Strategy! Operations! A Recap of the Broadband Broadcasting Forum at ICTC2015

2015-10-30

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On October 29, the 23rd Media Convergence Technology Conference (ICTC2015) entered its third day. During the "Broadband Radio and Television Forum" held that morning, industry leaders gathered to discuss the development strategies and operational models for broadband services in the broadcasting and television sector. The thematic forum was organized by China Broadband Network, with key speakers including Yang Peichuan, Director of the Data Business Department at Inner Mongolia Radio and Television Network Group Co., Ltd.; Han Jikai, Assistant General Manager of Beijing Gehua Cable; Zhao Jin, General Manager of the Public Customer Marketing Center at Chongqing Cable TV Network Co., Ltd.; Zhang Junxia, Research Director at Gran Research; Yang Kun, Secretary-General of the Interactive Media Industry Alliance; and Zeng Jinghong, Manager of the Program Information Department at Guizhou Provincial Network. The forum was moderated by Liu Lanlan, Editor-in-Chief of China Broadband Network.
A major challenge for radio and television broadcasters entering the broadband market is the difficulty in securing resources and the high cost of outbound connectivity—making seamless interconnection not just desirable, but essential. Today, this understanding has already become a consensus within the broadcasting industry. The pressing question now is how to effectively implement this vision, a concern that resonates most strongly across regional broadcasters. On September 20, broadcasters from four northeastern provinces—including Heilongjiang, Jilin, Liaoning, and Inner Mongolia—signed an interconnection agreement. Notably, Inner Mongolia Broadcasting was the primary initiator and active participant in this groundbreaking agreement.
In the context of interconnected broadband services, Yang Peichuan, Director of the Inner Mongolia Radio and Television Data Business Department, shared three key insights on how to achieve operational efficiency and market competitiveness:
First, establish a unified organizational coordination mechanism, with each party responsible for network maintenance and line optimization within their respective areas.
Second, establish a unified traffic billing system. For example, in the cooperation among the four northeastern provinces, Inner Mongolia could provide a single, standardized traffic billing platform that would be freely accessible to all parties for inquiries, along with unified configuration parameters.
Third, establishing a unified pricing model will help foster long-term business growth and drive collective progress. By mutually agreeing to offset differences through traffic-based adjustments in billing, all parties will be motivated to invest in content development.
He shared a personal insight: While parties collaborate and connect with one another, their objectives often differ—some aim to conserve resources, while others seek to reduce costs. He believes the way forward for everyone to stay strong together lies in solidifying broadband infrastructure, strengthening business operations across regions, and fostering coordination among all stakeholders. Ultimately, this would lead to the creation of a practical, market-oriented unified platform for the internal network interconnection and management of radio and television networks—a solution that’s both feasible and scalable.
Xiaomi founder Lei Jun once said, "Standing at the eye of the storm, even a pig can fly." Han Jikai, Assistant General Manager of Gehua Cable, however, believes, "Cable broadband isn’t that pig riding the wind."
After analyzing and comparing the industry operating data of telecom and cable, he presented two clear-cut observations:
First, we firmly oppose the pipeline-style management of cable networks; second, we strongly reject discussing individual services in isolation from one another.
Han Jikai believes that we are now in an era of integrated business development, where every business is inevitably linked directly to at least one other, and no single business can thrive or grow independently anymore.
It is reported that currently, 75% of Gehua Broadband's users already have connections exceeding 8 Mbps. Once the server room upgrades are completed next year, all Gehua Broadband subscribers will enjoy speeds of at least 20 Mbps.
Additionally, it was revealed that next year, Gehua WiFi hotspots will see significant expansion. Coverage will be extended to several residential communities and commercial venues. Gehua broadband subscribers will be able to log into these public hotspots using a password, allowing them to seamlessly continue enjoying their Gehua broadband services.
According to Zhao Jin, General Manager of Chongqing Cable's Public Customer Marketing Center, there are several key issues in the pilot program for broadband cooperation with telecom operators: First, the quality of the outbound connection is unsatisfactory; second, the revenue-sharing arrangement is excessively high; third, coordinating channels, BOSS systems, network infrastructure, and personnel between the two sides proves particularly challenging; and fourth, it remains difficult for the radio and television operator to establish an independent brand identity, as they continue to be heavily dependent on the telecom partner.
Therefore, Chongqing Radio and Television has established an "I-centric" operational strategy. In terms of internal network resource development, initial successes have already been achieved.
First, we carried out hotspot CDN infrastructure development. This included completing local CDN setups for key platforms such as Tencent Video, Sina Video, Sohu Video, LeTV, Taobao, and iQiyi, resulting in a total CDN storage capacity of 2400T.
Second, we carried out the construction of Cache caching mirrors. For applications with relatively low input-output ratios and low-traffic, niche content is mirrored locally using various caching systems to supplement CDN resources and address local hotspots.
Third, we are promoting network interconnectivity. Currently, in addition to China Telecom and China Unicom lines, we are also leveraging exit resources from providers such as Tietong, China Mobile, and the Education Network. To alleviate outbound traffic pressure, we have successfully established interconnections with secondary operators including CenturyLink, Beijing Founder, Pengbo Doctor, and CITIC Networks. Meanwhile, within the radio and television system, we’ve completed interconnections with sister organizations like Shaanxi Radio & TV, Oriental Cable, and Hangzhou Huashu.
Fourth, implement content CP interconnection. To ensure seamless update synchronization for our self-built CDN, we’ve established connectivity via transmission links with Tencent’s Shanghai CAP node, Alibaba’s Hangzhou node, Baidu’s Beijing BGP node, Youku’s Beijing full-mirror BGP data center, and ChinaCache’s Shanghai IDC facility—covering all major content-serving data centers. This setup allows us to supplement and synchronize back-to-origin traffic for our self-built CDN through a tiered control mechanism.
Zhang Junxia, Research Director at Golan Research, unveiled the "China WiFi Development White Paper" at this forum. She emphasized that WiFi operators are at the heart of the commercial WiFi industry chain, serving as a vital link between upstream and downstream players—and also playing a pivotal role in driving the industry’s efficient, self-sustaining cycle.
Zhang Junxia analyzed four operational models for commercial WiFi: hardware sales combined with complementary value-added services and advertising; free network setup plus advertising; focusing primarily on O2O operations to build regional O2O e-commerce service platforms; and targeting public transportation WiFi—offering free network access alongside business promotions and ad placements.
She openly admitted that advertising is currently the primary business model, while O2O operations are still limited to a certain scope. Zhang Junxia believes that big data and deep, personalized services are the future directions for commercial WiFi, emphasizing that commercial WiFi should deliver even more refined and tailored offerings.
Yang Kun, Secretary-General of the Interactive Media Industry Alliance, shared insights into the ongoing journey of telecommunications broadband development and transformation. Based on the latest data analysis, he predicted that "full optical network coverage won’t be far off," and "broadband speeds will soon enter the 100-Mbps era."
Yang Kun believes that internet companies and telecom operators are increasingly showing a clear competitive relationship. Without shifting from broadband operations to traffic-based models—and instead relying solely on being mere "pipes"—sustained growth will become increasingly difficult.
He proposed that broadband operators should shift toward a customer-centric business model. In the past, operators held the power to design, price, and deliver services, leaving consumers with limited choices—essentially confined to the offerings available within the operator’s own portfolio. This approach not only positioned operators as the central controllers of the value chain but also inadvertently fostered a self-centered mindset among them. However, the internet places far greater emphasis on user experience rather than the products themselves. After all, it’s the quality of the user experience that ultimately determines customer loyalty and word-of-mouth recommendations—precisely an area where operators’ offerings have historically fallen short.
Yang Kun also suggests that broadband operators should shift their focus toward market analysis and prioritizing customer experience. Under the limitations of traditional thinking, operators have historically held dominant control over both the market and the value chain. However, their operational analyses often remain confined to presenting, analyzing, comparing, and summarizing their own internal data—ultimately using these insights to formulate strategies for the next phase. Unfortunately, this "data-heavy" approach to business analysis continues to dominate in today’s market, yet it increasingly fails to align with real-world market dynamics. To stay on track, operators must strengthen their external, market-oriented, and customer-focused analysis efforts—only then can they avoid losing sight of where the industry is truly headed.
Zeng Jinghong, Manager of the Program Information Department at Guizhou Radio and Television, believes that those who create products need to reflect on what truly gives a product its "soul," while also carefully observing human nature with empathy.
Zeng Jinghong started with a small, everyday occurrence in life to share his insights into the "greed, anger, and delusion" inherent in human nature—and then extended this observation to question the very essence of product design.
Based on the considerations of the issues mentioned above, Guizhou Radio and Television Design has launched two major terminal products: "Parents' Joy" and "Magic Cube."
The former is built on traditional broadcast and TV products, treating broadband as an add-on feature with a very targeted audience—primarily seniors—and avoiding a one-size-fits-all approach. In contrast, the latter is entirely designed based on the "Internet+" concept, specifically tailored to younger users—and this is how it looks when placed in a home setting.
Zeng Jinghong believes that broadcasters and media companies don’t necessarily need to create massive, all-encompassing products—instead, it’s far more valuable to focus on crafting small yet exquisite ones. "The key lies in precisely identifying your target audience, deeply analyzing their human needs, and approaching your product with genuine care and creativity, infusing it with a meaningful 'soul.' Only then can your product truly thrive," he says.
The day's forum was held in the multi-function hall on the fifth floor of the main building at Hangzhou Zhijiang Hotel, where the venue was packed to capacity. All six presentations received an enthusiastic response, highlighting—albeit indirectly—the broadcasting and media industry's strong expectations and growing emphasis on broadband services.


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