Universal Service Policy in China: Building Digital Bridge for Rural Community

Abstract

After seizure of power in 1949, the Communist Party of China (CPC) painted a blueprint with its people, pledging a life of upstairs and downstairs; electric lights and telephones in the near future. More than half a century later, the Chinese telecommunications industry has now witnessed a rapid expansion and growth, particularly since deregulation in 1994. This has resulted in even broadened digital divides between varied groups, particularly between residents in urban and rural areas. In urban areas, the blueprint has been actualized to certain degree. However, in many rural areas, especially those in the old, ethnic, remote, and deprived areas, people are still struggling for sustenance, and telephone is still a luxury to dream of. This paper examines dilemmas and practical issues faced by the Chinese government in its effort to implementing universal service obligations (USOs) and takes a systemic look at a series of policy issues regarding the objectives, definition of services, choice of technology, support mechanisms, government's role, and regulatory governance.