21st Century Business Herald, 2/04/10
Guo Qiang, general manager of the marketing department at China Broadcasting Corporation (CBC), the national operator of CMMB mobile TV, has said that the company is preparing a round of equity financing in order to fund nationwide network construction. The targets of this round are 100% state-owned corporations. CBC is currently a wholly-owned subsidiary of the State Administration of Radio, Film and Television (SARFT).
Guo said that the company's capital previously came mainly from SARFT's own funds and from bank loans, with total investment in the RMB 1.5-2 bln range. However, to complete future deployment, additional investment is needed.
The funds will primarily be used to build a nationwide operations system, nationwide unified technical support system, content platform, and for market expansion. According to informed sources, CBC's network and operational system construction over the next five years will require at least RMB 1 bln.
For its content platform, CBC still plans to cooperate with service providers, and may look to attract private and foreign investment.