Ocala company provides networks' videophones

Ocala Star-Banner - October 12, 2001

By HARRIET DANIELS
Staff Writer

OCALA — Keeping up with the recent demand for videophones has been a challenge for Richtec Inc. of Ocala. The company is the exclusive North American distributor of the European-manufactured phones television networks are using to transmit images of war from remote areas of Afghanistan to the rest of the world.

A wholly owned subsidiary of England-based Richtec PLC, Richtec Inc., owns several companies that produce a variety of satellite phones. Unlike those units, the videophone is made by independent manufacturer 7E Communications Ltd. It was invented in the late 1980s by Edward Beardow and really gained attention in April when a CNN reporter used one to capture the departure of a U.S. spy plane from China.

Jerry Gutman, president of Richtec Inc. in Ocala, said phones have been ringing off the hook for the past month, with dealers trying to fill orders for the major news networks.

Gutman was attending a trade show in Atlanta on the day of the attacks and was about to conduct a demonstration for CNN.

"I never got to do the demonstration, but CNN was excited and asked if they could take the two model units we had to use for coverage,'' Gutman said.

The unit, small enough to fit in a backpack and easy to set up just about anywhere, does not offer a quality image like traditional video but allows flexibility and mobility to get reports from remote locations.

"The main reason for the success of the unit is because it's small, light, relatively inexpensive, and one person can carry the unit by themselves . . . set up anywhere and be live within minutes versus having to take a truck in or use just a phone," Gutman said.

Without the $7,950 videophone, live video from remote places like Afghanistan require satellite up-link facilities and at least a ton of recording and broadcast gear, operated by a crew of three to four, usually housed inside a van.

"Moving all that equipment is a big operation, especially in a war zone," said CNN chief news executive Eason Jordan.

Before the terrorist attacks, Gutman said orders were pretty good, and CNN and the BBC had been using the equipment for a while.

"We were also in (Los) Vegas for the National Association of Broadcasters convention and everyone was going wild over this thing and orders were coming in steady,'' he said. "Now our shelves are bare. We have been unable to keep with the demand. It's a unique and highly specialized unit."

He said the moment a unit is received from the manufacturer, it is shipped back out the door to fill orders.

The 7E Communications Ltd. Web site has posted a message to let visitors know that the company is working diligently to fill orders as quickly as possible.

Richtec Inc., which set up shop in Ocala in September 2000, employs four people. Gutman said though the events of Sept. 11 were unfortunate, they have provided the company a chance to build the business. With the company's growth, Gutman is looking forward to the opportunity to employ more people.

The Associated Press contributed to this report. Harriet Daniels covers business for the Star-Banner. She can be reached at harriet.daniels@starbanner.com or 867-4125.

See October 12, 2001 issue of Ocala Star-Banner for original article.