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To: DiViT who wrote (24875)11/5/1997 3:47:00 PM
From: John Rieman  Respond to of 50808
 
More UK settops.........................................................

Focus-Uk Firms Move Closer To Digital TV Era

Received: November 04, 1997 01:00pm EST From: REUTERS

By Jeff Daeschner

LONDON, Nov 4 (Reuters) - British broadcasters on Tuesday
stepped closer to launching digital television on schedule next
year by unveiling two pacts that will be crucial to the
introduction of multiple TV channels in Britain.

Both deals involve the set-top boxes that all viewers will
need if they want to receive the new digital programming, which
boasts more channels, wide-screen format and CD-quality sound.

The difference is how the new channels will be delivered --
digital terrestrial TV (DTT) will offer some 30 channels via
viewers' existing TV sets and aerials, while subscribers will
need to buy a new dish to receive British Sky Broadcasting Plc's
200-channel digital satellite TV service.

On the terrestrial side, Britain's top DTT broadcasters,
including Carlton Communications Plc and Granada Group
Plc , said they had agreed on the industry-wide decoder
technology that will be wrapped into DTT set-top boxes.

"This announcement puts us on track to bring multi-channel
television to people's homes through existing aerials and
televisions," said John Egan, co-chairman of the Digital
Multiplex Group (DMUX), which also includes the British
Broadcasting Corp [BBC.CN], Channel Four and Channel Five.

Not to be outdone, BSkyB and Franco-Italian chipmaker
SGS-Thomson Microelectronics NV said on Tuesday they
would collaborate to help manufacturers start mass production of
set-top boxes in the spring of 1998.

SGS-Thomson planned to supply chips for the set-top boxes
and use the same reference platform as the basis for its own
digital terrestrial decoder design.

Analysts said the rival deals reinforced the market's view
that Britain will see digital TV next year.

"It reconfirms that digital is here. This is affirmation
that the whole thing is going ahead," said Louise Barton, media
analyst at Henderson Crosthwaite.

Despite the news, the major broadcasters' shares fell amid

# Page 2

an overall weak market.

BSkyB's shares slipped 4.25 pence to 420, while Carlton shed
1.5 pence to 484 and Granada lost five pence to 820.5.

Among terrestrial players, British Digital Broadcasting
(BDB) -- the pay-TV venture between Carlton and Granada -- said
it was inviting companies to put in their bids to make the first
batches of set-top boxes.

"This is an important milestone," said BDB director Nigel
Walmsley, adding that the group expected to announce a set-top
box deal with manufacturers in about a month.

According to some industry estimates, nearly one million
terrestrial versions of the set-top boxes are expected to be
available by the time of DTT's launch, which is set for the
second half of 1998.

The boxes are expected to be subsidised so that BDB
subscribers will pay about 200 pounds ($335) for the apparatus.

With the advent of DTT, Britons will be able to receive
existing free programming in digital format, new free channels
from the BBC and ITV, as well as BDB's subscription service of
up to 15 channels.

-- London Newsroom +44 171 542 7717
($ = 0.596 British Pounds)

REUTERS