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January 14, 2010

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National communication unity moves step closer

CHINA will speed up the unification of its Internet, telecommunications and radio and television networks.

China has the technology for a further step toward unification and its positive market flow-ons, according to a State Council executive meeting chaired by Premier Wen Jiabao.

Communication and resource sharing among the three networks would obviously be enhanced, it said, to meet public demand and serve China's economy as a new growth point.

According to a task set by the State Council for the next phase, China will carry out a test run for the merger by the end of 2012, with full completion by 2015.

The test run will be carried out among telecommunications and radio-television enterprises, while cable television networks nationwide will be upgraded into a digital two-way linkage.

Broadband will cover urban areas and expand its coverage to rural areas under the State Council plan.

State authorities will promote the further development of new services based on the merged networks, including mobile multimedia radio-TV, cell-phone TV and Internet protocol TV. A national standard for those applications will be introduced.

New preferential policies would be issued to support the innovation and financial and taxation preferences introduced for its rural application and expansion, the Cabinet said.

Shanghai's Internet-based TV service users have surpassed 1 million, which propelled the city to No. 1 in the world in this area.

China Telecom's Shanghai branch and Shanghai Media Group, local IPTV operators, will launch nine high-definition channels through IPTV and provide HD IPTV services in five-star hotels in Shanghai this year.

SMG provides content for the services, and Shanghai Telecom operates the network.

Compared with traditional TV, IPTV provides more interactive and customized services. These include live television, and content (especially video) on demand.

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