CN2: The Key to Unlocking China’s E-sports and Online Gaming Market

EdgeNext Technology
8 min readFeb 2, 2024

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CN2, also known as China Next Generation Internet, is a high-speed network that provides fast and stable internet access throughout China. This network covers the country’s urban and rural areas, ensuring gamers across all regions can access high-quality online gaming experiences. This is crucial for the success of e-sports and online gaming companies, as a stable internet connection is necessary for seamless gameplay.

Moreover, CN2 offers improved security measures to protect sensitive player data and prevent hacking or cheating in online games. This gives players peace of mind while playing and boosts their trust in the platform, increasing user retention and engagement.

Table of Contents

  • Introduction
  • What is CN2 and How Does it Benefit Online Gaming?
  • Why is China a Major Market for E-sports and Online Gaming?
  • How Does CN2 Enhance the Gaming Experience in China?
  • What are the Challenges of Online Gaming in China?
  • How Can Game Developers Leverage CN2 for Market Entry?
  • Is CN2 Compliant with China’s Internet Regulations for Gaming?
  • Can CN2 Help in Scaling Gaming Services in China?
  • What is the Future of CN2 in China’s Gaming Industry?
  • Conclusion

Introduction

With the rapid growth of e-sports and online gaming in China, this market has become a highly sought-after business opportunity for companies worldwide. As one of the largest markets in terms of population and internet users, China offers immense potential for growth in this industry. Companies need access to reliable and high-speed network infrastructure to tap into this lucrative market. This is where China Telecom’s CN2 (China Telecom Next Generation Carrying Network) comes into play, serving as a crucial asset for businesses looking to establish a presence in the Chinese e-sports and online gaming market.

What is CN2 and How Does it Benefit Online Gaming?

CN2 (China Telecom Next Generation Carrying Network) is a high-speed and reliable network infrastructure owned and operated by China Telecom, one of the largest telecommunications companies in China. It is a critical asset for accessing the Chinese e-sports and online gaming market, providing businesses with the necessary resources to deliver seamless gaming experiences to their users.

One of the main advantages of CN2 for the online gaming industry is its advanced infrastructure. With a global reach and multiple points-of-presence (POPs), CN2 allows businesses to establish direct connections with Chinese internet service providers, reducing latency and packet loss for their users. This results in a more stable and responsive gaming experience, crucial for competitive online games.

In addition, CN2 utilizes advanced technologies such as MPLS (Multiprotocol Label Switching) and SDH (Synchronous Digital Hierarchy), allowing for efficient routing of data packets and ensuring high speed and low latency. Its infrastructure is constantly evolving, with regular upgrades to meet the growing demands of the online gaming market in China. This makes CN2 an essential tool for businesses looking to provide top-notch gaming experiences to their Chinese users.

Why is China a Major Market for E-sports and Online Gaming?

China has emerged as a major e-sports and online gaming market, with its vast population of over 1.4 billion people and a fast-growing internet user base. China is the world’s largest e-sports market, accounting for almost one-third of global e-sports revenue. This trend is expected to continue in the coming years, making China a strategic market for companies looking to capitalize on the growing popularity of e-sports and online gaming.

One of the key factors contributing to China’s dominance in this industry is its vast and engaged audience. With a large population of young, tech-savvy individuals, there is a huge demand for online gaming in China. In addition, the country has seen a significant rise in professional e-sports players and teams and a growing number of tournaments and events. This creates a thriving ecosystem for businesses to tap into and establish a presence in the market.

Statistics further highlight the potential of China’s e-sports and online gaming market. For example, the country’s e-sports revenue was projected to reach $10.6 billion in H1 2023 (Esport Insider, 2023), with over 500 million potential gamers. In addition, the Chinese government has also recognized the industry’s growth and has invested in developing infrastructures and policies to support its expansion. These factors make China a major e-sports and online gaming market, making it an ideal target for businesses looking to enter or expand their presence in this rapidly growing industry.

How Does CN2 Enhance the Gaming Experience in China?

CN2 plays a crucial role in enhancing the gaming experience for users in China, offering several benefits that improve gameplay and user engagement. One of the critical features of CN2 is its low latency and packet loss rates, allowing for faster and smoother communication between players and game servers. This improves response times, reduces lag, and improves overall user gameplay.

In addition to reduced latency, CN2 offers higher bandwidth capacity, allowing faster data transfer and improved live streaming capabilities. This is especially important for popular online games that feature live tournaments or events, as it enables a more seamless viewing experience for fans. With CN2’s advanced infrastructure, businesses can deliver high-quality streams without compromising speed or stability.

Moreover, CN2 also offers direct connections to Chinese internet service providers, bypassing the traditional routing through multiple networks. This eliminates potential network congestion and bottlenecks, resulting in a more stable and reliable user connection. With CN2’s optimized infrastructure, businesses can provide a superior gaming experience to their Chinese users, leading to higher engagement and retention rates. Overall, CN2 significantly enhances the gaming experience in China, making it an invaluable resource for businesses in the online gaming industry.

What are the Challenges of Online Gaming in China?

While China’s e-sports and online gaming market may offer immense opportunities, it also presents several challenges for businesses in this industry. One of the significant obstacles is navigating through the country’s strict regulatory framework, which includes obtaining licenses and approvals from various government agencies. This process can be time-consuming and complex, making it challenging for companies to enter or expand their presence in the market.

Additionally, China’s Great Firewall, which blocks access to specific websites and services, can pose challenges for businesses looking to provide online gaming services. This can affect server connectivity and performance, resulting in a less-than-optimal gaming experience for users.

However, CN2 addresses these challenges by offering direct connections to Chinese internet service providers, bypassing the Great Firewall, and providing a more stable connection for users. CN2 also works with businesses to obtain necessary licenses and approvals, streamlining the process and reducing potential obstacles in entering the Chinese market.

While there are challenges regarding online gaming in China, CN2’s optimized infrastructure helps businesses overcome these hurdles and tap into the country’s immense potential for e-sports and online gaming.

How Can Game Developers Leverage CN2 for Market Entry?

For game developers and publishers looking to enter the Chinese market, CN2 can be a valuable resource in achieving success. One of the key strategies is leveraging CN2’s advanced infrastructure for improved game performance. By optimizing their games to align with CN2’s capabilities, developers can provide a faster and more stable experience for Chinese users, leading to higher engagement and retention rates.

In addition to game optimization, developers can utilize CN2’s direct connections to Chinese internet service providers for enhanced market reach. By partnering with CN2, businesses can access a more comprehensive network of users and potential customers in China, increasing their chances of success in the market.

Furthermore, CN2 offers support and guidance for game developers and publishers looking to enter the Chinese market. With its extensive experience and knowledge in the industry, CN2 can assist businesses in navigating the regulatory landscape and obtaining necessary approvals, streamlining the market entry process.

Is CN2 Compliant with China’s Internet Regulations for Gaming?

As an international gaming company, ensuring compliance with China’s strict internet regulations is crucial when entering the market. Fortunately, CN2 aligns with these regulations and offers a solution for businesses looking to provide online gaming services in China. CN2’s infrastructure has been designed to comply with Chinese laws and regulations, ensuring companies can operate within the country’s legal framework.

One of the primary concerns for gaming companies in China is obtaining necessary licenses and approvals from government agencies. CN2 offers support and guidance in this process, streamlining the administrative procedures and reducing potential barriers to market entry. Additionally, CN2’s direct connections to Chinese internet service providers help businesses comply with regulations related to server hosting within the country.

Compliance with China’s internet regulations is crucial for gaming companies to succeed in the market. CN2’s infrastructure and services provide a solution for businesses looking to enter or expand their presence in China while adhering to the country’s strict regulatory framework. So, it can be a crucial factor for success in the Chinese online gaming industry.

Can CN2 Help in Scaling Gaming Services in China?

For gaming companies looking to scale their services in China, CN2 offers numerous benefits to help them achieve this goal. One of the key advantages is CN2’s ability to handle high traffic and maintain consistent performance. With its advanced infrastructure and direct connections to Chinese internet service providers, CN2 can support large volumes of users without compromising on speed or stability.

Moreover, CN2’s optimized infrastructure also allows for efficient data distribution, resulting in a smoother and faster gaming experience for users. This is especially important for multiplayer online games requiring real-time player interactions. With CN2, companies can ensure their services can handle high traffic volumes without technical difficulties.

In addition to handling high traffic, CN2 also supports scalability by offering customizable solutions for businesses. This allows gaming companies to adapt their services and infrastructure according to their needs, whether expanding into new regions or rolling out updates for existing games. As a result, CN2 can play a crucial role in helping gaming companies successfully scale their services in China.

What is the Future of CN2 in China’s Gaming Industry?

As the gaming industry in China continues to grow, the future for CN2 looks promising. With its advanced infrastructure and services, CN2 is well-positioned to support the evolving needs of gaming companies in the country. One potential trend that could impact CN2’s role in the industry is the rise of cloud gaming. As more users turn to streaming games rather than downloading them, CN2’s infrastructure and direct connections to internet service providers will become even more crucial in ensuring a smooth and stable gaming experience.

Moreover, as technology advances, there may be opportunities for CN2 to integrate emerging technologies into its services. For example, with the increasing popularity of virtual reality (VR) and augmented reality (AR), CN2 could support these technologies, allowing gaming companies to incorporate them into their services and cater to a growing market of VR/AR users in China.

In conclusion, CN2 is well-equipped to adapt and evolve with the changing landscape of China’s gaming industry. Its advanced infrastructure, compliance with regulations, and customizable solutions make it a valuable partner for international gaming companies looking to enter or expand in the Chinese market.

Conclusion

In conclusion, CN2 is crucial for international gaming companies looking to enter or expand their presence in China’s e-sports and online gaming market. With its compliance with Chinese regulations, streamlined administrative procedures, and advanced infrastructure, CN2 offers the necessary support and resources for businesses to succeed in this highly regulated market. Additionally, as the industry continues to evolve and new technologies emerge, CN2 is well-equipped to adapt and support the future needs of gaming companies in China. Contact EdgeNext CN2 & Gaming Expert today!

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EdgeNext Technology
EdgeNext Technology

Written by EdgeNext Technology

Global edge cloud service provider specializes in APAC, China, and MENA cloud delivery