China closing on US in number of internet users

According to China Daily, January 24, 2007, the number of internet users in China is
poised to pass the number in the USA within two years. The article goes on:

China is expected to overtake the United States to have the world's largest Internet population within two years, a quasi-government organization said yesterday.

The country had 137 million Internet users by the end of last year, an increase of 23.4 percent year-on-year, according to a biannual report released by the China Internet Networks Information Centre (CNNIC).

"The growth is now gaining much momentum. We are expecting even faster growth in 2007 and 2008 given that Internet penetration now has exceeded 10.5 percent in the country," said Wang.

The CNNIC report found that Internet access in China is going increasingly broadband and mobile. The country had 90.7 million broadband users by 2006, up 41.1 percent year-on-year. And about 17 million mobile phones users are now using their handsets to access the Web.

Mao Wei, director of CNNIC, said an increasingly mobile liifestyle in China could help spark an even bigger Internet boom.

The growth of China's Internet population could get a boost after the country rolls out 3G (third generation) mobile telephony, which promises faster Internet access and downloads of data-heavy services such as videos, the director said.

China had 461 million mobile phone users by the end of 2006, according to statistics released by the Ministry of Information Industry on Monday.

With user penetration hitting 10 percent, the Internet would create a vast array of opportunities for businesses.

Morgan Stanley anticipates escalated industry consolidation in China's Internet sector this year, with "market share shifting to a few market leaders" such as NASDAQ-listed Sina Corp, Sohu.com, Baidu, Hong Kong-listed Tencent and unlisted Alibaba.