Kabelvision teams up with Malaysian Astro for multimedia service
Kabelvision teams up with Malaysian Astro for multimedia service
The Jakarta Post
Jakarta
PT Broadband Multimedia Tbk., better known as cable TV operator
Kabelvision, and Malaysian cross-media operator Astro All Asia
Network Plc., have agreed to set up a joint venture company to
provide multi-channel satellite and multimedia services in
Indonesia.
The partnership will invest US$1 billion over the next five
years. Astro will hold 51 percent of the shares in the joint
venture company, and Lippo Holdings, Kabelvision's parent
company, 49 percent.
The deal was made against the backdrop of tension between the
Indonesian and Malaysian governments over the Ambalat block oil
field.
"The Astro-Lippo joint venture company will have an initial
combined shareholder's fund of $65 million," the Malaysian firm
said in a media release on Tuesday.
Additional cash funding is expected to be raised through a
combination of third party loans, equity and other instruments.
"We have been very focused on expanding our digital multimedia
platform into Indonesia as it is a natural market extension for
us," Astro group chief executive officer Ralph Marshall said.
Citing the growing telecommunications services sector in
Indonesia, the joint venture will be in a strong position to
provide interactive multimedia content using Kabelvision's
existing network.
"This is an area where Astro has significant skills and
capabilities, and is consistent with our stated strategy of
expanding our multimedia business in the region," Kabelvision CEO
Marshall Cooper said.
The new joint venture is targeted to reach 10 million homes,
representing about 25 percent of the local market, within five
years.
Kabelvision started operations in the early 1990s, along with
Indovision.
The main difference between the service providers is their
means of transmission. Indovision subscribers must use satellite
dishes, while Kabelvision is distributed via optical cable.
Kabelvision also provides broadband Internet.
Astro is Malaysia's leader in commercial radio and publishes
the high-circulation magazine, The Astro Guide.