As the company begins its drive to digitize all cable TV units by 2015, Cisco Systems is looking to buy set-top boxes by a Chinese maker. The move will create definite market opportunities for Cisco in the Chinese market, which has been pegged as currently one of fastest growing economies.

In a deal which will cost Cisco nearly US$44.5 Million, the company will be purchasing set-top boxes from Hong-Kong based DVN Holdings, a company which has widespread operations in mainland China. A payment of $17.5 Million will be made upfront, and the rest will be settled as and when the sales targets are met.

With the move, Cisco will break into the largest cable market in the world. Figures have reported that there are currently 160 million cable subscribers in China, and the sale of set-top boxes is growing by leaps and bounds throughout the country. The figure is expected to go up manifolds and hit as much as 200 million in the coming five years.

The development is being viewed much positive by analysts and economists in home countries of both Cisco and DVN. "Cisco and DVN have similar cultures that emphasize video innovation and a shared vision to enable multimedia connected homes across China," said Ken Klaer, vice president and general manager of Cisco's international cable business unit.