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Bridging the digital divide for rural communities: The case of China

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  • Xia, Jun
  • Lu, Ting-Jie

Abstract

The provision of universal service in China is currently executed under a "Village Access Project" ("VAP"), which is neither explicit nor sustainable in terms of both regulatory incentives and regulatory governance. Four years after the execution of the VAP, this paper reviews possible deficiencies underlying the current regime and explores a sustainable institutional arrangement for Universal Service Obligations (USOs) in China based on the identification of unique institutional constraints. It is argued that the Universal Service Fund ("USF") is currently unsuitable for China. Instead, a layer-based regulatory approach featuring a "non-subsidy" regime could be a sustainable institutional arrangement when coordination and agency problems are properly addressed in a governance architecture based on a "Joint-Commission" with members from various stakeholder groups.

Suggested Citation

  • Xia, Jun & Lu, Ting-Jie, 0. "Bridging the digital divide for rural communities: The case of China," Telecommunications Policy, Elsevier, vol. 32(9-10), pages 686-696, October.
  • Handle: RePEc:eee:telpol:v:32:y::i:9-10:p:686-696
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    Citations

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    Cited by:

    1. Xia, Jun, 2016. "Universal service policy in China (II): Case study and institutional variables," Telecommunications Policy, Elsevier, vol. 40(2), pages 253-264.
    2. Liu, Chun, 2012. "Seeking the Best Practices in rural agricultural informatization: Evidence from China's Sichuan Province," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72547, International Telecommunications Society (ITS).
    3. Thai, Do Manh & Falch, Morten, 2018. "Universal service in Vietnam: An institutional approach," Telecommunications Policy, Elsevier, vol. 42(4), pages 323-332.
    4. Liu, Chun & Wang, Lian, 2021. "Who is left behind? Exploring the characteristics of China's broadband non-adopting families," Telecommunications Policy, Elsevier, vol. 45(9).
    5. Jayakar, Krishna & Liu, Chun, 2014. "Universal service in China and India: Legitimating the state?," Telecommunications Policy, Elsevier, vol. 38(2), pages 186-199.
    6. Xia, Jun, 2012. "Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs," Telecommunications Policy, Elsevier, vol. 36(7), pages 503-521.
    7. Kwak, Jooyoung & Lee, Heejin & Chung, Do Bum, 2012. "The evolution of alliance structure in China’s mobile telecommunication industry and implications for international standardization," Telecommunications Policy, Elsevier, vol. 36(10), pages 966-976.
    8. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.
    9. Loo, Becky P.Y. & Ngan, Y.L., 2012. "Developing mobile telecommunications to narrow digital divide in developing countries? Some lessons from China," Telecommunications Policy, Elsevier, vol. 36(10), pages 888-900.
    10. Xia, Jun, 2012. "Reprint of: Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs," Telecommunications Policy, Elsevier, vol. 36(10), pages 798-816.
    11. Liu, Chun, 2017. "An evaluation of China's evolving broadband policy: An ecosystem’s perspective," Telecommunications Policy, Elsevier, vol. 41(1), pages 1-11.
    12. Kang, Fei & Hauge, Janice A. & Lu, Ting-Jie, 2012. "Competition and mobile network investment in China’s telecommunications industry," Telecommunications Policy, Elsevier, vol. 36(10), pages 901-913.
    13. Kang, Yoolee & Ryu, Min-Ho & Kim, Seongcheol, 2010. "Exploring sustainability management for telecommunications services: A case study of two Korean companies," Journal of World Business, Elsevier, vol. 45(4), pages 415-421, October.
    14. Liu, Chun & Jayakar, Krishna, 2012. "The evolution of telecommunications policy-making: Comparative analysis of China and India," Telecommunications Policy, Elsevier, vol. 36(1), pages 13-28.
    15. Loo, Becky P.Y. & Wang, Bo, 2017. "Progress of e-development in China since 1998," Telecommunications Policy, Elsevier, vol. 41(9), pages 731-742.
    16. Xia, Jun, 2018. "The Chinese model of universal service policy: A two-decade retrospect based on an integrated framework," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190374, International Telecommunications Society (ITS).
    17. Zhang, Bin & Jin, Zhiye & Peng, Zhidao, 2018. "Bridging the Digital Divide: Making the Digital Economy Benefit to the Entire Society," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190412, International Telecommunications Society (ITS).
    18. Ting, Carol & Yi, Famin, 2013. "ICT policy for the “socialist new countryside”—A case study of rural informatization in Guangdong, China," Telecommunications Policy, Elsevier, vol. 37(8), pages 626-638.
    19. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Samitas, Aristeidis, 2016. "The effects of ICT⁎ on output per worker: A study of the Chinese economy," Telecommunications Policy, Elsevier, vol. 40(2), pages 102-115.
    20. Xia, Jun, 2016. "Universal service policy in China (I): Institutional elements and ecosystem," Telecommunications Policy, Elsevier, vol. 40(2), pages 242-252.
    21. Srinuan, Chalita & Bohlin, Erik, 2011. "Understanding the digital divide: A literature survey and ways forward," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52191, International Telecommunications Society (ITS).
    22. Liu, Chun, 2016. "Sustainability of rural informatization programs in developing countries: A case study of China׳s Sichuan province," Telecommunications Policy, Elsevier, vol. 40(7), pages 714-724.

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