Broadband price war
24/10/2003 15:10
Local broadband service providers have kicked off price wars on monthly
subscription fees, with the lowest monthly charge below 100 yuan (US$12), the
Shanghai Morning Post reported today.
Shanghai Cable Network (SCN), the first
in China to launch commercialized broadband and interactive value-added services
via cable, promised users access to the 1-MB broadband network for for less than
100 yuan a month (1,199 yuan per year) Following suit, Great Wall Broadband
Network Service announced their one-year service package at 1,180 yuan, and also
offered broadband service cards at 30 yuan the lowest in the industry. Payment
will be based on time of Internet access.
The price war switched focus from
initial installation fees to monthly subscription charges as there is not enough
room for further price cuts on initial installation charges, said an industry
analyst.
Low threshold to access to the broadband service has driven up the
number of users, with more than 600,000 users subscribing to SCN to
date.
However, the present 130 yuan monthly is a little expensive for users,
the analyst said.
Monthly charges below 100 yuan are sure to attract more
broadband users, he added.
Wendy Zhang/ Shanghai Daily news
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