Videocon To Make Net TVs, Plans To Be An ISP
Videocon Web site: videoconinternational.com
By Uday Lal Pai
InternetNews India Correspondent
[July 12, 1999--MUMBAI] Videocon International, one of India's large Consumer Electronics and Home Appliances Company, is all set to start manufacturing set-top-boxes (STB) in the country. It also plans to become a national (A-grade) Internet Service Provider (ISP) in India.
A combination of STB manufacturer and ISP would put Videocon in a unique position - the first Indian company to combine consumer electronics, information technology and communication.
Its competitor, electronic giant BPL, holds an ISP license and is planning to become a major player in the convergence sector, but it has not yet revealed its complete plans to the public.
According to Naveen Mandhana, CEO of Videocon's India OA Systems (previously called Videocon Infochannel), the company plans to manufacture about 25,000 STBs per annum to begin with and increase the output once the market expands. "Currently nobody manufactures set-top boxes in India. And for us it will be a good synergy with our existing range of televisions," he said.
Videocon plans to launch its set-top boxes, priced at US$375 each, sometime next month, according to sources. However, the company was not willing to divulge the name of the technology provider. Apparently, the technology for Videocons Net TV offering was acquired from a US-based laboratory. Unconfirmed reports say that Sony of Japan is the only other company to have acquired this technology from the same lab.
Though a decision to apply for ISP license has not finalized yet, the company is actively perusing for the foray to Internet market, states Videocon International president Pradeep Kumar Dhoot. He says the STB will come equipped with a wireless keyboard and 8 MB memory that will allow users to download small amounts of data.
The company will use its existing television distribution channel to market its STBs. It also plans to enter into an OEM agreement with large cable companies which start offering Internet services.
According to analysts, the market for STBs in India will grow exponentially when Internet access becomes easier in the secondary level cities, which will mainly be targeted by the Cable TV operators.
Apart from STBs, Videocon is planning to launch tv.comp - a combination of television, computer with multimedia facility - with 21 inch television. The earlier versions of tv.comp launched earlier this year came with 25 inch TV and a price tag of around US$950. According to Dhoot, the tv.comp would co-exist with STBs, where tv.comp would target consumers seeking higher configurations.
However, experts point out that the surfing experience on a television will not be that satisfying because of the poor resolution of a television when compared to that of a monitor.
Videocon has embarked on a massive globalization program, with the objective of building a US$5 billion company by the year 2007. The STB project forms part of the plan, says Dhoot. |
