US DTH Major EchoStar Has Entered The Asian DTH Market
With A 50:50 JV With AsiaSat
EchoStar Corporation is the world's 2nd largest DTH provider. Its 'DISH Network' DTH service has been operational in the USA for more than 25 years. For several years, EchoStar has harbored plans to establish operations in Asia. As part of these plans, EchoStar had obtained a license to offer DTH service in Taiwan. The license was issued to EchoStar in 2007 and is valid till 2015. EchoStar's EAML Asia operations have been talking to Taiwanese TV channels, for months.
AsiaSat, the satellite operator owns 80% of a struggling DTH platform - SkyWave which beams content to Hong Kong, Taiwan, Macau and surrounding areas. The subscriber count is scant, and exact subscriber numbers are not known. SkyWave offers only 34 channels which include AXN, Animax, BBC World News, Channel NewsAsia, NHK World, MTV and National Geographic. In March this year, AsiaSat admitted that SkyWave's business "remained static, and is expected to do so for the foreseeable future on account of the highly restricted market in which it operates". SkyWave lost HK$4.8 million/US$619,000 last year. SkyWave is operated from AsiaSat-4 located at 122.2 degrees East.
THE JV
On 1st June 2009, EchoStar and AsiaSat declared their Joint Venture to launch a DTH platform, primarily targeting Taiwan. The new service (as yet un-named) will be broadcast from the same AsiaSat-4 satellite. As a result, SkyWave DTH will be closed down, and maybe its existing consumers shifted to the new JV's DTH service. Justifying its decision to shut down SkyWave, AsiaSat told its investors that the JV aligns it with a well-established DTH player to tap into a growing business segment and "to capture new opportunities in this market". AsiaSat said the investment would increase its transponder utilisation rate, which was 60% last year and 49% the year before.
The Taiwan DTH platform, will be operated by a new 50-50 joint venture. AsiaSat and EchoStar will contribute equally to the US$35 million (Rs 170 Crores) venture, which will also have access to another US$18 million (Rs 88 Crores) in shareholder loans. AsiaSat will provide its Ku band transponders. EchoStar will bring to the table its operational expertise, license and digital satellite TV equipment.
"This joint venture between AsiaSat and EchoStar makes it possible to enter the growing Asian market that seeks a popular lineup of all digital television channels at an attractive price," said Steve Schaver, President of EchoStar International Corporation, a wholly owned subsidiary of EchoStar Corp. "The opportunity to partner with AsiaSat for delivery of video services creates an exciting opportunity for EchoStar as we enter the DTH market in Asia."
The service is expected to be available to consumers in the second half of 2009. Talk is that the service has targeted 0.5 million customers, within 12 months of commencing operations.
THE TAIWAN MARKET
Like India, Taiwan is a Cable TV dominated market, and earlier DTH platforms like SkyWave have failed.
Interestingly, again like India, a bulk of Taiwan's CATV homes receive analog signals. However, cable TV networks have promised a rapid upgrade to digital, in the next few years. Cable network Taiwan Broadband Communications (TBC) plans to buy 30,000 to 40,000 digital STBs this year. TBC plans to invest over US $ 100 Million ( Rs 450 Crores) for its network upgradation in the next 3 years.
The other 2 major CATV MSOs in Taiwan - China Network Systems (CNS) and Kbro have also declared plans for rapid digitisation.
The government is rolling out Digital Terrestrial Transmissions (DTT) but the roll out is slower than expected, say critics. Only 3.99% of households had switched to digital by end-2008, well short of the original 20% target.
In February 2009, Taiwan's government reaffirmed its commitment to a complete transition to digital by the original 2013 deadline. Based on this, estimates are that Taiwan may require 10 million digital STBs by 2014.
Past experience worldwide has shown that DTH can only struggle for a minor share (less than 30%) in any market where Cable TV is pre-established as the dominant delivery mode. Will Taiwan be any different n
With A 50:50 JV With AsiaSat
EchoStar Corporation is the world's 2nd largest DTH provider. Its 'DISH Network' DTH service has been operational in the USA for more than 25 years. For several years, EchoStar has harbored plans to establish operations in Asia. As part of these plans, EchoStar had obtained a license to offer DTH service in Taiwan. The license was issued to EchoStar in 2007 and is valid till 2015. EchoStar's EAML Asia operations have been talking to Taiwanese TV channels, for months.
AsiaSat, the satellite operator owns 80% of a struggling DTH platform - SkyWave which beams content to Hong Kong, Taiwan, Macau and surrounding areas. The subscriber count is scant, and exact subscriber numbers are not known. SkyWave offers only 34 channels which include AXN, Animax, BBC World News, Channel NewsAsia, NHK World, MTV and National Geographic. In March this year, AsiaSat admitted that SkyWave's business "remained static, and is expected to do so for the foreseeable future on account of the highly restricted market in which it operates". SkyWave lost HK$4.8 million/US$619,000 last year. SkyWave is operated from AsiaSat-4 located at 122.2 degrees East.
THE JV
On 1st June 2009, EchoStar and AsiaSat declared their Joint Venture to launch a DTH platform, primarily targeting Taiwan. The new service (as yet un-named) will be broadcast from the same AsiaSat-4 satellite. As a result, SkyWave DTH will be closed down, and maybe its existing consumers shifted to the new JV's DTH service. Justifying its decision to shut down SkyWave, AsiaSat told its investors that the JV aligns it with a well-established DTH player to tap into a growing business segment and "to capture new opportunities in this market". AsiaSat said the investment would increase its transponder utilisation rate, which was 60% last year and 49% the year before.
The Taiwan DTH platform, will be operated by a new 50-50 joint venture. AsiaSat and EchoStar will contribute equally to the US$35 million (Rs 170 Crores) venture, which will also have access to another US$18 million (Rs 88 Crores) in shareholder loans. AsiaSat will provide its Ku band transponders. EchoStar will bring to the table its operational expertise, license and digital satellite TV equipment.
"This joint venture between AsiaSat and EchoStar makes it possible to enter the growing Asian market that seeks a popular lineup of all digital television channels at an attractive price," said Steve Schaver, President of EchoStar International Corporation, a wholly owned subsidiary of EchoStar Corp. "The opportunity to partner with AsiaSat for delivery of video services creates an exciting opportunity for EchoStar as we enter the DTH market in Asia."
The service is expected to be available to consumers in the second half of 2009. Talk is that the service has targeted 0.5 million customers, within 12 months of commencing operations.
THE TAIWAN MARKET
Like India, Taiwan is a Cable TV dominated market, and earlier DTH platforms like SkyWave have failed.
Interestingly, again like India, a bulk of Taiwan's CATV homes receive analog signals. However, cable TV networks have promised a rapid upgrade to digital, in the next few years. Cable network Taiwan Broadband Communications (TBC) plans to buy 30,000 to 40,000 digital STBs this year. TBC plans to invest over US $ 100 Million ( Rs 450 Crores) for its network upgradation in the next 3 years.
The other 2 major CATV MSOs in Taiwan - China Network Systems (CNS) and Kbro have also declared plans for rapid digitisation.
The government is rolling out Digital Terrestrial Transmissions (DTT) but the roll out is slower than expected, say critics. Only 3.99% of households had switched to digital by end-2008, well short of the original 20% target.
In February 2009, Taiwan's government reaffirmed its commitment to a complete transition to digital by the original 2013 deadline. Based on this, estimates are that Taiwan may require 10 million digital STBs by 2014.
Past experience worldwide has shown that DTH can only struggle for a minor share (less than 30%) in any market where Cable TV is pre-established as the dominant delivery mode. Will Taiwan be any different n