Sohu IT, 1/21/15
Chinese telecom equipment and terminal manufacturer Huawei and Beijing-based internet TV service provider Global Union Network Technology, a subsidiary of China International Broadcasting Network (CIBN), have formed an exclusive strategic partnership to provide over the top (OTT) TV service. Huawei will use its technical expertise in telecom, content resources of Chinese online video site operator Youku Tudou (NYSE: YOKU), and CIBN's integrated broadcast and control platform (license) to open an operator's OTT market.
Chinese telecom operators usually provide a free OTT set-top box (STB) with the purchase of a broadband internet package. However, television broadcast network operators have successively switched to a DVB+OTT (Digital Video Broadcasting) model throughout the internet revolution in order to gain a competitive advantage with telecom operators in the field of IPTV. Both parties have requirements for content and licensing. Huawei has won bids to provide OTT platform solutions and OTT terminals for telecom operators in at least ten provinces, including Jiangsu, Anhui, Sichuan, and Jiangxi.
Global Union Network Technology was co-founded by Beijing-based new media platform operator Guo Guang Oriental Network, a direct subsidiary of CIBN, and Youku Tudou in August 2014. CIBN has also formed a TV Entertainment Alliance with Youku Tudou, Huawei, San Francisco-based 3D mobile game engine developer Unity Software, and others to develop OTT STB-based gaming business and open up the overseas OTT market.