China Internet. Report. The Second Quarter of Content-aware Network Services. en.chinac ache. com. ChinaCache.

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1 Content-aware Network Services China Internet en.chinac ache. com Report The Second Quarter of 201 ChinaCache ChinaCache_CCIH ChinaCache International Holdings Ltd.

2 Table of Contents Abstract 1. Key Data: Q2, Main Findings China Internet Report I Internet Users by Geography Content-aware Network Services II Bandwidth Access III Internet Connection Speed IV Peak Hours vs. Off-Peak Hours V Usage of Operating Systems in China About This Report

3 Key Data: Q2 201 Internet Users Geographic Distribution in China % Key Data Key Data Eastern China: 57.7%, up 122 basis points Central China: 2.%, down 292 basis points Western China: 19.0%, up 170 basis points Internet users in the eastern part of China use the Internet more actively than those in the western % 2.% % 19.0% 1.7% Internet Users by Geography and central regions. 0 Eastern China Central China Western China Internet Connection Speed Peak Hours vs. Off-Peak Hours Bandwidth Access Usage of Operating Systems in China Bandwidth Access <256 Kbps: 0.% 256Kbps-2Mbps: 45.8% 2 Mbps 5 Mbps: 7.7% 5 Mbps: 16.% Ultra Broadband Access 16.2% Narrowband Access 0.% Bandwidth Access between 256K and 2M Bandwidth Access between 2M and 5M Average Internet Connection Speed in China In the second quarter of 201, average Internet connection speed in China increased to. Mb/s, from Mb/s in the first quarter of 201. Top Province: (5.1 Mb/s) Top Carrier: China Telecom (.4 Mb/s) 0

4 Key Data Peak Hours vs. Off-Peak Hours The narrowest speed gap between peak hours and off-peak hours: (.8 Mb/s vs. 4.6 Mb/s) The widest speed gap between peak hours and off-peak hours: Tianjin ( Mb/s vs. 4. Mb/s) Main Findings Usage of Operating Systems 70.0% of Internet users in China are still using Windows XP, making it the most frequently used desktop operating system in China. Windows 7 is a distant second with 26.8% of Internet population installing it in their computers. The remaining.2% of Internet users are running Windows 8, Windows Vista, Mac OS X, etc. Internet Usage in the Western Region Continues to Increase Ultra Broadband Access Continues to Increase Average Internet Connection Speed of the Western Regions is Growing the Most Quickly Connections Speed Rankings vs. GDP Rankings 04

5 Main Findings Internet Usage in the Western Region Continues to Increase Eastern China still has a higher concentration of Internet users than the Western and Central regions, mainly due to Eastern China s economic profile, which supports higher demand for Internet services. The number of Internet users in the Western provinces, however, continued to increase in the second quarter of 201, accounting for 19.0% of overall Internet population. Ultra Broadband Access Continues to Increase Internet users with bandwidth access of above 2Mb/s account for 54.0% of China s total Internet population, an increase of 8.1% from last quarter. The usage of ultra broadband access continues increasing, while the usage of narrowband has continued to decline and is now nearly nonexistent. Average Internet Connection Speed of the Western Regions is Growing the Most Quickly Average Internet connection speed in China s Eastern provinces (.4 Mb/s) is higher than in the Western ( MB/s) and Central provinces ( Mb/s), but the Western regions are enjoying the fastest increases in average Internet connection speeds, which were up 1% over last quarter. Internet Users by Geography Unbalanced Geographic Distribution Internet Users Geographic Distribution vs. Population Geographic Distribution Connections Speed Rankings vs. GDP Rankings A city's connection speed ranking is not necessarily in proportion to its GDP ranking.taking Shuangyashan as an example, it ranks second on the list with an average connection speed of 4.8 Mb/s. Its GDP, however, is not even in the top 50 nationwide. Another noticeable example is Guangzhou, which has China s third highest GDP, but fails to make the list of the country s top 100 connection speeds. 06

6 Internet Users by Geography Guangdong has the most Internet users, accounting for 16.% of total Internet population. and come second and third with respective users of 7.2% According to CC Index, China s Internet users showed an unbalanced distribution in the second quarter of 201. and 6.%. The bottom three provinces are, and, having 0.1%, 0.2% and 0.4% of Internet users respectively. Unbalanced Geographic Distribution Internet Users Geographic Distribution in China (by province) The number of Internet users in Eastern China in the second quarter of 201 accounted for 57.7% of China s total Internet population, once again higher than the Central and Western regions combined. The number of Internet users in the Central region totaled 2.%, down 292 basis points quarter-over-quarter, while users in the Western region totaled 19.0%, up 170 basis points from the first quarter of 201. Internet Users Geographic Distribution in China (by region) Q2 Q1 70% 60% 57.7% 56.5% 50% 40% 0% 26.2% 2.% 19.0% 20% 17.% 10% 0% Eastern China Central China Western China Guangdong Hebei Henan Sichuan Hubei Guangxi Anhui Jiangxi Chongqing Yunnan Jilin Inner Mongolia Tianjin Gansu Hainan 7.2% 6.% 6.0% 5.5% 5.1% 4.6% 4.2% 4.0% 4.0%.2%.2% % 2.7% 2.7% 2.7% 2.4% 2.1% 2.0% 1.9% 1.8% 1.6% 1.6% 1.4% 1.% 1.2% 1.1% 0.6% 0.4% 0.2% 0.1% 16.26% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 08 09

7 Internet Users Geographic Distribution vs. Population Geographic Distribution Region Internet Users Geographic Distribution (by region) Internet Users Population Geographic % Change Geographic Province Distribution % Change Distribution (by province) Henan 5.1% -0.7% Population Geographic Distribution 7.0% While Internet users in the Eastern part of China account for 57.7% of the total Internet population, this region accounts for only 41.1% of total population. Conversely, Central and Western provinces account for a combined 58.9% of the population but only 42.% of the Hubei.2% 2.7% -0.4% -0.4% 4.% 2.7% country s Internet users. Anhui 2.7% 0.2% 4.4% Internet Users Geographic Distribution vs. Population Geographic Distribution Central China 2.% -%.4% 2.7% 1.9% -0.1% -0.9% 4.9% % Region Internet Users Geographic Distribution (by region) Internet Users Population Geographic % Change Geographic Province Distribution % Change Distribution (by province) Population Geographic Distribution Jiangxi Jilin 2.1% 1.6% -0.1% -0.4%.% 2.1% Guangdong 16.%.2% 7.8% Inner Mongolia 1.4% -0.1% 1.8% 7.2% -0.2% 5.9% Sichuan 4.6% -0.1% 6.0% 5.5% -1.% 7.2% Guangxi % 0.%.4% 6.% 0.2% 4.1%.2% 0.9% % Hebei 6.0% 0.1% 5.4% Chongqing 2.0% -0.1% 2.2% Eastern China 57.7% 1.2% 41.1% 4.0% -1.1% 1.5% Yunnan 1.8% 0.2%.4% 4.2% 4.0% 0.8% 0.% 1.7% % Western China 19.0% 1.7% 25.0% 1.1% 1.6% -0.1% 0.2% 1.6% % 2.4% -1.0%.% Ganxu 1.2% 0.% 1.9% Tianjin 1.% 0.1% 1.0% 0.4% 0.02% 0.5% Hainan 0.6% 0.1% 0.7% 0.2% 0.01% 0.4% % -0.01% 0.2%

8 Bandwidth Access Bandwidth Access Bandwidth Access Overall Landscape Ultra Broadband Access Overall Landscape Bandwidth access by percentage of population: 1) <256 Kbps: 0.%, down basis points 2) 256Kbps-2Mbps: 45.8%, down 804 basis points ) 2 Mbps 5 Mbps: 7.7%, up 02 basis points 4) 5 Mbps: 16.%, up 505 basis points Broadband Access Narrowband Access Bandwidth Access in China >5M 16.% 11.2% 2M-5M 7.7% 4.7% 256K-2M 45.8% 5.8% <256K 0.% 0.% 0% 10% 20% 0% 40% 50% 60% Q2 201 Q

9 Bandwidth Access Bandwidth Access Ultra Broadband Access Broadband Access still has the highest concentration of ultra broadband access, which accounts for 48.2% of total bandwidth in the province. and rank second and third with respective ultra broadband penetration of 2.8% and 2.6% As for broadband access, remains first, with broadband usage of 7%, while and are second and third, with respective broadband usage of 61.% and 60.%. saw the most significant increase from last quarter, with broadband usage of 55.9%, but it ranked only 16th on the list. Top 10 Provinces with Ultra Broadband Penetration Top 10 Provinces with Broadband Penetration Ranking Province Ultra Broadband Penetration % Change % 48.2% 6.% 11.8% 6 58.% 10.2% 2.6%.5% 4 5 Tianjin 2% 19.1% 4.2% 4.9% 5 Hebei 59.2% 10.4% Guangdong 18.9% 18.6% 18.0% 17.8% 17.2% 5.1% 4.8% 5.9% 5.9% 6.8% Broadband Penetration % Change Jiangxi 57.5% 7.5% 10 Hainan 56.7% 4.4% 58.0% 7.2% 9 Guangdong 57.0% 6.1% 2 61.% 9.0% 1 7% 8.0% 4 60.% 5.0% 59.2% 8.1%

10 Bandwidth Access Narrowband Access The use of narrowband continued to decline nationwide. has the highest penetration, at 0.4% of total bandwidth access, while and are second and third, with narrowband usage of 0.41% and 0.8% respectively. Internet Connection Speed Ranking Top 10 Provinces with Narrowband Penetration Province Narrowband Penetration % Change Average Connection Speed in China Average Connection Speed by Region 1 0.4% -0.11% Average Connection Speed by City % -0.10% 0.8% -0.12% Average Connection Speeds of Major Carriers 4 Tianjin 0.2% -0.04% 5 0.1% -0.09% 6 0.0% -0.05% 7 0.0% -0.01% 8 Chongqing 0.0% -0.01% 9 Gansu 0.0% -0.04% % -0.06% 16

11 Internet Connection Speed Average Connection Speed in China In the second quarter of 201, average connection speed in China increased to. Mb/s, compared with Mb/s in the first quarter of 201. As of June 0, 201, 41.9% of China s provinces had an average connection speed between 2 Mb/s and Mb/s; 54.8% had an average connection speed between Mb/s and 4 Mb/s, more than double the number from a quarter ago; and.% had an average connection speed higher than 4 Mb/s. Average Connection Speed in China Connection Speed 4Mb/s Mb/s Connection Speed<4Mb/s 2Mb/s Connection Speed<Mb/s Connection Speed 2Mb/s Average Connection Speed in China 4Mb/s.%.% Mb/s-4 Mb/s 54.8% 22.5% 2 Mb/s- Mb/s 41.9% 74.2% Average Connection Speed.29 Average Connection Speed by Region Narrower Connection Speed Gap between Eastern and Western China in Mb/s Average Connection Speed by Region I.4 10% 9.% Internet Connection Speed Average connection speeds across the country have increased quarter-over-quarter, and the connection speed gap from region to region has become narrower. China's Eastern provinces had an average connection speed of.4 Mb/s, Central provinces had an average speed of Mb/s and Western provinces had an average speed of Mb/s. Q1 201 Q % Eastern China Central China Western China % Change 14% 12% 10% 8% 6% 4% 2% 0% <2 Mb/s % 10% 20% 0% 40% 50% 60% 70% 80% 201 Q2 201 Q1 19

12 Internet Connection Speed Internet Connection Speed Average Connection Speed by Region II Clear Connection Speed Gap between Provinces Average Connection Speed.42 Average Connection Speed Hebei Eastern China Guangdong Tianjin Hainan Western China Yunnan Gansu Sichuan Guangxi Chongqing Average Connection Speed Central China Anhui Jiangxi Henan Hubei Inner Mongolia Jilin was once again the top ranking province, with an average connection speed of 5.1 Mb/s. and came in second and third with average connection speeds of.64 Mb/s and.61 Mb/s respectively. had the lowest average connection speed at only 2.5 Mb/s, less than half the average connection speed of a user in Zongti.29 Anhui Yunnan.21 8 Hebei 8 Gansu 7 Guangdong 6 Sichuan Jiangxi 1 Henan 8 Hubei 9 Inner Mongolia 8 Tianjin 8 Guangxi 5 Jilin 4 Chongqing 7 Average Connection Speed by Province 6 Hainan

13 Internet Connection Speed Internet Connection Speed Speeds in Western China are Increasing the Fastest Ranking Province % Increase (QoQ) 201 Q2 201 Q1 The top three quarterly speed increases were in the western part of China: namely (25.0%), Gansu (24.%) and (2%). By comparison, saw the lowest rate of improvement, with average connection speeds increasing only 0.6% from the first quarter. Hainan was the only Inner Mongolia Hebei 11.6% 11.6% 11.2% province in which connection speeds fell as compared to the first quarter. 16 Jilin 10.1% %.2 Average Connection Speed by Province: 201 Q2 vs. 201 Q Zhongqing Guangdong 9.5% 9.% 9.% Ranking Province % Increase (QoQ) 201 Q2 201 Q1 21 Yunnan 7.7% Gansu Tianjin Hubei 25.0% 24.% 2% 19.1% 18.1% 17.4% 17.4% 17.0% 15.5% 14.6% Henan Anhui Sichuan Jiangxi Hainan 1.0% 0.6% 7.1% 6.9% 6.9% 5.0% 4.% 4.2% % -.8% Guangxi 1.9% %. 22 2

14 Internet Connection Speed Internet Connection Speed Average Connection Speed by City Average Connection Speeds of Major Carriers Looking at the 10 cities with the highest average connection speeds, we identified little correlation between Internet speed rankings and economic prosperity. Among the top 10 cities by average connection speed, only (5.1 Mb/s) had what is generally considered strong economic status. The other nine were all categorized as less developed. Overall Connection Speeds Comparing China's three major carriers, China Mobile had the lowest average connection speed of only Mb/s, behind China Unicom s Mb/s and China Telecom's.4 Mb/s. Top 10 Cities by Average Connection Speed Average Connection Speeds of Major Carriers (Unit: Mb/s) Ranking City Connection Speed Q2 201 Q1 in Mb/s 2 Shuangyashan Jiuquan Yanji Weihai Ordos Shangluo Rizhao Xiangxi Tujia and Miao Autonomous Prefecture China Telecom China Mobile China Unicom 10 Wenzhou

15 Regional Speeds by Carrier China Telecom: Top three: (5. Mb/s), (4.0 Mb/s) and Hebei (.9 Mb/s) Bottom: (2.5 Mb/s) China Unicom: Top three: (4.1 Mb/s), (.8 Mb/s) and (.7 Mb/s). Bottom: (2. Mb/s) China Mobile: Top three: (.8 Mb/s), (.4 Mb/s) and ( Mb/s) Bottom: (1.8 Mb/s) Carrier Speeds by Province (Top 10 and Bottom 10) Peak Hours vs. Off-Peak Hours Average Connection Speed during China Telecom: Top China Unicom: Top 10.8 China Mobile: Top Hebei Heilingjiang Henan Anhui Jilin Chongqing Gansu Anhui China Telecom: Bottom China Unicom: Bottom China Mobile: Bottom Yunnan Jilin Chongqing 2.5 Hainan 2. Haian Chongqing Sichuan Hebei Sichuan Hainan Guangxi Peak/off-Peak Hours by Region Average Connection Speed during Peak/off-Peak Hours by Carrier Carrier Average Connection Speed during Peak/off-Peak Hours by Province

16 Peak Hours vs. Off-Peak Hours Peak Hours vs. Off-Peak Hours Average Connection Speed during Peak/off-Peak Hours by Region Average Connection Speed during Peak/off-Peak Hours by Carrier For most regions, there is a clear speed gap between peak and off-peak hours. Taking Tianjin as an example, average connection speed during off-peak hours can be as high as 4. Mb/s, while they fall to only Mb/s during peak hours. The speed gap is narrow in only a few regions, such as. During off-peak hours, users enjoy an average connection speed of 4.6 Mb/s; while connection speeds All three of China s major carriers face the same issue: a noticeable speed gap between peak and off-peak hours. China Mobile: 2. Mb/s vs..8 Mb/s China Telecom: Mb/s vs. 4.0 Mb/s China Unicom: 2.7 Mb/s vs..6 Mb/s average.8 Mb/s during peak hours. From the speed gap between peak and off-peak hours, it can be inferred that Internet users Carrier Average Connection Speed during Peak/off-Peak Hours in some regions can get only shared bandwidth, instead of dedicated bandwidth, which ISPs claim to provide Average Connection Speed during Peak/off-Peak Hours by Region Peak Hours Off-Peak Hours Sichuan Hebei Hainan Guangdong Jilin Guangxi Anhui Hubei Jiangxi Yunnan Inner Mongolia Peak Hours/ Off-Peak Hours.2 90% 85% 80% 75% % % 60% Henan Gansu Zhongqing Tianjin 4.0 Peak Hours Off-Peak Hours China Telecom China Unicom China Mobile 28 29

17 Peak Hours vs. Off-Peak Hours Carrier Average Connection Speed during Peak/off-Peak Hours by Province China Telecom Telecom: narrowest speed gap between peak (5.5 Mb/s) and off- peak (5.7 Mb/s) hours Telecom: widest speed gap between peak ( Mb/s) and off-peak (6.1 Mb/s) hours Peak Hours vs. Off-Peak Hours Carrier Average Connection Speed during Peak/off- Peak Hours by Province: China Unicom Peak Hours Off-Peak Hours Peak Hours/ Off-Peak Hours 85% 80% 75% China Unicom Jilin Unicom: narrowest speed gap between peak ( Mb/s) and off- peak (.4 Mb/s) hours Unicom: widest speed gap between peak (2. Mb/s) and off-peak (.8 Mb/s) hours China Mobile Mobile: narrowest speed gap between peak ( Mb/s) and off-peak (.6 Mb/s) hours Chongqing Mobile: widest speed gap between peak (1.8 Mb/s) and off-peak (4. Mb/s) hours Carrier Average Connection Speed during Peak/off- Peak Hours by Province: China Telecom Peak Hours Off-Peak Hours Peak Hours/ Off-Peak Hours Guangxi Jilin Hebei Inner Mongolia Guangdong Anhui Hainan Hubei Sichuan Gansu Jiangxi Zhongqing Henan Yunnan Tianjin 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% Carrier Average Connection Speed during Peak/off- Peak Hours by Province: China Mobile Jilin Zhongqing Hubei Hainan Guangdong Guangxi Hebei Sichuan Jiangxi Anhui Henan Tianjin Yunnan Inner Mongolia Gansu Peak Hours Off-Peak Hours (Note: Off-peak hours refer to the time period from 00:00 to 07:00, and peak hours refer to the time period from 19:00 to 24:00.) 70% 65% 60% Peak Hours/ Off-Peak Hours zhejiang sichuan shandong liaoning shanghai jiangsu beijing heilongjiang hainan hebei yunnan guizhou anhui guangdong tianjin henan fujian jiangxi qinghai shanxi guangxi gansu hubei Inner Mongolia jilin ningxia xinjiang hunan zhongqing 80% 75% 70% 65% 60% 55% 50% 45% 40%

18 Usage of Operating Systems in China Usage of Operating Systems in China With the comprehensive data collected across its country-wide network via CCIndex, ChinaCache for the first time has analyzed the usage of operating systems in China. From the following chart, we can see that Windows XP is the dominant desktop operating system used in China, with 70.0% of the country s Internet population using it in their computer. Windows 7 comes in a distant second with 26.8% of users. Windows 8, Windows Vista and Mac OS X account for 1.0%, 0.6% and 0.5% respectively. Other operating systems account for only 1.% combined. Ranking Top 5 Most Used Operating Systems Operating System Windows XP Windows 7 Windows 8 Windows Vista Mac OS X Other Operating Systems Usage Share%(dv) 70.0% 26.8% 1.0% 0.6% 0.5% 1.% 1.0% 0.6% 0.5% 1.% Usage of Operating Systems in China 26.8% 70.0% Windows XP Windows 7 Windows 8 Windows Vista Mac OS X Other Operating Systems

19 Appendix Connection speeds and applications appropriate for such speeds 4 (Source: Research Report on Global Internet Connection, 2011) Connection speed Applications allowed Connection speed Applications allowed 256 Kbps 2 Mbps Basic Simple web pages Online music Low-quality video 5 Mbps 10 Mbps File sharing (large files) IPTV (standard definition - multi channels) Broadcast video (standard definition) VOD (2~ channels) HD video download Medical file sharing (basic) Distance education Building control and management 2 mbps 5 mbps Websites with some dynamic content s with large attachments Remote monitoring IPTV (standard definition - 1~ channels) File sharing (small/medium-sized files) Digital broadcasting (one channel) Streaming audio 5 Mbps 10 Mbps Telemedicine Education services Broadcast video (standard definition and HD) IPTV (HD) High-quality remote display Monitoring (HD) Intelligent building control Ranking City Shuangyashan Jiuquan Yanji Weihai Ordos Shangluo Rizhao Xiangxi Tujia and Miao Autonomous Prefecture Wenzhou Linyi Lianyungang Hefei Nanchang Heihe Ankang Mudanjiang Chaozhou Zhoushan Liaocheng Neijiang Ziyang Changzhou Wenshanzhou Nanjing Suzhou Jinan Dezhou Lincang Xuancheng Hhou Hechi Average Connection Speed: Top 100 Cities Connection Speed Ranking City Yongning Zaozhuang Wuxi Yantai Taian Dongying Fuzhou Huaian Zhangjiajie Binzhou Changde Nantong Suqian Yongzhou Panjin Chenzhou Xiamen Ningbo Xuzhou Zibo Benxi Yangzhou Wulanchabu Meizhou Mianyang Laiwu Hangzhou Zhenjiang Jiamusi Yulin Jingdezhen Hebi Hengyang Connection Speed Ranking City Xianning Luzhou Putian Liuan Wuhu Deyang Jining Zhaotong Jinhua Suzhou Bangbu Yancheng Handan Quanzhou Lijiang Loudi Zhoukou Qujing Tonghua Shaoyang Baoji Panzhihua Shanwei Lishui Suihua Sanmenxia Nanyang Daqing Jieyang Xuchang Tangshan Heze Chizhou Foshan Connection Speed

20 About China Internet Report China Internet Report provides a comprehensive picture of China s Internet landscape, including Internet users geographic distribution, connection speed and bandwidth access statistics, carrier-specific data and more. About ChinaCache International Holdings Ltd. ChinaCache International Holdings Ltd. (NASDAQ: CCIH) is the leading total solutions provider of Internet content and application delivery services in China. As a carrier-neutral service provider, ChinaCache's network in China is interconnected with networks operated by all telecom carriers, major non-carriers and local Internet service providers. With more than a decade of experience in developing solutions tailored to China's complex Internet infrastructure, ChinaCache is a partner of choice for businesses, government agencies and other enterprises to enhance the reliability and scalability of online services and applications and to improve end-user experience. For more information on ChinaCache, please visit en.chinacache.com. About CC Index ( CC Index is based on data collected by ChinaCache throughout its network. It is the first index in China that allows Internet users to know about the Internet situation at anytime, anywhere. CC Index can provide information about Internet users geographic distribution, diagnose network bottlenecks, and provide Internet connection speed rankings, etc. Purpose of Research Broadband access in China has improved rapidly since the Chinese government launched the 12th Five-year Plan in Chinese media outlets have made broadband a heated topic and encouraged discussions on its possible progress by the end the 12th Five-year Plan. Under the leadership of China s Ministry of Industry and Information Technology (MIIT), ChinaCache along with several other Internet companies has conducted a series of discussions and studies on the broadband situation since After the concerted efforts from China Academy of Telecommunication Research of MIIT, the three major carriers, large Chinese Internet companies and research institutions both in China and abroad, in November 2012 MIIT released a series of testing standards for China s broadband connectivity, such as fixed-line broadband speeds and Internet user experience. The testing standards will serve as touchstone for broadband progress under the 12th Five-year Plan. ChinaCache currently has deployed around 15,000 servers across China and provided a comprehensive suite of services for various Internet applications, such as web pages, video and audio streaming and file downloading. ChinaCache can create a reliable picture of Chinese Internet users online experience by accessing and analyzing data streams from each server. Methodology China Internet Report uses data gathered by ChinaCache throughout its network and analyzes the whole log, which represents the real behavior of Internet users across the country. Under the guidance of newly released MIIT standards, ChinaCache will measure and analyze the data collected by its devices installed on networks nationwide. The speed testing conducted by ChinaCache particularly reflects average speeds during peak hours and off-peak hours. Peak hours refer to the time period from 19:00 to 24:00 and off-peak hours refer to 00:00 to 6:00. Generally speaking, the number of Internet users during peak hours is more than that during off-peak hours. This report also analyzes various speed gaps between different provinces, cities and carriers. Terminology 1. Internet connection speed refers to the speed associated with the process of servers responding to end users connection or data exchange requests. High Internet connection speeds typically support fast downloads and low latency when opening a website. 2. Bandwidth refers to the maximum Internet connection speed that can be achieved under optimal conditions. A number of factors can impact Internet connection speeds, including the physical location of the end-user as well as content/data availability. As such, actual Internet connection speeds are normally lower than the maximum speed a certain bandwidth allows.. Ultra broadband: bandwidth of over 5 Mbps 4. Narrowband: bandwidth of less than 256 Kbps 5. Mb/s, or Mbps, refers to Megabytes per second. It is a unit of data transfer rate. For example, if an end user purchases broadband service of 1M, 2M, or 10M, he/she can enjoy 1Mb/s, 2Mb/s, or 10Mb/s of bandwidth, respectively. The higher this figure is, the higher user s Internet connection speed will be, and the more types of content and applications they can enjoy. 6 7