Microsoft targets Chunghwa Telecom contract, may reduce MSTV licensing fees

May 2, 2008 – Microsoft is reportedly considering reducing licensing fees for its Microsoft TV (MSTV) platform in order to win a contract with Taiwanese telco Chunghwa Telecom, currently using Alcatel-Lucent’s Open Media Platform (OMP).

Microsoft reportedly quoted Chunghwa Telecom a licensing rate of US$ 41 per new subscriber and a discounted rate for existing customers who would shift from OMP to MSTV, plus a percentage of the licensing fee as an annual charge for upgrading and maintaining the system.

According to local sources, Microsoft is considering eliminating the licensing fee for existing subscribers who would transfer over to the MSTV platform in order to secure the contract.  Winning the deal is predicted to help Microsoft gain entry into other markets in southeast Asia.

If negotiations over licensing fees are resolved then the contract is expected to be finalised by June of this year.