Star hooks up with GigaMedia

<p>GigaMedia, a broadband Internet access service and content provider </p><p>in Taiwan, has formed a joint venture with Star TV to develop a </p><p>broadband interactive TV service platform in Taiwan. </p><p><BR><BR> </p><p>The deal was struck after GigaMedia's plan to work with Pacific Century </p><p>CyberWorks fell through. </p><p><BR><BR> </p><p>Under the terms of a memorandum of understanding, Star and GigaMedia </p><p>will form a 50:50 JV, which will operate as an independent company with </p><p>its own management team. </p><p><BR><BR> </p><p>Through the joint venture, cable subscribers in Taiwan will be able to </p><p>enjoy an unprecedented array of converged content and premium </p><p>interactive services such as enhanced television, and e-commerce via </p><p>set-top boxes. </p><p><BR><BR> </p><p>Mr James Murdoch, the chairman and chief executive officer of Star, said </p><p>US$1 billion will be invested initially. The money will mainly be </p><p>used to help GigaMedia upgrade its systems. </p><p><BR><BR> </p><p>The service is expected to be launched in the second half of next year </p><p>with one million users, according to Mr Murdoch. </p><p><BR><BR> </p><p>The chairman of GigaMedia Chester Koo said that once the JV had firmly </p><p>established itself in the Taiwan market, it would target Chinese </p><p>communities around the world. </p><p><BR><BR> </p>