China Digital TV gets CA licence

China Digital TV, the US-listed Chinese conditional access specialist, has received a sales licence from China’s national encryption authority, the State Cryptography Association, allowing it to continue operating.

There had been some uncertainty as to whether the company would be granted a licence after the SCA in March 2007 passed new regulations requiring all TV users in China to use only encryption products certified by the SCA.

Jianhua Zhu, China Digital TV's chief executive officer, said: "Our success in obtaining this license shows our deep understanding of the local regulatory environment and our ability to stay ahead of new guidelines in this rapidly developing market. It also reduces our forward-looking business risks and gives us a competitive edge that we expect will help us continue to attract new customers."

But the company’s share price was largely unaffected by the news, rising 63 cents to US$8.77 before falling back to close at US$8.54. That is considerably less than its high of US$55.31 a year ago.