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

BEIJING and SAN DIEGO — 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.”