The Potential of China for the Internet

China has taken second place in the race for the world's largest at-home Internet population, according to new Nielsen//NetRatings data.

Launching a survey to determine the universe of Internet users in China, the new data confirms the country as the largest Internet population in the Asia Pacific region, and the second largest worldwide after the US. 'Our enumeration survey found 56.6 million people living in households with Internet connections, amounting to just over five per cent of homes in China. Consider the Internet market potential when Internet household penetration rates in China start to more closely resemble those in other markets such as the US, South Korea, Singapore and Hong Kong, where penetration currently sits above 50%,' said Hugh Bloch, managing director, Nielsen//NetRatings North Asia.

'A 25% penetration rate in China would amount to a potential 257 million people in China with access to the Internet at home. The potential is staggering, and it's a not-too-distant reality. According to the Chinese Ministry of Information, new Internet subscription rates in China are growing 5 - 6 per cent monthly. At these kinds of growth rates, 25% Internet penetration in China is only three or four years off,' added Bloch.

Bloch noted that the potential Internet universe could be even higher if more Chinese people gain access to fixed telephone lines. 'Currently, only 35.6% of homes in China have a fixed telephone line, and even out of that comparatively small percentage there are nearly 57 million people with Internet access today, again underscoring the vast opportunities in this market.'

The Nielsen//NetRatings survey also found Chinese men aged 16 to 34 dominate Internet access and usage at home, and more than 80% of those users aged 16 and over used it twice a week or more. Among those with home Internet connections who also surf elsewhere, home was found to be the preferred venue for Internet surfing, accounting for 53%, followed by Internet cafes (27%) and work (24%).

The Nielsen//NetRatings enumeration survey was conducted in the first quarter of 2002. It is based on telephone interviews with 1,000 randomly selected households with a fixed line telephone across mainland China. The provinces of Inner Mongolia, Xinjiang, Ningxia, Qinghai, Gansu, Tibet, and Guizhou were excluded. The resulting population coverage is 65% of land mass, 95% of national population and 97.5% of Internet population.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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