In return, Star will receive stakes in 29 cable operators owned by Koos -- one of Taiwan's largest firms. The investment will fund the upgrade of Koos's networks from analogue to digital. The upgraded networks will begin to roll out interactive TV and other advance digital services from 2002.
Star's pay-TV channels will be given carriage on the networks once the upgrade is completed.
The transaction supersedes an earlier deal Koos had agreed with Gigamedia to jointly invest $100m (£69.74m) to give Taiwan's cable subscribers internet access through their TVs.