We have profiled many China-based companies, reported interesting news from China web in this blog in order to help readers understand local Internet culture, but there is one very fundamental and also key factor missed: the Internet Connection in China. Internet connection probably is not a big deal in most Internet markets, but in China, it is a bit complicated and you’d better take it seriously if you want your service to have perfect nationwide access. We visited ChinaCache Beijing office a year ago and recently were connected to David, Business Development Manager of ChinaCache North America. ChinaCache is the leading provider of professional CDN (Content Delivery Network) service in China, and it takes 75% of China’s CDN market share. Here are the stories:

The Chinese telecommunications industry

Before 1994, the Chinese telecom services were provided by China Telecom, the operational arm of the Ministry of Posts and Telecommunications (MTP). Due to a ministerial reorganization, In 1998 the Ministry of Posts and Telecommunications (MTP) was replaced by the new Ministry of Information Industry (MII). The MII soon took two large scale reshuffling actions against the inefficient state-monopoly. The first restructuring is executed In 1999, China Telecom’s business were splitted into thee parts (fixed-line, mobile and satellite). China Mobile and China Satcom were formed to run the mobile and satellite sectors, respectively. However China Telecom was still the monopoly of fixed-line services. In 2002, the second restructuring took place and splitted China Telecom geographically into North and South: China Netcom (CNC) was formed and operated in North China including Beijing, keeping around 30% of the network resources; the new China Telecom keeps around 70% of the resources and operates in South China, including Shanghai. [ref: wikipedia]

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Gang Lu

Dr. Gang Lu - Founder of TechNode. He's a Blogger, a Geek, a PhD and a Speaker, with passion in Tech, Internet and R'N'R.