Hong Kong firm to establish China’s first satellite-based mobile broadcasting service

(SOUTHCHINAMORNINGPOST)HongKong-listedCMMBVisionHoldingshasformedajointventurewithastate-controlledcompanytoestablishChina’sfirstsatellite-basedmobilebroadcastingservice,anenterprisethatcouldbebiggerthantheoperationsofSiriusXMinNorthAmerica.

TheventurewithGlobalBroadcastingMedia,acompanyownedbystatebroadcasterChinaRadioInternational,willofferbundledradio,videoandinternetdataservices,aswellasprecisionnavigation,tohundredsofmillionsofpotentialsubscribersintheworld’sbiggestcarmarketbysales.

“ThecompanywillbethefirstmoverinChinatoofferenhancedDARS(digital-audioradioservice),withmoreadvancedtechnologyandinamuchlargermarket,”CMMBVisionchairmanandchiefexecutiveCharlesWongChau-chisaidinaregulatoryfiling.

Theservicecanbereceivedbyportableorbuilt-intransmittingdevicesinacar.ItcanberetransmittedviaWi-fitoothersmartmobiledevicesnearby.

Wongsaidin-carmediaandentertainmentspendingonthemainlandwasforecasttoreachUS$37billionby2019.

NewYork-basedSiriusXMiscurrentlytheworld’smostrenownedDARSprovider,with29.6millionsubscribersacrosstheUnitedStatesandCanada.Itisalsotheworld’slargestbroadcasterbyrevenue,postingUS$4.2billionin2014.

WongsaidthestrategiccooperationwithGlobalBroadcastingMediawouldenablethedeliveryofsatellite-basedmobilebroadcastingwith“unprecedentedhigh-quality,low-costandubiquitouscoverage”inChinaandlater,the“OneBelt,OneRoad”countriesinAsia.

Thatwillbemadepossiblewiththemainland-developedmulticasttechnologyknownasConvergedMobileMultimediaBroadcasting,whichCMMBVisionhaslongbeenpromoting.

ItsCMMBmobilehandheldtelevisionservice,whichwaslaunchedduringthe2008BeijingOlympics,isnowavailableinmorethan350citiesnationwide.

CMMBVisionlastFridayagreedtotransfer51percentofitsequityinterestinasubsidiary,GMG-CMMBMediaTechnology,toGlobalBroadcastingMediaforatokenconsiderationof1yuan.Thatsubsidiarywillserveasthejointventurevehicleofthetwocompanies.

AccordingtoWong,thenominalfeeforthatequitytransferdealwasprimarilybasedonGlobalBroadcastingMedia’sabilityandcommitmenttoobtaintherelevantlicensesandapprovalsonthemainland.

CMMBVision,whichpostedaninterimlossofUS$3.86millionlastyear,haspursuedstrategicinitiativesoverthepastseveralmonthswhichpavedthewayforitsnewjointventure.

InOctober,thecompanyacquiredtheexclusiveuserrightsfortheAsiaStarL-bandspectrumsatelliteandotherrelatedassetsfromNewYorkSatelliteHoldings.

ThatwasfollowedbyapartnershipwithChinaSatelliteMobileMediatojointlyoperatemobilemultimediaanddatadeliveryserviceonthemainlandbasedonthecompany’sAsiaStarsatellite.

Latelastyear,CMMBVisionforgedadealwithBoeingtostartconstructionofitsadvancednewL-bandsatellitenamed“Silkwave-1”.