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SCT, Yinshi Ally to Develop DTV Market

Shanghai Securities News, 3/12/08

The SCT Group (0521.HK) has announced that it plans to partner with Yinshi DTV to form local DTV companies in cities throughout Guangdong. Yinshi DTV will control a 51% equity share in the local DTV projects; SCT Group subsidiary Yijiatong, in which the SCT Group controls an 80% interest, will control 49% of the local companies.

According to the plan, for 8 years after the launch of DTV by local cable companies, the local DTV project companies will pay 80% of after-tax earnings (minus licensing costs paid to local television stations and costs involved in the repayment of loans) to the SCT Group for technical support fees. The SCT Group predicts that the ventures will cover 60 cities in 13 regions throughout Guangdong province, and aims to serve as the integrated multimedia services platform for 10 mln cable DTV subscribers.

Keywords: SCT Group 0521.HK Yinshi DTV alliance Yijiatong cable TV users strategy DTV Guangdong television


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