What are your key costs? How much are you looking to invest in infrastructure?
Our key costs are primarily spread across R&D and infrastructure, and most of our expenditure will be on network, infrastructure deployment for the 3G rollout and R&D. Out investment on 3G rollout depends on when 3G takes off. We are loking to invest anywhere between 25 to 30% of the money raised in the next one year.
..how does the revenue model work in this space?
Revenue models are purely on a revenue share: there is a share between us and the operator, and we, in turn, have all the agreements with all the content providers. We have currently a partnership with almost 70 TV channels.
What do you think would be the size of the mobile TV market in India right now?
If you look at today it’s not big enough but we are expecting that to dramatically change with 3G coming in. With our scale we are able to sustain. We are a team of almost 40 – 50 people in Hyderbad and we have a whole backbone set-up in India where we are delivering the content to operators. It is not minuscule, but definitely not big enough for what we foresee with with 3G coming in. In fact if you look at the recent Champions League, Mobile ESPN which has been the perimeter brand involve there and the commercials were running of mobile ESPN was completely powered by us .
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at email@example.com