Guangzhou Digital Media Group Selects Entropic Communications Access Technology to Offer IPTV Service to Its Subscribers

/ Source: GlobeNewswire

BEIJING and SAN DIEGO, March 22, 2011 (GLOBE NEWSWIRE) -- CHINA CONTENT BROADCASTING NETWORK EXPO -- Entropic Communications (Nasdaq:ENTR), a leading provider of silicon and software solutions to enable connected home entertainment, announced today that Guangzhou Digital Media Group has selected Entropic's Broadband Access Ethernet-over-Coax (EoC) technology to offer IPTV service to its subscribers. Entropic's EoC solution provides Guangzhou Digital Media Group a way to increase revenue by offering subscribers new premium services, such as IPTV, broadband connectivity and interactive TV, to name a few.

Leveraging its investment in MoCA® (Multimedia over Coax) technology, Entropic is developing Broadband Access products for the Guangzhou Digital Media Group; which enables an EoC solution that is mature, stable, and can provide a high performance, low latency, bandwidth-rich backbone for the delivery of high-resolution IP video. Guangzhou Digital Media Group is deploying Entropic's EoC technology to meet the government mandate for a next generation broadcasting network that delivers IP-based broadcast and unicast video streams to its subscribers.

"The IPTV opportunity in China is both highly-profitable and desirable as it will allow us to grow our subscriber base, expand revenue, improve customer retention and become even more competitive," said Mr. Li Rui, director for network management, Guangzhou Digital Media Group. "We are running IPTV service powered by Entropic's high bandwidth, robust solution. We have plans to actively grow our IPTV business by deploying a total of 50,000 IPTV subscribers in 2011 and 200,000 IPTV subscribers within three years."

Entropic's technology is comprised of its EN3011 Access Network Controller and the EN3230 Access Client silicon, and enables a full mesh home network to be formed using existing coax cables and splitters. A single Broadband Access solution provides over 250 Mbps of raw data bandwidth yielding over 100 Mbps of application throughput and was designed as a low-cost, easy-to-deploy solution using the existing coax infrastructure already found in multi dwelling units and single family housing.

David Zhu, CEO of ShenZhen JetNet, the original equipment manufacturer (OEM) responsible for deploying the Entropic EoC solution added, "Entropic's EoC technology is a great fit for Chinese cable operators, like Guangzhou Digital Media Group, whom are transitioning to the meet the mandated next generation broadcasting network requirements. Additionally Entropic's high throughput, scalable technology will provide Guangzhou Digital Media Group the opportunity to launch multiple premium services, which will enable greater average revenue per user."

Entropic's EoC solution is scalable with a single network controller supporting up to 63 clients, with rate control available on a per client basis. By operating above the regular CATV signals and providing frequency agility between 800 MHz and 1500 MHz, additional network controllers can be added to support even more clients to the network. In addition, delivering operator-class robustness and unmatched bandwidth over the longest reach, Entropic's Broadband Access solution represents the performance benchmark.

"Having our EoC technology selected by Guangzhou Digital Media Group for its next generation broadcasting infrastructure is an honor," said Tom Luan, vice president and general manager, China operations, Entropic. "We are confident our feature-rich EoC solution will future-proof Guangzhou Digital Media Group's bandwidth requirements; allowing them to deliver IP-based premium services to their subscribers."

About Guangzhou Digital Media Group

Guangzhou Digital Media Group (), formerly Guangzhou Radio and Television Network Limited, is the largest cable TV operator in Guangzhou City. Guangzhou Digital Media has about 2.5 million cable TV subscribers, with about 1 million broadcasting digital TV subscribers.

About Entropic Communications

Entropic Communications, Inc. (Nasdaq:ENTR) is a leading fabless semiconductor company that is engineering the future of connected home networking and entertainment by providing next-generation silicon and software technologies to the world's leading cable, telco and satellite service providers, OEMs and consumer electronics manufacturers. As a co-founder of MoCA (Multimedia over Coax Alliance), Entropic pioneered and continues to evolve the way high-definition television-quality video and other multimedia and digital content such as movies, music, games and photos are brought into and delivered throughout the home. For more information, visit Entropic at .

The Entropic Communications logo is available at

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding the expected benefits of Entropic's Broadband Access solutions, Entropic's leadership in providing MoCA enabled technology, and continued or future integration of technology into products of OEMs. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, the effects of competition from alternative technologies; Entropic's dependence on a limited number of service providers and customers in China; the risk that the market for broadband access and EoC solutions in China may not develop as anticipated; risks associated with international operations and sales; the effect of intellectual property rights claims; and other factors discussed in the "Risk Factors" section of Entropic's Quarterly Report on Form 10-K for the year ended December 31, 2010. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

CONTACT: Investor Contact: Debra Hart Director, Investor Relations 858.768.3852 Media Contact: Chris Fallon Ruder Finn for Entropic Communications 212.715.1691