The over-the-top service, which has been in pilot operation since late 2008, is designed to provide a selection of linear TV and on-demand content to users via fixed broadband and mobile connections. CCTV is one of seven companies to hold licenses for mobile TV in China. (See ChinaVision to Offer Mobile TV and Envivio Scores China Win.)
City will use the existing fixed fiber network of its wholly owned subsidiary Hong Kong Broadband Network Ltd. (HKBN) to deliver the additional service, and believes it can break even once it has invested HK$210 million (US$27.1 million) launching and delivering its broadband TV offering.
The broadband-TV market is already very mature in Hong Kong, as HKBN, which has just added Disney channels to its bbTV service, competes with IPTV pioneer PCCW Ltd. (NYSE: PCW; Hong Kong: 0008). (See Telecom Market Spotlight: Asia and PCCW: IPTV Demands Innovation.) — Ray Le Maistre, International News Editor, Light Reading