Diba Inc. has announced that Taiwan-based DynaLab and Sampo Group will be the first distributor and manufacturer, respectively, to produce its set-top units which allow users to connect to the Internet via their television and any Internet service provider (ISP).

"This means we're making good strides forward as far as penetrating the Asian market," said Joe Gillach, vice president of marketing for Diba.

DynaLab, developer of Asian font subsets and high-end computer chip-sets that enhance font performance, has been licensed to resell the Diba technology and software to Asia-based consumer electronic companies, manufacturers, and service providers, the company says. DynaLab will also localize the technology for the Asian market. Asian manufacturers can then use DynaLab's localizing services to make the product and resell it themselves.

The fist such manufacturer to sign an agreement with DynaLab is Sampo, which will sell the set-top boxes through retail outlets in Taiwan and China under the Sampo brand name later this year. The boxes are expected to be distributed to ISPs and other non-retail outlets in the US later this summer, according to Gillach.

Diba also announced today that Sampo is the first company to order Diba's Set-Top Manufacturing Kit, which includes the software necessary to produce the kits, and the recipe for putting together the hardware. "It's almost a blueprint that shows the manufacturers how to make the set-top boxes," said Gillach.

The kit tells the manufacturers what chips, processors, and other hardware is needed, and then how to put it together. Since Diba has already created the process, manufacturers can start producing immediately. "They can start manufacturing now instead of a year from now," said Gillach.

The company expects the set-top's ability to connect with any ISP make it more attractive than television Internet service WebTV, which requires customers to use the WebTV service with their WebTV units.

"Why would an ISP want to sell a unit that can't use their service?" he said. ISPs placing orders with Sampo might also have the opportunity to distribute the set-top units with their own name on it, according to Gillach. "An ISP could ask Sampo to put their logo on it and Sampo would probably be happy to do that."

For consumers, the set-top boxes are appealing as well. For those who already have an ISP, the set top boxes work with the same provider. "The benefit is that this allows for another entry point to the Internet," said Gillach.

People who do not have use for the applications of a computer but want access to e-mail and the Internet can use the set-top boxes to gain access through their television, said Gillach. "This allows them a cost effective way to serve both functions," he said.

Diba also says that two more manufacturers of the set-top units are to be announced in the upcoming weeks.

Source: Newsbytes