The Swiss company SmarDTV, that belongs to the Kudelski Group, is in negotiations with two big Pay-TV operators of Latin America that would agree to launch in 2014 in Brazil the model of Pay-TV through Conditional Access Modules (CAMs) in TVs, replacing STBs. For that, SmarDTV is negotiating with two different TV manufacturers with which it is already working in Europe and would have given a green light to the project to take advantage of the sales during the Soccer World Cup.
The CAM model is difficult to implement in latin America given that it is necessary to convince television manufacturers to add this module to devices, which would make the cost slightly higher. Nevertheless, this system would benefit operators that could strongly reduced the CAPEX because they would eliminate the investment in STBs and could connect the digital service directly to TV through CAM.
SmarDTV has peeked the interest of some TV manufactures about the convenience of taking advent of the massive interest there will be in Brazil in 2014 to acquire new HD TVs for the Soccer World Cup of 2014. They will only have to manufacture in that country the same models that are already being marketed in Europe, where there already are 250 million installed equipment.
In turn, SmarDTV also has a good relationship with operators in Latin America because its a “sister” company to Nagra (both belong to the Kudelski Group). The negotiations are moving forward with big cable operator and a Latin American DTH operator. In Brazil Nagra has as clients the MSO Net (América Móvil) and Telefónica, although there is no concrete information of these being the ones that will drive forward TVs with CAM in the first stage.
In the European model, retailers sell different televisions prepared to receive the service from different Pay-TV operators, generally with promotions related to subscriptions.
The two Brazilian operators are choosing different TV manufacturers each, and will implement different models: one that will promotor TV with CAM with a special offer in electronics stores and retailers, and the other plans to purchase TVs and offer them as part of the package to new subscribers, as it is done with STBs and with cell phone in the wireless market.
There are three big CAM providers in the world: SmarDTV (Switzerland), Neotion (France) and SMiT (China), the three members of the Forum CI Plus which is responsible of standardizing CAMs. The new generation of CAMs CI+ allow access to premium Pay-TV content through broadcast and even broadband IP.
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