The State Administration of Radio, Film and Television (SARFT) announced its purchase of 1 million CMMB terminals -- including handsets, media players, positioning devices, USB keys and other products -- on December 23, reports 163.com. Lenovo (992.HK), ZTE (763.HK, 000063.SZ), Beijing Tianyu Communication Equipment, UTStarcom (Nasdaq: UTSI), Digital China (861.HK), Samsung and Datang Telecom (600198.SH) were among the companies winning government contracts. Around 120 terminal manufacturers entered 400 terminals in the bidding; thirty-three handset makers were awarded contracts.
source:jlmpacificepoch.com
Wednesday, December 24, 2008
Monday, December 22, 2008
China to Issue Standards for Digital TV Sets
Wang Xiaojie, director of the State Administration of Radio, Film and Television (SARFT)'s Science and Technology Department, has stated that new manufacturing standards will be released next year designed to accelerate the custom manufacturing of high-definition televisions. The standards will include interface standards, terminal standards, sound frequency standards, and copyright protection standards. According to Wang, the continuing focus on overall national development will also aid the promotion of high-definition television terminals.
Service standards will be a main focus of the digital television industry in 2009 and will include the development of new service and business systems, cable television networks, and service oversight management models. The department is currently inviting comments and advice.
Another focus for 2009 will be high-definition program content.
Source:www.marbridgeconsulting.com
Tuesday, December 16, 2008
The development and trend of China's IPTV Industry
Development of IPTV
IPTV as a new television show of the new forms of digital media, increasingly valued by customers become an irresistible trend. With the global trend of rapid development of IPTV, along with domestic operators of commercial IPTV test areas and gradually expand the scale of the IPTV consumers in general, as well as the rising level of awareness in the total amount of small-scale users on the basis of maintaining China's IPTV A steady and rapid growth, IPTV users in 2003 from 1.8 million in 2004 to 46,000 in 2007 increased to 1,208,000. To enter in 2008, although the telecommunications industry in the industrial restructuring of the various aspect of the delay was caused by Weila set against the backdrop of the adverse effects of China's total number of IPTV subscribers is still maintained a sustained and rapid growth. As of the third quarter, the total number of subscribers reached 2,200,000. It is estimated that by the end of 2008, the National IPTV subscribers will exceed 3,000,000, and last year increase to more than 1.5 times.
IPTV services such as Internet audio and video programs confirmed the development of the telecommunications industry media properties. On the TV content itself with traditional television (cable, wireless, satellite) compared to, IPTV may not make a difference. However, due to network the existence of interactive features, so IPTV can be more readily available, such as video-on-demand, interactive games, such as interactive value-added services. Telecom restructuring has changed the existing structure of the telecom operators, China Telecom will be the development of IPTV pioneer, China Unicom is the IPTV business of followers, China Mobile will be relying on its financial strength, will be the development of IPTV as part of its fixed-line business, the main means of , And the development of the industry for more help.
The existence of the development of IPTV in China and its policy of the reasons
1. China's major IPTV Development
IPTV represents the development direction of the three networks. However, the development of IPTV in China the status quo is not satisfactory, in particular the overall size of the apparent small. A huge user base of broadband IPTV is a solid foundation for sustainable development. How to broadband users to develop IPTV users of telecommunications companies, such as IPTV is the main operator needs to be urgently addressed.
IPTV is set to the Internet, telecommunications, entertainment and so on into a new business, which involves not only TV but also end PC terminals. As a result, traditional single telecommunications management adapted to a certain extent, the development of IPTV business. From 2003 to date, after five years of operation, operator of China's IPTV business model is still faced with the problem and the ecological chain, such as content, business model, charging patterns and ecological chain, and so on, are still faced with the problem of sustainable development, but the operators Are actively exploring their own development model. So far, it can not be said to have found a fully fit development of IPTV business model and profit model.
IPTV and the like, from a global point of view, digital TV, including the integration of business operations are still in the exploratory stage. The cost is profitable addition to the factors, the size of the user to expand and enhance its ARPU has become key. The development of digital TV is the case, and only rely on traditional advertising profits are also problematic.
IPTV is a digital content such as digital media to attract new users to one of the fundamental driving force. With the new digital media and the explosive growth of per capita consumption of media increases, content is king coming days. However, the main operator of China's major IPTV - China Telecom, China Mobile and China Unicom, and other state-owned telecommunications companies are not content with a competitive advantage. China's Internet copyright chaotic situation, as well as free business forms, the value of IPTV content to form a larger pressure. IPTV part of the operating costs of intellectual property rights have already suffered too much and so on; the current spread of IPTV mainly based on traditional television programs, new attractive new digital media content still lack. In fact, even if our country is the traditional television programs can not satisfy the audience's thirst for media content, only 15% of the television program is broadcast from the self-made content.
IPTV has the characteristics of the regional market competition. From the perspective of competitiveness, each of the IPTV operators are facing competition is the first local radio and television systems. To a large extent, IPTV greatest obstacle to the development of the industry from local radio and television systems. At present, some parts are from a building, agriculture and other industries to teach business to start, gradually expand in the telecommunications and IPTV operators to cooperate on the scope and level of cooperation.
2. IPTV development in China's deep-seated reasons
The development of IPTV in China, there are many problems can not be denied that with the market and enterprises are closely related, and that the market mechanism based on the relationship between restricting the decisive factor in the development of IPTV. For example, does not have the right business model and profit model. At the same time, policy barriers to the development of IPTV is a major constraining factor. China has adopted a bottom-up, up and down combination of the three networks to promote institutional and policy innovations. Jan 8, 2008, the Office issued in 2008 【1】 release, the three networks emphasized the need to promote, encourage each other and opening up telecommunications and broadcasting and cross-business. The article clearly for the first time a state-owned capital to participate in the construction of digital TV access network, such as for the integration of IPTV business to clear away the obstacles to the policy. January 31, the former General Administration of Radio, Film and Television and the Ministry of Information Industry jointly issued the "Internet audio-visual program service regulations," the official beginning of the implementation, in order to regulate the Internet, IPTV, including audio-visual program service order to provide a legal basis for some of the amendments to the "Internet , And other audio-visual programs to disseminate information network management practices "for non-broadcasting businesses unfair regulatory approach.
However, the three networks in China-related institutions and policies are still inadequate and contradictory, some of the more principled policy, the lack of actual operation. Based on the traditional industry sector interests and the interests of the relevant government departments may make their most favorable interpretation, which will continue to constraints such as the integration of IPTV business. The current policy of the main problems: First, the ownership of discrimination, and the other is discrimination sector. China's national conditions, as well as telecommunications does not have the contents of the competitiveness of the fact that the decision of the IPTV industry out of Radio, Film and Television and difficult to separate. With the IPTV industry gradually in-depth, with the existing operators, such as a license to carry out the main co-pilot's success, since the demonstration effect of industrial development to help grow. However, if we do not change the system of local radio and television hostile attitude, even if the telecommunications companies get IPTV licenses are difficult to break the shackles of local radio and television. Therefore, the IPTV business operations, the existing policy framework, the development of IPTV to do a good job of the top-level design, and for local radio and television departments formation of a strategic alliance (at least one of the partners), with local radio and television industry to achieve win-win cooperation Is essential.
IPTV as a new television show of the new forms of digital media, increasingly valued by customers become an irresistible trend. With the global trend of rapid development of IPTV, along with domestic operators of commercial IPTV test areas and gradually expand the scale of the IPTV consumers in general, as well as the rising level of awareness in the total amount of small-scale users on the basis of maintaining China's IPTV A steady and rapid growth, IPTV users in 2003 from 1.8 million in 2004 to 46,000 in 2007 increased to 1,208,000. To enter in 2008, although the telecommunications industry in the industrial restructuring of the various aspect of the delay was caused by Weila set against the backdrop of the adverse effects of China's total number of IPTV subscribers is still maintained a sustained and rapid growth. As of the third quarter, the total number of subscribers reached 2,200,000. It is estimated that by the end of 2008, the National IPTV subscribers will exceed 3,000,000, and last year increase to more than 1.5 times.
IPTV services such as Internet audio and video programs confirmed the development of the telecommunications industry media properties. On the TV content itself with traditional television (cable, wireless, satellite) compared to, IPTV may not make a difference. However, due to network the existence of interactive features, so IPTV can be more readily available, such as video-on-demand, interactive games, such as interactive value-added services. Telecom restructuring has changed the existing structure of the telecom operators, China Telecom will be the development of IPTV pioneer, China Unicom is the IPTV business of followers, China Mobile will be relying on its financial strength, will be the development of IPTV as part of its fixed-line business, the main means of , And the development of the industry for more help.
The existence of the development of IPTV in China and its policy of the reasons
1. China's major IPTV Development
IPTV represents the development direction of the three networks. However, the development of IPTV in China the status quo is not satisfactory, in particular the overall size of the apparent small. A huge user base of broadband IPTV is a solid foundation for sustainable development. How to broadband users to develop IPTV users of telecommunications companies, such as IPTV is the main operator needs to be urgently addressed.
IPTV is set to the Internet, telecommunications, entertainment and so on into a new business, which involves not only TV but also end PC terminals. As a result, traditional single telecommunications management adapted to a certain extent, the development of IPTV business. From 2003 to date, after five years of operation, operator of China's IPTV business model is still faced with the problem and the ecological chain, such as content, business model, charging patterns and ecological chain, and so on, are still faced with the problem of sustainable development, but the operators Are actively exploring their own development model. So far, it can not be said to have found a fully fit development of IPTV business model and profit model.
IPTV and the like, from a global point of view, digital TV, including the integration of business operations are still in the exploratory stage. The cost is profitable addition to the factors, the size of the user to expand and enhance its ARPU has become key. The development of digital TV is the case, and only rely on traditional advertising profits are also problematic.
IPTV is a digital content such as digital media to attract new users to one of the fundamental driving force. With the new digital media and the explosive growth of per capita consumption of media increases, content is king coming days. However, the main operator of China's major IPTV - China Telecom, China Mobile and China Unicom, and other state-owned telecommunications companies are not content with a competitive advantage. China's Internet copyright chaotic situation, as well as free business forms, the value of IPTV content to form a larger pressure. IPTV part of the operating costs of intellectual property rights have already suffered too much and so on; the current spread of IPTV mainly based on traditional television programs, new attractive new digital media content still lack. In fact, even if our country is the traditional television programs can not satisfy the audience's thirst for media content, only 15% of the television program is broadcast from the self-made content.
IPTV has the characteristics of the regional market competition. From the perspective of competitiveness, each of the IPTV operators are facing competition is the first local radio and television systems. To a large extent, IPTV greatest obstacle to the development of the industry from local radio and television systems. At present, some parts are from a building, agriculture and other industries to teach business to start, gradually expand in the telecommunications and IPTV operators to cooperate on the scope and level of cooperation.
2. IPTV development in China's deep-seated reasons
The development of IPTV in China, there are many problems can not be denied that with the market and enterprises are closely related, and that the market mechanism based on the relationship between restricting the decisive factor in the development of IPTV. For example, does not have the right business model and profit model. At the same time, policy barriers to the development of IPTV is a major constraining factor. China has adopted a bottom-up, up and down combination of the three networks to promote institutional and policy innovations. Jan 8, 2008, the Office issued in 2008 【1】 release, the three networks emphasized the need to promote, encourage each other and opening up telecommunications and broadcasting and cross-business. The article clearly for the first time a state-owned capital to participate in the construction of digital TV access network, such as for the integration of IPTV business to clear away the obstacles to the policy. January 31, the former General Administration of Radio, Film and Television and the Ministry of Information Industry jointly issued the "Internet audio-visual program service regulations," the official beginning of the implementation, in order to regulate the Internet, IPTV, including audio-visual program service order to provide a legal basis for some of the amendments to the "Internet , And other audio-visual programs to disseminate information network management practices "for non-broadcasting businesses unfair regulatory approach.
However, the three networks in China-related institutions and policies are still inadequate and contradictory, some of the more principled policy, the lack of actual operation. Based on the traditional industry sector interests and the interests of the relevant government departments may make their most favorable interpretation, which will continue to constraints such as the integration of IPTV business. The current policy of the main problems: First, the ownership of discrimination, and the other is discrimination sector. China's national conditions, as well as telecommunications does not have the contents of the competitiveness of the fact that the decision of the IPTV industry out of Radio, Film and Television and difficult to separate. With the IPTV industry gradually in-depth, with the existing operators, such as a license to carry out the main co-pilot's success, since the demonstration effect of industrial development to help grow. However, if we do not change the system of local radio and television hostile attitude, even if the telecommunications companies get IPTV licenses are difficult to break the shackles of local radio and television. Therefore, the IPTV business operations, the existing policy framework, the development of IPTV to do a good job of the top-level design, and for local radio and television departments formation of a strategic alliance (at least one of the partners), with local radio and television industry to achieve win-win cooperation Is essential.
The development trend of China's IPTV
Industrialization, information technology, urbanization, marketization and internationalization in-depth development of China's modernization facing the new situation and new tasks. Promote the integration of information technology and industrialization in China is facing long-term task. China's radio and television broadcasting, telecommunications and the Internet, and so different from the original network of industrial facilities is to speed up the separation of industry from the industry to integrate the pace of industrial development is the trend. Against this background, especially 2008 as a new round of political reform and related policy adjustments, China, including IPTV, the business of the three networks are entering the period of rapid development.
IPTV competitive advantage from their personal, humane content of television programs and interactive forms. With the application of the universal constant, the size of the expansion of the market, IPTV market will attract more content providers, content integrators and value-added service providers to enter, they will be content innovation, business model to explore the more extensive Development. With the TD-SCDMA large-scale commercial and a new round of the completion of the restructuring of telecommunications, 3G has entered the mass market. From the users point of view, 3G end-user IPTV can be an effective extension of the terminal. With 3G terminal personalized, IPTV people-oriented development goals will be a great release.
With the new round of restructuring of the telecommunications, operators of different development strategies for the development of IPTV will be a different form. However, the Encyclopedia of the three telecom operators in terms business, IPTV will be in its portfolio a very important area; IPTV licenses have been 5 IPTV license operators has With the 2008 Beijing Olympic Games force the beginning of IPTV; and radio and television operators Two-way digital television business through the transformation of the interactive and also to promote the new digital media transition. It is estimated that by the end of 2008, China will have 3,000,000 IPTV subscribers by 2011, China's total number of IPTV subscribers will reach 22,000,000.
IPTV industry is a win-win situation and the development of digital TV the only way to integration. IPTV media properties require operators IPTV market-based, network-oriented and customer-focused, with the media, entertainment and information content of the service. IPTV business operations in the heart of the problem is not access bandwidth, but on the content, which is the weak telecommunications. Therefore, in order to meet the needs of the market must play IPTV and digital television functions complement each other. In addition to the functions of each other, but also in the area covered by each other on. In those areas beyond the reach of cable TV, IPTV has a lot of room for development.
IPTV is the next generation network (NGN) in one of the most important business, the future digital home is a very important form of a business. With the development of ICT, telecommunications network, Internet, cable television network has become an inevitable trend of the three networks. The three networks require the development of PC and TV terminals terminal can be connected at the same time the Internet and cable television network, access the Internet at the same time be able to receive digital TV broadcasting. Access to a variety of ways in order to be able to co-exist to ensure that the best way to provide unicast, multicast, and broadcast a two-way interactive services, to meet the new digital media. In such a trend, the telecommunications and broadcasting industry value chain integration is also bound to follow suit to achieve. IPTV and digital TV operators should be the main differences aside and learn from each other each other's development strategy, operations experience, the three networks to work together to promote and achieve a harmonious development of the industry's new win-win situation.
Fourth, to further promote the development of IPTV in China's policy initiatives
Comply with the general trend of the three networks to promote the development of IPTV is a systems engineering, government and the need to be responsible for their own market, and mutual cooperation. "Visible hand" of the market and the "invisible hand" of the border have their own role, the market mechanism is the basis for policy is to protect the mechanism. IPTV in the world and the rapid development of China's accelerating industrialization and information technology integration of the environment, the need to take full advantage of market mechanism on the basis of the three networks to strengthen the system of policy effects, based on the size of the effect of IPTV, telecom and nurturing of Radio, Film and Television Competing effect, to promote digital TV and other new media cluster effect, in order to effectively promote China's IPTV industry to further the sustained, rapid and coordinated development.
1. Strengthen the system effect, amend the "dissemination of information network audio-visual programs permit" issued classification standards, expand the scope of opening up the domestic IPTV, the development of Internet audio-visual services, business directory guide, the development of IPTV to do a good job of institutionalization and standardization work to co-ordinate the promotion of the three network Integration policies, to achieve an effective policy coordination to eliminate the constraints of the three networks structural obstacles and policy factors.
2. Based on economies of scale to the planning-oriented, up and down, make breakthroughs in key areas and expand the scope and application of IPTV market, promote the industrialization of operations. The three networks aim to promote the industrialization of IPTV operators. Radio, Film and Television IPTV sector to increase the scope of application for a license and license number of state-owned telecommunications companies issuing national IPTV operator license. At the same time, have to deal with the rapid IPTV business applications and can not be dismissed without cause the application. Encourage strategic investors to invest in state-owned IPTV to provide digital content-related businesses, enhance the number of IPTV content supply capacity.
3. Cultivate a competing effect, the IPTV market supervision in accordance with the law unfair competition and monopoly (especially administrative monopoly), to encourage telecommunications, radio and television operators such as the strengthening of the main technical, operational, marketing and strategic levels.
4. Telecommunications companies with experience in operating and capital to promote digital TV access network construction and transformation of the backbone network to speed up the pace of industrialization of digital TV, IPTV and audio-visual programs such as Internet services become common digital new media business market.
TCL and Intel develop next-generation Internet TV
Out of each other coveted each other's markets, Intel and TCL of the two hit it off the industry's big brothers a few days ago, announced the joint development of next-generation Internet TV.
Reporters learned that flat-panel TVs in recent years has experienced 400% growth, homogeneous market of serious price war as a major means of competition, the development of flat-panel TVs need to find new growth points. TCL chairman Li Dongsheng this view is that the Chinese color TV industry to be in transition, the Internet and television industry is likely to the birth of a new home appliance business model is to promote the growth of the market can look forward to strength.
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Li Dongsheng said that Internet applications will be moved to television needs a lot of innovation, of which there are two points worth noting, one of the Internet to connect with the main function of television is not often in the face in peacetime use of the Internet crowd, and the other is the increasing price of the ordinary television The lower the cost of ultra-high digital home appliances will break the ice.
According to the MOU, Intel and TCL will cooperate in the development, Internet connectivity with television, including TCL to provide support for the Intel Internet, high-definition player function, such as chips, TCL can make a relatively cheap price to provide users with "Internet television" .
The industry pointed out that China has entered the era of WEB2.0, information sharing, networking is becoming daily life and work are essential to the survival mode, and the bearer of these media platforms are increasingly bearing the mass of information to the PC's TV transition And improve the function of IPTV could be the birth of television media to become "home entertainment media center."
Reporters learned that flat-panel TVs in recent years has experienced 400% growth, homogeneous market of serious price war as a major means of competition, the development of flat-panel TVs need to find new growth points. TCL chairman Li Dongsheng this view is that the Chinese color TV industry to be in transition, the Internet and television industry is likely to the birth of a new home appliance business model is to promote the growth of the market can look forward to strength.
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Li Dongsheng said that Internet applications will be moved to television needs a lot of innovation, of which there are two points worth noting, one of the Internet to connect with the main function of television is not often in the face in peacetime use of the Internet crowd, and the other is the increasing price of the ordinary television The lower the cost of ultra-high digital home appliances will break the ice.
According to the MOU, Intel and TCL will cooperate in the development, Internet connectivity with television, including TCL to provide support for the Intel Internet, high-definition player function, such as chips, TCL can make a relatively cheap price to provide users with "Internet television" .
The industry pointed out that China has entered the era of WEB2.0, information sharing, networking is becoming daily life and work are essential to the survival mode, and the bearer of these media platforms are increasingly bearing the mass of information to the PC's TV transition And improve the function of IPTV could be the birth of television media to become "home entertainment media center."
102 Handset Manufacturers Participate in CMMB Bids
CMMB operator China Satellite Mobile Broadcasting Corporation (CSMBC) is holding on-site bidding for the procurement of approximately 1 mln CMMB handsets, with 102 handset manufacturers participating. The average cost per set is RMB 800.
Previously CSMBC branch companies had already begun accepting tenders from local manufacturers, however this is the first time that the parent company has publicly called for CMMB handset tenders. A source participating in the handset bidding stated that the first orders from CSMBC would not be particularly large, suggesting that the current bidding should be considered a trial for future procurements.
source:marbridgeconsulting.com
Saturday, December 6, 2008
Telegent bucks the digital trend in mobile TV
Shanghai. December 5. INTERFAX-CHINA - Mobile companies are rushing towards 3G in China, and scrambling to offer more services to secure more customers. However, could they be losing sight of that central business tenet: know thy customer?
Cathy He, business development director of Telegent Systems Co. Ltd., is someone who believes so. She spoke to Interfax recently about the business opportunities offered by the analog TV chips her company makes - a technology that may be deemed "out-of-date" by those rushing to embrace its digital counterpart.
Telegent has developed its business worldwide, shipping over 20 million mobile TV chips in the last two years.
According to He, just 5 percent of the world's population is covered by digital TV signals. "When other companies are fighting for the 5 percent of digital mobile TV users, our company focuses on the remaining analog users," He said. "We are the first and probably the only company in the world that focuses on analog mobile TV chips."
He, who holds an MBA from the New York Institute of Technology and is a company management tutor with years of experience in handset sales, believes the first thing for a business is to know its target users and how to influence them.
"In China, many digital mobile TV chip manufacturers think of their consumers as high earners. However, our research shows that 80 percent of mobile TV users are migrant workers," He said.
"Many companies are working on digital mobile TV services, thinking that white collar people should be given the most advanced technology, such as digital mobile TV. However, the most advanced technology isn't necessarily the most profitable technology. These digital mobile TV companies found that, while their adverts were put in high-end magazines, their chips were often used in Shanzhai handsets [low price handsets that ape famous brands and models]."
The reason for this, according to He, is that white collar workers are the wrong group to be targeting.
"White collar workers have TVs, they have Internet access, so they don't have to watch TV on such a small screen. On the other hand, after visiting hundreds of factories in China and talking to migrant workers, Telegent found that migrant workers like mobile TV because they have no other way to watch TV. It does not matter if it is analog or digital - the main users are always migrant workers. They don't care whether the technology is advanced or how clear the image is; they will be satisfied as long as they can watch TV easily and hopefully free of charge, as these workers may only earn several hundreds of Renminbi [RMB 100 = $14.53] per month."
He gave her assessment of the three methods of delivering mobile TV - analog TV, digital TV and mobile Internet streaming TV.
"The disadvantage of mobile Internet streaming is that availability is limited when too many people use a service at once. What's more, data fees are expensive," He said.
"As for mobile digital TV, which in China means using the CMMB standard, deployment has not been very fast. The plan is to expand CMMB TV services to 300 cities by the end of 2009, which means that it will take five to seven years for the service to reach all of China's 2,000 cities. What mobile TV option is there for people in cities with no access to CMMB mobile TV over this period?"
For He, analog mobile TV is currently the best method of delivery for reaching a wide audience at minimal cost. With the widespread coverage of analog TV signals across most countries, handsets with the ability to receive analog TV signals can be used in most parts of the world.
According to customer research conducted by Telegent, after three months of trial use of the analog TV handsets, 85 percent of customers classified analog TV as "very practical". The company also found that those surveyed used the analog TV function of their handsets an average of three times per week, while the frequency of using the MP3 and camera functions was less than once a week.
Telegent was established in the United States in 2004 and began mass chip production in 2005. To date, the company has shipped over 20 million chips, with monthly shipments of around 2 million at present.
The company conducts its R & D at its U.S. headquarters, and manages the sale of its chips to handset companies from its Shanghai, Beijing and Shenzhen branches. Telegent also works with Chinese handset manufacturers to sell handsets globally. It has cooperated with Chinese handset companies such as ZTE, Konka, K-Touch and Gionee, as well as large international handset companies. Two of the five largest international handset makers in the world are expected to release new products using Telegent chips in 2009, He said. Telegent claims that its analog mobile TV chips can be included in handsets without significantly increasing the retail price.
"Many foreign telecom operators come to China to purchase analog TV handsets powered by our chips," He said. "For example, there is a huge handset market in Dubai, where handsets won't sell unless they include an analog TV function."
Telegent even negotiates handset sales with foreign telecom operators on behalf of Chinese handset companies.
"We may be the only chip company that has a handset sales team," He said. "Our analog TV chips have helped Chinese handset companies to take market share from big international brands in places such as South-East Asia, the Middle East and South America."
As a comparison, He said that Telegent ships more analog mobile TV chips per month than the number of DVB-H digital mobile TV chips that have been shipped in Europe over the past few years.
The current global economic climate may also serve to boost Telegent's sales even further, He said.
"With the global financial crisis, people have less money, but they will not stop using handsets. Instead, they will choose cheaper and lower-end models," He said. "The two advantages of Chinese-made handsets are their low price and integrated functions."
Opportunities will also increase for Chinese handset makers in general.
"Chinese handset companies should pay more attention to handset quality and services in order to seize this chance," she continued. "When users find that these cheap Chinese handsets are good to use, they will go on using them even when the economic downturn ends."
However, many Chinese handset companies neglect to do market research. According to He, about two-thirds of the handsets that contain Telegent's chips are currently exported. However, as foreign currencies have devalued, many Chinese handset companies have chosen to halt all exports, He said.
He gave the example of the Brazilian Real, which has dropped heavily, while the Argentine Peso has dropped by a far smaller degree. "So why halt exports to Argentina?" He said.
"At first, we did not get involved in the handset market. When we found that many handset companies lacked a clear market strategy though, we started doing research on the handset market on their behalf," He said. "That's also why these companies like us."
Although the migration from analog to digital TV is an aim shared by many countries, by 2012 around 88 percent of the world's population will still only have access to analog TV signals. Even if China finishes digital TV migration in 2015, the majority of the world's population will still only be covered by analog TV signals.
Digital mobile TV also faces the hurdle of covering its costs. With China's CMMB digital mobile TV likely to be a paid-for service, handset companies that incorporate CMMB chips will have to convince users that mobile TV - an unfamiliar service - is worth paying for. He believes that the widespread use of analog TV-enabled handsets could serve to popularize the use of mobile TV in general, paving the way for users to upgrade to paid-for digital mobile TV in the future.
Although analog TV users will eventually become digital TV users, there is still long time to go before this process is complete, so the company will spend its time developing new profitable functions.
"We are now considering cooperating with operators to have the SMS function while watching mobile TV, which can enable people to directly vote for their idols while watching some star-making programs," He said.
source:www.interfax.cn
Cathy He, business development director of Telegent Systems Co. Ltd., is someone who believes so. She spoke to Interfax recently about the business opportunities offered by the analog TV chips her company makes - a technology that may be deemed "out-of-date" by those rushing to embrace its digital counterpart.
Telegent has developed its business worldwide, shipping over 20 million mobile TV chips in the last two years.
According to He, just 5 percent of the world's population is covered by digital TV signals. "When other companies are fighting for the 5 percent of digital mobile TV users, our company focuses on the remaining analog users," He said. "We are the first and probably the only company in the world that focuses on analog mobile TV chips."
He, who holds an MBA from the New York Institute of Technology and is a company management tutor with years of experience in handset sales, believes the first thing for a business is to know its target users and how to influence them.
"In China, many digital mobile TV chip manufacturers think of their consumers as high earners. However, our research shows that 80 percent of mobile TV users are migrant workers," He said.
"Many companies are working on digital mobile TV services, thinking that white collar people should be given the most advanced technology, such as digital mobile TV. However, the most advanced technology isn't necessarily the most profitable technology. These digital mobile TV companies found that, while their adverts were put in high-end magazines, their chips were often used in Shanzhai handsets [low price handsets that ape famous brands and models]."
The reason for this, according to He, is that white collar workers are the wrong group to be targeting.
"White collar workers have TVs, they have Internet access, so they don't have to watch TV on such a small screen. On the other hand, after visiting hundreds of factories in China and talking to migrant workers, Telegent found that migrant workers like mobile TV because they have no other way to watch TV. It does not matter if it is analog or digital - the main users are always migrant workers. They don't care whether the technology is advanced or how clear the image is; they will be satisfied as long as they can watch TV easily and hopefully free of charge, as these workers may only earn several hundreds of Renminbi [RMB 100 = $14.53] per month."
He gave her assessment of the three methods of delivering mobile TV - analog TV, digital TV and mobile Internet streaming TV.
"The disadvantage of mobile Internet streaming is that availability is limited when too many people use a service at once. What's more, data fees are expensive," He said.
"As for mobile digital TV, which in China means using the CMMB standard, deployment has not been very fast. The plan is to expand CMMB TV services to 300 cities by the end of 2009, which means that it will take five to seven years for the service to reach all of China's 2,000 cities. What mobile TV option is there for people in cities with no access to CMMB mobile TV over this period?"
For He, analog mobile TV is currently the best method of delivery for reaching a wide audience at minimal cost. With the widespread coverage of analog TV signals across most countries, handsets with the ability to receive analog TV signals can be used in most parts of the world.
According to customer research conducted by Telegent, after three months of trial use of the analog TV handsets, 85 percent of customers classified analog TV as "very practical". The company also found that those surveyed used the analog TV function of their handsets an average of three times per week, while the frequency of using the MP3 and camera functions was less than once a week.
Telegent was established in the United States in 2004 and began mass chip production in 2005. To date, the company has shipped over 20 million chips, with monthly shipments of around 2 million at present.
The company conducts its R & D at its U.S. headquarters, and manages the sale of its chips to handset companies from its Shanghai, Beijing and Shenzhen branches. Telegent also works with Chinese handset manufacturers to sell handsets globally. It has cooperated with Chinese handset companies such as ZTE, Konka, K-Touch and Gionee, as well as large international handset companies. Two of the five largest international handset makers in the world are expected to release new products using Telegent chips in 2009, He said. Telegent claims that its analog mobile TV chips can be included in handsets without significantly increasing the retail price.
"Many foreign telecom operators come to China to purchase analog TV handsets powered by our chips," He said. "For example, there is a huge handset market in Dubai, where handsets won't sell unless they include an analog TV function."
Telegent even negotiates handset sales with foreign telecom operators on behalf of Chinese handset companies.
"We may be the only chip company that has a handset sales team," He said. "Our analog TV chips have helped Chinese handset companies to take market share from big international brands in places such as South-East Asia, the Middle East and South America."
As a comparison, He said that Telegent ships more analog mobile TV chips per month than the number of DVB-H digital mobile TV chips that have been shipped in Europe over the past few years.
The current global economic climate may also serve to boost Telegent's sales even further, He said.
"With the global financial crisis, people have less money, but they will not stop using handsets. Instead, they will choose cheaper and lower-end models," He said. "The two advantages of Chinese-made handsets are their low price and integrated functions."
Opportunities will also increase for Chinese handset makers in general.
"Chinese handset companies should pay more attention to handset quality and services in order to seize this chance," she continued. "When users find that these cheap Chinese handsets are good to use, they will go on using them even when the economic downturn ends."
However, many Chinese handset companies neglect to do market research. According to He, about two-thirds of the handsets that contain Telegent's chips are currently exported. However, as foreign currencies have devalued, many Chinese handset companies have chosen to halt all exports, He said.
He gave the example of the Brazilian Real, which has dropped heavily, while the Argentine Peso has dropped by a far smaller degree. "So why halt exports to Argentina?" He said.
"At first, we did not get involved in the handset market. When we found that many handset companies lacked a clear market strategy though, we started doing research on the handset market on their behalf," He said. "That's also why these companies like us."
Although the migration from analog to digital TV is an aim shared by many countries, by 2012 around 88 percent of the world's population will still only have access to analog TV signals. Even if China finishes digital TV migration in 2015, the majority of the world's population will still only be covered by analog TV signals.
Digital mobile TV also faces the hurdle of covering its costs. With China's CMMB digital mobile TV likely to be a paid-for service, handset companies that incorporate CMMB chips will have to convince users that mobile TV - an unfamiliar service - is worth paying for. He believes that the widespread use of analog TV-enabled handsets could serve to popularize the use of mobile TV in general, paving the way for users to upgrade to paid-for digital mobile TV in the future.
Although analog TV users will eventually become digital TV users, there is still long time to go before this process is complete, so the company will spend its time developing new profitable functions.
"We are now considering cooperating with operators to have the SMS function while watching mobile TV, which can enable people to directly vote for their idols while watching some star-making programs," He said.
source:www.interfax.cn
Next-generation broadcasting and television network expected to be established in 10 years
The Ministry of Science and Technology and the State Administration of Radio, Film, and Television signed a cooperation agreement on December 4 in Beijing to jointly boost construction of China's next-generation broadcasting and television network.
According to the agreement, China will develop a next-generation broadcasting and television technology system to suit the country's conditions. The system will be based on developments in digital cable TV and China Multimedia Mobile Broadcasting (CMMB), as well as be supported by the core technology of High-Performance Broadband Information Network which was independently developed in China.
The next-generation broadcasting and television network is expected to take about 10 years to complete. The network will be a new generation of national information infrastructure with a fundamental feature of "integration of three networks," and aims to meet the demands of development in industries, including modern digital media and information services.
source:http://english.people.com.cn/
According to the agreement, China will develop a next-generation broadcasting and television technology system to suit the country's conditions. The system will be based on developments in digital cable TV and China Multimedia Mobile Broadcasting (CMMB), as well as be supported by the core technology of High-Performance Broadband Information Network which was independently developed in China.
The next-generation broadcasting and television network is expected to take about 10 years to complete. The network will be a new generation of national information infrastructure with a fundamental feature of "integration of three networks," and aims to meet the demands of development in industries, including modern digital media and information services.
source:http://english.people.com.cn/
Shanghai to Start CMMB Commercial Operations
Shanghai CMMB operator Oriental Pearl Group (OPG) (600832.SH) has stated that its CMMB network will begin official commercial operations on January 1, 2009, making it the first CMMB operator in China to do so. Mobile phone TV subscribers will pay a monthly fee of RMB 12 for the service, of which the State Administration of Radio, Film and Television (SARFT) will receive RMB 10, and the operator RMB 2.
A source at OPG has revealed that there will be a total of 100 CMMB retail outlets in Shanghai by the end of 2009, plus 10 CMMB demonstration centers.
In addition, Shanghai will receive 100,000 of the 1 mln handsets that will be purchased by SARFT in a bidding process that will be completed before the end of the year. The city will construct its own channel partner system for the SARFT tenders, and plans to purchase additional terminals in excess of the original tender.
source:marbridgeconsulting.com
Ministry of Science and Technology, SARFT Ally on Network Convergence
On December 4, China's Ministry of Science and Technology (MOST) and the State Administration of Radio, Film and Television (SARFT) signed the "National Cooperation Agreement for Innovation in High-Performance Broadband Data Networks and Next-Generation Broadcast Television Networks." MOST and SARFT will set up joint working organizations for cooperation on the construction of next-generation broadcast networks (NGB).
The primary objective of the agreement is to use digital cable and CMMB as the foundation for development of a model end-to-end, fully-converged NGB network combining fixed-line and wireless networks that will bring network coverage to all major cities nationwide, resulting in a Chinese NGB network within about ten years' time.
Core transmission bandwidth for NGB networks will be more than 1,000 Gbps, with more than 60 Mbps per user guaranteed, bringing broadband interactive data networks to a wide audience and ensuring the goal of bringing the "information superhighway" to every household over the coming 20 years.
source:marbridgeconsulting.com
Gehua to Launch JV to Operate DTV Channels
Chinese digital cable TV operator Beijing Gehua CATV Network (600037.SH) plans to invest RMB 20 mln to establish a new company with Shanghai Longyu Investment and Shenzhen Daohong Venture Capital Management that will operate and invest in digital television channels. With a share of 40% in the new company, Gehua will be the largest shareholder.
Once established, the new company will cooperate with channel operators in the areas of channel positioning, program planning, and the design of business models for digital channels. The new company will use a market-oriented approach to attract high-quality program production staff for the self-production of core programming content. At the same time it will outsource and enter agreements to obtain high-quality programming from other content suppliers.
Gehua has also announced that it plans to sell a 7.5% stake in Shenzhen-based DTV set-top box middleware provider iPanel back to iPanel for a price of RMB 63 mln. Gehua, which currently owns approximately 15% of iPanel, stated the move was part of a shareholder restructuring at iPanel in preparation for iPanel's IPO.
source:marbridgeconsulting.com
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