IPTV in China Gets an Olympic Start

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Table of Contents
Executive Summary
Methodology
What does IPTV Mean in China?
*Introduction
*End-user Perspective
Potential Huge Subscriber Base for IPTV
IPTV Advantages in Interaction, Ease-Of-Use and Price
Key Applications Initiate IPTV Market
*Service Providers' Perspectives
Cable Operators' Perspective
Telecom Carriers' Perspective
*ICPs' Perspective
*Technology Perspective
To Challenge the Bandwidth of Dominant ADSL Networks
IPTV Multicast Conflicts with Telecom Network
Video Encoding Format
IPTV Middleware
*Policy Perspective
IPTV Development Trend Analysis
*Business Model
To Provide STB for Free in Bundles
STB Sales Model is all about Scale
Close Cooperation Between Vendors and IPTV Carriers
*Drivers
Olympic Games in 2008 are a Strong Driver for IPTV
IPTV's Performance in Interaction, Ease-of-Use and Price Advantage
Telecom Carriers are Eager to Develop More Broadband Users/Revenue Streams
ICPs Regard IPTV as a Good Opportunity for Resell
Equipment Vendors are Anxious to Get Involved in a New Round of Investment
*Barriers
Broadband Network has a Long Way to To to Meet IPTV Requirements
IPTV Contents Must be Different and More Attractive
Unifying IPTV Standards Makes the Process for Wide Adoption Long and Costly
Facing Pirating in the Long Term
IPTV Forecast 2005-2010 in China
*Subscribers
*STB Unit Shipments
*STB Shipment Revenue
*Carriers
China Telecom Corporation (CTC)
China Netcom Corporation (CNC)
*ICPs
ICCTV
EastTV
Shanda
BJIPTV
*Vendors
UTStarcom
ZTE
Onewave
Huawei
Alcatel Shanghai Bell (ASB)
TransVideo
VCOM
STB manufacturers
Coship
Changhong
TCL
DVN
Conclusions

List of Tables
Table 1. IPTV Market Forecast, RMB in Millions, US$ in Millions, 2005-2010
Table 2. Advantages and Disadvantages of ADSL 2+, VDSL and FTTH
Table 3. Encoding Format Development Situation
Table 4. China IPTV STB Unit Shipments and Revenue US$ in Millions 2005-2010

List of Figures
Figure 1. Subscriber Base Forecast 2005-2010
Figure 2. China IPTV Framework
Figure 3. China IPTV Compared with Cable TV, DVD and Broadband VAS
Figure 4. Emerging Broadband Access Technologies
Figure 5. China IPTV Value Chain
Figure 6. IPTV Lifespan Compared with SMS and Broadband
Figure 7. China IPTV Subscribers (In Millions) 2005-2010
Figure 8. China IPTV STB Shipments 2005-2010
Figure 9. China IPTV STB Shipment Revenue, RMB in Millions 2005-2010
Report's synopsisAbstract
There is a potentially huge subscriber base for IPTV in China. Analog TV is very popular in Chinese households in downtown or rural areas. There were over 360 million TV users by the end of 2004, and over 100 million cable TV users. Almost every family has at least one set, and some city households have shown the trend of two or three sets at one home. Additionally, there were over 20 million broadband users in China by the end of 2004, where ADSL accounted for about 70% of the pie.
Because the installed base of TVs is so much higher than that of PCs in China, IPTV services such as TV Gaming and TV Education may help drive Chinese families toward widespread use of IPTV. An additional finding indicates that the Olympic Games being held in China in 2008 may also contribute to substantial growth in IPTV services during the forecast period. Although In-Stat feels that growth will be minimal between 2005 and 2008 and that there are currently many barriers still to overcome, there is evidence of substantial opportunity toward the end of the forecast.
This report assesses what IPTV means for China from the perspectives of Service Providers, Internet Content Providers (ICPs), and end-users and discusses impacts of technology and policy. Business models, market drivers and constraints (including piracy) are also discussed.
Forecasts include IPTV subscribers, and unit and revenue projections for Set Top Boxes (STBs).

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