February 9, 2010, For many years, Chinese telecom service providers have been lucky for not needing to compete with cable TV service providers. But their fortune may comes to an end in year 2010. A new national CATV service provider in mainland China is reported to be organized by the government.
From Xinhua news agency, high-ranked officers from MIIT（Minstry of Information Industry Technology）and SARFT（State administration of radio and film, television）have announced that government will adopt kinds of supporting policy to organize a new national CATV service provider in mainland China. This new CATV service provider will represent whole Cable TV industry to provide triple play service. Early than this announcement, it is rumored that China’s government will invest 20 billion RMB to organize the new CATV service provider.
Several weeks ago, China’s government announced the triple play policy officially. According to this policy, CATV services providers can provide telecom service, and telecom service providers can provide TV services in the future. Because China’s telecom service providers have much more resources than CATV service providers, there are 3 years protecting period for CATV service providers. In the first 3 years, Both Cable TV service providers and Telecom service providers can make some trial networks, but CATV providers can have more support from the government, such as they can provide VoIP service which only telecom service providers can do before.
In mainland China, Cable TV service are provided mainly by local companies. Each city, even each town has their own cable TV companies. Not like telecom service providers, there is not a vertical managing system them although they are managed by SARFT generally. But it is local government not SARFT who has stronger influence on these local cable TV service providers. Just because this, these small cable TV services have no advantages to compete with those national telecom service providers like China Telecom whose revenue is much higher than them.
During the past 20 years, SARFT has never given up to organize a national cable TV service provider. And they really organize several provincial cable TV service providers, such as Beijing Gehua Cable TV, Hunan Cable TV. They even build a national transmission network. This time, with the great support from central government, SARFT may finally have a national cable TV service provider. But without experience, without talented engineers, can they really compete with telecom service providers?
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