Star hooks up with GigaMedia

GigaMedia, a broadband Internet access service and content provider

in Taiwan, has formed a joint venture with Star TV to develop a

broadband interactive TV service platform in Taiwan.

The deal was struck after GigaMedia's plan to work with Pacific Century

CyberWorks fell through.

Under the terms of a memorandum of understanding, Star and GigaMedia

will form a 50:50 JV, which will operate as an independent company with

its own management team.

Through the joint venture, cable subscribers in Taiwan will be able to

enjoy an unprecedented array of converged content and premium

interactive services such as enhanced television, and e-commerce via

set-top boxes.

Mr James Murdoch, the chairman and chief executive officer of Star, said

US$1 billion will be invested initially. The money will mainly be

used to help GigaMedia upgrade its systems.

The service is expected to be launched in the second half of next year

with one million users, according to Mr Murdoch.

The chairman of GigaMedia Chester Koo said that once the JV had firmly

established itself in the Taiwan market, it would target Chinese

communities around the world.