Qiao Xing's (XING) subsidiary, Huizhou Qiao Xing Communications Industry Company (QXCI), has signed an agreement to supply its newly launched set-top-box product to Beijing Radio & TV New Viewpoint Trading Company (BRTNV).
Under the terms of the agreement, within the first twelve months of the deal BBTNV will distribute, through its distribution network of cable television operators, up to US$20 million of set-top-box products supplied by QXCI. BRTNV, a professional company directly under the control of the State Administration of Radio Film and Television (SARFT), is engaged in the promotion of products relating to radio and television service network.
Set-top-boxes allow for existing analogy television sets to receive a digital TV signal. Digital TV signals are now being compulsorily prompted by SARFT and cable television operators and are expected to entirely replace the existing analogy TV signals by the year 2010.
It is estimated that China has over 350 million cable television users with analogy television sets. These users will have to shift to digital service either by buying a new digital television set or by equipping their existing television with a set-top-box, which is far more cost effective.