The diffusion of the Internet in China Item Type text; Dissertation-Reproduction (electronic) Authors Foster, William Abbott Publisher The University of Arizona. Rights Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author. Download date 04/10/2021 12:10:22 Link to Item http://hdl.handle.net/10150/289812 INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. 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MI 48106-1346 USA 800-521-0600 THE DIFFUSION OF THE INTERNET IN CHINA by William Abbott Foster Copyright © William Abbott Foster 2001 A Dissertation Submitted to the Faculty of the COMMITTEE ON BUSINESS AND PUBLIC ADMINISTRATION In Partial Fulfillment of the Requirements For the Degree of DOCTOR OF PHILOSOPHY WITH A MAJOR IN MANAGEMENT In the Graduate College THE UNIVERSITY OF ARIZONA 200 1 UMi Number 3010214 Copyright 2001 by Foster, William Abbott All rights reserved. UMI* UMI Microform 3010214 Copyright 2001 by Beli & Howell Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17. United States Code. Bell & Howell Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor. Mi 48106-1346 2 THE UNIVERSITY OF ARIZONA « GRADUATE COLLEGE As members of the Final Examination Committee, we certify that we have read the dissertation prepared by William Abbott Foster entitled The Diffusion of the Internet in China and recommend that it be accepted as fulfilling the dissertation requirement for the Degree of Doctor of Philosophy March 30, 2001 nour E Date March 30, 2001 Date {aJoIM March "/O, 2001 Date (0 March 30, 2001 i^en S. Whitinq 7 Date Date Final approval and acceptance of this dissertation is contingent upon the candidate's submission of the final copy of the dissertation to the Graduate College. I hereby certify that I have read this dissertation prepared under my direction and recommend that it be accepted as fulfilling the dissertation requirement. £ £• Lu. fferch 30, 2001 Disse^atlon Director Date Seynoxir E. Gdocinan 3 STATEMENT BY AUTHOR This dissertation has been submitted in partial fulfillment of requirements for an advanced degree at The University of Arizona and is deposited in the University Library to be made available to borrowers under rules of the Library. Brief quotations from this dissertation are allowable without special permission, provided that accurate acknowledgment of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the copyright holder. SIGNED: 4 ACKNOWLEDGEMENTS I would like to thank Seymour Goodman for creating an opportunity for me to study the diffusion of the Internet in China over the past four years. I will always be grateful for his intellectual guidance. It has been a wonderful experience being part of the MOSAIC Group and the Global Diffusion of the Internet Project under Sy's leadership.. I am grateful for all my fellow team members: Grey Burkhart, Larry Press, Bill McHenry, Peter Wolcott, and Jonathan Woodard. I would like to thank the members of my dissertation committee: Barbara Sands, Chia-lin Pao Tao, Sherry Thatcher, Alan Whiting, Ed Zajac as well as again Peter Wolcott and Sy Goodman . John Lewis, Michael May, Fei-Ling Wang, Tao Wenzhao for reviewing an earlier version of this manuscript.. Ted Dean, Marcus Franda, Ken Grant, Yufu Huang, Hui Pan, Peter Lovelock, Changbo Quo, Alex Tan, Emie Wilson, Ling Zhu and many others for opening doors and providing both conceptual frameworks and data. Levi Fimio, Holly Henning Foster, Stephen Halpert, Tasha Halpert, Canela Meyers, Susan Newman, June Posatsek and Virginia Welford for supporting me as I have matured as a writer, a scholar, and a person. I would like to acknowledge the influence of my parents and their belief in the value of education. And finally I would like to acknowledge Austin who is the most inquiring mind I have ever met. I can not even imagine what the Internet or even the world will be like when he is my age, but I hope that the Global Diffusion of the Internet Project will have played a role in the evolution of both. 5 TABLE OF CONTENTS TABLE OF FIGURES 13 TABLE OF TABLES 14 ABSTRACT 17 CHAPTER I: INTRODUCTION 18 CHAPTER 2: METHODOLOGY FOR STUDYING INTERNET DIFFUSION 29 E-Readiness Indicators.—............. .............. ........— 30 A Framework for Analyzing the Internet within a Country ......— 32 Research Methods...... .... ...... ...... 33 Diffusion of Innovations—...... ...... ........ ....... ..... ......—. 35 Pervasiveness............................................................................................................ 36 Geographic Dispersion .... ....... ....... .... ... ............ 36 Sectoral Absorption... ................... ........— ... ...... ........... 37 Connectivity Infrastructure....................... ............. ...... ......— 39 Organizational Infrastructure.......—......... ............. ...... .......... 39 Sophistication of Use... ... ........—.........—..—..... .......................... 40 Framework Determinants.....—......—.............................—..—.............. ..41 Determinants and Dimensions........—.......—................—....—..—.................. 42 Perceived Value........................ ...........................................—.....—..........44 Ease of Use....................—.....................—.........—......—...—................... 45 Cost of Internet Access.....— ................................. ...—..—......— 46 Access to Constituent Technologies.... .........—.............—...—...—.... 46 6 TABLE OF CONTENTS - Continued Demand for Capacity and Connectivity......................................................... 47 Geography .... 47 Adequacy and Fluidity of Resources.............................................................. 47 Ability to Execute... .... 48 Culture of Entrepreneurship ..... ... 48 Regulatory and Legal Framework.................................................................. 49 Forces for Change......—.... .... .... ...—..........—........... 49 Enablers of Change 50 Government 50 CHAPTER III: GOVERNMENT POLICY ON THE INTERNET 52 State Council...—.—..—.....— ....—....— 54 History of Conflict between MPT and MEL.—....— 56 State CounciPs Steering Committee on National Information Infrastructure.. 58 The Steering Committee and Key Internet-Related Issues.....—....—..—.—.. 60 The Ministry of Information Industry ... ....—.........—...—...—...........—. 62 China Telecom and the National Backbone....— .......—............................ 63 Let the Sons Compete................ ............—............—..............................—.... 64 Unicom.................................—..—...........—...........—.......—..........—......... 64 China Netcom...................... ............—.................................—......... ..66 China Mobile Telecommunications Network....................—........—.......... 67 Mn and SARFT and the Convergence of Cable with the Internet............—... 67 7 TABLE OF CONTENTS - Continued Internet Content Providers..................................................................................... 68 Negotiating with the WTO...................................................................................... 69 Voice Over IP: Can the Bureaucracy Keep Up with Convergence? 74 Class One and Class Two: The New Telecommunications Regulations............. 75 CHAPTER IV: INTERNET SECURITY 78 Encryption............ ........... 78 Information Control .......— 81 ICP News 83 Chat Rooms............ ...... ....... .....— 87 Website Blocking ... ....... ............ 87 Prosecutions.............................................................................................................. 88 LinHai 88 Tunnel................................................................................................................ 89 Falun Gong..............—....... ...... .................... .......... 89 National Security...............................—.................—.................. .....