French Specialists to aid Russian Digital TV Switch

  The French company STMicroelectronics together with St.Petersburg’s General Satellite Corporation have achieved an agreement on co-operation in the area of digital TV. The microcircuits produced by STMicroelectronics will be used in the new digital TV-format MPEG4 receivers, manufactured by the enterprises of General Satellite.

  The director of the research and production division Pavel Chumakov said that the cooperation with STMicroelectronics is intended for production of digital TV receivers, which are optimal in respect to the price-quality relationship. It will be recalled that in accordance with the plans of the RF Government, analog TV is to be completely abandoned by 2016, with digital TV broadcasting to be carried out in MPEG4. Moreover, in most countries where digital format broadcasting is already underway MPEG2 is being used, which reduces the number of channels that can be viewed at the same frequency by approximately one and a half times.

  At the present time microcircuits already produced by STMicroelectronics will be used in receivers by General Satellite, while at some time towards the III quarter of 2008 it is planned to start producing receivers with the microcircuits manufactured by STMicroelectronics especially for them within the framework of agreement reached with General Satellite. Moreover the STMicroelectronics works in France is one of three plants in the world capable of producing the required microcircuits under technology 15 µm.

  STMicroelectronics develops more than 3000 different items; it is a leader in the production of MPEG2 and MPEG4 decoding integrated circuits, smart-cards (electronic credit cards) and non-volatile EPROM – memory. In 2006 the company's revenue totaled $ 9,85 milliard and net profit - $ 782 million.

  The receivers under design will receive signals in MPEG4-SD format. The approximate price is to be 1300 roubles per piece (the receiver TE-8310 MPEG4 which is now being produced by the company costs about 2000 roubles). Thereby, according to Mr. Chumakov, the new product will have no competitors in the market, since only the General Satellite Corporation possesses its own production facilities in Russia.

  The receivers will be produced in Kaliningrad. Pavel Chumakov noted that the start of production in this region is influenced by tax benefits which are valid in the special economic area. And in St. Petersburg a small-scale experimental production is in operation. In the future, according to Mr. Chumakov, the production of microcircuits for receivers may be transferred partially from France to Kaliningrad.

  The market for digital TV receivers in Russia is estimated to amount to 50 mln. pcs. Mr. Chumakov has said that the companies’ production facilities make it possible to produce several mln. pieces per year, and the demand for receivers will be satisfied completely since the digital TV is embedded step by step.

  General Satellite also plans to produce receivers with a telecast recording feature. Another project of the Corporation under discussion nowadays is the joint production of TV sets with built-in receivers for digital signal reception with a producer of TVs...

  The General Satellite Corporation was founded in St. Petersburg in 1991 and is now the only developer and producer of the digital TV receivers for satellite and terrestrial signal reception in Russia. The Company has 21 affiliates in 8 states of the world.