BEIJING, Sept. 18 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, today announced that it had been selected by China Satellite Mobile Broadcasting Corporation (CSM), a company under China's State Administration of Radio, Film and Television (SARFT), to provide CA systems to mobile TV networks throughout China. System installation is expected to be completed by the end of 2009.
China Mobile Multimedia Broadcasting (CMMB) is a home-grown standard for mobile TV broadcasting. With built-in CMMB modules, handheld devices such as mobile phones, PDAs and GPSs will be able to receive live TV programs and multimedia data. CSM commenced deployment of its mobile TV networks in July 2008 before the Beijing Olympic Games. Earlier this year the development entered its commercial phase and CSM operators began charging subscribers for mobile content. As of today, nearly 200 cities in China are covered by local CMMB networks and the number of cities is expected to reach 337 by the end of 2009.
China Digital TV is one of the two CA systems providers selected by CSM, and the only domestic provider. China Digital TV has deployed simulcryption projects in 10 provinces and regions including Beijing, Shanghai, Tianjin, Jilin, and Liaoning, and expects to be present in all 31 provinces across China by the end of 2009. Post installation of head-end systems, China Digital TV will provide terminal-end solutions, which are compatible with most handheld devices on the market, to local CSM operators on demand.
"We are extremely proud to be a CA provider in this landmark national project," said Mr. Dong Li, China Digital TV's president. "The partnership with CSM has created another future revenue source for us, and we are excited by the possibilities of the promising mobile TV market in China."
"CMMB's rapid development over the past year demonstrates the government's determination to push the mobile TV industry forward. Industry experts expect the total mobile TV subscriber base to increase into the tens-of-millions within three years. With our first class engineering capability and customer-centric service tradition, I believe China Digital TV will replicate the success we have enjoyed in the digital cable TV market in China's expanding mobile TV industry," Li continued.
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans and future market positions. China Digital TV may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.
Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.
About China Digital TV
Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiaries, Beijing Super TV Co., Ltd. and Beijing Novel-Super Media Investment Co., Ltd, and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd.
For investor and media inquiries, please contact:
In China:
Eric Yuan
China Digital TV
Tel: +86-10-8279-0021
Email: ir@chinadtv.cn
Cynthia He
Brunswick Group LLC
Tel: +86-10-6566-9504
Email: che@brunswickgroup.com
In the US:
Kate Tellier
Brunswick Group LLC
Tel: +1-212-706-7879
Email: ktellier@brunswickgroup.com
