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Winning Shanghai IPTV Expansion Bids Revealed

Sohu IT, 3/11/08

An inside source has revealed that bidding results for the third phase of Shanghai Telecom's IPTV expansion project have been disclosed, with UTStarcom (Nasdaq: UTSI) and ZTE (0763.HK; 000063.SZ) building on earlier wins, and Huawei also securing a position owing to its price advantages.

This round of IPTV network construction comprises 300,000 lines, 250,000 of which will be provided by ZTE and UTStarcom for expansion in areas that already have IPTV. 50,000 lines will be added by Huawei in two new areas including Baoshan, after the company beat out Alcatel-Shanghai Bell (ASB) in its bid. Reportedly, ZTE and UTStarcom made major price concessions on their bids, while Huawei used a strategy of "giving away" in order to increase its market share.

At present, the service model for Shanghai Telecom's IPTV network focuses mainly on regular broadcasts, pay-per-view, data services and application services. This year, the company intends to experiment with new offerings including themed content packages, high-definition programming, and integrated interactive applications.

Keywords: HDTV China Telecom CHA 0728.HK 000063.SZ 0763.HK ASB bidding expansion Huawei IPTV programming Shanghai Telecom strategy telecom television UTSI UTStarcom ZTE

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