Chinese government will release new police to permit conditional open-up to each other between telecom and broadcast industries. Telecom will open in the term of internet access while broadcast will be in the content.

 

On 14th June, Jiangsu Communication Administration take the first in issuing the ICP and ISP licenses to Jiangsu Broadcasting Television Network Co.Ltd for the internet access services. The action attracted wide attention of operators and was regarded as an advanced trial of the new policy.

 

Some experts said that Jiangsu was not the first province to issue the ICP licenses to broadcasters, Shanxi province and Chongqing city did same before. It is said that although there are not official permit, Gehua, the leading CATV operator in Beijing, and other domestic operators have started the system reconstruction for the broadband access in name of some small companies, they hold shares in these small companies.

 

In May,2009, the National Development and Reform Commission issued a new policy document that indicated the guideline of pushing forwards the interactive access between the Telecom and Broadcasting enterprises by currying out relevant policies and making substantive progress.

Under the direction, many regions such as Beijing, Guangdong province, Xingjiang autonomous region accelerate the progress of the Three Networking Convergence.

 

On May, the relevant authority of Beijing indicated that Beijing will set up trials in rural areas, IPTV and mobile phone TV will enter into rural areas.

 

On June, China Mobile Group, Xinjiang company singed cooperation agreement with local broadcasting authorities and enterprises to develop the broadband market by combining the household telecom products with Cable TV network. At same time, Guangdong provincial government issued policy document and stated that Guangdong will construct the HD digital interactive network in order to take a lead in realizing the three networks convergence.

 

Some experts assert that the interactive access will intensify the competition of domestic broadband market. The accession of broadcast network will enable users to get on internet through CATV circuit at home. The broadcast network has advantages in the terms of price and bandwidth if it uses CABLE Modem to connect internet. However, the bandwidth of the current domestic fix network remains to be extended. In the aspect of price, the ge fee for domestic broadband service is high compare to the foreign countries. The rate for each mega is number times of that in foreign countries. The development of broadband industry needs competition, the speed of the broadband transmission can't be increased without impetus. Therefore, the interactive accession of the Three Network Convergence will inevitably drive the ge fee for broadband decreased and the speed of transmission raised, that will push forwards the popularization of broadband in China and offer the better services to users.

 

Nevertheless, the traditional fix broadband network has its advantages as well. Some experts say that the three Network Convergence won't effect Telecom too much. Recently, Shanghai Media Group (SMG) and other broadcasting enterprises have been working on the connection of broadcast network to internet, According to the statistics, in 2007, the users of the broadband broadcasting network took 22% of the total broadband users in Shanghai. However, the recent statistic shows that the number of the SMG's internet users is getting down gradually. Experts analyst that at the early stage of the popularization for the broadcasting broadband network, the users of the broadcasting broadband network will be tremendously increased due to the extensive promotion and its advantages such as the superiority of price and so forth.