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lge.co.kr
Name : LG Champ
Date : 97.11.11
Reference : 68
Zenith Gains Satellite Contact.
Zenith Electronics has signed agreement to build IRDs for News Corp.'s Sky
Latin America, breaking into satellite business for first time.
Under agreement, Zenith will build single DVB-compliant IRD containing MPEG-2
video data compression with deliveries to start by early 2nd quarter 1998.
Box will contain 2,400-baud modem, although design allows for addition of
connectors, faster modems and larger memory, Zenith Network Systems Pres.
William Luehrs said.
Set-top box will be co-marketed with LG Electronics, which owns 57% of Zenith.
Box will be sold separately under each brand and in combination, Luehrs said.
"We'll try to use the brand that matches the need of that particular market," he
said in saying that while Zenith brand is strong in Mexico and Brazil, LG has
cache in other countries. LG also will supply memory and other components for
box, Luehrs said. IRD will be shipped preassembled to most markets although it
will arrive in Brazil as kit, he said.
"The platform we have is one common reference design that we can use
different variations of in different markets, but the hardware will serve us around
the world," Luehrs said.
Zenith will build IRDs at Chihuahua, Mexico, plant with shipments reaching
"several hundred thousand" units over several years, Zenith spokesman said.
Pace Micro Technology, which also is supplying Sky Latin America with IRDs,
signed agreement with Dovatron International to build boxes in Mexico (TVD
Aug 18 p19).
Deliveries are slated for Jan.-March with annual production for Mexico of
200,000-250,000, Pace said.
Zenith, which will be competing with DirecTV's Latin and S. America DBS
service, was said to have been in running as IRD supplier for News Corp.'s
proposed ASkyB service In U.S. Service folded earlier this year as part of
proposed merger with Echostar, deal that later collapsed.
On Americast front, Zenith will start production of digital wireless MMDS box
for BellSouth in 4th quarter, with wired version due for Ameritech, GTE and
SBC in spring, Luehrs said. BellSouth is expected to test product in Atlanta.
Volume production had been slated for 2nd quarter (TVD Feb 24 p8). Although
Americast recently cut some jobs to eliminate overlap, Luehrs said partners
remain "dedicated to concept of rolling out digital video services." Zenith has
5-year,$1-billion, contract with Americast to build 3 million digital set-top boxes
at Mexican plant (TVD Aug 26/96 p5). "We have the flexibility to use either
dedicated lines [for Americast and Sky products] or mix and match them on a
single line," Luehrs said.
IAC TRADE AND INDUSTRY DATABASE 15/09/97
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