Wave Systems Corp. Teams with ZakSat to Offer Satellite Delivery of Electronic Content
WaveMeters to be Incorporated in ZakSat Hardware Beginning Q4
LEE, Mass. and SHUWAIKH, Kuwait--(BUSINESS WIRE)--Sept. 10, 1997-- Wave Systems Corp. (Nasdaq:WAVX; wave.com) and Kuwait-based ZakSat General Trading Co. WLL (zak-sat.net), the leading provider of cable TV services in the Middle East and a developer of an advanced MPEG2 DVB-compliant, satellite-delivered Internet service to be known as ZakNet, announced today that they have signed a memorandum of understanding (MOU) relating to the incorporation of Wave's proprietary WaveMeter(R) technology in ZakNet(TM) PC cards and television set-top box product in development.
By combining ZakSat's hardware components and satellite distribution with Wave's proprietary metering and transaction processing, the companies are forming an infrastructure for a broadband ``push'' distribution service for electronic content such as software, games and data.
The ZakSat-Wave service is planned to reach consumers in 63 countries in the Middle East and Asia, including Russia, Japan, India and Australia. The service, which will enable consumers to selectively purchase and/or rent broadcast content, will be marketed under the DataTrain(SM) brand.
The MOU calls for ZakSat to purchase a minimum of 25,000 WaveMeters for delivery in the fourth quarter of 1997. ZakSat will provide Wave with access to a minimum of one Mbit/second of satellite bandwidth for the distribution of content on its ZakNet platform. Consumers who have ZakSat PC cards or set-top boxes outfitted with the WaveMeter will be able to subscribe to and receive encrypted and purchasable (or ``WaveEnabled'') content delivered by DataTrain and make purchases at their convenience.
Under the contemplated agreement, ZakSat would share in transaction royalties with Wave for content aggregated and signed by ZakSat, as well as ongoing revenues derived from all content sales. The companies will market DataTrain services cooperatively.
Over the past two years, Wave has been developing relationships with leading content providers to distribute their electronic products via DataTrain, as well as an anticipated CD-ROM bundling program. Wave aims to formally launch both distribution services in 1998.
About DataTrain
The planned ZakSat-Wave relationship represents a significant step in the realization of Waves DataTrain(SM) concept. DataTrain -- inspired by high-speed bullet trains -- is the service name given to Wave's vision for the creation of a worldwide team of leading satellite, cable, telephone, television and content partners to deliver a continuous feed of encrypted, purchasable digital data and software.
Content, which will include sports, email, news, weather, games and other electronic information, will appear as soon as it is broadcast, saving subscribers hours of waiting for downloads. Wave is providing the transaction processing and metering infrastructure and interfaces to facilitate electronic commerce via DataTrain. In addition to satellite distribution, DataTrain will be developed for other broadcast media, including datacast, intercast and cable.
ZakSat's satellite distribution range currently includes most or all portions of the Middle East, Africa, Central Asia, the Far East and South Pacific. ZakSat is the first company in the world to commercially provide MPEG2 digital video broadcast (DVB) compliant satellite-delivered Internet services, currently offering Internet access at about 200 Kbps.
``Wave's WaveMeter technology converts the dream of satellite distribution of purchasable electronic content into a reality,'' said Mario Pino, chief operating officer of ZakSat. ``It is the most comprehensive and targeted solution to industry-wide distribution challenges we have found, and we are very impressed by the breadth of high-profile content that is eager to support this venture.''
``Our relationship with ZakSat immediately positions Wave as a truly global provider of e-commerce and distribution services,'' said Steven Sprague, president of Wave. ``Through DataTrain services provided by Wave and ZakSat, content providers will be able to distribute their games, software, news and other electronic information instantaneously via satellite. Eventually, with a growing base of partners, we will be in the position to offer content providers potentially unlimited distribution capabilities, without geographic or technological barriers.''
Note to Editors: Since 1994, Zaid Al Kazemi Sons (ZAK) has been involved in the satellite TV business. In January 1995, Mario J.
Pino and a new management team was hired to expand the Zak cable and satellite division and to focus its efforts on distribution of pay TV services where the majority of potential subscribers were to be found: in residential buildings and compounds. ZakSat is 50%-owned by ZAK and 50%-owned by Kuwait Investments and Projects Company (KIPCO). KIPCO is the owner of SHOWTIME, one of ZakSat's pay TV services.
The co-ownership of ZakSat by one of its programming providers is an indicator of the strength that ZakSat has to develop its business in the region. Today, ZakSat operates its Global Direct TV systems in the United Arab Emirates, Kuwait and Seychelles. In December 1996, ZakSat started development of a Fast-Access Satellite-Delivered Internet service to be called ``ZakNet.'' The most advanced MPEG 2 DVB standard-based technology was selected and satellite capacity was secured on the AsiaSat 2 satellite.
Two types of Internet delivery were planned for end users. One was a satellite/phone hybrid service that allows users to access the Internet at download speeds of ranging from 200 to 800 kbps. This service allows users to ``surf the Net'' as they always have using a traditional (participating with ZakNet) Internet service provider (ISP) to provide the request connectivity (via phone line) to the Internet while downloads are re-routed via a satellite uplink. This service was filed tested all over Asia and will launch commercially on September 10, 1997.
The other method of Internet delivery planned was via a direct and continuous broadcast of popular web sites. This ``push'' type service will be capable of speeds of up to 8 Mbps due top the fact that no return confirmation via phone line will be required. Broadcast Internet service will launch before the end of 1997. ZakSat is on a path towards being the provider of a global platform that will deliver on all of the promises of the Information Superhighway.
The company believes that the Internet will be the centerpiece of a global evolution towards all people becoming more aware of one another and therefore hopefully understanding one another better. |
