State-owned China Broadcast Network (CBN) has been approved by the Ministry of Industry and Information Technology to become China's fourth telecom operator.

The new license allows CBN to provide domestic Internet data transmission and telecommunication infrastructure service.

Under the permit, CBN will enter the broadband market, a move that is expected to provide better Internet access and lower broadband prices. The company will now compete with three other telecom giants, China Mobile, China Unicom and China Telecom.

The approval is said to would bring business opportunities in the smart home entertainment market.

The company will also likely build telecom infrastructure for wireless communication networks in the future.

However, industry analysts say the new entry by CBN will not shock the current carriers or change the short-term competitive landscape in the domestic market.

CBN was established in 2014 with a registered capital of 4.5 billion yuan.

It operates in the areas of cable network construction, operation and maintenance.

The approval for CBN's entry into the telecom sector comes as Chinese authorities are pushing for the so-called three-network convergence, which aims to combine cable television, telecommunications and the Internet into one seamless communication chain.