China showcased its determination on Wednesday to consolidate its hundreds of cable television networks by establishing a national network company.

China Broadcasting Network Ltd, a newly launched firm with a registered capital of 4.5 billion yuan ($728.48 million), will build a unified cable network in China. It is also expected to become the nation's fourth-largest network operator, following China Mobile Ltd, China Unicom (Hong Kong) Ltd and China Telecom Corp Ltd.

There are many cable television networks in China, all run by different operators at various administrative levels. Though the Chinese government has vowed to cut the number of cable networks since 2010, analysts said the actual number of cable television carriers may be in the "hundreds".

It was a long journey since the State Council, China's cabinet, proposed to establish a national cable television company as early as the start of 2010. However, because of a delayed plan approval, together with some capital and human resource issues, it was not until this year that all the problems were settled.

China Broadcasting Network will run businesses in cable network construction, operation and maintenance, as well as some related consulting and technology research and development work. Zhao Jingchun, former bureau chief of Henan Administration of Press, Publication, Radio, Film and Television, is to be chairman.

Wang Xiaojie, head of the technology department with the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT), has said the new company will focus on building a unified cable television network, setting up a common technology standard and helping to distribute content across different television stations.

The new company is expected to become a major force in promoting China's progress of three-network convergence, which aims to combine cable television, telecommunications and the Internet into one seamless network, SAPPRFT said.

Jiao Shengchen, deputy general manager of Hebei Cable Network, said it will not be an easy task for China Broadcasting Network to realize its goal.

"The company has to control major assets, or its voices will not be heard in guiding provincial partners," Jiao said.

It is vital for China Broadcasting Network to issue a unified technology standard to make everything work smoothly, he said.

Zeng Huiming, chief executive officer of SARFT.net, a portal site for news of the Chinese broadcasting industry, said the launch of China Broadcasting Network is just a beginning. People have to watch how the new company makes strategic plans, how it utilizes capital or conducts acquisitions, and how it pushes on with the three-network convergence, Zeng said.

China Broadcasting Network "is likely to first integrate cable television carriers in the central or western parts of China, as they are more short of money," he said. "Step by step, China Broadcasting Network can consolidate assets in those listed cable television companies."

According to SAPPRFT, China had 224 million cable television users by 2013, among which three quarters were digital cable television service subscribers. China is expected to add 25 million cable television users in the next three years.

shenjingting@chinadaily.com.cn

(China Daily USA 05/29/2014 page16)