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StockGuru Blog: Telecom Communications, Inc. – IPTV Movie Distribution in China

TCOM – Stock Guru Profile OTCBB:TCOM

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 .

China is projected to become one of the largest IPTV markets in the world. IPTV (Internet Protocol Television) is a system where a digital television service is delivered using the Internet Protocol over a network infrastructure, which may include delivery by a broadband connection.

IPTV is television content that, instead of being delivered through traditional formats and cabling, is received by the viewer through the technologies used for computer networks.

The numbers in China are, as in all industries, staggering. China is currently estimated to have in excess of 50 million computer owners, over 348 million telecom subscribers, over 100 million Internet users including 40 million broadband users.

In terms of television it is estimated that there are 400 million television sets in China with an audience which exceeds one billion. There are 150 million cable TV subscribers.

Andreas Mueller-Schubert with Siemens predicts that the Chinese IPTV market will account for one-fourth of the total in the world by 2009. IPTV subscribers in Asia Pacific areas are predicted to exceed 20 million by 2009, compared to 100 million worldwide.

For residential users, IPTV is often provided in conjunction with Video on Demand and may be bundled with Internet services such as Web access and VoIP. The commercial bundling of IPTV, VoIP and Internet access is referred to as a Triple Play. Adding the mobile voice service leads to the Quadruple Play denomination and this capability makes IPTV very desirable.

There has been some conflict between IPTV and Digital TV development projects. At present, most of China’s broadband networks are unable to afford large-scale IPTV operations, and the two are upgrading their networks separately.

China must upgrade the network to the FTTP (Fiber-to-the-Home) level for a fully functional IPTV system. Li Ruigang, president of SMG, noted there is a cost of 50 – 60 billion yuan to implement IPTV to 25 – 30 million subscribers.

The set top box cost of IPTV is high which impacts negatively on the IPTV market.

Because of the bundling potential it is anticipated that IPTV will deliver the premiere system and as China’s GDP continues to rise with its standard of living IPTV will become more prevalent.

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.

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