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STMicroelectronics Plays Key Role in UK's Free-to-View Digital Terrestrial TV Success Story |
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Geneva, December 11, 2003 - STMicroelectronics (NYSE: STM), the world's largest supplier of silicon chips for set-top boxes (STBs)1, today announced that it is has shipped a total of more than 2.5 million chipsets for the Digital TV Receivers, or Digital Converter Boxes (DCBs) as they are also known, that allow consumers in the UK to receive Freeview digital terrestrial TV channels on their analog TV receivers. The Freeview service offers UK consumers free digital TV and radio channels, as well as a range of interactive services and a sophisticated Electronic Program Guide, all via a standard TV aerial. "With over two million households enjoying access to over fifty TV and radio channels through their rooftop aerial in the UK today, Freeview has been an unqualified success. This would not have been possible without ST's initial vision and its commitment to making it possible for digital converter box manufacturers to achieve the target retail price of less than £100," said Matthew Seaman, General Manager of Freeview. According to Scottsdale, Arizona-based market research firm InStat/MDR, the digital terrestrial TV set-top box market should grow dramatically over the next four years. "We expect worldwide shipments of digital terrestrial TV STBs to reach eight million units by 2007," said Gerry Kaufhold, principal analyst with In-Stat/MDR. "The semiconductor value for these STBs will top $300 million during that year. ST is in a very strong position to take a large share of not only the set-top box market, but also the market for other consumer appliances such as Digital PC-TV Tuners, integrated Digital TV sets, and DVD recorders, where similar chips are used and significant growth is expected by 2007." Although fully digital, Freeview channels can be received on traditional analog TVs with the aid of a simple DCB, which typically retails for less than £100. "Over 20 manufacturers are currently supplying digital converter boxes to the booming UK market and we estimate that around 90% of these boxes use our chips," said Christos Lagomichos, General Manager of ST's Set-Top Box division. To kick-start the launch of digital terrestrial free-to-view services in the UK last year, ST developed a concept known as 'digital brick' (because it is a simple, low-cost building block). This is a complete reference design for the DCB, offered with full design support, including circuit schematics, Printed Circuit Board (PCB) layout and core software, that STB manufacturers can use immediately or adapt to meet their particular requirements. Key devices in the DCB include the STV0360 terrestrial demodulator and the STi5518, a member of the OMEGA family of STB decoders that is used in many STB designs worldwide, including satellite, cable or terrestrial. "ST has played a crucial role in the development of the UK's digital terrestrial TV services from the start and we are proud that our success in the UK has stimulated enthusiasm for digital terrestrial TV in many other countries," said Peter Marshall, Technical Director of the Digital Television Group (DTG). In fact, ST has already anticipated this growth by reusing its technology to help box manufacturers succeed in other markets. In Italy, for example, all of the set-top boxes deployed in the current digital terrestrial trials use ST's MPEG2 decoder chips and software drivers, and full services are expected to be launched in Q1 2004. About STMicroelectronics STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2002, the Company's net revenues were $6.32 billion and net earnings were $429.4 million. Further information on ST can be found at http://www.st.com. Notes for editors 1 InStat/MDR - MPEG Video IC Market: Larger than Ever - June 2003 (Report Number: IN030573MI) 2 All digital television signals are compressed before transmission using a technique called MPEG-2. For this reason, all STBs, whether for cable, satellite or terrestrial reception, must include an MPEG decoder. ST's OMEGA family is a range of highly integrated devices, each of which includes a high performance system processor, an audio/video MPEG-2 decoder, display and graphics features, a digital video encoder and a variety of system peripherals. ST is, and has been for many years, the world's leading supplier of MPEG-2 chips. |
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