London -- Saudi Arabian industry sources say SaraVision,the proposed digital wireless cable (MMDS) system installed by NextLevel Systems Inc.(soon to be renamed General Instrument Corp.), is to be abandoned.
SaraVision, in its fourth year of preparation for launch,has been subject to frequent delays and technical problems, the most recent being itsexpected start date of Jan. 1, which slipped to April 1. It is understood a governmentcommittee, chaired by the Saudi Arabian TV minister, will decide how best to use the GIinfrastructure.
The MMDS operation was initially expected to be animportant Mideast multichannel effort because satellite dishes are technically banned inSaudi Arabia, although their use is widespread.
The decision to shut down SaraVision will also affectDenver-based United International Holdings Inc. (UIH), which was involved with ARA GroupInternational (SaraVision's sister company) in providing operational management. Anew chief operating officer, Larry Scudder, had recently been installed in Riyadh, theSaudi capital, to supervise operations at SaraVision, and bring the commercial aspects ofthe project to fruition.
In the complex world that is Saudi Arabian politics, it maysimply be that time had run out on what has become an embarrassment. SaraVision could wellrise again in another form, but that will take time, allowing Orbit Satellite Televisionand Radio Network, Showtime, Arab Radio & Television and other direct-to-homebroadcasters to gain extra subscribers, making any talk of banning dishes in the regioneven more difficult to implement.
