Price War Among ISPs Breaks out in China

At the time when the ICPs (Internet Content Providers) are wondering how to find a way for survival in domestic Internet market, the skirmishes among the ISPs (Internet Service Providers) have witnessed resurgence in China.

In November, 263.com, one of the largest ISPs in china launched its Internet connection service phone call 95963 for roaming service nationwide with its online access rate lowered to 2.4 yuan per hour and telephone fee cut by a half.

Eastnet reduced its online connection rate to 1.5 yuan/hour, and Read Online adjusted its online charge to one yuan/hour, while China Unicom slashed it to 0.83 yuan/hour, inflaming the price war among the ISPs in China.

263.com Ignited the Price War

263.com announced to be a network group on November 21, 2000. At the same time, it launched its 95963 for countrywide roaming service, and dropped its online access price to 2.4 yuan per hour from nine yuan, i.e. 0.04 yuan per minute, thus rousing great concern among the Internet circles.

Read Online, one of the earliest ISPs in China, readjusted its Internet access rate from four yuan per hour to one yuan as starting from December 1, 2000 onwards. More than 5,000 new users logged on Read as its members when the news was released a week later.

China Unicom Engaged Quickly in the War

China Unicom has lately launched a favorable price of "50 yuan for 60 hours" with its rate reduced to 0.83 yuan/hour.

21Vianet, another veteran ISP in China, when facing the price-cutting war by other ISPs, also made a decision to further improve the service quality and guarantee the benefits of Internet users.

According to a survey conducted not long ago on the global Internet-access rates, the rate in Rio de Janeiro is 16 US cents per hour, Australia 32 cents, South Africa 25 cents, Germany 1.4 US dollars, Luxembourg 3 US dollars, the most expensive country in Europe. While in Asia, Hong Kong charges 18 cents, the cheapest in Asia, Singapore 26 cents and Japan 71 cents whereas Beijing is 0.5 dollar.



By PD Online staff member Li Yan


People's Daily Online --- http://english.peopledaily.com.cn/