China Telecom Bans IPTV HD STB Bids Below Cost

Lmtw.com, 11/21/12

China Telecom (NYSE: CHA; 0728.HK) has completed the application process for its 2012 IPTV HD set-top box (STB) tender and begun accepting bids, but the bid evaluation committee has added a new rule stating that vendors who submit bids for STBs priced below cost must provide sufficient explanation for doing so, otherwise the bid will be rejected. China Telecom added that its 2012 IPTV smart STB procurement tender is currently in the testing stage, and will later solicit bids.

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) launched its 2012 IPTV STB tenders on October 18, with the average price per unit reaching RMB 189.6 for SD STBs and RMB 285.6 for HD STBs, while the lowest bids for SD and HD terminals were RMB 172 and RMB 228.5, respectively, both record lows compared to RMB 186 and RMB 286 respectively in China Telecom's 2011 IPTV STB procurement tender.

Editor's Note: For more background on this topic, please see "China Telecom Submits First Smart STB Tender" MD 7/30/12 issue.

Keywords: China Telecom IPTV procurement television HD set-top box 0728.HK CHA bidding telecom

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