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Friday, December 02, 2005

Rural phone penetration in China - is it a threat?

The Chinese government should celebrate. Telephone penetration rate in the countryside had reached 96 percent, not an easy feast in such a large country.

However, it is not necessarily seen as a boon to the country. " improved rural communications for better flows of information is a double-edged sword for the Chinese regime. In theory it allows the central leadership to know what's happening at the grassroots level. Conversely, it will enable people in the countryside with unresolved problems to connect and organize in ways that challenge local, provincial and ultimately the national government."

So instead of being happy that villagers can access better information, it is already seen as a threat! It takes time to realise that better information and knowledge almost exclusively leads to higher prosperity and growth.

(By Asia Business Consulting)