China's telcos, broadcast firms negotiate on profit-sharing plan

05 Oct 2006

(SinoCast via NewsEdge) China's telecom carriers and radio and TV enterprises are negotiating on possible profit-sharing arrangements for future mobile TV services.

Industry insiders say if the negotiations bear fruit, an ongoing dispute between telecommunications and broadcasting firms on which sector will "Ëœdominate' China's mobile TV market will come to an end.

Aside from the competition in business, telecom carriers and radio and TV companies also have disputes in technical standard.

At present, the mobile phone TV adopting DAB standard is promoted in Beijing for trial by radio and TV companies. To expand the user group and form the scale effect, all TV and radio programs are offered to users free of charge.

But the service will not be free any more after the launch of personalized interactive video-on-demand programs.

Radio and TV enterprises now transmit signals to mobile phones through radio and TV towers directly. They also cannot bypass telecom carriers particularly for video-on-demand services.

Market signs show that radio and TV enterprises have been aware of the 'competitive and cooperative' relationship with telecom carriers.

'The dominance in the mobile phone TV industry will not be changed, and radio and TV enterprises can join hands with telecom carriers at certain technological levels," said a director of the State Administration of Radio, Film, and Television of China. "If the negotiation can generate good effects, it will be good for both of the two parties."

© 2006 SinoCast

© 2006 Dialog, a Thomson business. All rights reserved

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