International Datacasting + The Wananchi Group… Driving DTH (SatBroadcasting™)

[SatNews] International Datacasting Corporation (TSX:IDC has entered into an agreement with The Wananchi Group for the development, build up, and roll-out of a new DTH broadcasting service that will provide television programming to the Sub-Saharan region of Africa. The contract includes head-end equipment, valued at approximately US$3,500,000 and will enable a satellite-to-set-top box distribution platform for the delivery of a secure broadcast system to homes throughout the subject region.

IDC will also serve as a system integrator and project manager on the deployment of the consumer level STB using technology from a number of leading vendors to facilitate the deployment to the home. Phase I of this project will include the delivery of a combination of STB1010Z and PVR2020Z STBs up to a total of 100,000 units over the next 18-months, valued at up to US$12,500,000. While margins on these systems projects are lower than in IDC’s satellite equipment segment, the larger anticipated revenues combined with expected lower operating expenses associated with this stream of business are currently expected to offset the margin impact. IDC anticipates that the overall project will be accretive to the IDC business as well as EBITDA positive.

The combined value of the agreement to the end of Phase I is valued at up to US$16,000,000. The agreement also contemplates a Phase II and Phase III product requirement consisting of an additional 100,000 customer premises units for each of these subsequent Phases, subject to Wananchi’s requirements, over a three year period. The project has been funded in part by Export Development Canada (EDC) and East Africa Capital Partners (who have funded the development of The Wananchi Group). The Wananchi Group is launching the first triple-play network in the region under the Zuku consumer brand which brings video, voice and data services to consumers in the area. Earlier this year, The Wananchi Group announced an agreement with SES World Skies to secure three full transponders on the new NSS-12 satellite for the launch of their DTH line-up and VSAT delivered IP based communications, which will further expand their broadcast reach in the region.