A study on vertical restraints in triple-play market of China

Abstract

This paper examines vertical restraints in the triple-play industry of China. In China, there are cable group and telecom group. Most of the high quilty program producers are under the control of cable operators; there are a little program producers who are willing to cooperate with telecom operators, and they are always small and weak. So cable group has market power and the incentives to impose vertical restraints in this market. In order make competition to be fairer, our suggestion to the regulators is to separate TV channels from the cable operators.