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January 16, 2010

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China's Net users total 384m

THE number of Internet users in China jumped almost 30 percent in 2009, with most of the growth coming from people who use mobile phones to go online, a state-level research organization said yesterday.

By the end of 2009, there were 384 million Internet users in the country, an annual rise of 28.9 percent. The mobile Internet user base increased 120 million in 2009 to 233 million, accounting for 60.8 percent of the total Internet population, according to China Internet Network Information Center, also known as CNNIC.

As in 2008, the most-frequently used Internet functions last year were to access online music, news browsing and search engines, CNNIC said.

"Spurred by booming 3G mobile services, handset users have become the growth engine of new Internet users," said CNNIC in a report released yesterday.

Top handset vendors, such as Nokia and Apple, have launched smartphones in China, including iPhone last year, which allows users to access the Internet using their phones.

Meanwhile, the popularity of netbooks, a smaller version of a laptop with basic Internet functions and priced reasonably, also boosted the popularity of the Internet, analysts said.

In January 2009, China issued 3G, or third generation, licenses to three operators. Based on a 3G network, services such as video calling, film downloading and high speed Internet browsing can easily be accessed through cell phones.

China's Internet penetration rate was 28.9 percent by the end of last year, lower than that of the United States with 75 percent, which means the dot-com economy has a big potential in the country, analysts said.

The boom in e-business applications generated a total income of 74.3 billion yuan in China's Internet industry last year, a 30.7 percent annual growth, according to iResearch Inc, a Shanghai-based consulting firm.

It predicted China's Internet industry would grow in 2010 with a combined revenue of more than 100 billion yuan (US$15 billion) and to expand more than 50 percent annually.

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