Amidst fierce competition from China-based rivals, Siemens inked a deal with Shanghai Telecom and Shanghai Media Group to supply set-top boxes (STBs) and IPTV infrastructure for the JV's planned IPTV service. The companies declined to release financial details of the deal. Germany-based Siemens said it expects IPTV subscribers in China to reach 4.5 million by 2008 and STB revenues to reach $231 million. The company also said it expects to announce deals in the Indian market next. Siemens recently incorporated Entone's Hydra STB into its SURPASS solution.
Although Siemens hopes to scoop up 20 to 25 percent of China's IPTV market by 2007, the country is home to some serious IPTV players: Huawei Technologies, ZTE, and UTStarcom. UTStarcom also recently announced a deal with Shanghai Telecom for a different area of the province. Both deals aim to deploy IPTV services to about 5,000 subscribers. While both companies admit the deployments won't be huge revenue boosters, the opportunity in China's IPTV market is so great that any toe-hold in the market is a symbolic victory. No wonder they won't discuss the financials; you can't put a price on symbolism.
For more on Siemens' IPTV plans for Asia:
- take a look at this press release