IPTV in China is set to take off in the New Year, as China Telecommunications Corp. (NYSE: CHA) has announced plans to aggressively expand its rollout.

The operator launched its Oriental IPTV service in Shanghai on Tuesday, but it’s planning on large-scale promotion across China in 2005, the Xinhua news agency says.

The announcement follows a report last week from ChinaTechNews.com that the carrier has teamed up with Shanghai Media Group, one of China's largest media organizations and owner of extensive program content and national radio and television channels.

China Telecom’s services will initially feature only TV programs that have already been aired, since it’s illegal in China for telecom operators to broadcast real-time TV and radio. A China Telecom official told Xinhua that its service is being offered as a value-added broadband service and is "absolutely legal". The Chinese government is expected to issue IPTV licenses next year.

China Netcom Group Corp. (NYSE: CN; Hong Kong: 0906), the second largest national carrier, has also indicated it’s stepping up development.

— Nicole Willing, Reporter, Light Reading