ATI Brings High-Definition Television To The Rest of Us

ATI Brings High-Definition Television To The Rest of Us

ATI Technologies Inc. (NASDAQ:ATYT)(TSX:ATY), the leader(1) of the VSB receiver chip market, just made high-definition reception for television sets more affordable with the introduction of the Theaterâ„¢ 311, Theaterâ„¢ 312 and Theaterâ„¢ 314 chipset solutions. ATI’s Digital Television group has created this new technology for high-definition TV (HDTV) manufacturers to deliver outstanding high-definition TV signal reception while reducing overall production cost. ATI is offering these solutions to help ensure that ‘no viewer is left behind’ as the broadcast industry works through the digital transition.

ATI developed the new Theater chips as a response to current and future HDTV requirements. More specifically, the United States Federal Communications Commission (FCC) has recently reaffirmed the digital tuner mandate requiring 50 per cent of all 25-inch to 35-inch TVs include digital tuners by July 1, 2005 and accelerated the 100 per cent mandate for this same segment from July 1, 2006 to March 1, 2006. The FCC has also announced it is considering shifting the mandate for digital tuners in 13-inch and greater sets to December 31, 2006. Simultaneously, United States legislators are also now proposing a hard shut-off date for off-air National Television System Committee standard transmissions as early as 2008. This mandate and legislation, along with increasing consumer demand, are driving TV manufacturers to convert mid- and low-end TV products to digital formats at an unprecedented rate.

Until now, converting analog consumer products to digital in this short time has left manufacturers with a tough choice. They have had to lower the cost by integrating low performance vestigial sideband (VSB) receivers that limit the ability to receive the digital signals and hope the end customer will not notice. Or, embed a high-performance receiver that can cost a few dollars more. As a result, less price sensitive large screen digital televisions (DTVs) are likely to have the best off-air reception, but they are more likely to be connected to a cable or satellite set-top box (STB) receiver. Mid- and low-end DTVs are likely to be used for off-air reception and are more likely to include an inferior cheaper receiver increasing the risk that these TVs may go dark when analog is shut off. ATI developed the Theater 311, Theater 312, and Theater 314 receiver chip solutions to help ensure that this scenario does not become a reality during the digital transition.

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