China Telecom's (NYSE: CHA; 0728.HK) Shanghai Research Institute announced it will begin testing IPTV set-top boxes (STBs) in preparation for further procurements for Shanghai's IPTV network.
The procurement round will focus more on high-definition (HD) STBs than standard definition (SD) STBs. The Shanghai Research Institute will begin testing on SD STBs on October 27, followed by HD STB testing in mid-November. China Telecom is expected to begin procurement work in late November or early December.
Twenty companies are participating in the tests, including new entrants such as Skyworth (0751.HK), TCL (000100.SZ), Hubei Fuqiao Electronics, Jiangsu Yinhe Electronics, and Chinese online video site LeTV (300104.SZ), as well as existing suppliers ZTE (0763.HK; 000063.SZ) and Huawei.
According to Lmtw.com, China Telecom had 5.36 mln IPTV subscribers as of August 2010, accounting for over 82% of national IPTV users.