Saigant Technologies Inc. has developed a device its officials believe will be a serious competitor to cable TV.

After two years in development, an Internet appliance box called Difron, which can transfer video directly from the Internet to television, is ready to go to market.

Toyin Dawodu, the president and CEO of the Grand Terrace-based company, said he is confident the box will reach 1 to 2 million households in the next three to five years. It's projected that consumers will be utilizing the boxes in their homes within the next six months.

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Photo By Juliane Ngan

Toyin Dawodu, CEO and president of Grand Terrace-based Saigant Technologies, has developed an Internet appliance box that can transmit video directly from the Internet to a television and is expected to reach households in the next six months.

"I'm extremely proud of what we have," Dawodu said. "We know as the future comes, we're going to be in the same league as major cable companies because it gives us the opportunity to get into the living rooms of consumers just like regular network television stations without having to deploy a lot of infrastructure."

The Internet protocol television box, also known as a top box, was designed to look and function as standard cable boxes do, said Noah Awoniyi, the chief technology officer for the company. The remote control brings users to a menu where they can select channels. A customizable menu also enables them to program their favorites. Customers will pay a flat rate for the box, which Dawodu said will cost between $199 and $299. As long as a high-speed Internet connection is established, there will be no additional fees for service. Consumers will, however, have an option to purchase movies and other special programs on a pay-per-view basis, Dawodu said.

Saigant Technologies is a technology company that develops embedded systems and software and Internet applications. It was started by Dawodu and Awoniyi in 1999 with the development of an e-mail service called virtual desk. The service enables users to have access to all their documents through the Internet from anywhere in the world. In its first three years, the company had more than 50,000 users on its e-mail service.

The idea of the Difron box came from Dawodu's desire to watch Nigerian programs on his television -- programs that were already readily available over the Internet.

"I started to imagine, what if you're able to transmit video from the Internet to TV?" Dawodu said.

Initially revenue will come through the sale of the boxes, but because consumers will only pay a one-time fee, there will be a revenue shift toward advertising, Dawodu said. Advertising features have already been built into the Difron system through embedded commercials and 10-second sidebar advertisements.

The company will decide over the next few months how exactly it will market the new box. Consumers will be able to purchase the box either directly from a Web site, from an electronics store or a third-party distributor.

Either way, officials are confident it will be a hit.

"Research shows that consumers prefer to be entertained on their TV rather than their computer, but so far the choice has not been given to them," Dawodu said.

Dawodu said in the time Difron was in development the company was utilizing personal funds to support the company's operations. It is finally at the stage where it can begin to raise venture capital. The company is currently operating with just three employees and utilizes the services of several outside software developers. Dawodu expects with the success of Difron, the company will have 20 to 30 employees and will generate about $3 million to $4 million in its first year on the market.

"Even though the market is slow right now, I have a lot of confidence that once things clear up we'll resume our growth again," Dawodu said. The company has many projects in the works including the development of smart devices for telemedicine uses, allowing patient diagnoses to be conducted over the Internet without a hospital visit. It is also developing smart devices for use at supermarkets where an automated attendant will locate products within the store, without the assistance of an employee.

Dawodu said the launch of Difron will mark a new start for Saigant Technologies.

"I know the future will be huge, given the fact that we will be part of the future," Dawodu said. "I can see where the market is going. A lot of big companies are not looking at it. They're not aware of the revolution, but I already know that in the future, a majority of video on television will be delivered by companies like ours."