Changhong's IPTV terminal equipment development and manufacturing programs have won CNY1 million in support from the Ministry of Information Industry (MII).

MII says IPTV is a key area in which China needs to develop, and therefore it is offering preferential policies and funding to businesses within this sector. This is the largest sum of funds ever offered by MII to a Chinese enterprise.

In cooperation with China Telecom, Changhong is aiming at transforming 400 million television users in China into potential broadband users through the use of IPTV.

IPTV uses a two-way digital broadcast signal that is sent through a switched telephone or cable network by way of a broadband connection, along with a set top box programmed with software that can handle viewer requests to access media sources. A television is connected to the set top box that handles the task of decoding the IP video and converts it into standard television signals. The Switched Video Service (SVS) system allows viewers to access broadcast network channels, subscription services, and movies on demand.