China Digital TV reports low smart cards sale in Q2

MUMBAI: China Digital TV Holding, the provider of conditional-access-systems (Cas) to the country‘s digital television market, has announced that it has shipped 2.13 million smart cards in its second quarter, ended 30 June.

The company had earlier expected to ship around 2.35 to 2.55 million smart cards.


The company is blaming consolidation in the cable industry among the other reasons for the low sales. Says China Digital TV president Dong Li, "Shipment of smart cards during the quarter was lower than anticipated. Some cable operators have chosen to delay digitisation projects due to uncertainties resulting from the ongoing consolidation in the cable industry and the lack of mature value-added services for digital TV platforms presently."

Also, there may not be a fast growth considering the fact that some operators may maintain a wait-and-see attitude towards digitisation.

However, Li has shown hopes of improved condition in the near future as government has mandated full digitisation by 2015. "We are confident that China Digital TV‘s experience in providing CA (conditional access) solutions for large and complex projects, stable financial position, existing partnerships with more than 200 cable television operators and leadership in value-added services development will position us to play a leading role in China‘s ongoing digital mass migration and beyond," he adds.

The company has entered into 12 out of a total of 18 new contracts to install CA systems in China in the second quarter of 2009.

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