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 Interview: Stephen Voller, CEO of TVcompass
£29 DTT box planned
September 2002
By Tony Morbin
Interactive television technology company TVcompass in the UK is challenging not only the set top box pricing model, but also current technology and revenue models with its plans to sell a Digital Terrestrial Television (DTT) Set Top Box (STB) and interactive TV remote for £29 (E45) by Spring 2003.

Manufacture of the boxes and remotes has been outsourced to an un-named Far Eastern company. In addition to receiving digital terrestrial signals via an aeriel to the set top, the remote will use GPRS for data backhaul, Bluetooth wireless technology to communicate between the two devices, with an infra-red capability on the remote to allow interaction directly with the TV set. The remote has been described as having a larger screen than most mobiles, comparable with colour PDAs, with the main difference being that you can't speak into it.

Stephen Voller, CEO of TVcompass (left), said, "It will obviously cost more than £29 (E45) to make the TV remotes and set top boxes, and then ship them to customers. But because our system offers further revenue opportunities from shopping, travel, gambling and advertising we are in effect subsidising the cost of the hardware to the consumer through these additional services."

Voller declined to reveal what level of subsidy was being provided, though the price has already been agreed, but he also suggested that the 'low cost' benchmark of £99 currently offered by competitors such as Pace and Gundig probably entailed them loosing money by supplying retailers at a cost of around £60 (E90).

There are often two to four TV sets in most UK households, but even those subscribing to pay TV usually have only one of their TV sets are connected to the pay TV service. Consequently Voller sees his company's low pricing - three sets for less than £100 - as being a "no-brainer."

"The opportunity for our boxes is on every TV in the house. So even if you already have satellite or cable, then you can use our box on a TV set in the kitchen or bedroom. Our £29 package will give the viewer 24 channel TV, digital radio and full interactivity without a monthly subscription or the need to plug the box into a telephone line," says Voller. The company is targeting some 40 per cent of UK households - ten million homes - but wants to sell more than one device into each.
"Pace etc are looking to make a one time £99 sale, whereas our business is ongoing. We sell the real estate on the remote for the 30 minutes or so of a programme."


TVcompass says its STB and TV remote will provide access to the full 24 free-to-air DTT channels on any type of TV, as well as Digital Radio channels and full interactivity via the TV remote. Interactive functions will include the ability to book flights and holidays via the TV remote, and home shopping via TV. Also SMS messaging on the TV and voting to interact with programs like 'Big Brother' will be possible.

Services such as UK Online, the Government's information service, will be accessible as will a full TV listings EPG for all DTT channels and digital radio channels.

 The whole business model is quite sophisticated, as the remote contains its own screen, thus SMS, EPG and other activity conducted on it does not appear on the TV screen. Instead, the remote effectively serves as a simultaneous data, interactivity and advertising channel linked to the TV programme being shown on the TV. So for example, a prime time BBC2 cookery programme could be shown on screen while the handset enables purchase of say Dehlia Smith's Cook book, or ingredients.

Voller added, "Pace etc are looking to make a one time £99 sale, whereas our business is ongoing. We sell the real estate on the remote for the 30 minutes or so of a programme. We have key partners lined up, currently including three number one brands, a major retailer, major travel company and gambling company. These three brands will be the first names to come up in their section at launch - but it will not exclusive. Our business model includes selling the position within the list. As new DTT channels launch we will offer them a route to add interactivity." No level of investment was revealed.

Advanced-television.com questioned Voller on his company's proposed relationship and potential conflicts of interest with its would-be partners, which include broadcasters, programme makers - and advertisers on the commercial channels.

Is cooperation with the broadcaster needed beyond knowing their programming schedule? "We do not (necessarily) need a relationship with the broadcaster as we do not affect the video stream. Are we encroaching on their advertiser's budgets? Well, it's a competitive world. But normally we would want to work with them to produce a package for advertisers. So potential advertising campaigns in advertising breaks could use our system to offer response via the remote control. For content providers, we can act as a easy mechanism for adding interactivity to the mass market. It brings a new revenue stream for programme makers by providing an easier way for viewers to respond."

Voller explained that the company has been around for four years, "founded by the people who founded Radioscope," working in the wireless field with around 21 patents filed, and funded entirely by individuals - though now considering capital investment. Such an ambitious project will require substantial financial backing and skeptics of revenue share asa financial model will no doubt hold back endorsement until the service is seen to be up and running. TVCompass had intended to launch earlier this year but held back due to problems at ITV Digital - and has now been fortunate to see a non-Pay TV version of DTT launch headed by the BBC. Consequently the company now plans to go to user trials in autumn, with a couple of months before its first production run - making a Christmas launch unlikely.

Voller told advanced-television.com that the sales route will not include retail, while not refuting the suggestion of bulk sales, but added that the product would be available in most high streets through the company's unnamed distribution partner, as well as via Web sites and call centres.

"It's the most exciting thing to have happened to the interactive TV industry for a long time," concludes Voller - and if the execution lives up to the forecasts, he could be right.

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