China moves to unify cable firms into one network

Wang Xiaojie, head of the technology department with the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT), has said the new company will focus on building a unified cable television network, setting up a common technology standard and helping to distribute content across different television stations.

The new company is expected to become a major force in promoting China's progress of three-network convergence, which aims to combine cable television, telecommunications and the Internet into one seamless network, SAPPRFT said.

Jiao Shengchen, deputy general manager of Hebei Cable Network, said it will not be an easy task for China Broadcasting Network to realize its goal.

"The company has to control major assets, or its voices will not be heard in guiding provincial partners," Jiao said.

It is vital for China Broadcasting Network to issue a unified technology standard to make everything work smoothly, he said.

Zeng Huiming, chief executive officer of SARFT.net, a portal site for news of the Chinese broadcasting industry, said the launch of China Broadcasting Network is just a beginning. People have to watch how the new company makes strategic plans, how it utilizes capital or conducts acquisitions, and how it pushes on with the three-network convergence, Zeng said.

China Broadcasting Network "is likely to first integrate cable television carriers in the central or western parts of China, as they are more short of money," he said. "Step by step, China Broadcasting Network can consolidate assets in those listed cable television companies."

According to SAPPRFT, China had 224 million cable television users by 2013, among which three quarters were digital cable television service subscribers. China is expected to add 25 million cable television users in the next three years.

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