ChinaTel Group, Inc. Signs MOU with UiTV, Beijing China, to Provide Hollywood Movies and High-End Sports Events on Media Broadcasting to People's Republic of China
2009-01-12 20:56:01 -
ChinaTel Group, Inc. ("ChinaTel") (OTCBB:CHTL) announced today that its Application Service Center in Beijing has started the first step on constructing its IPTV network service in high speed wireless broadband application by entering into a Memorandum of Understanding (MOU) with UiTV, the mostly widely used Internet TV network in China, to provide Hollywood movies and high-end sports events on media broadcasting. The MOU facilitates further cooperation and additional opportunities between ChinaTel and UiTV, and it also indicates the online video viewing market in China is ramping up.
ChinaTel established the relationship with UiTV after starting the operation of its Beijing Application Service Center. Since then executive management at ChinaTel and UiTV have had deliberate discussions regarding development in China, where both companies recognize the importance for Internet video websites to pursue the strategic direction of content differentiation and its application on wireless devices. Both ChinaTel and UiTV have agreed to further their cooperation and development in these two areas combining their individual strengths and resources.
The MOU outlines the directional strategic relationship between ChinaTel and UiTV as follows:
1. ChinaTel will act as a global Internet content aggregator providing its authorized global content, such as high-end sports or Hollywood movies, to UiTV and its contracted websites for broadcasting in China.
2. ChinaTel will cooperate with UiTV on its planned WBA IP portal and the corresponding application services based on the existing WBA infrastructure.
The two companies will work together to create more value for customers and advertisers through introducing differentiated global video content to all contracted distribution channel websites.
Internet Video Market in China is about to take off
Several facts show that the Internet video market in China is about to escalate. First, China has the largest Internet population in the world with around 260 million users. And its video viewers account for 81%, which amounts to about 180 million Chinese citizens. Second, online video ranks fourth as the most used application - only after IM, search, and email. And among Chinese youths (15-24 years), it is the third most popular activity online. Third, the broadband (ADSL) infrastructure in China is wide-spread, and the Internet video industry players have been involved in this market since 2003, thus accumulating relatively rich experiences. The next step for China's Internet video market would be to focus on video content innovation, function of interactivity and copyrighted contents.
Partnership between ChinaTel and UiTV is mutually beneficial
Under the MOU, ChinaTel and UiTV's mutually beneficial partnership will fully leverage their respective strengths on global operation and local distribution, creating synergy, extending their customer base, and expanding potential advertising revenue. ChinaTel will receive full technical support on establishing its wireless broadband accessed video broadcasting IP portal with consolidated back-end operating platform. And, ChinaTel will be able to broadcast its authorized content through UiTV's contracted distribution channels to reach all of China's Internet subscribers. In exchange, UiTV will receive more high-end and lifestyle global content resources, reduce cost on individual foreign content providers, and extend its business area to wired/wireless broadband access devices.
About ChinaTel Group, Inc.
ChinaTel, through its controlled subsidiaries, provides telecommunications infrastructure engineering and construction services worldwide including the USA, China, Argentina, Peru, and Chile. ChinaTel's subsidiaries have entered into a series of agreements to build and deploy a 3.5GHz wireless broadband system in up to 29 cities across the People's Republic of China with and for CECT-ChinaComm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system. For more information, please visit www.chinatelgroup.com.
About UiTV and Future TV
Founded in 2003, UiTV is a leading premium content Internet video platform in China, holding predominant market share in terms of coverage, reach and traffic of legitimate content. It is also one of the very few companies that have been licensed by the government to operate Internet TV platform in China. UiTV allows content owners to safely distribute their content through its syndication network, enables top tier Chinese Internet media portals and search engines to provide quality online video services to their users at very low cost and helps UiTV's advertising customers to effectively and intelligently place online video ads. With technical superiority, highly effective operational management and an innovative business model, UiTV holds a superior position in the Chinese Internet video community. Recently, UiTV acquired Baidu's iTV service with USD $15 million in cash and 8.3% of its stock. This deal has further strengthened UiTV's leadership position in China's Internet video market. According to Mr. Song Lin, CEO of UiTV, the concept of "Future TV" providing IP-based Internet video content through PC/NBS, mobile phones, and TVs will be the trend of the Internet video industry, and will also be the main mission UiTV will strive to achieve by aligning related industry partners in the coming years. For more information, please visit www.uitv.com.
ChinaTel Group Investor Relations
Tel: 877-260-9170
Email: investors@chinatelgroup.com
