China Cable & Communication Announces SARFT Approved Set-Top Cable Box Sales For The Chinese Market
Tuesday January 20, 8:05 am ET
Initial Sales Break 10,000 Units
BEIJING, Jan. 20 /PRNewswire-FirstCall/ -- China Cable and Communication, Inc. (OTC Bulletin Board: CCCI - News), a leading China-based cable TV network operator, today announced the first four months sales results of the company's set-top box for the Chinese cable market. A set-top box enables consumers to receive premium programming, including broadband Internet access and on-demand services, through the cable network. Unlike set-top boxes currently available in China or other markets worldwide, China Cable's set-top box is based on SIM (Subscriber Identity Module) card technology, which features a pre-pay system. With this technology, consumers will be able to purchase one of China Cable's set-top boxes, along with a SIM card, from their local network. If at any point the consumer moves, they will only need to purchase a new SIM card from the new cable service provider, and still be able to use the same set-top box. Beginning with its first set-top box sales in September 2003, China Cable tested a highly competitive trial price of US$70.00, which resulted in the sales of more than 10,000 boxes. Models on the market from other companies can cost as much as US$200 or more -- without even providing consumers with the compelling SIM card technology.
Gareth Tang, President of China Cable and Communication, said, "This is an important strategic development for us as we work to build out a robust content delivery platform in China. Our goal is to offer a platform with the capability to be ubiquitous in China. Now that we have received approval by the State Administration for Radio Film and Television (SARFT) of our set-top box technology, we believe our engineers have developed a platform to do just that. Importantly, our SIM technology uses a pre-pay system, which eliminates potential collection issues. Additionally, as part of our targeted marketing strategy for our set-top box, we are offering a revenue sharing opportunity to cable systems throughout China. This type of business model serves as an incentive to the cable systems that want to offer premium cable services to their subscribers, and should enhance joint venture opportunities and increased revenue potential for China Cable. By aligning with China Cable, cable systems would obtain the benefit of offering their subscribers premium cable programming and high-speed Internet access through our set-top boxes, which are purchased by the consumer."
"We are extremely encouraged by the first phase of our rollout. Based solely on word-of-mouth, we were able to sell over 10,000 set-top boxes over the past four months in the Baoding city alone. This number is even more impressive when you consider that industry sources estimate that only 150,000 set-top boxes have been sold to date in all of China. We are confident that our set-top box's competitive price point and pre-pay SIM card technology will help us to benefit from increased demand for premium cable programming from customers in China."
About China Cable and Communication
China Cable and Communication, Inc. is a China-based cable TV company. Through its British Virgin Island subsidiary, the Company is the first foreign company to own and operate a cable television network in China.
Located 85 miles south of Beijing, the network currently offers 39 channels within the Baoding city limits and eight additional channels to outer areas in the Baoding metropolitan area. It transmits in both analog and digital over its fiber optic network and through 22 substations. With its fiber optic network, Baoding network is capable of transmitting 37 analog television programs, six digital signals and one FM music program. In addition to its cable television transmission services, Baoding network offers Internet access and value added services, such as broadband Internet access and on- demand services through our set-top boxes that the company developed.
China Cable and Communication is well positioned as a foreign investor approved by The State Administration of Radio, Film and Television ("SARFT"), China's national regulatory authority for the broadcasting industry, to own interests in and provide operational management support to cable television networks in the People's Republic of China (PRC). The SARFT approval together with the trading of CCCI's common stock in the US, provide CCCI with a favorable advantage in access to foreign capital. China Cable and Communication, Inc. trades in the United States on the Over The Counter Bulletin Board, under the ticker symbol CCCI, in order to provide U.S. investors with the opportunity to invest in a company that own interests in a PRC cable television network. For more information, please visit
www.chinacable.us .
The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review the risks described in other documents the company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-KSB for the fiscal year ended October 31, 2002, as well as the Quarterly Reports and Current Reports on Form 8-K by the company.
CONTACTS:
George Raney
Executive Director of China Cable & Communication, Inc.
Tel: +1-310-301-0082
David Pasquale
Tel: +1-646-536-7006
Jim Olecki
Tel: +1-646-536-7021
Both of The Ruth Group
www.TheRuthGroup.com