CBN is likely to enter the telecom business but will not shock the current carriers and change the competition situation in domestic market in the short term.(Photo/China Daily)
The Ministry of Industry and Information Technology is considering issuing a telecom license to the State-owned China Broadcasting Network Ltd, which, if approved, will make it the nation's fourth telecom operator.
The ministry said on its official Weibo account on Thursday that it had received the application for a basic telecom business license from CBN on March 7. The basic license is for a domestic internet data transmission business and telecommunication infrastructure service.
The ministry said it is now dealing with relevant legal procedures. If approved, CBN will become the nation's fourth telecom operator after China Mobile Communications Corp, China United Network Communications Group Co Ltd and China Telecommunications Corp.
CBN was established in 2014 with registered capital of 4.5 billion yuan.
It operates businesses in cable network construction, operation and maintenance, acting as a major force to promote the nation's progress in three-network convergence, which aims to combine cable television, telecommunications and the internet into one seamless chain.
Meanwhile, the three telecom carriers have accelerated their layouts in intelligent home entertainment market and increased investment in internet protocol television, or IPTV.
Peter Liu, research director at IT research firm Gartner Inc, said CBN, which is likely to enter the telecom business, will not shock the current carriers and change the competition situation in domestic market in the short term.
"China Telecom and China Unicom have already accumulated rich experience in the field of broadband operation and its network coverage is sufficient with an advantage in 4G layout, which leaves limited space for CBN."
In contrast, CBN has a shortage in the network quality, operation, coverage and access, and lacks related talent in mobile internet operation. But granting CBN license to carry out telecom business will undoubtedly speed up the three-network convergence, Liu said.
China Mobile, the nation's largest telecom carrier, reported an increase in profit. Operating revenue increased 8.7 percent to 177.5 billion yuan in the first quarter, according to a statement issued by the company. China Unicom, meanwhile, witnessed a dramatic decline during the first quarter. In the first three months, its revenue was 70.3 billion yuan, down by 5.3 percent year-on-year.
