Altech expects to shortly announce an empowerment partner for its multimedia division, Altech UEC.
The set-top box manufacturer aims to empower itself to gain an edge over UK-based rival Pace Networks.
Altech CEO Craig Venter says empowerment will give it a better chance of securing orders from MultiChoice, as well as being involved in government's rollout of digital terrestrial television.
SA is in the middle of a changeover period from the old analogue signal to digital broadcast, which is expected to be switched on from next year.
However, in order to view the new signal, about 10 million households will need to buy a set-top box, expected to retail for between R400 and R700. Altech UEC aims to benefit from the switchover, and has already manufactured two million decoders.
Altech UEC's results for the year to February were impacted by delays in getting digital television off the ground, as set-top boxes were initially expected to go to market last month.
Pipeline
During the year, operating profit dropped from R33 million to R5 million, as revenue slowed from R1.3 billion to R1 billion. Altech UEC is Altech's second-largest business unit after Autopage.
Internationally, the unit has secured orders from Turkey-based Digiturk for 130 000 units, 60 000 for the Australian digital migration project, and expects opportunities in Africa. The company is also targeting the high-margin high-definition market.
Altech UEC also has developed the MediaGate concept, which allows movies to be played via an Internet protocol set-top box in the home. This concept will open a new market in the telecoms arena, as converged technologies increasingly become a customer requirement in the future.
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