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CaTV companies to go digital


2007-03-08

Cable TV operators are preparing to switch from analogue technology to digital. This has been prompted by increasing competition from digital satellite TV platforms, which are gaining more clients.
According to Gazeta Prawna, the introduction of digital CaTV is being considered by the leader on the cable TV market, UPC Polska. The newspaper reports that the number of channels available via the provider’s network will rise from the existing 60 to around 100. At the moment, the operator is negotiating with broadcasters and is working on the details. This includes a decision on a supplier of digital decoders, which would make possible a “digital VCR”, HDTV or video-on-demand (VoD) service. The company emphasises that it is too early to discuss the details. It admits, however, that Liberty Global, the company’s owner, plans to launch a digital TV offer in Poland and Hungary. UPC Polska has stated, however, that it does not intend to be the first company to switch to digital at any cost.

UPC’s competitors, Vectra, Multimedia Polska and Aster, already offer digital TV, but coverage is limited and does not include services such as digital VCR, HDTV and VoD. Multimedia Polska claims that these will be available in the second quarter. Other companies are also expected to launch them in the near future.

The introduction of digital technology should allow CaTV operators to compete with digital satellite TV platforms, which are becoming increasingly popular. Cyfrowy Polsat already has over 1 million subscribers, and Cyfra+ is close upon its heels. The smallest, in terms of customer numbers, platform – “n”, launched by the ITI group in 2006, is about to cross the 100,000 threshold. The CaTV operators are observing that revenues from the television sections of their businesses are growing slowly, whereas those generated by other services, such as internet access, are undergoing more robust increases.


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