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Establishment of Joint Venture.
Estonian broadcast transmission company AS Levira and Estonian leading cable TV operator AS Starman have come to an agreement according to which the companies have on the 20th of September 2006 establish a joint venture - Eesti Digitaaltelevisiooni AS (Estonian Digital Television Ltd.). The company will start to provide Digital Terrestrial Television services on the
territory of Estonia.
66% of the shares in the new company are held by Starman and 34% by Levira. The share capital of the new company is 46 million Estonian kroons. Levira will provide new company with contribution, encoding, multiplexing, distribution and transmission services. Starman will be responsible for the sales and marketing of the product, distribution of digiboxes, program
acquisition and customer service. The service will be marketed under Starman brand. One of the main goals of Eesti Digitaaltelevisiooni AS will be to attract at least 50 000 customers during the first two years.
The sale of DTT services in Estonia will start in December 2006. The service offered by Eesti Digitaaltelevisiooni AS will enable customers outside the reach of cable networks also to enjoy digital multichannel television over terrestrial networks. The service footprint will initially cover 63% of the population, by the end of 2007 the coverage will reach 96% of the population. The service will initially consist of 18 pay channels. It will complement the free-to-air offering that is going to be formed of 3-6 channels in 2006-2007.
The fee for the pay-service will be 99 kroons per month (including VAT). The digibox necessary for the reception of the service will be sold at app. 2000 kroons or rented at 39 kroons per month (including VAT). First 10 000 DTT MPEG-4 SD STB-s have been ordered from Kaon Media and shall be made available to subscribers in December.
Levira has started rollout of 3 countrywide MPEG-4 DTT networks to be completed by 2008. Head-end was delivered by Tandberg Television, main transmitters by Rohde & Schwarz, combiners by Teracom Components, Media networks equipment by Net Insight and conditional access system by Conax.
AS Levira (www.levira.ee) is a radio communications infrastructure company based in Estonia, Tallinn. The owners of Levira, the former Estonian Broadcasting Transmission Centre Ltd are the Estonian state (51%) and the French telecom and broadcast transmission company, TDF (49%). Levira is Estonia's largest radiobroadcast and it's only TV-broadcast transmission
provider. Levira engages itself in network planning, engineering and development and has recently also started to provide different audio-visual services (SNG, ENG, OB) in Estonia and abroad. In 2005 Levira was granted a licence in 3,5 GHz band and is currently in second stage of rollout a countrywide WiMax network.
AS Starman (www.starman.ee) is the biggest cable-TV operator in Estonia and the second largest broadband Internet provider. In the beginning of 2006 Starman started to provide also digital-TV services over its cable network. Starman is an employer to app. 190 people and the company's networks cover almost 45% of Estonian households. Starman is listed on Tallinn stock Exchange since 2005.
Additional information:
Indrek Lepp
AS Levira
Business Development Director
Tel.: +372 680 4000
Fax: +372 680 4001
e-mail: indrek.lepp@levira.ee
www.levira.ee