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China Telecom Announces IPTV Procurement Firms, 8/25/08

China Telecom (NYSE: CHA; 0728.HK) has announced the winning lists of equipment manufacturers that provincial branches should use for IPTV 2.0 platform and terminal equipment procurement. The winning manufacturers were split into three areas: systems platforms, standard-definition terminals and high-definition terminals.

For systems contracts, telecom equipment manufacturers ZTE (0763.HK; 000063.SZ), UTStarcom (Nasdaq: UTSI), and Alcatel-Lucent were chosen, and provincial operators looking to build new systems should select from the offerings of these three companies.

For standard-definition terminal contracts, the winning companies included ZTE, UTStarcom, Coship (002052.SZ), Motorola, Huawei, Postcom, Sunniwell, Alcatel-Lucent, Yuxing, 30 Kaitian and Changhong (600839.SH). China Telecom requested that provincial operators give preference to manufacturers ranked earlier in this list.

For high-definition terminal contracts, provincial branches can choose between ZTE, UTStarcom, Alcatel-Lucent, Postcom and Changhong.

The prices for terminal equipment will be set at the prices used by the companies when applying for procurement status, and China Telecom branches are not allowed to instigate a second round of price negotiation or discounting.

Keywords: UTStarcom Internet Sunniwell Yuxing 30 Kaitian 000063.SZ 002052.SZ 0728.HK 0763.HK 600839.SH Alcatel-Lucent CHA Changhong China Telecom Coship Huawei IPTV Motorola Postcom procurement television UTSI ZTE HD


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