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China’s fourth telecoms player

China's Ministry of Industry and Information (MIIT) has granted a telecoms licence to China Broadcasting Network (CBN), creating a fourth player, but the move is unlikely to speed up broadcasting-telecoms network convergence in the country, reports Mobile World Live. "The licensing of CBN, which was established in 2014 by the Chinese broadcasting regulator to consolidate the country's fragmented cable TV industry, is unlikely to have a significant impact on the three telecoms operators, Fitch Ratings argued. Cable TV operators like CBN have been providing broadband services, but lack the capital and scale to compete with their telecoms counterparts, it said." CBN will not enter the mobile market anytime soon as its telecoms licence only covers telecoms infrastructure and domestic internet data transmission services. CBN holds 700 MHz spectrum, which can be redeployed for 4G use, "but even the rollout of a basic 4G network would take massive capital as well as time that would leave it far behind its competitors". Granting CBN a telecoms licence advances the State Council's 'Three-network convergence promotion plan' issued last September. "The plan aims to speed up the full convergence of telecoms, broadcasting and internet networks. China has been running a pilot programme in 54 major cities since 2010 that allowed telecoms operators and broadcasters to venture into the other's territory. However, progress has been slow due to a lack of capital in the cable TV industry and its fragmented industry structure, Fitch said." Read More

  • Tuesday, 24 May 2016

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