China Jianyin Investment Securities research report note that the cooperation of the GeHua CATV network through the establishment of a joint venture with foreign companies - Liberty Global Inc, the prevailing CATV network operator and PRC VenturePartners LLC, an American venture capital company focused on high-yield opportunities in China - is the first example of such cooperation between an A share listed Chinese media company and foreign players.

It has issued a strong recommendation and believes this cooperation will ease concerns about whether CATV can be successful in the Chinese market.

The research states that the company will promote the digital TV increment service through a new package marketing method, which will efficiently cut down the operational costs of the company's network. The research report predicts that the joint venture will be the platform for GeHua CATV network Co., Ltd to operate the network increment services, separating pricing and payment services to another business unit.

Package marketing and sale is a powerful tool for foreign CATV operators to explore a new market. As an example, the American COMCAST company offered a 'Triple Play' package service, the best method is to boost customer viscosity while bringing them better service. China Jianyin Investment Securities believe that this will be the trump card for GeHua to take over the domestic broadband network service market from existing operating companies.

The cooperation is expected to lower maintenance costs of the company's network operations. The company will provide network support, workplace and customer services to the joint venture, gaining income from paid-service and providing operating services like fee counting, customer service, installation and maintenance for the joint venture.