Shanghai Cable Network (SCN) Thursday signed a cooperation contract with Britain-based NDS Group plc, the world's leading provider of technology solutions for digital pay TV, to expand digital cable TV services in the city.

The contract will enable SCN to simulcrypt programming broadcasts on its network, a requirement for future business growth.

Simulcrypt is a protocol that enables two conditional access systems to run parallel on a single broadcast network.

With simulcrypt, Shanghai Cable Network will be able to broadcast programming encrypted through two systems within a single broadcast network, thereby creating more opportunity to carry programming from other programmers and broadcasters on the local broadcast platform.

SCN will purchase NDS technology to upgrade its cable system.

But Luo Xiaobu, deputy general manager of Shanghai Cable Network Co Ltd, didn't release the investment figure.

Shanghai Cable Network broadcasts to more than 3.5 million households, making it one of the largest single-city cable TV networks in China.

"The new NDS digital technology will help SCN create a hardware basis for more colourful programmes to audiences in the future," Luo said.

"NDS is attaching greater importance to the Chinese market in 2004 as many cable TV broadcasters in China plan to transition from analog to digital broadcasting," said Abe Peled, chief executive officer of NDS Group plc.

Shanghai Cable Network launched its operation of simulcrypt broadcasting at the end of 2003 after three months of close co-operation between support engineers from NDS China and SCN.

"This is a new milestone for the business development of NDS in China," said Gary Zhou, general manager of NDS China.

(China Daily February 27, 2004)