Nationwide Cable Television Infrastructure Development Status

The cable television network serves as the primary channel through which the voices of the Party and the government reach millions of households, making it a vital platform for ideological, cultural, and propaganda efforts. It plays a crucial role in shaping mainstream public opinion and promoting advanced culture. After years of robust development, the national cable TV network now boasts a backbone infrastructure stretching over 4.77 million kilometers, reaching approximately 336 million households across China. As a result, it has become a cornerstone of China’s critical information infrastructure—and an essential component in building a strong, digitally-connected nation.

1. Current Status and Characteristics of China's Cable Television Development

Although China's cable television industry started relatively late, it has experienced rapid growth—particularly over the past decade or so, driven by breakthroughs in technology and business innovation. This has enabled the sector to evolve from fragmented, standalone small networks into a robust infrastructure featuring backbone, provincial-level trunk lines, and metropolitan-area interconnections. Today, cable TV providers are increasingly transforming into comprehensive information service companies capable of delivering not only traditional broadcast and television content but also computer and data services. As a result, the industry now offers diverse transmission methods, rich content options, and highly reliable quality, ensuring that millions of viewers enjoy dependable, trustworthy, and high-quality broadcasting and communication services. In 2003, China’s cable TV market surpassed 100 million active subscribers. Just eight years later, by 2011, this number had more than doubled, exceeding 200 million households. By the end of 2017, the total number of active cable TV subscribers nationwide reached 214 million (see Figure 1).

In recent years, cable television transmission organizations at all levels have continuously enhanced their network capacity and steadily expanded their service coverage. Proactively addressing industry challenges, they’ve been striving to innovate service models and business formats, driving the transformation and upgrading of the cable TV sector as it moves toward high-quality development goals. Specifically, this evolution is marked by four key characteristics:

First, the levels of digitalization and two-way capability have been steadily improving. Cable television digitalization has entered its final, critical phase. By 2017, China’s cable TV digitalization rate had already reached 90.48%. Moreover, cable TV is increasingly advancing toward high-definition and ultra-high-definition services. In 2017, the number of HD and UHD cable TV subscribers in China climbed to 71.05 million and 5.17 million households, respectively—representing growth rates of 5.09% and 230%, respectively—and significantly boosting their visibility among cable TV users. Building on this digital foundation, the two-way transformation of cable TV networks is also progressing smoothly. In 2017, China’s actual number of two-way digital TV subscribers reached 57.43 million, up 24.51% year-on-year, accounting for 29.59% of all active digital cable TV users. Meanwhile, fiber-optic network subscribers grew by 20.84%, reaching 9.98 million households.

Second, intelligent development is showing strong momentum. In recent years, the National Radio and Television Administration has organized research, development, and widespread adoption of China’s independently created smart TV operating system (TVOS). This initiative is crucial for safeguarding cultural security in radio and television broadcasting, securing leadership in the smart TV industry, and supporting the rapid, sustainable advancement of digitalization, networking, and intelligent transformation in the sector. Across various regions, cable TV network operators have leveraged their unique local contexts to collaborate deeply with governments, industry partners, and communities, actively promoting the growth of smart transportation, smart communities, smart healthcare, and other innovative services. These efforts have effectively fueled industry-wide innovation and positioned smart TV technology as a key driver for the transformative upgrade of the broadcasting and media landscape. Meanwhile, operators nationwide have been vigorously advancing the intelligent evolution of end-user devices. By the end of 2017, the number of smart TV terminal users connected via cable networks across China reached 7.01 million households, representing a remarkable 131.15% increase compared to the previous year.

Third, network integration has achieved phased results. After more than 10 years of dedicated effort, China’s provinces have largely accomplished the interim goal of consolidating cable TV networks into a "one-network-per-province" structure. By 2017, cable network personnel across all provinces collectively accounted for 92.42% of the nation’s total cable TV workforce, while their share of total assets reached 94.08%. In late 2016, the Publicity Department of the Central Committee, the Ministry of Finance, and the State Administration of Radio and Television jointly issued the "Opinions on Accelerating the Integration and Development of the National Cable TV Network," marking the entry of nationwide cable TV network consolidation and interconnection platform construction into a new phase. Currently, the integration efforts led by China Broadcasting Network Corporation Ltd. have yielded significant progress. As of the end of May 2018, the company had already signed strategic investment cooperation agreements with 10 provincial network companies, including those in Hebei, Qinghai, Guangdong, and Shandong. Meanwhile, China Broadcasting Network Corporation is actively advancing the development of a nationwide cable TV interconnection platform, promoting terminal devices, and rolling out services across the country—while also embracing cutting-edge technologies and exploring innovative business models.

Fourth, the development of cable TV subscribers is entering a new phase. From 2005 to 2015, China’s actual cable TV subscribers showed a steady growth trend, reaching a record high of 236 million households in 2015. However, from 2015 to 2017, the country experienced a gradual decline in the number of active cable TV users, driven by several key factors: On one hand, cable TV has faced intense competition from interactive IPTV, internet-based TV services, and online video platforms, leading to a significant shift in subscriber preferences. On the other hand, this decline was also linked to the relatively slow pace of content and business innovation among cable operators themselves. Despite the initial drop in traditional cable TV subscribers, the industry is now witnessing rapid growth in new revenue streams such as broadband services and value-added offerings, signaling that the cable TV sector has entered a critical period of transformation and evolution. By 2017, China’s cable TV internet broadband subscribers had nearly reached 30 million, representing an impressive increase of over 6.7 million households compared to 2016.

Currently, cutting-edge technologies—such as cloud computing, big data, artificial intelligence, and the Internet of Things—are rapidly integrating into various sectors of the national economy. Faced with the vision of upgrading information consumption and striving to meet people's growing aspirations for a better quality of life, the cable television industry must leverage these advanced technologies to innovatively develop new business models and ecosystems. This will enable the industry to quickly establish fresh revenue growth drivers, ultimately fostering new momentum that propels its sustainable development and drives a comprehensive transformation and upgrade of the cable TV sector.

2. Nationwide Cable Television Infrastructure Development Status

From 2015 to 2017, cable television networks at all levels consistently pushed forward with two-way upgrades, enhancing their capacity to support various services while continuously increasing investments in network infrastructure.

(1) Construction Investment Overview

Nationwide fixed-asset investment in cable television has grown steadily year by year. (Note: Fixed-asset investment refers to the cumulative amount spent by cable network operators on cable networks and their associated infrastructure, including investments in core network infrastructure, business system platforms, terminals and related equipment, real estate and buildings, other equipment, as well as financed leased fixed assets.) In recent years, this investment has consistently accounted for more than 30% of cable TV operating revenues, reflecting a strong commitment to expanding and upgrading the industry. From 2015 to 2017, the national fixed-asset investments in cable TV reached RMB 26.649 billion, RMB 27.673 billion, and RMB 28.820 billion, respectively, corresponding to revenue share percentages of 30.42%, 30.49%, and 32.18%. While there was a slight increase in investment intensity—driven by growth rates of 3.84% and 4.14% over the past two years—the overall trend has remained robustly stable (see Figure 2).

Looking at the three major regions—East, Central, and West—across the country (Note: The Eastern region includes Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan; the Central region comprises Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, and Hunan; and the Western region consists of Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang)—fixed-asset investment in the East clearly outpaced that of the Central and Western regions. Meanwhile, both the Central and Western regions have been steadily increasing their efforts in fixed-asset investment for cable television infrastructure. In 2015, fixed-asset investment in cable TV reached 13.267 billion yuan in the East, compared to 6.520 billion yuan in the Central region and 6.842 billion yuan in the West—highlighting a significant disparity, with the East leading far ahead of the other two regions. By 2017, while the East maintained its strong investment momentum at 13.036 billion yuan, the Central and Western regions accelerated their cable TV development, with fixed-asset investments growing to 7.308 billion yuan and 8.345 billion yuan, respectively. These figures represented increases of 5.03% and 17.52% from 2016 levels, signaling a robust and encouraging trend in investment activity (see Figure 3).

Investment in cable TV infrastructure networks has grown steadily year by year. In 2015, the nationwide investment in cable TV infrastructure networks totaled 14.211 billion yuan, rising to 14.796 billion yuan in 2016—a year-on-year growth rate of 4.12%. By 2017, infrastructure network investments experienced rapid expansion, reaching 17.115 billion yuan, marking an impressive annual growth rate of 15.68%. Notably, both backbone network investments—referring to the transmission network built by cable operators before establishing county- or district-level distribution hubs (including pipelines, optical cables, transmission systems, equipment, and other related expenditures)—and distribution network investments—covering funds allocated for the network extending from these hubs to individual households—showed an upward trend. Among them, distribution network investments outpaced those for the backbone network. This surge in distribution network spending was largely driven by cable TV providers’ aggressive rollout of fiber-to-the-home projects. In 2015, national backbone network investments stood at 6.176 billion yuan, while distribution network investments reached 8.029 billion yuan. By 2017, however, backbone network investments saw a modest increase to 6.982 billion yuan, whereas distribution network investments soared past 10 billion yuan, representing a robust year-over-year growth of 22.91%.
Investments in network infrastructure, data center construction, and other related areas have continued to rise, laying a solid foundation for the upgrading and expansion of cable TV services. From 2015 to 2017, investments in network lines, data center construction, and similar projects reached RMB 15.653 billion, RMB 16.482 billion, and RMB 18.920 billion, respectively, with growth rates of 5.30% and 14.79% in the most recent two years. Meanwhile, investments in system platforms remained relatively stable, totaling RMB 2.186 billion, RMB 2.329 billion, and RMB 2.314 billion from 2015 to 2017, though growth slowed slightly to 6.52% and dipped by -3.05% in the past two years. Driven by declining cable TV subscriber numbers, investments in set-top boxes and terminal devices saw a sharper decline, dropping to RMB 5.518 billion, RMB 5.490 billion, and RMB 4.647 billion from 2015 to 2017, with year-on-year decreases of 0.51% and 15.37% in the last two years.
(II) Status of the Transmission Backbone Network
From 2005 to 2016, the total length of the national cable TV transmission backbone network continued to grow steadily. (Note: The length of the cable TV transmission backbone refers to the extent of the network infrastructure preceding the optical nodes—specifically, the trunk lines connecting counties to townships and villages.) In 2005, the nationwide cable TV transmission backbone network stretched 2.201 million kilometers; by 2007, it had surpassed 3 million kilometers. By 2014, the network had expanded further, reaching 4.1534 million kilometers—and by 2016, it had grown even more, totaling 4.7761 million kilometers (see Table 1). Over the 11-year period, the length of the national cable TV transmission backbone network doubled, with an average annual growth rate of 7.30%.

Looking at the three major regions—eastern, central, and western China—cable TV transmission backbone networks across all areas saw significant growth from 2005 to 2016. Notably, the western region experienced a higher average annual growth rate compared to both the eastern and central regions. In the eastern region, the length of the cable TV transmission backbone network grew from 972,200 kilometers in 2005 to 2,148,400 kilometers in 2016, representing an average annual growth rate of 7.47%. Meanwhile, the central region expanded its backbone network from 589,400 kilometers in 2005 to 1,124,200 kilometers in 2016, with an average annual growth rate of 6.05%. In contrast, the western region witnessed the most rapid expansion, increasing its backbone network from 609,500 kilometers in 2005 to 1,503,400 kilometers in 2016—a remarkable average annual growth rate of 8.55% (see Table 2).

(III) User Coverage Situation
The number of cable TV and radio subscribers nationwide has grown steadily year after year. (Note: Cable TV and radio coverage refers to the number of households reachable by the cable transmission network at the end of the reporting period, including both users who have subscribed to cable TV and radio services as well as those who haven’t.) In 2015, the national figure stood at 289 million households; by 2016, this number had risen to 310 million, representing a growth rate of 7.57%. In 2017, coverage expanded further to 336 million households, marking an impressive increase of 8.23% (see Figure 4).
Looking at the three major regions—eastern, central, and western China—eastern China accounts for roughly half of the nation’s total cable TV subscribers, while the western region continues to experience rapid, sustained growth. In 2015, the eastern region had 148 million cable TV and radio subscribers, compared to 78 million in the central region and 63 million in the west. This reflects the fact that the eastern region includes many densely populated provinces, resulting in a higher number of cable TV subscribers than the combined totals of the central and western regions. By 2016, both the central and western regions saw significant growth in subscriber numbers, with the central region posting an impressive increase of 13.55%, bringing its total to 88 million households. Meanwhile, the western region maintained its robust growth trajectory, expanding by an impressive 16.64% and reaching 79 million subscribers. In 2017, the western region continued its strong upward trend, with growth accelerating to 16.64% and boosting its subscriber base to 79 million. Meanwhile, the eastern and central regions reported 161 million and 95 million subscribers, respectively (see Figure 5).
In 2017, more than 10 million households across the country were covered by cable radio and television services in 15 provinces (and municipalities). Among them, Shandong Province led with an impressive 31 million cable TV subscribers*, followed by Guangdong with 27 million, Jiangsu with 25 million, Zhejiang with 18 million, Sichuan and Henan each with 18 million, Hunan with 16 million, Hubei with 14 million, Liaoning with 13 million, and Hebei with 13 million (see Figure 6).