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China Applies its Policy to Promote Digital TV

The deployment of 'Whole System Shift', a government effort to speed up the conversion of urban households from analog to digital cable TV, is driving China's digital cable set-top box (STB) market, reports In-Stat.

As a result, unit shipments of digital cable STBs are projected to quadruple, from 3 million in 2005 to 12 million in 2010. "Most of the digital STB shipment increases will come from basic set-top boxes," says Rebecca Tan, In-Stat analyst.

"Most cable operators that are now installing Whole System Shift provide only basic services, and networks have not yet begun to install two-way networks. Operators' ability to provide interactive services is limited in the short-term, therefore, operators prefer basic boxes."

In-Stat's study found the following:

- Following several trials of Whole System Shift, the digital-cable TV subscriber base jumped dramatically from 800,000 to 2.7 million by the end of 2005.

- There will be steady growth in advanced-box shipments, reaching 1.5 million by 2010.

- Total revenue of cable STBs in China is projected to reach $586 million by 2010.

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