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Mainland prospects for IPTV a matter of definition

IPTV has long been seen as a potentially killer application by mainland telecom operators faced with declining fixed-line revenues as Chinese users replace their landlines with mobile phones.

One of those operators is China Network Communications Group Corp (Netcom), which set up a joint venture with PCCW to develop IPTV in the mainland.

Thus far, both Netcom and rival China Telecom are still offering the service on a trial basis, impeded by the lack of licensing from the country's media regulator, the State Administration of Radio, Film and Television.

But Earful has learned that IPTV has a different definition on the mainland from the 'internet protocol television' we know it as.

A source recently told Earful the industry actually defines IPTV as 'interactive, personal TV' and, with telecoms offering the service only on a trial basis, cable TV operators are also key players in IPTV.

In contrast, IPTV is strictly defined in Hong Kong as television broadcast via internet protocol (IP), such as PCCW's NOW TV service.

'In China, consumers don't care what technology you use ... IPTV is about offering advanced interactive TV, it does not necessarily mean TV conveyed via internet protocol,' said the source.

Because many cable operators in China are not profitable, they are offering interactive and on-demand channels to complement the normal cable channels they broadcast.

Aside from CCTV channels, they also offered choices of drama and video-on-demand, the source said, citing a cable operator in Hangzhou which is charging 50 yuan a month for the extra 'IPTV' service.

A similar approach has been adopted by China Telecom Corp. Chairman Wang Xiaochu said his firm's IPTV business aimed to focus more on interactive features and content such as interactive education and health care information services.

Thus, while personalised, interactive TV may not take off in Hong Kong after PCCW's Interactive TV (iTV) failed in 2002, some big money looks likely to be made in China.

DoComo pushes 3g

In a move to speed up 2G customers' migration to 3G, Japanese mobile phone giant NTT DoCoMo has stopped co-developing 2G handsets with handset suppliers, the Nihon Keizai Shimbum reports.

DoCoMo is halting research and development on 2G handsets as it wants to boost the number of its 3G FOMA customers, which now stands at just 25 per cent of the total subscriber base of 49 million. The firm also stopped accepting new applications for its PHS mobile service this month.

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