China Telecommunications, one of China's two major fixed-line operators, plans to upgrade its asymmetric DSL network with more advanced technology in a move seen as preparing the company's network for IP TV services.

China Telecom will upgrade its ADSL network with faster ADSL2+ equipment, said ZTE, a Chinese equipment maker that won a contract to provide 1 million ADSL2+ lines to the operator. ADSL2+ offers a downstream data rate of up to 25Mbps on lines up to 5,000 feet long and is interoperable with older ADSL gear.

ZTE did not disclose the financial terms of its contract with China Telecom, which it said plans to add approximately 3 million ADSL2+ lines..

"IP TV is one of the major reasons China Telecom is upgrading their network infrastructure," said Jason Yin, managing director of market research company In-Stat China, in Beijing. "Whether the [IP TV] service will be offered by them or by a service provider is not clear yet," he said.

China Telecom primarily operates in southern and eastern regions of China, while the other major fixed-line carrier, China Network Communications Group, operates in northern China.

China Netcom has not yet announced plans to upgrade its broadband network, Yin said. "Netcom seems a little bit slower than China Telecom," he said.

While China Telecom is readying its network for IP TV services, regulatory hurdles must be overcome before such services can be rolled out.

China's State Administration of Radio, Film and Television (SARFT) has so far issued a single IP TV license to Shanghai Media Group, Yin said. Despite having the license, SMG's plans have been slowed by a requirement to also seek permission from regional SARFT authorities, he said.

The IDG News Service is a Network World affiliate.