TELEVISION :
INDIA MOST ENTERTIMENT PUBLIC PEOPLE LIKED TELEVISION PICTURE, MUSIC, NEWS, SPORTS, CHILDERN LIKED CARTOON, WITH FAMILY ENJOY THE HOUSE. THE FIRST CABLE CONNECTION IN THE INDIA MOST FAMOUS BUT CITY ONLY VILLAGE OUT OF AREA CABLE CONNECTION FAILED.
DTH :
INDIA FIRST DTH FREE SERVIC E IN INDIA PEOPLE LIKED ENJOY THE
ENTTERANIMENT VILLAGE PEOPLE IS VERY LIKED. RECENTLY VERY PRIVATE
COMPANY DTH INTEREST IN INDIA.
FUTURE JOB :
DTH MOST FUTURE JOBS TECHINCAL MOST FITTING IN EXTRA..........
Will DTH work in India?
BS Bureau October 08, 2003
Drop in set-up and service costs makes it an attractive option, but unclear policies remain a major hurdle.
Jawahar Goel, Head, Siti Cable
Seven years ago, launching a direct-to-home service could have been a recipe for disaster. Investment costs were very high so customers had to fork out much more.
Also Read
The New Cable TV Regime
But today, the market has been transformed: prices of the dish and the set-top box have crashed through the roof, overall investment in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs.
What is fortuitous for DTH operators is the fact that the service comes at a time when the government is pushing for the Conditional Access System, which will make cable television more expensive, narrowing the tariff gap between the two.
The cost of the installation equipment (which includes the dish and the set-top box) offered by Siti Cable is an attractive Rs 3,900. Apart from falling prices, the government has also offered a temporary relief -- a five per cent reduction in the duty on the set-top boxes that are being imported.
Just a few year ago, when Star TV made an abortive attempt to launch DTH, the same system cost Rs 14,000 to Rs 15,000. And because the costs were so high, companies that were planning to offer DTH services hit on the only survival strategy that they could think of: subsidise the box at Rs 5,000, but make it up by asking customers to fork out a steep Rs 700 a month for the basic bouquet on DTH.
But the fall in box prices have helped in offering the services at an attractive price, which is expected to start from as low as Rs 100 for 38 channels going up depending on the quality of the channels shown.
As a result, Siti Cable is looking at a large number of subscribers to get hooked on to the DTH channel. The target is to rope in as many as 1 million subscribers in a period of 15 months. This certainly isn't a niche product.
What has added to the viability is that the upfront cost of putting up the DTH platform has also fallen. We are investing Rs 250 crore (Rs 2.5 billion) on the project for 38 channels and the same infrastructure is being leveraged to run the company's head end in the sky infrastructure.
A similar infrastructure would have required an investment of Rs 2,000 to Rs 2,500 crore (Rs 20-25 billion) a few years ago.
What has added to the viability of DTH is the fact that cable TV will become more expensive. For instance, with the roll out of CAS (it has already been rolled out in Chennai), subscribers will have to fork out about Rs 2,700 for the CAS box. Now, if you pay another Rs 1,000, you can be a DTH-enabled home.
Secondly, subscribers will have to pay more under the CAS regime to see their favourite programmes. They will have to pay anything between Rs 200 to Rs 250 a month to see all the key channels, instead of the Rs 100 to Rs 150 they paid earlier. Even here, the difference between a DTH and a CAS subscriber is getting blurred.
But, of course, there is a large market that is waiting to be tapped for DTH services. While there are 85 million TV sets, there are only 43 million cable homes.
Even if we assume that 50 per cent of the remaining TV owners do not have the cash to go for cable services, there are still as many as 20 million households waiting to be tapped. Many of them live in remote areas, isolated pockets where cable TV is unviable, and DTH could be the only answer.
Roop Sharma, President, Cable Operators Federation of India
The government has started issuing direct-to-home licences to companies. DTH has found its biggest supporter in the Indian media, which believes it to be the answer to all cable woes.
But it must be noted that much needs to be done before DTH can actually succeed in India. It's not because DTH is not good for the country. It is the preparation, policies and attitude of the masses that will discourage its spread.
Conditional Access System (CAS) versus DTH: First, we need to understand that DTH does not compete with CAS as is projected in the media.
Several politicians and MPs have been vociferous in their views on CAS versus DTH. They've said that CAS should be implemented only after DTH transmissions start, so that people have the option of getting rid of their cable operators.
Cable TV and DTH are two methods of delivery of television content. CAS is integral to both the systems in delivering pay channels.
Cable is through cable networks and DTH is wireless, reaching direct to the consumer through a small dish and a set top box.
The difference between the two is akin to the difference between an ordinary land line telephone service and a mobile phone service.
Though the government has ensured that free-to-air channels on cable are delivered to the consumer without a set top box, no DTH signals can be received without the set top box.
So a set top box is a necessary expense for DTH. While a digital cable set top box may cost Rs 4,000, a DTH decoder is unlikely to cost less than Rs 7,000.
Besides, the monthly subscription cost for DTH and CAS on cable will vary. A cable connection with all the major pay channels is likely to be priced at Rs 300 to Rs 400 a month compared to DTH's minimum subscription of Rs 500. For adding premium channels, this cost could go up substantially.
Content: In India, content will be a major hindrance to the success of DTH. A person will opt for DTH only if he receives many more new channels that cable TV cannot offer.
Quality will not be deciding factor as the digital cables being installed by the multiple-service operators for introducing CAS is as good as DTH.
A DTH provider must provide all the existing cable channels and more to lure consumers to buy a set top box and dish out between Rs 7,000 and Rs 12,000 and pay a subscription of Rs 500 every month.
In India, two major DTH platform providers -- Zee and Star -- are archrivals and have not decided to share their content yet.
Their individual bouquets of 10 to 15 channels along with 40 odd free-to-air channels may not be an attractive proposition to drive DTH penetration when similar content will be available on cable TV for Rs 300 to Rs 400 every month.
As far as content goes, the government too may play spoilsport. It may not allow adult channels to come to India. The world over, DTH thrives on adult content, premium movies and sports. Till such policy changes are made, DTH has no pull.
Platforms: There are four serious contenders of providing DTH services in India -- Star, Zee, Doordarshan and Data Access. Experience in developed markets shows that not more than two platforms can co-exist.
It means that these companies may fight for supremacy till only two of them are left. The basic battle will be on content and cost.
Again, this may take a while. In the US, DTH took five years to become a force in content delivery. Even after over 15 years, it has cornered just 25 per cent of television households.
Value Addition: As digital cable networks have already started operating in India, cable operators may soon offer two-way path going right upto the consumer's home.
That will facilitate interactivity, high-speed broadband access, gaming, video-on-demand and many more services on cable. When it starts, DTH will still be a one-way transmission. Such value additions will take time and will be costlier on DTH.
Drop in set-up and service costs makes it an attractive option, but unclear policies remain a major hurdle.
Jawahar Goel, Head, Siti Cable
Seven years ago, launching a direct-to-home service could have been a recipe for disaster. Investment costs were very high so customers had to fork out much more.
Also Read
The New Cable TV Regime
But today, the market has been transformed: prices of the dish and the set-top box have crashed through the roof, overall investment in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs.
What is fortuitous for DTH operators is the fact that the service comes at a time when the government is pushing for the Conditional Access System, which will make cable television more expensive, narrowing the tariff gap between the two.
The cost of the installation equipment (which includes the dish and the set-top box) offered by Siti Cable is an attractive Rs 3,900. Apart from falling prices, the government has also offered a temporary relief -- a five per cent reduction in the duty on the set-top boxes that are being imported.
Just a few year ago, when Star TV made an abortive attempt to launch DTH, the same system cost Rs 14,000 to Rs 15,000. And because the costs were so high, companies that were planning to offer DTH services hit on the only survival strategy that they could think of: subsidise the box at Rs 5,000, but make it up by asking customers to fork out a steep Rs 700 a month for the basic bouquet on DTH.
But the fall in box prices have helped in offering the services at an attractive price, which is expected to start from as low as Rs 100 for 38 channels going up depending on the quality of the channels shown.
As a result, Siti Cable is looking at a large number of subscribers to get hooked on to the DTH channel. The target is to rope in as many as 1 million subscribers in a period of 15 months. This certainly isn't a niche product.
What has added to the viability is that the upfront cost of putting up the DTH platform has also fallen. We are investing Rs 250 crore (Rs 2.5 billion) on the project for 38 channels and the same infrastructure is being leveraged to run the company's head end in the sky infrastructure.
A similar infrastructure would have required an investment of Rs 2,000 to Rs 2,500 crore (Rs 20-25 billion) a few years ago.
What has added to the viability of DTH is the fact that cable TV will become more expensive. For instance, with the roll out of CAS (it has already been rolled out in Chennai), subscribers will have to fork out about Rs 2,700 for the CAS box. Now, if you pay another Rs 1,000, you can be a DTH-enabled home.
Secondly, subscribers will have to pay more under the CAS regime to see their favourite programmes. They will have to pay anything between Rs 200 to Rs 250 a month to see all the key channels, instead of the Rs 100 to Rs 150 they paid earlier. Even here, the difference between a DTH and a CAS subscriber is getting blurred.
But, of course, there is a large market that is waiting to be tapped for DTH services. While there are 85 million TV sets, there are only 43 million cable homes.
Even if we assume that 50 per cent of the remaining TV owners do not have the cash to go for cable services, there are still as many as 20 million households waiting to be tapped. Many of them live in remote areas, isolated pockets where cable TV is unviable, and DTH could be the only answer.
Roop Sharma, President, Cable Operators Federation of India
The government has started issuing direct-to-home licences to companies. DTH has found its biggest supporter in the Indian media, which believes it to be the answer to all cable woes.
But it must be noted that much needs to be done before DTH can actually succeed in India. It's not because DTH is not good for the country. It is the preparation, policies and attitude of the masses that will discourage its spread.
Conditional Access System (CAS) versus DTH: First, we need to understand that DTH does not compete with CAS as is projected in the media.
Several politicians and MPs have been vociferous in their views on CAS versus DTH. They've said that CAS should be implemented only after DTH transmissions start, so that people have the option of getting rid of their cable operators.
Cable TV and DTH are two methods of delivery of television content. CAS is integral to both the systems in delivering pay channels.
Cable is through cable networks and DTH is wireless, reaching direct to the consumer through a small dish and a set top box.
The difference between the two is akin to the difference between an ordinary land line telephone service and a mobile phone service.
Though the government has ensured that free-to-air channels on cable are delivered to the consumer without a set top box, no DTH signals can be received without the set top box.
So a set top box is a necessary expense for DTH. While a digital cable set top box may cost Rs 4,000, a DTH decoder is unlikely to cost less than Rs 7,000.
Besides, the monthly subscription cost for DTH and CAS on cable will vary. A cable connection with all the major pay channels is likely to be priced at Rs 300 to Rs 400 a month compared to DTH's minimum subscription of Rs 500. For adding premium channels, this cost could go up substantially.
Content: In India, content will be a major hindrance to the success of DTH. A person will opt for DTH only if he receives many more new channels that cable TV cannot offer.
Quality will not be deciding factor as the digital cables being installed by the multiple-service operators for introducing CAS is as good as DTH.
A DTH provider must provide all the existing cable channels and more to lure consumers to buy a set top box and dish out between Rs 7,000 and Rs 12,000 and pay a subscription of Rs 500 every month.
In India, two major DTH platform providers -- Zee and Star -- are archrivals and have not decided to share their content yet.
Their individual bouquets of 10 to 15 channels along with 40 odd free-to-air channels may not be an attractive proposition to drive DTH penetration when similar content will be available on cable TV for Rs 300 to Rs 400 every month.
As far as content goes, the government too may play spoilsport. It may not allow adult channels to come to India. The world over, DTH thrives on adult content, premium movies and sports. Till such policy changes are made, DTH has no pull.
Platforms: There are four serious contenders of providing DTH services in India -- Star, Zee, Doordarshan and Data Access. Experience in developed markets shows that not more than two platforms can co-exist.
It means that these companies may fight for supremacy till only two of them are left. The basic battle will be on content and cost.
Again, this may take a while. In the US, DTH took five years to become a force in content delivery. Even after over 15 years, it has cornered just 25 per cent of television households.
Value Addition: As digital cable networks have already started operating in India, cable operators may soon offer two-way path going right upto the consumer's home.
That will facilitate interactivity, high-speed broadband access, gaming, video-on-demand and many more services on cable. When it starts, DTH will still be a one-way transmission. Such value additions will take time and will be costlier on DTH.
With the 'CAS' issue not yet resolved, there's 'DTH' coming up to muddle things up for you and me.
Doordarshan will launch its Direct-To-Home telecast from April 1. Broadcasters like Star and Zee are pushing hard for DTH services in India too.
So what is this DTH all about? How, if at all, does it help the customer? Is it good? Let's find out.
What is DTH?
DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home.
DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite programmes and they then distribute them to individual homes.
How does DTH work?
A DTH network consists of a broadcasting centre, satellites, encoders, multiplexers, modulators and DTH receivers.
A DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and set-top boxes to decode and view numerous channels. On the user's end, receiving dishes can be as small as 45 cm in diametre.
DTH is an encrypted transmission that travels to the consumer directly through a satellite. DTH transmission is received directly by the consumer at his end through the small dish antenna. A set-top box, unlike the regular cable connection, decodes the encrypted transmission.
How does DTH really differ from cable TV?
The way DTH reaches a consumer's home is different from the way cable TV does. In DTH, TV channels would be transmitted from the satellite to a small dish antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster directly connects to the user. The middlemen like local cable operators are not there in the picture.
DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. As we explained above, in DTH signals directly come from the satellite to your DTH dish.
Also, with DTH, a user can scan nearly 700 channels!
Does one need to put two dish antennae and pay double subscription per month if one has two TVs?
For multiple connections in the same premises, one can use the same connection. However, every television set will need to have an individual STB.
Also, DTH is a national service and the STBs enable a viewer to change service providers without changing the STB, even if one moves from one city to another.
Can a CAS set-top box be used for DTH?
No, these are different set-top boxes.
Why is DTH is being discussed now?
Doordarshan plans to launch its DTH telecast from April 1. The government has said it will provide 10,000 dishes free across eight states for increased community viewing of the DTH service. The government is estimated to be investing over Rs 300 crore (Rs 3 billion) in this DTH venture.
There are four serious contenders for DTH services in India: Doordarshan, Star, Zee, and Data Access.
Is DTH superior to cable TV?
Yes. DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc are pushing for it.
So why are broadcasters pushing for DTH?
In DTH, the payments will be made directly by the subscriber to the satellite company offering the service.
A big problem that broadcasters face in India is the issue of under-reporting of subscribers by cable operators.
Consider the cable operators pyramid. Right at the top is the broadcaster. Next comes the Multi Service Cable Operator (MSOs) like Siticable, InCable, etc. Below them are the Access Cable Operators (ACOs) or your local cable guy who actually lays the wires to your house.
The local cable operators or the ACOs then allegedly under-report the number of subscribers they have bagged because they have to pay the MSOs something like Rs 30-45 per household. Showing a lesser number of households benefits ACOs.
With no way to actually cross check, the MSOs and the broadcasters lose a lot. Broadcasters do not earn much in subscription fees and are mostly dependent on advertisement revenue to cover their costs, which is not sustainable and does not offer high growth in revenues for broadcasters.
The way out of this is to use a set-top box so that it will be clear how many households are actually using cable or going for DTH where broadcasters directly connect to consumers and can actually grow revenues with a growth in the subscriber base.
Why do Doordarshan, Zee, Star think DTH will work in India?
Today, broadcasters believe that the market is ripe for DTH. The prices of the dish and the set-top box have come down significantly. Overall investments required in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs.
The major thing that DTH operators are betting on is that the service is coming at a time when the government is pushing for CAS (conditional access system), which will make cable television more expensive, narrowing the tariff gap between DTH and cable.
Will DTH be cheaper than cable or more expensive?
DTH will be definitely more expensive than cable as it exists today.
A set-top box is a must for DTH. Earlier, when CAS made set-top box mandatory for households, the costs between DTH and cable would not have been too wide.
But CAS on the backburner now -- which means no set-top box (a must for DTH), the price gap between DTH and cable will be wide.
In Oct 2002, Siticable, which is owned by Zee, said that the cost of the installation equipment, which includes the receiver dish and the set-top box, would be priced at around Rs 3,900. Siticable is looking to rope in 1 million subscribers in 15 months.
Other estimates say that digital cable set-top box may cost Rs 4,000, a DTH decoder dish is unlikely to cost less than Rs 7,000.
DTH's minimum subscription could be priced around Rs 500 per month.
Some reports say that an entry level DTH STB will cost about Rs 7,000 (including taxes and installation cost at consumers end). A more advanced STB with value added features like PVR (Personal Video Recorder), PSTN connectivity, Gamming console, channel management system, etc. may cost as much as Rs 15,000.
Doordarshan will launch its Direct-To-Home telecast from April 1. Broadcasters like Star and Zee are pushing hard for DTH services in India too.
So what is this DTH all about? How, if at all, does it help the customer? Is it good? Let's find out.
What is DTH?
DTH stands for Direct-To-Home television. DTH is defined as the reception of satellite programmes with a personal dish in an individual home.
DTH does away with the need for the local cable operator and puts the broadcaster directly in touch with the consumer. Only cable operators can receive satellite programmes and they then distribute them to individual homes.
How does DTH work?
A DTH network consists of a broadcasting centre, satellites, encoders, multiplexers, modulators and DTH receivers.
A DTH service provider has to lease Ku-band transponders from the satellite. The encoder converts the audio, video and data signals into the digital format and the multiplexer mixes these signals. At the user end, there will be a small dish antenna and set-top boxes to decode and view numerous channels. On the user's end, receiving dishes can be as small as 45 cm in diametre.
DTH is an encrypted transmission that travels to the consumer directly through a satellite. DTH transmission is received directly by the consumer at his end through the small dish antenna. A set-top box, unlike the regular cable connection, decodes the encrypted transmission.
How does DTH really differ from cable TV?
The way DTH reaches a consumer's home is different from the way cable TV does. In DTH, TV channels would be transmitted from the satellite to a small dish antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster directly connects to the user. The middlemen like local cable operators are not there in the picture.
DTH can also reach the remotest of areas since it does away with the intermediate step of a cable operator and the wires (cables) that come from the cable operator to your house. As we explained above, in DTH signals directly come from the satellite to your DTH dish.
Also, with DTH, a user can scan nearly 700 channels!
Does one need to put two dish antennae and pay double subscription per month if one has two TVs?
For multiple connections in the same premises, one can use the same connection. However, every television set will need to have an individual STB.
Also, DTH is a national service and the STBs enable a viewer to change service providers without changing the STB, even if one moves from one city to another.
Can a CAS set-top box be used for DTH?
No, these are different set-top boxes.
Why is DTH is being discussed now?
Doordarshan plans to launch its DTH telecast from April 1. The government has said it will provide 10,000 dishes free across eight states for increased community viewing of the DTH service. The government is estimated to be investing over Rs 300 crore (Rs 3 billion) in this DTH venture.
There are four serious contenders for DTH services in India: Doordarshan, Star, Zee, and Data Access.
Is DTH superior to cable TV?
Yes. DTH offers better quality picture than cable TV. This is because cable TV in India is analog. Despite digital transmission and reception, the cable transmission is still analog. DTH offers stereophonic sound effects. It can also reach remote areas where terrestrial transmission and cable TV have failed to penetrate. Apart from enhanced picture quality, DTH has also allows for interactive TV services such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc are pushing for it.
So why are broadcasters pushing for DTH?
In DTH, the payments will be made directly by the subscriber to the satellite company offering the service.
A big problem that broadcasters face in India is the issue of under-reporting of subscribers by cable operators.
Consider the cable operators pyramid. Right at the top is the broadcaster. Next comes the Multi Service Cable Operator (MSOs) like Siticable, InCable, etc. Below them are the Access Cable Operators (ACOs) or your local cable guy who actually lays the wires to your house.
The local cable operators or the ACOs then allegedly under-report the number of subscribers they have bagged because they have to pay the MSOs something like Rs 30-45 per household. Showing a lesser number of households benefits ACOs.
With no way to actually cross check, the MSOs and the broadcasters lose a lot. Broadcasters do not earn much in subscription fees and are mostly dependent on advertisement revenue to cover their costs, which is not sustainable and does not offer high growth in revenues for broadcasters.
The way out of this is to use a set-top box so that it will be clear how many households are actually using cable or going for DTH where broadcasters directly connect to consumers and can actually grow revenues with a growth in the subscriber base.
Why do Doordarshan, Zee, Star think DTH will work in India?
Today, broadcasters believe that the market is ripe for DTH. The prices of the dish and the set-top box have come down significantly. Overall investments required in putting up a DTH infrastructure has dropped and customers are also reaping the benefits of more attractive tariffs.
The major thing that DTH operators are betting on is that the service is coming at a time when the government is pushing for CAS (conditional access system), which will make cable television more expensive, narrowing the tariff gap between DTH and cable.
Will DTH be cheaper than cable or more expensive?
DTH will be definitely more expensive than cable as it exists today.
A set-top box is a must for DTH. Earlier, when CAS made set-top box mandatory for households, the costs between DTH and cable would not have been too wide.
But CAS on the backburner now -- which means no set-top box (a must for DTH), the price gap between DTH and cable will be wide.
In Oct 2002, Siticable, which is owned by Zee, said that the cost of the installation equipment, which includes the receiver dish and the set-top box, would be priced at around Rs 3,900. Siticable is looking to rope in 1 million subscribers in 15 months.
Other estimates say that digital cable set-top box may cost Rs 4,000, a DTH decoder dish is unlikely to cost less than Rs 7,000.
DTH's minimum subscription could be priced around Rs 500 per month.
Some reports say that an entry level DTH STB will cost about Rs 7,000 (including taxes and installation cost at consumers end). A more advanced STB with value added features like PVR (Personal Video Recorder), PSTN connectivity, Gamming console, channel management system, etc. may cost as much as Rs 15,000.
What is the history of DTH in India?
DTH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. In 1997, the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India.
Finally in 2000, DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the number of companies that can apply for the DTH license.
So, what's the buzz? Will DTH finally be the one that rules?
The cable system is well entrenched in India and is showing quite rapid growth. If DTH had come to India in 1996-97 (like Star had originally attempted), then it could have made a significant breakthrough.
Europe is an example of this. DTH developed there before cable and now controls nearly 80 per cent of the total satellite television subscriber base. But in US, cable rules because it came before DTH.
DTH will definitely cut into the existing cable user base. It will make the local cable operator less important and take business away from him. It will give consumers greater choice.
But it is likely to be an up market premium product and most middle class households will stick to cable.
DTH services were first proposed in India in 1996. But they did not pass approval because there were concerns over national security and a cultural invasion. In 1997, the government even imposed a ban when the Rupert Murdoch-owned Indian Sky Broadcasting (ISkyB) was about to launch its DTH services in India.
Finally in 2000, DTH was allowed. The new policy requires all operators to set up earth stations in India within 12 months of getting a license. DTH licenses in India will cost $2.14 million and will be valid for 10 years. The companies offering DTH service will have to have an Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the number of companies that can apply for the DTH license.
So, what's the buzz? Will DTH finally be the one that rules?
The cable system is well entrenched in India and is showing quite rapid growth. If DTH had come to India in 1996-97 (like Star had originally attempted), then it could have made a significant breakthrough.
Europe is an example of this. DTH developed there before cable and now controls nearly 80 per cent of the total satellite television subscriber base. But in US, cable rules because it came before DTH.
DTH will definitely cut into the existing cable user base. It will make the local cable operator less important and take business away from him. It will give consumers greater choice.
But it is likely to be an up market premium product and most middle class households will stick to cable.
