CCBN 2009 Keynote Speech - Delivered by Mr. Zhang Haitao  
CCBN 2009 Keynote Speech
by
Zhang Haitao
March 20, 2009
 

Distinguished guests, dear friends and comrades£º
 
At the time when this year¡¯s China Content Broadcasting Network (CCBN) is to unveil its curtain, on behalf of the State Administration of Radio, Film and Television (SARFT) and Mr. Wang Taihua, I would like to take this opportunity to extend my congratulations on the opening of CCBN 2009 together with warm welcome to exhibitors home and abroad and friends of all walks of life.
 
This year marks the 16th anniversary of CCBN which has grown into a world-known broadcasting technology & equipment exhibition. Despite the current financial crisis across the globe, this year¡¯s CCBN covers the largest exhibition area in its 16 years history. Exhibitors are increased by 7.8% over last year. What¡¯s noteworthy is that domestic exhibitors increased by 14.6% over 2008. The enthusiasm is a strong indicator of the manufactures¡¯ confidence in the momentum of the development of China¡¯s broadcasting industry. On behalf of the Administration, please allow me to express our sincere gratitude to industry insiders home and abroad who have been sparing no efforts to support China¡¯s broadcasting development. We are looking forward to even closer cooperation with manufacturers, experts, and academics for the prosperity and advancement of China¡¯s broadcasting industry.
 
The current full-fledged new round of technology revolution, in particular, the advancement of digital and information technologies has significantly transformed the technical infrastructure of the broadcasting industry, which unleashed its productive forces and helps facilitate its development and brought about overall and fundamental evolutions to the landscape of the industry. Under the leadership of the CPC Central Committee, the State Council as well as the CPC Publicity Department and with concerted effort of nation-wide broadcasting, film and television community, China now boasts a large-scaled broadcasting network covering the largest number of population in the world with cable, terrestrial, satellite and information technologies. Equal priority has been placed on the development of both central and local, urban and rural, domestic and overseas networks which has dramatically boosted the communication capacity, coverage size and service quality which is suitable to China¡¯s social and economic development. Such improvements are demonstrated in the following aspects:
 
I. Remarkable progress has been made in public service which enables farmers to have better access to radio and television. The fundamental objective in the building of socialist culture is to meet the spiritual and cultural needs of the people, safeguard their basic cultural rights and interests and ensure their full access to advanced cultural fruits. The primary mandate and fundamental mission of broadcasting and television entities is to ensure that relevant policies and decisions are carried out smoothly, public service is provided in good quality and the basic cultural rights and interests of the public are fully guaranteed.
 
Since 1998, efforts have been made to extend the coverage of radio and TV to every village. Up till now, nearly 100 million people living in 217,000 ¡°coverage shadow¡± administrative villages and natural villages with over 50 households have gained access to radio and television services. During the 11th Five-Year Plan, there are two missions to be accomplished. One mission is to increase the access to radio and television services in 716,600 ¡°coverage shadow¡± natural villages which has more than 20 households. The central government has allocated 3.4 billion RMB for this purpose. On June 9, 2008, as the first Direct Broadcasting Satellite (DBS), Sinosat-9 was launched into space. The Administration led the effort to build up a DBS platform to ensure the access to radio and TV of every village in China. The platform broadcast 43 radio channels and 48 TV channels on both central and local levels. The public bidding for the first batch of 3,660,000 DBS receivers has been completed. Currently, 400,000 sets of facilities have been installed in rural households in Guangxi, Henan, Anhui, Hunan, Shaanxi, Inner Mongolia, Yunnan and Sichuan. The other mission is to provide the vast rural areas with radio and TV services via terrestrial coverage expansion, for which the central finance has allocated 3 billion RMB to renovate and maintain 6065 transmitters broadcasting programs of CCTV-1, CCTV¨C7 and China National Radio 1. Thus, the terrestrial coverage of CCTV-1, CCTV¨C7, and China National Radio 1 has risen to 82£¥,68£¥ and 84£¥ respectively, covering 1.07 billion, 890 million and 1.1 billion people which is two years ahead of the schedule set in the 11th Five-Year Plan. The project of expanding terrestrial coverage has reversed the declining trend of terrestrial coverage and laid foundations for the construction of radio & TV public service system so that the large number of rural population can enjoy free access to various radio and TV programs.
 
II. Radio & TV digitalization speed up, ushering in a new phase featuring the digitization of cable, terrestrial and station itself. Since the initiation in 2003, the coverage of digital cable television has kept expanding nationwide. The number of digital cable subscribers reached 970,000 in 2004, 3.97 million in 2005, 12.66 million in 2006, 26.86 million in 2007, and 45.28 million in 2008, increasing by 309%, 219%, 112% and 69% respectively over the previous years. 229 cities across China have had integral conversion into DTV. 106 of them have completed it. The citiesin Guangxi and Ningxia have all basically realized digitalization. In Beijing, Tianjin, and cities in Qinghai, Hainan, Guizhou and Jilin, the subscribers of cable digital TV accounts for 50%. The transformation of cable television network towards dual-way function has picked up speed. So far, over 24 million cable TV subscribers across the nation can enjoy two-day transmission capacity. 
Digitalization within radio and TV stations has also sped up with digitalization ratio of producing and broadcasting systems of radio and TV stations above provincial level topping 90%. Quite a few stations at provincial and city levels have completed the construction of integrated service network which serves as strong technical support for the transformation of the existing single-functional business model into a multi-service one. Last year, eight cities including Beijing gained access to terrestrial digital TV (including SD and HD),marking the official launch of the digitalization of terrestrial broadcasting and TV In the meantime, to promote the adoption of national terrestrial DTV standards, the Administration is beefing up efforts to make corresponding standard (nine have been issued) so as to promote the healthy and orderly development of terrestrial DTV in China.
 
III. Breakthrough has been achieved in the development of new media, with swift growth of online radio, IPTV and CMMB. A number of major domestic broadcasters, including CCTV, CNR and CRI are increasing their investment in the development of new media including online radio, IPTV and mobile TV. With rising click rate and growing influence among netizens, CCTV. com, CRI Online and CNR.cn have become well-known mainstream media networks across China which helped to expand the communication and include of radio and TV. What¡¯s noteworthy is the breakthrough China made in Mobile Multimedia Broadcasting (CMMB), a technology with Chinese IPR. So far, technological R&D have been accomplished, a standard system has been set up and industrial application has been realized. The system has provided service to the Beijing Olympic Games, undergone trial operation in large scale and tested its business operation. By doing so, China has embarked on a path of industrialization founded on homegrown innovation and national industry.
 
The industrial chain for CMMB has at a certain scale. Many companies have produced CMMB chips. Over 100 enterprises have manufactured more than 200 types of CMMB terminals. China¡¯s CMMB technologies shone during the 2008 Beijing Olympics Games. Its stable performance won accolade from home and abroad. So far, 157 cities across the country have opened CMMB service.
 
IV. The capacity for independent innovation has been greatly strengthened with the transition from follow-up research into independent research.
 
In line with the strive to build a innovation-oriented nation, China¡¯s radio and television cause has entered into a new era relying more on self-innovation for advancement of science and technology. With the joint efforts of scientists and industry insiders, we have developed core technologies with our own IPR, such as CMMB, new generation satellite transmission and digital film, and issued relevant technological standards. It marks the first time for China¡¯s radio, film and television department to have its own systematic technology standards with Chinese proprietorship. It¡¯s the result of the efforts to boost the broadcasting and television industry relying on homegrown innovation. Moreover, it constitutes a milestone in the transition from follow-suit research to independent research. The industry has becoming a major driving force in the national drive for independent innovation. In recent years, the implementation of key projects, such as the full access of radio and TV services in every village, the Tibet-Xinjiang project, countryside cinemas, and wireless coverage, has benefited the development of the country¡¯s electrical equipment industry. The digital transformation of cable TV, film production, station internal management, and CMMB technology, has promoted the nation¡¯s industrial development, contributing to the increase of domestic consumption and the steady growth of the economy. Home-grown equipment and technologies are playing a leading role in the transformation, further testifying the importance of self-innovation.
 
This year marks the 60th anniversary of the founding of the People¡¯s Republic of China. We are now standing at a new historical juncture, where digital technology and the internet are widely adopted, and efficiency and scale economy are much emphasized. In line with the guidance of the central government, China¡¯s radio, film and television industry is ready to innovate its production patterns, reform its systems and mechanisms and a new environment to foster the cultural progress. Moreover, the sector needs to constantly improve its capability to channel public opinions, transmit at home and overseas, consolidate its security guarantee ability, and upgrade its public service quality. It should also constantly improve its R&D ability to secure its long-term prosperity and contribute more to the country¡¯s economic development, social harmony and stability.
 
Now, I would like to focus my priority on the building of pubic broadcasting and television service system and the development of cable digital TV and CMMB.
 
I. Improve public radio and TV services with integrated planning and innovative technologies to enable people enjoy the basic culture rights to access radio and TV.
 
With digitalization in broadcasting industry running in depth, there is a transition in pubic broadcasting and TV service system from analogue towards digitalization. Integrated planning and innovative technological approaches are seen as an important means to upgrade public service in this field so as to enable more rural population access advanced scientific achievements and equal public service. Currently, to ensure that each and every village has access to broadcasting and television services, we mainly rely on direct broadcasting satellites as the basic means. In addition, terrestrial digital TV has been used to improve public services in this regard.
 
1.1 The project of extending radio & TV coverage to every village is to be accelerated.
 
Having been launched for ten years, the project now is facing new challenges. First, the coverage is wider. So far the project involving admin villages and natural villages composed of over 50 households only touched on 217,000 blind villages. But the project to expand the coverage to natural villages of over 20 households total 716,600 villages, which is a more than 3-fold increase.
 
Second, the construction is more difficult. Most of the natural villages with over 20 households are scattered in remote and poor areas with adverse geographical terrains. Either cable or radio technologies are not sufficient enough to address the difficulty. Therefore, the central government has decided to adopt direct-broadcasting satellite technology. 
 
Given the many advantages of direct broadcasting satellites, which include wide penetration, free from geological influence, extensive program channels, good signal quality, low construction, operation and maintenance cost, cheap receiver equipment and easy installation and use, it has become an effective means for the people of ¡°blind villages¡± to receive radio and TV programs, especially when we adopt our own channel coding technology standards. In addition, direct broadcasting satellite is easy to manage and can guarantee operation safety, as its receiver cannot be used to receive programs from other satellites. Direct broadcasting satellite is of great importance in meeting the urgent needs of people living in remote areas for broadcasting and television services, and in reducing regional disparity and urban-rural gaps. They are thus very popular among rural population.
 
The various localities shall follow the plan and speed up the coverage expansion project on one hand, and complete installation of the first batch of 3,660,000 DBS receivers in the first half of this year one the other. At the same time, they shall also make sure that funding from the central and local governments are in place, and to organize public bidding and procurement of other corresponding equipment. We are aiming to achieve these goals ahead of schedule. We need to be strict with law enforcement and strengthen local management and do our best to provide good service. For the administrative villages and natural villages with over 50 households, an integrated approach has been adopted in order to improve coverage via advanced and reliable technologies. And we have started to draw construction plans for villages with fewer than 20 households to ensure that everyone and every household have access to radio and TV programs.
 
Radio coverage is the basic means for radio & TV public service and is another major mission for the project of extending broadcasting coverage to every village. Currently, the project for the coverage of central programs has finished construction efforts. 19 provinces (autonomous regions and cities) have kicked off their construction of radio coverage project. They input 769 million RMB into the renovation of 1,933 transmitters. Moreover, a total of 521 million RMB has been allocated for the maintenance of the facilities.
 
This year, the Administration will conduct technical exam and holistic project exam to central program radio coverage project. It will map out exam methods and fund managing methods, strengthen supervision to ensure a better effect. It will also enhance supervision and exam over local radio coverage projects. Provinces, cities and towns need to press ahead with the projects at respective levels in accordance with the requirements set our in the Document No. 79¡²2006¡³issued by the General Office of the State Council.
 
1.2 Promote terrestrial digital TV and HDTV.
 
As a major part of broadcasting and television services, terrestrial digital TV can provide SD and HD TV programs so as to meet rising demand of the public.
 
To promote terrestrial digital TV, we should, firstly, stick to the principle of public service to guarantee the vast majority of people able to receive free programs of many channels; secondly, stick to the principle of uniform planning, construction, operation and management to guarantee healthy and orderly development of terrestrial DTV; thirdly, stick to analog digital synonization to guarantee the current coverage of ATV and DTV; fourthly, stick to the principle of economical efficacy to bring the resources of current wireless stations into better play and materialize stable transition from analog to digital in short time and with low cost; fifthly, be strict in management, exam and approval process and bring the illegal practice into justice so as to maintain the order of electric wave.
 
The promotion of ground digital television is a long-term process. Judging from international practice, it usually takes ten years or even longer to accomplish the transformation. At present, China has more than 2,500 radio or TV transmitters, over 18,000 TV transmitters and over 500 million TV sets are in use across the nation. It¡¯s an arduous task to digitalize them all. And it¡¯s necessary for governments of all levels to attach great importance and for relevant departments and the whole society to greatly support the cause. The country¡¯s radio and television departments need to prioritize the task in their agenda and press ahead with determination.
 
We kicked off terrestrial DTV last year. This year, we will put more efforts on promoting it on a larger scale. The plan is to provide this service to 100 cities including municipalities, provincial capitals and prefecture-level cities, and cities with independent budgetary status, etc and realize the synonization of SDTV and ATV and even HDTV in certain municipalities, provincial capitals and cities with independent budgetary status.
 
And here, I want to re-emphasize the importance of HDTV. HDTV is an important trend of television technology. It¡¯s also been regarded as one of the biggest highlights of DTV. Its development is of unique significance to increase domestic demand, boost the growth of relevant industries and improve our public service quality. The right time and conditions have conjoined for China to greatly promote its HDTV industry. This year, in line with the principle of encouraging development and coordinated growth, the Administration will accelerate the drafting of the overall plan of HDTV development and relevant polices and measures, focusing on channel composition, programming and transmission patterns based on the principle of ¡°encourage development and achieve balanced results¡±. 
 
Our major tasks are as followed. First, we need to strengthen the capability to produce and broadcast HDTV program, speed up the upgrading of current studios and production and broadcasting systems, quicken the building of HDTV program banks and talent pools, promote the transformation from individual HDTV program producing to station-wide system upgrading, as well as establish a media content platform compatible with various broadcasting formats, including standard definition and high definition, and various receiving terminals. Second, we encourage TV stations with appropriate conditions to broadcast their current programs in both standard definition and high definition formats and increase the number of their HD channels and programs.
 
Third, we need to integrate cable, wireless, satellites and other transmission patterns to make it more convenient for subscribers to receive HDTV programs. Fourth, we should waste no time in drafting copyrights protection policies for HDTV programs and optimizing the standards system for HDTV, in order to popularize HDTV sets and boost the development of the industry in China. Radio, film and television departments at all levels should take the cause as part of the drive to improve public service quality, attach great importance to the development of terrestrial DTV (HDTV), enhance communications and coordination to achieve the goal for this year.
 
II. Strengthen scientific and technological innovation, system innovation and service innovation, and adhere to the principle of ¡°putting people first and customer top-prioritized¡± in order to ensure sound development of cable digital television and satisfy the people¡¯s multi-aspect, diversified and personalized demand on spiritual and cultural information.
 
With the application of high technologies such as digital and networking technologies in cable TV, the cable TV operators in China will have to change from a provider of technical service to a provider of comprehensive service, striving to become an important supporting platform for three-network integration and modern service sector. Following the requirements in the Document No.¡²2008¡³1 issued by the State Council, and in the spirit of being responsible to the country, people and history, Broadcasting and television entities at all levels should enhance the sense of urgency, mission and responsibility for digitalization, and take digitalization as the most important work of nowadays and the near future. They should work out plans and take necessary measures to push forward digitalization. They should firmly adhere to the principle of ¡°putting people first and customer top-prioritized¡±, strengthen scientific and technological innovation, system innovation and service innovation, continuously adjust production process and optimize means of service, and earnestly improve the competitiveness of cable TV network.
 
1) Strengthen scientific and technological innovation to push cable TV network to develop towards the next generation.
 
Scientific and technological innovation is an inexhaustible momentum pushing the development of broadcast and television. Digital application, network development and dual-way function are the prerequisites and foundation for cable network to provide various businesses. In recent years, through scientific and technological innovation, cable TV operators have actively pushed forward integrated transformation towards digitalization, reform of dual-way network, and development of interactive and multifunctional businesses. Technological tests on cable digital TV were carried out in 2001, and pilot projects implemented starting in 2003. In 2004, an integrated transmission modality for cable TV digitalization was d, whereby China has embarked on the path of digital development with its unique acteristics, driving digitalization with informationization, while pushing forward informationization through digitalization. Since 2005, special guidance has been provided to qualified areas for dual-way network renovation. In the meantime, network was being transformed into dual-way so as to provide dual-way, interactive and multi-function services. In 2006, as pointed out in Planning for the Scientific and Technological Development of Broadcasting, Film and Television during the 11th Five-Year Plan, the next generation network based on digital television network should be constructed. In 2008, Document No.¡²2008¡³1 issued by the State Council provided in clear terms that efforts should be made to promote the coverage of digital television broadcasting with cable digital television as the starting point, step up the construction of information infrastructure including broad-band communication network, digital TV network and the next generation internet, and to press ahead with integration of the three networks. On Dec. 4, 2008, Mr. Wan Gang from the Ministry of Science and Technology and Mr. Wang Taihua from the State Administration of Radio, Film and Television signed the Cooperation Agreement on Independent Innovation for the National High-Performance Broad-band Information Network and the Next Generation of Chinese Broadcasting and Television Network, to initiate collaboration in the R& D and building of NGB in China, marking that China¡¯s NGB has entered a new stage of independent innovation by the state and industrial R&D and application.
 
There are three benefits in actively pushing forward the construction of next generation broadcasting and television network. First, existing broadband network can be utilized with no need of large sum investment to change cable television network structure and user access cable. As a result, a world¡¯s leading information infrastructure for the new generation can be constructed, overcoming the digital divide at low cost within a short time span and accelerating the popularization of high-performance broad-band information network in China. Second, traditional media can be renovated and emerging media be developed. Broadcasting and television network can be utilized to provide multi-function services including high-speed broadband and dual-way interaction. By doing so, the integration of three networks on a higher technological and service level will be achieved. Third, it can promote innovation in information technology, improve core competitiveness of Chinese high and new technology, and push forward the development of culture, information and national industries. The Administration and the Ministry of Science and Technology planned to construct pilot networks in key cities within three years, and to build next generation broadcasting and television network within the next ten years or so, that can provide the public with one-stop convenient services of high-definition television, digital video and audio programs, high-speed data plug-in and voice messages, featuring an integration of three networks. By doing so, television in every household will become a multimedia terminal. The next generation broadcasting and television network should satisfy every household¡¯s customized demand, and be safe and controllable so that the public can enjoy convenient, fast, high-quality and comprehensive service at low cost.
 
2) Strengthen system innovation to push cable TV network to develop in a way of promoting efficiency, economy of scale and industrialization.
 
Cable television network has dual natures. It is not only a matter of public welfare, but also an industrial undertaking. While meeting people¡¯s basic cultural needs, it is subject to the development laws of the industry and should be developed in a way of promoting efficiency, economy of scale and industrialization. With the progress in digital application, network development and dual-way function, the existing pattern of sparsely located network without interconnection can hardly be conducive to the development of productivity. System innovation must be expedited urgently. By means of shareholding reform, we should push forward the integration of network and promote joint development. 
 
In recent years, integration of cable TV network in different localities has made many new progresses. Network companies at provincial level have been set up in Guangxi, Jiangsu and Ningxia. Last year, taking into account its local realities, Jiangsu province acted upon the development trend of digitalization and needs of the market economy to network shareholding companies integrating provincial, urban and township efforts, which greatly promoted the development of digital cable TV throughout the province. The highlights of Jiangsu¡¯s endeavor are described as follows: first, interests among the province, cities and counties are addressed properly. Under the principle of maintaining the value of existing networks, sharing added value and interests and common development, and based on common interests, consultation is made on an equal footing, and cooperation conducted in good will. Administrative means are adopted and operation is subject to market forces. By doing so, the initiative of related parties has been generated, helping to a win-win scenario featuring common development within the province. Second, while promoting integration, efforts are made to accelerate the integrated transformation of existing network and transition towards dual-way function. Dual-way interaction and other services were promoted, and coverage expanded. With more emphasis on efficiency and economy of scale, the cost of digital transformation and operation has declined remarkably, making all parties involved truly feel the new changes and achievements brought by the network integration To promote network integration, the first and foremost prerequisite is to integrate thinking. The key is to adjust diverse interests with the underlining aim to promote network integration. Only by stimulating the enthusiasm of professional entities at different levels, and giving full scope to the advantages and overall strength of the network, can the network integration be successful, and can the broadcasting and television network develop by leaps and bounds.
 
3) Strengthen service innovation to push cable TV network to build an outstanding service brand.
At present, cable digital television is developing in a good trend throughout the country. Nevertheless, problems such as poor service, difficult operation and inconvenience still exist in certain areas. Users in those areas have not enjoyed the benefits and convenience brought by digitalization, which made them very unsatisfied at our service. The main reasons are the lack of good customer service, business development and service consciousness, and the fact that problems put forward by users are not solved in a timely manner. As a matter of fact, what are brought by digitalization are beyond technological changes. What¡¯s more important are the changes to the concept, method and content of service and the changes to system and mechanism, which requires to expedite in establishing a cable television service system that is conducive to the development of digitalization.
 
First, more emphasis should be put on services. With the progress in digitalization, cable television network operators need to shift major focus towards services. Compared with low-efficiency analogue TV services in the past, cable TV should reach every terminal and every program channel for every household. In this light, our service modalities, working modes and management patterns need to be adjusted to adapt to the changes. Under the principle of putting people first, we need to clarify service position, formulate service standards, clarify service process, and reinforce service management, so as to set up a good brand image of cable digital television. This year, the Administration gives top priority to improving service quality as one of the targets in digitalization. Efforts are made to accelerate the formulation of service quality standards and supervision management methods for cable television, identify basic services and standards, and to build up a quality control system for cable digital television services.
 
Second, service range should be expanded to meet new needs and expectations of the public.
Thanks to its advantages namely huge transmission capacity, low maintenance cost and high penetration, cable television network has unique advantages in transmitting public cultural information services to every household. Late last year, we conducted a project in Liaoning province to promote the sharing of cultural information resources. The technology of Push VOD was adopted in cable television network, and information pushed into the television top box with a 160 G disk. By doing so, subscribers can freely choose whatever they want in the box. A box with a 160 G disk can store 5,000,000 letters and over 70-hour video programs. It can automatically itself on a constant basis. Given the current single-way network, interactive Video on Demand (VOD) is easily accessible, fully controllable and highly economical. It can meet diverse needs, especially taking into account the national realities. It has become an effective way to provide each and every household with cultural information services within a short time span and at relatively low cost.
 
It is of great importance to recognize that while pressing ahead with cable television digitalization in cities, we need to give equal importance to the following two aspects. First, efforts should be made to speed up dual-way renovation and strengthen service localization of cable networks, and continue to provide multi-aspect, tailored service. Second, for places not eligible for such renovation, technologies such as Push VOD and PVR can be applied to provide quasi-interactive VOD via television top box with disk. All localities should take into full account the new demand of the people to various services, including E-government, social education, daily life information, cultural and entertainment information, TV shopping and bank payment. We should continuously enrich the content of TV programs and information service so as to make cable digital television really become a handy tool of entertainment and information in our people¡¯s daily life, and make digitalization benefit each and every household.
 
III. Efforts should be made to bring about an effective shift in the public conception, to cooperate for a win-win progress, and to develop mobile multimedia broadcast and television in order to meet new audio-visual demand of the public.
 
With social and economic development and the rise of people¡¯s living standards, China has become the world¡¯s largest mobile market with the biggest number of mobile terminals. The number of mobile phone users has currently exceeded 600 million. The ownership of mobile terminals such as MP4 and laptop are huge with mobile access exceeding 100 billion person-times on a yearly basis. There emerges an increasingly strong desire among the public for easy and ready access to television services. Since 2002, the Administration has organized research institutes and enterprises to develop the key technology for China Mobile Multimedia Broadcasting (CMMB), forming a standard system with proprietary intellectual property rights. Scaled technological tests have been conducted, and end-to-end equipment industry chain has been realized. Great success was achieved in serving the Olympic Games, unprecedented in providing broadcasting and television service to mobile users.
 
Nowadays, the pivotal work of mobile multimedia broadcast and television is to push forward industrialized operation and sustainable development. We should fully aware of the urgency and hardship in pushing forward CMMB¡¯s industrialized operation. Only by industrialized operation, can sustainable development be realized. As a new technology, new media and new industry with great potential, CMMB is an important component of broadcast and television, as well as an important measure to satisfy the demand by mobile users on watching TV at any location and at anytime. Establishing a unified nationwide CMMB operation system is a rare opportunity for driving the overall development of broadcast and television entities across the country and for creating a pioneering enterprise. It is also a severe test to our broadcast and television system in forming a cohesive force and creating innovative system and mechanism. Energetically developing mobile multimedia broadcast and television is of great importance to constructing and perfecting modern broadcast and television communication system, activating and cultivating a market for cultural information consumption, and promoting the development of cultural information industry and national industry. Our broadcast and television system should firmly establish the concept of ¡°operating as a whole across the country¡±, giving the fullest scope of the systematic advantage and overall power of the broadcast and television system, and of the scale advantage of a unified market across the country. In addition, we should also give the fullest scope of the enthusiasm of broadcast and television departments at all levels and other relevant departments such as telecom departments so that we could all cooperate with each other for mutual benefit and development, and jointly push CMMB to the public.
 
To promote the development of mobile multimedia broadcast and television, we need to do a good job in the following four aspects: First, we need to innovative system and mechanism. We should follow a unified standard and meet the requirement of nationwide roaming, and develop in a way of promoting efficiency, economy of scale and industrialization. Second, we need to make full use of the existing resources of broadcast and television entities and give full scope to the enthusiasm and initiative of broadcast and television departments at all levels to form a cohesive force and a pattern of unified operation throughout the country. Third, we need to set up a qualified entity for running in the market, work out scientific standards, manage it strictly, and stimulate its vigor, in accordance with the requirements of modern enterprise regulations and modern property right regulations. Last, we need to give full scope to the advantages of all parties in the industry chain, and be open to cooperation, so as to jointly push forward the development of mobile multimedia broadcast and television industry. Efforts will be made in the following five areas this year.
 
3.1 Build up and improve main operational bodies.
 
CMMB is China¡¯s first major project that is constructed and operated in an integrated manner with unified standards and planning in the broadcasting industry. So far, a three-tier structure encompassing a mother company, subsidiaries and branches has been set up. To be specific, the mother company at the central level is jointly funded by entities under the direct leadership of the Administration. Subsidiaries at the provincial level are set up jointly by the mother company and radio and TV agencies at the provincial level. Branches of provincial companies are set up at the prefecture and city level. The mother company was established last year. Agreements have been signed among provincial operational bodies in 10 provinces (autonomous region) and cities including Sichuan, Shandong, Henan, Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Yunnan and Shanghai. More provincial operating bodies will sign agreements during the exhibition. Shanghai subsidiary has kicked off the commercial running of CMMB. This year is to see the setup of provincial corporation nationwide together with the efforts to establish city-level operators so as to shape an integrated operational framework in the initial phase across the country.
 
3.2 Quicken the pace to expand coverage network.
 
We opened signals in 37 cities including municipalities, provincial capitals, cities with independent budgetary status and Olympic cities ahead of the Olympics last year. Single Frequency Network was installed in 18 cities including Beijing, Shanghai, Chongqing, Guangzhou and Shenzhen. After the Olympics, network construction in prefecture-level cities kicked off. So far, 157 cities across China have had access to CMMB signals. Our aim is to expand the coverage to 337 prefecture-level cities within this year and optimize the existing networks.
 
3.3 Develop more services in a quick manner.
 
Efforts will be made to set up a multi-service system for CMMB, quicken the integration of good radio and TV programs suitable for mobile populations and satisfy their needs to receive programs with low cost. In the meantime, with various means and in an integrated manner, we need to offer such multi-media data broadcasting services features strong time-limit, full content and various genres as newspaper, magazine, Push VOD, E-service guidance, emergency broadcasting, stock market information and transport guidance so as to attract and develop subscribers.
 
3.4 Build up operational supporting system.
 
An integrated receiver conditional access system and operational supporting system needs to be built up at an earlier date. Efforts should be made to build up a nation-wide service network, a unified call center, operational outlets of various forms and business empowering models of various kinds to promote the popularity of CMMB terminals.
 
3.5 Strengthen the cooperation among the links in the industrial chain.
 
CMMB is based on independent innovation and national industry. The coordination and cooperation among upstream and downstream companies along the industrial chain is key to the success of it.
 
Under the principle of openness, cooperation, sharing and win-win, efforts should be made to coordinate various players within the industry, with special focus on stimulating the initiative of content provider, telecommunication operator, equipment and terminal manufacturer and service provider for operation support. We shall pool the advantages of broadcasting departments in programs and networks with the edges of telecommunication departments in subscriber management so as to an integrated pattern featuring interest and risk sharing and common development for the purpose of propelling CMMB to develop in a fast and good manner.
 
Distinguished guests, dear friends,
 
This year marks the 60th anniversary of the founding of P.R.C. At the new historical starting point, the boom of China¡¯s broadcasting industry can¡¯t be materialized without the support and help from the equipment community and all the other social sectors and in particular the unremitting efforts by the nation-wide broadcasting community. Under the guidance of Deng Xiaoping Theory and the Thoughts of Three Represents, we need to conscientiously apply the Scientific Outlook on Development, and make joint and diligent efforts to press ahead with the development of this industry so as to make our part of contributions to the building of a well-off society in an all-round way!
 
To conclude, I wish the exhibition a great success!
 
Thank you!