China's Cable, Telecom to Fight

Home>>Business

Last updated at: (Beijing Time) Friday, March 22, 2002

China's Cable, Telecom to Fight

China's TV broadcasting sector is speeding up its network reform to prepare for potential competition from the telecom industry, according to broadcasting authorities.

DISCUSSION

CHINESE

SEND TO FRIEND

Cable TV and Telecom

Not to cover each other's business

Cable TV expected to get telecom license

Cable authorities decline telecom sector's plan to converge markets

Potential competition heating up

China's TV broadcasting sector is speeding up its network reform to prepare for potential competition from the telecom industry, according to broadcasting authorities.

"In the network convergence of cable and telecom, TV cable will be able to carry all kinds of information, including images, voices and data," said Zhang Haitao, deputy director of the State Administration of Radio, Film and Television (SARFT) -- the broadcasting watchdog.

Many of these services are provided by telecom operators.

However, the potential competition between telecom and broadcasting sectors is heating up.

"If overseas companies are allowed to provide telecom services, why not the domestic broadcasting sector which has rich network resources and close relationships with millions of families," Zhang said in a forum prior to yesterday's China Cable Broadcasting Network 2002 -- the country's annual broadcasting gathering -- which ends on Saturday.

Better satisfy people's demand is a trend

China's cable broadcasting network, one of the most wide ranging networks, had attracted more than 100 million subscribers by the end of last year, according to SARFT.

Its subscriber base could compete with any telecom operators, as one cable subscriber always represents 3-4 persons, according to industry experts.

Value-added information services, including high-speed Internet access, video on demand and interactive TV programmes, will become new revenue pools for the broadcasting companies, the SARFT official said.

Such services are in trial operations in limited areas. If promoted nationwide, TV cable network will pose a strong rivalry for Internet-related businesses, as it has a broader bandwidth and better coverage than telecom networks.

Besides value-added services, pay TV, providing specific programmes for different tastes, will become another revenue pool for the broadcasters, Zhang said.

Most of the country's TV stations are now providing general programmes leading to similarity among different stations which pushes audiences away from TV, he said.

Providing a more selective and individual programme schedule will bring TV stations rich rewards, according to Hu Zhengrong, a professor at Beijing Broadcasting Institute.

Hainan TV Station recently launched the country's first professional tourism channel, which provides only tourism-related information, in particular travel information in Hainan, a southern province with rich tourism resources.

This is a development trend to better satisfy people's demand for information and make a profit for the TV station, Hu said.

Potential mutual entry

According to SARFT, this year will be a preparatory period for pay TVs, with many TV stations expected to launch professional channels next year.

China's telecom operators showed ambition for broadcasting business for years, and now the broadcasting sector has the same thoughts for the telecom services.

Due to policy barriers, the two sectors are not yet able to enter each other's fields. However, mutual entry will not be far away, Hu said.

Zhang Xinzhu, a telecom expert with the Chinese Academy of Social Sciences, also said mutual entry is an unavoidable trend and will bring mutual benefits to both industries.

Questions?Comments? Click here

Cable Authorities Decline Telecoms Sector's Plan to Converge Markets

Cable TV and Telecom Not to Cover Each Other's Business: ASRFT