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Siemens to 'drop Web TV in China'

(Reuters)
Updated: 2006-11-24 13:51

German industrial conglomerate Siemens AG may withdraw from the Internet TV market in China, a local newspaper reported on Friday.

Siemens has dismissed its team in charge of Internet Protocol Television in China, the Shanghai Securities News said, citing industry sources saying that it was a "failure" for Siemens after the company had lost a bid to cooperate in the launch of IPTV services in Shanghai.

The report did not say how many employees worked for the unit. A spokesperson for Siemens in Shanghai could not immediately be reached for comment.

China's largest fixed-line company, China Telecom Corp., and Shanghai Media Group in September launched a joint Internet TV service.

Shanghai Media Group is the first company in China to receive a licence from Beijing to run IPTV.

With growth slowing in China's telecoms market -- the world's biggest with more than 360 million fixed-line and more than 430 million mobile users -- China Telecom and rival China Netcom Group Corp. are looking to newer, non-voice services.