Operating

China Broadcasting Network joins in competition with China's 3 major operators

Updated:2016/5/12 10:19

MIIT issued a telecom service license to the state-owned China Broadcasting Network Ltd. (CBN) on May 5th, making it the country's fourth telecom operator.

The move is a monumental political breakthrough in "three-network convergence", a state-advocated project aimed at merging telecom, television and Internet services into a single network, and it will promote the development of broadband market.

CBN faces three big problems

To rival with China's three major operators, CBN should solve three following problems.

The three giants own networks of world-class maturity which are well ahead of CBN. The investment ability of CBN is by no means comparable to that of the three giants.

With restructuring of the three major operators, the monopoly has been broken in China's telecom market and they have developed the ability of integrated unified operation while it is a long way to constructing "a nationwide network" and achieving interconnection for CBN which was founded 2 years ago.

After more than a decade of market competition, the three giants far surpass CBN in network capacity, network maintenance, talent pool, technology innovation and business operation. CBN has no significant differentiated advantages in the content level.

Therefore, CBN has almost no impact on the current competition.

CBN can take advantage of the rural market

CBN's edges over the three giants lies in the broadcast network covering the whole country including remote districts as well as channels and brand precipitation in the rural market.

After years of bidirectional transformation of the fixed network, CBN has the basis for providing broadband services in most rural areas in China and has added quite a few subscribers in the past few years.

 Source:C114
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