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Siemens denies dismissal of China IPTV unit

Posted: 28 Nov 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Siemens? Microsoft? Huawei? Alcatel? IPTV?

Siemens AG said that it is still confident about its place in China's emerging IPTV market, denying reports that it has dismissed its IPTV team in the region.

"We are quite confident in our IPTV business in China," said Wang Chuandong, Siemens China's spokesperson in an interview with Interfax.

A Nov. 24 report from Shanghai Securities News stated that Siemens has dismissed its IPTV team in China after the company lost a bid to supply IPTV solutions to Shanghai Telecom four months ago.

In December 2005, Shanghai Telecom, a subsidiary of China Telecom, offered a contract to Siemens for supplying IPTV solutions for its trial service in the Pudong New Area of Shanghai. However, the carrier gave the IPTV contracts to UTStarcom and ZTE for its commercial IPTV service in Shanghai, which was launched in September. The bid was also joined by Alcatel Shanghai Bell, Huawei and Microsoft.

According to some analysts, it is possible that Siemens, offering high-end IPTV solution, has not found the IPTV market in China to be profitable.

"IPTV equipment makers such as Siemens, UTStarcom and ZTE are unable to gain a lot of profit from China's fledgling IPTV market," said Cao Weiyun, senior analyst, CCID Consulting. "There are many uncertainties in their contracts with Chinese telecom operators because the operators are still conducting trials of the service."

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