CDN License – B12 Content Delivery Network Services

Chinese Name: CDN 许可证 – B12内容分发网络业务

Summary

The B12 License is a license under the VATS (Value-Added Telecommunications Services) licensing scheme authorizing a business to provide network acceleration services for video websites, enterprise portal websites, personal websites, shopping websites, enterprise websites or data information.

Laws

The B12 license is defined in Announcement of the Ministry of Industry and Information Technology on Promulgating the Classification Catalogue of Telecommunication Services (2015) as follows:

“Content delivery network (“CDN”) services refer to the available services of providing users with the scatter storage and cache memory of contents, by utilizing the node server groups located in different regions to constitute the traffic distribution management network platforms, and delivering such contents to the rapid and stable cache servers on the basis of the dynamic traffic and load status of networks so as to enhance the response speed and services of users’ access to such contents.”

Who needs one?

The B12 license is required for businesses providing network acceleration services for video websites, enterprise portal websites, personal websites, shopping websites, enterprise websites or data information.

Typical network acceleration service use cases include:

1. Acceleration of a website

This is common in portal and e-commerce websites such as NetEase, Taobao, and others. Such sites frequently have a large number of static content files (text, images, and so on) that can be accelerated by CDN, significantly improving page response time and user experience.

2. Acceleration of file downloads

CDNs play an important role in accelerating file downloads. This is common in the distribution of software patch packages as well as the download of game installation packages. Such files are large in size, and the download process will easily put a strain on the origin site’s bandwidth, affecting its performance. The use of a CDN alleviates this pressure and significantly improves download speed from the client’s end.

3. Media streaming acceleration

This type of acceleration directs streaming media content to the edge node closest to the user, allowing users to access the content from the closest edge location, improving video transmission quality, shortening access time, and reducing backbone network traffic. Streaming media acceleration supports both live and on-demand video streaming. It is suitable for a variety of audio and video websites and applications, including Douyin, iQiyi, and others.

4. Acceleration across the site

This is mostly used on sites with a lot of dynamic content. It boosts network performance by using dynamic acceleration technologies like intelligent routing and protocol optimization.

5. Secure Data Encryption

Methods of encryption are constantly evolving. Trusted CDN providers use the most recent SSL certificates and data security methods without interfering with their customers’ operations. This is commonly used in e-commerce and fintech.

Requirements to apply for a B12 License

To apply for a B12 license, your company must fulfill these requirements:

• A 100% Chinese-owned company can obtain a B12 License for any of the above-listed business scopes; or a foreign-funded telecommunications enterprise established in China, operating within a province, autonomous region, or centrally located municipality. (Note: The foreign capital cannot exceed 50%)
• The business operator is a company established pursuant to the law;
• Have the requisite funding and staff for its business activities;
• Have the reputation or capability to provide long-term services for the users;
• The minimum registered capital of an operator operating within a province, an autonomous region or centrally-administered municipality shall be RMB 1 million; the minimum registered capital of an operator operating nationwide or across provinces, autonomous regions or centrally-administered municipalities shall be RMB 10 million;
• Have the premises, facilities and technical plans;
• The company and its key investors and key management personnel cannot be included in the list of dishonest telecommunications business operators; and
• any other criteria stipulated by the State.

Fines and Penalties

Operating these services without the B12 License may result in a fine of up to 3 to 5 times amount earned until that point, as well as the shutting down and blacklisting of that entity. You cannot carry out your business while applying, or both you and the approval agency will be punished. (See article 69 of Telecommunications Regulations of the People’s Republic of China)

Validity Time

The B12 License must be renewed every 5 years.

Get your B12 license the easy way.

Network operators in China must adhere to a set of laws and regulations that can seem opaque and confusing to foreign developers and companies. AppInChina simplifies and demystifies this process for our clients.

AppInChina will analyze your business scenario, determine which licenses are needed, and apply on your behalf. See this page for other licenses that may be required for features in specialized categories, such as video conferencing and education. Contact us today for a consultation.