Surrey-based electronics maker Lidcom has said it has started manufacturing the entry-level set-top boxes in Wales, and that it understands it will retail for between £60 and £70.
People who want to access Freeview are currently paying around £100 for a basic box. More than 600,000 boxes have already been sold since the service launched in October last year.
The new cheaper model is good news for Freeview, as it will encourage even more people to access the service. Freeview is in the process of hunting for a PR agency to help it boost uptake.
Lidcom's boxes are set to be branded and sold by one of the UK's major electronic retailers, although CEO Roger Guerand would not disclose which one.
"We are not branding our designs as they sell under different brands. We are not a household name and do not intend to be one. Thus we are very flexible and adapt our design to our customers' needs," he said.
The new box measures 19x13x6cm, and allows users to receive all the free-to-air channels, including all the BBC digital television channels, like youth channel BBC Three and arts channel BBC Four, ITV2 and digital radio channels.
Lidcom also plans to launch a more advanced set-top box that will allow users to record programmes and have interactive elements. It will launch in January 2004, and will be adapted for the French, Italian and Spanish markets.
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