Chengdu Dr. Peng Telecom & Media (600804.SH) mainly engages in telecom value-added service, security monitoring system, and network media. Its urban fiber network covers 12,000 km, having 12 million subscribers in Beijing, wherein amount of paid users exceeds 500,000. Dr. Peng’s operating revenue of Internet service reached RMB736.64 million in 2011H1, up 24.92% YoY.

On 9 November, Anti-monopoly bureau of NDRC started to investigate the suspected monopoly of China Telecom and China Unicom in the Internet market and would probably penalize these two enterprises, which will lead the Internet access market to workable competition. Dr. Peng pays about USD200 million per year to operators as bandwidth rental fees. If the investigation can reduce bandwidth rental fees, it will indirectly improve profitability of Dr. Peng.

Besides, Dr. Peng’s large scale data center in Beijing Jiuxianqiao has basically completed construction and is in the stage of equipment debugging. Part of its customers with intention started testing and moved into the center. The designed capacities of the data center are 6,300 cabinets, containing 50 thousand servers, which will become the new growth engine of IDC business of Dr. Peng. 

China Broadband Access Market, May 2011