Taipei, Nov. 10, 2008 (CENS)--Taiwan`s leading cable TV operators recently announced the formation of an alliance with the island`s major STB (set-top box) makers to promote broadband digital TV service.

The participating cable-TV operators are China Network Systems, Kbro Co., Ltd., Taiwan Broadband Communications (TBC), and TFN Media Co., Ltd., and Taiwan Optical Telatform. Their STB counterparts include Prime Electronics Satellitics Inc. and Zinwell Electric Co., Ltd.

The five cable-TV operators have a total of 3.5 million subscribers or so, commanding over 80% of Taiwan`s cable TV market. They are considered as the major element of the island`s digitized TV service.

The island`s cable-TV industry is estimated to plow NT$150 billion (US$4.5 billion at US$1:NT$) into broadband infrastructure over the next five years. The investment is projected to generate revenues of NT$370 billion (US$11 billion).

Industry watchers pointed out that the government has been in recent years promoting Internet connections on optical-fiber broadband network and helping service providers install broadband infrastructure. In addition, the government has coordinated local cable-TV providers, Internet service providers and equipment suppliers to work together to develop Taiwan into the digital-content center of Chinese.

Chairman of Prime, J.H. Hsu, pointed out that his company has begun shipping the boxes since the second half this year, mostly to mainland China, filling part of the huge demands triggered by the Beijing Olympic Games. The company is the major supplier of the 50,000 STBs contracted by Kbro. So far this quarter, the company has recorded new buyers in Indonesia, the Philippines, and Mexico. Hsu estimated STB to account for over 50% of his firm`s revenue next year.

Industry watchers estimated domestic shipments of the boxes to increase next year thanks to the promotion of digitized cable TV service.



(by Ken Liu)