The State Council announced several measures to encourage the growth of China’s IT-related sectors. First of all, a Broadband China strategy will be introduced to accelerate the construction of the country’s telco infrastructure. The government will promote further its fiber-to-the-home (FTTH) scheme to enable broader access to higher internet speeds. The operators are moreover tasked to further expand the coverage of 3G networks, while the regulator will strive to approve 4G licenses by 2013-end. We expect these measures to improve the demand outlook for major telco equipment suppliers and telco operators.
China Smart Cities – The State Council also announced plans to speed up its “Information to Benefit People” plan. Several public information platforms will be established in order to share educational, medical and employment resources across the country. Meanwhile, the trial of an ambitious “smart cities” project will launch in suitable cities.
The authorities revealed that various IT technologies and IT-related consumption will be put on a higher strategic level. The government will encourage more heavily relatively new forms of services such as e-commerce and the “internet of things”.