Chinese Mandarin - How much is too much for Internet access?

BIZCHINA / Biz Life

How much is too much for Internet access?

By Zhang Xi (chinadaily.com.cn)
Updated: 2007-05-18 16:25

The World Bank recently released a report called "China's Information
Revolution: Managing the Economic and Social Transformation". It reveals
that Internet service fees in developed countries only account for less
than one percent of people's incomes, while Chinese users need to pay
over 10 percent of their incomes. This is much higher than the world's
average level.

This report made Chinese experts and web surfers appeal for a lower
Internet fee. In order to find out whether Chinese net services cost much
more than other countries, People's Daily interviewed 10 people in 10
countries.

China: 83.5 yuan (US$10.85) per person per month
According to China Internet Association, there are 137 million netizens
in the mainland, who pay 83.5 yuan a month on average to get online. But
the prices vary in different areas. For example, people in Ningbo in
eastern China's Zhejiang province pay 88 yuan/month, while their
counterparts in Beijing need to pay 188 yuan for the same service.

The reporter interviewed 10 Beijing residents and half of them complained
about the high costs of the Internet service. Zhao Qing, a fresh graduate
spends 120 yuan a month for Internet access, which accounts for six
percent of her monthly salary. "Besides this 120 yuan, I have to pay for
life necessities and rent. It is nearly impossible to do other things
with the little money left. I really need a cheaper Internet service,"
explained Zhao.

Data from the National Bureau of Statistics in 2006 show the per capita
disposable income of urban residents was 11,759 yuan per year, while
those of rural households was 3,587 yuan. And the monthly income of
Beijingers was about 1,667 yuan.

USA: US$40 per month
Because of severe competition, American telecom companies often provide
discounts to users. For example, Tennessee resident Mandy originally had
to pay US$40 for her family's monthly Internet service, but since she
also buys cable TV service from the same company, she only needs to pay
US$25 for Internet access every month, which to her, is a good bargain.

"I can buy a pair of Nike sneakers at US$25, or have a nice buffet with
my husband. My family earns US$10,000 monthly so we can accept the cost.
But US$ 40 per month to get onto the Internet is too expensive," said
Mandy.

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