China's two major fixed telecom operators, China Telecom and China Netcom, have separately signed cooperation agreements with Shanghai Media Group, who just obtained the first IPTV license in China.

According to Li Ruigang, CEO of Shanghai Media Group, his company is consulting with the telcos on where to test IPTV, for the eventual roll-out of services.

This is the first major cooperation between China's telecom industry and the radio, film and television industry. China Telecom has reached an agreement with Shanghai Media Group to test the service in 17 cities including some in Guangdong, Jiangsu and Shaanxi provinces. China Netcom will test in the Heilongjiang province city of Harbin.