Source: C114 China Communications Network
Following the rising rumors regarding the fifth telecommunications restructuring, speculation about the establishment of the National Radio and Television Network Company has resurfaced. This time, the focus is on China Mobile potentially acquiring a stake in the National Radio and Television Network Company, and ultimately, the two companies may merge.
The National Radio and Television Network Company is positioning itself similarly to telecommunications operators.
The attention to this matter was sparked by the recent release of the "383" reform plan, which includes discussions on "telecommunications restructuring." Specifically, it states, "Accelerate mutual openness of services and substantially promote the integration of the three networks. Achieve mutual openness and entry among the main businesses of telecommunications, the internet, and broadcasting. Integrate fragmented regulatory functions and establish a unified regulatory system. Restructure telecommunications enterprises again to form multiple telecommunications operators with comparable competitive strength."
This has sparked heated discussions and speculation among market participants. Hong Kong media reported that the telecommunications industry restructuring mentioned in the "383" reform plan is related to the broadcasting and telecommunications network company.
According to the "Several Opinions on Promoting Information Consumption to Expand Domestic Demand" issued by the State Council on August 14, it is necessary to accelerate the mutual entry of telecommunications and broadcasting services, gradually promoting it nationwide in the second half of 2013 based on pilot projects. The State Grid Corporation has also been explicitly named to expedite the establishment and promote the co-construction and sharing of infrastructure between telecommunications networks and broadcasting networks.
It is reported that the national-level broadcasting and television network company is rumored to be named "China Broadcasting Television Network Co., Ltd." According to earlier designs, "it is positioned as a large cultural enterprise, which must comply with the laws of industrial economics, as well as align with our country's cultural media management policies and regulations, while achieving unified planning, unified construction, unified operation, and unified management."
However, based on the current situation, it is increasingly resembling the role of a telecommunications operator, with little connection to cultural media. Otherwise, it would not be able to participate in the telecommunications industry restructuring mentioned in the "383" reform plan, and the National Radio and Television Network Company will remain within the broadcasting system.
The entangled relationship with China Mobile.
As early as the beginning of 2010, the State Council issued the "Overall Plan for Promoting the Integration of Three Networks," which clearly stated during the pilot phase (2010-2012) to "accelerate the cultivation of market entities, establish a national-level cable television network company, and initially form an appropriately competitive industrial structure."
However, given the strength of the National Radio and Television Network Company, it cannot compete on equal footing with the three major telecom operators. Therefore, since March 2012, there have been continuous reports that China Mobile will invest in the National Radio and Television Network Company. The latest rumors reiterate this point, suggesting that China Mobile lacks resources for fixed-line home access, which could complement the National Radio and Television Network Company perfectly.
As a result, industry insiders believe that even if the National Radio and Television Network Company is established, it will not operate independently forever. In the future, it may merge with China Mobile. If telecommunications and broadcasting are completely opened up in both directions, the National Radio and Television Network Company will find it difficult to withstand the market offensive from the three major operators. A partnership with a large telecom operator is a trend; the only question is how to merge with China Mobile, which has sparked countless speculations.
The broadcasting cable network plans to strengthen nationwide interconnectivity.
However, without a restructuring, the broadcasting plan to launch the "136 Project" is characterized by its strong broadcasting features and is entirely based on the industry resource advantages of broadcasting itself.
One of the centers refers to the establishment of a national cable television network content distribution and exchange center. The three systems include the national cable television network operation support system, the national cable television network content management system, and the national cable television backbone transmission and exchange system. The six major bases cover broadcasting and television content integration base, cultural resource integration base, digital television publication integration base, digital television interactive education content integration base, and comprehensive information service base.
In March of this year, a relevant official from the National Radio and Television Administration stated that the National Radio and Television Network Company will take the lead in building a nationwide cable network interconnectivity platform to achieve interconnectivity of networks, technologies, services, operations, and management across different regions. At the same time, it will comprehensively enhance the network's large-scale content aggregation capability, develop various emerging businesses, and accelerate the research and development of new services such as high-definition interactivity, video on demand, and information services.