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Largest Pay-TV Market Opportunity is in China

Posted By David Deans, 03 November 2009 | 0 Comments | (1)
Tags: Digital TV China set top box smart card conditional access systems Digital Broadcasting Cisco

The Chinese cable market is currently the largest in the world with 160 million subscribers and is predicted to grow to as many as 200 million over the next three to five years.

Currently, only about one-third of the market has converted to digital cable. With the Chinese government mandating full digitization by 2015, this represents an important long-term opportunity for Cisco.


Cisco has announced a definitive agreement to acquire the set-top box business of DVN (Holdings) Limited, (SEHK: 0500).


Listed in Hong Kong with major operations in China, DVN is a market and technology leader in digital cable solutions in China and shares Cisco's vision of a high-performance, scalable and services-rich cable interactive platform extending into every home.


In addition to the acquisition, Cisco has entered into a go-to-market alliance with the remainder of the DVN organization -- which will continue to be led by current DVN CEO Terry Lui -- in order to utilize the company's middleware and advanced applications as well as integration and support services.  The alliance will provide joint customers with unparalleled end-to-end capabilities through the evolution from basic digital broadcast to advanced interactive services.


"Cisco and DVN have similar cultures that emphasize video innovation and a shared vision to enable multi-media connected homes across China," said Ken Klaer, vice president and general manager, International Cable Business Unit at Cisco.


"With this acquisition, we will offer customers the powerful combination of DVN's products with the Cisco IP Next-Generation Network (IP NGN) platform, and Cisco will be well positioned to engage in the largest digital transformation opportunity in the world today."


"Cisco's global technology leadership and breadth of services combined with DVN's market-leading solutions and talented employee base will ensure that Chinese consumers continue to receive superior digital services today and are provided with world-class advanced technologies moving forward," said DVN CEO Terry Lui.  "Cisco has demonstrated a strong commitment to the Chinese market, and I look forward to working with them as part of our ongoing alliance."


Between the signing of the agreement and the close of the acquisition, Cisco and DVN's set-top box businesses will continue to operate as separate companies.


Upon completion of the transaction, the DVN set-top box business will become a part of the International Cable Business Unit within the Service Provider Video Technology Group (SPVTG) at Cisco led by Klaer.

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