Dark Cloth Interactive TV song Hua Cable 100 million dollar high-stakes broadband

Cable TV operator Song Hua Cable (600037) (600037. SH) Broadband business finally "broken cocoon." May 30, the song Hua Cable issued a notice, May 28, the company and LGI, China Partners signed the Agreement on the establishment of broadband joint venture company, the total investment will reach 100 million U.S. dollars, of which 33.4 million U.S. dollars for registered capital. October 16, 2007, LGI cable and international cable network operator (Liberty Globalinc.,nasdaq:lbtya) and a professional investment company, Hua Chuang Partners Investment Co., Ltd. signed a preliminary joint venture agreement, but the intermediate approval process encountered problems, after a lapse of seven months, the joint venture finally made real progress, compared with last October agreement, the investment significantly increased, and the song China Cable maintained 51% Holding status. So, The company will invest more than 350 million yuan in broadband services, news sources told reporters that song Hua Cable is brewing A shares again or bank loans in the way to raise the next need for broadband business funds, in fact, the next need for greater investment, after all, song Hua cable in Beijing facing the main opponent is a strong China netcom, " But telecoms restructuring could provide more opportunities for broadcasters to enter the broadband market. "The impulse to enter broadband in a joint venture has sprouted since 2001, after 2002 years of financing and the 2004 issue of convertible debt, it began to promote broadband services in Beijing, but in the face of China Netcom, song Hua cable broadband business progress is not smooth." For a long time, in the Beijing market, Beijing Netcom, Song Hua Cable, CLP, China Electric Huatong, telecommunications, Halo new network, founder Broadband, Friends Network, Beijing-wide network and many other ISPs competition is extremely fierce, price war, song Hua Cable has long accounted for only about 1% of the share, By 2007 its broadband subscribers were still less than 100,000. According to the previous announcement, the song Hua cable fund-raising construction Project Community Network Phase II project failed to complete, 2006 the project loss of 6.37 million Yuan, 2007 the first half of the project is a loss of 3.43 million yuan. But the Chinese cable, it is not purely for broadband, the current use of broadband for the Internet work more is a transition, for the future of the opening of IPTV and other interactive TV homes to prepare. 2005, China Netcom and Shanghai SMG in Shanghai launched a competition with cable digital TV IPTV business, and then extended to Harbin, Shenyang, Henan and other areas, Beijing was also the city Netcom to push, which gave the song China cable caused no small pressure. In this case, Song Wah Cable began to hope that through the establishment of joint ventures to increase the investment in broadband. The reporter learned that the search for joint ventures has begun 2006 years ago, by October 2007, Song Hua Cable finally issued a notice said, and LGI and China Partners signed a framework agreement, and will form a joint venture, the joint venture company investment not less than 200 million yuan, song Hua Cable shareholding 51%, the joint venture will develop video and data service portfolios to promote the digital process of Leroy's cable TV and the growth of data customers. Since 2005, LGI and China Partners have been looking for joint venture partners in China, China's partners in the domestic IT company "Cubs online" investment of millions of U.S. dollars, song China cable to become its second investment in China, and LGI is an international cable network operators, The Chairman of the board is John the American cable network godfather. Malone, currently LGI in 17 countries and regions in the world, operates cable networks and satellite TV, has 16 million basic customers, 23 million revenue units, including 14.7 million video subscribers (about 2.8 million are digital TV subscribers), 4.9 million broadband internet users and 3.5 million VoIP subscribers. [Next] Break the policy barrier all along, song Hua Cable (600037) There are two operating ideas, one is to extend the scope of business from cable television to ARPU higher broadband, digital television, interactive television, the second is through the capital operation to complete cross-regional cable television network integration, such as the acquisition of Langfang Radio and television, As well as over the past year to the Hebei Chengde Guang Tong's acquisition contact. LGI has the experience of successfully acquiring and integrating cable TV in 15 countries around the world. John. Malone's 25 years in the development of the idea is "to be big first", and the continuous acquisition of more than 500 cable television network, an average of 2 weeks a deal was reached; he also summed up a formula for the exact budget of the wired network, expected costs and profit returns. Clearly, these experiences are exactly what Leroy Wired is all about, and the new joint venture is clearly positioned to provide ISP services (Internet access) to residents and commercial clients, and the government Informatization project is still operated by the company alone. Oriental Securities analyst Chen that song Hua cable can use LGI rich operation management experience and market expansion ability, make up the short board business of oneself, and the government Informatization project because of the security transmission of the national information, plus is the company's advantageous business, by the song Hua alone is responsible for the operation, is also the national policy request. CIC's analysis of the report pointed out that the joint venture in favor of song Hua cable digital TV, especially interactive TV business and data business bundled marketing, development, and in the IPTV, live satellite competition to obtain the first-hand advantage. Although the joint venture was a win-take, the agreement signed last October did not make any immediate progress, until January 16 this year, the Chinese cable still announced that the cooperation agreement will be extended for another 90 days to April 15, but can eventually be granted policy risk. Some analysts pointed out that, because the introduction of foreign strategic partners to invest in cable TV network based high-speed data broadband services and cable television network value-added services in the country is still the first, so the eventual approval of a certain policy risk. To this, the song Hua Wire related personage tells the reporter, "at that time both sides in the agreement detail has not finalized, among them mainly is the holding status as well as the government Informationization Project concrete Operation plan, moreover this time togetherCapital is also subject to the triple-net and foreign television content landing policy restrictions. "In January this year, the State Council issued a" text ", the radio and television, telecommunications two-way ban into" two-way access ", especially to allow radio and television development of value-added telecom services, including the broadband business is to let radio and television mouth-watering, which makes both sides of the joint venture policy restrictions were opened. Mr Luo, vice president of China Cable, said the broadcasters could not just look at IPTV, and broadcasters such as song Hua Cable should compete with telecom for high-end business, and the joint venture was a start. [Next] Telecom restructuring opportunities in fact, to China Cable, in how to operate the broadband business, the end of May in Shenzhen, SME listing Tianwei video (002238 quotes, shares bar) (002238. HK) is an excellent example. The same is the radio and television operators, Tianwei video from the beginning of 2006 to develop broadband business, and then with the opportunity to complete the cable TV conversion of the digital two-way transformation of the wired network, during the development of nearly 300,000 broadband users, the current broadband has become the second-largest Tianwei video business, And Tianwei video is also among the Shenzhen to become the second largest broadband operator after China Telecom. In this regard, Tianwei video-related people said, "We have adopted a step business model, in the digital TV conversion while expanding the broadband business." Although the beginning of Tianwei than song Hua late, and due to the late listing time, in the early stage of the funds are also insufficient, but we expand the broadband business is the most efficient way. In addition, Tianwei Video (002238) broadband business has been successful, and its rivals in Shenzhen. Shenzhen's largest broadband operator is Guangdong Telecom, but also includes Netcom, the Great Wall broadband, and other operators, but because the Guangdong Telecom in broadband services pricing high and rigid, which gives Tianwei video at a lower price to cut into broadband services opportunities. At the same time, compared with the market competition environment in Beijing, the relationship between Shenzhen radio and telecommunications is not as direct as that of Beijing. According to the reporter understand, because Beijing is China netcom broadband business City, close to 4 million of the capacity of China Netcom to the Beijing market attaches great importance, Beijing Netcom even in the broadband service prices to take the lead in the price war, which let the Song China Cable (600037) Such a small broadband service provider difficult to obtain living space So, what kind of action does Leroy Cable take next, in addition to the replication of Tianwei video can be referred to the full business model, but also need to see netcom in the telecommunications restructuring after the strategic transformation-if the telecommunications restructuring netcom and China Unicom (600050 market, shares bar) of the G-Net merger, mobile communications business become the first major business of the new company , the relative decline of the broadband business, which is bound to give the song Hua cable broadband business to bring hope. At present, the song Hua Wired has completed 1.2 million CATV user's digitized bidirectional transformation, these users want to develop the broadband, even extends to the interactive television is not difficult. Although Netcom currently has 85% users in Beijing, its growth rate has been on the rise in recent years, the source said.Slow, and its IPTV business has not developed to the Beijing area, "mainly because Netcom has focused on the 3G and telecommunications restructuring areas, broadband services in its business income ratio will gradually reduce, which gives our joint venture opportunities." "As one of the founders of the partnership, Pang Yongxin said that the cooperation with the singer-Wah cable is larger than the investment in the online bear," Hua Chong is not a venture capital company, we hope to hold a long-term stake in the new joint venture, although we must consider the possibility of withdrawal, but there is no such intention. " "Song Hua Cable said, in the three networks (broadband communication network, digital television network and the next generation of Internet) in the context of integration, will give full play to the channel value of CATV Network, carry out the whole network of multiple services, video services and data services. In addition, as an important content provider overseas, LGI can also provide a rich program source for the joint venture, which will greatly improve the user's ability to expand the company's cable.