The Hindu Business Line : ObjectFrontier Software signs deal with Technosat

Chennai March 25 ObjectFrontier Software Pvt Ltd (OFS), a provider of information technology services, has signed a $20 million (Rs 90 crore) deal with Technosat, a satellite equipment provider that manufactures set-top boxes (STBs).

OFS would add value on the chips imported from Japan and that goes into the STBs, said Mr Irshad M. Contractor, Managing Director, Technosat, a Dubai-based company.

OFS will work on a royalty-based model and it will be assured a sum of $3 million (Rs 13 crore) in the first year and $20 million (Rs 90 crore) in the next five years through royalty to be paid on each satellite box that will be sold, says a company press release.

Mr James Walter, CEO, OFS, said the company would report revenues of around $7 million (Rs 30 crore) for fiscal ending March 2007 and around $15 million (Rs 67 crore) for next fiscal.

Technosat, through a tie-up with Irdeto, a Dutch company providing CAS (Conditional Access Systems), has sold around two lakh STBs to clients like Hathway and Seven Stars (both are multiple system operators) in India. With India having around 72 million cable connections, there is a potential to sell around three million STBs in the first year, said Mr Contractor.

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