China Network Systems Co (
"With digital broadcasting systems, a TV is not only a TV, but also a platform to exchange information and interact with people," Nelson Chang (
Through the alliance, Quanta Computer's subsidiary Quanta Network Systems Inc (
Quanta Computer shares fell 0.9 percent to NT$58.50 on the Taiwan Stock Exchange yester-day. The company said yesterday that sales fell 1.5 percent last month from a year ago to NT$25.3 billion (US$756 million).
China Network is not publicly listed.
China Network is pinning its hopes on the new set-top boxes to help boost TV commerce, as it plans to launch various services by the end of the year, Gary Tsai (
The new services include stock trading, banking and shopping, which can be conducted via a TV remote control, Tsai said.
With the rollout of the services, the company expects to extend its coverage from northern Taiwan -- mainly the greater Taipei area, Keelung and Taoyuan -- to the south, and enlarge its subscription base from the current 30,000 households to 200,000 by the end of next year.
The ambition may sound unrealistic, however, given the small number of people who have subscribed to digital TV over the past two years. Two other digital TV providers -- Eastern Multimedia Co (
"We need to try to bring in as many subscribers as possible to entice more content providers," Tsai said. "With service to start in our key market, Taipei City, I believe the target can be reached."
Last year the Taipei City Government capped the prices of set-top boxes at NT$3,500, which was NT$1,500 to NT$2,000 less than cable companies wanted. Companies now lend the boxes for free to subscribers.
The strategy has worked to bring in customers in Taipei City who have been longing to see an advanced digital system replace the analog system for a long time, Tsai said.
However, Chiu Fu-sheng (
"The key is content," Chiu said.
At present, most basic channels on the digital platform have been shifted from the cable system, giving viewers little difference and thus little incentive for them to make the switch, Chiu said.
He said he will consider producing digital content when the subscriber base is large enough to generate economies of scale.
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