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USDTV Gets $25M Infusion

U.S. Digital Television, LLC has signed a $25.75 million funding agreement with Fox Television Stations, Hearst-Argyle, McGraw-Hill, LIN TV, Morgan-Murphy and Telecom DTV to expand its digital alternative to cable.

Salt Lake City-based USDTV offers 30 all-digital channels, made up of local digital and HDTV broadcast channels and 12 cable networks including Fox News, ESPN and The Disney Channel. Salt Lake City, Albuquerque and Las Vegas are the three markets where the pilot is being tested with other markets expected to launch in the coming months.

Consumers receive the service through a VHF/UHF antenna connected to a proprietary USDTV set-top box, producing digital quality picture and sound on standard TVs. USDTV broadcasts its services by leasing spectrum from its TV station partners in each market. The USDTV services--including compatible STBs--will be available directly from USDTV and through national and local retailers including Wal-Mart.