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ARION Technologies (Pty) LtdPresentation to Portfolio Committee on Communications – State of Readiness to manufacture Set Top Boxes 21 September 2011
Arion Technologies (Pty) Ltd
Technology / IP Partner
Manufacturing Capability
Skills Transfer and Job Creation
Distribution Channels
SMME installation partners
Summary
Content
Company Overview
Arion Technologies (Pty) Ltd (”Arion SA”) was created out of the necessity to ensure support and development of the South African and African digital broadcasting migration initiatives
Arion SA enjoys an exclusive strategic partnership with Arion Technology Inc., of Korea (“Arion Korea”) a leading digital broadcasting receiver devices manufacturer
Arion SA operates independently of its Korean partner and has been established to create a real opportunity for meaningful competition in the supply of digital broadcasting receiver devices to the South Africa and African markets
Company Overview
Arion SA’s Board and Executive team is made up of a majority of Black South Africans
Arion SA’s Board and Executive team have extensive experience in broadcasting digitisation specifically and ICT management and operations generally
Arion SA possesses its own IP that it has acquired from Arion Korea
Arion SA is dedicated to job creation and skills transfer
Manufacturing Capability
Arion SA will initially assemble STBs with a local electronics manufacturing company and over time manufacture its own STBs
Arion SA will have the ability to manufacture and support at least 200 000 STBs per month and gradually increase this capacity
Manufacturing Capability
The number of STBs we can manufacture per month is scaleable and depends on our allocation
The greater Arion SA’s allocation, the more jobs we will be able to create and the more skills we’ll be able to transfer
Skills transfer & Job creation
We have a detailed skills transfer and job creation programme and schedule
Our skills transfer and job creation programme includes developing over 320 South Africans over three years
More jobs will be created over time as Arion SA becomes a more established digital broadcasting receiver manufacturer
South Africans will be trained in the areas of S/W and H/W design, converged information communications technologies development, QC, R&D and management
Skills transfer and Job Creation
HQ: Arion SA
Western Cape
Eastern Cape
Durban
HQ: Arion SA
Western Cape
Eastern Cape
Durban•Training by Arion SA•Twice per year in Arion SA HQ•Once per year in each region
Distribution Channels
Arion SA will distribute STBs through government stipulated channels for the subsidised market
We will also distribute STBs through established private partners in the retail market
Arion SA will work with SMME distribution partners in both urban and rural communities
SMME Partners
Arion SA will also develop SMME installation partners as part of its skills transfer and job creation programme
Our installation partners will also provide after sales support
Technology Partner Overview
Established in 1999 Set-top box manufacturer 70 employees in HQ 376 worldwide (60% R&D engineers) Listed in KOSDAQ in 2005 Worldwide Presence
- Head office: Anyang city, South Korea - Branch Offices: South Africa, Argentina, India and Germany - Factories in Korea and China
History
2002 Licensed Irdeto2000 Established A/V R&D center1999 Established Arion Technology Inc.
2005 Listed on KOSDAQ Licensed Nagravision Licensed Cryptoworks2004 Obtained TL-9000 certificate
2006 Contracted with DishTV, WWIL(India) Cablevision etc.
Obtained a patent for multi-room PVR
2007 Opened a subsidiary company in Johannesburg, South Africa (Arion SA Ltd)
Opened a sales branch in Buenos Aires, Argentina Licensed OpenTV
2008 Contracted with Videocon, India
2009 Achieved Cable HD Ready licenseAchieved Riks TV licenseContracted with TelefonicaObtained FCC waiver on cable DTA box for US market
2010 Contracted with Claro(Telemex) in LATAM Achieved ORF HD license by Irdeto/ORS
2011
1999
2011 South Africa DTT STB Allocation ??
Manufacturing
Production Capacity - 300K per month as of Sep, 2011 - Will be expanded up to 400K per month in the near future
Number of Employees - Currently total of 150 employees are working for the factory,
Quality control Policy - By conducting process controls under ISO 9001 and TL-9000H standards (of ARION Technology Inc.)
Production & Quality Control procedure - Highly skilled employees & efficient management, leads to quality manufacturing
• TL9000 certified to Arion Technology in 2004
• ISO9001 certified to DongGuan Arion (Joint Venture Factory) in
2006
Awards & Certificates
• Accredited by major European magazines for Excellence in PVR STB design and
manufacturing
• Patented for Multi-Room PVR
• TL-9000H certified to Arion Technology in 2004
• ISO-9001 certified to DongGuan Arion (Joint Venture Factory) in 2006
• World-widely recognized distinctive product Design
Major References
• Providing DVB-S/S2 Conax SD, HD PVR STB• Asia No.1 Operator with 12M subs• Providing DVB-S/S2 Conax SD, HD PVR STB• Asia No.1 Operator with 12M subs• Providing DVB-S/S2 Conax SD, HD PVR STB• No.1 Satellite & Telco company in Latin America• Providing DVB-S/S2 Conax SD, HD PVR STB• No.1 Satellite & Telco company in Latin America
• No.1 Cable Conax operator in Latin America• No.1 Cable Conax operator in Latin America
• 3rd largest Cable operator in Russia with 1.2M TV subscribers• Providing DVB-C Conax HD STB• 3rd largest Cable operator in Russia with 1.2M TV subscribers• Providing DVB-C Conax HD STB• Providing DVB-S2 Irdeto HD• Largest DTH Operator in Austria• Providing DVB-S2 Irdeto HD• Largest DTH Operator in Austria
Customer Country CAS Security Subs Products Remarks
Dish TV India CONAX Level-4 12M DVB-S/S2 SD, HD PVR Asia No.1 PayTV operator
Claro/Telmex Latin America CONAX Level-4 5M
DVB-S SD DVB-S2 HD, Twin Tuner, PVR ISDB-T Combo
LATAM No.1 Telco Group
Cablevision Latin America CONAX Level-4 3M DVB-C /T SD/HD Largest cable OP in Argentina
ER-Telecom Russia CONAX Level-4 1.2M DVB-C HD/Hybrid 3rd largest cable & ISP in Russia
ORF/SkyLink Austria, Czech Rep. IRDETO Secure Silicon 2.5M DVB-S2 HD USB PVR Largest DTH OP in Austria/Czech
Partners
Main Chipset
CAS & Middleware & BrowserMembership
Licenses
Sales and Strategic Value
Arion Korea, through Arion SA, has Arion Korea, through Arion SA, has supplied PVRs and FTA (Free-to-Air) supplied PVRs and FTA (Free-to-Air) STBs to companies, such as Sentech and STBs to companies, such as Sentech and other regional broadcastersother regional broadcasters
Arion Korea also provides technical Arion Korea also provides technical consulting on digital migrationconsulting on digital migration
In supplying Arion SA with manufacturing In supplying Arion SA with manufacturing capabilities Arion Korea will also capabilities Arion Korea will also
empower empower Arion SA through skills transfer Arion SA through skills transfer and job and job creation creation
Arion SA’ relationship with Arion Korea will Arion SA’ relationship with Arion Korea will
empower Arion SA to manufacture and empower Arion SA to manufacture and
maintain STBs and help government meet its maintain STBs and help government meet its
ICT job creation ambitionsICT job creation ambitions
Our strategic relationship will also enable Our strategic relationship will also enable
Arion SA to manage the customer interfaceArion SA to manage the customer interface
Eventually through the strategic partnership, Eventually through the strategic partnership,
Arion SA will establish its own local R&DArion SA will establish its own local R&D
capacity and capabilitycapacity and capability
Strategic Value
Product Details
T2, Twin Tuner USB PVRDVB-T2, High Definition - Fully compliant to MPEG-4&H.264 Standard - PVR through USB2.0 - OTA over the Ethernet
HD Twin Tuner PVRDVB-S2 (DVB-C/T2) HD - Twin Tuners - Conax CAS 7 Chipset Pairing - Built-in 2.5” HDD - Fully compliant to MPEG-4&H.264 Standard
Product Details
HD USB PVRDVB-S2, High Definition - Irdeto Secure Silicon - PVR through USB2.0 - Fully compliant to MPEG-4&H.264 Standard - 1 DVB Common Interface
ISDB-T/DVB-S2 ComboDVB-S2 / ISDB-T, High Definition - Fully compliant to MPEG-4&H.264 Standard - DVB-S2 / ISDB-T Combo Tuners - Conax CAS 7 Chipset Pairing
Summary
We have emphasised our commitment to transferring skills and creating jobs throughout SA
We will transfer skills and create jobs and in high-end areas of the digital broadcasting industry including R&D and management
Arion SA will be a leading digital media receiver manufacture and solutions provider in SA and in Africa thus strengthening SA’s economic ties with the continent
Contact Details
website address: www.arion.co.kr
e:mail address: [email protected]
telephone number: +27 (0) 11 025 1340
fax number: +27 (0) 86 724 8508