Kabelvision teams up with Malaysian Astro for multimedia service<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
PT Broadband Multimedia Tbk., better known as cable TV operator
\nKabelvision, and Malaysian cross-media operator Astro All Asia
\nNetwork Plc., have agreed to set up a joint venture company to
\nprovide multi-channel satellite and multimedia services in
\nIndonesia.<\/p>\n
The partnership will invest US$1 billion over the next five
\nyears. Astro will hold 51 percent of the shares in the joint
\nventure company, and Lippo Holdings, Kabelvision's parent
\ncompany, 49 percent.<\/p>\n
The deal was made against the backdrop of tension between the
\nIndonesian and Malaysian governments over the Ambalat block oil
\nfield.<\/p>\n
\"The Astro-Lippo joint venture company will have an initial
\ncombined shareholder's fund of $65 million,\" the Malaysian firm
\nsaid in a media release on Tuesday.<\/p>\n
Additional cash funding is expected to be raised through a
\ncombination of third party loans, equity and other instruments.<\/p>\n
\"We have been very focused on expanding our digital multimedia
\nplatform into Indonesia as it is a natural market extension for
\nus,\" Astro group chief executive officer Ralph Marshall said.<\/p>\n
Citing the growing telecommunications services sector in
\nIndonesia, the joint venture will be in a strong position to
\nprovide interactive multimedia content using Kabelvision's
\nexisting network.<\/p>\n
\"This is an area where Astro has significant skills and
\ncapabilities, and is consistent with our stated strategy of
\nexpanding our multimedia business in the region,\" Kabelvision CEO
\nMarshall Cooper said.<\/p>\n
The new joint venture is targeted to reach 10 million homes,
\nrepresenting about 25 percent of the local market, within five
\nyears.<\/p>\n
Kabelvision started operations in the early 1990s, along with
\nIndovision.<\/p>\n
The main difference between the service providers is their
\nmeans of transmission. Indovision subscribers must use satellite
\ndishes, while Kabelvision is distributed via optical cable.<\/p>\n
Kabelvision also provides broadband Internet.<\/p>\n
Astro is Malaysia's leader in commercial radio and publishes
\nthe high-circulation magazine, The Astro Guide.<\/p>",
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"sponsor": "Okusi Associates",
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