Besides, if and when the 2nd phase of CAS is implemented, Tata Sky and Dish will not be the only players vying for consumer attention. Sun TV’s DTH arm, Sun Direct, has already spread its wings in the north Indian market, the stranglehold for these two biggies. Says Tony D’Silva, COO, Sun Direct, “We still have issues in getting appropriate content to appease the North Indian market, but there are far greater South Indians in North India than North Indians in South India, which is a huge market that we are looking at.” Besides, players like Reliance and Airtel (with their respective DTH services) are keenly waiting in the wings for this second round of CAS. Given enhanced competition, the fight for subscriber attention will be supreme and players would have to shell out big money on promotions, further underlining the red on their balance sheets.
Be that as it may, the fact remains that the DTH market in India is hopelessly under-potential as of now, with m
erely 5-6 million subscribers (including viewers of Direct TV, offered by DD), in a country of over 71 million cable and satellite homes. Says Prakash Bajpai, President and CEO, Home and Enterprise Business, Reliance Communications, “There’s space for all. Competition has always been good for the industry. See what it has done for the telecom sector,” adding that the more the number of players, the more faster the entire segment will grow.
Agreed competition has played a vital role in making India the second largest telecom market till date, but the government has played an active role to make telephony popular and affordable. If DTH too wants to trot on the same path, political will and support would be a major prerequisite. In fact, the DTH Operators Association of India – DOAI (a la COAI) – has been designed to be that combined voice of the industry, which will enable them to lobby to improve their lot.
The Telecom Regulatory Authority of India (TRAI) has also come to the aid of the sector, with a suggestion that broadcasters should offer a la carte system to DTH operators, allowing customers to subscribe to individual channels (as opposed to bouquets), making it more cost effective. TRAI also suggests that broadcasters charge 50% less from DTH operators in comparison to cable in non-CAS areas. If implemented, DTH players are likely to become more cost competitive vis-à-vis analog viewing. Until then, the colour will remain red, and not out of choice.
Be that as it may, the fact remains that the DTH market in India is hopelessly under-potential as of now, with m
erely 5-6 million subscribers (including viewers of Direct TV, offered by DD), in a country of over 71 million cable and satellite homes. Says Prakash Bajpai, President and CEO, Home and Enterprise Business, Reliance Communications, “There’s space for all. Competition has always been good for the industry. See what it has done for the telecom sector,” adding that the more the number of players, the more faster the entire segment will grow.Agreed competition has played a vital role in making India the second largest telecom market till date, but the government has played an active role to make telephony popular and affordable. If DTH too wants to trot on the same path, political will and support would be a major prerequisite. In fact, the DTH Operators Association of India – DOAI (a la COAI) – has been designed to be that combined voice of the industry, which will enable them to lobby to improve their lot.
The Telecom Regulatory Authority of India (TRAI) has also come to the aid of the sector, with a suggestion that broadcasters should offer a la carte system to DTH operators, allowing customers to subscribe to individual channels (as opposed to bouquets), making it more cost effective. TRAI also suggests that broadcasters charge 50% less from DTH operators in comparison to cable in non-CAS areas. If implemented, DTH players are likely to become more cost competitive vis-à-vis analog viewing. Until then, the colour will remain red, and not out of choice.
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