China Network Systems (CNS), the largest MSO (multi-system operator of cable TV service) in Taiwan, is actively promoting triple play (cable TV plus data and voice communications) to its cable TV subscribers and is negotiating a strategic alliance with Spain-based FON to offer WLAN service, according to the company.
CNS has about 100,000 cable TV subscribers around Taiwan and 20,000 in the Taipei metropolitan area subscribing to cable modem and cable phone services on a trial basis, the company noted. CNS hopes to extend triple play to its remaining subscribers, with triple play penetration to reach the rest of the Taipei metropolitan area in the third quarter of 2007 and for other market regions by the end of 2007, the company pointed out.
Triple play for 100,000 subscribers will entail an estimated investment of NT$1.0 billion (US$30 million) in network deployment and another NT$1.0 billion in COE (central office equipment) and CPE (customer premises equipment), CNS said. If the user base increases to 500,000 in four to five years, an additional investment of NT$2.5 million for COE and CPE will be necessary, CNS added.
In cooperating with FON to offer WLAN service, CNS plans to provide free APs (access points) for interested cable TV subscribers and is negotiating with local governments for establishing a network of hot spots, the company indicated. The procurement cost of APs is estimated at NT$500 million, CNS indicated.
MBK Partners LP, a private equity fund, has acquired a 60% stake in CNS, but the legal procedures for obtaining official approval has not been completed yet, CNS indicated.
Article translated by Adam Hwang and edited by Eric Mah
