Media Convergence Said To Boost Chinese Economy by $100 Billion Dollars

written by: Richard Kastelein

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Triple network convergence is expected to give China economy US$100 billion boost, says a new $900 report from Digitimes Research titled "Network convergence in China: Government policy and market effects."

The Chinese government has been pushing for convergence of the country's three big networks - the Internet, telecom networks, and TV broadcasting networks - using various measures, such as  through the Triple Network Convergence Policy it laid out early in 2010. While the Triple Network Convergence Policy reiterates many government policies set out previously, one area that is expected to have significant effects on the market is the government's step to grant permission for TV broadcasting firms and telecom carriers to enter and do business in each other's realms.

The report indicates triple network convergence will stimulate development in the equipment manufacturing industry and information services industry, to the tune of 688 billion yuan of investment and consumption in the next three years, including 249 billion yuan for the construction of the IT service system for video content and 439 billion yuan for IT services and final end-user consumption. It will also create 200,000 job opportunities.

This Digitimes Research Special Report examines China's Triple Network Convergence Policy from a macro and micro point of view. In addition to outlining triple network convergence details, Digitimes Research analyzes the effects the promoted policies will have on players in China's telecom and broadcast industries.



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