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To: John Rieman who wrote (37789)12/15/1998 10:46:00 AM
From: BillyG  Read Replies (1) | Respond to of 50808
 
Big Wins In Cash-Strapped Emerging Markets (Star TV is Asia's most watched satellite service, and it uses Zenith/Cube boxes).........
sumnet.com

Data communications less impacted in Asia, Latin America countries

From the Systems pages of Electronic News: December 7, 1998 Issue

By Carolyn Whelan

Glenview, Ill.--The cloud seems to be lifting over Asia. And certain parts of Latin America, too, at
least in the data communications space. Around the world, and even in areas hit hard by the Asian
flu, OEMs and service providers are announcing big wins in anything having to do with the
high-speed transmission of data and video.

And it's not just in telecommunications. It's also spilling over into television and other areas.

Take the last few weeks. On November 20, Zenith disclosed its plans to supply digital set-top boxes
for Asia's most watched satellite service: "Star TV."
That same day Eicon Technology, which makes
remote access products for PCs, announced new partnerships with telecommunications companies in
Shanghai and Beijing to help grow ISDN buy-in in China. Eicon will be thus positioned to supply
ISDN terminal equipment to telcos there. On November 30, BellSouth and Groupa Safra said they
had increased their stakes in BCP and BCP-NE, "rapidly growing" cellular operators in Sao Paolo
and Northeastern Brazil. Together, the two companies now own 44.5 percent of BCP. And last
Thursday, Tellabs announced that it had supplied infrastructure equipment and technology to
MetroRED Argentina, which currently offers data and video transmission services in Argentina.

STAR TV is a subsidiary of Murdoch's News Corp (otherwise known as Fox). Right now STAR
reaches some 300 million pairs of eyes across Asia, India and the Middle East. And as many
countries in Asia, including Japan, have already gone digital (at least partially), while others, like
Singapore have installed a nationwide network for two-way cable access, many features and
functions that U.S. consumers are eagerly awaiting are already available to them. So, once regional
economies begin to take a turn, large-scale buy-in is possible. Zenith's boxes start shipping in early
1999. The set-tops STAR TV is deploying support direct broadcasting satellite (DBS) systems. They
can also handle alternative transmission methods like digital cable, terrestrial and MMDS.

"As one of the largest and fastest growing digital programming services in Asia, STAR TV
represents significant new opportunities for Zenith's World Box," said Charles J. Sindelar, vice
president of Zenith Network Systems.

Zenith's announcement trails similar agreements it made in Latin America with satellite companies
like the SKY Latin America satellite ventures in Mexico and Brazil, and for SKY Network
Television New Zealand.


As for the Eicon deal, the Beiijing and Shanghai Telecoms companies are looking to the company to
help accelerate the transition to new network capabilities within China, and to "increase business
activities" there. As part of its agreement with the telcos, which entails training and gear, in
collaboration with the telecommunications agencies, Eicon is to train trainers, marketing and
management staff on ISDN technology. It will also supply the required ISDN remote access
equipment to the Beijing and Shanghai Telecom training centers.

For BellSouth, increasing its stake in BCP means that it has a longer reach into the total population of
44 million people that BCP currently serves. BCP is an early but highly successful operator in the
Brazilian digital cellular space. The company, which has licenses in highly-populated Sao Paolo and
six states in Northern Brazil, has clocked more than 4 million subscribers since it hit the digital
TDMA switch this May.

"We have made Brazil a key component of our international growth strategy, and BCP's
Performance has already exceeded our most optimistic expectations," noted Charles C. Miller,
president of BellSouth International.

MetroRED Argentina has invested over $100 million in the construction of the largest fiber optic
network in Latin America, with an 85-kilometer network in Buenos Aires alone. Tellab's MartisDXX
managed access and transport network product was used in MetroRED's network for low- and
medium-capacity links. The company plans to lay a similar network in Brazil next year.