The Hindu Business Line : Goldstone Tech makes IPTV foray

Goldstone Technologies Ltd, a Hyderabad-based technology solutions provider, has announced its plans to launch Internet Protocol TV (IPTV) targeting the non-resident Indian community.

The company plans to invest Rs 25-crore in this venture and has partnered with a Singapore firm SPL Innotech Pte Ltd.

Addressing a press conference here today the Director of Goldstone Technologies, Mr Travis Caddel, said: "Though this technology has the potential to reach out to a whopping 1.85-crore NRI community spread across the globe, we are specially targeting about 3.5 million Telugu NRI community in the Americas."

"All that a potential user needs to do is subscribe to our service on a monthly payment basis and opt for a set-top box that could be either outright purchase or can be taken on monthly payment option. A subscriber who already has broadband connection would be able to access movies of choice," he explained.

Data centre in Singapore

"We are in the process of creating a data centre in Singapore and have created a library of over 2,500 movies. Based on what a subscriber wants, we would then be able to offer services on demand. The entire technology for the IPTV foray is being provided by SPL Innotech," Mr Cadell said.

The Rs 25-crore investment into this project is being met through a combination of internal accruals and offer of a preferential issue of shares.

The company board, that met here today, has approved the issue of 19 lakh equity shares to Goldstone Exports Ltd, the core promoter of the company, and 54 lakh warrants (convertible into equity shares) to Summit Communications and Horizon television on a preferential basis.

Giving details of the company finances, an official of Goldstone said the company recorded total revenues of Rs 41.6 crore and a net profit of Rs 1.59 crore. For the fiscal ended March 31, 2006, the company recorded consolidated revenues of Rs 75 crore and a net profit of Rs 6 crore.

"We expect the IPTV foray to add to both topline and bottomline. While we expect revenues of Rs 150 crore, where Rs 50 crore could potentially come from IPTV and the rest from software and BPO," the official said.