Shougang Concord Technology Holdings, the Hong Kong-listed arm of Beijing's Shougang Group, has struck a deal with Guangdong government-owned Southern Media Corp (SMC) to upgrade the province's cable television system to a digital platform in a project worth two billion yuan (HK$2.2 billion).
This initiative announced last week followed efforts by Beijing to drive development of advanced digital broadcast services across the mainland before the Olympic Games in August.
With a digital cable television platform, operators can offer more channels to subscribers on top of existing basic channels such as China Central Television and those transmitted by local satellite broadcasters.
New services to be added include cable broadband connections and video on demand.
Shougang Concord, through its 80 per cent owned subsidiary Yijiatong, will partner SMC in a joint venture that will lead in converting cable television services to digital in 13 so-called regions with a population of about 40 million in Guangdong.
SMC will hold 51 per cent of the venture, Southern Yinshi Network Media. Yijiatong will have 39 per cent and an undisclosed investor will own 10 per cent.