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November 10, 2010

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Telco signs deal to offer video services

CHINA Telecom yesterday signed a cooperation agreement with eight partners, including Lenovo Group Ltd and ZTE Corp, to offer video services on various devices ranging from mobile phones, handheld devices to TVs.

Meanwhile, China's third-largest mobile carrier, two partners and the Pudong New Area government plan to jointly invest 100 million yuan (US$14.9 million) to establish a joint venture in Shanghai to provide Internet-based video services.

The pact was the latest move for the telco to expand into the Three Network Convergence national policy which refers to the convergence of telecommunications, Internet and TV networks, industry insiders said.

"We can push video content to any devices with Internet connection," said Wu Dongli, vice general manager of China Telecom's Shanghai branch. "The 3G network and strong fixed-network resources are our advantage."

China Telecom is also the country's No. 1 fixed-line phone operator with the nation's biggest broadband network. It operates a CDMA2000 3G network.

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