Beijing – Deals involving cable MSO Beijing Gehua and digital solutions supplier China Digital TV Holding underline the growing potential of the digital cable industry in China. The digital cable TV market will generate RMB5.8 billion (US$775 million) in subscription revenues by the end of this year, according to Media Partners Asia. By 2010, MPA expects almost half of China’s cable TV subscribers will have been converted to digital, equating to 84 million digital subs and RMB26.4 billion ($3.5 billion) in digital cable subscription revenues. Last month Beijing Gehua announced a 51:49 joint venture with strategic investor Liberty Global, Inc (LGI) and investment firm PRC Venture Partners. Gehua has a broadband base of fewer than 100,000 subscribers and wants to rapidly grow this business along with its fast-expanding digital broadcasting service, which has more than 800,000 subs. MPA suggests LGI could ultimately commit more funds and resources as Gehua develops its business and the regulatory framework becomes more accepting of a strategic partner like LGI, which is the leading global operator of international broadband cable TV. China Digital TV Co. (CDTV) made its debut on the New York Stock Exchange last month, opening at US$35 a share, up 119% from its IPO price of $16.The company intends to use net proceeds from the IPO for research and development, sales and marketing, acquisitions and general corporate purposes. CDTV has a market value of $1.9 billion. The company derives close to 90% of its revenues from the sale of CA systems (smart cards and related software) and has installed its CA at 130 digital TV network operators in 26 of China’s 32 provinces, regions and municipalities.