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Shanghai Media targets signing up 1.6m internet TV users this year

Shanghai Media Group aims to more than triple its internet protocol television subscribers by the end of the year to more than 1.6 million, a move that will also benefit network partners China Telecom and China Netcom, according to industry sources.

The group had 400,000 to 500,000 internet protocol television users in the first four months of this year with operations in Shanghai, Guangzhou and the northeastern part of the country, such as Heilongjiang province.

Shanghai is the single-largest market with more than 200,000 users while in the northeast the number exceeds 150,000.

'Shanghai Media will expand the coverage of its IPTV service this year to more than 20 cities, which will make China the largest IPTV market by the end of this year, surpassing Hong Kong,' the source said.

PCCW, which runs Now TV in Hong Kong, has claimed it is the world largest IPTV operator with more than 808,000 subscribers.

Growth in IPTV business as a new revenue stream is especially important for China Telecom and China Netcom, which lease infrastructure networks for Shanghai Media's services as their fixed-line phone users have been switching to mobile phones. The telecommunications firms have to rely on Shanghai Media because they still have not secured a licence from the State Administration of Radio, File and Television, the media industry regulator.

Shanghai Media expected to expand into coastal regions in the southeastern, northeastern and central parts of the mainland including Quanzhou in Fujian province, Chongqing and the Xinjiang Uygur autonomous region.

'Shanghai Media has reported to the regulator on the proposed IPTV service expansion,' said the source.

Shanghai Media Group could not be reached for comment yesterday.

The group is hoping that as another licence holder, China Central Television, was busy preparing for the Beijing Olympic Games, it could establish a stronghold in those untapped regions, another source said.

'The government seems to have adopted a 'first come, first served' system, as when one operator launches IPTV in a city, other operators are allowed to enter to avoid overinvestment,' the source said.

Shanghai Media Group provides content for 58 channels of the IPTV service which is run by subsidiary BesTV.

UTStarcom, ZTE and Huawei Technologies also provide technology support for its IPTV service.

Widening reach

Shanghai Media plans to expand its IPTV service to more than 20 cities

Shanghai is the single largest IPTV market in the mainland with subscribers totalling more than

200,000

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