       Internet Access market sharing

Data Source：CCID

Dialing-up and private access services occupy 80% of the entire access market. Incomes from hosting and sales have been increasing as the number of online enterprises expands.

Figure 3       Requirement for Internet access service by enterprise

Data Source：CCID

The most important Internet access service was virtual hosting, indicating that the requirement for e-commerce is increasing.  In addition, private access service is also growing.