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