First Successful Bite of the Digital Television Marketdmx.listedcompany.com/newsroom/DMX CATV...
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First Successful Bite of First Successful Bite of the the Digital Television Market Digital Television Market
Transcript of First Successful Bite of the Digital Television Marketdmx.listedcompany.com/newsroom/DMX CATV...
First Successful Bite of First Successful Bite of thethe
Digital Television MarketDigital Television Market
VisionVisionARCHITECT OF DIGITAL ASIA
Time
RelativeTrafficSize
Voice (PSTN)Voice (PSTN)
Data (Broadband)Data (Broadband)
Video(DMX growthsegment)
Digital Video is our vision of the future…
Digital Video is our vision of the future…
2000 2008
Our Core Market SegmentsOur Core Market Segments– Telco: Broadband– Enterprise (Banking & Govt): Security– CATV (new initiative): Digital Video
Consumers&
EnterprisesTELCO CATV
Existing SI Business:• 24 subsidiaries ofChina Telecom & Netcom• 4 Telco in Malaysia
New initiative (3Q03):• Maiden income in FY2004
The Potential of Digital Video in ChinaThe Potential of Digital Video in ChinaNo. of Subscribers(Million)
Government target
Time0
20
40
60
80
100
120
2003 2005 2008Source: SARFT
World#1
The Market for Digital Video in ChinaThe Market for Digital Video in China1.3 billion people350 million TV households, of which 100m are cable subscribers (analog)1,300 TV stations owned by local government, State Administration of Radio, Film & Television branch, and CCP committee2000 cable network operators in total, of which 100+ are sizeable CATV31 provinces4 municipalities (Beijing, Shanghai, Tianjin, Chongqing)
Source: Gartner Inc., October 2003
NationNation--wide Optical Networkwide Optical NetworkAlternative with higher quality that is more secure than satelliteUse fibre instead of satellite dish farms30,000km network connects 31 provinces
ProvinceProvince#1#1
ProvinceProvince#n#n
City #nCity #nCity #1City #1
JuniperRouters(160G)
… …
JuniperRouters(160G)
NortelOpteraDWDM(10G)
OpticalNetwork
…
SARFTSARFTState Administration of Radio, Film and TelevisionGovernment body that approves content and programs of radio and TV channels and oversees film importsOversees the operation of China Central Television (CCTV) and the nationwide fiber optic TV network Controls access to, and supervises the operations of, the nation’s satellite and cable networks
New Initiative: New Initiative: Digital Video SolutionDigital Video Solution
IPNetwork
TV
PC
STB
DVB
Cable
DigitalAssetsMgt
Broadcast, Multicast,Streaming,On-demand Servers
Billing, SMS(DMX C-bill)
ConditionalAccess
Gateway
Digital Broadcast Centres
Router
Smart Card
Transport Networks Consumers
IMS(DMX Max)
DMXDMX
DMX
Our 1Our 1stst CATV DealCATV DealContract with CDB– Design and build a digital broadcasting system (DB
System) which comprises of a broadband multimedia data-broadcasting platform, subscriber management system and billing system
CDB is a subsidiary of SARFT– Its function: provide high-quality multimedia services to
CATV networks in 31 provinces in China– Its delivery: through state-own nation-wide transport
network
Our 1Our 1stst CATV DealCATV DealDB System will become the platform for CDB to launch nation-wide data broadcast, digital television, and other types of services in the future
Roll-out– Phase 1: Beijing Gehua CATV, Tianjin CATV, Hunan
provincial CATV, Sichuan provincial CATV, China Telecom
– Phase 2: 31 provinces in China
The CATV Game PlanThe CATV Game PlanCDB is a strategic vehicle to standardise systems of cable operatorCable operators tap into a single source of content, rather than rely on their own satellite dish farms to access programmingIn line with the government’s desire to offer a single, easily controlled source of programming
HierachicalHierachical StructureStructure
TVSTBDVB
Cable
DB System
Smart Card
Consumers
Prefecturecities
CDB Operation Centre(Beijing)
Provincecapitals
DB SystemMajorCities
DB System
DB System
… …
Nation-wideFibre Optic Network
…
CATV Operators
DMX
Impact on DMXImpact on DMXStrategic deal– Tight cooperation on service plan and roll-out– Only party on the DB System project– Spring-board for more such projects– A few more deals expected in 2H2004
Initial contribution not material– Takes 3 months to build– Subscriber-base revenues not expected in 2004
Architect of Digital AsiaArchitect of Digital Asia
1995
2000
2005
Network Integrators
System Integrators
System Architects
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