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TMCNet:  China Telecom Forays into Gaming Field

[August 30, 2010]

China Telecom Forays into Gaming Field

BEIJING, Aug 30, 2010 (SinoCast Daily Business Beat via COMTEX) -- China Telecom Corporation Ltd. (NYSE: CHA and SEHK: 0728) will reveal the proportion of its profit sharing with partners in terms of game operation in September 2010, disclosed Zhang Peng, deputy director of the game operation center of the leading telecommunications carrier.

Industrial upgrade has brought opportunity for the growth of digital interactive entertainment products, believed China Telecom Deputy General Manager Zhang Jiping, predicting that the sales revenues of the Chinese online gaming market will rise 30% to more than CNY 60 billion this year.

Hence, China Telecom decides to foray into the gaming field. In October 2009, the company's Jiangsu branch submitted an application to China Telecommunications Corporation for the establishment of a game production base in the province. After considering market environment, policy restriction, operating experience and talent reserve, the company agreed with the application.

From January 2010, China Telecom began to prepare for the establishment of the base. In the following half year, its Jiangsu branch completed development of products, platform construction and negotiation with upstream and downstream partners.

On August 28, China Telecom inaugurated the game operation center in Jiangsu Province. Meanwhile, it launched e-Game products to provide gaming service for eSurfing users around China. The gaming service adapts to the interaction among mobile phones, computers and TVs and brings novel experience to gamers.

To realize the differentiated competition strategy, lower the costs of product development and network construction and speed up the growth of new service, China Telecommunications Corporation will select locations for the construction of the game operation center. If the pilot operation takes effect in the local area, it will be spread across the country.

The game production base will not directly participate in the development of games. Instead, it will focus in the improvement of platform operating capacity, marketing and customer service.

The base will pay more attention to the creativity of game products. Currently, its partners provide all the game products of the base. Their cooperation will be carried out in the forms of profit sharing and joint operation.

e-Game, as the gaming service under the eSurfing brand of China Telecom, is a interactive entertainment platform jointly promoted with game companies based on multiple terminals like mobile phones, computers and TVs. Currently, over 60 customer ends are compatible with the service. In the future, new eSurfing handsets will all be adaptable with related customer ends.

By far, the game operation center of China Telecom has formed cooperation with more than 100 game companies, such as Electronic Arts (EA and Nasdaq: ERTS), Shanda Interactive Entertainment Ltd. (Nasdaq: SNDA) and KongZhong Corporation (Nasdaq: KONG).

(USD 1 = CNY 6.80) Source: www.163.com (August 30, 2010)

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