Radio ZEfir

In-Car Pay Radio Project Developed by Farhad Gafarzadeh and Mahi Rustamov

• Provide radio listeners with about 50-60 exclusive radio stations not available on the air

• Provide all supported device owners with traffic and parking information

• Provide value added services by means of additional song related data (name of the song, album cover, URL to download or buy it, etc. )

• Charge subscription fee for bouquet of the services and sustain business with commercial-based revenue

Idea in a nutshell

We are going to exploit a long-standing and proven technology todeploy Radio ZEfir network – DMB (Digital Multimedia

Broadcasting).

We will benefit from:• In-car reception (even at 150 km/h)• Wide bandwidth (about 28 radio stations per mux)• Strong beam (fewer “holes”)• Wide coverage area (whole Absheron peninsula)• Cost-effectiveness (low cost of network roll-out)• Value-added services (traffic, parking, etc.)

Usable spectrum for DMB:• VHF Band III (TVC 7~TVC 13, 174~216 MHz)• L-band (1452~1492 MHz)

Technology

Preferred spectrum for DMB is VHF (174-216 MHz).

Using HE-AAC v2 audio coding it will be possible to render 28 radioservices at 40 kbps within one multiplex.

Other systems using HE-ACC v2 are: Ipod, T-DMB (South Korea), Media FLO (USA), Sirius XM (USA),

etc.

Technology

Audio

512kHZ 192kHZ192kHZBlock A 1,536M

Hz512kHZ

Block B 1,536M

Hz

Block C 1,536M

Hz

204 MHz

210 MHz

Data

Bandwidth 1,2 Mbps

1 TV Channel is 6 MHz

Radio Content Provider

Aggregation and in-house production

ZEfir Radio Radio Content Subscriber

Business Model

Cost stream Revenue stream

Subscription fee will be the major source of revenue. As compared with

advertising-based revenue, it affords far better monetization of listeners.

We are going to partner with auto-distributors and after-market dealers

for promotion of the platform

Value Proposition

• Niche and various formats of high quality digital music, sports, news, talk, in-house produced stations and most popular podcasts

• Program Associated Data (name of the song, album cover, URL to download, etc.)

• Information on traffic, free parking slots, road constructions, etc.

• Movie and TV channels for rear passengers

We plan in-car service using ‘plug and play’ aftermarket devices.

Yet we gradually will expand from after-market and PND (Personal

Navigation Devices) to vehicle market with pre-installed Pay Radio in new

cars.

Devices

DMB technology presents opportunity to provide innovative services

beyond broadcasting.

Leveraging DMB we are able to render additional services such as:

• Traffic and Travel Information to PND (Personal Navigation Devices)

• Inside public transport and outdoor advertising

Leverage DMB

Ads between shorts inside cabs on mounted

monitors

Ads on LED monitorsBroadcast TTI to PND

The provision of TTI has long been at the center of development of ITS(Intelligent Transport System).

Utilizing DMB we can provide Congestion and Travel Time information ,Road Traffic Messages, Point Of Interest, Parking Information. etc.

For example Parking Information can provide info on e.g.:• Where are the parking facilities related to the event? • Are there still empty spaces?• What does it cost to park there? • How long is that parking open?

We may collaborate with Baku Intelligent Transport System as a data provider

on standard, but will compete on content and quality

Traffic and Travel Information

Public Transport & Outdoor Ads

Vehicle Taxi-cab Bus

Quantity 1000 1000

All those vehicles can be equipped with monitors to deliver ads topassengers.

Moreover, we can use DMB to broadcasts commercials to outdoor LED

screens.

Advantages of DMB as a delivery platform are:• Logistically simpler since DMB can broadcast to multiple

locations simultaneously• Real-time updates are possible. • It can generate a livelier and eye-catching advertising display

According to NTRC there are 11 local radio stations in Azerbaijan.

Radio in Azerbaijan

Station Affiliation Frequency

Azərbaycan Dövlət Radiosu State 88 AM

İctimai Radio Public 90 FM

“ANS ÇM” Radiosu Commercial  102 FM

“Azad Azərbaycan” Radiosu Commercial 106.3 FM“Antenn” Müstəqil Teleradio

KompaniyasıCommercial 101 FM

“Bürc FM” Radiosu Commercial 100.5 FM 

“106 FM” Radiosu Commercial 106 FM

“Lider FM” Radiosu Commercial 107 FM

“Space” Radiosu Commercial  104 FM 

“Xəzər” Radiosu Commercial 103 FM

“Media FM” Radiosu Commercial 105.5 MHz

Car Radio Audience

Source: www.stat.gov.az

Overall target market is circa 600,000 automobiles.

2008 2009 2010 2011100.0

200.0

300.0

400.0

500.0

600.0

700.0

431.0472.5

518.2562.7

452.8496.9

544.3591.6

Number of passenger cars

BakuAbsheron peninsula

2008 2009 2010 201110.0

20.0

30.0

40.0

50.0

60.0

70.0 62.4

39.7 43.4 41.5

Number of new passenger cars

Baku

• Involve a technology consultancy to develop full-fledged project and

prepare RFPs• Jointly with management consultancy undertake market

research,perform capital budgeting, prepare business plan and assess the

projectviability• Present the project to MCIT and NTRC to get a license

After approval and implementation of the above-mentioned steps

• Call for bids, evaluate proposals, select vendors and sign contracts

• Perform right acquisition• Prepare Go-to-market strategy • Deliver, install, and go on air

Agenda