Exclusive Interview With The VP Of Products: Broadcast International, Inc. (BCST) - Steve Jones And Cameron Francis

Wall Street Transcript

67 WALL STREET, New York - January 24, 2012 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: 4G LTE and 3G Infrastructure Upgrades - Wireless Carriers Compete for Spectrum - Smartphone Operating Systems - Emerging Markets Growth Shifts to Data ARPU

Companies include: TriQuint Semiconductor (TQNT); U.S. Cellular (USM); AT&Ts (T); America Movil (AMX); and many more.

In the following brief excerpt from the Wireless Communications & Telecom Report, expert analysts discuss the outlook for the sector and for investors.

Cameron Francis, Vice President of Products at Broadcast International, is a seasoned executive with more than 20 years of experience bringing industry-leading software and hardware products to market. Holding senior-level positions at technology companies, including Nevion, Grass Valley, Thomson, Control4 and Symantec, his leadership resulted in the establishment of product creation, distribution and support systems. A graduate of the University of Utah, Mr. Francis holds degrees in marketing and business management.Steve Jones is Senior Vice President and General Manager of the CodecSys Division at Broadcast International, Inc. He has held numerous executive-level positions of several high-tech companies, where he led engineering and sales teams to successful product launches. Among those are Alianza, Auction Trust Network, Solera Networks, Vykor, Data Channel, Mosaix, Novell and Word Perfect. Mr. Jones has an MBA from the University of Utah and a B.S. degree from Brigham Young University.

TWST: Please start by giving us a basic history and overview of Broadcast International.

Mr. Jones: The company itself has been around for quite some time in one form or another, and has a history of more than 25 years. In 1999, the company evolved into what it is today. Essentially, it started as a hosted network to manage video communication for large enterprises; so you have, essentially, all of the components, a data center, a direct satellite uplink, and then, data or end-user nodes across this network that we can broadcast live events, high-quality content for a whole variety of applications. Think of us as a TV network for large corporate enterprises.

That has evolved on the network side of our business to really become a leading provider in the enterprise digital signage marketplace, providing interactive displays that embrace an intimate customer conversation, if you will, on premise or in various outlets. Many of our customers are large financial institutions. We have several retail customers who use rich media to enhance their messaging and create a conversation with their end-user customers while they are in the branch, while they are in the retail store, displacing paper-based print materials in advertising.

Our biggest customers are very serious about that customer relationship. Hollister is a good example. If you've ever been to a Hollister store, you have seen that 3-by-3 TV panel, which carries a live video feed over our network. We worked with the CEO there. He is a very aggressive retailer, and he knew what he wanted. We manage over 30,000 screens on our network. We also have several large financial institutions as clients. One of them is a large regional bank in the West. We also service an extremely large national bank which has tens of thousands of retail outlets.

TWST: Is demand for video services increasing dramatically? Is there much more demand now than there was even a few years ago?

Mr. Jones: There is no question. When we started this thing, we really were focused on the IPTV market, and we went through an exhaustive certification. At the time, Microsoft had a product called Mediaroom, and that product was sold into the 35 of the top 36 telecommunications companies in the world who wanted to compete with cable providers in offering a programcentric video experience like FiOS or U-verse from AT&T. That demand has shifted to this phenomenon that's called over the top. So the OTT market, which is essentially bypassing or sending video over the top of those providers directly to the consumer, is where the demand has skyrocketed.

Whereas before our target customer was a telecommunications provider or a cable guy, now it is anybody who produces that video. They don't need to go through Time Warner anymore. So they have an urgent need to build out their infrastructure to deliver that content, and because we are software and because we can move quickly and because of the risk in the business model, they need someone who can be flexible in rolling out that infrastructure without charging an arm and leg for a capex investment. So yes, demand has gone crazy. Our challenge now as a small group, just getting into the business, is to ramp up direct partnerships that get us access to those deals.

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