China plans to improve and increase high-speed broadband networks to boost Internet speeds and reduce prices, as many people in the country still have no access to the Internet.

China's State Council said in a statement issued on Wednesday that telecommunication companies and firms should have quick action to increase urban broadband speeds by around 40 percent and cut prices, according to  Reuters. This broadband investment in China could be beneficial to global network equipment makers like the Ericsson and Nokia Oyj's Alcatel-Lucent, including players such as Huawei Technologies and ZTE Crop.

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The country's cabinet also said that China would encourage competition, which includes an expansion of scheme for broadband services this year and look forward to open up telecommunication companies. "There is still not enough competition, which has led to telecoms fees being relatively high while there is still a lot of room to improve the quality of service," according to the statement from the official State Information Center of China.

47.9 percent was China's Internet penetration rate in 2014, where small cities and rural areas in the country have low connectivity. While officials have previously designated an amount of around 2 trillion yuan ($322 billion) for the development of broadbrand facilities by the year of 2020, the statement did not mention an amount which is needed for the plan, the report added.

As China's community life is changing by the Internet, this investment to increase high-speed broadband and to cut prices will benefit the Chinese community as Internet makes possible for residents to order fruits, vegetables, meat and complete meals that are available for delivery, Xinhua reported.

Li Keqiang, China's premier, said that there should have faster broadband and low prices for the services of Internet. "China has more cell phone users than any other country, but its Internet service speed ranks below 80th in the world due to underdeveloped information infrastructure," the premier said.

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