Mainboard-listed Sinotel Technologies, the provider of wireless telecommunications infrastructure and solutions in China, says the group has signed a deal with China Telecom to promote its fixed line, fibre-optic broadband and IPTV services on an income-sharing basis.
Under the agreement, the group will develop high speed fibre-optic infrastructure for four residential districts in Shanxi, namely Wen Ting Ban Li, Hu Pan Xiao Chu, Ji Zhen Cun and Tai Hua, connecting homes directly to China Telecom’s core network. The connection will make available to home users fixed-line telephone, broadband internet and IPTV services. The installation of fibre optics would provide seamless transfer speeds and endure less data loss due to its immunity to electromagnetic interference whilst in transit.
The sharing of net income derived from the three services is as below:
| China Telecom | Sinotel | |
| Fixed-line telephone | 60% | 40% |
| Broadband Internet | 60% | 40% |
| IPTV | 30% | 70% |
The contract between Sinotel and China Telecom is valid for five years and during this period, the joint partners have exclusive rights to provide the above services to these residential districts.
The group anticipates this business segment to be one of the growth drivers for Sinotel in the next year and intends to replicate this model in other provinces and communities.
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