Digital Broadcasting Suffers Launch Delay

Korea Times (Seoul, Korea), March 7, 2001 | Go to article overview

Digital Broadcasting Suffers Launch Delay


Korea Digital Satellite Broadcasting (KDB) will delay the start of digital satellite broadcasting, originally due this October, because of a lack paid- in capital from shareholders and a lack of fundamental preparations.

Under the planned timetable, KDB, which is led by the state-run Korea Telecom, was scheduled to launch pilot broadcasting in July. After a three- month trial operation, it would then kick off the full-fledged satellite broadcasting service in October. However, even the possibility of pilot service may remains uncertain.

In mid-December, the Korea Broadcasting Commission, the semi-state broadcasting policy group, awarded a business license for the KDB as the operator of satellite TV channels, with the hope of becoming the leader in the next-generation broadcasting age. The launch is closely watched as the nation is seen as a test bed in Asia for satellite broadcasting services.

People close to the satellite business said that difficulty in obtaining funds caused the delays. According to the KDB, it will complete the receipt of shareholders' paid-in capital by March 14. In addition, the operator said that it plans to make public 12 percent of its shares to finance its existing short- and medium-term investments through a public offering in mid-April.

Still, the consortium is expected to easily attract its needed investment capital.

Another hurdle before launch will be supplying high-end broadcasting equipment. …

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