China''s SMG to launch mobile TV -sources

Updated:2007/5/24 09:58

Shanghai Media Group, China''s second-largest media group by revenue, is expected to launch next week the country''s first TV service broadcast directly to mobile phones, sources close to the situation said on Wednesday.

The company is readying itself for China''s eventual rollout of third-generation wireless services -- expected ahead of the 2008 Beijing Olympics -- which would greatly enhance the speed and quality of the mobile TV service, the sources said.

Dragon New Media, a unit of SMG, has formed partnerships with China Mobile Group and China Unicom Group, the country''s two wireless carriers, to focus on mobile TV services.

Other investors in Shanghai-based Dragon New Media Co. include a foreign venture capital fund and Shanghai Oriental Pearl Co., which operates the city''s Oriental Pearl TV Tower, the sources said.

SMG and larger rival China Central Television (CCTV) have both won nationwide mobile TV permits from regulators, although CCTV''s mobile TV service is undergoing trials and only offers videos on demand for the time being, the sources said.

"SMG''s mobile TV service will be launched next week for full commercial use," said one source close to SMG, adding it will charge subscribers 10 yuan (66 pence) per month.

"SMG hopes that mobile TV will become a new profit stream for the group. We all know China''s 3G market has huge potential."

SMG declined comment.

Leading telecoms equipment makers such as Ericsson and Nokia are eyeing a potential $10 billion of network gear orders to build China''s 3G network.

Beijing has extended pre-commercial trials for its homegrown TD-SCDMA (time division synchronous code division multiple access) standard, but said last week it would deploy globally accepted standards WCDMA and CDMA2000 alongside TD-SCDMA.

China, which hopes to offer high-quality broadband Web access for visitors to the 2008 Olympics, is not expected to roll out 3G until later this year, or even next year, analysts have said.

Until China launches 3G, cellphone users will only be able to access the mobile TV service via the existing second-generation GPRS wireless services, the sources said.

SMG plans to hire presenters and producers to make original programming for the mobile TV service, which will also carry around 10 traditional TV channels, the sources said.

"Actually, it''s almost an independent TV station exclusively for subscribers to the mobile TV service," said another source.

SMG has also signed up with several 3G gear makers -- including Datang Telecom Technology Co. -- to jointly develop multimedia technology, the sources said.

($1=7.65 Yuan)

Source: uk.reuters