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Ovum is commenting on the IPTV's future in China fogged by regulatory conflict between the broadcasting and telecommunications sector. Hong Kong, 6 November 2006 -- "Due to government's extensive control over television content, I don't think there will be a great improvement on the regulatory development favouring IPTV in the near term," says Kevin Lee, Ovum Senior Analyst based in Hong Kong. "That means that telecom operators might need to wait further to obtain IPTV licences. In the meantime, they will continue to explore different business models to try to secure more service revenues," he continues. Should you wish to talk to Kevin Lee, regarding this story then please contact me at Likewise, please contact me should you wish to talk to any of our analysts regarding any other news stories. Regards Tanisha Kuckreja IPTV FUTURE IN CHINA While IPTV has raised an optimistic prospect worldwide for telcos to implement multi-play services to protect their broadband business, the IPTV future in China continues to be clouded by the regulatory conflict between broadcasting and telecommunications sector. Kevin Lee, Senior Analyst, comments: Existing China's broadcasting regulation restricts Chinese telcos from participating in content ownership and production. This limits operators from playing a leading role in the IPTV value chain. Such development evolves into a common business model where telcos solely contribute in providing broadband network access to reach prospective audiences, leaving all the control of content and subscriber management to the media companies. Due to government's extensive control over television content, I don't think there will be a great improvement on the regulatory development favouring IPTV in the near term. That means that telecom operators might need to wait further to obtain IPTV licences. In the meantime, they will continue to explore different business models to try to secure more service revenues. Facing a wide variety of TV distribution such as digital cable, digital terrestrial and satellite DTH, customers are exposed to a wide range of offerings. However, China's IPTV does not have a well-defined positioning either. Although the technologies might be complementary in some way over geographical coverage, the services with similar content are in serous competition. At a premium price, IPTV needs to find ways to differentiate the service with other offerings. In most cases, IPTV providers push for interactive services to highlight the power of IPTV. Partnering with traditional TV sector does not seem to be viable at this point given the heavy regulatory restriction in broadcasting. On the other side, shortage of investment simply by the four current IPTV media companies over numerous IPTV trials is apparently insufficient to develop a large scale and mature business case. Nevertheless, no one can deny the potential of IPTV in the biggest market of the world. Ovum forecasts that by 2010 there will be 5.8 million IPTV subscribers in China with revenues reaching US$619 million. All in all, ease of regulatory issue is still the foremost important factor to facilitate IPTV development. About Ovum Plc: Ovum's primary activity is providing value-added advisory services and consulting to retained and project clients. The Company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors. Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telecom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone. Media Contacts: Tanisha Kuckreja Tel: +61 3 9601 6723 Email: Submitted by Tanisha, ovum on Monday, 6 November 2006 at 12:58 PM Category: Government & Policy |
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