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ARION Technologies (Pty) Ltd

This presentation by Arion Technologies outlines their manufacturing capability and readiness to produce set-top boxes for the South African and African markets. They highlight their technology partner, manufacturing capacity, skills transfer and job creation initiatives, distribution channels, and SMME installation partners.

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ARION Technologies (Pty) Ltd

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  1. ARION Technologies (Pty) Ltd Presentation to Portfolio Committee on Communications – State of Readiness to manufacture Set Top Boxes 21 September 2011

  2. Content • Arion Technologies (Pty) Ltd • Technology / IP Partner • Manufacturing Capability • Skills Transfer and Job Creation • Distribution Channels • SMME installation partners • Summary

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Skills transfer and Job Creation • 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

  9. 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

  10. 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

  11. 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

  12. History 2011 South Africa DTT STB Allocation ?? 2011 2010 Contracted with Claro(Telemex) in LATAM Achieved ORF HD license by Irdeto/ORS 2009 Achieved Cable HD Ready license Achieved Riks TV license Contracted with Telefonica Obtained FCC waiver on cable DTA box for US market 2008 Contracted with Videocon, India 2007 Opened a subsidiary company in Johannesburg, South Africa (Arion SA Ltd) Opened a sales branch in Buenos Aires, Argentina Licensed OpenTV 2006 Contracted with DishTV, WWIL(India) Cablevision etc. Obtained a patent for multi-room PVR 2005 Listed on KOSDAQ Licensed Nagravision Licensed Cryptoworks 2004 Obtained TL-9000 certificate 2002 Licensed Irdeto 2000 Established A/V R&D center 1999 Established Arion Technology Inc. 1999

  13. 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

  14. 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

  15. 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 • No.1 Satellite & Telco company 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 • Providing DVB-S2 Irdeto HD • Largest DTH Operator in Austria

  16. Partners Main Chipset CAS & Middleware & BrowserMembership Licenses

  17. Sales and Strategic Value • Arion Korea, through Arion SA, has supplied PVRs and FTA (Free-to-Air) STBs to companies, such as Sentech and other regional broadcasters • Arion Korea also provides technical consulting on digital migration • In supplying Arion SA with manufacturing capabilities Arion Korea will also empower Arion SA through skills transfer and job creation

  18. Strategic Value • Arion SA’ relationship with Arion Korea will empower Arion SA to manufacture and maintain STBs and help government meet its ICT job creation ambitions • Our strategic relationship will also enable Arion SA to manage the customer interface • Eventually through the strategic partnership, Arion SA will establish its own local R&D capacity and capability

  19. Product Details T2, Twin Tuner USB PVR DVB-T2, High Definition - Fully compliant to MPEG-4&H.264 Standard - PVR through USB2.0 - OTA over the Ethernet HD Twin Tuner PVR DVB-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

  20. Product Details ISDB-T/DVB-S2 Combo DVB-S2 / ISDB-T, High Definition - Fully compliant to MPEG-4&H.264 Standard - DVB-S2 / ISDB-T Combo Tuners - Conax CAS 7 Chipset Pairing HD USB PVR DVB-S2, High Definition - Irdeto Secure Silicon - PVR through USB2.0 - Fully compliant to MPEG-4&H.264 Standard - 1 DVB Common Interface

  21. 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

  22. Contact Details • website address: www.arion.co.kr • e:mail address: phatangn@ariontechnologies.co.za • telephone number: +27 (0) 11 025 1340 • fax number: +27 (0) 86 724 8508

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