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China's SARFT, MIIT Submit Network Convergence Trial Lists

Economic Observer, 4/12/10

Two lists of pilot cities for China's network convergence - one composed by the State Administration of Radio, Film and Television (SARFT) and the other by China's three major telecom operators (under leadership of the Ministry of Industry and Information Technology (MIIT)) - have been submitted to the State Council's network convergence leadership group.

Recently, a member of the leadership group said that SARFT's list was weighted toward cities where cable network integration and bi-directional network conversion is already relatively far along, which will speed preparations. Requirements outlined in the plan from the telecom operators are considerably different.

According to informed sources, the preliminary plan produced by the Ministry of Industry and Information Technology (MIIT) makes China Telecom (NYSE: CHA; 0728.HK) responsible for IPTV operations in southern China, China Unicom (NYSE: CHU; 0762.HK; 600050.SH) responsible for IPTV operations in northern China, and China Mobile (NYSE: CHL; 0941.HK) responsible for mobile television.

"Nobody knows exactly what cities are on the lists," said Luo Xiaobu, vice president of Beijing-based cable TV operator Gehua (600037.SH).

According to SARFT's requirements, all provincial networks must complete network integration before the end of 2010. Currently, only 13 provinces and municipalities have completed separation of station and network operators.

Keywords: Luo Xiaobu China Telecom China Mobile China Unicom convergence IPTV conversion television MIIT Gehua SARFT State Council CHL 0728.HK 0762.HK 0941.HK 600037.SH 600050.SH CHA CHU mobile TV

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