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STMicroelectronics Reinforces Digital Satellite Leadership with Turbo Code Technology |
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Paris, May 11, 2000 - STMicroelectronics (NYSE: STM) today announced that it has signed a license agreement with France Télécom that gives ST worldwide rights to exploit one of the most important patents* in the field of broadband communications. The subject of the patent is a technique known as Turbo Code Forward Error Correction that allows the information carrying capacity of a communications system to be substantially increased. This could dramatically affect the Digital Satellite TV market by significantly increasing the number of TV channels broadcast by existing satellites. For the first application of Turbo Code technology, ST is targeting the US Digital Satellite Receiver market, where the use of Turbo Code would allow each satellite transponder to deliver from six to eight standard TV channels (or two HDTV channels), compared to four or five standard TV channels today, with additional bandwidth available for Internet download. With the leading US operators keen to increase their channel offerings, adoption of Turbo Code technology could create an initial demand for more than 10 million new set-top boxes (STBs) and spur its adoption as a worldwide standard. In the European Digital Satellite market, where the number of channels offered is not such a competitive feature, the same technology would allow the size of the satellite dish to be reduced by 30% and lead to lower system costs. The more efficient use of available bandwidth means that existing satellites could not only broadcast more TV channels, but would also have sufficient bandwidth left over to handle both high speed Internet downloads and a Return Channel for use in Interactive Satellite TV. ST plans to introduce a low-cost two-way satellite modem chip based on Turbo Code technology in 2001. "Turbo Codes are attracting enormous interest because they enable communications technology to approach the theoretical limit of efficiency," said Philippe Geyres, Corporate Vice President and General Manager of ST's Consumer and Microcontroller Groups. "By working closely with the inventor of the technology, ST has gained an important advantage in one of the most exciting developments in the communications field, one that could significantly increase the strong leadership ST already has in the market for digital satellite receiver chips," continued Geyres, who noted that ST is the first chip manufacturer in the world to offer this technology to its customers. A chip designed by France Télécom in cooperation with ST has already been produced at ST's plant in Crolles, France, and ST has produced working demonstrations based on the first samples. Customer samples will be available within the current quarter. ST is also integrating Turbo Code technology into its STV0x99 family of Digital Satellite front-end chips. In addition to gaining access to all of France Télécom's accumulated Turbo Code know-how, ST is working with leading academic experts on future applications of the technology, including satellite modems for interactive satellite TV, Hard Disc Drives and UMTS wireless telephony. * US Patent 5, 446, 747 and its European equivalents About STMicroelectronics STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the ParisBourse and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. In 1999, the Company's net revenues were $5.056 billion and net earnings were $547 million. Further information on ST can be found at www.st.com. |
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