"Cooperation" song Hua and Huawei Strategic cooperation layout three network integration

Song Hua wired to promote the integration of three networks and new initiatives. August 8 evening, Song Hua Cable (600037.SH) issued a notice, recently and Huawei Technology Co., Ltd. (hereinafter referred to as Huawei) signed a "triple network integration" strategic cooperation agreement.

According to the agreement, Leroy Cable and Huawei will be in the next generation of radio and television Network (NGB) planning, cloud computing and Internet applications, and other aspects of technical cooperation, in the "Three network integration" and new media business development planning and market demand to explore business cooperation; in "triple net Fusion" Organize personnel training with new media technology and operation Management.

In addition, the two sides will also study the formation of "triple-net integration" of the next generation of cable television network Joint Laboratory.

As the only one by one cable TV network operator in Beijing, the regional monopoly status and government support of song Hua Wire will make it gain advantage in the integration of three networks.

and the song Hua cable already in May 12 on three nets fusion expansion layout. At that time, the company and the Beijing branch of China Mobile signed a strategic cooperation agreement, the two sides will be each other for product agents, resource complementarity, resource sharing to carry out relevant cooperation.

July 27, Song Hua Cable intends to use its own funds to invest 50 million yuan, investment in the establishment of wholly-owned investment companies, focusing on the integration of three networks in the context of cable television industry investment opportunities.

However, in a positive attempt to merge the three nets, there are also cases of failure in the song Hua. July 27, the Song China announcement said, the company first raise funds in the broadband Community network two projects not invested in 39.27 million yuan to raise funds to replenish liquidity. The reason for the change is: With the three-network integration and CATV two-way network construction, the technical model of the second phase of broadband Community network is limited by many factors, can not adapt to the company faced with the digital CATV, two-way network construction and the integration of three networks and other diversified business development needs. The broadband business market is highly competitive, because of poor operating conditions and expected income gap, difficult to obtain the expected income and recovery of investment, so there is no possibility of continued investment and necessity.

In this failure, song Hua concluded that the construction of High-definition Interactive platform is more in line with the industrial development trend. The company will be in accordance with high-definition Interactive digital TV industry policy, rapid development of high-definition interactive business. The High-definition interactive platform based on CATV can provide a variety of value-added services including broadband, which is more in line with the interests of shareholders and the company.

By the end of 2010, Song Wah Cable has developed high-definition users 1.3 million. This year, 1.3 million more households will be developed to achieve the transition from "watching TV" to "Using TV".

(Responsible editor: Lu Guang)