Implementation of three network convergence in China: A new institutional analysis

Abstract

Three network convergence, namely, the integration of telecommunications, broadcasting and Internet networks, is a state policy of China for promoting network convergence. Past studies undertaken on the development of Chinese information and communications technology industry adopt different approaches like bargaining, and input–output perspectives. This paper, instead, analyses the implementation of the convergence project from a new institutional perspective. It argues that that the two ministries for the telecommunications and broadcasting sectors, namely, the Ministry of Industry and Information Technology (MIIT) and State Administration of Radio, Films and Television (SARFT) had inertia to attain mutual penetration of networks. It also argues that the ideological disparities of MIIT and SARFT cause them to respond differently to the convergence project. In order to attain the policy goal, the Central Government had to impose a reform schedule from the top and take initiatives at local level to accelerate the policy implementation. It also argues that SARFT and MIIT had developed different patterns of collaboration at local level due to institutional and competitive pressures as well as political pressure from the Central Government.