Rumor: China Mobile, Guangdong Cable TV Partner on STB Wi-Fi
21st Century Business Herald, 8/07/12
China Mobile's (NYSE: CHL; 0941.HK) Guangdong branch and Guangdong-based provincial cable TV network operator Guangdong Cable TV Network recently signed a integrated services cooperation agreement, according to which Guangdong Cable will install mobile Wi-Fi modules in nearly 10 mln DTV set-top boxes (STBs). Guangdong Mobile will offer broadband services to Guangdong Cable TV's nearly 10 mln subscriber households. Guangdong Cable TV will investigate revenue sharing methods, while the two companies will continue to discuss possibilities for joint marketing and bundled sales.
Since January 2012, Guangdong Cable TV has provided free HD STB upgrades to existing DTV STB subscribers in the Guangzhou area, but has seen DTV conversion growth slow due to China Telecom's (NYSE: CHA; 0728.HK) aggressive free IPTV services promotional efforts.
China Telecom's IPTV user base has grown rapidly this year, reaching 20 mln in July, including over 2 mln in Guangdong province.
Previously, Shanxi Mobile and Shanxi Cable & Broadcasting Network had a similar partnership, but it dissolved after two years when the two companies failed to agree on new revenue sharing terms meeting Shanxi Mobile's demand for a larger share.
Keywords: Guangdong Mobile Shanxi Mobile China Mobile IPTV broadband television Wi-Fi Guangdong Cable TV DTV cable TV CHL 0941.HK wireless networking bundling set-top box
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