TCOM – Stock Guru Profile — OTC: TCOM
Yesterday Stock Guru evaluated the longterm outlook for IPTV in China and Skyestar.com’s focus. Today we examine the 2007 outlook.
Telecom Communications has many divisions. One division, Skyestar.com focuses on the delivery of copyrighted movies and one means of delivery is IPTV.
IC Star has been successful bringing many movies into the Chinese market, via the internet and mobile phone.
SkyeStar.com, the flagship entertainment property of TCOM, will be a fast-growing, revenue streaming entity.
SkyeStar.com (”SkyeStar”) will be launched with IPTV, with new features that permits users access to SkyeStar accounts from IPTV.
SkyeStar is a free, members-only web site that offers community, e-mail, exclusive music and video downloads, instant messaging, blogs, photos and more.
Revenue will be generated by advertising, entertainment downloads, pay per view, video-on-demand and VIP membership fees.
China is one of the largest IPTV markets in the world and among the first in the world to initiate IPTV .
The market for IPTV (Internet Protocol Television), which enables TV broadcasting over broadband Internet, is expected to take off in China in 2007 as fixed-line operators seek means for expansion.
“IPTV could get a head start next year in China,” said Huang Dabin, vice president of the network division of China’s No. 2 telecoms equipment maker ZTE Corp.
In an interview with China Daily on the sidelines of the ITU Telecom World 2006 in Hong Kong, Huang predicted the number of IPTV subscribers in China could exceed 1 million in 2007 skyrocketing from the current 100,000 subscribers.
Fixed-line operators China Telecom and China Netcom have been aggressively building trial IPTV networks since last year. This year, some commercial IPTV services have been operational in cities such as Shanghai.
“Fixed-line carriers are putting a big bet on IPTV as one of the top priorities of their business transformations, as IPTV promises a new revenue stream,” Huang said.
China Telecom and China Netcom have been coping with a slowdown in their fixed-line voice businesses. The two firms have been lobbying the government for a license to enter the lucrative mobile phone sector.
But the government has been denying the licenses, forcing the two fixed-line operators to promote Xiaolingtong, or PHS (personal handyphone system), a limited mobility service in the country.
In recent months, PHS has lost momentum in China due to dropping fees of mobile phone services. As of October, China had 93.4 million PHS users, compared to 85.3 million at the end of last year, according to the Ministry of Information Industry (MII).
Now operators are shifting their investment focus to the IPTV business as it is “a strategic choice for fixed-line carriers (besides the mobile phone business),” Huang said.
China had 370 million fixed-line telephone subscribers and 449 million mobile phone subscribers as of October.
The booming broadband Internet business is giving a boost to the IPTV market in China. By October China had 49.8 million broadband Internet users.
Operators’ increasing investments in IPTV is benefiting a number of companies such as ZTE, UTStarcom, Huawei and Alcatel Shanghai Bell (ASB), which have been developing IPTV technology.
ZTE, for instance, has won contracts from operators to supply IPTV equipment and solutions in a number of cities and provinces including Beijing, Yunnan and Shaanxi provinces.
Yet, regulatory uncertainties are still thwarting rapid uptake of IPTV in China. Both broadcasting and telecoms operators are vying for an upper hand in the IPTV market, which represents a convergence of the broadcasting and telecoms industries.
Even regulators are struggling to enter the IPTV market. For instance, local broadcasting regulators in Quanzhou, a city in East China’s Fujian Province, banned China Telecom from operating an IPTV service in the city.
But China’s broadcasting regulators are aggressively promoting digital TV over cable lines in the country, which could eclipse the growth of IPTV in the country.
Despite intense competition, broadcasting and telecoms operators will find they need to work together to create a “win-win” situation to better tap into the emerging market, Huang said.
Skyestar.com intends to grow with IPTV and to be an established contributor to the medium.
SOURCE Telecom Communications, Inc. and Asia Pulse
CONTACT: Ms. Sandy Tang of Telecom Communications, Inc., +852-782-0983,
or pr@tcom8266.com
Web site: http://www.skyestar.com/
http://www.mystaru.com/
http://www.subaye.com/
About Telecom Communications, Inc.: Telecom Communications, Inc. (TCOM) is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. Telecom Communications, Inc. does business in Asia via its wholly owned subsidiaries, Alpha Century Holdings Ltd., IC Star MMS, Ltd. ( http://www.icstarmms.com/ , http://www.skyestar.com/ ), Guangzhou TCOM Computer Technology Limited ( http://www.mystaru.com/ ) and majority owned subsidiary HRDQ Group, Inc. ( http://www.subaye.com/ ).
Safe Harbor: The statements made in this release constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company’s products in the marketplace, competitive factors and other risks detailed in the Company’s periodic report Filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Disclosure: Pentony Enterprises LLC was compensated $30,000 for profile coverage, and expects to receive $50,000. Pentony Enterprises LLC is not a registered investment advisers or broker/dealers. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative
StockGuru.com is owned and operated by Pentony Enterprises LLC, 9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (214) 458-4258. Web: StockGuru.com. Email: Publisher@stockguru.com .
