BEIJING, March 16 Asia Pulse - Premier Wen Jiabao has stressed the need to integrate China's telecommunications, cable television, and Internet networks (hereinafter referred to as network integration) in his report to China's annual parliamentary session that.
China's State Council, or the cabinet, said in mid-January that it would accelerate the integration of the telecom, radio, and television industries so as to interlink the three. Qualified radio and television enterprises would thereby be allowed to conduct value-added telecom businesses, some basic telecom business, and Internet business, while eligible telecom companies were permitted to partially engage in the production and transmission of radio and television programs.
On March 5, Wen said in the government work report delivered to annual session of China's National People's Congress (NPC) that China will foster strategically important emerging industries and increase investment and policy support for them, vigorously develop information networks, and make substantial progress in network integration.
For ordinary consumers, network integration will be seen through the integration of mobile phone screens, television screens, and computer screens, said Zeng Jianqiu, a professor at Beijing University of Posts and Telecommunications. The three devices' functions will be accessible through each other once network integration is complete.
The network integration is expected to intensify industrial competition, as telecom, radio and television operators will provide differentiated services, and thereby lower charges and further benefit consumers.
Industrial expert Fu Liao said the telecom and radio and television industry wanted to extend feelers into the other sectors, rather than open up their own markets. Each of the two sectors possesses complete industrial chains, including networks, terminal devices, business models, and content production. But the three-network integration will unavoidably break up the original structure and form a new industrial landscape.
The network integration may generate four operators, including the three Chinese full-service-integrated telecom operators and one cable TV operator. According to Zeng, the integration expects to see cooperation, as the telecom industry and the radio and television industry are both predominant, and expanding the market is of the greatest importance.
Li Dongsheng, board chairman of Chinese electronics manufacturer TCL Corp. (SSZ:000100) and an NPC deputy, suggested that authorities ensure and guide the network integration policy's implementation via a united supervision frame and supportive regulations.
According to Liao Renbin, general manager of China Telecom's (SEHK:0728) Hunan branch and an NPC deputy, the authorities should introduce network integration into the legal system as soon as possible, so as to provide it with a legal foundation.
Since China has yet to pass its new Telecom Law, Liao proposed China include three-network integration in the law, clarify policy limits, the operating body, operating content, and management mode. This will offer practical legal protection for the integration. Meanwhile, the law would balance power relationships between the telecom and broadcasting sectors, and boost the information industry's healthy development.
The networks will be integrated over several phases. In the pilot phase (2010-2012) the major task will be boosting the two-way participation of the broadcast and telecom industries. Qualified radio and television enterprises will be allowed to conduct value-added telecom businesses, some basic telecom business, and Internet business. Further, eligible telecom companies will be permitted to partially engage in the production and transmission of radio and television programs.
Through the efforts, China will establish national cable television network companies and formulate a basic competitive structure. Relevant working mechanisms will be formed and policies to ensure that the integration is carried out smoothly.
During the promotional phase (2013-2015), experience accumulated during the pilot operation will be disseminated. Further, the three-network capacities for broadband and digital television should increase; the industrial competitive structure will form; a new mechanism compliant with network integration will be constituted, and related rules and laws issued. Lastly, the supervision and management mechanism for ensuring the network's ability to safeguard its information will be completed.
Theoretically, if the telecom and the radio and television sectors cooperate well, costs stemming from infrastructure construction and operation will be lowered, which would intensify industrial competition and benefit consumers.
Besides the radio, television, and telecom industries, household appliance manufacturers also look forward to gaining share in network integration and boost the industry's further development, as long as they possess related technologies compliant with the three network integration, and are capable of offering competitive and attractive products.
(XIC) rw 16-03 1045
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