Convergence Plus
Monday, December 18, 2017
Electronic security firm Zicom bets big on IoT, eyes revenue of ₹200 cr by 2020

Electronic security firm Zicom bets big on IoT, eyes revenue of ₹200 cr by 2020Electronic security systems player Zicom on Sunday said it is looking at significant growth in the Internet of Things (IoT) and SaaS market place to clock a service revenue of about ₹200 crore by 2020.

“Zicom has moved from being a pure play, physical security company into an IoT and SaaS IT Services business model. With the exponential internet penetration growing in the country, Zicom is all set to take full advantage to become the market leader within the Internet of Things (IoT) and SaaS place,” Pramoud Rao, Managing Director, Zicom Electronic Security System, told PTI here.

“We have notched up a revenue of around ₹50 crore in fiscal 2017 and expect to reach service revenue of ₹175 crore to ₹200 crore by 2020,” he said. “We are now looking at new avenues to grow the business by adopting newer technologies, like artificial intelligence. We are also investing in deep learning in the domain of access control as well as towards introducing voice-based security services under the Amazon, Alexa platform,” Rao said.

IoT growth prospects
The IoT market continues to see strong growth. The worldwide IoT market spend will grow from $625.2 billion in 2015 to $1.29 trillion in 2020, with a compound annual growth rate (CAGR) of 15.6 per cent, he said. The installed base of IoT end points will grow from $12.1 billion at the end of 2015 to more than $30 billion by 2020. The Indian security industry is in a state of big transition due to SaaS, IoT, smart city and safe city trends, he added. In 2013, the company started taking steps towards gaining leadership in the IoT space. It has set up the country’s largest command and control centre with service network in over 1,100 cities.

The approach was to provide business intelligence using safety and security, club it with loss prevention features, offering information on the mobile devises, Rao said. The Indian security market in 2017, according to Gartner, is growing at the rate of 10.6 per cent, from $1.24 billion and the number of connected devices in India is estimated to be around $200 million. This is expected to increase $3 billion in 2020.

Hence, it augurs well for the security market in India and players such as Zicom will have major role to play in the coming years, he said.

Reactive to proactive
Since the business model offers considerable cost reduction, without the customer having to invest or manage the equipment, Zicom’s pioneering concept met up with huge success since the USP offered by the company was a huge paradigm shift within the security industry, namely CCTVs systems always recorded a crime, Zicom prevented the crime, from reactive to being proactive, Rao said. In the case of ATM e-surveillance, the cost of managing an ATM was averaging between ₹30,000-40,000 for the bank. By using the e-surveillance technology, the cost was reduced to a mere ₹4,000. This saved the bank almost 90 per cent on the safety and security cost, he added. (Source: The Hindu BusinessLine)

Online players outnumber TV broadcasters for IPL media rights

Online players outnumber TV broadcasters for IPL media rightsDigital media platforms seem to outnumber traditional broadcasters when it comes to bidding for the rights of the Indian Premier League. A total of 24 players have picked up the tender documents and are already in the fray for the auction to the media rights, which is scheduled to open on September 4. The Board of Control for Cricket in India will be conducting the bidding on Monday. Industry observers point that a slew of digital players in the bidding process signifies the growing importance of online as a category.

Companies will be bidding for two major categories -- broadcast and digital (Internet and mobile) rights. Besides linear broadcasters such as Star India and Sony Pictures Network, new entrants in the digital category include Reliance Jio Digital, Amazon Seller Service, Yupp TV, Airtel, Twitter, ESPN Digital Media, Times Internet, Facebook, Yahoo, BAMTech and DAZN/Perform group, among others.
Several company spokespersons BusinessLine spoke with indicated that they would be bidding for the media rights.

“Viewers want anytime, anywhere convenience of watching. With data packages getting cheaper, it is only imperative that this viewership is going to grow in coming years and live events are a sure short bet,” digital broadcasters point. According to experts, BCCI could make windfall gains of Rs. 13,000-Rs 15,000 crore.

According to Duff & Phelps, a premier global valuation and corporate finance advisor, the overall value of IPL as a business has increased to $5.3 billion from $4.2 billion last year. Duff & Phelps, which brought out the report IPL: The Decade Edition: A Concise Report on Brand Values in the Indian Premier League, also had said the new broadcasting rights auction will be a keenly watched development.

“The BCCI is clearly set for a huge windfall. We could be looking at a television broadcasting deal of record proportions. This deal may follow the precedent set by some of the big-ticket broadcasting deals across the world,” Santosh N, MD-Valuation Advisory Services, Duff & Phelps said in a statement.

Duff and Phelps also noted that digital content is becoming a very strong medium of social media engagement for sports viewers.
BCCI auctions were to be held on August 28. However, it was pushed to September 4 as a case regarding electronic auctions was pending in the Supreme Court.

Currently, Sony Pictures Network has the broadcast rights until this year’s IPL edition. It had paid Rs. 8,200 crore for a 10-year deal in 2008. The digital rights of IPL wrests with Star India. BCCI had said the digital rights for the last three years had fetched just over Rs. 300 crore.

All the rights will be for a period of five years from 2018-2022. Vinod Rai, the Chairman of the Committee of Administrators, was appointed by the Supreme Court of India in January to supervise the BCCI to ensure that it worked according to the guidelines of the Lodha recommendation.


  • Auction postponed to Sep 4 from Aug 28
  • 24 bidders in fray including host of digital players
  • TV broadcast, mobile and digital rights are major categories for which companies are set to bid
  • New rights will be for a five-year period 2018-2022
    (Source : The Hindu BusinessLine)
Smart Health: Oracle

Smart Health: Oracle“As India’s masses experience the benefits of technology in every aspect of their lives, the demand for access to smarter technologies in healthcare is more than ever before. Giving citizens access to smart healthcare facilities is a key priority for the Government and it has emerged as an important aspect of any smart city plan. For smart technologies to take off in healthcare, there is a need to eliminate duplicate patient identities and have a single point of reference that would include information about the patient, his/her healthcare needs, doctor and other healthcare entities.

This single point of reference enables real-time availability of unified, trusted data for strategic healthcare initiatives including: population health management, care coordination, patient satisfaction and healthcare analytics. To see a LIVE Demo of Oracle’s Smart Health solution in addition to solutions like Smart Parking, Smart Water, Smart Mobility, Safe City, Smart Waste Management and many more, visit Oracle OpenWorld in Pragati Maidan on May 09 & 10. Register here. Click on the enclosed case study to understand how Health Sciences South Carolina has achieved interoperability across multiple facilities.

Health Sciences South Carolina Improves Community-Wide Care Quality and Research”
(Source: Convergence Plus)

I&B Ministry to look at ways to boost community radios

I&B Ministry to look at ways to boost community radiosEarlier this week, I&B Minister Venkaiah Naidu chaired the meeting of the consultative committee of the Ministry to discuss the roadmap for developing community radio stations.
In a bid to promote community radio stations in the country, the Ministry of Information & Broadcasting will analyse the business models of successful community radio stations operating at present. Sources said this will be done as part of the Ministry’s efforts to facilitate development of sustainable and robust business models of community radio stations and propagate best practices, as part of the hand-holding process for aspiring applicants.

It will also look at ways to further simplify, fast-track and streamline the process of approval for licenses needed to run community radio stations, sources added.
Community radio stations are set up by educational institutions, universities as well as non-government organisations (NGOs) and are largely focused on development issues concerning the communities in regional languages and dialect.
At present, 202 community radio stations are operational across the country.
Earlier this week, I&B Minister Venkaiah Naidu chaired the meeting of the consultative committee of the Ministry to discuss the roadmap for developing community radio stations.
He pointed out that the Ministry had recently enhanced the subsidy amount for setting up community radio stations from 50 per cent to 90 per cent in the north-eastern States and 75 per cent in other States, subject to maximum limit of ₹7.5 lakh.
In January, the Ministry gave permission to community radio stations to broadcast news and current affairs sourced from All India Radio, besides introducing other amendments to ease the way for setting up such stations.
The Indian Institute of Mass Communication will also offer consultancy and training services on running community radio stations, as it is setting up an empowerment and resource centre at its campus.
So far, the Ministry has organised 79 workshops to create awareness among aspiring applicants about issues relating to setting up, operation and maintenance of community radio stations.
The Committee has also recommended further enhancing awareness and streamlining the clearance process for setting up community radio stations. (Source: The Hindu Businessline)

Flipkart in consolidation mode for Ekart, shuts down months-old services

Flipkart in consolidation mode for Ekart, shuts down months-old servicesOnline marketplace Flipkart is looking at consolidating business of its in-house supply chain arm, Ekart Logistics. The company has suspended the customer-to-customer courier service within months of its launch. It has also pulled the plug on hyperlocal delivery services being piloted across Bengaluru since March last year.

"Beginning February 5, Ekart no longer operates its customer-to-customer courier service started in May 2016, that gave people the option of having documents and parcels packed by Ekart's delivery boys and shipped to end-addresses," the company said in response to ET's emailed queries. The move is aimed at "consolidating the service offerings of Ekart, to sharpen its focus on its core business model", the company said.

Ekart processes 30,000-40,000 orders a day for third-party businesses excluding the volumes generated by Flipkart and Flipkart-owned fashion portal Myntra.

It will continue its core ecommerce offerings, including third-party logistics services to ecommerce players such as Paytm and ShopClues. It will also continue to provide warehousing and fulfilment facilities to larger retail clients such as Madura Garments.
The changes come after Ekart head Saikiran Krishnamurthy left the company last month and Nitin Seth took over the role in addition to his responsibilities as the chief operating officer. The reshuffle in top management has been linked to Tiger Global's Kalyan Krishnamurthy taking over as CEO of the company to streamline expenses.

In an interview to ET before his exit on January 5, Saikiran Krishnamurthy had indicated that over the next two years half of Ekart's business would come from servicing third-party players, who account for only 10% of the business handled by the company. The Ekart brand was acquired by Flipkart under a company called Instakart Services in 2015 from WS retail, the primary seller on the platform. Since then, it has been the flagship vertical for cofounder Binny Bansal, who initiated the process of bringing external business for Ekart to monetise excess capacities and create an independent logistics vertical. (Source: Economic Times)

Dish TV: Merger gains outweigh integration challenges

Dish TVWhile the Dish TV stock is up 7% since the announcement of its merger with Videocon d2h (d2h), there are no near-term gains for Dish TV shareholders. Any major re-rating of the stock, say analysts, would depend on the integration and unlocking of synergies between the two companies, and this will take time as the deal is expected to fructify only in the second half of 2017.

Also, there would not be any immediate gains because the deal has not come cheap. Given the share-swap ratio, which will entail offering 85.8 million new shares to d2h shareholders, the deal ascribes an equity value for d2h at Rs 7,500 crore and an enterprise value (EV) of Rs 9,042 crore. Given its market capitalisation (m-cap) of Rs 5,560 crore (as on November 10), the shareholders of Nasdaq-listed d2h have got a 35% premium.

Phillip Capital’s Manoj Behera believes that prima facie, the deal looks expensive, given the 7.4 times enterprise value-Ebitda ratio for d2h, which is in line with Dish TV’s current trading multiple. “d2h was barely able to service its debts and was burdened with high cost debt of Rs 1,540 crore with an average cost of debt at 16-17%,” he says. For FY16, d2h had an Ebitda of Rs 800 crore, while the cost side included a capex of Rs 700 crore and an interest expense of Rs 300 crore. Emkay analysts, however, say the deal is fairly valued considering the high growth rate of d2h and potential savings for the merged entity.

The deal valuation will look justified only if the merged entity can extract synergies, which are pegged at Rs 500-600 crore in FY19 as it then becomes value-accretive for Dish TV. The biggest saving is expected to come from lower content costs. The reason for this is the birth of a powerhouse in terms of subscriber base. The merged entity would have a combined subscriber base of 27.6 million with 10% being HD subscribers. This will translate into a market share of 40% in the DTH (direct-to-home) segment, 19% of the pay TV market (cable + DTH) and 16% of all TV households.

This subscriber base will give Dish TV the power to negotiate with broadcasters for lower content costs. d2h’s content cost per subscriber at Rs 72 is 48% higher than that for Dish TV. On this cost head alone, analysts believe volume-based discounts should help the merged entity get savings of Rs 150 crore per annum. The other savings will be on transponder costs as both companies pay about Rs 150-170 crore each annually and this can come down by about 40%.

The higher subscriber base will also help the company increase ancillary revenues from charging a higher carriage fee as well as advertising revenues. Both companies generate Rs 130-150 crore each from these two sources annually and this could double for the merged entity. Given revenues of Rs 3,000 crore, this constitutes just five % of their individual turnover but could become an important source of incremental revenues and margins. Further, a common administrative infrastructure should help save 10-15 % on overall expenditure.

All these should reflect in the operating profit margins to improve by about 300 basis points over the next couple of years. While margins were at 33 % for both in the first half of FY17, this should move towards 36-37% in FY19. The company for now intends to keep its multiple brand strategy (Dish, Zing, d2h) going given the strength of the brands, customer base and segments it is targeting. The combined distribution reach in urban and rural areas will also help it expand its presence.(Source:Business Standard)

Viacom18 looks to expand regional channels portfolio

Viacom18 looks to expand regional channels portfolioMedia firm Viacom18 is looking to expand its regional channels portfolio, especially in southern languages, a top company official said. “We have got to be present in more regions than what we are present now. We will keep evaluating other languages and regions, particularly in South India,” Viacom18 Chief Executive Officer Sudhanshu Vats told PTI. Viacom18 operates various regional entertainment channels like Colors Marathi, Colors Kannada, Colors Bangla, Colors Oriya and Colors Gujarati, which were earlier under the ETV umbrella. Last year, when the company had re-branded the five ETV channels under the Colors brand, Vats had said, “59 per cent of the country converses in regional languages.

Today, regional TV channels command the second largest viewership in India.” According to a recent FICCI-KPMG report, regional general entertainment channels had a viewership of 29.6 per cent in 2015. Among regional markets, Tamil channels occupy the biggest share — 25.7 per cent — in viewership and the Telugu market is the second largest with 24.4 per cent viewership share. Kannada enjoys a viewership share of 11.6 per cent, while that of Malayalam is 9.2 per cent.

The company recently launched its ad-led video on demand (VOD) platform Voot, and in the next 12-24 months, it will be evaluating both freemium and subscription-led models. “We are working on the payment gateways. As we go into subscription model we will need to give more value adds. “The product that we have, this might be a more basic feature product, we will need to add more features to it, so that we are able to command some amount of premium or value to the consumer. In India, my sense is that both models (free and subscription-led) will hold,” he said.

Voot has a large repository of kids’ characters in the Indian OTT (over-the-top) space with characters like — Dora, Spongebob, Motu Patlu, Chhota Bheem and Pokemon, and going ahead, the Voot Kids could be subscription-led. “The advertising in India for kids is a challenge. As the payment ecosystem develops in India, one of the candidates for going into subscription VOD could be actually our Voot kids. There will be some amount of advertising which we will be able to get, so while it’s a challenge, there is some advertising in this space as well,” he said. “We have got 7,000 videos and 80 characters on Voot kids and have six out of top 10 (characters). Our kids piece (on Voot) is very strong,” he added. Viacom18 announced its plans to foray in the Hindi movie genre and Vats said Rishtey Cineplex will be launched in a month’s time. (Source: The Hindu Business Line)

AIR launches 24 hour audio broadcast channel for classical music

AIR launches 24 hour audio broadcast channel for classical musicAll India Radio has launched a non-conventional audio broadcast channel through Internet and 'free dish' with easy accessibility to it for connoisseurs of art, specially classicial music- both Carnatic and Hindustani. The Channel, known as 'RAAGAM', is in public domain round the clock with Mobile App i.e. 'All India Radio Live' available in Android, IOS and Windows from 6 PM from January 26. The Channel, known as 'RAAGAM', is in public domain round the clock with Mobile App i.e. 'All India Radio Live' available in Android, IOS and Windows from 6 PM from January 26.

The Channel will be beamed through one of Digital Terrestrial Channels -DTT of Doordarshan, which means thereby it will also be Digital Terrestrial Channel with an aerial radius of 70 KMs in Bengaluru, public service broadcaster Prasar Bharati said in a release here. " RAAGAM" will have specific time bands for archival assets, senior living legends, budding and upcoming artists, auditioned and approved by AIR, it said. (Source: Economic Times)

India joins nations seeking to free idle television broadcast airwaves for mobile services

India joins nations seeking to free idle television broadcast airwaves for mobile servicesIndia has joined a grouping of nations that seeks to free up idle television broadcast airwaves, typically in the 470-698 MHz range, for mobile broadband services. The move, initiated at the International Telecom Union's ongoing World Radio Conference in Geneva, is aimed at tapping fresh pools of quality data airwaves for 3G and 4G services, given the excellent propagation levels of 470-698 Mhz spectrum, making it ideal for both in-building data services and rural coverage.More so, given the limited availability of data spectrum across conventional mobile bands like 800, 900, 1800 and 2100 MHz amid the upsurge in data consumption.

"The band, or portions of the band, 470-698 MHz in India, Micronesia, Papua & New Guinea, the Solomon Islands, Tuvalu and Vanuatu, are identified for use by these administrations wishing to implement international mobile telecommunications (IMT)," said an internal document of the ITU. ET has seen a copy of the note. This means the airwaves can be deployed in future for 3G and 4G mobile broadband services once a suitable devices ecosystem is in place. Airwaves within the same band in the 610-698 MHz range, in turn, have been similarly identified for IMT by the "administrations of New Zealand, Bangladesh, Pakistan and Maldives", the ITU document cited above said. The US, Canada, Mexico, Colombia, Finland, Bahamas and Barbados have already agreed to identify these airwaves that have historically been used for television broadcasting for IMT, amid growing demand for mobile broadband services.

The ITU, which deals in spectrum management issues globally, is a multinational effort between governments and private companies to recommend new telecom technologies and standards. (Source: ET Telecom)

Rahul Commerce
Convergence Summit
Sign up for Newsletter

KBITS Start-ups for GITEX Tech Week 2017
Gadget Reviews


Satya Kalyan Yerramsetti
Satya Kalyan Yerramsetti
Founder & CEO
SMS Country Networks

Convergence India 2017

Internet of things  India expo 2017

convergence plus