Network convergence in China: Government policy and market effects

The Chinese government has actively been pushing for the convergence of the country's three big networks - the Internet, telecom networks, and TV broadcasting networks - via various measures, most notably through the Triple Network Convergence Plan it laid out early in 2010. While the Triple Network Convergence Plan reiterates many government policies set out previously, one area that is expected to have significant effects on the market is the government's step to grant permission for TV broadcasting firms and telecom carriers to enter and do business in each other's realms.

China's State Council has listed accelerated triple network convergence as an important policy in 2010 and formulated a timetable and key milestones for such implementation. Local scholars estimate that triple network convergence will induce investment and consumption to the tune of 700 billion yuan (about US$103 billion), leading to widespread concern over the policy's effect on the development of related industries and various parties. In addition to its extensive coverage, China's Triple Network Convergence Plan also involves political entanglement, veiling its nature and importance.

This Digitimes Research Special Report examines China's Triple Network Convergence Plan from a macro and micro point of view. In addition to outlining triple network convergence details, Digitimes Research analyzes the effects the promoted policies will have on players in China's telecom and broadcast industries. The report also highlight the business opportunities and challenges triple network convergence will have on the development of services such as broadband, IPTV, connected TV, mobile TV, physical network infrastructure, among other areas.