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1st LD-Writethru: CBN becomes China's fourth telecom operator

Xinhua, May 5, 2016 Adjust font size:

The state-owned China Broadcasting Network Ltd. (CBN) secured a telecommunications business license from Chinese authorities on Thursday, making it the country's fourth telecom operator.

CBN and its subsidiary, China Cable Television Network Co., Ltd., have been authorized to provide domestic Internet data transmission and telecom infrastructure services, the Ministry of Industry and Information Technology (MIIT) said on its website.

With the authorization, CBN, a builder and operator of China's cable TV network, officially joined the ranks of the country's telecom operators, which already include China Mobile, China Unicom and China Telecom.

The move was a step to increase competition and promote the "three-network convergence," a state-advocated project aimed at merging telecom, television and Internet services into a single network, the MIIT said.

A State Council document released last year drew plans to allow radio and television stations to operate phone and Internet services, and for telecom companies to produce radio and television programs.

China hopes the project can help upgrade consumption, overhaul industrial structure and improve people's livelihood.

The project will benefit Chinese consumers, as telecom and cable fees are expected to drop and the variety of services will likely increase, said Zeng Jianqiu, a professor at Beijing University of Posts and Telecommunications.

Zeng believes Thursday's move will help break the current three-carrier hold on the telecom sector in the long term.

With the license granted, CBN can offer fixed broadband services and build, rent or sell telecom infrastructure, but it will not be eligible to operate phone call services right away, said Zeng.

There is a good chance CBN will be allowed to provide mobile telecom services in the future, but only after technical and regulatory preparations are completed, he said.

Established in 2014, CBN has registered capital of 4.5 billion yuan (692 million U.S. dollars). Endi