Terayon pact clears way for spring launch of i-Cable service

The launch by i-Cable Communications of Hong Kong's first broadband cable-modem Internet service could be as early as March, following i-Cable teaming up with US-based Terayon Communication Systems.

A technical, non-exclusive agreement has been signed that will enable i-Cable to offer services using Terayon's synchronous code division multiple access (S-CDMA) technology.

S-CDMA enables cable operators to offer two-way communication at speeds of up to 10 megabits per second (mbps) and with greater reliability than other cable-modem technologies, according to the US company.

Use of the technology will also pave the way for i-Cable to provide further voice, data and video transmission services to its 450,000 subscribers.

Stephen Ng Tin-hoi, president and chief executive of i-Cable, said the co-operation with Nasdaq-listed Terayon opened doors for the company to expand in multimedia.

'Broadband Internet service is just the first step. We are looking for voice-IP [Internet protocol] and video transmission to the family.

'We are also looking for regional expansion with Terayon in future.' Terayon chief executive Zaki Rakib saw great potential for broadband applications in Asia as more than 80 per cent of Internet access was now through cable modem.

'Hong Kong has the potential to be one of the fastest broadband growth markets in the world, with its combination of high PC penetration rates and cable infrastructure that passes a million homes,' he said.

The 10 mbps speeds promised by cable modem were more than six times the 1.5 mbps provided by Cable & Wireless HKT's Netvigator service.

However, the cable speeds were on a shared basis, meaning actual speeds might be lower depending on the number of users.

Mr Ng said the number of broadband subscribers had hit 20,000 last year.

He declined to project the year-end target for users but said it should be more than the existing number. The Internet access service of i-Cable has signed up 150,000 registered subscribers in less than half a year, making it the fourth-largest Internet service provider in Hong Kong.

Trials of the broadband service had been a great success, Mr Ng said.

The service would be formally launched in March in Ma On Shan, Tai Wai, Sha Tin, Kwun Tong, Tseung Kwan O and Lam Tin.

The cable modem price is estimated at $1,000 to $2,000.

INTERNET