China Netcom looksto IPTV
China Netcom, the country's second-largest fixed-line operator, said yesterday it planned to use broadband TV to boost its high-speed internet subscriber base and compensate for slowing growth in its core business.
Although internet protocol TV (IPTV) is still banned in most parts of China, Netcom last year launched a trial in the northern Heilongjiang province, and has signed up 48,000 subscribers.
"Once the government restriction is removed, we will make big investments in IPTV," said Zuo Xunsheng, senior vice-president and chief operating officer. He could not say when Beijing would relax its policy.
Like many fixed-line operators, such as Hong Kong's PCCW - in which Netcom has a 20 per cent stake - the Chinese operator has been promoting broadband as a source of growth in an otherwise maturing industry. Chinese telecoms companies are also waiting for the government to award 3G mobile licences, which it is expected to do this year or next.
Last year, revenue from the company's traditional businesses, such as localand long-distance calls,only grew 1.4 per centto Rmb64.6bn ($8bn), compared with growth of 50.2 per cent to Rmb7.8bn for broadband.
Mr Zuo said its IPTV business, which offers subscribers 41 satellite TV channels, 14 customised channels and pay-on-demand programmes for Rmb60 a month, has been a success.
Netcom hopes that by improving speed and content, it can further boost the number of broadband users. These grew 35.1 per cent to 11.48m last year, representing 13 per cent of fixed-line customers.
The company, which also offers a limited wireless service, plans to offer more fixed-line, mobile and broadband bundled services. It said broadband customers on average paid Rmb65.20 each per month last year, compared with fixed-line users' Rmb44.60.
Netcom yesterday reported a better-than-expected five-fold surge in 2005 net profit to Rmb13.9bn, compared with Rmb2.7bn in the previous year, helped by the inclusion of four new provincial operations and one-off gains.
Sales rose 4.5 per cent from Rmb83.5bn in 2004 to Rmb87.2bn last year.
Netcom in October completed the acquisition of four networks in Heilongjiang, Jilin, Inner Mongolia and Shanxi from its state-owned parent, which contributed 15 per cent to the company's bottom line last year.
Netcom's shares rose 5.2 per cent to HK$14.10.
中国网通计划大力发展IPTV
中国第二大固定电话运营商中国网通(China Netcom)昨日表示，计划借助宽频电视服务扩大其高速互联网订户基础，弥补其核心业务增长放缓的影响。
虽然交互式网络电视(IPTV)在中国多数地区仍在被禁之列，但中国网通去年在中国东北的黑龙江省推出了一个试验项目，已吸引了4.8万订户。
该公司高级副总裁兼首席运营官左迅生表示：“一旦政府取消限制，我们将大举投资IPTV。”但他无法预测政府何时将放宽相关政策。
