BSI Selects SCM Microsystems and NDS

Broadband Solutions (BSI) of Seoul, Korea, has become the first Korean digital television operator to select SCMs CableCARD removable security module, incorporating NDS VideoGuard conditional access system. SCM and NDS were recently awarded certification by the Telecommunications Technology Association (TTA) of Korea for compliance with the Korean OpenCable standard for digital cable television broadcasts. Signing the first Korean operator demonstrates the success of the cooperation between NDS and SCM to provide cable operators in Korea and the U.S. with proven, reliable and cost-effective solutions based on the CableLabs OpenCable CableCARD interface specification. Operating one of the largest digital media centers in Korea, BSIs services include aggregating digital video and managing the end-to-end infrastructure for the delivery of DTV broadcasting from the head-end to the home. The company is at the forefront of the digital broadcasting rollout in Korea. Dacom, Koreas second largest communications service provider, committed an investment of US$20 million in BSI to create a strategic partnership between BSI and Dreamcity Media, one of Korea’s largest cable operators. In 2004, BSI plans to construct regional digital broadband media centers controlled by a centralized digital head-end. Initially these centers will serve the Dreamcity Media cable TV network, followed by Gangnam Cable TV and eventually aggregating additional cable TV networks. The Digital TV Market in Korea The Korean government is preparing to deploy digital cable television to between six and nine million households in Korea over the next several years. In November 2001, the Korean government selected OpenCable as the technical standard for securing the country’s digital cable TV broadcasts. OpenCable, originally developed by Cable Television Laboratories Inc. (CableLabs) for the North American cable TV market, includes both hardware and software specifications. One important feature of the standard is the CableCARD interface specification. Unlike earlier generation set-top boxes, this removable security module provides interoperability with multiple cable systems. It is a small device - like a PCMCIA card for a laptop computer - that can be sold at retail locations. Eventually, digital televisions will also accept the CableCARD module directly, eliminating the need for a set-top box. By adopting this open standards-based broadcast security model, the Korean government hopes to create a digital television industry that is both competitive for consumers and profitable for operators. Although the Korean security module is based on the same OpenCable CableCARD interface specification used in the U.S., the Korean security modules will not operate with U.S. OpenCable devices, nor vice versa, for regional security purposes. The software specification, known as the OpenCable Application Platform (OCAP), provides a common software environment for deploying interactive services. In February 2002, the Korean government also mandated that cable operators adopt the OCAP standard, a decision that cable operators, vendors and related organizations supported unanimously. Digital cable TV broadcasting services in Korea are scheduled to begin during 2004. Korean consumer electronics manufacturers are working on a fast track to build OpenCable- and OCAP-based devices in order to meet this schedule and satisfy market demand from both cable operators and consumers.