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To: Scott Lerner who wrote (3450)11/21/1997 3:20:00 PM
From: Robert Utne  Read Replies (2) | Respond to of 6570
 
Scott, Glenview monitors this site. Like to broaden the readership/participation to include thousands of other investors/brokers/fund managers wanting to capitalize on the CE digital revolution. Any ideas?



To: Scott Lerner who wrote (3450)11/21/1997 5:43:00 PM
From: Terry Berg  Read Replies (1) | Respond to of 6570
 
Subject: C-Cube

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To: David Nadalin (25516 )
From: BillyG Friday, Nov 21 1997 11:56AM EST
Reply #25558 of 25578

Korea adopts U.S. digital TV standard............

11-22-97 : Korea Adopts American Standard for Terrestrial Digital TV Broadcasting; ATSC More
Suitable for Nation Than Europe's DVB-T Format

By Yu Kun-ha Staff reporter

As expected, Korea has adopted the American standard for its terrestrial digital TV broadcasting service, which is
scheduled to start in 2001. For several months, Korea has weighed the American standard, known as ATSC
(Advanced Television System Committee), against the European standard, called DVB-T (Digital Video
Broadcasting-Terrestrial). The American standard received broad support from members of the Committee for
Promotion of Terrestrial Digital TV Broadcasting. The committee, consisting of experts from the electronics industry,
broadcasting community and academia, recently recommended that the Ministry of Information and Communication
(MIC) adopt ATSC.

Accommodating this suggestion, the ministry said yesterday that the American standard proved to be more suitable for
Korea in technological, economic and service terms. On the technological side, the two standards differ in channel
frequency bandwidth, audio signal compression and transmission, while for video signal compression and multiplexing,
they both rely on the same MPEG-2 specifications set by the Moving Picture Experts Group (MPEG). In channel
bandwidth, ATSC allocates 6 megahertz (MHz) to each channel, while DVB-T uses 7-8 MHz. In Korea, as in the
United States, the current analog TV broadcasting system allocates 6 MHz to each channel. This means ATSC will
make it easier for Korea to move from analog to digital in TV broadcasting.

For audio compression, the American standard uses Dolby AC-3, while the European format follows MPEG-2 audio
specifications. Dolby AC-3 is a higher-level audio standard than MPEG-2. The European firms which hammered out
DVB-T stopped short of adopting Dolby AC-3 in consideration of the multiplicity of languages used in European
countries. In transmission technology, the American standard uses a method called vestigial side band (VSB), which
was developed by Zenith Corp., an American electronics company now owned by LG Business Group. The European
transmission mode is called orthogonal frequency division multiplexing (OFDM).

According to MIC, VSB is a proven technology as it is a modification of an existing analog modulation method.
Compared with OFDM, it is easier to implement and offers a higher data rate. OFDM excels VSB in channel efficiency
as it enables a broadcasting station to cover the whole nation with a single frequency network (SFN). With VSB, a
broadcasting company would have to use several frequency bands for nationwide coverage. OFDM is also better than
VSB in terms of its capability to send signals to mobile TV sets and ghost prevention.

In economic terms, ATSC offers a bigger business opportunity for Korean manufacturers of TV sets and broadcasting
equipment than DVB-T, as the United States is the world's largest market. Both in the United States and Europe, digital
over-the-air TV broadcasting will begin in 1998. But in Europe, the market for digital TV sets is expected to grow
more slowly than in the United States, where digital TV is already popular thanks to the satellite-based services
introduced by Hughes Corp. in 1994. By 2006, American demand for digital TVs is expected to reach 130 million sets,
while the European demand will total 23 million sets, according to an industry forecast.

In addition, Korean TV manufacturers have already accumulated considerable expertise in ATSC-based TV sets
because the government-initiated digital TV development program has been focused on ATSC since it was first
suggested in 1990. For instance, LG Electronics recently developed a set of chips enabling production of low-cost,
small-sized digital TV sets based on ATSC. MIC also said that ATSC requires less investment by broadcasting
companies than DVB-T. The estimated cost saving is 1.2 trillion won.

In terms of service, the American standard is a better choice for broadcasting companies as it allows them to air
programs in two formats, either in standard-definition TV (SDTV) or in high-definition TV, depending on the nature of
the program. For instance, they can provide programs that require higher resolution like an opera performance or sports
event in the HDTV format, while offering ordinary programs like dramas in the SDTV format. The European standard is
basically designed to offer programs in the SDTV format. But work is underway by European firms to incorporate the
HDTV format in their standard.

Considering all these factors, Korea's choice of ATSC appears to be appropriate. But domestic TV manufacturers will
continue their R&D on DVB-T because Europe is a large market they cannot afford to ignore. The government's
decision on the Korean digital TV standard came some eight months after it began deliberation on the two standards in
March this year. MIC said it will specify details of the standard by the end of next year, one year ahead of the
scheduled launch of trial digital TV service in 2000. But Korean TV manufacturers are moving to develop digital TV
sets before 1998 to carve out a share in the American market. For them, the American market is of vital importance as
it will determine their success or failure.

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