untitled

2006 11 2 1300 1,200.00 1200 1,100.00 1100 1000 900 800 700 600 500 2005-10-25 2006-1-5 2006-3-27 2006-6-12 2006-8-22 1,000.00 900.00 800.00 700.00 600.00 500.00 2006 8 IPTV ARPU 2007 2006 8 30 DMB 3G 2007 DMB 2006.4 2006.3 2006.3 2005.12 2005.11 2005.9 2006 2006.6 02163411365 Emailyelf@htsec.com 2006 2007 1 2 3 EPS 2006E 2007E 2008E 600037 0.64 0.75 0.83 600825 0.08 0.45 0.56 600832 0.26 0.35 0.43 000793 0.11 0.22 0.30

2... 4... 5 1. 2006... 5 1.1... 5 1.2... 6 1.3... 7 1.4... 8 2.... 9 2.1 VOD... 10 2.2...11 3.... 13 3.1... 14 3.2... 15 3.3 IPTV... 16 3.3.1 IPTV... 17 3.3.2 IPTV... 18 3.4... 19... 21 4.... 21 4.1 (600037)... 21 4.2 (600832)... 22 4.3 600825... 23 4.4 (600831)... 23 4.5 (000917) 2007... 24 4.6 (600831)... 25 4.7 (600088)... 25 5.... 26

3 1... 7 2... 9 3... 12 4... 12 5... 13 6... 14 7... 18 1... 5 2... 8 3... 10 4 VOD... 10 5 Comcast2006...11 6 Cablevision2006...11 7 2006...11 8... 13 9... 14 10 DMB... 15 11 IPTV... 17 12 IPTV... 18 13... 20 14... 26

4 2006 239 13.41 55 20 200 1.3 250 650 2006 8 2006 2006 8 IPTV 600037 000793600825 600831 600832 600880 600088000917

5 1. 2006 2006 239 13.41 55 20 200 1.3 250 650 2006 8 2006 2006 8 IPTV 1.1 2006 239 13.41 55 20 2006 8 1 3.4 10 10 1 2003 2004 2005 2003 2004 2005 2003 2004 2005 65.0 83.1 72.2 21.7 11.3 22.2 13.3 5.6 5.6 1.8 94.7 70.8 6.1 5.3 20.4 12.1 0.0 8.8 71.0 69.6 51.3 11.3 26.8 25.0 17.7 3.6 24.7 5.6 58.1 72.7 22.2 32.3 18.2 22.2 9.7 9.1 5.7 100.0 80.0 0.0 0.0 20.0 14.3 0.0 0.0 8.7 60.0 66.7 14.6 40.0 33.3 16.7 0.0 0.0

6 2005 2006 2006 1.2 1998 1900 1800 2200 70 100 900 300 1000 10000 93.34% 94.61% 400 1 6000 35 1982 9.83 2002 514 280 75.84 14.75%2003 1000 10 20 10 35% 10% 15% 2004 2006 2007 150 3G 1

7 1 1.3 WTO 2002 2 2003 2005 2006 2006

8 2 2004 2 2004 3 24 2004 4 2003 6 2004 6 2004 8 2004 11 28 2005 7 4 2005 7 11 2006 1 23 1500 3000 4 51% 200 100 () 7 4 51 7 11 2006 6 30 49 2006 1 28 1.4 CCTV1 CCTV12 2005 100 2

9 2 13569 SMGSMG 10 2005 2005 53 3 8 6 1 930 2005 2. 2005 2003 2005 2006 5 2006 VOD ARPU 3

10 3 2003 10 2005 9 60 60 2004 8 2005 11 50.5 20 70 2005 7 2006 6 60 60 2004 6 2005 100 2004 12 2006 6 70 70 2005 6 2006 6 30 30 2005 12 2005 1 2006 10 50 2005 11 2005 1 2006 15 2005 7 6 130 2005 11 2005 3 2006 100 2005 10 2005 10 20 120 2.1 VOD 2006 4 AT&T Startz AT&T Vongo 9.99 1500 PC Comcast VOD 30VOD Tribal TV 2010 3.27 VOD 120 4 VOD CABLE/ADSL/DSL/FTTH Video Network 2004.5 DSL 15000 Kingston conmm 2003.11 DSL 5500 Telewest 2005.1 CADLE 2000 Film Flex 200 BBC WORLDWIDE NTL 2006 CABLE 25000 Film Flex BBC BT 2006 DSL Wana doouk 2006 DSL Smart telecom 2005.9 FTTH/DSL Magnet Network 2004.12 FTTH 5000 Swisscom 2006 DSL France Telecom 2003.12 DSL 125000 1000 Deutsche Telecom 2003.11 DSL Arcor 2001.12 DSL 40000 Fastweb 2001.1 FTTH/DSL 115175 4500 UGC Tiscali 2005.1 CABLE 2004 DSL VOD ComcastCablevision 2006 50 VODDVR ARPU

11 5 Comcast2006 ARPU 2149.5 4.7 35.76 55.51 1012.9 34.0 895.7 43.7 11.31 43.14 41.6 21.1 1.91 45.70 104.7 7.0 6 Cablevision2006 38722 3065712 6.16 164659 2127249 112289 1806623 2.16 133967 865308 0.77-559 7251 ARPU 104.24 7 2006 8.2 1100 24.1 560 DVR 21.2 170 34.6 520 27.0 140 ARPU 24.36 87 2.2 2005 10 60 12 50 10 2006 8 6000 40 IPTV

12 3 4 2005 10 952006 7 82 50 14 IPTV VOD HFC 10 180

13 NAP 5000 IDC 600 60 8 HFC 35 / POS 5 98.9 60 110 2002 IP VOIP IP IP 2007 600037600831 3. 33 IPTV 2006 2006 8 6

14 6 IPTV 3.1 2006 2 3.987 300500 4 100 3G 2006 2 DMB DMB 2 3 2 2 2 SPCP DMB 9 50 23 26 21 1530 32 76 2004 3G

15 2005 130 30 / 2.75G 710 3G 10 3G DMBH DIGITAL MEDIA BROARDCARSTING DMB 2005 11 DMB 4 30 1200 30 2000 10 DMB 10 DMB DVBH DMB 3G Mediacast 3G 2 2006 2007 2008 SiTiMi 3G TDCSCDMA DMB 3.2 2006 8 ( 95 ) 5 8 18 2007 08 01 DMB-T ADTB-T 30

16 14 4 1.12 2004 1264 17.23 2004 69386 231 2004 3420 780 3000 2005 5000 3000 1000 2006 2.5 8000 16QAM 1 10 48 LCD 6 11 9 1 3.3 IPTV IPTV IPTV IP

17 3.3.1 IPTV IPTV 2005 IPTV 25 2006 3 IPTV aondigitaltv ADSL 8750 Telefonica IPTV Telefonica 2008 IPTV 100 2005 IPTV 20 IPTV 2007 IPTV 100 IPTV ARPU PCCW YahooBB IP IPTV NGN BcN IPTV MIC IPTV ICOD Internet 2006 IPTV KT BcN 2006 12 BcN BcN 100 2003 8 now now ADSL IPTV now 24 23 30 2004 now 62 15 12 now 2004 9 36.7 now 2010 350 IPTV 75 2010 3490 70 11 IPTV 2005 2006 2007 2008 2009 2010 2011 1.2 1.8 3.3 8.9 15.9 27.2 34.9

18 3.3.2 IPTV 3M 58 3000 180 2006 9 1 IPTV 15 46 40 2 12 IPTV 2005 10 2004 3 4 4 2005 5 3 OK IPTV 49 60 IP 5 HFC 50 IP FTTBLAN HFC IP 7 IPTV IPTV IPTV DVB IP IP IPTV IPTV

19 3.4 DBSDirect Broadcasting Satellite Service EIRP 48dBw D=0.51.0m 24% Comcast 14%(Time Warner) 12% DirecTV 8.3% EchoStar 2006 10 200 IPTV 59.4% 66% 1989 BskyB 49.2%DTH BskyB 70% DTH BskyB BskyB 50% 2004 BskyB 46.9%2000 BskyB 11 2001 2004 2003 10.24 20042007 150 8 BskyB BskyB2003 11% 10% BskyB BskyB CALL CENTRES 3500 BskyB BskyB 30% BskyB 2004 BskyB

20 BskyB 13 2000 2000 9 2001 3 2003 2002 2003 2004 12 2005 2006 2 2007 9 2006 SinoSat-2 92.2 E 0.45m 200 400700 100200 BskyB 1993

21 4. 1 2 3 4.1 (600037) 2006 40 10 500 600 2006 2.4 5 2006 4800 2007 2008 50 2008 2008 2007 2006 2006 10 16 2004 1 1 2008 12 31 2006 1 9 2006 1 9 3928 0.06 2006 EPS 0.1 2004 2005 2007 2008 50 10 / 30% 28 / ARPU IPTV 2007 2008

22 2006 5 2006 10 Cablemodem 20 2006 2008 0.64 2006 0.75 0.83 2007 2008 2004 2005 19.20 22.50 4.2 (600832) 6000 3000 2005 5008 46.43% 1027 31.902005 5 2006 2006 2 18 SMG DMB DMB LG 3G DMB 2006 10 PE 45-50 2006 EPS 0.26 2007 EPS 0.33 14.416.00 /

23 4.3 600825 180 19 +20 4 19 5000 20 2005 1000 2007 2007 6800 2007 4.4 (600831) G 30% 84% 8400 39000 2006 7 2006 1 7 14335 5703 2006 10000 30 1 13 2005 1

24 2006 7 2005 16292 4748 2006 1 7 14335 5703 2006 7 2006 1 8400 8400 10 10 20 30 PB PB 1.8 G 18 1.8 PB 33 30% 84% 50 PE 70 103 7.57 15% 7.57 32% 18 1.33 2007 1.8 11 1 25 0.07 1.75 11 4.5 (000917) 2007 2003 2006 6.5 1.1 EPS 0.33 2006 50%2006 16.5 / 24.5 / 34 6 28 49 20% 35% 52 2006

25 2007 2006 22.6 4.6 (600831) 842004 2392 35.59 524 47.12 30.78 55.32005 800 62.6 14 6 2006 11 10 2001 10 400 2006 1.3 65 7000 51 51 4.7 (600088) IPTV CCTV1010 2006 1.5 100

26 5. 600037 600825(000793) 600831 600832 600880 (600088)(000917) 14 EPS2006E EPS2007E PE 2006E PE 2007E 0.64 0.75 16.76 26 22 0.08 0.45 12.35 154 27 0.26 0.35 9.81 38 28 0.20 0.56 13.90 70 25 0.11 0.22 5.88 53 27 0.19 0.33 8.04 42 24 0.54 0.65 15.95 30 24 0.20 0.35 13.73 69 39 0.04 0.29 7.93 198 27

27 615% 65%15% 6-5%5% 6-5%-15% 6-15% 65% 6-5%5% 65%

28 02163411619 wangym@htsec.com 02163411586 gaodd@htsec.com 02163411556 zhengzu@htsec.com 02153830731 skwu@htsec.com 02163411374 luying@htsec.com 02163411376 dingpin@htsec.com 02163411371 zghan@htsec.com 02163411373 zhangluan@htsec.com 02163411380 chenmf@htsec.com 02163411375 dengyong@htsec.com 02163411369 guqing@htsec.com 02163411379 maying@htsec.com 02163411391 ymniu@htsec.com 02163411394 zhaot@htsec.com 02163411382 fumw@htsec.com 02163411381 guyq@htsec.com 02163411386 hejy@htsec.com 02163411392 hus@htsec.com 02163411372 huangjc@htsec.com 02163411393 kljiang@htsec.com 02163411366 lianmk@htsec.com 02163411384 qiucc@htsec.com 02163411367 qiuzc@htsec.com 02163411378 wangyh@htsec.com 02163411368 yanj@htsec.com 02163411385 yangp@htsec.com 02163411365 yelf@htsec.com 02163411370 yezg@htsec.com 02163411383 zhanwh@htsec.com 02153594566-7501 lml@htsec.com 02153830705 chenl@htsec.com 02153858540 zrchen@htsec.com 02153594566-7104 wanghui@htsec.com 02153594566-7128 xiey@htsec.com 02153594566-7127 yujg@htsec.com 02163411364 chenjiuhong@htsec.com

29 02163411361 wangs@htsec.com 02163411359 wanggg@htsec.com 02163411516 zqyong@htsec.com 02163411502 whx@htsec.com 02163411528 loujing@htsec.com 02163411501 huqian@htsec.com 02163411525 shankj@htsec.com 02163411526 wangyn@htsec.com 02163411527 wenz@htsec.com 02163411500 zhouj@htsec.com 02163411357 tangzy@htsec.com 02163411356 gaoqin@htsec.com 02163411362 gengdj@htsec.com 02163411329 hzh@htsec.com 02163411355 huxm@htsec.com 02163411352 jiwj@htsec.com 689 11 02163411357 02163411363 www.htsec.com