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Tag: DTH operators

  • DTH players react to Budget 2015

    DTH players react to Budget 2015

    MUMBAI: Some time before the presentation of the budget, the Direct-To-Home (DTH) Operators’ Association of India had sent its wish list to the Ministry of Information and Broadcasting (MIB) asking for certain demands to be fulfilled for the sector. The Budget 2015 saw a strong no-no with an increase in service tax from the current 12.36 per cent to 14 per cent and the demands not being fulfilled. Additionally, the date for the roll out of Goods and Service Tax (GST) has been announced.

    Expressing his displeasure on the same, Videocon d2h CEO Anil Khera tells Indiantelevision.com, “The DTH and cable sector were ignored in the budget. The hike in the service tax will further be passed on to the consumers through the packs. Nothing from the wish list was taken into account.”

     

    It may be recalled that the wish list had asked the service tax for DTH services to be put in the negative list of service tax. It had also demanded for infrastructure status for the DTH sector.
     
    When asked for his reaction to the budget, DTH Operators’ Association president and Dish TV CEO RC Venkateish opines that he is happy that the GST date has been announced, while it was already known that the increase in service tax would be increased in two stages. “While the announcement of the GST date i.e 1 April, 2016 will have benefits, for the short term one would pay that extra one per cent, which is not material. The GST implementation will give us a substantial reduction in overall taxes,” he says.

     

    Echoing his thoughts on the Budget 2015, Tata Sky CEO Harit Nagpal says that he was hoping that at least one of the two taxes that the industry pays to the Centre and the State would be absorbed, which did not happen. “We are the only industry that pays service tax to the Centre and entertainment tax to the state,” says Nagpal. 

     

    According to him, this long standing demand to negate one of the taxes was not granted and instead what one saw was the service tax being hiked. Differing with Khera’s point of view, Nagpal informs that the increase will not be passed on to the subscribers through an increase in price packs as the amount is minimal which is one per cent.

  • TRAI to issue consultation paper on HD channel subscription charges?

    TRAI to issue consultation paper on HD channel subscription charges?

    MUMBAI: The year 2015 could not be as welcoming as the direct to home (DTH) platforms would be expecting it to be. As per PTI  reports, the Telecom Regulatory Authority of India (TRAI) is looking at reviewing the freedom it has given to the DTH operators in deciding subscription charges for high definition (HD) channels.

    While the first HD channel was launched in 2010 with Movies Now HD, general entertainment channels (GECs) like Star Plus and Zee TV too launched their HD channels in 2011. Today there are about 40 HD channels in the country and DTH operators charge a premium price for them compared to normal standard definition (SD) channels.

     “TRAI is mulling reviewing forbearance regime on HD channels. Consultation paper on the same will be floated next month,” reports PTI. The decision has been taken as the regulator does not find much difference between the SD and HD viewing experience.

     “There is also little difference in the number of advertisements between the two,” the report adds.

     

  • DTH sector in India to grow sales at 19 per cent CAGR between 2013-18: MPA

    DTH sector in India to grow sales at 19 per cent CAGR between 2013-18: MPA

    MUMBAI: India’s direct-to-home (DTH) satellite pay-TV sector remains a growth oriented industry with significant potential for strategic and financial investors, according to a new report published by Media Partners Asia (MPA).

     

    The report, entitled ‘India DTH Market Overview–Key Dynamics & Future Outlook’, forecasts that India’s DTH pay-TV sector will generate revenues of $ 4.04 billion by 2018, a CAGR of 19 per cent from $ 1.71 billion in 2013 and by 2023 the sector will generate revenues of $ 5.6 billion. In an earlier report, MPA had said that the DTH active subscriber base will increase from 37 million in 2013 to 60 million by 2018 and 70 million by 2023. This implies a 39 per cent share of the overall market by 2023 and a 56 per cent share of the digital pay-TV market.

     

    DTH operators have been working together to improve the overall economics for the business by reducing the amount of free viewing offered to new subscribers and recalculating the incentives dealers receive for renewing subscriptions.

     

    ARPU growth, according to the report, will be partially limited as DTH expands nationally, with low-income homes coming into the mix, although MPA sees a greater contribution from high- ARPU HD subscribers. According to the report, HD represented 6.9 per cent of the total active DTH base in 2013; which MPA expects to grow to 16.1 per cent by 2018 and to 20.1 per cent by 2023. MPA sees total DTH ARPUs expanding from $ 4.0 per month in 2013 to $ 5.7 by 2018.

     

    Digital TV (DTV) has started to gain widespread acceptance across consumer households in India, driven largely by the growth of DTH satellite pay-TV platforms. Data from MPA indicates that DTV penetration, including digital cable and digital free and pay DTH platforms, has grown from less than 1 per cent in 2006 to 46 per cent as of 31 December 2013.

     

    The six DTH pay-TV operators in the market have in aggregate contributed to 23 per cent penetration as of 31 December 2013, providing a level of market leadership due to superior capitalisation and a stronger consumer focus built around product strength and innovation, including tiering, HDTV and DVR services.

     

    “DTH operators have been working together to improve the overall economics for the business by reducing the amount of free viewing offered to new subscribers and recalculating the incentives dealers receive for renewing subscriptions. ARPU growth will be partially limited as DTH expands nationally, with low-income homes coming into the mix, although we also see a greater contribution from high-ARPU HD subs. HD represented 6.9 per cent of the total active DTH base in 2013; we expect this to grow to 16.1 per cent by 2018, and to 20.1 per cent by 2023,” said MPA India VP Mihir Shah.

     

    Key market trend highlights of the report:

     

    • Rational focus: Operators are increasingly focused on growing profits as opposed to solely increasing volume, often at the expense of profitability. As a result, operators have increased their basic prices, while at the same time reducing the trade margin arbitrage by Rs 200-250 to minimise rotational churn. Although subscriber additions post October 2011 have witnessed some slowdown. According to MPA both the quality of subscribers and ARPUs will continue to improve going forward.

     

    • DTV mandate: MPA believes that the implementation of mandatory cable digitisation by the government will be an important catalyst for growth in the DTH sector. DTH operators are relatively well positioned due to the strength of their B2C businesses (as opposed to B2B approaches amongst cable MSOs) and their experience and investment in tiering, subscriber management and billing and sales and marketing. In addition, as part of its reforms, the government has now permitted international companies to own up to 74 per cent of cable and DTH platforms.

     

    • HD penetration: As per MPA’s report, HD penetration will grow significantly in the future, rising from less than 7 per cent of active DTH subscribers currently to over 20 per cent by 2020. MPA’s estimates are based on benchmarks in the US, UK, Latin America and Southeast Asia. In the UK, incumbent DTH operator BSkyB currently has more than 50 per cent of its subscriber base adopting HD. Malaysia’s Astro has also demonstrated laudable rates with 49 per cent penetration at present on its DTH platform. Increase in HD channel offering is critical for growth in HD penetration. However for some of the mature global operators, MPA sees HD penetration as a percentage of total subscribers capping out at 60-65 per cent.

     

    • Upside capped by tax and regulation: A ~30 per cent drain of gross DTH subscription revenues – comprising a 12 per cent service tax, 8-10 per cent entertainment tax and a 10 per cent license fee – continues to hamper the industry’s ability to improve profitability. Although industry stakeholders are lobbying the government to change the license fee terms and make deductions based on adjusted gross revenue, these are yet to be finalised. A further cap on future industry upside comes in the form of spectrum issues resulting from the absence of an open skies policy that would allow DTH operators to directly source transponder capacity from foreign satellite operators, as opposed to the current system of going through the Indian Space Research Organisation’s (ISRO’s) commercial arm Antrix.

     

    • Consumer proposition, technology key to future subscriber additions: Ramping up subscriber additions as analog cable subscribers turn to digital will largely depend on the consumer proposition offered by the DTH and cable operators. Gaining an increased share of new subscribers will hinge on designing and marketing innovative and simple packaging structures, bearing in mind that analog cable subscribers are used to an all-you-can-eat single package structure. Technology will also be key, as compression standards and middleware deployed by operators will play a crucial role, though not immediately visible, in differentiating service offerings and providing HD and value added services (VAS) such as interactive services, 3D and VoD.

  • Chip maker Broadcom gets chirpy about India

    Chip maker Broadcom gets chirpy about India

    KOLKATA:  It’s got India on its mind.  Most Indian cable TV and DTH operators are pretty familiar with the  US-headquartered Broadcom Corp. The company provides the chips that go into the set top boxes and also for enterprise networking and mobile connectivity functions. What they probably don’t know is that it has invested more than 15 per cent of its global R&D budget in its Indian R&D centre. And that its Indian MD Rajiv Kapur is extremely gung-ho about the potential in India as its television ecosystem digitises. 

     

    And that’s despite the fact that there’s not been a flood of orders from those wanting to supply STBs to Indian  cable TV ops and MSOs.

     

    Says he:  “Right now activity is more on the technology front. The actual orders are expected to come before the end of the deadline (31 December 2014). And hence I can confidently say further growth will come. Even in the current situation, India’s revenue is being noticed from the global perspective.”

     

    Surely. With India’s transition from analog to digital television service, many consumers need new, full-featured set-top boxes (STBs) for home viewing. This represents a major opportunity for regional operators and set-top box manufacturers, as only a portion of the roughly 100 million STBs in consumers’ homes have already been digitised according to published government figures. Adding to this potential for set-top box growth is the trend of consumers adding more than one television to their home, as well as natural consumer upgrade cycles from standard definition to high definition, and so on.

     

    Meanwhile Kapur  points out that the company has invested -and is continuing to invest –  in India to develop complete solutions and also for support infrastructure.  “Our core competency is in chip making. But we have walked the extra mile by designing the complete hardware and software part. We have put many more features in the chip,” says Kapur.  

     

    Demand for those chips will come in the not to distant future. For  now, he says, “We see an immediate demand for standard definition STB “Zappers,” which are cost-effective and easy to deploy to new and current subscribers. In time, STBs with advanced features may either be imported or manufactured regionally due to their lower volume demand.”

     

    Endorsing his view is Vadodara-based VKJ Advisory CEO Vinod K Jhaveri who adds that Broadcom could and should take advantage of the current government’s stated policy to encourage indigenous production of chips in order to save the nation precious forex and make the silicon affordable. “Companies like Broadcom Corp have a great future as they can – in  the years to come – become a hub for Asia. They can use their  facilities to export  chips and semi conductors to countries like China and other Asian counterparts.”

  • TDSAT to hear all six DTH ops plea on licence fee on 6 May

    TDSAT to hear all six DTH ops plea on licence fee on 6 May

    NEW DELHI: The government has assured the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that it will not pressurise the private direct-to-home (DTH) operators with regard to its demand for payment of licence fee until the next date of hearing, which is on 6 May.

     

    This assurance was given to the Tribunal, which had yesterday morning given directions to the government to respond to petitions by Tata Sky, Reliance Big TV and Sun Direct to respond within three weeks,

     

    However, the Tribunal decided to hear the matter again today when the other private DTH operators – Dish TV, Videocon d2h and Airtel Digital TV – mentioned the issue before the Tribunal yesterday afternoon and also pointed out that Clause 3.1.1 in Reliance’s licence was different from the corresponding clause in the licence granted to Tata Sky. 

     

    Following this, the Tribunal had recalled its order with regard to Reliance and said ‘we regret this material difference was not pointed out to us when the case was taken up for preliminary hearing.’

     

    But counsel for Reliance Big TV today assured the Tribunal that the relevant clause had been subsequently changed and that the DTH operator stood on the same footing as other operators.  

     

    Although the government opposed the petitions when they came up for hearing, the Tribunal stood by its earlier order of hearing the matter on 6 May and said the private operators could file rejoinders, if any, within one week of the government’s reply.

     

    Even as the petitioners have alleged that the demand by the Information and Broadcasting Ministry is contempt of court as a matter in this regard is pending in the Supreme Court, I and B Secretary Bimal Julka had told indiantelevision.com that the apex court had not issued any stay order.

     

    However, conscious that the TDSAT or the Supreme Court may be moved in the matter, a caveat had been filed by the Ministry in this regard.

     

    The Ministry had recently sent a notice to the six private DTH Operators with regard to licence fee dues amounting to Rs 2,066 crore. 

     

    According to the notice sent early last week, the six private operators have been asked to pay the amount within fifteen days. 

     

    However, most of the operators contacted by indiantelevision.com said they had cleared the dues of licence fee. 

     

    The operators say the licence fee as demanded under the rules is on gross revenue (GR) whereas they have been asked to pay the fee on the basis of Actual Gross Revenue (AGR). The operators have said the fee should be only on subscription revenue and not on allied earnings such as dividend and interest income. 

  • TDSAT to hear DTH ops plea on licence fee on 6 May

    TDSAT to hear DTH ops plea on licence fee on 6 May

    NEW DELHI: The petition by the three major direct-to-home (DTH) operators challenging the notice of the government for clearing arrears of licence fees will be heard on 6 May by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

     

    When counsel for the petitioners mentioned the petition before the Tribunal, counsel for the government said the DTH operators will not be pressurised in this regard till the case is taken up for hearing.

     

    The government has been asked to file a reply within three weeks and the three petitioners – Tata Sky, Sun Direct TV and Reliance Big TV – will file rejoinders, if any, within one week of that.

     

    Even as the petitioners have alleged that the demand by the Information and Broadcasting Ministry is contempt of court as the matter in this regard is pending in the Supreme Court, I and B Secretary Bimal Julka had earlier told indiantelevision.com that the apex court had not issued any stay order.

     

    However, conscious that the TDSAT or the Supreme Court may be moved in the matter, a caveat had been filed by the Ministry in this regard.

     

    The Ministry had recently sent a notice to the six private DTH operators with regard to licence fee dues amounting to Rs 2,066 crore.

     

     According to the notice sent early last week, the six private operators had been asked to pay the amount within fifteen days.

     

     However, most of the operators contacted by indiantelevision.com said they had cleared the dues of licence fee.

     

     The operators say the licence fee as demanded under the rules is on gross revenue (GR) whereas they have been asked to pay the fee on the basis of Actual Gross Revenue (AGR). The operators have said the fee should be only on subscription revenue and not on allied earnings such as dividend and interest income.

  • DTH operators wooing subscribers into HD

    DTH operators wooing subscribers into HD

    MUMBAI: A recent study in the US revealed that nearly 60 per cent of homes in the country have one or more high-definition (HD) TV sets; a significant rise from just 35 per cent five years ago.

     

    In India too, HD TV viewing is on the upswing – though not as big as in the US yet – with two DTH operators having recently added a slew of HD channels to their bouquet to take the total tally of HD channels to over 25. So much so, DTH operators are confident that the demand for HD TV will only grow from here onward.

     

    “More than 50 per cent of new customers are buying HD TVs and the other 50 per cent, who are buying SD boxes, will after a while come and say that they have upgraded to HD TV sets. Would you have thought of this scenario two years ago?” says Tata Sky CEO Harit Nagpal.

     

    Videocon d2h CEO Anil Khera echoes similar thoughts. “Close to 8 per cent of our subscribers have taken HD packs. Interestingly, almost double of these have taken our HD boxes in anticipation of their future transition to HD services,” he says.

     

    Not so long ago, Videocon had declared it crossed 10 million subscribers.

     

    To leverage the growing interest in HD, DTH operators have come up with innovative techniques including advertisements, pricing and packaging of HD channels to make customers opt for their HD service packs

     

    For instance, Dish TV ensures it does not have floating subscribers, so only if a customer opts for an HD pack will he/she be provided with an HD set top box (STB). Customers are not allowed to jump between SD and HD packs.

     

    On the other hand, Tata Sky subscribers have to pay just Rs 125 above the pack price to avail both SD channels and the channels in the pack which have an HD version. From 1 November, 2013, Tata Sky has stopped ordering SD boxes and is offering HD boxes at the same price as SD boxes at Rs 2,000 per piece. Currently, it has about 2 million subscribers with an HD connection.

     

    Like Tata Sky, Videocon d2h too is offering SD and HD boxes at almost the same price. While an SD box costs Rs 1,990 with a one month free view, the HD box costs Rs 2,000 without a free view. “Subscribers are taking to HD viewing very well. They are increasingly opting for bigger screens at home and HD feeds for a better viewing experience. We expect that in the next few years, HD viewing will account for almost 20 per cent of the total viewership,” says Khera.

     

    For Airtel Digital TV, it is about striking a balance between the HD and SD consumers. 

     

    More importantly, HD subscribers imply more revenue. “Revenue from an HD subscriber today is almost 10 per cent. However, this has potential to grow up to 35 to 40 per cent of our revenue base in a few years’ time,” says Khera.

     

    According to Nagpal, as and when regional channels start broadcasting in HD, the subscriber base may go up. “HD packs increase as channels get added. Initially, only knowledge and sports channels were available in HD. The next level will be with regional channels. Sun Network has already taken the initiative,” he says.

     

    With Dish TV, currently, 7 per cent of its revenues come from HD subscribers. However, Dish TV CEO RC Venkateish feels that the price of an HD TV set, which is nearly three times that of an SD TV set, could be a deterrent.

     

    While it’s a long road ahead, DTH operators anticipate that the future will see HD TV viewing increase by a substantial amount, thus also increasing Average Revenue per User (ARPU). Khera feels it is possible that in a few years from now, Videocon (like Tata Sky) may stop selling SD boxes altogether.

  • TRAI asks DTH operators to provide interoperability of STBs

    TRAI asks DTH operators to provide interoperability of STBs

    MUMBAI: In September this year, the licence of India’s oldest DTH provider Dish TV was to expire after a period of 10 years and then there was no provision for an extension. On 1 October the regulator came out with a consultation paper and on 14 November it issued a supplementary paper. 
    With the last date to provide feedback approaching, TRAI had an open house discussion (OHD) on 9 December with the leading DTH providers give suggestions on the consultation and supplementary papers released by TRAI.

    During the OHD, TRAI chairman Rahul Khullar said that set top boxes (STBs) should be inter-operable for the end consumer, either commercially or technically. He also told operators that the viewers should have the option to use the same STBs if they wished to change their service provider. But if operators found it to be a challenging prospect then they should be given an option of returning the STBs to their provider in exchange for money that could help them buy a new one.

    The Information and Broadcasting (I & B) Ministry had directed TRAI to set up new guidelines for obtaining DTH licenses in India. The OHD between TRAI and DTH players was to frame new recommendations regarding the same.

    During the OHD, DTH operators were asked to give views on issues such as entry fee and quantum thereof, licence fee, conditions governing cross holdings and period of extension. 

    Representatives from the industry said that new licences should be given for a reasonably long duration and the government should have the power to cancel these if operators violate rules.

    Khullar conveyed to operators that once the new licence rules come into effect, they will have two options: one, to either continue under their earlier terms and conditions till their licence expires or two, to change to the new system.

    Khullar has told DTH operators that they can submit any additional points till Friday.

  • Unlocking new opportunities via satellites: SES Sr VP Commercial Asia-Pacific and the Middle East Deepak Mathur

    Unlocking new opportunities via satellites: SES Sr VP Commercial Asia-Pacific and the Middle East Deepak Mathur

    Indian TV viewers and Internet surfers never had it so good. Seven DTH operators, 500 plus TV channels, MSOs and cable ops who are upgrading the ageing analogue infrastructure, broadband services – have all given them a slew of choices. And all of this is becoming possible thanks to satellite communications and broadcast services being offered by satellite operators.

    Consider: India is now Asia‘s leading DTH market and by 2016 will account for 72% of the region‘s DTH subscribers. Between 2012-2016, seven Indian DTH operators are expected to add more than 25 million subscribers. Broadband users (fixed, wireless, wimax, 3G) are expected to climb to about 140 million from around 30 million in end-2011 over the same period. Of the 30 million achieved so far, around 13.3 million are fixed line broadband. But the targets set by the Indian telecoms regulator under the National Broadband Plan are higher: 75 million (by end 2012) and 160 million (by 2014). Mindboggling numbers, right?

    The fact is that by leapfrogging costly fiber installs with the reach, reliability and immediacy of satellite, innovative providers are satisfying pent up demand for quality content and connectivity at a record pace.

    In six short years, DTH operators have exceeded 30% of India‘s multichannel pay TV market. DTH subscribers stand at about 45 million today. India is now the largest DTH bastion in the world and is setting the example for other emerging markets. Much of the success has been driven by high quality services and programming at affordable prices. Indian subscribers, for example, can get about 220 channels for three to four dollars a month. That includes 15 to 18 HD channels, VOD and DVR, along with distance learning and religious content choices.

    Then recently, the much-maligned-in-the-past cable TV sector is racing to meet the deadline set by the government to digitize the top four metros of Delhi, Mumbai, Chennai and Kolkata by mid-2012. Once they meet that, the next challenge will be to digitize the entire national cable TV infrastructure by 2015, leading to the total switch off of analogue signals. Clearly a battle royale is on between DTH and cable TV to gain supremacy in India‘s 150 plus million TV homes.

    Satellites are playing a lead role in the transformation of India‘s media and entertainment market. In partnership with ISRO [the Indian Space Research Organization], SES is committed to helping India‘s DTH and telecom service providers introduce a next generation of access to television and information for the masses.

    On the Horizon

    Switch back to the year 1999. Number crunchers and analysts expected that there would be just two operators with three to five million subscribers. But a liberal DTH policy encouraged three times as many players, who are investing in what could be one of the best dividend paying pay TV markets in the world. Low monthly fees, inexpensive set-top boxes and access to 200 to 300 quality channels have combined to make DTH an entertainment and information value and staple in India.
    The explosive DTH growth has taken virtually everyone by surprise and serves as a business model for other emerging markets.

    Cable operators looking to win in this market would take this opportunity to grow ARPU by offering more channels, including broadband, DVR and video on-demand. With currently 10 – 15 real HD channels being served currently, we expect this figure to increase in 2012, offering greater premium choices to India‘s sophisticated and growing middle class.

    Satellite‘s success isn‘t limited to the impressive rejuvenation of Indian television. VSAT network operators are having an equally important impact on the region, delivering high-speed broadband and life-changing, web-based services. Government agencies and businesses, from banks to gas stations, in India‘s biggest towns and cities and most remote villages and farms are increasingly relying on satellite to connect, compete and prosper.

    Unlocking a Brighter Future

    The lack of information can be a debilitating barrier to success and opportunity. India‘s farmers, for example, have long sold their wheat and cotton harvests to middlemen without real-time access to the fair market value of their hard-earned crops. Satellite enables portals such as e-Choupal to link remote farmers with up-to-the-minute crop prices, pest control tips, planting demos, even sharing examples of best practices aimed at driving ingenuity, sustainability and profitability. As a result, rural connectivity has enabled many of India‘s farmers to better prepare in managing and building a better future.

    Along with access to real-time market information, satellite is also changing the way people interact with their local government. Digitalisation is playing a key role in driving productivity in remote locations, connecting villages and linking them to crucial government programmes to enhance security, efficiency and even remote learning. Today, thanks to streamlined, internet-based solutions via satellite services, getting a birth certificate in an Indian village no longer has to take weeks or months. It‘s a web transaction that requires mere minutes.

    The potential of satellite communication abounds especially with the evolving demands of India‘s new global economy. SES is privileged to be able to play a role in enabling India‘s new economy.

    In conjunction with ISRO, SES satellites are home to the largest VSAT networks in India, with more than 120,000 VSAT terminals. These networks carry a wealth of important services, from telemedicine, e-governance initiatives, agricultural data, banking and stock information, as well as sophisticated business connectivity applications, all aimed at fueling local, regional and global access.

    DISH TV, Asia‘s largest DTH provider with over ten million subscribers, and Bharti AirTel, India‘s largest telco with more than six million subs, are contributing immensely to India‘s new information age on SES satellites. Our prime orbital slots at 95 degrees and 108 degrees east are home to India‘s premier DTH neighborhoods, which is enabling premium global news and entertainment to flow into Indian homes at mass market prices.

    India‘s DTH leaders have become experts in the field, as they grapple with distributing content in 7,000 towns, cities and villages at two to four dollar ARPUs, undeterred and strategically focused on the bigger picture. They see a brighter future of more channels, choices, advanced services and revenue growth. SES is sharing global knowledge and new ideas with our DTH provider customers across India in an effort to help them realise their ambitions, while incubating the lessons from India into other emerging markets.

    Trends to Watch

    There are some exciting trends gaining traction that are sure to drive growth and optimism across the region. High resolution and regional content will greatly enhance the viewer experience with increasing relevance.

    Look to HD to gain significant traction over the next three to four years, as DTH audiences grow more discerning in their preference for HD, offering better picture quality over standard definition programming. HD content will help to usher in tiered programming packages, enhancing consumer choices and driving up monthly subscription rates.

    With 22 official languages and eleven of them commanding well over 30 million speakers, tailored regional content will further entrench DTH throughout India and provide an additional layer of premium choices over the next three to seven years. This means that communities across the diverse fabric of our Indian society can be equipped with real-time information, relevant to them in their distinct regional environment. With the trend towards new channels and viewing shares moving away from the mainstream national channels to regional channels, consumers will increasingly be more discerning, demanding tailored local news, but also be exposed to advertising content relevant to their lifestyle, grooming a next generation of savvy consumers. The cost of advertising on these channels is expected to be significantly lower than national channels hence increasing their appeal to local advertisers. As regionalized content and ad campaigns gain momentum, this will be a tremendous driver of revenue spurring local economic growth.

    With over 30 million ethnic Indians living and working overseas in search of new challenges and opportunities, this also presents a golden opportunity for Indian broadcasters to reach out and connect the wider expatriate Indian communities. With a proven track record in building DTH communities around the world, SES can share its expertise and experience to be a strategic partner for Indian broadcasters looking to scale new heights and connect with the wider Indian community globally.

    Market Commitment

    By 2016, India will have 141 million pay TV homes, or 84% of total TV homes. Pay TV households will create revenues of US$10.3 billion. Including DTT and free DTH, India will have 117 million digital households, or 70% of total TV homes, by 2016.

    With such impressive growth rates coupled with increasing competition, it has become increasingly important to provide back up with high quality replacement and expansion capacity to match the growth ambitions of our key customers. SES understands this and is committed to the long-term success of India‘s DTH and VSAT markets with our prime orbital slots at 95 degrees east and 108 degrees east.

    Under the guidance of ISRO, SES is focused on enabling the delivery of a wealth of new services, from quality HD to localized programming and access to information for all. Satellite is enabling a special delivery of new opportunities and a brighter and connected future across India, and SES is honored to be part of this historic transformation, enabling DTH and VSAT operators to explore new possibilities and expand on their unprecedented success.

    *Figures quoted are from Informa Telecoms & Media and Media Partners Asia 2011 reports.

  • Trai conducts digitalization round table

    Trai conducts digitalization round table

    MUMBAI: Foloowing the rollout of conditional access system (Cas) in parts of Delhi, Mumbai and Kolkata, broadcast regulator Trai has conducted a round table meeting on digitalization of television transmission and voluntary implementation of Cas.

    In order to take the process of digitalization forward and also to explore the possibility of voluntary implementation of CAS in other parts of the country, Trai conducted a round table meeting on 1 February in Delhi with various stake holders.

    Experts as well as representatives of consumer organizations, multi system operators (MSOs), cable operators, DTH operators, broadcasters and equipment manufacturers participated in the round table. In the meeting there was a broad consensus about the need for digitalization and addressability. The participants raised certain issues in order to arrive at a feasible road map. The major issues that were raised by the stakeholders relates to fiscal rationalization, encouragement of domestic manufacturing, changes in the regulatory regime (especially the need for price control), ensuring affordability and choice and exploring alternative models for voluntary Cas.

    A small sub group has been constituted in order to discuss issues relating to digitalization and voluntary introduction of Cas. The discussions with the stake holders would continue in future also.s