If they weren't QIHU wouldn't be on the radar. Oh about that 10 for 1 split.
China’s total Internet users has reached 457 million, up 19.1% compared to 2009. Internet penetration rate (34.3%) is still low in China. The average Internet connection speed in China is only 100.9KB/s, far below the world average which is 230.4KB/s. China's Broadband initiative has slowed to a crawl because of cost and lack of rural area penetration and poverty in those areas.
66% of China’s Internet users access Internet through mobile phones. On average, China internet users spend 18.3 hours per week on internet access; or, 2.6 hours per day. ( Taken from CNNIC web info )
1,344,130,000 Population of China
Percentage of China in poverty 13.4%.
So comparing Population, and total Internet users, it represents approx 33%. Not huge numbers. Most likely BIDU has reached as many subscribers available considering how long they have had a presence in China.
A June report from Broadband Forum states:
"By the end of 2012, the ‘Broadband China’ project will see 35 million new families connected via fibre-to-the-home, 50 per cent of broadband customers experiencing speeds of 4Mbps and above, and 20 million new households with access to fixed broadband.
By 2015, the Chinese government aims to have connected 800 million web users via the project, including 200 million living in rural locations.
China recently recorded the highest number of new broadband subscribers of any country worldwide in the first quarter of this year, with an annual growth of 26.4 million (giving a 19 per cent annual growth rate), according to a new report from the Broadband Forum "–
Where do you get the idea that the broadband buildout in China "has slowed to a crawl'
According to a Sept 12, 2012 article from Eonomic Forum,
"as part of China’s 12th Five-Year Plan, the government has earmarked 1.6 trillion renminbi (c. $252bn) to build out a national broadband network by 2015. It is investing in the world’s most extensive deployment of fibre-to-the-home technology. This gives people superfast broadband connections and will boost Asia’s share of global fibre connections past the 74% of worldwide users it has today."
Have you ever travelled outside of your LA-Las Vegas triangle?
Your lack of on the ground knowledge and common is showing in your "conclusion'.
Wireless adoption is fastest in poor countries such as Africa and rural China.
Why? Poor countries don't have the infrasturcture in place to serve landlines outside of big cities.
Cell phones are cheaper for these population.
The poverty number in China has always been there. If anything, it is improving with time. It did not stop the exponential growth in her wireless industry when she was poorer. How do you arrive at poor growth when it is becoming richer?
Please enlighten us, Bruno.
Of course, if you care to read real figures available from people who know, you wouldn't have embarrased yourself.
Finally a post with information. if your opinion holds i would suggest you short all the way down to 30. The poverty numbers are known in China... but closer to home...in LA there is a poverty factor also. Could you please tell me what you think the penetration of mobile and the internet within the local population that fall under the poverty line? Think about it?
I'd like to also add that other companies at the start have forecasted higher sales than were actually attained from the rural areas. Wall street thrived on those estimates but gradullay expectations were tempered. That probably accounts for the 35% decline from 150 to 100. The big question is where do we go from here. There seems to be a lot of negative press by several analysts. I guess we will know Monday afternoon. Until that time all this speculation is worthless. But facts are facts and I appreciate reading your note.