State-owned ChungHwa Telecom in Taiwan has selected the Widevine Cypher system to provide conditional access and digital rights management for the expansion of its IPTV deployment.

ChungHwa will purchase an additional 500,000 downloadable virtual smart cards from Widevine Technologies in Seattle, which claims to be the most widely deployed provider of content security for the video over internet protocol market.

Under the terms of the agreement, Widevine will receive an initial payment, plus additional per-subscriber fees as the install base increases.

“Widevine is extremely pleased to support ChungHwa’s rapid expansion in the digital video market,” said Brian Baker, the president and chief executive of Widevine. “This is a company that has been strategic and methodical in its video deployment right from the beginning. It is no surprise that ChungHwa now boasts one of the largest such deployments in the world.”

The Taiwanese “Multimedia on Demand” project, which combines linear broadcast channels with video-on-demand services, will use set-top boxes from four manufacturers, including Pace, with middleware from Orca and Alcatel.