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SCMP Reporter

Television Broadcasts' overseas arm TVB International (TVBI) is to launch its delayed, direct-to-home satellite TV service for Taiwan by the middle of next year, deputy general manager Michael Chan said.

 TVBI and its Taiwanese partner Era, have taken four transponders, or signal receiver/transmitters, on the Malaysian Measat-2 satellite for the service.

 Mr Chan said the platform would offer Internet access and interactive services such as home banking, as well as about 15 channels of programming.

 TVBI will supply its three Taiwanese channels, with Era adding two home-grown services. In Hong Kong, Turner Broadcasting System confirmed it had reached agreement with the joint-venture partners to relay its CNN International and TNT & Cartoon Channel services.

 The South China Morning Post last month reported problems with the distribution of signals had caused a postponment of the original launch date in this year's third quarter.

 Jack Chang, chief operating officer, for another proposed Taiwanese DTH operation, SpaceTel, suggested the delay was caused by interference from microwave frequencies used by state-owned Chunghwa Telecom.

 Mr Chan, however, insisted the problem had been resolved and that Measat 2 was now providing 'a strong and clear signal'. He blamed delays in getting equipment for the hold up. 'We got to the end of the summer and realised that we were two months behind schedule. So we thought: why not wait until next year when we could launch all the services together?' said Mr Chan.

 Taiwan is Asia's strongest pay-TV market with 80 per cent of the island's 4.5 million homes taking cable TV. Mr Chan said the service, whose name remains a closely guarded secret, would initially target upper-income homes unable to get cable.

 TVBI is seen in 95 per cent of cable-linked homes and Mr Chan said this distribution would be unaffected by the creation of the DTH platform. 'We are a software provider and as far as we are concerned it does not matter how we are distributed. We are interested in creating as many revenue streams as possible.'  News the venture now appears to have a launch date will be welcomed particularly by the Malaysian satellite operator. Measat remains in financial difficulties prompted by the fall in value of the ringgit against the US dollar. Its domestic DTH service, Measat Broadcast, reaches about 175,000 subscribers, but expansion plans into India, the Philippines and Indonesia have been shelved.

 Although Mr Chan said Philips Electronics was due to provide the set-top boxes for the Taiwan venture, the Dutch multinational has suspended its involvement in Measat Broadcast after the Malaysians failed to pay US$20 million for equipment ordered.



TVBI set to start Taiwan service