CA Systems market in China

CA systems are an essential component of any digital pay-television platform. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers and block unauthorized access to their networks. 

This allows television network operators to offer more premium content and value-added services with the assurance of receiving additional revenues for such content. 

CA systems use a combination of signal scrambling and encryption to prevent unauthorized viewing of cable television programs. Software installed at the cable television operator’s transmission point, or head end, scrambles the outgoing television signal. A set-top box installed at the subscriber’s end unscrambles the television signal when it receives authorization from the head end to do so. This authorization is encrypted for greater security, and is decrypted by a smart card inserted in the set-top box. Each smart card, a plastic card containing a computer chip, is also programmed with operator and subscriber information.

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Industry outlook

Industry outlook is very positive in developing countries like China due to:

Rising number of Television Viewing Households :- With rise in economy the number of households with television is expected to rise steadily.

Positive Govt. policies :- In support of digitalization of cable network in Chinese Govt. initiate many steps like:

• Approved tax concessions for television network operators that digitalize.

• Mandatory migration of analog subscribers to digital subscriptions. 

• Availability of funds for digitalization.

Rising number of Digital Television subscribers :- The China has the largest television viewing market in the world, with televisions in 362 million households as of December 31, 2006, according to "Analysys International". 

Only approximately 3.5% of television viewing households in the China subscribed to digital television as of December 31, 2006. but in future Due to better quality, Govt. policies and additional benefits the number of digital cable television subscribers is expected to rise rapidly.

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This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision

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