China Digital was a leading provider of conditional access systems (CAS) to cable-TV operators. CAS is security software installed in cable-TV operators’ head-end servers and distributed on removable micro-chip cards (smart cards) which are inserted in the set top boxes at subscribers’ homes. CAS played a critical role in protecting cable operators’ revenues streams by preventing unauthorized reception of digital TV broadcasting. China is the world’s largest cable-TV market and has been converting its analog cable-TV systems to digital systems en masse, which entails the use of CAS.
