How to break through the era of three-network integration and IPTV is coming

The State Council is accelerating the "three-network integration" and the future development path is clear. From 2010 to 2012, the focus will be on the two-way pilot of radio, television and telecommunications, and from 2013 to 2015, it will enter the stage of comprehensive development. However, from the "Ninth Five-Year Plan", "Tenth Five-Year Plan" to the "Eleventh Five-Year Plan", the three-network integration has been called for more than ten years but has not achieved results. The three-network integration not only requires the gradual loosening of the binding of systems and policies, but also involves many aspects such as business integration, network integration and market integration.

Under various challenges, as one of the breakthroughs of the three-network integration, how can IPTV get rid of the current development difficulties and open up a new situation of cooperation and win-win between radio, television and telecommunications?

The license issue is still an important obstacle to the three-network integration in China, especially for IPTV. Because IPTV's business has a great conflict with the market of local radio and television cable networks, China Telecom has repeatedly encountered difficulties in promoting it nationwide. At present, the best developed region in China is Shanghai, where the license operator Shanghai Media Group (SMG) provides IPTV content and provides services through China Telecom's network. China Telecom pays 15 yuan per household per month to BesTV, a subsidiary of Shanghai Media Group. Proper distribution of benefits is the fundamental reason for the smooth cooperation between the two parties.

Shanghai has become the world's largest city with a local IPTV network and a user scale of over one million. However, it is difficult to replicate Shanghai's model across the country. The main reason is the limited number of licenses. At present, the radio and television authorities have only issued 5 IPTV licenses in the country, and the departments with conflicts of interest in IPTV are mainly local radio and television systems. The five major license operators will also be dissatisfied when operating IPTV services in other regions. Therefore, can radio and television consider issuing IPTV licenses to provincial radio and television groups under the background of provincial network integration, and let the provincial networks cooperate with China Telecom to develop IPTV, so that the conflict of interests will no longer be constrained by licenses.

From the perspective of the system, the scope of license issuance should be relaxed, but from the perspective of actual operation, it is a content dilemma. The main reason why the radio and television did not issue "licenses" to the three basic operators, China Mobile, China Telecom and China Unicom, is the control of the radio and television system over the broadcast control platform. In fact, the radio

and television authorities have opened the door to the Internet's broadcast control platform. At present, a total of 247 Internet audio-visual program licenses have been issued, and telecom value-added operators including Sina and Sohu have also obtained licenses. However, the transfer from the Internet to TV terminals is a problem. Except for the five radio and television legions, the radio and television is unwilling to promote content openness. This again involves the issue of terminal integration. However, the integration of terminals is very important in the process of promoting the integration of the three networks. Due to the wide scope of Internet license issuance, it has also led to the enrichment of Internet audio-visual content. In many aspects such as the situation and themes, its capacity is far greater than that of TV programs. This is also one of the reasons why video websites gradually plunder TV users. If the operating market with TV terminals as the distribution channel does not expand more exciting programs, then the market share of both local cable networks and IPTV operators will continue to be squeezed.

The integration of the three networks will make the radio and television and telecommunications move from competition to competition and cooperation. IPTV is the beginning of a competitive and cooperative relationship. If the license problem is solved, the radio and television industry will take advantage of its content resources, and the telecommunications industry will take advantage of the value of its network infrastructure resources. The breakthrough in IPTV business will surely lead to a new wave of substantial progress in the integration of the three networks.



The integration of the three networks is leaning towards radio and television in preparation for full business competition.