NEW USITO Brief: Three Network Convergence in China - 2013 08 26

In January 2010, the PRC State Council initiated a program called “Three-Network Convergence” (TNC), defined as the integration of China’s telecommunications, cable TV and Internet networks, as well as related services. Three years later, the program has completed its first phase, including an initial pilot program in 12 cities and secondary pilot program in 42 cities. This year the program expands nationally.

However, some serious challenges remain for the expansion phase in 2013-2015: the newly founded National Cable Operator will need time to consolidate the fragmented cable market; the regulatory system is still divided between the Ministry of Industry and Information Technology (MIIT), regulator of China’s telecommunications and Internet Service Providers (ISPs), and the newly formed broadcast and media regulator, the General Administration of Press and Publication, Radio, Film, and Television (GAPPRFT).

This brief provides a review of the two TNC pilots, an update on the foundation of the National Cable Operator, and the outlook for the regulatory system and TNC initiative in China.