Rumor: China Mobile, CBC, CCTV to Form CMMB JV
Economic Observer, 2/10/12
According to a source within mobile phone TV operator China Broadcasting Corporation (CBC), China Mobile (NYSE: CHL; 0941.HK), China Central Television (CCTV), and CBC will establish a joint venture to provide an integrated platform for the entire China Multimedia Mobile Broadcasting (CMMB) mobile phone TV industry chain. CBC will be the largest shareholder, followed by China Mobile and CCTV. CCTV will provide content while China Mobile will provide terminals. Earlier rumors claimed that China Mobile would invest in CBC.
The source added that the Ministry of Industry and Information Technology (MIIT) has only authorized CMMB for TD-SCDMA handsets. Once the JV is established, the selection of CMMB-capable handsets will be limited, and partnerships with China Telecom (NYSE: CHA; 0728.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) will face implementation challenges in the short-term.
Apart from handsets, CBC is developing other types of CMMB terminals. CBC signed a strategic cooperation framework agreement with Dongfeng Automobile in Wuhan on February 8 to pre-install CMMB terminals in all Dongfeng car models. CBC also previously partnered with automakers FAW and Shanghai Automotive Industry Corporation (SAIC).
Editor's Note: For more background on this topic, please see "Rumor: China Mobile, CBC to Continue CMMB Cooperation" MD 2/07/12 issue.
Keywords: wireless China Mobile automobile television CMMB mobile phone TV CCTV JV CHL TD-SCDMA 0941.HK China Broadcasting Corporation
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