...settop boxes, which are two generations ahead...
Optus Trials Multimedia TV
Finola Burke
05/11/98
Australian Financial Review
Page 21
Copyright of John Fairfax Group Pty Ltd
Optus Communications Ltd will this week begin trialling a digital satellite system that will give its subscribers access to the internet, music, video-on-demand services, and pay-TV channels all through the television set.
It is the second stage of Optus's strategy to revitalise its pay-TV business. A fortnight ago, it unveiled a bold campaign to slash its pay-TV prices to encourage more people to buy the service.
With the satellite trial, Optus will initially install highly sophisticated digital set - top boxes in 40 homes around Australia to test the technology it has developed with its largest shareholder, Cable & Wireless plc.
The set - top boxes are equipped with modems, sophisticated encryption signature and an internet cache and will eventually have smart card capabilities to allow subscribers to take a range of services through the one piece of architecture.
Optus will test video and data streaming, pay-per-view, near video-on-demand, internet services and music channels as well as offer 16 of its existing pay-TV channels.
The set - top boxes, which are two generations ahead of the technology in use in Australia today, are also compatible with Optus's broadband network which has been rolled past 2.3 million homes.
If the trial proves successful, it will give Optus the ability to extend its pay-TV service beyond the current broadband network into homes it cannot reach at present and put the pay-TV and telephony company at the forefront of developing services for the converging domains of television and computers.
The trial, which is being driven by Optus Multimedia's chief executive, Mr Don Hagans, also presents a short-term opportunity for Optus to provide its satellite pay-TV signal to Australis Media's 70,000 Galaxy subscribers.
As of late last week, Galaxy subscribers face the loss of the Galaxy signal if Australis's receivers are unable to reach an agreement with Optus's satellite arm, Optus Networks, to continue carrying its signal.
Optus is seeking a guarantee from Australis's receivers, Mr Peter Walker and Mr Steve Sherman from Ferrier Hodgson, that Australis can honour the commitments of its long-term, multi-million-dollar contract with Optus Networks.
It is understood that Optus will offer to provide its signal to Australis subscribers and is already in negotiations with the country's largest regional pay-TV operator, Austar, to provide its signal to Austar's 200,000 subscribers.
Austar, which is one of Australis's two franchisees, has also reached agreement with Foxtel to take its programming should Australis lose its signal.
If successful in those negotiations, Optus will achieve partial rationalisation of the pay-TV industry by having its signal taken by potentially up to 440,000 homes, presenting it with a strong bargaining chip for future rationalisation discussions with Foxtel, which currently has just over 300,000 subscribers.
KEY POINTS
* Optus Communications will start trialling a multi-service digital satellite system this week.
* It will provide access to the internet, music, video-on-demand and pay-TV - all via a TV set.
* Optus will install digital set - top boxes in homes around Australia to test the technology.
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