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Press Release

03/01/2005

LG ELECTRONICS TESTIFIES BEFORE U.S. CONGRESS ON DIGITAL TELEVISION

LG ELECTRONICS TESTIFIES BEFORE U.S. CONGRESS ON DIGITAL TELEVISION

LG ELECTRONICS TESTIFIES BEFORE U.S. CONGRESS ON DIGITAL TELEVISION

WASHINGTON, DC - LG Electronics was the only representative of the consumer electronics industry invited to provide expert testimony before the United States Congress in a hearing on the U.S. transition to digital television.

Speaking before the Telecommunications Subcommittee of the U.S. House of Representatives on Feb. 17, LG Electronics Vice President Dr. Jong Kim explained LGE's leadership in digital television technologies and the company's commitment to advancing the digital transition in the United States. Other witnesses were a broadcaster, a cable operator and a government official, all of whom discussed how and when the United States will move to digital-only television broadcasting.


At the hearing, LGE was asked to comment on the pricing and timetable for deployment of converter boxes that will help make it possible to shut off analog broadcasting. Dr. Kim described a low-cost approach to digital-to-analog converter boxes that would allow the 70 million U.S. TVs that rely solely on over-the-air broadcasting to receive digital signals.

"The level of technology necessary for a basic digital-to-analog converter box is much less than is required for today's more full-featured STBs that output high-definition signals and retail for $200 to $400. We contemplate the manufacture of converter boxes that will receive and demodulate all 18 formats of the ATSC DTV Standard, but will output only low-resolution analog signals," said Dr. Kim, who also is Vice President for LGE's Zenith subsidiary.

"This is sufficient for the average consumer to enjoy the DTV experience. In fact, consumers who have been watching snowy analog TV pictures will love the crisp, studio-quality digital pictures even on their older, low-definition televisions sets using one of these simple digital-to-analog converters. While analog TVs will not display full high-definition resolution, these boxes will allow consumers to take advantage of the increased number of channels available through digital multicast terrestrial DTV broadcasts."

Dr. Kim concluded: "Based on our DTV experience and expertise in the design and manufacture of DTV set-top boxes, LG estimates that the retail price of a simple digital-to-analog converter box will be under $100 by 2006, accounting for technology levels and licensing fees, and assuming production volumes in the millions of units. Digital-to-analog TV converter prices may be as low as $50 by 2008, assuming industry-wide demand of tens of millions of units by then."

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