Contents
List of Figures ................................................................................................................................ 5
List of Tables ................................................................................................................................. 5
Chapter 1 ....................................................................................................................................... 6
Research Methodology: .........................................................................................................................6
Research Objective: ...................................................................................................................................................... 6
Primary Objective: .................................................................................................................................................... 6
Secondary Objective: ............................................................................................................................................... 6
Research Design: ........................................................................................................................................................... 6
Data Collection & Sources: ........................................................................................................................................... 7
Chapter 2....................................................................................................................................... 8
Introduction ...........................................................................................................................................8
Product Profile .............................................................................................................................................................. 8
Definition .................................................................................................................................................................. 8
DTH Service ............................................................................................................................................................... 9
Product History ........................................................................................................................................................... 10
Global Market ......................................................................................................................................................... 10
Indian Market ......................................................................................................................................................... 18
A Practical Perspective ........................................................................................................................................... 21
Substitutes Of The Product ................................................................................................................................... 23
Product Technology And Service Processing ....................................................................................................... 32
Industry Life Cycle .................................................................................................................................................. 37
Chapter 3...................................................................................................................................... 39
Global Scenario .................................................................................................................................... 39
Global ........................................................................................................................................................................... 39
Global Players .............................................................................................................................................................. 39
Total Companies Profiled: 72 (Including Divisions/Subsidiaries - 80)................................................................... 39
Global Major Players .............................................................................................................................................. 40
Cable Vs. DTH - An Overview Of The World Scenario ................................................................................................ 41
PPV (Pay-Per-View) ..................................................................................................................................................... 47
Opportunities For Indian Vendors .............................................................................................................................. 49
Chapter 4 ..................................................................................................................................... 50
Financial Analysis ................................................................................................................................. 50
Revenue Structure: ..................................................................................................................................................... 50
Cost Structure: ............................................................................................................................................................ 51
Chapter 5...................................................................................................................................... 54
PEST Analysis: ...................................................................................................................................... 54
Political Factors ........................................................................................................................................................... 54
Opposition By Political Parties: .............................................................................................................................. 54
Regulatory Role Of Government ........................................................................................................................... 55
Rules For Licensing ................................................................................................................................................. 55
FDI Cap In DTH To Go Up To 74% ........................................................................................................................... 58
Government Stability ............................................................................................................................................. 58
Economic Factors ........................................................................................................................................................ 60
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Currency Stability ................................................................................................................................................... 60
GDP (Gross Domestic Product).............................................................................................................................. 61
Inflation Rate .......................................................................................................................................................... 62
GDP Based On PPP ................................................................................................................................................. 63
Interest Rate: .......................................................................................................................................................... 64
Budget Impact On DTH Industry ........................................................................................................................... 65
Social Factors .............................................................................................................................................................. 66
Consumer Attitudes And Opinions ........................................................................................................................ 66
Brand, Company, Technology Image .................................................................................................................... 66
Buying Access And Trends ..................................................................................................................................... 67
Age Distribution And Lifestyle Trend .................................................................................................................... 67
Family Form And Population Shift ......................................................................................................................... 68
Cultural Implications Of DTH ................................................................................................................................. 68
Technological Factors ................................................................................................................................................. 70
DTH Technology ..................................................................................................................................................... 70
Govt. Course Of Action Towards Technology ....................................................................................................... 71
Technology Incentives ........................................................................................................................................... 72
About Ku-Band ....................................................................................................................................................... 73
Satellite Introduction ............................................................................................................................................. 77
Satellite Footprint .................................................................................................................................................. 77
Multi Dwelling Unit ................................................................................................................................................ 81
Michel Porter’s Five Force Analysis ...................................................................................................... 83
Threats Of New Entrants ............................................................................................................................................ 83
Access To Distribution Net-Work: ......................................................................................................................... 83
Advertising & Marketing Activity: ......................................................................................................................... 83
Regulation & Norms: .............................................................................................................................................. 83
Capital Requirement: ............................................................................................................................................. 84
Cost Design: ............................................................................................................................................................ 84
Industry Growth: .................................................................................................................................................... 84
Government Policy: ................................................................................................................................................ 84
Threats Of Substitutes ................................................................................................................................................ 86
Determinants Of Substitution Threat .................................................................................................................... 86
Costs Of Switching To Substitutes: ....................................................................................................................... 86
Availability Of Substitute Products:....................................................................................................................... 87
Bargaining Power Of Suppliers .................................................................................................................................. 88
Satellite: .................................................................................................................................................................. 88
Set-Top Box: ........................................................................................................................................................... 88
Backward Integration: ........................................................................................................................................... 89
Supplier Switching Cost: ........................................................................................................................................ 89
Forward Integration: .............................................................................................................................................. 89
Bargaining Power Of Buyers....................................................................................................................................... 90
Buyer Switching Costs: ........................................................................................................................................... 90
Brand Awareness: .................................................................................................................................................. 91
Availability Of Substitute Products:....................................................................................................................... 91
Buyers’ Purchase Frequency: ................................................................................................................................. 91
Innovative Services: ............................................................................................................................................... 91
Inter Firm Rivalry ......................................................................................................................................................... 93
No. Of Player In Industry: ....................................................................................................................................... 93
Market Share: ......................................................................................................................................................... 94
Industry Growth: .................................................................................................................................................... 95
Untapped Market: .................................................................................................................................................. 95
Promotional Activities: ........................................................................................................................................... 95
Exit Barrier: ............................................................................................................................................................. 96
Chapter 6 ..................................................................................................................................... 98
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Driving Forces ...................................................................................................................................... 98
Internet Technology Applications: ............................................................................................................................. 98
Long Term Industry Growth: ...................................................................................................................................... 98
Product Innovations: .................................................................................................................................................. 98
Technological Changes: .............................................................................................................................................. 98
Regulatory Influence: ................................................................................................................................................. 99
Changing Societal Concerns, Attitude & Lifestyles: .................................................................................................. 99
Key Success Factors ........................................................................................................................... 100
Innovative Services: .................................................................................................................................................. 100
Distribution: ............................................................................................................................................................... 100
Innovative Marketing: ............................................................................................................................................... 101
Technology: ............................................................................................................................................................... 101
Strategic Factors: ............................................................................................................................... 102
Exploit Bottlenecks: .................................................................................................................................................. 102
Move First: ................................................................................................................................................................. 102
Exploit Market Niche: ............................................................................................................................................... 102
Chapter-7 ................................................................................................................................... 104
Portfolio Models ................................................................................................................................ 104
BCG Matrix................................................................................................................................................................. 104
Strategies Of Players: ........................................................................................................................................... 105
Suggested Strategy: ............................................................................................................................................. 108
GE9 Cell Matrix .................................................................................................................................. 111
Industry Attractiveness: ........................................................................................................................................... 113
Business Strength: .................................................................................................................................................... 114
ADL (Arthur D. Little) Matrix .............................................................................................................. 116
Competitive Position................................................................................................................................................. 116
Industry Maturity ...................................................................................................................................................... 116
Diamond Model ................................................................................................................................. 119
Government .............................................................................................................................................................. 119
Rules For Licensing: .............................................................................................................................................. 119
Trade Restrictions And Tariffs ............................................................................................................................. 120
Foreign Direct Investment: .................................................................................................................................. 121
Government Stability ........................................................................................................................................... 122
Government Policy: .............................................................................................................................................. 122
Firm Strategy, Structure And Rivalry ....................................................................................................................... 123
No. Of Players And Market Share: ....................................................................................................................... 123
Industry Growth: .................................................................................................................................................. 123
Untapped Market: ................................................................................................................................................ 123
Promotional Activities: ......................................................................................................................................... 124
Exit Barrier: ........................................................................................................................................................... 124
Demand Condition .................................................................................................................................................... 124
Related And Supported Industry ............................................................................................................................. 125
Related Industry: .................................................................................................................................................. 125
Supporting Industry: ............................................................................................................................................ 126
Factor Conditions ...................................................................................................................................................... 128
Geographical......................................................................................................................................................... 128
Investment............................................................................................................................................................ 129
Raw Material: ....................................................................................................................................................... 129
Implication: ........................................................................................................................................................... 129
Value Chain Of Industry ...................................................................................................................... 130
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Value Chain Analysis: ................................................................................................................................................. 130
Value Chain ................................................................................................................................................................ 131
OT Analysis ........................................................................................................................................ 135
Opportunity: .............................................................................................................................................................. 135

Huge Untapped Market : ........................................................................................................................... 135

Govt. In Favors Of Industry: ....................................................................................................................... 135

New Products Comes In The Market:........................................................................................................ 135

Company Have Own Cable Subscriber: ..................................................................................................... 136

Technology Development And Innovative Services: ............................................................................... 136

Market Developments: .............................................................................................................................. 136

Geographical, Export, Import: ................................................................................................................... 136

Industry Or Lifestyle Trends: ...................................................................................................................... 137
Threats ....................................................................................................................................................................... 138

Substitutes .................................................................................................................................................. 138

New Technology In The Market: ............................................................................................................... 138

Low Switching Cost: .................................................................................................................................. 138

Government Policy/Regulations: ............................................................................................................... 138

IT Developments: ........................................................................................................................................ 139

Competitor Intentions: ............................................................................................................................... 139

Seasonality, Weather Effects: .................................................................................................................... 139

Lack Of Possibility Of Growth: ................................................................................................................... 139
Annexure ................................................................................................................................... 141
TRAI Regulation ................................................................................................................................. 141
Bibliography............................................................................................................................... 150
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List of Figures
Figure 1 Arther C. Clarck Model for DTH service. .................................................................................. 9
Figure 2 A Worldwide Major DTH Service Provider MAP by Pro Brand International Inc. ................ 10
Figure 3 Arthur C. Clark: futurist and author ..........................................................................................11
Figure 4 An IPTV Connection Diagram of BSNL IPTV Service ............................................................. 28
Figure 5 DTH Industry Life Cycle (2003-2009) ......................................................................................37
Figure 6 A Worldwide Broadcasting Service Area of Major Players ................................................... 41
Figure 7 Revenue Structure, data taken from ACE Equity application Software. Which Show Major
portion of Subscription ........................................................................................................................ 50
Figure 8 Cost Structure of the industry playes (approx.) .................................................................... 51
Figure 9 Exchange Rate ........................................................................................................................ 60
Figure 10 GDP (Gross Domestic Product) ............................................................................................. 61
Figure 11 Inflation Rate ......................................................................................................................... 62
Figure 12 GDP based on PPP ................................................................................................................. 63
Figure 13 Interest Rate .......................................................................................................................... 64
Figure 14 Zee Network Satellite Service Area. .................................................................................... 78
Figure 15 SUN Network Service Area ................................................................................................... 79
Figure 16 The Multi Dwelling Unit Service to Multiuser....................................................................... 81
Figure 17 BCG Matrix ............................................................................................................................104
Figure 18 Industrial Life Cycle .............................................................................................................. 116
Figure 19 ADL (Arthur D. Little) Matrix ................................................................................................ 117
Figure 20 Michel Porter’s Diamond Model ......................................................................................... 119
Figure 21 DTH Service Supply System ..................................................................................................131
List of Tables
Table 1: Global Players .......................................................................................................................... 39
Table 2 : Market Share ........................................................................................................................... 94
Table 3: Players Subscription Figures ................................................................................................ 104
Table 4: GE9 Cell Matrix Position ....................................................................................................... 113
Table 5: No. Of Players And Market Share ...........................................Error! Bookmark not defined.
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Chapter 1
Research Methodology:
Research Objective:
Primary Objective:
An In Depth Study Of DTH Industry In India.
Secondary Objective:
 To Find Out Over All Market Condition Of DTH Industry.

To Study The Political, Economical, Social, And Technological Factors Affecting Indian DTH Industry.

To Compare The Market Competition Among Different Players.

To Find Out Opportunity & Threats In Indian DTH Industry.

To Study The Reason Behind Growth Of DTH Market.
Information Needs:
 Product History.
 Related To Substitute Product.
 Application Of Product.
 Global Position Of The Market.
 Information About Different Brands In India.
 Various Companies’ Market Share.
 Macro Environmental Factor.
 Size And Growth Rate Of The Market And Economy.
 Opportunity And Threats.
Research Design:
 Descriptive Study
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Data Collection & Sources:
 Based On Secondary Data:
 Newspaper- Business Standard, Times Of India, Economic Times
 Magazines- Fortune India, Business World, Dalal Street, Capital Market, Marketing
Mastermind, TV Veopar Journal.
 References Books – Strategic Management, Marketing Management, Service Marketing,
Strategic Marketing.
 Websites.- Www.Mib.Nic.In , Www.Indiabroadband.Net
Limitation:
 Data Is Based On Secondary Sources. So, It May Be Insufficient.
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Chapter 2
Introduction
Product Profile
Definition
The Direct-To-Home (DTH) Service:
In Technical Point Of View: “A Digital Satellite Service That Provides Television Services Direct To
Subscribers Anywhere In The Country. Since It Makes Use Of Wireless Technology, Programs Are
Sent To The Subscriber's Television Direct From The Satellite, Eliminating The Need For Cables
And Any Cable Infrastructure.”1
In Customer Point Of View: “The Reception Of Satellite Programs With A Personal Dish In An
Individual Home. And An Individual Set Top Box Empowering You To Pick & Choose You Bundles
Of Choice And Pay For What You Watch.”2
The Original Concept Of Satellite Television Started Over 64 Years Ago Almost, Direct To Home
(DTH) Satellite Receivers Were Developed In The Early 1980’s.
DTH Offers Better Quality Picture Than Cable TV And Stereophonic Sound Effects. It Reaches Even
Those Places Where Cable Is Not Available. This Service Is Also Providing Value-Added Services
That Include Tale-Text, Dual Audio For Channels, Parental Control, Electronic Program Guide And
Radio Channels.
DTH Has Also Allows For Interactive TV Services Such As Movie-On-Demand, Internet Access,
Video Conferencing And E-Mail. If You Want To Record Your Favorite Programs You Can Get A
Free DVR (Digital Video Recorder) Receiver. Main Disadvantage Of DTH Is Fading Of The Signal
Due To Rains. Heavy Rains May Result Into Outage For A Few Minutes In The DTH Signal.
Direct Broadcast Satellite (DBS) Is A Term Used To Refer To Satellite Television Broadcasts
Intended For Home Reception, Also Referred To More Broadly As Direct-To-Home Signals.3
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DTH Service
Direct-To-Home (DTH) Service Refers To Distribution Of Multi-Channel TV Programs In Ku Band By
Using A Satellite System For Providing TV Signals Direct To Subscribers' Premises.
DTH Provides Subscribers The Advantage Of Geographical Mobility Meaning Thereby That Once A
Customer Purchases DTH Hardware, He/She Can Continue To Use The Same Unit Anywhere In
India.
DD DIRECT+ Is India's First And Only Free To Air (FTA) Direct-To-Home Service Being Provided By
Prasar Bharati. Apart From Prasar Bharati - A Public Service Broadcaster, M/S Dish TV India Ltd.
M/S Tata Sky Ltd, And M/S Sun Direct TV Pvt. Ltd. M/S Reliance Big TV Pvt. Ltd., M/S Bharti
Telemedia Ltd. M/S. Bharat Business Channel Ltd. And Videocon India Pvt. Ltd. Have Also Been
Granted License For Operating DTH Service.
The Eligibility Conditions Provide For Total Foreign Equity Holding, Including FDI/ NRI/ OCB/ FII, In
The Applicant Company Not To Exceed
74%, And Within The Foreign Equity, It
Also Provides That Applicant Company
Must
Control
Have
Indian
With
Management
The
Majority
Representatives On The Board As Well
As Chief Executive Of The Company
Being Resident Indians.
Figure 1 Arther C. Clarck Model for DTH service.
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Product History
Global Market
Figure 2 A Worldwide Major DTH Service Provider MAP by Pro Brand International Inc.
Global Timelines To The Future4
While Today's Hot DTH Marketplace Makes For An Exciting Story, This Is An Industry With A
History Unknown To Most. It Is A Story Of An Industry Which Was Never Supposed To Exist. An
Industry Born Out Of The Genius Of A Stanford University College Professor And Publicized By
Ham Radio Conversations. An Industry That Defied All Odds To Grow From The Backyards Of
Techies And Early Adapters To Today's Multi-Billion Dollar First-Line Competitor To The Cable
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Monopoly In America. And, It Is The Story Of An Industry Comprised Of Thousands Of
Entrepreneurs Who Kept The Dream Alive During Long Periods Of Traumatic Political And
Marketplace Upheaval.
Come With Us Now As We Look At The People, The Events, And The Evolution Of The Technology.
1945 Arthur C. Clark's Dream
The Entire Satellite Communications Industry -- Not Just
The DTH Segment -- Can Trace Its Common Heritage To
One Man. That Man Is The Noted Futurist And Author
Arthur C. Clark. Long Before Clark Was To Take Us To
The Farthest Reaches Of The Universe In His
Legendary Epic "2001: A Space Odyssey," He Penned A
Paper Entitled, "Extraterrestrial Relays." Published In
Figure 3 Arthur C. Clark: futurist and author
October 1945 By "Wireless World Magazine," This Article Advanced A Theory That World-Wide
Communications Could Be Accomplished By Placing Three Space Platforms Into Special Orbits
22,300 Miles Above The Equator. Clark Explained That At This Altitude, The Platforms Would Orbit
The Earth At Exactly The Same Speed As The Earth Turned -- Thus They Would Appear To Remain
Motionless In Space When Viewed From The Ground.
Obviously, Clark's Paper Was Far Ahead Of Its Time. The World Had Yet To See The Widespread
Development Of TV -- Let Alone The Ability To Place Any Object, Much Less A Large
Communications Platform, Into Orbit. The World Would Have To Wait A Dozen Years Before The
First Man-Made Object, Sputnik, Found Its Way Into Orbit. This Basketball-Sized Satellite Carried A
Transmitter Which Delivered A Non-Stop Morris Code-Based Political Message Touting The
Technological Superiority Of The Soviet Union. Spurred Into Action, America Embarked On One Of
The Largest Technology Development Programs In History. The $20-Plus Billion Space Program
Saw The United States Not Only Put Men On The Moon, But Also Lead To The Development Of
Intelsat, An International Consortium Which Deployed A Network Of Geostationary
Communications Satellites. In Fact, The Very First Live Global Television Broadcast - The
Realization Of Clark's Dream - Came As Neil Armstrong Stepped Onto The Moon In July Of 1969.
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By The Mid-1970's, This Same Satellite Technology Was Being Widely Utilized By Private
Companies Such As Western Union, AT&T, And RCA To Support The Rapidly Growing
Telecommunications Needs Of The United States. In Addition To Telephony/Data Circuits And
Program Links For Television Networks, The Geostationary Satellite Was About To Play A Key Role
In The Growth Of The Cable Television Industry -- At The Time A Nascent Industry Involved In The
Delivery Of Over-The-Air TV Signals To Subscribers.
HBO Moves To Satellite, Taylor Howard Builds A Dish
In 1976, Premium Programr HBO Made History When It Initiated Satellite Delivery Of
Programming To Cable Headends With The Heavyweight Boxing Battle Dubbed, "The Thriller
From Manila." The Move By HBO Was Followed Quickly By Ted Turner, Who Began Uplinking His
Heretofore Unknown Atlanta UHF-TV Station, Now Known As WTBS. Turner Branded It America's
Station, And The Superstation Was Born. 1977 Saw Pat Robertson Launch The First SatelliteDelivered Basic Cable Service -- CBN Cable Network -- The Predecessor Of The Family Channel.
While All This Was Being Done With Cable Operators In Mind, Stanford University Professor
Emeritus H. Taylor Howard Was Also Busy In His Garage. Howard, A Lead Scientist On Several
Interplanetary NASA Probes Along With Key Communications Systems On The Apollo Program,
Was Soon To Build The First Consumer DTH System In America. In Turn, Howard Also Became The
First Consumer To Actually Pay (Or Attempt To Pay) HBO Directly For Its Signal (The Check Was
Returned With A Letter Explaining That HBO Only Sold Its Signal To Cable Operators).
How Did The World Find Out About Taylor Howard's Invention? Well, As An Amateur Radio
Operator, He Shared His Knowledge With Fellow "Hams" Around The World. This Was Backed Up
With A Simple How-To Manual On Satellite TV Published By Professor Howard. As The Techies
Began To Grasp The Capabilities Of Satellite TV, A Small Group Of Entrepreneurs Moved From
Hobbyist To Businessperson. These Pioneers -- Many Operating Out Of Their Garages -- Gave Birth
To An Industry Which Sold Approximately 5,000 Systems In 1980. Each Of These Systems,
Boasting An Antenna 12 Feet Or More In Diameter, Fetched A Whopping $10,000. The Journey
Towards The DTH Industry Of Today Had Begun.
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1981 - 1985 Dish Fever Grows
The DTH Industry Grew Quickly From Its Modest Beginnings. As Each New System Was Installed,
The Word Of Mouth Advertising Grew For The Industry. Obviously The Early DTH Systems Were
Very Large, Thus The Simple Act Of Having One Installed Drew The Attention And Interest Of The
Neighborhood. Once Non-Dishowners Experienced The Diversity Of Satellite-Delivered
Programming (New Cable Services Were Now Launching At A Rapid Pace) Coupled With The
Unsurpassed Audio And Video Quality Offered By A DTH System, The Fever Began To Spread
Across The Land.
For Satellite TV To Move Beyond The Techies And Early Adapters, Into The Mainstream Consumer
Marketplace, Three Things Had To Happen: 1) The Price Had To Be Reduced; 2) The Reliability And
User Friendliness Of The Hardware Had To Increase Significantly And; 3) The Legality Of Dish
Ownership By Private Citizens Had To Be Clearly Established. Driven By The Entry Of Several
Larger Manufacturers, The First Two Conditions Were Met Rather Easily. The Price Of A Complete
DTH System Rapidly Fell From The $10,000 Level In 1980 To Under $3,000 By The Beginning Of
1985. At The Same Time, The Overall Reliability Of The Hardware Improved Dramatically And The
Early Systems Which Were Really Little More Than Experimental Units Transitioned Into Stylish
State-Of-The-Art Microprocessor-Controlled Video Tuners Comparable In Size To A VCR. As For
The Legal Status Of The DTH Industry, That Issue Was Settled In 1984 When President Ronald
Reagan Signed The Cable Act In To Law. This Legislation Clarified The Right Of American Citizens
To Own A Satellite Dish, And It Also Contained Provisions Establishing The Legal Structure By
Which Program Providers Could Require Those Dish Owners To Pay For Reception Of Their
Services.
The DTH Industry Will Remember 1985 For Its Rollercoaster Ride Of Highs And Lows. From A
Shipment Perspective, The Chart Clearly Shows That Satellite TV Was Hot -- Some 735,000
Systems Were Produced In The United States. Some Months In The Latter Part Of The Year Saw In
Excess Of 80,000 Units Sold. An Industry Which Began The Year With Less Than A Million
Consumers Ended The Year With Over 1.7 Million Satisfied Customers. Indeed, To The Outside
Observer, The DTH Industry Appeared To Be One Of The Hottest Technology Bets Available. In
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Fact, This Success Was Setting The Industry Up For A Dramatic Tumble -- One Which Would Take
Years To Overcome.
With The Cash Registers Ringing Wildly In Satellite Dealerships Across The Country, The Industry
Literally Found Itself Out Of Control. Hundreds Of New Dealerships Were Opening Every Month -With Many Of These New Retailers Having Little, If Any True Understanding Of The Product
And/Or Long Term Commitment To The Business. The Satellite Dish Had Become The Pet Rock
Industry Of The Year.
All Of This Was Happening In An Environment Where Programming Was Free -- The Consumer
Made A One-Time Hardware Purchase And Enjoyed Well In Excess Of A Hundred Channels Of High
Quality Video, Including Every Basic And Premium Cable Service, At No Charge. As 1985 Wore On,
The Signs Of Change Began To Emerge. Several Cable Programming Services Announced Plans To
Encrypt Their Satellite Feeds Under The Authority Granted To Them By The 1984 Cable Act.
Clarity In Hindsight Tells Us That The DTH Industry Should Have Prepared Itself And Its Consumers
For The Sea Change Which Was Coming. However, For Any Number Of Reasons, Most Retailers
Either Refused To Believe That Signal Scrambling Would Ever Occur -- Or Chose To Ignore The
Train Which Was Bearing Down On Those Selling The Promise Of "Free TV Forever."
January 15, 1986.The DTH World Changes Forever
January 15, 1986 Began Like Any Other Day In America. The Lines Were Long At Satellite
Dealerships, And Sales Were Good. As The Day Wore On, Suddenly The Video On HBO Was
Replaced By Unrecognizable Lines And The Audio Was Gone. At That Very Moment, The
Hardware-Based DTH Industry Transitioned Into One Which Would Be Driven By The Sale Of
Software - Programming.
The Effect Of Scrambling One Service Out Of Many Dozens -- Albeit A High Profile Service Such As
HBO -- Should Have Been A Short-Term Manageable Market Development, Especially In Light Of
The Fact That Decoders (Then Manufactured By MA/COM, Later To Become Part Of GI) For The
Signal Were Available, And HBO Stood Ready To Sell The Service To Any DTH Consumer. This Was
Not To Be However, As The News Of Scrambling Hit The National Media With A Message That,
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"....The Skies Have Gone Dark For Dishowners." This Highly Inaccurate Message Was Then
Reinforced By Large Scale Negative Advertising Campaigns By Cable Operators Which Depicted
Satellite Dishes As Expensive And Ugly Contraptions Which Now At Best Would Make For
Olympic-Sized Birdbaths.
The First Thing To Happen Was The Wholesale Defection Of Retailers Who Had Entered The
Business In 1985 In Search Of The Easy Sale. This Was Followed By A Bitter Internal Industry Battle
Over Scrambling Which Soon Saw Existing DTH System Owners Drawn Into The Fight To Preserve
The Free Airwaves. Worse Yet, The Industry Allowed This Battle To Spread To New Consumers As
They Entered Dealer Showrooms To Consider The Purchase Of A Dish. It Even Gave Birth To Three
Nightly Satellite-Delivered Talk Radio Networks Dedicated To Discussing/Debating The Changing
Industry. The Political Fireworks Generated By These Shows Demonstrated The Fact That The
Industry Was Approaching A Meltdown.
The Impact On Sales Of New DTH Systems Was Dramatic. From 735,000 Systems In 1985, The
Industry Plummeted To 225,000 Units. An Estimated 60 Percent Of All Retailers In The Industry On
January 1, 1986 Were Gone As The Year Came To A Close. Fire Sales Dominated The Marketplace
As Hardware Manufacturers And Distributors Either Left The Business Or Fought To Generate
Sufficient Cash Flow To Hang On. Clearly, The DTH Industry Was Rapidly Approaching A Fork In
The Road On The Way To Survival Or Oblivion.
December 2, 1986 The First Signs Of Unity
For The Home Satellite Industry To Survive, It Was Clear To Many Company Executives That The
Political Disagreements Had To Somehow Give Way To Conscience Building And Industry Unity On
Key Long-Range Marketplace Issues. This Process Began On December 2, 1986 In Anaheim, CA
With The Founding Banquet For The Satellite Broadcasting And Communications Association
(SBCA).
The SBCA Was Formed As A Result Of The Merger Of Two Trade Organizations -- The Society Of
Private And Commercial Earth Stations -- (SPACE) And The Direct Broadcast Satellite Association
(DBSA). SPACE Had Represented Primarily The Manufacturers, Distributors, And Retailers Of DTH
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Systems. DBSA Was Comprised Of Companies Such As RCA Americom, AT&T, Hughes, Comsat,
And USSB -- All Of Which Were Interested In High Power DBS.
The New Organization, Which Was Led In Its First Year By Co-Chairman Taylor Howard Of SPACE
And Dr. John Clark Of RCA Americom Faced The Immediate Challenge Of How To Restore Unity To
A Fractured Industry. They Quickly Moved To Create A Board Of Directors Which Would Offer
Equal Representation To All Segments Of The DTH Industry -- Including The New Players -- Satellite
Programmers. For The First Time, These Programmers Would Have An Opportunity To Directly
Participate In The Decision Making Of An Industry They Served -- Something They Were Not
Afforded In The Cable Trade Organizations Of The Day.
As The New Satellite Trade Association Took Shape During The Early Part Of 1987, The First Sparks
Of Optimism Returned To The Satellite Business. Little Did The SBCA Leaders Know That Perhaps
The Industry's Biggest Challenge Ever Would Surface In A Matter Of Months.
1987 - 1993 Piracy Dominates DTH
Shipments Of DTH Hardware Rebounded In 1987 From The Depths Of The 1986 Slump. This
Upswing In Sales Was Driven By The Advent Of Integrated Receiver/Decoders Which Combined
The Decoder Module With The Receiver Unit, And Perhaps Even More Importantly, The Arrival Of
Program Packages. The Grouping Of Encrypted Services (All Of Which Had Chosen To Use The
Videocipher II (VC II) Scrambling System) Into Attractively Priced Packages Was A Major Step
Forward In The Sale Of Programming To The Consumer Who Previously Was Required To Make
Several Phone Calls To Purchase Individual Programming Services.
Just As Stability Was Returning To The Industry, The Videocipher II System Came Under Heavy
Attack From Hackers. Within Months Of The First Rumors Of A Break In The System, The Worst
Fears Of The Industry Were Realized As Signal Piracy Exploded Across The Nation.
The Impact Of Piracy On The Growth Of The Legitimate Industry Was Significant. In Years Such As
1990, The DTH Industry Shipped Approximately 380,000 New Systems, But Only 77,553 Net VC II
Authorizations Were Recorded. Thus, Not Only Were New Systems Being Pirated At Time Of
Installation, Many Of The Existing Systems In The Field Was Also Being Modified To Steal
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Programming Services. Ultimately, Of The 1.9 Million Videocipher II Units Manufactured Between
1986 And The Middle Of 1990, Less Than 500,000 Were Legally Receiving Services.
Clearly, Satellite Signal Theft Posed A Serious Threat To The Industry's Access To Programming. In
1987, SBCA Leadership Was Contacted By The Executives Of The Major Hollywood Movie Studios
To Discuss The Emerging Problem. The Message From Hollywood Was Clear - While It Strongly
Supported The DTH Industry And Pledged To Work Closely With The SBCA, The Piracy Issue
Required Immediate Action. Failure To Effectively Deal With The Issue Would Leave The Movie
Studios With No Choice But To Discontinue Licensing Its Movies For Distribution To DTH Owners.
With This Message In Mind, The Industry Embarked On A Two-Front Effort. General Instrument
Corporation (Which Had Now Acquired The Cable Home Communications Division Of MA/COM)
Commenced A Series Of Electronic Countermeasures To Shut Down Illegally Modified Boxes
While Also Beginning Work On A Second Generation Scrambling System Dubbed The Videocipher
II Plus (VC II+). The SBCA Took The Lead In The Public Fight Against Signal Theft Through The
Creation Of An Anti-Piracy Task Force. This Unit, Funded By Member Companies, Was Comprised
Of Several Retired Senior FBI Agents And A Former Federal Prosecutor. They Organized A
Nationwide Network Of Private Investigative Firms To Collect Evidence Of Illegal Activity On The
Part Of Retailers. This Evidence Then Served As The Basis For Law Enforcement Raids And
Civil/Criminal Action In Numerous States Across The Country. The Task Force Also Engaged In
Extensive Industry Education And Public Relations Efforts To Explain The Dangers Of Satellite
Signal Theft.
The Summer Of 1990 Saw The Introduction Of The VC II+ System. Plans Were Then Developed For
The Orderly Transition To The New Encryption System And The Shutdown Of The Old VC II Data
Stream. The DTH Industry Realized That Legitimate Consumers Must Be Protected During The
Move To A New Scrambling System, And Every Consumer Who Was Legitimately Subscribing To
Programming Services Received A VC II+ Decoder Module At No Cost.
With Its Legal Customers Accommodated, The Programming Services Then Began Transitioning
Exclusively To The New System In The Fall Of 1992. The Movement Resulted In The Dramatic Rise
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In Net Decoder Authorizations In 1993 And 1994 As Pirate Consumers Were Forced To Purchase
New Modules And Begin Paying For The Services They Desired.
1994 Ready For DBS
The DTH Industry Had Emerged From Its Second Major Crisis, And Now, This Industry Which Had
Begun So Humbly, Stood On The Threshold Of A New Era, The Dawn Of DBS. While 1994 Marked
The Arrival Of Medium And High-Power Ku-Band DBS Service, It Was Also Represented One Of
The Best Years Ever For The C-Band Industry.
With Piracy Effectively Under Control, And Consumer Interest In Satellite TV Growing As A Result
Of Initial Marketing Of DBS Hardware, C-Band Sales Boomed. In August Of 1994, Some 85,000
Systems Were Shipped, Representing Perhaps The Best Single Month In The 14 Year History Of
The Industry. As 1994 Drew To A Close, Over 600,000 New Systems Had Been Shipped, And
Nearly 2.2 Million Consumers Were Authorized For C-Band DTH Service. While C-Band Activity Has
Slowed, And The Total Authorized Households Had Dropped, C-Band Still Represents Almost 2
Percent Of All Television Households. And With The Introduction Of 4DTV, The Prospects Of The
C-Band Segment Of The DTH Industry May Improve.
As The DTH Industry Celebrates The 20th Anniversary Of Taylor Howard's Invention, It Is Clear
That Satellite TV Is Here To Stay. The Industry Survived Not Only Because It Has A Good Product
Which Offers Unique Programming At A Good Value -- But Because Many Of Those Early Pioneers
Simply Wouldn't Let The Dream Slip Away. Those Pioneers Are Now Leading This Industry Into
The Digital Information Age Of 21st Century.
Indian Market
Indian DTH Space Is A Rapidly Rising Industry. Since The Time, It First Arrived In India, More And
More New Players Are Joining The Bandwagon. Because Of Arrival Of New Entrants, This Industry
Has Become Very Competitive Which Ultimately Results In Customers Having More Benefits And
Options.
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Indian Timelines:
December 1996:
The United Front Government Under Prime Minister Deve Gowda Issues A Notification Saying
That A License Has To Be Obtained For Ku-Band DTH Services. Many Companies, Including Star TV,
Apply For A License. But Government Delays The Process.
26th March 1997:
Star TV Holds A Press Conference In Delhi Detailing Their DTH Plans. Star TV Asia CEO Gary Davey
And Others Attend The Function Where A Live Demo Is Given.
3rd April 1997:
The Then Communication Minister Beni Prasad Verma Signs A Policy Setting The Terms And
Conditions For Granting Licenses To DTH Players. Two Holidays Follow And It Cannot Be Notified.
11th April 1997:
Gowda Government Falls As Congress Withdraws Support.
May 1997:
I&B Minister Jaipal Reddy Introduces The Broadcast Bill In Parliament Which Gets Referred To A
Joint Parliamentary Committee.
July 1997:
The United Front Government Under Prime Minister I.K. Gujaral Issues Another Notification
Banning Maintaining Or Keeping Equipment Capable Of Receiving TV Signals Over 4800 Mhz (KuBand) Till A Comprehensive Broadcast Law Is Passed.
November 1997:
Gujaral Government Falls.
December 1998:
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I&B Minister Pramod Mahajan With The BJP-Led Government Says The Issue Of DTH Cannot Wait
Till The Passage Of The Broadcast Bill. A Decision Has To Be Taken Soon.
January-February 1999:
The Prime Minister Atal Behari Vajpayee Sets Up A Group Of Ministers (Gom), Comprising
Ministers Of I&B, Communications, Defence, Finance And Home, To Come Up With
Recommendations On DTH.Promod Mahajan Said That DTH Is As Powerful As A Nuclear Bomb.
February-April 1st Week 1999:
Lot Of Study Papers On DTH Compiled For Gom, Which Fails To Meet Formally Even Once. But
Hopes Of Favorable Recommendations Abound As I&B Minister Admits In Private He Hopes To
Make An Announcement In Parliament Once It Reassembles After A Fortnight's Recess.
17 April 1999:
The BJP-Led Government Loses The Vote Of Confidence On The Floor Of The Lower House Of
Parliament.
October 1999:
National Democratic Alliance Comes To Power In The Centre
18 October 2000:
Jaitley Sworn In As I & B Minister Give Indication As They Will Move Fast On The DTH Front,
Though Cautiously. DD Wants An Exclusive License For Two Years.
15 March 2000:
Murdoch Pushes For DTH Service In India
10 April 2000:
Jaitley Said Prime Minister A B Vajpayee Had Constituted A Committee Chaired By The Union
Minister To Work Out Details Of Direct-To-Home (DTH) Services And Uplinking Facilities.
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4 October 2000:
Sushama Swaraj Again Takes On As I & B Minister, Promises Television-For-Family
16 October 2000:
Star TV's James Murdoch, Bruce Churchill And Peter Mukherjee Meet Swaraj
29 October 2000:
Gom Committee Headed By Home Minister L K Advani Finalises Most Of The Recommendations
For Lifting DTH Ban. Law Minister Arun Jaitley Asked To Frame Legal Ramifications On DTH.
30 October 2000:
Gom Committee Recommends Opening Up DTH. I & B Minister Sushama Swaraj Say That She Will
Submit A Note To The Indian Cabinet For A Final Decision.
November 2000:
Cabinet Approves Lifting DTH Ban. Issues Notification.
A Practical Perspective
The Initial Excitement In Nov. 2000 Has Largely Been Transformed By A Realistic Look At The
Guidelines For DTH Service In India.
The Key Features Of The Guidelines Are:
1. The Total Foreign Investment Cannot Exceed 49 Per Cent (Now Its 74%).
2. No Broadcast Or Cable Company Can Own More Than 20 Per Cent.
3. The Applicant Company Will Have To Pay An Entry Fee Of Rs 100 Million, Pay 10 Per Cent
Annual Revenue And Execute A Bank Guarantee Of RS 400 Million For The Duration Of The 10
Years License.
4. Violation Of License Conditions Can Include Revocation Of License And / Or Penalty Of Up To
RS 500 Million.
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5. The Licensee Will Have To Set Up An Indian Earth Station In 12 Months And Provide Access To
Various Content Providers On A Non-Discriminatory Basis.
6. The Set Top Boxes Required To Receive The Encrypted Signals Will Have To Be Open Standard
Boxes.
7. The DTH License Cannot Be Used For Other Modes Of Communication Including Voice Fax,
Data Internet Unless Specific Licenses For These Value Added Services Have Been Obtained From
The Competent Authority.
On The Face Of It, The DTH Regulations Are Quite In Tune With Media Policy Of The Ruling
Alliance. However, There Are Many Pitfalls In The Policy Some Of Which Are Outlined Below.5
1. A Modest Entry Fee Of RS 100 Million And A Bank Guarantee Of RS 400 Million Has Been
Mandated With No Restriction On The Number Of DTH Operators In The Country. However, The
DTH Operator Will Have To Pass On 10 Per Cent Of Revenues As Annual Fees To The Government.
It Is Assumed That This Is Gross Revenue Without Deduction Of Expenses And Is Not 10 Per Cent
Of Net Profit Which Would Have Been More Equitable.
2. The Period Of License Is For 10 Years And Non Exclusive. However, There Is No Provision For
Automatic Renewal Of The License After 10 Years Based On Performance Of The DTH Operator.
3. No Broadcasters Or Cable Television Company Is Allowed To Own More Than 20 Per Cent Of
DTH. This Has Supposedly Been Done To Prevent Emergence Of Vertically Integrated Monopoly.
This Is Despite The Worldwide Move Towards Convergence And Even The Provisions Of The
Convergence Bill!
4. The DTH Operator Shall Have To Follow The Advertising And Program Code Of Doordarshan
And Maintain A Video Record For 90 Days Of Advertisements And Programs. A DTH Operator
Who Does Not Own Content Will, Like The Present Cable Operators, Be Solely Responsible For
The Implementation Of Advertising And Program Code. No Liability Has Been Put On The Content
Providers At All.
5. Apart From Open Architecture For Stbs, The Government Has Mandated That DTH Operators
Should Not Discriminate Between Various Channels Wanting To Get On The Network. This Is A
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Welcome Development As It Will Enable Content Providers To Be Available On All Competing DTH
Platforms.
6. I&B Ministry Will Be The Licensing Authority Until One Is Set Up. There Is No Mention In This
Notification About The Broadcast Regulatory Authority As Mandated By The Supreme Court In
Cricket Association Of Bengal Judgment In 1995.
7. The DTH Operator Is Bound To Carry All Prasar Bharati Channels On Most Favorable Terms
Offered To Any Other Channel. No Mention Is Made About The Present Requirements Under The
Cable Act To Carry A Minimum Three Doordarshan Channels On Prime Band, Despite The Fact
That Carriage Of All Prasar Bharati Channels May Not Be Commercially Desirable. Of Course, It Will
Not Be Easy To Convince Any Government To Leave It To The DTH Operator To Carry Only Specific
Prasar Bharati Channels.
8. The DTH Operator Is Allowed To Carry Value Added Services Such As Fax, Voice Or Broadband
As Long As It Gets Clearance From The Right Competent Authority. While The Government Is
Willing To Allow Data, Fax And Broadband Service From The DTH Operator, The Stipulations Of
Getting Clearance From The Right Competent Authority Without Creating A Single Window
Approach Will In Effect Delay Provision Of Value Added Services By The DTH Operator And Is
Against The Provisions Of The Convergence Bill Planned To Be Introduced In Parliament In May
2001.
The Only Positive Announcement After The Government Notification So Far Has Been From
Videsh Sanchar Nigam Limited (VSNL) Which Plans To Set Up A Neutral DTH Facility Using Its Large
Number Of Earth Stations To Give Opportunity To Broadcasters Wishing To Join A Common
Platform.
Substitutes Of The Product
1.1CABLE OPERATOR
Definition
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Cable Operator Means Company Providing Access To Cable And Satellite Channels Within A Given
Region Or Area.
Cable Service
A Private Cable Operator (Also Known As PCO) Is A Private Small Independent Cable Company
Competing Directly With Multi System Operators. Pcos Typically Offer Services To Multi-Family
Dwellings, Gated Communities, Hotels And Other Small Businesses. In Some Small Municipalities
The City May Be A PCO.6
1.2 IPTV
Definition
Internet Protocol Television (IPTV) Is A System Through Which Digital Television Service Is
Delivered Using The Architecture And Networking Methods Of The Internet Protocol Suite Over A
Packet-Switched Network Infrastructure, E.G., The Internet And Broadband Internet Access
Networks, Instead Of Being Delivered Through Traditional Radio Frequency Broadcast, Satellite
Signal, And Cable Television (CATV) Formats.7
Internet Protocol Television (IPTV) – Is Like Cable TV, But It Uses A Broadband Connection To The
Internet Instead Of Cable For The Delivery Of Video Services. IPTV Works On Your TV With A SetTop Box That Accesses Channels, Subscription Services, And Movies On Demand. The Advantage
Over Cable Is That The Communication Can Be Two-Way, Making Customized Programming And
Interactive Media Possible Without An Additional Connection.8
IPTV Services May Be Classified Into Three Main Groups: Live Television, Time-Shifted
Programming, And Content (Or Video) On Demand. It Is Distinguished From General InternetBased Or Web-Based Multimedia Services By Its On-Going Standardization Process (E.G., ETSI)
And Preferential Deployment Scenarios In Subscriber-Based Telecommunications Networks With
High-Speed Access Channels Into End-User Premises Via Set-Top Boxes (STB) Or Other CustomerPremises-Equipment (CPE)
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Internet Protocol Television (IPTV)9
The Policy On Internet Protocol TV (IPTV) Was Announced On 8th September This Year By The
Government. This Opened Up The Doors For Another Mode Of Distribution Of Signals By Close To
400 Permitted Satellite TV Channels Through The Telecom Networks.
State-Owned Telecom Companies Bharat Sanchar Nigam Ltd. (BSNL) And Mahanagar Telephone
Nigam Ltd (MTNL) Are Not Generally Considered Formidable Competitors To Private Sector
Players. But A New Offering Franchised To A Delhi-Based Company Could Change Things — Not
Perhaps In The Telecom Space But For Direct-To-Home (DTH) Service Providers. The Challenger:
IPTV Or Internet-Protocol TV.
This Gives A New Digital Visual Experience To The Indian Viewer With Added Value To Cater To
The Ever-Persisting Demand Of The Subscribers For New And Interactive Services. This Also
Provides Increasing Opportunities To Create Diverse Business Models Both For The Broadcasters
As Well As For The Platform Service Providers. The Policy On IPTV Offers Greater Clarity On The
Issues Involved, And Both The Telecom Operators And The Cable Operators Are Able To Provide
An IPTV Service Which Is To Be Regulated As Per Their Respective Licensing Conditions.
Under The Policy, The Content Will Be Regulated As Per The Program And Advertisement Codes
As Prescribed Under The Cable Act, Which Takes Care Of Several Apprehensions Including Those
With Respect To Provisioning Of Obscene Content. It Defines The Liability For Violations Of
Content Codes And How They Will Be Dealt With And Takes Care Of The Concerns Relating To
National Security. The Policy Also Enables Multi System Operators (Msos) And Cable Operators
Along With Broadcasters To Provide Content To Telecom Licensees Providing IPTV Services. The
Policy Also Enables IPTV Service Providers To Create Its Own Content Except For The News And
Current Affairs. With The Government Committed To Expanding The Broadband Penetration, IPTV
Is Slated To Play A Big Role In Distribution Of Content.
In Standards-Based IPTV Systems, The Primary Underlying Protocols Used Are:
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
Live TV Uses IGMP Version 2 Or IGMP Version 3 For Ipv4 For Connecting To A Multicast
Stream (TV Channel) And For Changing From One Multicast Stream To Another (TV Channel
Change).

VOD Is Using The Real Time Streaming Protocol (RTSP).

N-PVR (Network-Based Personal Video Recorder) Is Also Using The Real Time Streaming
Protocol (RTSP).
IPTV Players
MTNL IPTV10
Mahanagar Telephone Nigam Ltd (MTNL) Introduced Concept Of IPTV (Internet Protocol
Television). It Was Named As Aksh-Tel, Which Was A Combination Of IPTV And V Spyk Which Is A
Video Phone Calling Service. MTNL Started This Service In Collaboration With Aksh Optifibre Ltd.
In This Strategic Tie-Up, MTNL Would Be Providing Infrastructure Whereas The Partner Company
Will Be Focusing Upon Content Delivery Network.
Subscribers Of This Service Will Have The Facility Of IPTV, VOIP And 50 MB Of Broadband Services
At Relatively Low Monthly Rental Of Rs 499. There Won’t Be Any Extra Charge On Set Top Box
And Services. Users Will Also Be Getting 50 Fee Calls In VOIP. This Service Will Come Quite Handy
For MTNL Broadband Subscribers. V Spyk Is Actually A Real Time Videophone Calling Service
Which Enables Real Time Communication. It’s Between Two Users On A More Personalized Level.
Company Is Expecting To Reach 4 Million Customers In Two Major Cities Of Delhi And Mumbai.
In IPTV Technology, Telephone Lines Are Used To Provide TV Programming To Viewers. IPTV Will
Be Offering 102 Channels Apart From Broadband And Telephone Services. Other Attractive
Features Are Video On Demand And Time Shift Television. MTNL Has Additional Advantage Of
Being A First Mover And Having Four Million Landline Users At Its Disposal. IPTV Will Be Relatively
Cheaper Than DTH Services. Also, Because Of It Being A New Technology There Are Many
Opportunities To Spread It And Experiment With It For The Purpose Of Improving Services In The
Long Run. Users Will Also Be Delighted To Have All Three Major Services Of Telephone,
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Broadband And Television Coming From A Single Line. There Are No Chances Of Rain Playing
Havoc With IPTV Connections. Another Distinct Possibility Is Option Of Watching Television
Channels On The PC Without A TV Tuner. IPTV Is Also The Only Service To Provide Time Shift TV
Feature.
Service Features11
TV Service Which Is Delivered Using IP (Internet Protocol) Technology, Which Is The Same
Technology Used In Internet Services. In This Service The TV Channels Are Encoded In IP Format
And Delivered To TV Using A Set Top Box. The IP TV Service Also Includes Video On Demand
Services Which Is Is Similar To Watching Video CD's / DVD's Using A VCD / DVD Player. Movies,
Instructional Videos And Other Content Shall Be Available To Customers In The IP TV Services.
All The Three Services Work Together.

Normal Telephone Service

Broadband Internet Service

IPTV Service
The Bouquet Of TV Channels And Video On Demand Services Shall Be Available Initially During
Trials. Other Services / Content Shall Be Introduced Progressively.
The Main Components In Delivering This Service Are:

TV And Content Head End - Where The TV Channels Are Received And Encoded. Also Other
Content (Video's) Are Stored At Head End. MTNL Has Signed Agreement For This With M/S
IOL Broadband.

Delivery Network - Which Is MTNL's Broadband Network And MTNL's Telephone Line.
(Landline).
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
Set Top Box (STB) - The Set Top Box Is Required At The Customer Location For Converting
The IP Signal Back To TV Signal. The STB Shall Be Connected Between MTNL Broadband
Figure 4 An IPTV Connection Diagram of BSNL IPTV Service
Modem And Customer's TV. The STB Shall Be Provided By M/S IOL.

MTNL Landline Telephone With Broadband Connectivity Is Required For This Service.
BSNL IPTV12
There Is No Denying The Fact That IPTV Is Fast Becoming Popular Amongst Indian Population.
That’s Precisely The Reason, More And More Companies Are Coming Up With IPTV Technology.
One Of The Giants Of Indian Telecom World Is BSNL. This Government Owned Behemoth Has Also
Come Up With Its IPTV Services. BSNL Enjoys A Great Deal Of Popularity Amongst Indian Masses,
Mainly Because Of Its Services In Rural And Semi-Urban Areas. BSNL IPTV Works On A Simple
Concept And That Is Providing TV Connection Through Phone Line. Content Server Plays An
Important Role In IPTV World. The Content Server Of BSNL Is Based In Kolkata And All The
Channels, Customer Requests, Music, Movies And Other Entertaining Things Are Stored In This
Content Server.
On A More Technical Level, BSNL IPTV Channels Need To Have Minimum Of 4Mbps Of Bandwidth.
BSNL Has Already Launched Its Services In Many Parts Of The India And Planning To Spread All
Across The Country. The Basic Plan Of Iptv Starts With Rs. 250/. Other Value Added Services Are
Video On Demand Etc For Which One Has To Shell Out Extra Money. Apart From That, There Are
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Several Other Packages Suitable For All Sorts Of Requirements. Few Packages Also Include Some
Free Videos Per Month.
Other Charges Are Installation And Activation Charges Of Rs. 1600/-, Security Deposit Of Rs. 1500/, Fixed Monthly Charge For SED (Per Month) Of 100/-, IPTV Basic Charge Per Month Of 150/-,
Monthly Modem Rent Of Rs. 90/- And Modem Purchase For Rs. 600/-. BSNL Is Planning To Acquire
One Lakh Customers By The End Of This Fiscal. For This Purpose, They Have Already Appointed
Five Franchisees Namely; Smart Digivision Pvt Ltd, IOL Broadband Ltd, Maharashtra Knowledge
Company Ltd (MKCL), Aksh Optifibre, And Times Broadband Ltd. Company Is Also Expecting To
Serve 150,000 Customers By Coming March.
Reliance IPTV13
Reliance Communications Plans To Launch Internet Protocol Television (IPTV) By The End Of This
Year. It’s A New Technology Which Will Increase More Options For Users And Make Their TV
Viewing Experience Even More Enjoyable. IPTV Technology Uses Telephone Lines To Deliver
Content To The Subscribers Through IP Technology. Initially, This Technology Was Just Used In
Internet Telephony For Delivering Voice Over. IPTV Also Offers Video On Demand And Digital
Video Recording Services. Reliance Communications Is Planning To Launch It In 10 Cities And
Thereafter Depending Upon Its Popularity And Usage, More Cities Will Be Included. The Software
For IPTV Will Be Provided By Microsoft.
If Truth Be Told, Not Many People In India Have Great Number Of Entertainment Opportunities.
These People Often Go Back To Tried And Tested Television Channels To Watch Their Favorite
Programs And Get Themselves Entertained. IPTV Is A Breakthrough Technology In That Regard. It
Is Sure To Make Things Even More Enjoyable And Entertaining For People Who Resort To
Television. IPTV Provides This Unique Option Of Using All The Three Services From Single Line.
This Makes Things Quite Appealing And Convenient For The Users. Reliance Commands A Great
Presence In Several Verticals Of Business And No Doubt, IPTV Service Will Be Able To Delight The
Customers.
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Reliance IPTV Is Quite Simple To Use And Provides Many Features. Attractive Features Include,
Digital Video Recording, Instant Channel Change, Option Of Using Your Own Language, Home
Media Sharing, Pause And Play Live TV And Parental Controls. Also On The Anvil Is Big Library Of
Content, Real Time Video On Demand, Catch Up TV, Trick Play Functions, Movie Previews, And
Search Option Among Others. Set Top Box And Remote Control Are Other Instruments Users
Would Be Getting. With All These Features, It’s An Eagerly Awaited Service Launch. Reliance IPTV
Is Also Expected To Provide New Direction To TV Entertainment.14
Airtel IPTV15
Airtel Has Launched Its IPTV (Internet Protocol Television) Services To DELHI NCR Customers.
On The 19th Airtel Introduced 'Triple Play' Where Customer Now Just Need To Book A Single
Order And Like DTH 1+1 Team Of IO (Installation Officer) And Support Technician Will Get IPTV,
Broadband And Landline Installed. This Will Mean That Customer Just Need To Book One
Appointment For All Their Digital Solutions Provided Via Broadband.
Some Notes On Airtel IPTV You May Wish To Know:







EPG Is Similar To DTH, However Is One Not Higher With 'Time Shift TV'. This Allows
Currently 12 Channels To Be Viewed Like DVD (Play, Pause, Fwd Etc) For Past One Week
Customer May Have Missed. Later On These Will Be Increased To 48 Channels.
1+1 Team Will Ensure AWESOME Customer Service To Its Customers.
IPTV Connection Requires Four Port Modem And If You Somehow Have Managed To Take
The Cable Out Insert It In Port 4 Only, Else IPTV Will NOT Work.
IPTV Works On 8 MBPS And Is Dedicated Line, Hence It Means You Will Not Have Any
Effect On Your Broadband Either Increase Or Decrease. Also, Landline, IPTV And DSL Are
Independent Services, Which Means If One Affected It Won't Necessarily Mean That Other
Will Be Disrupted.
Modem Is The Hub So If That Is Damaged Then Both IPTV And Broadband Will Be Affected.
Airtel Is Not Allowed To Do External Cabling For IPTV Due To Various Reasons. Hence,
Please Don't Ask That Installation Officer To Do It For You Forcibly, It May Cause Him To
Lose His Job. If You Really Want External Cabling Please Contact Your Local Electrician.
Two Modes Of Connectivity, Existing Customer Can Upgrade And New People Can Go For
Very Reasonable Triple Play
1.3Head-End In The Sky (HITS)16
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To Speed Up The Process Of Digitalization Of Cable Services Located In Non-CAS Areas Of The
Country, The Government Is In The Process Of Taking A View On The Recommendations Of TRAI
On The Issue Of The Proposed Policy Framework On The Headend In The Sky (HITS) Mode Of
Delivery Of Content To The Cable Operators.
This System Will Enable The Packaging Of Content In Digital Form At The Level Of HITS Operator
Who Will Uplink It To A Satellite To Be Received By The Cable Operators And Thereafter
Distributed In Digital Mode Through Cable Network. The Key Factor In Conversion Of Small Time
Cable Operators To The Digital Mode Of Delivery Is The Investment Required To Be Made In The
Setting Up Of Digital Headend, CAS And SMS.
Introduction Of HITS Services Can Help Reduce These Costs For The Small Time Cable Operators,
Thus Speeding Up The Transition And Will Also Be Beneficial To Consumers. By Introduction Of
Addressability It Will Help Bring Transparency In Cable Operations To The Benefit Of All
Stakeholders Including The Government.
1.4Mobile TV17
Mobile TV Is Another Mode Of Distribution Of TV Channels.
A Joint Group Of Ministry Of I & B And Dot Has Considered The Regulatory And Licensing Issues
Of Mobile TV And Held That If Mobile TV Services Are To Be Provided In The Broadcasting Mode
Using Transmission Of Terrestrial Or Satellite Broadcast Signals, They Will Come Under The
Domain Of MIB And Will Be Governed By The Applicable Laws.
If They Are Provided By Using The Infrastructure Of Telecom Service Provider, They Will Fall In The
Domain Of MCIT. The Report Of The Joint Group Is Being Examined. The Government Has Also
Made A Reference To The TRAI For Policy Framework For Opening Up The Sector For Private
Participation. TRAI Has Placed Its Draft Recommendations On The Website To Enable The
Government Put A Policy Framework In Place. It Is Also Under Consideration Whether Prasar
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Bharati Infrastructure Can Also Be Shared With Mobile TV Service Providers For The Benefit Of
Both.
Product Technology And Service Processing18
Television Receive-Only
The Term Television Receive-Only, Or TVRO, Arose During The Early Days Of Satellite Television
Reception To Differentiate It From Commercial Satellite Television Uplink And Downlink
Operations (Transmit And Receive). This Was Before There Was A DTH Satellite Television
Broadcast Industry. Satellite Television Channels At That Time Were Intended To Be Used By
Cable Television Networks Rather Than Received By Home Viewers. Satellite TV Receiver Systems
Were Largely Constructed By Hobbyists And Engineers. These TVRO System Operated Mainly On
The C Band Frequencies And The Dishes Required Were Large; Typically Over 3 Meters (10 Ft) In
Diameter. Consequently TVRO Is Often Referred To As "Big Dish" Or "Big Ugly Dish" (BUD)
Satellite Television.
TVRO Systems Are Designed To Receive Analog And Digital Satellite Feeds Of Both Television And
Audio From Both C-Band And Ku-Band Transponders On FSS-Type Satellites. The Higher Frequency
Ku-Band Systems Tend To Be Direct To Home Systems And Can Use A Smaller Dish Antenna
Because Of The Higher Power Transmissions And Greater Antenna Gain.
TVRO Systems Tend To Use Larger Rather Than Smaller Satellite Dish Antennas, Since It Is More
Likely That The Owner Of A TVRO System Would Have A C-Band-Only Setup Rather Than A Ku
Band-Only Setup. Additional Receiver Boxes Allow For Different Types Of Digital Satellite Signal
Reception, Such As DVB/MPEG-2 And 4DTV.
The Narrow Beam Width Of A Normal Parabolic Satellite Antenna Means It Can Only Receive
Signals From A Single Satellite At A Time. Simulate Or The Vertex-RSI TORUS Is A Quasi-Parabolic
Satellite Earth Station Antenna That Is Capable Of Receiving Satellite Transmissions From 35 Or
More C- And Ku-Band Satellites Simultaneously.
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Direct To Home Television
Today, Most Satellite TV Customers In Developed Television Markets Get Their Programming
Through A Direct Broadcast Satellite (DBS) Provider, Such As DISH TV Or DTH Platform. The
Provider Selects Programs And Broadcasts Them To Subscribers As A Set Package. Basically, The
Provider’s Goal Is To Bring Dozens Or Even Hundreds Of Channels To The Customer’s Television In
A Form That Approximates The Competition From Cable TV. Unlike Earlier Programming, The
Provider’s Broadcast Is Completely Digital, Which Means It Has High Picture And Stereo Sound
Quality. Early Satellite Television Was Broadcast In C-Band - Radio In The 3.4-Gigahertz (Ghz) To 7
Ghz Frequency Range. Digital Broadcast Satellite Transmits Programming In The Ku Frequency
Range (10 Ghz To 14 Ghz). There Are Five Major Components Involved In A Direct To Home (DTH)
Satellite System: The Programming Source, The Broadcast Center, The Satellite, The Satellite Dish
And The Receiver.
Programming Sources Are Simply The Channels That Provide Programming For Broadcast. The
Provider (The DTH Platform) Doesn’t Create Original Programming Itself; It Pays Other Companies
(HBO, For Example, Or ESPN Or STAR TV Or Sahara Etc.) For The Right To Broadcast Their Content
Via Satellite. In This Way, The Provider Is Kind Of Like A Broker Between The Viewer And The
Actual Programming Sources. (Cable Television Networks Also Work On The Same Principle.) The
Broadcast Center Is The Central Hub Of The System. At The Broadcast Center Or The Playout &
Uplink Location, The Television Provider Receives Signals From Various Programming Sources,
Compresses These Signals Using Digital Compression (Scrambling If Necessary), And Beams A
Broadcast Signal To The Proper Satellite. The Satellite Receives The Signal From The Broadcast
Station And Rebroadcast Them To The Ground. The Viewer’s Dish Picks Up The Signal From The
Satellite (Or Multiple Satellites In The Same Part Of The Sky) And Passes It On To The Receiver In
The Viewer’s House. The Receiver Processes The Signal And Passes It On To A Standard Television.
These Are The Steps In Greater Detail:
Programming
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Satellite TV Providers Get Programming From Two Major Sources: International Turnaround
Channels (Such As HBO, ESPN And CNN, STAR TV, SET, B4U Etc) And Various Local Channels (Sabe
TV, Sahara TV, Doordarshan, Etc). Most Of The Turnaround Channels Also Provide Programming
For Cable Television, So Sometimes Some Of The DTH Platforms Will Add In Some Special
Channels Exclusive To Itself To Attract More Subscriptions. Turnaround Channels Usually Have A
Distribution Center That Beams Their Programming To A Geostationary Satellite. The Broadcast
Center Uses Large Satellite Dishes To Pick Up These Analog And Digital Signals From Several
Sources.
Broadcasting Centers
The Broadcast Center Converts All Of This Programming Into A High-Quality, Uncompressed
Digital Stream. At This Point, The Stream Contains A Vast Quantity Of Data — About 270 Megabits
Per Second (Mbit/S) For Each Channel. In Order To Transmit The Signal From There, The Broadcast
Center Has To Compress It. Otherwise, It Would Be Too Big For The Satellite To Handle.
The Providers Use The MPEG-2 Compressed Video Format — The Same Format Used To Store
Movies On Dvds. With MPEG-2 Compression, The Provider Can Reduce The 270-Mbit/S Stream To
About 3 Or 10 Mbit/S (Depending On The Type Of Programming).
This Is The Crucial Step That Has Made DTH Service A Success. With Digital Compression, A Typical
Satellite Can Transmit About 200 Channels. Without Digital Compression, It Can Transmit About
30 Channels. At The Broadcast Center, The High-Quality Digital Stream Of Video Goes Through An
MPEG-2 Encoder, Which Converts The Programming To MPEG-2 Video Of The Correct Size And
Format For The Satellite Receiver In Your House.
Encryption And Transmission
After The Video Is Compressed, The Provider Needs To Encrypt It In Order To Keep People From
Accessing It For Free. Encryption Scrambles The Digital Data In Such A Way That It Can Only Be
Decrypted (Converted Back Into Usable Data) If The Receiver Has The Correct Decoding Satellite
Receiver With Decryption Algorithm And Security Keys. Once The Signal Is Compressed And
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Encrypted, The Broadcast Center Beams It Directly To One Of Its Satellites. The Satellite Picks Up
The Signal, Amplifies It And Beams It Back To Earth, Where Viewers Can Pick It Up.
The Dish
A Satellite Dish Is Just A Special Kind Of Antenna Designed To Focus On A Specific Broadcast
Source. The Standard Dish Consists Of A Parabolic (Bowl-Shaped) Surface And A Central Feed
Horn. To Transmit A Signal, A Controller Sends It Through The Horn, And The Dish Focuses The
Signal Into A Relatively Narrow Beam. The Dish On The Receiving End Can’t Transmit Information;
It Can Only Receive It. The Receiving Dish Works In The Exact Opposite Way Of The Transmitter.
When A Beam Hits The Curved Dish, The Parabola Shape Reflects The Radio Signal Inward Onto A
Particular Point, Just Like A Concave Mirror Focuses Light Onto A Particular Point. The Curved
Dish Focuses Incoming Radio Waves Onto The Feed Horn. In This Case, The Point Is The Dish’s
Feed Horn, Which Passes The Signal Onto The Receiving Equipment. In An Ideal Setup, There
Aren’t Any Major Obstacles Between The Satellite And The Dish, So The Dish Receives A Clear
Signal.
In Some Systems, The Dish Needs To Pick Up Signals From Two Or More Satellites At The Same
Time. The Satellites May Be Close Enough Together That A Regular Dish With A Single Horn Can
Pick Up Signals From Both. This Compromises Quality Somewhat, Because The Dish Isn’t Aimed
Directly At One Or More Of The Satellites. A New Dish Design Uses Two Or More Horns To Pick Up
Different Satellite Signals. As The Beams From Different Satellites Hit The Curved Dish, They
Reflect At Different Angles So That One Beam Hits One Of The Horns And Another Beam Hits A
Different Horn. The Central Element In The Feed Horn Is The Low Noise Blockdown Converter, Or
LNB. The LNB Amplifies The Signal Bouncing Off The Dish And Filters Out The Noise (Signals Not
Carrying Programming). The LNB Passes The Amplified, Filtered Signal To The Satellite Receiver
Inside The Viewer’s House.
The Receiver
Further Information: Set-Top Box (STB)
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The End Component In The Entire Satellite TV System Is The Receiver. The Receiver Has Four
Essential Jobs: It De-Scrambles The Encrypted Signal. In Order To Unlock The Signal, The Receiver
Needs The Proper Decoder Chip For That Programming Package. The Provider Can Communicate
With The Chip, Via The Satellite Signal, To Make Necessary Adjustments To Its Decoding
Programs. The Provider May Occasionally Send Signals That Disrupt Illegal De-Scramblers, As An
Electronic Counter Measure (ECM) Against Illegal Users. It Takes The Digital MPEG-2 Signal And
Converts It Into An Analog Format That A Standard Television Can Recognize. Since The Receiver
Spits Out Only One Channel At A Time, You Can’t Tape One Program And Watch Another. You
Also Can’t Watch Two Different Programs On Two Tvs Hooked Up To The Same Receiver. In Order
To Do These Things, Which Are Standard On Conventional Cable, You Need To Buy An Additional
Receiver. Some Receivers Have A Number Of Other Features As Well. They Pick Up A
Programming Schedule Signal From The Provider And Present This Information In An Onscreen
Programming Guide. Many Receivers Have Parental Lock-Out Options, And Some Have Built-In
Digital Video Recorders (Dvrs), Which Let You Pause Live Television Or Record It On A Hard Drive.
While Digital Broadcast Satellite Service Is Still Lacking Some Of The Basic Features Of
Conventional Cable (The Ability To Easily Split Signals Between Different Tvs And Vcrs, For
Example), Its High-Quality Picture, Varied Programming Selection And Extended Service Areas Are
Features Now Seen As An Alternative. With The Rise Of Digital Cable, Which Also Has Improved
Picture Quality And Extended Channel Selection, The TV War Is Really Heating Up. Just About
Anything Could Happen In The Next 10 Years As All Of These Television Providers Battle It Out.
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Industry Life Cycle19
Year
2003
2005
2007
2009
Subscribers (In Millions)
0.00
1.00
4.00
18.70
Figure 5 DTH Industry Life Cycle (2003-2009)
Implication:
1. Introduction Stage
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.
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.
Just A Few Year Ago, When Star TV Made An Unsuccessful Attempt To Launch DTH, The Same
System Cost Rs 14,000 To Rs 15,000 At That Time A Cable Operators Charging Rs. 1000 To Rs.2000
Deposit (For Cables And Other Requirement) And Monthly Average Rs.175 (For Channel) Service.
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: Subsidies 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
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Expected To Start From As Low As Rs. 100 For 38 Channels Going Up Depending On The Quality
Of The Channels Shown.20
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.
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.
2. Growth Stage
After The Introduction Growth Stage Comes. From The Above Graphical Presentation We Can See
That The Subscribers Of DTH Service Industry Is Increase With Increasing Rate. Year Is Plating On
“X” Axis And Subscriber Is On “Y” Axis.
Here, Life Cycle Of Industry Is Interpreted With The Help Of Six Years Analysis. If We Can Talk
About Earlier Year Means 2004-05, Then At That Time There Was Only One Player And Also
Government Is Not Helping Like Today. And Also Awareness Of This Service Is Not So Much.
After 2004-05, The Growth In Subscribers Is Increase. Because At That Time There Were 2 New
Companies Also Entered In The Market. And Also Awareness, Life Style Of Our Country’s People
Increase. After 2006-07, It Is Increase Very Much. Because In 2008 There Were 10mn Subscribers.
So, We Can Say That This Industry Is On Growth Stage.
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Chapter 3
Global Scenario
Global
According To Latest Figures Released, DTH Pay-TV Revenues Are Growing At A Faster Rate Than
Subscribers. The Report Suggests That Revenues Will Rise From $46 Bn In 2005 To $80 Bn In
2009.21 In An Interesting Revelation, The Report Suggests That Growth Has Slowed Down In
North America And Europe, Where The Market Has Attained Maturity. According To Estimates, By
The End Of 2008, There Will Be 100mn Digital DTH Pay-TV Subscribers. The Launch Of Services In
China And India Will Make Asia The Fastest-Growing Market For DTH, The Report Suggests.
Global Players22
Total Companies Profiled: 72 (Including Divisions/Subsidiaries - 80)
Table 1: Global Players
Region/Country
Players
The United States
Canada
Japan
Europe
France
Germany
U.K.
Italy
Spain
Rest Of Europe
Asia-Pacific (Excluding Japan)
Middle East
Latin America
Africa
Total
11
5
2
23
4
1
5
1
1
11
28
2
8
1
80
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Global Major Players23
APT Satellite Holdings Limited (Hong Kong)
Astro All Asia Networks Plc (Malaysia)
AUSTAR United Communications Limited (Australia)
BCE, Inc (Canada)
Chaparral Communications, Inc. (US)
DIRECTV Group, Inc. (US)
DREAM Satellite TV (Philippines)
Echostar Communications Corporation (US)
FOXTEL (Australia)
Intelsat, Ltd. (Bermuda)
JSAT Corporation (Japan)
MEASAT Satellite Systems Sdn. Bhd. (Malaysia)
Nahuelsat S.A (Argentina)
Norsat International Inc. (Canada)
Pace Micro Technology Plc (UK)
Optus Communications Pty. Ltd. (Australia)
Shaw Communications Inc. (Canada)
Shin Satellite Public Company Ltd. (Thailand)
Star Group Limited (Hong Kong)
Sky Italia (Italy)
Skylife (South Korea)
Sky Network Television Ltd. (New Zealand)
SINO Satellite Communications Company Ltd. (China)
Satmex (Mexico)
True Visions Public Company Limited (Formerly United
Broadcasting Corp) (Thailand)
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Cable Vs. DTH - An Overview Of The World Scenario
In The Wake Of The Opening Up Of The Earth And Skies (Literally) To Private Operators, India Is
All Set To See A "War Of The Accesses". With Very Few Large Players, A Widespread Geography
And An Extremely Rowdy And Unorganized Cable Operator Set-Up, The Options Between DTH
And Cable As Access Modes Are Both Set To Woo The Ever Increasingly Discerning Indian
Consumer.24
This Report Attempts To Provide An Overview Of The World Scenario And Draw Some Parallel (If
Any) To Our Country. I Have Tried To Collate Information From Various Countries, All In Different
Stages Of "Access Provision" Development.
GLOBAL25
Figure 6 A Worldwide Broadcasting Service Area of Major Players
USA
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In The US, There Are At Present Two Major DTH Providers. Directv And Echo Star.
Directv Provides A Series Of 225 Basic Channels And Premium Services. Directv Subscribers Can
Also Receive High Speed Internet Access Through Direct PC And Direct Duo Services. Revenues
For Fiscal 2000 For Directv Have Been Estimated At $ 4.8 Billion. Directv Expects To Add Another
Two Million Customers To Total 11 Million By Fiscal 2001.
Its Competitor, Echo Star Is Fast Catching Up With Directv. This Also Provides An Equal Number
Of Basic Channels And Premium Services. It Has Also Pioneered Dual Focus Dish To Provide Local
Channels. Echo Star Is Also Improving Its Fiscal Performance. For The 3rd Quarter Of 2000, It
Earned Revenues Of $ 698 Million But Booked A Loss For The 3rd Quarter Of $ 130 Million.
While The Number Of Echo Star Dish Network Subscribers Is Growing Strongly, The Enhanced
Revenue From Additional Customers Is Offset By Increased Marketing Expenses Due To Stiff
Competition From The Strong US Cable Industry.
Europe
In Europe, The General View Has Been That Europe Could Take Up To Five Years To Catch Up With
The US. On The Other Hand, In The Area Of Mobile Devices And Interactive Television, Europe Is
Leading The US And The Rest Of The World. Europe Has Seen A Great Move Towards Digital
Television And Interactive Television. Similarly Europe Leads The US With Over 25 Million DTH
Customers.
Europe Is Served Among Others By The Eutelsat 5 Satellite Hotbird Network To Provide More
Than 530 Television Channels And 400 Digital Radio Channels To Approximately 24 Million Homes
In Europe, North Africa And The Middle East.
Europe Has Developed The Ability To Do Satellite Television Differently From The US. Out Of The
530 Television Channels, More Than 200 Are Free To Air. Television Channel Providers Are Allowed
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Either To Jointly Commercialize The Transponder Capacity Or Utilize The Sky-Plex Package To
Provide DTH Signals To Various Homes.
Eutelsat Is Paying Increasing Attention To Data Casting And Micro Broadcasting To Specifically
Targeted Markets. Eutelsat Had Announced Proposed Launch Of A New Satellite To Provide 850
Television Channels By The Last Quarter Of 2001. This Satellite Will Provide Ka Band Technology.
This Shows That How Growth Of DTH Market In EUROPE At That Time.
Canada
Cable Competition Has Increased In Canada In The Past Few Years Due To Changes In Technology
And Government Regulations. There Have Been Delays, However, In Launching Direct
Broadcasting Services (DBS), Largely Due To Restrictions Against Non-Canadian Programming - 51
Per Cent Of Channels Carried On Cable And DTH Must Be Canadian Programming. As A Result, A
"Gray Market" Exists: Subscribers Illegally Using US Made Dishes And Receiving US Satellite
Signals. Despite The Popularity Of The Dishes, Canadian DBS Consumers Basically Face The Same
Problems As
US Consumers: 1) Lack Of Local Broadcast Signals, 2) Expensive Equipment And Installation, 3)
Zoning Laws And Tenant Restrictions Against Mounting Dishes, And 4) Digital Converters
Necessary For Each TV Set (And Additions Are Costly).
As In The US, The Main Factors Affecting Consumer Choice Between Cable And DBS Are
Programming Choices, Cost, And Signal Quality. In Major Markets, DBS Offers A Few Local
Channels But Cable Still Has The Advantage. As In The US, Canadian Cable Operators Plan To
Compete With DBS Via New Services, I.E. Internet, Digital And Telephony. Despite Competition
From DBS And Other Subscription Video Services Such As Wireless, Cable Penetration Has
Increased In The Past Few Years, From 65.3% In 1994 To 67.8% In 1996.
Competition In Canada Is Likely To Increase Overall Multi-Channel Subscriber-Ship, But Cable Has An
Advantage Due To Price And Local Programming.
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Latin America
Latin America Has Approximately 13.4 Million Multi-Channel Subscribers With An Overall
Penetration Rate Of 15 Per Cent. The Problem With Piracy Has Started To Improve As Thousands
Of Cable Licenses Are Being Granted Across The Region. Deregulation Of Both Cable And
Telecommunications Is Bringing Foreign Investment Into Latin America, Especially From The US,
Canada And Europe. Consolidation And Acquisition Is Necessary In Order To Upgrade Cable
Networks To Provide Cable Telephony And Other New Services. Smaller Cable And MMDS
Systems Are Being Acquired By The Major Msos.
DBS Has Provided Further Impetus For Cable Operators To Upgrade, With Their Digital Packages
Providing 150 And More Channels Compared To 50 On Cable. There Were 487,000 Subscribers To
DBS In 1997, With 3.2 Million Forecast By 2002. Due To Its High Cable Penetration Rate, DBS
Growth In Argentina May Be Limited. Regulations And Pricing Have Slowed DBS Progress Equipment Costs And Programming Packages Are Expensive For The Average Consumer.
Overall, DBS Is Not A Major Threat To The Cable Industry In Latin America, Especially With Many Msos
Becoming DBS Distributors In Their Countries.
Sub-Saharan Africa
It Is Difficult To Predict The Future For Television In Africa. The Liberalization Of Broadcasting
Regulations And The Increasing Penetration Of Low Cost DTH Technology Have Led To Significant
Growth In Africa's Television Market. In November 1995, Multi-Choice Was Launched And
Continues To Dominate The African DTH Market. Multi-Choice Claims Over 1.1 Million Subscribers,
And Even Far-Away Places Such As Zambia Are Receiving Multi Choice's M-Net Channels And Have
As Many As 4,800 Subscribers.
The Challenges, However, Facing The African DTH Market Can Be Identified By A Lack Of Funds,
Technological Discrepancies Or Government Intervention.
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DTH Seems To Be The Most Economical Method Of Reaching Widespread Population, However It
Is Also Faced With The Challenge Of Providing Services To A Country Having Over 60 Dialects And
Widespread Population That May Have No Interest Nor Means In Paying For A Satellite Service
Because Of Its Cost.
Middle East
The Middle East, With A Population Of Over 165 Million And Over 26 Million Television Homes,
Demonstrates A Market With Significant Potential. However, It Remains A Market Where Only A
Small Minority Actually Pays For What They Watch On TV.
Cable TV Is Experiencing Growth First Beginning In Israel But Qatar Has 12 Channels Available,
While Bahrain And The UAE Both Have Ten. The Multi-Channel Alternatives, Satellite And MMDS,
Are Increasingly Important, Though In Some States Such As Qatar They Are Mutually Exclusive.
The Satellite TV Sector Exploded After The Gulf War With The Launch Of Services Such As ESC
(Egypt) And MBC (UK) In 1991, EDTV (Dubai, UAE) In 1992, Abu Dhabi In 1994, LBCI, FTV (Lebanon)
And Al Jazeera (Qatar) In 1996 And ANN, A Syrian-Owned Channel Broadcast Via London, In 1997.
The Consumer Taste For Variety And Polished Programming Packages Has Laid The Foundation
For The Conversion From Over-The-Air Broadcasting To Pay TV.
The Challenge To Becoming A Successful Operator In The Middle East Lies In The Provider's Ability To
Offer A Unique Product While Adhering To The Cultural And Religious Sensitivities Of The Market.
Satellite Penetration Is As High As 27% In Saudi Arabia And As Low As 6% In Lebanon. Because Of
This Widespread Difference, It Can Be Argued That MMDS Will Become The Dominant Medium
For Pay TV. Star TV, For Example, Is Marketing The MMDS Network In Qatar, Dubai And Bahrain.
Finally, The Middle Eastern Television Viewer Has Yet To Come To Terms With Actually Paying For
Quality Entertainment, But Time Will Tell What Will Happen.
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Asia And The Pacific
Broadcasting In Asia Continues To Grow By Leaps And Bounds. Penetration Is Consistently On The
Rise With DTH And Cable Penetration Currently Reaching One In Five TV Households And
Estimated To Reach One In Three Households By 2005. In 1991, The First Subscription DTH Service
Was Launched Which Led The Way In The Asian Satellite Revolution.
Growth Is Expected In Cable, MMDS As Well As DTH To Meet Consumer Demand Which Is Likely
To Rebound Strongly After The Current Turmoil Recedes.
Which Technology Prevails In Each Market Is Likely To Be Determined By A Combination Of Factors
Including Geography, Which Technologies Were First Established, Which Players Have The Most
"Political Clout", Etc.
Concentration Of Population And Income Level Will Dictate The Ease In Which A Consumer Can
Access A Pay TV Service.
Australia
In July 1997, The Telecommunications Market In Australia Was Deregulated Allowing New Carriers
To Compete Directly With The Two Incumbent Carriers, Telstra And Optus. Australia Is Also A
Unique Study In Cable, Because It Is One Of The Few Countries In The World Where Competing
Services Are Laying Fibre-Optic Cable And Hanging It Overhead Simultaneously.
The Road To Convergence In Australia Has Also Not Been A Smooth One. The Services Vying For
The Ability To Provide Cable, Telephone And Data Transmission All In One Are Experiencing Losses
At An Alarming Rate. Cable Is In A State Of Overbuild With Over 1 Million Homes Already Passed. It
Also Seems That These Competing Cable Companies Are Readily Accepting Losses In Order To
Gain Market Dominance. Attempts To Merge These Systems Have Been Repeatedly Foiled By
Australia's Anti-Trust Regulator, The ACCC.
Just What The Future Holds For Australia Is Unpredictable But One Thing Is Certain, Opportunities
Exist For The Large And Knowledgeable Participant In Traditional Media And Television, While
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Emerging Technologies And Convergence Opportunities Will Arise With The Deregulation Of The
Telecommunications Sector.
PPV (Pay-Per-View)
The Emerging DTH Sector Is Opening New Revenue Opportunities For Film-Makers. All DTH
Operators Run A Bouquet Of Pay-Per-View Channels Offering Motley Of Films Across Various
Languages And Genres. A DTH Subscriber Can Access This Content On A Pay-Per-View Basis.
This Is Opening A New Revenue Opportunity For Film Makers To Market Their Films To DTH
Operators Directly. With A Current Subscriber Base Of Over 12 Million Growing Annually At 35 Per
Cent Growth Rate, The DTH Operators Provide Film-Makers A Captive Audience To Showcase
Their Products.
Currently, Film Revenues Are Dominated By Theatrical Exhibition Sales Covering Domestic And
International Markets. Over The Last Few Years, The Satellite Rights Have Emerged As A Key
Revenue Generator. Going Forward, New Medias (Mobile Content, Gaming Etc…) And DTH PayPer-View Will Be Key Streams For Film Makers To Generate Revenues.
According To FICCI The Size Of Indian Filmed Entertainment Industry Is Approximately Rs. 96
Billion (Year 2007). It Is Estimated To Touch Rs. 176 Billion By 2012. The Industry Is Expected To
Maintain A CAGR Of Approximately 13 Per Cent For The Next 4 Years.26
Emergence Of Various Revenue Streams Beyond Traditional Box Office Is Changing The Face Of
The Indian Filmed Entertainment Industry Such As Television, Mobile, Internet, Home Video,
Merchandise, Music, Re-Make Rights And Several Branded Entertainment Opportunities.
Globally, The Migration To Digital Formats Is Accelerating Growth Of The Filmed Entertainment
Industry. FICCI Estimates That This Trend Is Likely To Catch-Up In India Too. Distribution Of
Entertainment Content Over Various Platforms Including Video-On-Demand Is Likely To Rise
Significantly In The Next Five Years.
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Globally, Pay-Per-View Has Emerged From Being An Ancillary Segment Of Film Business To A FullFledged Industry. Worldwide, Pay-Per-View Revenues Have Grown Steadily Over The Past Decade,
Accelerating Somewhat During The Past Five Years With The Addition Of New Pay-Per-View
Subscriber Services. According To Global Estimates, 45 Per Cent Of All Television Households
Currently Subscribe To Basic Services. Of These, Many Subscribers Pay A Premium For Additional
Services.
The Main Staple For Most Pay-Per-View Services Is Feature Motion Pictures Which Have Been
Released Theatrically. Pay-Per-View Is Gaining Market Share Rapidly And May Eventually Replace
Both Subscription Cable And Home Video By The Turn Of The Century. Globally, The Number Of
Pay-Per-View Customers Is Over 20 Million, Up From 6 Million In 1989. Combined Pay-Per-View
Sales Total Approximately 20 Per Cent Of Theatrical Revenues.
India Is Still At A Nascent Stage As Far As Pay-Per-View Viewer Ship Is Concerned Providing Great
Potential For Future Growth Of This Segment. India Has A Massive Emerging Middle-Class, And TV
Viewing Is A Very Strong Habit. This Clearly Reflects Its Potential To Be The Driver Of The Pay-PerView Market. Korea Is Currently The Most Advanced Now, Followed By China. But Once It Takes
Off, India Will Overtake China.
India Can Fuse Its Creative Expertise With Its Technological Know-How, Coupled With The LowCost Factor To Provide Cutting Edge Interactive Formats And Content To The World. In
Hollywood, One Would Have To Think Really Hard Before Experimenting, But India Is In A Position
To Attempt It Since It's A Highly Flexible Market With Good Technical Skills.
India's Pay-Per-View Segment Is Estimated To Grow At 16 Per Cent Annually To Log Revenues Of
$11.3 Billion By 2012 And Emerge As A Key Driver Of This Business In Asia, According To A Study By
Hong Kong-Based Media Partners Asia.
The Study Estimates That India Will Remain A Leading Pay-Per-View Market In Asia With Superior
Growth Prospect Indicating A Huge Upside For The Future.
Much Of Asia's Digital Growth Will Be Driven By China And India, Though India Will Have A More
Significant Impact For Pay-Per-View Distributors (DTH Operators) And Content Suppliers.
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The Study By Media Partners Asia Further States That The Total Pay-Per-View Revenues In India
Will Grow Further To Top $18.5 Billion By 2017, With Subscription Revenues Of $12.3 Billion And
Advertising Amounting To $6.2 Billion.
The Study Also Projects That The Overall Pay-Per-View Subscriber Base Will Expand To 137 Million
By 2012 And 163.8 Million By 2017, With An Annual Growth Of 10.9 Percent For The First Five Years
And 7.2 Percent For The Remaining Five.
Some Of The DTH Operators Are Steadily Building Up Their PPV (Pay-Per-View) Portfolio. After An
Aggressive Round Of Price Wars, DTH Operators Are Now Changing Gears To Focus On Their PPV
Channels To Lure Subscribers. The PPV Channels Currently Offer A Bouquet Of Films Each DTH
Operator Bundles As Part Of Its Channel Bouquets. Operators Offer The PPV Movie Bouquet In
Various Languages Including Hindi, English And Regional. Each Operator Is Currently Indulging
Potential Subscribers With A Motley Film Bonanza Through Its PPV Strategy.
Opportunities For Indian Vendors
With The Indian DTH Market Set To Go The Cellular Success Way, Lot Of Vendors Is Excited About
It. Though The Market Continues To Be Flooded With Hardware (Set Top Boxes And Dishes Etc)
From China And Taiwan, There Are Several Established Vendors Who Have Opened Their Shop In
India Providing All Kinds Of Devices, Both Hardware And Software To DTH Companies As Well As
Subscribers. Dish Has Partnership With Conax, A Leading International Company For Providing
Conditional Access. Similarly, For Stbs, It Has Associated With Korea Based Companies. Recently,
Dish Signed An Agreement With Open TV, A Leading Provider Of Enabling Technologies For
Advanced Digital Television Services To Deploy Opentv's Software And Services In Dishtv. This
Partnership Will Enable Dish TV To Offer Multi-Camera Viewing, Gaming, Interactive Channels,
PVR, And Push Video-On-Demand (PVOD).
Tatasky On The Other Hand Has Partnered With Thomson For Manufacturing Set-Top Boxes In
India And It Will Also Provide A Countrywide After-Sales Service And Support Network For Our
Customers. It Has Also Tied Up With Sun Microsystems To Provide IT Infrastructure Solutions And
Support.
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Chapter 4
Financial Analysis
Revenue Structure27:
Revenue Drivers
Sales
Subscription Income
Processing Charges/Service Income
Other Operational Income
Total
Percentage (%)
1.29%
79.94%
1.80%
16.96%
100.00%
Data Source: ACCEQUITY
Figure 7 Revenue Structure, data taken from ACE Equity application Software. Which
Show Major portion of Subscription
Implication:
On The Above Graph We Can Say That Revenue Structure Of This Industry Have Some Fixed
Options. And These Are Sales, Subscription Income, Processing Charges/ Service Income & Other
Operational Income.
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Out Of These All Incomes, Mostly Companies Get From Subscription. It Is Around 80% Of Total
Income. And Then After Other Operational Income Takes Place. It Is Around 17%. After That
Processing Charges/ Service Income And Then Sales Take Place From Recharges And All Other
Things.
Cost Structure:
Cost Drivers
Raw Material Consumed
Power & Fuel Cost
Employee Cost
Production Expenses
General And Administration Expenses
Selling And Distribution Expenses
Miscellaneous Expenses
Percentage (%)
1.42%
0.24%
4.33%
57.03%
4.90%
29.03%
3.05%
100.00%
Data Source: ACCEQUITY
Figure 8 Cost Structure of the industry playes (approx.)
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51
Implication:
On The Above Graph We Can Say That Cost Structure Of This Industry Have Many Different
Expenses. And These Are Raw Material Exp., Power & Fuel Exp., Employee Cost, Production Exp.,
General & Administrative Exp., Selling & Distribution Exp. And Miscellaneous Expenses.
Out Of These All Expenses, Mostly Companies Consume Production Expenses Are The Most. It Is
Around 57% Of Total Expenses. And Then After Selling & Distribution Expenses Take The Place. It
Is Around 29%. After That General & Administrative Exp. And Then Employee Cost And So And So.
In The Production Exp. Companies Most Consumed On Programs Production Exp. And Programs
& Film Rights. And In The Selling & Distribution Exp., Companies Most Consumed On Sales
Commission & Incentives And Advertisements & Sales Promotion.
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Chapter 5
PEST Analysis:
A Scan Of The External Macro-Environment In Which The Firm Operates Can Be Expressed In
Terms Of The Following Factors:
1.
Political
2.
Economic
3.
Social
4.
Technological
The Acronym PEST (Or Sometimes Rearranged As "STEP") Is Used To Describe A Framework For
The Analysis Of These Macro Environmental Factors.
Political Factors
Political Factors Include Government Regulations And Legal Issues And Define Both Formal And
Informal Rules Under Which The Firm Must Operate. Some Examples Include:
Opposition By Political Parties:
At Its Entry Stage In Indian Market, Direct To Home Television Has Faced Lot Of Opposition From
All The Political Parties; It Was A Bad Word With Everyone Concerned. Every Politician Screamed
That It Would Pose A Threat To National Security When Star TV Threatened To Flag Off Its Iskyb
Project. The Major Opposition To Iskyb Came From Wannabe DTH Players Such As Subhash
Chandra And Lalit Modi As They Did Not Want Murdoch To Be The First In This Game In The Indian
Market.
But With Passage Of Time Thing Changed, After A Long Brainstorming Session On DTH Issue
Taking Into Consideration The Advantages It Provides To Common Man, Finally All The Political
Parties Agreed Upon Allowing DTH Technology In India.
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Regulatory Role Of Government
Information & Broadcast Ministry Of India Finalized The Guidelines For The Companies Entering
Into This Business And After Assuring All The Security Aspects, DTH Players Were Allowed To Start
Their Play In India. As They Made Rules For License Fee, Entry Fee, Etc.
Rules For Licensing
1.
No. Of Licenses Issued: There Will Be No Restrictions On The Number Of DTH Service
Provider To Issue The License, The License Issued By Any New Service Provider Who Fulfils The
Terms And Conditions Which Are Regulated By TRAI (Telecom Regularity Authority Of India).
TRAI Also Regulated The Security And Technical Clearances Service Provide To The DTH Service
Holders By The Appropriate Authorities Of The Government.
2.
Validity Of License: Wireless Planning And Coordination Wing Of Ministry Of
Communication, The Rules And Regulation Of The Government The License Provide To The DTH
Service Provider Which Is Valid Up To 10 Years From The Date Of Issue Of Wireless Operational
License.
3.
DTH License Fee Reduction: The Ministry’s Move To Reduce The License Fee For DTH
Players From 10% Of Gross Revenue To 6% May Soon Bear Fruition. Secretary Singh Said The
Ministry May Be Able To Announce This Soon. This Process Has Been On For Nearly A Year. Due To
The Multiplicity Of Agencies—Telecom Regulator TRAI, I&B Ministry And The Finance Ministry Are
Involved In This Decision—The File Seems To Have Been Moving Back And Forth For Nearly An
Entire Year. One DTH Industry Source, Who Has Followed The Policy Change Closely, Told Us That
The First Time Around, The Finance Ministry Had Some Reservations About The Change After I&B
Ministry And TRAI Had Approved The Change. So The Ministry Had To Make Some Amendments
And Get TRAI Recommendation Once Again And The File Has Gone Back Again To The Finance
Ministry. Singh’s Reiteration Of The Decision May Be An Indication That The Ministry Is Expecting
The Finance Ministry’s Nod Soon.
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4.
Laws For The Termination: Either Party Has A Right To Terminate This Agreement On
Immediate Written Notice To The Other In The Event Of:
a.
Material Breach Of This Agreement By The Other Party Which Has Not Been Cured Within
Thirty (30) Days Of Being Required In Writing To Do So;
b.
The Bankruptcy, Insolvency Or Appointment Of Receiver Over The Assets Of The Other
Party;
c.
The DTH License Or Any Other Material License Necessary For DTH Co. To Operate Its DTH
Service Being Revoked At Anytime Other Than Due To The Fault Of DTH Co.
GBN Shall Have The Right To Terminate This Agreement On Written Notice To DTH Co. If
(i)
DTH Co. Breaches Any Of The Anti Piracy Requirements And Fails To Cure Such Breach
Within Two (2) Days Of Being Required In Writing To Do So, Or
(ii)
GBN Discontinues CNN-IBN With Respect To All Distributors In The Territory And Provides
DTH Co. With At Least Ninety (90) Days Prior Written Notice.
DTH Co. Shall Have The Right To Terminate This Agreement On Written Notice To GBN If DTH Co.
Discontinues Its DTH Business And Provides At Least Ninety (90) Days Prior Written Notice.
d.
Termination Of This Agreement Shall Not Affect Any Continuing Obligations Of Each Of
The Parties, Including Any Rights And Obligations Relating To Indemnification And Audit.
Trade Restrictions And Tariffs
Rationale For Making Amendment To The Direct To Home Broadcasting Services
(Standards Of Quality Of Service And Redresses Of Grievances) Regulations, 2007:
1.
No Visiting Or Repair And Maintenance Charges Of DTH Equipment During Warranty
Period. TRAI: The DTH Operators Have Been Prohibited From Charging Any Fee Towards Visiting
Charges Or Repair And Maintenance Charges Of DTH Consumer Premises Equipment During The
Period Of Warranty For Such DTH Consumer Premises Equipment Acquired On Outright Purchase
Basis.
2.
The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or
Till Validity Expiry, Of A Subscriber's Enrollment. TRAI: The DTH Operators Have Been Prohibited
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From Changing The Composition Of Their Subscription Packages During First Six Months Of
Enrolment To The Subscription Package Or During The Period Of Validity Of A Prepaid
Subscription Package, Whichever Is Longer.
3.
In Case A Channel Is Removed From A Subscription Package In The First 6 Months Of
Enrollment, The DTH Operator Must Reduce The Price Proportionately, Or Replace The Removed
Channel With One Of The Same Genre And Language. TRAI: The DTH Operators Have Been
Mandated To Proportionately Reduce The Subscription Charges For A Package From Which Any
Channel Is Removed For First Six Months Of Enrolment Or During The Period Of Validity Of A
Prepaid Subscription Package, Whichever Is Longer Or To Replace The Channel With A Channel Of
Same Genre And Language.
4.
The Option Of Choosing The Package With Reduced Charges Or The Package With
Replaced Channel Has Been Given To The Subscriber.
5.
In Case A Removed Channel Needs To Be Replaced, The Replacement Option Will Be In The
Hands Of The DTH Operator. TRAI: Option To Select The Channel Of The Same Genre And
Language In A Subscription Package To Replace A Channel Which Has Become Unavailable On The
DTH Platform, Has Been Given To The DTH Operator.
6.
Your DTH Operator Needs To Give A Prior Notice Of Fifteen Days To You Before Changing
The Composition Of Any Subscription Package.
7.
Subscribers Are Allowed To Request Their DTH Operator To Suspend Their Services
8.
For Up To 3 Months. However, This Suspension Period Should Not Comprise The Same
Calendar Month. TRAI: DTH Operators Have Been Mandated To Entertain Requests Of DTH
Subscribers For Suspension Of Services If Requested Period Of Suspension Does Not Exceed
Three Calendar Months And Does Not Comprise Part Of A Calendar Month.
The Above Rules Are Compulsory For DTH Operators To Adhere To.
Implication:
The Licensing Norms Of This Industry Is Not So Much Strict. Because, Norms Provide Easy Entry
And Exit To DTH Players. But, The Service Norms Are Somewhat Strict. Companies Have To Give
Good Services To Their Customers Especially To Set Top Box. They Don’t Take Any Repairing
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Chargers During Warranty Periods. DTH Providers Also Can’t Change The Composition Of
Subscription Of Customer’s Schemes Till The Expiry Date Of Their Enrolment.
FDI Cap In DTH To Go Up To 74%
The Ministry Of Information And Broadcasting (I&B) Reiterated That It Is Working Towards
Raising The FDI Cap In The Media Distribution Platforms Like Direct-To-Home (DTH) To 74% From
The Current 49%. “We Are Considering The Case Of Raising The FDI Ceiling In DTH To 74%”- Said By
Uday Verma, Additional Secretary, At The IDNS Conference.
Implication
By The FDI (Foreign Direct Investment), The Quality Of Domestic Institutional Environment Has
Been Improved. An Effective Education And Training System Upgrades The Skill Level Of The
Workforce And Improves The Socio-Political Climate In The Country. FDI Includes Infrastructure
Availability, Quality Of The Banking System, Market Size, Repatriation Of Profits, Characteristics
Of Trade And Competition Policy Consistency And Predictability. Ministry Of Information &
Broadcasting Has Requested The Authority To Give Its Recommendations On Foreign Investment
Limits For Various Segments Of Broadcasting Sector. This Consultation Paper Raises Issues
Relating To Foreign Investment Limits For Broadcasting Sector. The Telecom Regulatory
Authority Of India (TRAI) Solicits The Views Of All The Stakeholders On The Issues Raised In The
Consultation Paper.
Government Stability
The Era Of Coalition Politics Had Arrived, And It May Be Some Time Before A Single Party
Government Comes Into Power. The Regionalization Of Indian Politics Has Also Led To State-Level
Innovation And Greater Competition Between The State Governments To Attract Foreign Capital.
Implication
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There Is Change In The Political Party And Their Rules For The Particular Company And Its Service
Provides Style. Instability In Rules And Regulation By The Government As A Ruling Party, As
Evidenced In The Pattern Of Shifting Alliances And Collapsing Governments That Has Marked
Recent Policies.
The Effect Of Political Factors On DTH Service Industry
Factors
Unfavorable
Political Parties
√
Neutral
Favorable
Regulatory Role Of Government
√
Rules For Licensing
√
Trade Restrictions And Tariffs
√
FDI Cap
√
Government Stability
√
(Here, Unfavorable-1 & Favorable-3)
Weighted Average = (2*1+4*3)/ 6 =2.33
Thus The Overall Effect Of Political Factors On This Industry Is Favorable.
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Economic Factors
Economic Factors Affect The Purchasing Power Of Potential Customers And The Firm's Cost Of
Capital. The Following Are Examples Of Factors In The Macro Economy:
Currency Stability
Exchange Rate:28
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
Exchange Rate (INR/US$))
47.05
48.50
46.42
44.87
43.79
44.98
40.95
42.53
47.88
Figure 9 Exchange Rate
Source: Tradingeconomics.Com
Implication: The Currency Rate Of India Is Ranging From Rs.40 To Rs.50 Per Dollar. The Currency
Rate Affects To The Importer. The Government Is Helping To The Industry As Reduced Import
Duty Of STB (Set Top Box) To Zero Percent From 7.5 %. But The Final Amount Paid By Importer
Will Depend On Exchange Rate. The Overall Impact Of This Exchange Rate Will Mix, As The Rate
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Of Exchange Is Fluctuated. The Overall Impact Of Exchange Rate In Current Scenario Is Not So
Much Favorable. Because Of The Rupee Is Depreciated.
GDP (Gross Domestic Product)29
Year
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10 (1st Q.)
GDP Growth Rate (%)
4.40
5.80
3.80
8.50
7.50
9.40
9.60
9.00
6.70
6.10
Figure 10 GDP (Gross Domestic Product)
Source: Macroeconomic And Monetary Developments Second Quarter Review 2009-10
Implication: The Growth Rate Of The Country Is At Around 6.10% And Sector Growth Around 25%,
So It Is Directly Showing That The Industry Is Very Lucrative. The Growth Rate Of Industry Will
Attract New Players And May FDI Side Because FDI Is Allowed To 74%. The GDP Rate Of India Is
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61
Between 4.40% To 6.10% Respect To 2000-01 To 2009-10 (First Quarter). The GDP Rate Is Sign Of
Boosting The Overall Industry Development And Has Given Good Support To Our Industry In The
Form Of Reduction In Regulations.
Inflation Rate30
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Inflation Rate
(Consumer Prices) (%)
6.7
5.4
5.4
5.4
3.8
4.2
4.2
5.3
6.4
8.3
Figure 11 Inflation Rate
Source: Indexmundi.Com
Implication: As We Can Say That The Inflation Rate Is Showing Continuously Flexible Trend. As
The Price Of All Things Goes High, Consumers Don’t Have Enough Money To Spend On Their Extra
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Facilities Like Pay-Per-View. It Is Obvious That Inflation And Our Industry Have Positive
Relationship. Because Of The Inflation Is Directly Affected To This Industry.
GDP Based On PPP
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
GDP Based On PPP Valuation Of Country GDP ($)
1618.05
1719.19
1876.54
2096.09
2357.80
2673.59
3007.90
3297.84
3528.61
Source: Indexmundi.Com
Figure 12 GDP based on PPP
Implication: As We Can Say That Increasing Purchasing Power Parity Is A Good Sign Of Any
Country. This Affects To Our Industry Very Positively. As Increase In Purchasing Power Parity,
People Can Spend Extra On Entertainment Expenses. During Last 9 Years It Is Increased By
Around 118%.
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Interest Rate:
Year
Interest Rate (%)
2001
6.66
2002
5.88
2003
4.88
2004
4.54
2005
4.96
2006
5.71
2007
6.00
2008
5.92
2009
3.41
Figure 13 Interest Rate
Source: Tradingeconomics.Com
Implication: In India Interest Rate Is Very Low. Because Of It People Can’t Get Good Return On
Their Savings. It Is Not Directly Affect To This Industry. Because It Don’t Have Any Direct Relation
Between The Using Of DTH Service And Savings Of People.
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Budget Impact On DTH Industry
Union Budget 2008-09 Has Brought Some Positive Highlights For The DTH Industry.
At Present There Is Zero Duty On Import Of Set Top Boxes From Existing 7.5 Percent. The Finance
Minister Has Also Removed Duty On Import Of Specified Parts Of The Set Top Boxes. This Will
Provide Leverage And Opportunity For DTH Players To Evaluate The Option Of Manufacturing Set
Top Boxes (STB) Locally. Since The CVD (Counter Veiling Duty) Is Reduced From 16 Percent To 14
Percent, The Cost Of The C.P.E (Customer Premises Equipment) Will Go Down To The Similar
Affect And Will Benefit The DTH Operator Who Already Providing Considerable Subsidies To
Consumer And Will Further Accelerate The Date Of Digitalization In The Country.
The Gujarat Government, In Its Budget For The Fiscal 2009-10, Preferred Not To Impose Any New
Taxes Except Entertainment Tax On Direct-To-Home (DTH) Service. The Government Has
Proposed Only Entertainment Tax On DTH Connections At Rs 200 Per Connection Annually. The
New Tax Is Estimated To Contribute A Meagre Rs 6 Crore To The State Exchequer.
The Effect Of Economic Factors On DTH Service Industry
Factors
Unfavorable
Neutral
Favorable
Currency Stability
√
GDP (Gross Domestic Product)
√
Inflation Rate
√
GDP Based On PPP
√
Interest Rate
√
Budget Impact
√
(Here, Unfavorable-1 & Favorable-3)
Weighted Average = (1*1+5*3)/ 6 = 2.67
Thus The Overall Effect Of Economic Factors On This Industry Is Favorable.
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Social Factors
Social Factors Include The Cultural Aspects And Include Health Consciousness, Population Growth
Rate, Age Distribution, Career Attitudes And Emphasis On Safety. Trends In Social Factors Affect
The Demand For A Company's Products And How That Company Operates Its Business.
Consumer Attitudes And Opinions
Consumer Attitude And Opinion Of The Product Affect To More Company’s Growth And
Development. DTH Customer Is Successful To Satisfy The Customer Demand And Their Needs.
And Consumer Attitude Towards DTH Is Positive And It Is Going To Increase. When DTH Introduce
In INDIA, This Industry Do Not Get Support From The Consumer. DTH Is Very Useful To Wondering
Consumer Class. Due To Our Survey, We Show That In “Slum Area Nearby VASNA, Ahmadabad
There Are More Than 20 DTH Is Installed And Nearby That One Building There Is Only Three DTH
Connections. But, There Are Still Some Other Viewers Who Can Prefer Cable Operators As Per
Traditional Thinks.
Brand, Company, Technology Image
Now This Industry Is Development Stage. For This Industry It Is Difficult For Them To Grab The
Market Share Of Cable TV And IPTV TV. This Industry Comes To Forward With New Technology
And New Schemes To Make Image Of The Company In Consumer Mind. Dish TV, Tata Sky And Big
TV Is Able And We Can Say Success To Make Their Awareness In Market. MPEG-4 Technology Is
More Efficient In Broadcasting Superb Quality Video And More Channels As Well. MPEG4
Standard With DVB S2 Technology Will Be Used By The Company To Provide Great Picture Quality
And Sound Standard. Various Technology Used By Different Company Provide Greater
Satisfaction To Consumer. Dish TV Is Able To Convince Consumer. And To Say Quality Wise Tata
Sky.
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Buying Access And Trends
Dish TV Is Successful To Become Brand And To Grab The Market Share Of The Industry. And After
That TATA Sky Is Second Potion After Dish TV. TATA Sky Come Recent More Advertisement And
New Active Services Like Recent Making Food, News Games And Many More. Tata Sky Also Come
With Unique Service Is That Consumer Can Record Serial /Live Math On DTH Set Up Box And We
Can See Any Time. And Third Potion Going To SUN TV Is Also Satisfied To Consumer.
Age Distribution And Lifestyle Trend31
Age Structure:
Age
Percent%
Male /Female
0-14 Years
31.1%
(Male 190,075,426/Female 172,799,553)
15-64 Years
63.6%
(Male 381,446,079/Female 359,802,209)
65 Years And Over
5.3%
(Male 29,364,920/Female 32,591,030) (2009
Est.)
Median Age
Total Median Age
25.3 Years
Male:
24.9years
Female:
25.8years
Source: Www.Cia.Gov/Library/Publications/The-World-Factbook/Geos/In.Html
As Per Above Table 15-64 Years Population Is Very High And Median Age Is 25.3 Year. So India’s
Population Has A High Tendency To Spend Than Save. So Demand Of The Product Is Increase. DTH
Industry Is Also Type Of Entertainment As We Know 15-64 Years Have More Changes In Lifestyle.
They Are Ready To Adopt New Innovation And New Changes In These Age Awareness Increasing
Regarding New Era And Increasing The Income Level.
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Implication:
Indian Population Age Median Is 25.3 Years So We Can Say Large Amount Of Population Is From
Young Generation. So Here Dth Industry Has Positive Impact. Because They Want New
Innovation. And This Industry Will Come New Active Service, Internet Base Service Etc.
Family Form And Population Shift
Implication:
Awareness Of The People Is Increasing. To Get Better Facility And Education People Are Going To
Shift Rural To Urban Area. Because Of That Family Form Become Nuclear Form. Our Urbanization
Population Is 29% Of Total Population (2008) And Rate Of Urbanization Is 2.4% Annual Rate Of
Change (2005-10). So Here Industry Has Huge Untapped Market In Urban Area As Well As In Rural
Area.
Cultural Implications Of DTH

The Social Cause Of The Effect Of Foreign TV Channels On The Indian Citizen Is Of
Paramount Importance And Cannot Be Sacrificed. From A Technology And Consumer Viewpoint
The Entry Of DTH Technology In India Is A Welcome Step, But As Another Side Of A Coin It
Threatens To Spoil The Culture Of The Country. Easy Access To Foreign Channels, Increasing
Television Viewing Hours, Overexposure To Western Culture All This May Negatively Affect The
Mindsets Of People, Especially The Children.

Therefore, DTH Should Not Be Green-Signalled From A Regulatory Viewpoint. Almost Every
Country Has Had Some Sort Of Regulatory Framework Built Before Allowing DTH In Their Country.

Now The Company Provide The Various Service Like Active Service Which Provide Food
Recipe, Game Yoga Instruction Etc. This Is Very Helpful To Society.
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The Effect Of Social Factors On DTH Service Industry
Factors
Consumer Attitudes And Opinions
Unfavorable
Neutral
Favorable
√
Brand, Company, Technology Image
√
Buying Access And Trends
√
Age Distribution And Lifestyle Trend
√
Family Form And Population Shift
√
Cultural Implications Of DTH
√
(Here, Unfavorable-1 & Favorable-3)
Weighted Average = (1*2+5*3)/ 6 = 2.83
Thus The Overall Effect Of Social Factors On This Industry Is Favorable.
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Technological Factors
Technological Factors Can Lower Barriers To Entry, Reduce Minimum Efficient Production Levels,
And Influence Outsourcing Decisions. Some Technological Factors Include:
DTH Technology
As Per Technology DTH Is A Digital Satellite Service That Provides Television Services Direct To
Subscribers Anywhere In The Country. Since It Makes Use Of Wireless Technology, Programs Are
Sent To The Subscriber's Television Direct From The Satellite, Eliminating The Need For Cables
And Any Cable Infrastructure.
Its Technology Eliminates The Need Of Any Intermediary Between The Service Providers And The
Viewer. The Technology Used Is Wireless (With No Cables Running Into The Viewers Home)
Making It Easier To Reach The Remote Areas Of The Country.
The Viewer Has A Dish Antenna32 Installed Outside Of The Location (In Open Air) To Catches The
Signals From The Satellite And Then Directs It To The Set Top Box Installed. The Set-Top-Box Is
Fitted With A Viewing Card-VC (Similar To Sim-Card) Which Is Uniquely Numbered And Contains
Information About The Channels Or User Selected Plan To Consume/ Entertain That Have Been
Subscribed To By The Viewer. It Is Only For Private Service Provider’s Recharge Policy Also
Includes An Agent For Recharge As Well As Change Service Plan Whether In The Case Of DD Direct
–Pulse User Have Not To Pay After Pay First Installation Charge With All Equipment.
Dish Antenna Has More Than Two Different Ranges Available In Market. As Per Doordarshan They
Provide 120 Mhz And 90 Mhz Frequency Enable Dish Antenna Which Is Suitable In Rainy Season As
Well As A Long Distance Area.
Implication:
A Technology Makes Easy Entertainment For Audience. By This Service Technology A Customer
Can Select Their Suitable And Required Channel Plan And Pay For That. But, Doordarshan Provides
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One Time Pay And Get Entertainment At Home Or Your Location (Office, Shop As Well As On
Vehicle Service In Selected South-Indian Region) For Life Time. So, This Technology Is Very
Effective For The Users.
Govt. Course Of Action Towards Technology
TRAI Has Directed That The DTH Service Providers Will Need To Provide The Rival Channels Too.
However Unlike CAS In Cable TV System, For Which TRAI Has Set Up A Cap For The Pay Channel
Charges, No Such Cap Exists For The DTH Tariffs. Therefore, Viewers May Get Hit By Subscription
Fee Hikes.
Government Launched INSAT 4A, India’s Most Powerful Communication Satellite. It Provided
Direct-To-Home (DTH) Telecasts From Early 2006. This Was Good News For All Those Of Us Who
Had To Suffer The Cable TV Operators.33
At Present There Is Zero Duty On Import Of Set Top Boxes From Existing 7.5 Percent. The Finance
Minister Has Also Removed Duty On Import Of Specified Parts Of The Set Top Boxes. This Will
Provide Leverage And Opportunity For DTH Players To Evaluate The Option Of Manufacturing STB
(Set Top Boxes) Locally. Since The CVD (Counter Veiling Duty) Is Reduced From 16 Percent To 14
Percent, The Cost Of The C.P.E (Customer Premises Equipment) Will Go Down To The Similar Affect
And Will Benefit The DTH Operator Who Already Providing Considerable Subsidies To Consumer
And Will Further Accelerate The Date Of Digitalization In The Country.
And Also A Government Player Doordarshan, DTH Service Providers Have To Add Channels In
Their Predefined Or Least Channel Package.
Implication:
Thus, Government Also Helps To This Industry By Providing Benefit In Taxes And Also Providing
Technical Supports. Because Of This Consumers Get Benefit Of Low Charge By The DTH Service
Providers.
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Technology Incentives
The Prohibition On The Reception And Distribution Of Television Signal In Ku Band Has Been
Withdrawn By The Government Vide Notification No. GSR 18 (E) Dated 9th January 2001 Of The
Department Of Telecommunications.34
Direct-To-Home Is A Distribution Platform For MultiChannel TV Programs On Ku Band (High Frequency Of
11.7 To 14.55 Gigahertz) By Using A Satellite System
Which Transmits Signals Directly To Subscriber Premises.
The Term Predates DBS Satellites35 And Is Often Used In
Reference To Services Carried By Lower Power Satellites
Which Required Larger Dishes.
Following Are The Simplified Steps On How DTH Works With Ku Band Satellite:
1.
Broadcaster Sends The Signals.
2.
The Satellite Receives The Signals At Ku-Band36
3.
The Dish Antenna At Subscriber’s Home Receives The Signals
4.
The Set Top Box Decodes The Signal And Sends It To TV Set
Implication:
By This Technological Service All DTH Service Provider Can Get Direct Service Distribution Initiative
To Their Customer. Service Providers Also Get An Advantage Of This Technology By PPV (Pay-PerView) Service To The Customer.
Same As A DTH Service User Can Get Direct Privet Channel Service With Better Quality And Sound
Better Then Private Cable Operator Service As Well As By Their Own Dish Antenna And STB They
Can Easily Operate And Change Its Location Anywhere In India And Can Get Initiative Their
Customize Channel Out Of Private Cable Service Providers Barrier.
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About Ku-Band37
What Is Ku Band?

The Ku Band (Kurtz-Under Band) Is Primarily Used For
Satellite
Communications,
Particularly
For
Editing
And
Broadcasting Satellite Television. This Band Is Split Into Multiple
Segments
Broken
Down
Into
Geographical
Regions,
As
Determined By The ITU (International Telecommunication Union).

The Ku Band Is A Portion Of The Electromagnetic
Spectrum In The Microwave Range Of Frequencies Ranging From
11.7 To 12.7ghz. (Downlink Frequencies) And 14 To 14.5ghz (Uplink Frequencies).

The Most Common Ku Band Digital Reception Format Is DVB (Main Profile Video Format)
.Vs The Studio Profile Digital Video Format Or The Full-Blown Digicipher II 4DTV Format.

The First Commercial Television Network To Extensively Utilize The Ku Band For Most Of
Its Affiliate Feeds Was NBC, Back In 1983.

The ITU Region 2 Segments Covering The Majority Of The Americas Are Between 11.7 And
12.2 Ghz, With Over 21 FSS North American Ku-Band Satellites Currently Orbiting.

Each Requires A 0.8-M To 1.5-M Antenna And Carries Twelve To Twenty Four
Transponders, Of Which Consume 20 To 120 Watts (Per Transponder), For Clear Reception.

The 12.2 To 12.7 Ghz Segment Of The Ku Band Spectrum Is Allocated To The Broadcasting
Satellite Service (BSS). These Direct Broadcast Satellites Typically Carry 16 To 32 Transponders.

Each Provides 27 Mhz In Bandwidth, And Consumes 100 To 240 Watts Each,
Accommodating Receiver Antennas Down To 450 Mm (18 Inches ).

The ITU Region 1 Segments Of The Ku Spectrum Represent Africa And Europe (11.45 To 11.7
Ghz Band Range And 12.5 To 12.75 Ghz Band Range) Is Reserved For The Fixed Satellite Service
(FSS), With The Uplink Frequency Range Between 14.0 And 14.5 Ghz).
Ku Band Difficulties

When Frequencies Higher Than 10 Ghz Are Transmitted And Received Used In A Heavy
Rain Fall Area, A Noticeable Degradation Occurs, Due To The Problems Caused By And
Proportional To The Amount Of Rain Fall (Commonly Known As Known As "Rain Fade").
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
This Problem Can Be Combatted, However, By Deploying An Appropriate Link Budget
Strategy When Designing The Satellite Network, And Allocating A Higher Power Consumption To
Overcome Rain Fade Loss. In Terms Of End-Viewer TV Reception,

It Takes Heavy Rain Falls In Excess Of 100 Mm Per Hour To Have A Noticeable Effect.

The Higher Frequency Spectrum Of The Ku Band Is Particularly Susceptible To Signal
Degradation- Considerably More So Than C Band Satellite Frequency Spectrum, Though The Ku
Band Is Less Vulnerable To Rain Fade Than The Ka Band Frequency Spectrum.

A Similar Phenomena, Called "Snow Fade" (When Snow Accumulation Significantly Alters
The Focal Point Of Your Dish) Can Also Occur During Winter Season.

Also, The Ku Band Satellites Typically Require Considerably More Power To Transmit Than
The C Band Satellites. However, Both Ku And Ka Band Satellite Dishes To Be Smaller (Varying In
Size From 2' To 5' In Diameter.)
Ku Band Satellite Service Downlink Usage Frequency Range
The Ku Band Downlink Uses Frequencies Between 11.7 And 12.7ghz.
The Ku Band Downlink Frequencies Are Further Subdivided According To Their Assigned Use:
Ku Band Usage
: Downlink
Fixed Satellite Service
: 11.7 - 12.2ghz
Broadcast Satellite Service : 12.2 - 12.7ghz

Services That Can Be Found On The Ku-Band Include Educational Networks, Business
Networks, Sports Backhauls, Tele-Conferences, Mobile News Truck Feeds, International
Programming, And Various SCPC (Single Channel Per Carrier) Transmissions Of Analog Audio, As
Well As FM Audio Services.

If You Already Have A Operational C-Band System In Place, You Can Retrofit It To Accept
Ku Band Frequencies.
S. V. Institute of Management, KADI 2008-10
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
In Order To Do So, You Will Need To Obtain A Ku-Band LNB As Well As A C/Ku Band Feed-
Horn, Plus Some Coax Cable For Your Ku-Band LNB.

As For The Coax Cable Recommended- RG-6 Is Optimal For Low Loss In The 950-1450
Frequency Range- What Ku-Band LNB Processes. However, If RG-59 Is Your Only Viable Option,
It'll Work In A Pinch.
Ku Band Dish Antenna Compatibility

If You Have A Solid Dish, You Should Have No Problem Converting From C Band, To Ku
Band.

However, With A Mesh Dish- If The "Holes" In The Mesh Are Greater Than A Quarter Inch,
The Chances Of Computability Are Not In Your Favor, Due To The Fact That Your Dish Won't
Reflect Ku-Band Signals Properly.

Therefore, You'll Want To Strongly Consider Upgrading To Either A Solid Dish, Or A Mesh
Dish In Which The Hole Size Under 1/4", And Ideally You'll Want A Dish That Is 1 Piece (Or At Least
Very Few Pieces); As 4 Section Dish Is More Optimal Than An 8 Section Dish.

The Fewer The Sections, The More Accurate Your Parabola Shape Is And Thereby The
More Difficult It Is For Your Dish To Become Warped (The Smaller The Number Of Seams- The
Better). And Insofar As Dish Mounts Go, The H2H (Horizon-To-Horizon) Dish Mount Is More
Desirable Than A Polar Mount.

This Is Due To The Fact That The Ku-Band Demands That The Dish Antenna System Is Well-
Targeted And Able To Closely Follow The Orbital Arc, Of Which The H2H Mount Does Quite
Admirably, As Compared To A Polar Mount. Also, Bear In Mind That You Will Be Adjusting Both
The Azimuth And Elevation, Which Can Be A Bit Tricky Occasionally.
Importance Of Satellite Antenna Dish Parabola

The Parabolic Shape Of Your Dish Is Of Critical Importance, As Warpage Causes Signal
Degradation Via Mis-Reflection, Seriously Down-Grading Your Overall System Performance. Some
Tape And String Is All That Is Required To Do A Quick War Page Check And Some Tape.
S. V. Institute of Management, KADI 2008-10
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
Anchor A Piece Of String, Stretched As Tight As Possible, "North" To "South" Across Your
Dish Face, Edge To Edge. You'll Want To Do The Same Thing Again, With Another Piece Of String,
Only "East" To "West" Across The Dish Face- At 90 Degree Angles. Be Sure That Both Strings Are
Tight
If The Strings Come Together Anywhere But The Direct Center, Then Your Dish Has
Sustained Warp Damage And Needs To Be Bent Back Into Proper Parabola Shape, For Optimal
Performance. If They Connect In The Center Of Your Dish, Likely That Your Dish Is Not Warped.

So Therefore, You'll Want To Use Either The Tri-Supports Or Quad Supports, As They Will
Greatly Assist In Keeping Your Ku-Band Feed-Horn Highly Stable, Even In High Winds.

When Your Button-Hook Feed Moving In The Wind, Your Ku-Band Reception Can Easily
Drop Out. By Putting Guy-Wires On The Button-Hook Feed, You'll Create The Much-Needed
Support, In The Event You Are Not Able To Obtain A Tri Support Or Quad Support.
Rate Of Technological Change
In Yeas 1969 Doordarshan (Prasar Bharti) Has Been Started By Government Of India. Then
After Nearby Year 1991 Private TV Channels Are Come Out In The Market. At The Time Of
Liberalization In 1991, Many Foreign Channels Came Into India. So, Private Cable Operates Got
Opportunities. And Last, In Year 2001 DTH Service Was Started In India Where As IPTV Technology
Is Emerging As Broadband Television Service.
Implication:
In India Rate Of Technological Change Is Low. It Directly Affects Indian DTH Industry Market. But,
Now Time Is Changed. So, Service Provider Can Take This Initiative As A Monopolistic Business
Market.
Industry R&D Spend
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As This Industry Mostly Depends On Technology, Each & Every Companies Always Try To
Maintain It. In Tatasky And Now Also Available In Other Players STB To Record Same Time Show
In Other Channel, No Need To Waste For That Particular Program. For VC Recharge They Cover
Each Kind Of Source/ Option To Recharge It. And Also Companies Spend Behind New Special
Interactive Services As Well Quality To Broadcasting. Airtel Digital Service New Feature Also In
Set-Top-Box Is Its Remote Control As Can Use As TV Remote With As Possible As Least Switches In
It.
And Also As A Competitor IPTV Is There, But Players Like Bigtv (Reliance ADAG), Dishtv (Essel
Group - Zee Network), And Airtel Digitaltv (Airtel Group) Are Trying To Work On It. But As An
Initiator MTNL And BSNL (Govt. Sectors) Are There.
Satellite Introduction38
India Has 400 Plus Channels Beaming Into Homes Courtesy Six DTH Operators And More Than
60,000 Cable Ops. Which Satellites Are The Networks Using To Transmit These Channels?
Indiantelevision.Com’s Satellite Reckoner Helps You Navigate Through The Maze.
K-BAND
Abs-1
Eurobird - 2
Eutelsat - W5
Express-Am2
Insat-3b,4a
Insat4b
Intelsat 709
Intelsat-12
Measat-3
Nss 6
St - 1
Telstar - 10
Satellite Footprint
Zee Network39:
Here We Can Say That Zee Network (Essel Group) Has Strong Backup For DTH Service Across The
World Wide Service As Per Following Satellite Foot Print Of Zee Network.
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Asia
Zee
Network
Uses
C
-
Band
Transponder Space On Asiasat-3S,
Which Covers India, The Middle East,
Australia, The SAARC Region And
The Far East.
Two Uplink Centres At Singapore &
New Delhi (Noida) Are Used For
Optimum Content Management. The
Noida Uplink Facility Hosts The
Uplink For Zee News, Zee Music And
Our Four Regional Channels (Zee
Punjabi, Zee Gujarati, Zee Marathi,
And Zee Bangla) In Order To
Maximize On-Air News Content. The
Singapore Uplink Facility Hosts Zee
TV, Zee Cinema, Cafe, And Studio &
Nickelodeon.
Europe
Zee Network Is Available In UK On
The Bskyb DTH Platform. Four
Channels Are Available On The
Platform (Zee TV, Zee Cinema, Zee
Music & Zee Punjabi - UK). The
Playouts For All The Channels Except Figure 14 Zee Network Satellite Service Area.
Zee Punjabi Are Located In London,
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With A Satellite Link From Singapore Which Carries Zee TV, News And Live Programming. Zee
Punjabi UK Is Also Played Out From Singapore And Carried Via Satellite Link Up To UK. The Zee TV
UK Playout Is Expected To Shift To Singapore By Feb. 2003 For Better Network Efficiency.
The Hotbird Platform (Hotbird 3) Covers The Transmission For The Rest Of Europe, With The
Uplink For Eutelsat Satellite (Www.Eutelsat.Com) Being Sourced From Belgacom.
Americas
Zee TV & Zee Gold Channels Are Available In The Americas. The Channels Are Available On The
Echostar (DISH) Network As Well As Local Cable Systems. Zee Network Uses A Local Playout At
Cheyenne With A Satellite Link On PAS - 9 From UK For Live News And Events.
Africa
Zee TV Is Widely Available In Africa On The Multichoice DTH Platform And A Number Of Cable
Systems. Zee TV Africa Is Played Out From Singapore Via Intelsat. Worldwide Coverage The Map
Given Below Shows Zee's Global Coverage.
Worldwide Coverage
The Map Given Below
Which
Is
Shows
Zee's Global Coverage.
Sun Direct40:
Sun
Direct
Network)
(Sun
Has
Also
Technology Initiative For
Broadcasting
By
Their
Service Figure 15 SUN Network Service Area
Satellite
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Sun Network's Channels Can Be Viewed In 27 Countries Including U.S.A, Canada, Europe,
Singapore, Malaysia, Srilanka, South Africa, Australia And New Zealand. With Their Own Movie
Production, Tv Channels, Production, Radio Channels (Red.FM, Suryan.FM).
Frequency: 4044 H 28000 SUN TV MUX41
Implication:
An Initiator And Major Players Which Has Strong Satellite Frequency Service To Broadcast Around
The World Now Or Future Expansion.
Technology Push
In India Which Has A Large Untapped Market, The Scope For This Service Is So Much. For That
Company Have To Try Rich Maximum Target Audience. For That They Have To Spend More On
Innovative Package With Special Interactive Services.
Videocon Group Has A Special Power To Push This Technology As In Their New LCD Or Flat Tv Has
Facility Of STB And Also Available Separately. By That Way A Customers Are Trying To By It For
Batter Service.
As Per Interactive Services, Pay-Per-View, Movie-On-Demand, And Program Recording Facility
Make Somewhat Effect On Internet Service, Cable Operate To Full Pay For Limited Channel Use
Also, DVD Player To View A Program Or Enjoy Movie With Recording Facility, And Also Effect On
STB Producer By In Built STB In TV Equipment.
Productivity Improvements
Service Providers Are Trying To Improve Their Productivity By Downlink Frequencies As Well As
Uplink Frequencies For Batter Broadcasting Service. And Also Muli-User Service Dish And STB
Equipment They Are Trying Well. Dish TV Already Started MDU Service.
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80
Multi Dwelling Unit42
What Is MDU?
The Multi Dwelling Unit, It Is Customized Solution For Connecting Multiple Houses Within The
Same Multi Storied Building With A Single/ Two Dish Antennae To Receive DTH Services. Common
Dish Installed On The
Terrace
Of
The
Multi
Storied Building Powers
TV Sets In Multiple Homes
In The Building Through A
Cable, Which Runs Into
Each
Flat.
And
Once
Installed, Members Have
The Choice Of Subscribing
To The Connection.
Advantage Of MDU

Figure 16 The Multi Dwelling Unit Service to Multiuser
Each And Every Customer In The Building Does Not Have To Have A Separate Dish Antenna
To Receive DTH Services. Common Dish In The Building Can Be Used.

Additional Dish Is Not Required To Be Installed For Any Additional Subscriber In The
Building.

It Is Easy To Maintain One Or Two Dish Antenna In A Building Rather Than Maintaining
Number Of Dishes.
Why MDU?
DTH Is The Concept Of Receiving The Satellite Directly In The Home. A Small Dish Is To Be Installed
To Receive The Satellite In The Home. One Connection Needs One Dish To Receive Satellite. This
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Leads To Number Of Dishes In Any Multi Storied Building Having Many Subscribers. 50
Subscribers Mean 50 Dishes On The Roof.
MDU Is The Solution To Reduce The Number Of Dishes To One Or Two In A Multi Storied Building
For Number Of Subscribers In The Building.
The Effect Of Technological Factors On DTH Service Industry
Factors
Unfavorable
Neutral
Favorable
Technology
√
Govt. Course Of Action Towards
√
Technology
Technology Incentives
Rate Of Technological Change
√
√
Industry R&D Spend
√
Technology Push
√
Productivity Improvements
√
(Here, Unfavorable-1 & Favorable-3)
Weighted Average
= (1*2+6*3)/ 7 = 2.86
Thus The Overall Effect Of Social Factors On This Industry Is Favorable.
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Michel Porter’s Five Force Analysis
Threats Of New Entrants
There
Are
Many
Factors
Affecting
Bargaining Power Of Buyers. As They Are
Given Below:
Access To Distribution Net-Work:
For This Business Readily Availability Of Service To Target Segment Is Must. For That Companies
Have To Build Strong Distribution Network. Companies Like Airtel Digital TV , TATA Sky Have
Strong Distribution Network. Airtel Digital TV Has Only 1day Processing Time. And Tata Sky Has
Only 2day Processing Time.43 For New Companies Who Don’t Have Strong Distribution Network
Or Not Able To Meet Order In Least Time, This Business Is Very Tough Task For Them. So, It Is
High.

So, Threat From New Competitor Entry Is Low.
Advertising & Marketing Activity:
For This Starting Of DTH Service, It Is Required To Create Awareness Regarding Brand Name
Among The People. For That It Required Strong Advertising Budget. Now A Days, There Is Trend
Of Using Brand Ambassador To Promote Brand. Tata Sky Came Out With Aamir Khan, Dish TV
Came Out With Shahrukh Khan , Airtel Digitel Came Out With Saif Ali Khan & Kareena Kapoor,Etc.
To Create And Maintain Strong Present In The Market It Requires Efficient And Skilled Sales Force.
It’s Required Huge Investment And Expertise To Maintain It And It Is Not For Everyone’s Cup Of
Tea.

So, Threat From New Competitor Entry Is Moderate To Low.
Regulation & Norms:
TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH Service Industry.
DTH Service Covered Under The Direct To Home Broadcasting Services (Standards Of Quality Of
Service And Redresses Of Grievances) Regulations, 2007. Government Has Imposed Strong Rules
Like No Visiting Or Repair And Maintenance Charges Against DTH Equipment During Warranty
Period, The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or
Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

So, The Threat From New Entry Is Moderate To Low.
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Capital Requirement:
There Is Low Capital Requirement In This Industry. It Is Just Rs.10 Cr Which Is Non-Refundable.
And Also Need To Investment In Technology. So, It’s Not Easy For Any Corporate House. And Also
Need To Invest In Technology. It Is High.

So, The Threat From New Entry Is Low.
Cost Design:
In This Service Industry Low Cost Design Is An Important Factor. Dish TV Uses The Multi Dwelling
Unit (MDU). It Is Customized Solution For Connecting Multiple Houses Within The Same Multi
Storied Building With A Single/ Two Dish Antennae To Receive DTH Services. In This Service,
Common Dish Installed On The Terrace Of The Multi Storied Building Powers TV Sets In Multiple
Homes In The Building Through A Cable, Which Runs Into Each Flat.44 Thus, Dish TV Has Lo Cost
Design. But, It’s Not A Cup Of Tea For Each And Every Company To Implement Lo Cost Design.

So, The Threat From New Entry Is Moderate To Low.
Industry Growth:
Annual Compounded Growth Rate Of DTH Service Industry Is Around 30%, Which Shows Demand
Is Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have Driven Growth. So,
Market Is Attractive For The New Players.

So, The Threat From New Entry Is High.
Government Policy:
Government Is Providing Good Facilities To DTH Service Industry. As Government Reduced Import
Duty To Zero Percent From 7.5% On Set Top Box. And Also Reduced License Fee From 10% To 6%
And The CVD (Counter Veiling Duty) Is Reduced From 16% To 14%. This Shows Government
Provides Friendly Policy To DTH Service Providers. But, There Is Also Non-Refundable Fee Of Rs.10
Cr. At The Time Of New Entry.

So, The Threat From New Entry Is Moderate To High.
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Threats Of New Entrants
The Effect Of All Above Factors
Factors
Low
Access
To 
Distribution
Network (High)
Advertising
&
Marketing Activity
(High)
Regulation & Norms
(Moderate To High)
Capital Requirement 
(High)
Cost
Design
(Moderate To Low)
Industry
Growth
(High)
Government Policy
(Liberal)
Moderate
To Low
Moderate
Moderate
To High
High





Summary:
Access To Distribution Is High So Threats Of New Entrants Are Low. Advertising & Marketing
Activity Is Also High So Threats Of New Entrants Are Low. Regulations & Norms Are Strict So
Threats Of New Entrants Are Low. There Is Low Capital Requirement So Threats Of New Entrants
Are High. In Respect Of The Low Cost Design Threats Of New Entrants Is Moderate To Low. There
Is Low Level Of Switching Cost So Threats Of New Entrants Are High. The Buyer Demand Is
Growing Rapidly So Threats Of New Entrants Are High. And Government Policy Is Somewhat
Friendly So Threats Of New Entrants Are Moderate To High.
The Overall Threats Of New Entrants Is, Moderate To Low.
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Threats Of Substitutes
Determinants Of Substitution Threat
In This Industry Mainly Four Type Of Substitute Available And They Are Closely Related To Dth
Industry. Four Substitutes Are: IPTV, Cable Terrestrial, Television And CAS.

IPTV Provide Services Have Been Very Attractive Levels With The Subscription Charges
Depending On City And Provide Set Up Box Free With Refundable Security Deposits. And They
Provide Unique Features. IPTV Is Expected To Take Some Time To Catch Up S Infrastructure To
Cover Wider Scale.

As We Know Cable TV Have Huge Market. 73 Million Households Have Cable
Connection.

Doordharshan Is World‘S Largest Broadcast With Over 1400 Terrestrial Television
Transmitters. And The Reach Provided By This Route Is Phenomenal With Provided Coving 88%
Geographic Area Of India.

Introduction Of CAS By The Government In Specified Are Since 2007 And This Also Put
Push Towards Digitization Of Cable. If Regulated And Implemented Properly Could Pose A Threat
To DTH Player In Future.

New Technology Accepted By TRAI Is Headend In The Sky (HITS). DTH Have End User
Of Consumer, The HITS End User Is A Cable Operator.

So, Threats From Substitutes Are Moderate To High.
Costs Of Switching To Substitutes:
Package Price Of Services Is Not More Different From Substitute To Substitute. So Buyer Can
Easily Switch From One To Another. They Charge Low Price So That Customer Do Not Incur Big
Cost. They Can Transfer To Substitute.
IPTV Provide Subscription Charges Between Rs. 100 To Rs. 200 Per Month. And DTH Services Have
Lowest Price Rs. 90. (Starting Price) And Cable Provide Services Starts With Rs. 250. So We Can
Say Here No Huge Difference.
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
So Threat From Substitute Is HIGH.
Availability Of Substitute Products:
HITS, The New Technology Is Being Looked At Positive By TRAI.HITS Has The End Number Of
Cable Operator Who Delivers The Signals To The End No. Of Consumers.

Mobile Television Is Also Coming Soon In The Market. DOOR DHARSHAN Launched Its
Mobile TV Pilot With Handset Major Nokia And Samsung On DVB-H Platform.

LG LCD With New Blue Race Technology Which Can Record A Program At A Time Of
Broadcasting In CD /DVD. Its Affects To Videocon LCD Sales.

Here Threats From Substitutes Products Are Moderate To High Because Technology
Used By Substitute.
Threats Of Substitutes
The Effect Of All Above Factors
Factors
Low
Moderate
To Low
Determinants Of Substitution
Moderate
Moderate
To High
High

Threat (Low)
Costs
Of
Switching

To
Substitutes (Low)
Availability
Of
Substitutes

(Moderate To High)
Summary:
Threat From Substitute Is Moderate To High Because Substitutes Have Power On Market And
Also New Technology Is Positively Taken By Government. There Is No Huge Difference In Price.
So, Cost Of Switching Cost Is Low. Because Of It Threat Is High. And Availability Of Substitute Is
Moderate To High In Market. So, Threat Is Also Moderate To High.
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The Overall Threat Of Substitutes Is Moderate To High.
Bargaining Power Of Suppliers
DTH Industry Relies On Three Major Suppliers:
1.
2.
3.
Customer Premise Equipment (CPE)
Comprising Of The Satellite Dish
Set-Top-Box With The Necessary Access Card.
Satellite:
The Ku-Band Transponders Are In The Orbiting Satellites And Content Are Few Larger Suppliers.
With India Set To Overtake Japan As Asia’s Largest DTH Market. But Government Launches INSAT
4A, India’s Most Powerful Communication Satellite. It Will Provide Direct-To-Home (DTH)
Telecasts From Early 2006.
The Ku Band Transponder Is Generally Provided By Astrix, The Commercial Wing Of ISRO Either
Through Its Own Satellites Or By Leasing Transponders From Suppliers. With Only Two Domestic
Satellite Launches Between 2007 And 2010 An D Increasing DTH Players, Astrix Is In A Better
Position To Use DTH. Also The Crash Of INSAT 4C And NSS-8 Has Worsened The Situation Of DTH
Players. As There Is Not Much Of Regulation Particularly In Terms Of Channel Pricing, Acquiring
Content From The Broadcasters Is Also Difficult. DTH Vendors Are At The Mercy Of The
Broadcasters.45
Indian DTH Service Provider Can Take Initiative Of Indian Satellite For Large Area Coverage From
India As Well As Take Home Base Secure Service Satellite.
Set-Top Box:
As Per A STB Equipment Provider Is Concern Indian Govt. Give An Advantage Of Customs Duty On
Set-Top Box Was Reduced To NIL In The Budget 2006, Whereas, Inputs Attract Customs Duty Of
5/12.5%.
Most DTH Players Import Their Set-Top Boxes (STB) And Sell Their Products At A Discounted Price
To Consumers In A Bid To Grab Larger Volumes. A MPEG2 STB Could Cost A Company Between
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$32-50 And Its Consumer Acquisition Cost Is Around Rs 2,600-5,000 Per STB For The DTH Players.
Similarly, MPEG4 STB Could Cost A Firm Between $50-62 Taking The Subscriber Acquisition Cost
For A DTH Player Up To Rs 5,600 Per Set Top Box. So As A Service Provider Company Can Import
STB Like Tatasky Import Sky Broadcastings STB From USA For Low Cost And High Quality
Service?46
Here The Production Of DTH Instruments, Cables And Other Materials Is Very Costly For The DTH
Service Provider Companies So They Have To Be Dependent On The Suppliers Of This Equipment.
And Because Of This Reason Their Bargaining Power Is High.
There Are Some Points Which Are Affecting Bargaining Power Of Supplier:
Backward Integration:
Industry Players Can Get Qualitative Raw Material At Affordable Price. So, They Can Think To Do
Backward Integration In Terms Of Set Top Box, Etc. And Also All The Corporate House Can Do
This.

So, Bargaining Power Of Supplier Is Low.
Supplier Switching Cost:
The Decision Of Switch From One Supplier To Another Supplier Is Very Critical To Any
Manufacturer. Because At That Time They Have To Check The Cost Of Switching From One
Supplier To Another. But In This Industry It Is Very Low. There Are Many Players Who Provide Dish
And Set Top Box In The World.

So, Bargaining Power Of Supplier Is Low.
Forward Integration:
Supplier Of Raw Material Providers Can’t Easily Entered In This Industry. Because There Is Need Of
Huge Investment Required While Starting The Business In This Industry.

So, Bargaining Power Of Supplier Is Moderate To Low.
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Bargaining Power Of Suppliers
The Effect Of All Above Factors
Factors
Low
Backward

Integration (Low)
Supplier Switching 
Cost (Low)
Forward
Integration (Low)
Moderate
To Low
Moderate
Moderate
To High
High

Summary:
Bargaining Power Of Supplier Is Low Because There Is A Possibility Of Backward Integration. Inter
Firm Rivalry Is High Because Market Share Of The Players Have Not More Differences. Supplier
Switching Cost Is Low So Bargaining Power Of Supplier Is Also Low. And The Determinants On
Supply Power Are Not So Much. So, Bargaining Power Of Supplier Is Moderate To Low.
The Overall Bargaining Power Of Suppliers Is Low.
Bargaining Power Of Buyers
There Are Many Factors Affecting Bargaining Power Of Buyers. As They Are Given Below:
Buyer Switching Costs:
The Cost Of Service In DTH Service Industry Is Not That Much High What Consumer Cannot Afford
To Change. So In This Industry Consumer Can Easily Divert From One Brand To Another. There Are
Several Reasons To Change The Brand Like Price Level, Quality Of Set Top Box, Etc. In That Case
Service Provider Can’t Take Any Strong Action To Make Consumer Brand Loyal Each & Every
Players Are Provide DTH Service At Near To Same Price. That’s Why Consumer Can Easily Change
The Brands.

Due To Low Switching Cost From One Brand To Another, The Bargaining Power Of Buyer
Is Moderate To High.
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Brand Awareness:
Customers Are Becoming Literate And Take Interest To Get Aware About Different Brands And
Their Services Which Are Available In The Market. In DTH Service Industry There Are No More
Players But They Provide Many Different Services. Mostly People Are Aware About Brands And
Services, That’s Why They Can Easily Find Out Which Product Is Good In Price, Quality Of Services,
Etc. In This Industry Mostly Each & Every Service Providers Are Concentrating On High Advertising
To Increase Awareness Of Their Brands And Services.

Due To High Awareness Of Different Brands And Services, The Bargaining Power Of Buyer
Is Moderate To High.
Availability Of Substitute Products:
In Recent Time We Can Easily Find Substitute Product In This Industry. Substitute Products Are
Cable TV & IP TV. Customer Can Easily Get Both Of These Products With Minimum Charges.

Due To Easily Availability Of Substitute Products, The Bargaining Power Of Buyer Is High.
Buyers’ Purchase Frequency:
DTH Service Is Such Kind Of Products That Consumers Cannot Purchase It Frequently. But,
Consumer Has To Do Recharge Monthly. They Have To Buy Monthly Or Yearly Packages. Because
Of These Reasons, Purchase Frequency Is High.

Due To This, Bargaining Power Of Buyer Is Moderate To High.
Innovative Services:
In DTH Service Industry, Service Provider Every Time Launch Different Services Via Different Types
Of Recharges. Consumers Can Easily Get Recharge And Monthly As Per Their Need.
Example: Reliance Big TV Provides 10 Different Types Of Monthly Pack.

Due To This, Bargaining Power Of Buyer Is Moderate To High.
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Bargaining Power Of Buyers
The Effect Of All Above Factors
Factors
Low
Moderate
To Low
Buyer
Switching
Costs (Low)
Brands
Awareness
(High)
Availability Of
Substitute
Products
(High)
Purchase
Frequency
(High)
Innovative
Services (High)
Moderate
Moderate
To High
High





Summary:
Buyers Switching Cost Is Low So Bargaining Power Of Buyer Is Moderate To High. Awareness
About Different Brands Is Also High So Bargaining Power Of Buyer Is Moderate To High.
Substitute Products Are Easily Available So Power Of Buyer Is High. Purchase Of Frequently Is Low
So Power Of Buyer Is Also Low. There Are Many Innovative Services So Bargaining Power Of
Buyer Is Moderate To High.
The Overall Bargaining Power Of Buyers Is Moderate To High.
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Inter Firm Rivalry
No. Of Player In Industry:
No.
1
2
3
4
5
6
7
Company Name
Doordarshan (Prasar Bharti)
Zee Entertainment Enterprise
Tata Group And Star Group
Sumangali
Publications
Private
Limited
Bharti Telemedia Ltd.
Reliance BIG TV Limited
Videocon Ltd.
Brand Name
DD Direct+
Dish Tv
Tata Sky
Sun Direct
Launch Date:
2001
Oct’2003
Aug’06
Dec’07
Airtel
Bigtv
Videocon
Oct’08
Aug’08
May’09
After Government Approval In 2000 Dish TV Is One The Pioneer In Industry. In This
Year Company Cross 5 Million Subscribers. Dish TV, Part Of Media Conglomerate Zee
Group Has 5.92 Million Subscribers In The Month Of September. Dish TV Is Known
For Its Innovation And Marketing Starting With Roping In Shah Rukh Khan (Arguably The Biggest
Brand In India) For Advertising To Providing Wide Range Of Value Added Services With Slogan
“DISH KARO WISH KARO”. Dish TV Has Done It All. Recent Addition To Its Innovation Is The
Interactive Banking Services Called ICICI Active.
Tata Sky Is A DTH Satellite Television Provider In India, Using MPEG-4 Digital
Compression Technology. They Provide Service Through First MPEG-2 And
Second Adopted By NDS Technology. It Is A Joint Venture Between The Tata
Group, That Owns 80% And STAR TV That Owns A 20% Stake. Tata Was Incorporated In 2004 But
Was Launched Only In 2006. The Company Uses The Sky Brand Owned By British Sky
Broadcasting. In October 2008; Tata Sky Announced Launching Of PVR Service Tatasky+ Which
Allowed 45 Hours Of Recording In A MPEG-4 Compatible STB. The Remote Will Be Provided With
Playback Control Keys.
Sun Direct Is The Part Sun TV. Sun Direct Provide Dth Service S From The
December 2007. Company Was Incorporated As Sumangali Publications
Private Limited On December 18, 1985.Sun Tv Also Provide Video Quality
S. V. Institute of Management, KADI 2008-10
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With Sound Quality. Sun Direct Have Establish Dec.2007 And Now Have 4.3 Million Subscribers In
India.
The DTH Service Of Bharti Airtel Comes From Its Subsidiary, Bharti
Telemedia Limited Launched In October 2008. They Comes With MPEG
4technology.There Are Nine Interactive Service Currently And Three
Recharge Option And Airtel Has Been Position As A Premium Player In The DTH Market.
Big TV Ltd. Is Part Of Reliance Communication Ltd. It Comes In To Industry
In August 2008 With Slogan “TV Ho Toh Big Ho” ("If You Have A TV, Make
It BIG"). Now Company Going To Planned Provide 400 Channels And Begin
High Definition Broadcast. Company Covers In One Year 2 Million Subscribers.
Videocon Industries, An India-Based Electronics Goods Manufacturing
Company Has Finalized May’09 As Launch Of DTH Services With The Name
Of 'D2H+'. The Company Will Launch Integrated Digital Televisions (Idtvs)
And Set Top Boxes (STBs). The Company Is Planning To Sell 70-80 Per Cent Idtvs And 20 Per Cent
STBs. The Company Is Testing The STBs By Installing At Employees' Homes At No Cost. In
Addition, The Company Is Presently Ensuring A Strong Sales Network And Has Been Recruiting
Sales And Service Staff Through Its Media Arm, Bharat Business Channel.
Market Share47:
Table 2 : Market Share
Company Name:
Subscriber (Million)
Market Share In (%)
Dish Tv
5.92
31.62
Tata Sky
4.50
24.04
Sun Direct
4.30
22.98
Airtel
2.00
10.68
Big TV
2.00
10.68
Video Con
NA
NA
DD Direct
NA
NA
S. V. Institute of Management, KADI 2008-10
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Dish TV Is Leader Of Industry. Dish TV Market Share Is 31.62% That Is Highest. But We See Other
Competitor Of Industry Not More Difference In Their Market Share. Tata Sky Is Very Near To Cross
The Dish TV On The Other Hand Big TV And Airtel Able To Get The Market Share 10.68% Only In
One Year. Now Recent Videocon Enter Into Market. Videocon Is Ready To Beat To Their Rival. DD
Direct Is Also Public Company.

Here, No. Of Player Is Only 6 (Not Including In DD Direct) Which Have High Competition
To Grab Market Share So. Interval Rivalry Is High.
Industry Growth:
Average Annual Growth Rate Of DTH Service Industry Is Around 30%, Which Shows Demand Is
Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have Driven Growth. So,
Market Is Attractive For The New Players.

So, The Threat From New Entry Is High.
Untapped Market:
In India Cable Operators Have Huge Market Share Than DTH And IPTV. Now DTH Service Providers
Have Huge Opportunity To Adopt The Market Share Of Cable And IPTV. There Is Huge Demand In
Rural Area Also That We Can Say Untapped Market.

There Is Huge Untapped Market For This Industry. So, Inter Firm Rivalry Is Very High.
Promotional Activities:
All Companies In DTH Come With Different Types Of Schemes And Offers In The Market. All The
Time They Try To Attract More Numbers Of Customers With Huge Marketing & Advertisement.

Mostly All Of The Players In Industry Introduced New Promotional Scheme Almost In
One Week Duration. So, Inter Firm Rivalry Is Moderate To High.
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Exit Barrier:
To Enter In This Industry, Entry Fee Is Rs.10 Crores Which Is Not Refundable. And Also
Establishment For Technology There Is Huge Investment Needed. This Also Means That The
Players Need To Have A Deep Pocket To Sustain The Losses Till Then.

So, Exit Barrier Is High. And Inter Firm Rivalry Is Also High.
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Inter Firm Rivalry
The Effect Of All Above Factors
Factors
Low
Moderate
To Low
Moderate
Moderate
To High

Competition
Between
Companies (High)
Industry Growth (High)
Untapped Market (High)
Promotional
High


Activities

(Moderate To High)
Exit Barrier (High)

Summary:
Inter Firm Rivalry Is High Because Market Share Of The Players Have Not More Differences
Between Their Market Share. Switch Cost Is Low So That Competition Is High. There Is Huge
Untapped Market And Thus New Strategy Adopted By The Players. So It Is High & Moderate To
High Respectively. Exit Barrier Is High For Huge Investment In Industry. Thus
It Is Affected Negatively To Competition.
The Overall Inter Firm Rivalry High.
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Chapter 6
Driving Forces
Internet Technology Applications:
The Internet Is Proving To Be An Important As A Distribution Channel, Allowing Manufacturers To
Access Customers Directly Rather Than Distribute Exclusively Through Traditional Wholesale And
Retail Channel. By The Use Of Internet Applications The Service Providers Provide The Product
Offerings Of Competitors And Shop The Market For The Best Value To The Customers.
Long Term Industry Growth:
Shifts In Industry Growth Up Or Down Are A Driving Force For The Industry Change, Affecting The
Balance Industry Supply And Buyer Demand. The Industry Growth Of The Direct To Home (DTH) Is
Around 30%, So The Industry Growth For The DTH Companies Concern As A Driving Force, Which
Plays An Important Role For The DTH Service Providers.
Product Innovations:
The Innovation In The Product Is Very Important Factor Because The New Product Creates The
Market Demand Which Is More Important For The Any Player In The Industry. Successful New
Product Innovations Strengthen The Market Positions Of The Companies With The Innovative
Products. By The Product Differentiation The Service Providers To Be The Market Leader Or From
That The Companies Capture The Market Share. The Product Innovations & Product
Differentiation Will Be A Competitive Advantage For The Company Among The Rivals Of The
Industry.
Technological Changes:
Advances In Technology Can Dramatically Alter An Industry’s Landscape. There Are Gradually
Upgrade In The Technology. So, The Improved Or Innovative In The Technologies Of DTH Services
Are Enforcing To Drive The DTH Service Industry.
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Regulatory Influence:
TRAI (Telecom Regularity Authority Of India) & Ministry Of Broadcasting Both Are The Governing
Bodies For The DTH Industry By Which Regulated To The DTH Industry. By The TRAI Recommend
That The Import Duty On The Set Top Box (STB) Removed Which Is Beneficial For The DTH (Direct
To Home) Service Providers And The Effects On The Customers Because By That The Price Of The
Set Top Box Reduced And The Benefit From That The Price Of STB (Set Top Box) At The Low Cost
To The Customers.
Changing Societal Concerns, Attitude & Lifestyles:
In India, Generally The Style Of The Family Pattern Is Nuclear Family. So It Helps To The Family
Members To Watch The Different Channel For The Different Member Of The Same Family. After
That The Lifestyles Of The Family Who Are Using The DTH Services For Their Entertainment Is
Different And Attitude Towards The DTH Users Different More Than The Non-Users. Nowadays
The DTH Service Providers Also Provide The Common Dish For The Same Society.
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Key Success Factors
Innovative Services:

Innovation In Service Provided By DTH Industry Is Must And It Has A Significant Impact On
Growth Of DTH.

Dish Tv Is Comes With New Innovative Service Called A-La-Carte. This Service Provides To
Choose The Customer Extra 15 Channels From Their A-La-Carle Packs.

Dish TV Provide Active Service Like Job, Shaadi, Game Etc. They Provide Special Bank
Active Service That Called ICICI ACTIVE Through This You Can Done Your Bank Transaction.

Tata Sky Provides Tata Sky Offers A DVD Picture Quality And CD Quality In Sound. Tata Sky
Is Rated As Best Service Provider In The Industry.

Tata Sky Come With New Service S Called Multi Dwelling Unit (MDU) Model. This Model
Provide One Dish Is Shared By Every Home Is A Good Way To Attract The Group Of The Customer.

Low Scheme And Package Charge By Sun Direct. They Offer Regional Channel To All State
In Their Packages.

Big TV Provides PIP (Picture In Picture) Service. This Service Provide Innovative Feature
And Also Enable Customer To View Twelve Channels At A Same Time.

They Also Tied With The Oxygen For The Recharge With The Help Of Debit Cards, Internet
Banking, Mobile Mode Payment (SMS) Or By The Calling The Toll Free Number.
Distribution:
Intensive Distribution Must Be Used By All Players Because Of Cut-Throat Competition. Availability
Of Product Everywhere Is Very Important And For That Strong Distribution Network Is Required.

All The Players Of The DTH Industry Provide Their CPE Through Retailer And Their Outlets.
S. V. Institute of Management, KADI 2008-10
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
Dish TV Provide CPE Through Retailer Only And Big TV, Airtel Digital And Tata Sky Provide
Through Both Retailer And Their Own Outlay.
Innovative Marketing:
Marketing Is Most Important To Become Very Successful In Any Industry. To Grab The Market
Share And Subscriber Base, Player Done High Advertisement And Marketing. By Creating
Marketing Innovation You Can Easily Get Attention Of Customer. Many Player Of This Industry
Have Done Innovation In Marketing And Spent Handsome Money Behind This.

Dish TV Is Leader Of The Industry. It Comes With Most Successful Slogan “Dish Karo Wish
Karo” Through Brand Ambassador Shahrukh Khan This Provide Them Most Successful To Grab
Subscriber Base. They Are Also Come With New 360 Dergee Approach In Marketing With Slogan
“Ghar Ayi Jindgi” To Compete With Tata Sky And Big TV.

Tata Sky Enters Into Market With Brand Ambassador Amir Khan For Their Advertisement.
Through Amir Khan They Try To Make Aware About Their Schemes.

Bid TV Is Also Not Behind In Promotion Activates. They Do Not Take Help Of Any Brand
Ambassador But They Done 360 Degree Angle Advertisement With Popular Slogan “TV Ho Toh
Big Ho”
Technology:
This Factor Is Very Important To Drive The Industry Because The Scope Of Innovation In The
Technology Is Very Wide And The Technology Is Upgraded Day To Day.

In The Industry The DTH Service Provider Provides The Moving Picture Expert Group
Version 2 (MPEG2), But Now A Days The Technology Is Upgraded And Some Of The Service
Provides The MPEG4 For The High Standard Quality Picture At The Low Cost With The Innovative
Features Like Airtel Digital TV And Reliance BIG TV.
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
Airtel - Uses The Latest MPEG4 Standard With DVB S2 Technology.

Sun Direct Is Advanced Technology HDTV (High Definition Television)

Reliance BIG TV Also Provides The MPEG4 With The Digital Video Broadcasting (DVB) As
Well As The Picture In Picture (PIP) System To The DTH Service Holder.
Strategic Factors:
Exploit Bottlenecks:
In This Market, Content And Transponder Capacity Are Scarce And Controlled By A Few Players.
With Content, Access To Unique Local Language Material Is Critical. In A Market Like India, All A
DTH Player May Need To Do Is Repackage Existing Channels That Are Not Universally Available. In
Sports, Some Players Have Won An Advantage Through Long-Term Rights Purchases.
Broadcasting Rights To Cricket In India, For Example, Belongs To ESPN For The Next Five Years. It
Also Controls The Right To Football For West Bengal (The Most Popular League) For Ten Years.
The Second Obvious Bottleneck Is In Transponder Capacity. A Modest DTH Offering Is Likely To
Require A Minimum Of 10 To 15 Transponders-Almost A Dedicated Satellite. The Number Of
Satellite That Can Broadcast To A Particular Region Is Limited By Physics.
Move First:
In The DTH Industry, A Credible And Well Managed First-Mover Service Has A Tremendous
Advantage Over Others. In India, A First Mover May Effectively Shut Out Competition.
Exploit Market Niche:
In Some Markets, The Segment Of Consumers Who Desire Highly Specific Content May Be Large
Enough To Form The Core Subscribership Of A DTH Service. An Example Of This Could Be Again
Cricket In Our Country.
A Few Things Are Assured In The DTH Industry Even In The Face Of Paradigm Shifts. First, The
Value Of Transponders Is Likely To Fall As Compression Allows More And More Content To Go
Through The Same Satellite, And As More Satellite Are Launched. Second, As Bandwidth
Explodes, So Will Demand For Content. Obscure Sports And The Like Will Become More Valuable;
Conversely, Much Of The Content That Is Currently Valuable Will Face Downward Pricing Pressure.
Niche Content Providers Will Emerge.
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The Industry Is Likely To Be Characterized First By A Period Of Fragmentation And Then By An
Increasing Concentration Of Global Consortia As Unprofitable Participants Fold. What Is Clearer
Than Ever Is That Satellite TV Is Here To Stay And Will Play Role In Bringing Television To Mass
Around The World?
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Chapter-7
Portfolio Models
BCG Matrix
Table 3: Players Subscription Figures
Company's Name
Dish TV
Tata Sky
Sun Direct
Airtel Digital TV
Reliance Big TV
Videocon D2h
Total
Subscribers
(In Millions)
5.92
4.50
4.30
2.00
2.00
NA
18.72
Market
Share
31.62%
24.04%
22.97%
10.68%
10.68%
NA
100.00%
Relative
Share
1.32
0.76
0.73
0.34
0.34
-
Market
Industry Growth Rate = 30%48
I
n
d
u
s
t
r
y
G
r
o
w
t
h
R
a
t
e
Relative Market Share
High
D
T
S
R&
A
Figure 17 BCG Matrix
10%
Low
10
1
0.1
(Here, D= Dish TV; T= Tata Sky; S= Sun Direct; R=Reliance Big TV; A= Airtel Digital TV)
S. V. Institute of Management, KADI 2008-10
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Strategies Of Players:
Dish TV:

Dish TV Is India's Biggest Direct-To-Home
Company And Part Of The Biggest Media Conglomerate
--
Zee Group. It Offers 250 Channels And Services,
Including 21 Audio Channels And Has Over 5.92 Million
Subscribers.

Dish TV Is A Satellite Provider In India, Using
MPEG-2 Digital Compression Technology ,Transmitting
Using NSS Satellite At 95.0

Dish TV Want To Grow With “Market Leader, Volume Leader And Value Leader.”

Dish TV Have A Main Focus On Customer Satisfaction Through Providing Customer Service
And Value Added Service Dish TV Provide Innovation Service 11 Languages That Named As
“ACTIVE” Service. They Provide Banking Interactive Service For That They Deal With ICICI Bank To
Attract To Customer.

Dish TV Enters Into The Market With Huge Advertisement And Famous Slogan And They
Are Successful After Adopting This.
“Dish Karo Wish Karo”

They Are Also Comes With Aggressive Marketing With Brand Ambassador Actor Sharukh
Kahn Following Slogan To Catch The Market:
“Ghar Ayi Jindgi”
“Home Home Again; I Like To Be Here When I Can"

Dish TV Raising $100 Million Through Global Depositary Receipts To US Based Private
Equity Firm Apollo Management For To Increase Its Subscriber Base And Improvement In
Performance And Infrastructure.
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TATA Sky:

It Is A Joint Venture Between The Tata Group, That
Owns 80% And STAR Group That Owns A 20% Stake.

The Company Uses The Sky Brand Owned By British
Sky Broadcasting. Tata Sky Have World Class Digital
Infrastructure
In
Partnership
With
Global
Digital
Technology.

Tata Sky Provides DVR (Digital Video Recording)
Service (TATA Sky+) Which Allowed 45 Hours Of Recording
In A MPEG-4 Compatible Set Top Box. The Remote Is Provided With Playback Control Keys. They
Enter Into Market By Providing This Service.

In 2008, Singapore-Based Temasek Holdings Picked Up 10% Stake In Tata Sky From The
Tata Group.

Tata Sky+ Is A Premium Set-Top Box-Cum-Personal Video Recorder That Allows Recording
Up To 45 (Now It Has Been Increased To 90 Hours Of Recording) Hours Of Live TV, Recording One
Program While Watching Another, Pause A Live Telecast And Review A TV Program.

Tata Sky Offers A DVD Picture Quality And CD Quality In Sound That Is Unprovided By The
Usual Cable Television Services Prevalent In India. This Service Is Helpful To Tata Sky To Compete
With Substitutes.

Tata Sky Is Rated Best Player With The Provision Of Best Customer Service.

Tata Sky’s Multi Dwelling Unit (MDU) Model Where One Dish Is Shared By Every Home Is A
Good Way To Win Customers Easily. When The Infrastructure Is Already Created By An Operator,
People Would Naturally Opt To Go With Him.
Sun Direct:

Sun Direct Is A 80:20 Joint Venture Between The Tamil
Nadu Based Maran Family And The Astro Group Of Malaysia.
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
Sun Direct Is Now Using Most Advanced Technology HDTV (High Definition) Content. This
Technology Makes Their Service Very Effective And Better Quality.

Sun Direct Provide Their Packages At Low Package Price Rs. 10 To Rs. 115 Per Month And
Also.

Sun Direct Consider To Be Rational In Terms Of Package In Terms Of Schemes And
Packages Set Top Box (STB) And Monthly Packages.

Sun Direct Concentrates On Regional Channel.

Sun Direct Using MPEG 4 Technology.
Airtel:

Bharti
Airtel
Makes
Partnership
With
Infosys
Technology Ltd. For Entering Into An Innovation And
Technology To Deliver Superior Experience To The Customer
Of Airtel Digital TV.

Airtel - Uses The Latest MPEG4 Standard With DVB S2
Technology, Which Translates Into Exceptional Picture Clarity And Consistent High-Quality Audio
For The Customer.

It Brings Many Firsts To The DTH Segment In India Including A Universal Remote Which
Operates Both The Set Top Box And TV Set As Well As Interactive Applications.

The Main Attraction Is Their Set Top Box (STB) As The Appearance Of The Airtel Digital STB
Very Sleek And Stylish.

Airtel Digital TV Started Of Its Marketing Campaign As A Very High Quality Service Provider.
Its Tag Line Is ‘Come Home To The Magic.

This Marketing Compaign Helped In Creating A Niche Market.It Started Its Marketing
Campaign Primarily Targeting The Higher Income Viewers. It Introduced Itself As A Very Classy
Product Using A Lot Of Celebrities For Advertisement Campaigns Along With Exquisite Use Of
Colors And A Very Handy As Well As Well Maintained Website.

‘Stars Come Home’ (March 2009), This Is Help To Airtel To Increase Its Penetration As Well
As Market Share. This Was A Unique Marketing Strategy Followed By Airtel Digital TV.
S. V. Institute of Management, KADI 2008-10
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
In Order To Increase Its Penetration As Well As Market Share, It Started Several Innovative
Promotion Packages. Where In One Or More Celebrities Would Visit The Homes Of The Winners
Of The This Was A Unique Marketing Strategy Followed By Airtel Digital TV
Big TV:

Reliance Big TV Ltd. Is Part Of Reliance Communication
Ltd. It Comes In To Industry In August 2008 With Slogan “TV Ho
Toh Big Ho” ("If You Have A TV, Make It BIG").

And Able To Become India’s Latest DTH Service Provider
Reliance Big TV Is Able To Achieve Market Share Within One Year
With Help Of Huge Advertisement.

Big TV Is First That Provide Service Through MPEG-4
Technology In India.

The Big TV Also Provides The Innovative Features To Their
Customers With The Picture In Picture (PIP) That Would Enable
Viewers To Watch Twelve TV Channels At The Same Time On Any
TV Set In The Country.

Reliance Big TV Is First And Only DTH Operator To Launch 32 Movie Channels And A
Subscription Video On Demand Services.

For The Brand Awareness The BIG TV Tied Up With The Top 15 Website Like Yahoo, Google,
Rediffmail, Etc.

They Also Tied With The Oxygen For The Recharge With The Help Of Debit Cards, Internet
Banking, Mobile Mode Payment (SMS) Or By The Calling The Toll Free Number.
Suggested Strategy:
Dish TV:
 As Dish TV Is Already Market Leader. So They Have To Go For Expansion Of Distribution
Network. So Customer Of Dish TV And New Customer Are Easily Getting Their Service And
Recharge Coupon Also.
 The Customer Is King Of The Market And To Win The Customer One Have To Implement
Service Marketing Concept And Provide Complete Satisfaction To Customer. To Make The
Customer Loyal, The Quality Of The Service Provide By The Company Should Be Best And
As Per Customer Wants.
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 Service Provided By The Dish TV Is A-La-Carte. This Service Is Satisfy Customer Need So, To
Introduce This Type Of Service May Attract To Customer.
 Dish TV Have To Adopted Aggressive Pricing Strategy To Attract To Customer.
 Indian People Have More Value Of Their Region. Company Has To Adopt The New Tie Up
With Region Channel. And Also Introduce Packages. So Customer Can Enjoy Their Region
Channel In Other State Also.
 Tata Sky Introduces The TV Service On Mobile And Wheel. They Are Able To Capture The
Market. So, Dish TV Has To Introduce This Type Of Services.
 Company Has To Focus On Rural Expansion .There Is Huge Market To Grab The Market
Share.
Tata Sky:
 TATA Sky Is The Best DTH Service Provider Among The Rivals, So They Should Maintain
Their Position With The Differentiation On The Basis On The Interactive As Well As The
Sales After Service To The Customers.
 After That They Should Concentrate On The Top Of The Position With The Innovation In
Product As Well As The More Interactive Services Provide To The Customers.
 They Should Also Provide The Recharge System Like The Reliance Big TV Provides The
Recharge Coupon For The Various Schemes.
Sun Direct:
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 Sun Direct Is The Silent Well Known Company In Indian DTH Industry.
 Awareness Of Sun Direct Is Less. So, Sun Direct Invest In More Awareness About Service
Provide By Company.
 India Is Having Tremendous Opportunity As More And More Diversify Population Is Having.
There Is Untapped Market In Urban As Well As Rural Area. In Sun Direct Should Invest For
More In Marketing And Advertising So That Grab The Market Share.
 Sun Direct Should Also Provide Other Good Channel Packages Rather Than Regional
Channel.
 Sun Direct More Concentrate On The South India. So, Sun Direct Should Cover The Other
Region Of India As A Market.
BIG TV:
 Reliance Big TV More Focuses On Their Product Promotion And Innovation In The
Technology For Their Product. So, They Should Also Deliberate On The Services Like, TATA
Sky Provides The Interactive And Active Service, Stock Ticker Etc.
 They Should Also Concentrate On The Development Of Market By Their Distribution
Channel Or The Sales After Service.
 They Should Focus On The Development Of Rural Market As They Have Strong Back Up Of
Parents Company.
Airtel Digital:
 Airtel Digital More Focuses On Their Product Promotion And Innovation In The Technology
For Their Product. So, They Should Also Deliberate On The Services Like, TATA Sky
Provides The Interactive And Active Service, Stock Ticker Etc.
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110
 They Should Also Concentrate On The Development Of Market By Their Distribution
Channel Or The Sales After Service.
 They Have To Use Parents Company’s Resource As It Is Very Good In Distribution Of
Services.
GE9 Cell Matrix
Business Strength
Business
Strength
Airtel
Videocon
Weight Dish TV
Tata Sky
Sun Direct Digital
Big TV
D2h
Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score
Market Share 0.25
9.00 2.25 7.50 1.88 7.50 1.88 5.00 1.25 5.00 1.25 2.00 0.50
Financial
Resources
0.20
7.00 1.40 8.50 1.70 8.00 1.60 7.50 1.50 7.50 1.50 4.00 0.80
Brand
Reputation 0.15
7.50 1.13 7.50 1.13 6.50 0.98 7.00 1.05 7.50 1.13 6.00 0.90
Distribution
Capacity
0.12
8.00 0.96 7.00 0.84 6.50 0.78 6.50 0.78 7.00 0.84 5.50 0.66
Advertising
Capabilities 0.15
8.50 1.28 7.50 1.13 7.00 1.05 7.00 1.05 6.50 0.98 4.00 0.60
Ability
To
Compete With
Rivals
0.13
8.00 1.04 7.00 0.91 7.50 0.98 7.00 0.91 7.00 0.91 5.00 0.65
1.00
8.05
7.58
7.26
6.54
6.60
4.11
Industry Attractiveness
Industry Attractiveness
Current Market Size
Regulatory Environment
No. Of Competitors
Barriers To Entry
Market Growth Rate
S. V. Institute of Management, KADI 2008-10
Weight
0.20
0.15
0.12
0.10
0.13
DTH Service Industry
Rating Score
8.00
1.60
7.00
1.05
6.50
0.78
7.00
0.70
7.50
0.98
111
Industry Profitability
Technology Change
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0.15
0.15
1.00
8.00
7.50
1.20
1.13
7.43
112
Business Strength
I
n
d
u
s
t
r
y
10
D
T
S
R
A
V
6.67
A
t
t
r
a
c
t
I 3.33
v
e
n
e
s
s
s
0
10
6.67
3.33
0
(Here, D= Dish TV; T= Tata Sky; S= Sun Direct; R=Reliance Big TV; A= Airtel Digital TV;
V=Videocon D2h)
Table 4 GE9 Cell Matrix Position
Industry Attractiveness:
 Current Market Size: Market Size Is An Important Parameter For Any Company. And Near
About 11mn. Thus We Give 0.20 Weights To This Industry.
 Regulatory Environment: Government Plays Very Dominant Role In Any Industry’s Growth. In
This Industry Government Makes Some Favorable Rules For Company’s Growth And Also
Makes Some Strict Rules To Prevent Company’s Unethical Activity. Thus We Give 0.15 Weights.
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 No. Of Competitors: In This Industry Starting Requirements Are Not So High. But, To Develop
Business Company Has To Make Some Extra Expenses. This Prevents The Small Corporate
House In This Industry. And This Factor Is Important For Any Industry. Thus We Give 0.12
Weights.
 Barriers To Entry:
As This Is Important Factor For Any Industry. But, In This Industry It Is
Not So Much High. So, We Give 0.10 Weights To This Factor.
 Market Growth Rate: As The Growth Rate Of This Industry Is Very Good. It Is Attractive For
Any Company. Thus We Give 0.13 Weights To This Factor.
 Industry Profitability: As Industry Profitability During Beginning Years Is Not So Good In This
Industry. Because Operating Expenses Are Very Much During This Year. Thus We Give 0.15
Weights To This Factor.
 Technology Change: We Can Say That As It Is Key Success Factor For This Industry. Because
DTH Service Is Based On Satellite. Thus We Give 0.15 Weights To This Factor.
Business Strength:
 Market Share: Market Share Decides Which Company Has Good Positions In Industry. And It Is
Very Much Needed While Evaluating Any Company. Thus We Give 0.25 Weights To This Factor.
 Financial Resources: Financial Resources Help To Develop Any Company Which Is Very Much
Needed In This Industry. We Can See That Mostly All The Company Has Good Background.
Thus We Give 0.20 Weights To This Factor.
 Brand Reputation: It Is Always A Good Factor For Any Company. As In This Industry All
Companies Have Their Own Brand Image. Thus We Give 0.15 Weights To This Factor.
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 Distribution Capacity: As This Is Service Industry And Customers Purchase Not Frequently This
Service But Almost Every Month They Have To Do Recharge. So, Company Has To Provide It In
Good Quantity. Thus We Give 0.12 Weights To This Factor.
 Advertising Capabilities: As This Is Emerging Industry And There Is Very Huge Untapped
Market In Various Segments. So, Company Has To Spend Much Budget Behind Advertising.
Thus We Give 0.15 Weights To This Factor.
 Ability To Compete With Rivals: This Is An Emerging Industry. So, Each And Every Company Is
Trying To Get Good Market Share. For That, They Have To Bit Each Other. Thus We Give 0.13
Weights To This Factor.
Implications:
As The Industry’s Attractiveness Of DTH Service Industry Is Very Good. And Dish TV Is The Leader
Of This Industry Followed By TATA Sky, Sun Direct TV, Reliance Big TV, Airtel Digital TV And Then
Videocon Which Is Entered Just Before 3 To 4 Months. The Competition Between All This
Companies Is Very Hard. But The Target Is Not Same. Because TATA Sky And Sun Direct Compete
With Each Other. And Airtel & Reliance Compete With Each Other. Dish TV Is Ahead Of All These
Companies.
As We Can See The Figure Of GE 9 Cell Which Shows That To Invest In This Industry Is Good For
The Companies.
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ADL (Arthur D. Little) Matrix
Competitive Position
Business Strength
Weight
Dish TV
Rating
Tata Sky
Sun Direct
Airtel Digital
Big TV
Videocon D2h
Score Rating Score Rating Score Rating Score Rating Score Rating Score
Market Share
0.25
9.00
2.25
7.50
1.88
7.50
1.88
5.00
1.25
5.00
1.25
2.00
0.50
Financial Resources
0.20
7.00
1.40
8.50
1.70
8.00
1.60
7.50
1.50
7.50
1.50
4.00
0.80
Brand Reputation
0.15
7.50
1.13
7.50
1.13
6.50
0.98
7.00
1.05
7.50
1.13
6.00
0.90
Distribution Capacity
Advertising
Capabilities
Ability To Compete
With Rivals
0.12
8.00
0.96
7.00
0.84
6.50
0.78
6.50
0.78
7.00
0.84
5.50
0.66
0.15
8.50
1.28
7.50
1.13
7.00
1.05
7.00
1.05
6.50
0.98
4.00
0.60
0.13
8.00
1.04
7.00
0.91
7.50
0.98
7.00
0.91
7.00
0.91
5.00
0.65
1.00
8.05
7.58
7.26
6.54
6.60
4.11
Industry Maturity
Year
Subscribers (In Millions)
2003
0.00
2005
1.00
2007
4.00
2009
18.70
Figure 18 Industrial Life Cycle
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10
Embryonic
Industry Maturity
Growth
Mature
Aging
Dominant
D
7.5
T
Strong
S
R
A
Competitive
Position
5
Favorable
V
2.5
Tenable
0
Figure 19 ADL (Arthur D. Little) Matrix
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Implication:
As Per This Model Industry Maturity Is Devided Into 4 Stages. Embryonic, Growth, Mature And Aging. And
Competitive Position Is Devided Into 4 Categories. Dominant, Strong, Favorable And Tenable.
Above Figure And Calculation It Is Easily Interpret That DTH Industry Is In Growing Stage. And Dish TV Is
Leader Followed By TATA Sky , Sun Direct TV, Reliance Big TV, Airtel Digital TV And Then At Last Videocon
D2h.
Dish TV Has To Invest In Rural Area As It Entered In Urban Area. Because In Rural Area Penetrated By Only
DD Direct+ Which Is Government Players. They Provides Lifetime DTH Service Against Of Single Time
Payment. So, Dish TV Has To Make Any New Strategy Which Is Increase Their Market Share.
TATA Sky Which Is Followed By Dish TV Provides DVR (Digital Video Recording) Service (TATA Sky+) Which
Allowed 45 Hours Of Recording In A MPEG-4 Compatible Set Top Box. It Is Also Provide Service To The
Urban Area Mostly. So, It Has To Increase Their Investment Which Is Helpful To Grab Untapped Market.
Sun Direct TV Has Their Own Competitive Advantage As It Is Providing More Number Of Regional Channels.
But, Sun Direct Mostly Covered Only South Indian Market. So, It Has To Change Their Region And Has To
Enter In Other India’s Part Also.
Reliance Big TV Is First And Only DTH Operator To Launch 32 Movie Channels And A Subscription Video On
Demand Services. Reliance Big TV Has First Mover Advantage Of MPEG 4 Technology. Reliance Has To Start
New Extra Channel. Like, A-La-Carte (Dish TV), Interactive Service (TATA Sky). So, New Customer Can
Attract By This Extra Services.
Airtel Brings Universal Remote Which Operates Both The Set Top Box And TV Set As Well As Interactive
Applications. As It Provides Good Distribution Channel. But, Sometimes Their Consumers Do Not Find
Recharge Coupon Very Easily. So, Airtel Has To Focus On This Problem.
Videocon Which Entered In May 2009 Has To Focus On Untapped Urban Market. Their Market Share Is Not
Much. It Has To Invest In Advertisements As All Other Players Do Well. It Has To Select Good Brand
Ambassador Who Has Good Image In Public.
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Diamond Model49
Figure 20 Michel Porter’s Diamond Model
Government
Rules For Licensing:
1. No. Of Licenses Issued: There Will Be No Restrictions On The Number Of DTH Service
Provider To Issue The License, The License Issued By Any New Service Provider Who Fulfils
The Terms And Conditions Which Are Regulated By TRAI (Telecom Regularity Authority Of
India).
a. TRAI Also Regulated The Security And Technical Clearances Service Provide To The
DTH Service Holders By The Appropriate Authorities Of The Government.
2. Validity Of License: Wireless Planning And Coordination Wing Of Ministry Of
Communication, The Rules And Regulation Of The Government The License Provide To The
DTH Service Provider Which Is Valid Up To 10 Years From The Date Of Issue Of Wireless
Operational License.
3. DTH License Fee Reduction: The Ministry’s Move To Reduce The License Fee For DTH
Players From 10% Of Gross Revenue To 6% May Soon Bear Fruition. Secretary Singh Said
The Ministry May Be Able To Announce This Soon. This Process Has Been On For Nearly A
Year. Due To The Multiplicity Of Agencies—Telecom Regulator TRAI, I&B Ministry And The
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4.
5.
6.
7.
8.
Finance Ministry Are Involved In This Decision—The File Seems To Have Been Moving Back
And Forth For Nearly An Entire Year. One DTH Industry Source, Who Has Followed The
Policy Change Closely, Told Us That The First Time Around, The Finance Ministry Had Some
Reservations About The Change After I&B Ministry And TRAI Had Approved The Change.
So The Ministry Had To Make Some Amendments And Get TRAI Recommendation Once
Again And The File Has Gone Back Again To The Finance Ministry. Singh’s Reiteration Of
The Decision May Be An Indication That The Ministry Is Expecting The Finance Ministry’s
Nod Soon.
Laws For The Termination: Either Party Has A Right To Terminate This Agreement On
Immediate Written Notice To The Other In The Event Of:
Material Breach Of This Agreement By The Other Party Which Has Not Been Cured Within
Thirty (30) Days Of Being Required In Writing To Do So; The Bankruptcy, Insolvency Or
Appointment Of Receiver Over The Assets Of The Other Party;
The DTH License Or Any Other Material License Necessary For DTH Co. To Operate Its DTH
Service Being Revoked At Anytime Other Than Due To The Fault Of DTH Co.
GBN Shall Have The Right To Terminate This Agreement On Written Notice To DTH Co. If
DTH Co. Breaches Any Of The Anti Piracy Requirements And Fails To Cure Such Breach
Within Two (2) Days Of Being Required In Writing To Do So, Or GBN Discontinues CNN-IBN
With Respect To All Distributors In The Territory And Provides DTH Co. With At Least
Ninety (90) Days Prior Written Notice.
a. DTH Co. Shall Have The Right To Terminate This Agreement On Written Notice To
GBN If DTH Co. Discontinues Its DTH Business And Provides At Least Ninety (90)
Days Prior Written Notice.
Termination Of This Agreement Shall Not Affect Any Continuing Obligations Of Each Of
The Parties, Including Any Rights And Obligations Relating To Indemnification And Audit.
Trade Restrictions And Tariffs
Rationale For Making Amendment To The Direct To Home Broadcasting Services
(Standards Of Quality Of Service And Redressal Of Grievances) Regulations, 2007:
1. No Visiting Or Repair And Maintenance Charges Of DTH Equipment During Warranty
Period. TRAI: The DTH Operators Have Been Prohibited From Charging Any Fee Towards
Visiting Charges Or Repair And Maintenance Charges Of DTH Consumer Premises
Equipment During The Period Of Warranty For Such DTH Consumer Premises Equipment
Acquired On Outright Purchase Basis.
2. The DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or
Till Validity Expiry, Of A Subscriber's Enrollment. TRAI: The DTH Operators Have Been
Prohibited From Changing The Composition Of Their Subscription Packages During First Six
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3.
4.
5.
6.
7.
8.
Months Of Enrolment To The Subscription Package Or During The Period Of Validity Of A
Prepaid Subscription Package, Whichever Is Longer.
In Case A Channel Is Removed From A Subscription Package In The First 6 Months Of
Enrollment, The DTH Operator Must Reduce The Price Proportionately, Or Replace The
Removed Channel With One Of The Same Genre And Language. TRAI: The DTH Operators
Have Been Mandated To Proportionately Reduce The Subscription Charges For A Package
From Which Any Channel Is Removed For First Six Months Of Enrolment Or During The
Period Of Validity Of A Prepaid Subscription Package, Whichever Is Longer Or To Replace
The Channel With A Channel Of Same Genre And Language.
The Option Of Choosing The Package With Reduced Charges Or The Package With
Replaced Channel Has Been Given To The Subscriber.
In Case A Removed Channel Needs To Be Replaced, The Replacement Option Will Be In The
Hands Of The DTH Operator. TRAI: Option To Select The Channel Of The Same Genre And
Language In A Subscription Package To Replace A Channel Which Has Become Unavailable
On The DTH Platform, Has Been Given To The DTH Operator.
Your DTH Operator Needs To Give A Prior Notice Of Fifteen Days To You Before Changing
The Composition Of Any Subscription Package.
Subscribers Are Allowed To Request Their DTH Operator To Suspend Their Services
For Up To 3 Months. However, This Suspension Period Should Not Comprise The Same
Calendar Month. TRAI: DTH Operators Have Been Mandated To Entertain Requests Of DTH
Subscribers For Suspension Of Services If Requested Period Of Suspension Does Not
Exceed Three Calendar Months And Does Not Comprise Part Of A Calendar Month.
a. The Above Rules Are Compulsory For DTH Operators To Adhere To.
i. The Licensing Norms Of This Industry Is Not So Much Strict. Because Of This
Norms Provide Easy Entry And Exit To DTH Players. But, The Service Norms
Are Somewhat Strict. Companies Have To Give Good Services To Their
Customers Especially To Set Top Box. They Don’t Take Any Repairing
Chargers During Warranty Periods. DTH Providers Also Can’t Change The
Composition Of Subscription Of Customer’s Schemes Till The Expiry Date Of
Their Enrolment.
Foreign Direct Investment:
The Ministry Of Information And Broadcasting (I&B) Reiterated That It Is Working Towards
Raising The FDI Cap In The Media Distribution Platforms Like Direct-To-Home (DTH) To 74% From
The Current 49%. “We Are Considering The Case Of Raising The FDI Ceiling In DTH To 74%”- Said By
Uday Verma, Additional Secretary, At The IDNS Conference.
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By The FDI (Foreign Direct Investment), The Quality Of Domestic Institutional Environment Has
Been Improved. An Effective Education And Training System Upgrades The Skill Level Of The
Workforce And Improves The Socio-Political Climate In The Country. FDI Includes Infrastructure
Availability, Quality Of The Banking System, Market Size, Repatriation Of Profits, Characteristics
Of Trade And Competition Policy Consistency And Predictability. Ministry Of Information &
Broadcasting Has Requested The Authority To Give Its Recommendations On Foreign Investment
Limits For Various Segments Of Broadcasting Sector. This Consultation Paper Raises Issues
Relating To Foreign Investment Limits For Broadcasting Sector. The Telecom Regulatory
Authority Of India (TRAI) Solicits The Views Of All The Stakeholders On The Issues Raised In The
Consultation Paper.
Government Stability
The Era Of Coalition Politics Had Arrived, And It May Be Some Time Before A Single Party
Government Comes Into Power. The Regionalization Of Indian Politics Has Also Led To State-Level
Innovation And Greater Competition Between The State Governments To Attract Foreign Capital.
There Is Change In The Political Party And Their Rules For The Particular Company And Its Service
Provides Style. Instability In Rules And Regulation By The Government As A Ruling Party, As
Evidenced In The Pattern Of Shifting Alliances And Collapsing Governments That Has Marked
Recent Policies.
Government Policy:
Government Is Helping To The Industry As Reduced Import Duty Of STB (Set Top Box) To Zero
Percent From 7.5 %. But The Final Amount Paid By Importer Will Depend On Exchange Rate. The
Finance Minister Has Also Removed Duty On Import Of Specified Parts Of The Set Top Boxes. This
Will Provide Leverage And Opportunity For DTH Players To Evaluate The Option Of Manufacturing
Set Top Boxes (STB) Locally. Since The CVD (Counter Veiling Duty) Is Reduced From 16 Percent To
14 Percent, The Cost Of The C.P.E (Customer Premises Equipment) Will Go Down To The Similar
Affect And Will Benefit The DTH Operator Who Already Providing Considerable Subsidies To
Consumer And Will Further Accelerate The Date Of Digitalization In The Country.
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Firm Strategy, Structure And Rivalry
No. Of Players And Market Share:50
Company Name:
Dish TV
Tata Sky
Sun Direct
Airtel Digital
Big TV
Videocon D2h
DD Direct
Subscriber (Million)
5.92
4.50
4.30
2.00
2.00
NA
NA
Market Share In (%)
31.62
24.04
22.98
10.68
10.68
NA
NA
There Is Strong Competition Among The Players To Grab The Market Share And New Player To
Come In The Market With Innovative Services And New Technology. Videocon Comes With A
Special Power To Push This Technology As In Their New LCD Or Flat TV Has Facility Of STB.
Dish TV Have Innovative Service A-La- Carte And Tata Sky Is Also Provide Active Service To Satisfy
The Needs Of The Consumers. Videocon Comes With New Services Like IDTV And STB With LCD.
As This Different Service Provide By Different Company At Same Rate And Also Make High
Advertising Make Customer To Switch One To Another.
Because Of High Market Share, Rivalry Among Competitor Is High.
Industry Growth:
Average Annual Growth Rate Of DTH Service Industry Is Around 30%, Which Shows Demand Is
Increases Rapidly. Rising Per Capita Income, Changing Life Style, Etc. Have Driven Growth. So,
Market Is Attractive For The New Players.
 So, The Threat From New Entry Is High.
Untapped Market:
In India Cable Operators Have Huge Market Share Than DTH And IPTV. Now DTH Service Providers
Have Huge Opportunity To Adopt The Market Share Of Cable And IPTV. There Is Huge Demand In
Rural Area Also That We Can Say Untapped Market.
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 There Is Huge Untapped Market For This Industry. So, Inter Firm Rivalry Is Moderate To
Low.
Promotional Activities:
All Companies In DTH Come With Different Types Of Schemes And Offers In The Market. All The
Time They Try To Attract More Numbers Of Customers With Huge Marketing & Advertisement.
 Mostly All Of The Players In Industry Adopt New Technology And Strategies. So Inter
Firm Rivalry Moderate To High.
Exit Barrier:
To Enter In This Industry, Entry Fee Is Rs.10 Crs. Which Is Not Refundable. And Also Establishment
For Technology There Is Huge Investment Needed. This Also Means That The Players Need To
Have A Deep Pocket To Sustain The Losses Till Then.
 So, Exit Barrier Is High.
Demand Condition
 Demand Condition Is More Affected To DTH Industry. This Is Dependent On The Customer
View And Preference. There Is Potential Market For DTH Industry Because The DTH
Industry Is Emerging Industry For India.
 There Are Many Factors Are There Which Can Create Demand For DTH Services Among In
Consumer.
 Consumer Needs Are Never Satisfy. If We Satisfy One Need Then Another Need Should Be
Emergence. Consumer Wants New Innovation And New Packages For Their Preference.
 To Satisfy Their Need Each And Every Company Come New Innovation In Their Scheme
And Services Like Dish TV Provides A-La- Carte Services This Provides 15 Channel As Per
Consumer Choice. Dish TV Is Also Provide ICICI ACTIVE With Help This Consumer Make
Bank Transaction With ICICI Bank. Tata Sky Also Provides Active Service On Wheel And
Mobile.
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 Demographic Factor Includes Age Of Indian People In That Young Indian Is Growing And
Which Is High In The World.
 PPP (Purchasing Power Parity) Is Also Increasing Year By Year. People Are More Spend On
Entertainment. So Demand Of Services Is Also Increase.
 Due People Shift To One State To Another State For Their Job Or Any Other Reason For
That DTH Service Provide Their Regional Channel To Anywhere In India.
 Marketing And Service Innovation Is Helpful To Generate Demand And Attract To More
And More Customer For DTH Industry.
 Demand Is Looking Very Attractive To The New Player Comes In DTH Industry.
Implication:
There Are Number Of Needs From The Customer. If One Need Satisfied By The Customer Then
Arise Another Need By The Customers. So, The Demands From Customers Are Infinite. And The
Demands Which Are Demanded By The Customers Are More Important To Achieve That Needs.
The Customers Want The Improvement In Technology And The Reducing In The Price Of The DTH
Service.
Related And Supported Industry
Related Industry:
1. Cable Industry:
This Is The Most Affecting To The DTH INDUSTRY. Cable Television, Originating As Community
Antenna Television (CATV), Took Advantage Of Coaxial Cable To Provide Individual Homes With
Television Signals Received By A Large Antenna. Most Of The Viewers Still Prefer Cable Because In
Indian People Bound With Traditional Activities. Cable Industry Covers All Most Market In India.
So, DTH Industry Has Tough Competition To Cable.
2. IPTV:
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IPTV Is Like Cable TV, But It Uses A Broadband Connection To The Internet Instead Of Cable For
The Delivery Of Video Services. IPTV Works On Your TV With A Set-Top Box That Accesses
Channels, Subscription Services, And Movies On Demand. The Advantage Over Cable Is That The
Communication Can Be Two-Way, Making Customized Programming And Interactive Media
Possible Without An Additional Connection.
The Policy On IPTV Offers Greater Clarity On The Issues Involved, And Both The Telecom
Operators And The Cable Operators Are Able To Provide An IPTV Service Which Is To Be
Regulated As Per Their Respective Licensing Conditions. IPTV Provide Same Service As DTH
Provide. IPTV Provide Services Have Been Very Attractive Levels With The Subscription Charges
Depending On City And Provide Set Up Box Free With Refundable Security Deposits. And They
Provide Unique Features. IPTV Is Expected To Take Some Time To Catch Up S Infrastructure To
Cover Wider Scale.
Implication:
DTH Industry Is At A Growing Stage. Above Two Are Main Substitute DTH Industry. There Is No
Huge Different In Their Price And IPTV Are Now Going To Expand Their Infrastructure So IPTV Can
Become Threat To DTH Industry.
Supporting Industry:
1. Media And Entertainment Industry
Media And Entertainment Has Emerged As One Of The Fastest Growing Sectors Of The Economy.
In The Last Few Years There Has Been An Exponential Growth In The Number Of Television
Channels And Also Private FM Radio Operators. These Are Providing Quality Entertainment And
Information Across The Country.
The Boom In The Broadcasting Industry Is Reflective Of The Dynamism Of Indian Entrepreneurs
And A Liberal Economic Policy Pursued By This Government.
Trends In Entertainment & Media (E&M) Industry
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The Entertainment And Media Industry Has Demonstrated Tremendous Dynamism In The Recent
Years. In The Last Financial Year It Witnessed A Growth Of 17% And The Television Industry Is
Expected To Grow Annually At Around 22% And DTH Industry Grows Around 30%.51
DTH Industry Is Running On Media And Entertainment Totally. With The Support Of Media And
Entertainment Dth Can Provide Its Services. All Program And Movies Create An Entertainment
Which DTH Provide To The Customer Through Its Services.
All Channels Which Running In Media Collaborate With The DTH. So Through Different Channels
Viewers Get The Entertainment..
2. TV Industry:
Television In India Is A Huge Industry And Has Thousands Of Programmes In All The States Of
India. The Small Screen Has Produced Numerous Celebrities Of Their Own Kind Some Even
Attaining National Fame. TV Soaps Are Extremely Popular With Housewives As Well As Working
Women. Several Small Screen Actors Have Made It Big In Bollywood. Approximately Half Of All
Indian Households Own A Television.
The Television Industry Is Witnessing A Spate Of New Channels Being Launched Every Year. TV Is
Also Penetrating Into The Rural Areas And Is A Promising Segment. Homes With Tvs Are Expected
To Grow From 112 Million To 200 Million In A Few Years. CAGR Is 24% Of TV Industry. Growth Of
DTH Industry Is Very Much Affected By TV Industry Growth.52
DTH Industry Links With The TV Industry In All Ways. All Services Provided By DTH Are Being
Reaching Through TV. Both Industries Depend On Each Other. Innovation Of TV Industry Is Also
Effective For DTH Growth.
Implication:
Supporting Industry Is Very Necessary To Run The Any Industry. Media And Entertainment
Industry And Television Industry Is Supported Industry. Without TV Industry, There Is Not
Existence Of DTH Industry. And Media And Entertainment Industry Support To Run Business Of
DTH.
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Factor Conditions
There Are Some Factors Which Are Very Important For Any Industry. For, DTH Service Industry It
Is Given As Below:
Geographical
To Evaluate Market Condition The Geographical Factors Are Important.
1. Channel:
The Direct To Home (DTH) Service Providers Provide The Different Schemes For The Different
Region. The DTH Service Providers Are Much More Emphasis On The Cultural As Well As The
Region Wise. The Dish TV Provides The A-La-Carte Schemes On The Basis Of The Preference &
Tastes Of The Customers. While The Tata Sky Provides The Active Services For The Latest Updated
Information Related Specific Features Provides To The Customers.
2. Different Area:
This Is Very Important Factor For The DTH Industry Because The DTH Technology Is Very Used
When The Peoples Migrate Or Shift From One Place To The Other Place. So The Equipments Of
The DTH Service Are Helpful While Migrating.
3. Connectivity:
The Connectivity Of The DTH Technology Is Very Easy To Set Anywhere Because Recently The Tata
Sky Launches The New Product For The Car Users. Tata Sky Also Introduces The DTH Service For
The Car Which Is Applicable In The Car. So, The Connectivity Of The DTH Service Based On The
Satellite Which Is More Powerful Than The Other Components. So The Connectivity Is Very
Important To Provide The DTH Services To The Customers.
4. DTH Is Everywhere:
In The DTH Industry The Service Providers Provide The Service To The Customer At Anywhere. The
Cable Operators Are Not Easily Available Everywhere Because The Cable Operator Almost
Depends On The Cable, Which Is Not Possible At Everywhere While The DTH Depends On The
Transmissions From The Department. It Is Possible.
National Resources
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1. Satellite: The DTH (Direct To Home) Service Providers Are More Emphasis On The Satellite,
Because The Satellite Is One Of The Crucial Components To Provides By The DTH Services To
The Customers With The High Picture Quality And Also Provides With The Interactive Services
With The Latest Updates.
2. Airtime: The Duration During Which A Radio Or Television Program (Or Part Of One) Is
Transmitted.
Investment
In India There Are More Than 3,000 Financial Institutions Are Available. It Includes Indian As Well
As Foreign Banks Among That Some Are The Big Players Who Are Able To Provide The Capital To
The New Players Or To The Existing Players For The Establishment Or For The Growth Of That
Company As Well As The Overall Industry As Per Their Requirement. So, That There Is Not Difficult
To Get Capital For Any Business Person In India.
The Requirement Of The Capital Is High For The DTH Players. They Have To Give Rs. 10 Cr As Initial
Deposit Which Is Non-Refundable And Also Do Investment In Technology. The Continuous
Investment Depends On The Continuous Improvement In The Technology With The Latest
Features, So The Investment Also Very Much More Needed For To Adopt The Newly Technology.
Raw Material:
Raw Material Is Main And Important Factor For Any Industry. In DTH Industry Raw Material Is Set
Top Box And Dish. STB Is Imported By DTH Companies. Government Now Favour For Set Top Box
Buyers. Import Duty On STB Is Zero To 7.5% But Final Amount Paid By Imported Will Depend On
Exchange Rate. So It Is In Favour Of DTH Players.
Implication:
The Above Components Of Factor Condition Like, Geographical, Raw Material, Investment And
Other Factors Help Very Widely To The DTH Industry. The Geographical Factor Affects By The
Channel On The Basis On The Region And For That Connectivity Of The DTH Service More
Important To The Customer. National Resources Are Also Important Because The Satellite Is The
Main Components For The DTH Service Industry. Generally The Stbs (Set Top Box) Import From
The Outside The Country. So, DTH Service Providers Provide The Service At Low Cost To The
Customers.
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Value Chain Of Industry
Value Chain Analysis:
Value Chain Analysis Help Companies To Analyze Specific Activities, Through Which Firms Can Create A
Competitive Advantage, It Is Also Useful To Model The Firm As A Chain Of Value Creating Activities.
Michael Porter Identified A Set Of Interrelated Generic Activities Common To A Wide Range Of Firms. The
Resulting Model Is Known As The “Value Chain” And Is Depicted Below. The Goal Of These Activities Is To
Create Value That Exceeds The Cost Of Providing The Product Or Services, Thus Generating A Profit
Margin.
The Following Diagram Contained Value Chain Of The Industry, Which Includes Primary As Well As
Supporting Activity. Contribution Of Each And Every Activity Has Been Mentioned As Follow As Particularly
For DTH Industry.
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Value Chain
Over The Last Three Years, The Direct-To-Home (DTH) Satellite Industry Has Come On Strongly Worldwide.
It Has Grown From A Niche Delivery Mechanism Into A Mainstream Business. The Spread Of SubscriptionBased DTH Satellite TV Promises To Enhance Choices For Many Households In Developing Countries.
With The Government Throwing Open The DTH Sector In The Country, A Handful Of Players Have Come Up
With Grandiose Plans To Enter The Market. Given The Stiff Level Of Competition This Premium Services Will
Face From The Existing Multi-Channel Cable Network, Possible Entrants Need To Clearly Grasp A Few Of
The Winning Rules Of The Game.
Figure 21 DTH Service Supply System
Inbounds Logistic:Include Receiving, Warehousing, And Inventory Control Of Input Materials.
Raw Material Sourcing:In DTH Service Provider Companies Generally Has No Any Kind Of Raw Material But Sometimes Given CPE
Are Already Supplied By CPE (Dish, STB, Cable) Manufacturer Company Have To Store It Or Direct Supply
To Retailer Or Outlet.
Operation:The Value Creating Activates That Perform Input Into Final Product. DTH Service Provider Collect Private
Channel From Their Collaborated Channel. System Which Has Specially Designed Program To Provide
Service As Per Customer Package As Well As Request Send A Signal To The Ku-Band Satellite Which
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Transfer Signals To Subscribers Set-Top-Box Through Dish Antenna And Serve The Service As Consumer
Require Whether It Is Private Channel Or Service Providers Interactive Service. System Is Similar Like
Mobile Service System So It Is Very Easy Task For Cellular Service Provider.
Outbound Logistics:The Activities Required Getting Product Service To The Customers, Installation, Ordering Fulfillment,
Quarry Solution, New Technology And Service Updates (May Free Or Minor Charges Apply)
POSITION IN A MARKET (SUPPLY)
The Most Important Asset Is Arguably An Ability To Play A Unique Role In The DTH Value Chain. This
Advantage May Reside In Business That Has Little Or No Obvious Connection With DTH. A Company That
Has Pioneered A Business Offering Credit For Consumer Durables In A Developing Country, For Instance,
Might Be Well Placed To Supply Finance To Purchasers Of CPE.
Sales & Marketing:Those Activities Associated With Getting Buyers To Purchase The Product, Including Channel Selection,
Advertising Pricing, Etc. In India Demand Is Over Pacing The Supply. So, Generally We Find Less Focus On
The Marketing Activities From The Companies’ Side.
Two Types Of Customers Are There, One Retail & Second Industrial Or Government. To Attract Business /
Industrial Customer Special Commercial And News Channel Packages Are There In Some Players. Retail
Customer Can Be Attracted By Providing Sales Promotion Or Advertising.
Also A Simple Recharge Coupon And Options Are Available As Digital Recharge Option Like Dishtv And
“Itzcash” Company’s Recharge Service.
Promotion:Currently Companies Are Using Marketing Tool Like Free STB Or Installation, Customize Channel Package,
Special Package To Attract The Special Customer Segment Like Business Class. And Also Interactive
Services Like Educational Program, Same Other Time Program Recording, Pay-Per-View And Also MDU For
Multi User Service.
Build An Appropriate Content Offer
This Is The Single Most Crucial Choice A DTH Company Will Make. In A Remote Town With No Access To
Television, For Example, Even A DTH Bouquet Of Just Two Channels Might Seem Attractive. Transponder
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Costs Are Also A Factor In An Appropriate Content Offer. It Is The Bouquet Size That Determines How
Many Transponders Are Needed, Creating A Tradeoff Between The Cost Of Transponders And The
Richness Of The Offering.
Advertising:Ad Revenue Is Also Available To A DTH Service Provider, So The Existence Of A Robust Or Growing Ad
Market Is Important. For That Have Special Movie Time Commercial, 20:20 And Other Sports Live
Telecasting Time Commercial And Also Some Special Program Like Educational, Own TV Serial Production.
DTH Service Provider Companies Are Using Emotional Approaches In Advertising. But Right Now They Are
Started To Endorse Brand Ambassadors Like Shahrukh Khan In Dishtv, Amir Khan & Gul Panag In Tata Sky,
Saif_ Kareena_ A.R.Rehman_ Gautam Gambhir_ R.Madhvan And Zaheer Khan In Airtel Digitaltv And
Television Serial Celebrities For Bigtv.
Installation
Generally Players Are Provide Installation Service But In Some Cases (DD Direct+) May Happen Customer
Purchase Their Own CPE From The Market. Service Provider Are Always Try To Provide Indian Standard
CPE. Doordarshan Always Prefer To Serve 90 Mhz And 120 Mhz Dish Antenna As Well As Good Quality STB.
Service:After Provide An Application Equipment Of DTH Service Companies Should Have To Provide A Better
Broadcasting Service Like Interactive Service, PPV (Pay-Per-View), Movie-On-Demand And Also A Query Of
The Service Users.
Supporting Activity:The Primary Activates Described Above Are Facilitated By Support Activities.
Infrastructure:Infrastructure Includes Strategic Location In Term Of Nearby Suppliers Or Nearby Market, Adequate Space
To Run The Business, Technological Resources, Transportation Facility. All Of These Will Lead To Improve
The Performance. So, All Of The Players Have To Develop This.
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The Activities Associated With Recruiting, Development, Compensation Of Employees. One In Each Of The
Four Regions North, East, South And West For Setting Up Regional Training Centers (Rtcs) With
Commitment To Human Resource Development. The Rtcs Are Equipped With State-Of-The-Art (High-Tech)
Technologies, Teaching Aids And Equipment And Specially Made Need Based Training Packages. High
Quality Technical Guidance Has Been Translated Into Local Languages Also. Computer Based Training Is
Given To Personnel Even At Operator Level. There Are Specially Trained Employee For Installation And
Service Guide. And Also They Provide Good Remuneration To Their Employees.
Offer Superior Services
Cable Companies Are Frequently Criticized For Installation Delays, Billing Errors And Surly Staff And The
Nature Of Cable Plant Makes Signals Prone To Disruption. Staff And Customer Service Issues Relating To
CPE Installation And Maintenance May Yield A Fine Of Differentiation Above And Beyond Picture Quality.
Technology Development:
As This Is Crucial Factor Which Affecting This Service Most. Company Has To Develop New Technology As It
Helps Not Only Him But Also To Customer. Customer Can Get Good Quality Of Pictures Through Good
Technology.
Implication:A Few Things Are Assured In The DTH Industry Even In The Face Of Paradigm Shifts. First, The Value Of
Transponders Is Likely To Fall As Compression Allows More And More Content To Go Through The Same
Satellite, And As More Satellite Are Launched. Obscure Sports And The Like Will Become More Valuable;
Conversely, Much Of The Content That Is Currently Valuable Will Face Downward Pricing Pressure. Niche
Content Providers Will Emerge. The Industry Is Likely To Be Characterized First By A Period Of
Fragmentation And Then By An Increasing Concentration Of Global Consortia As Unprofitable Participants
Fold. What Is Clearer Than Ever Is That Satellite TV Is Here To Stay And Will Play Role In Bringing Television
To Mass Around The World?
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OT Analysis
Opportunity:

Huge Untapped Market :

Industry observers, like dish tv believes that the dth market grow exponentially to touch
37 million subscribers by 2010.

Dth is the emerging industry in india and there is huge market to provide the dth service in
india.

Around 2500-3000 new subscriber are being added everyday to private dth operators,
whereas only 200-300 are added to dd’s free network.

Suggestions are being mooted for the simultaneous release of movies, both in theaters as
well as on dth.

There are several remote area in india where as dth services are more suitable than cable
connections.
So, there is opportunity to grab untapped market for dth companies.

Govt. In Favors Of Industry:

Govt. Is Considering 74% FDI Capital In The DTH Sector And Taxation Polices Need To Be
Friendly And Encouraging.

The Growing Subscriber Base Will Definitely Bring Down The Prices Of Stbs (Set Top Box)
In The Long Run And Import Duty Free On Stbs (Set Top Box).

Government Reduces The License Fee, Which May Be Reduced From 10 Per Cent Venues
To 6 Per Cent Of The Gross Revenue Of The DTH Service Providers.
For, The Above Points We Can Say It Is Beneficial To New Entrance As Well As Existing
Companies.

New Products Comes In The Market:
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LG LCD With New Blue Race Technology Which Can Record A Programe At A Time Of
Broadcasting In CD /DVD. This Is Very Helpful To DTH Companies To Provide Service To Customer.
The DTH Service Providers Are Improving Their Technology For Their Product And Also
Improvement In Their Service To Provide To The Customers.

Company Have Own Cable Subscriber:

Airtel And Reliance Have Huge Mobile Subscribers Base Where As Sun Direct And Dish
TV Have Got The Cable Subscriber Base Of Sun Network And ZEE Network To Penetrate More
Into The DTH Market.

Airtel And Dish TV Have Easy To Grab The Cable Market Share.

Technology Development And Innovative Services:
Now DTH Companies Are More Concentrating On Their Services And Schemes Them. All The
Players Are Always Ready To Innovative Their Services To Attract The Customers Dish TV And
TATA Sky Provide The A-LA-Carte Services Means Special Channel That You Can Add As Per Your
Choice. And Also MS Service Provides That Called Multi Services. These Both Are Benefit To
Customer To See Their Favorite Programs. In Short Time Internet Will Also Available On The DTH
Service.


Market Developments:
The Major Factors Which Contribute For The Imminent Growth Are – Economic And Low
End Entry Fee, Free Offers, Value-Added Services, Matrimonial Information, Educational Kits Etc.

The Players Can Easily Initiate And Develop Their Market If They Have Required Capital
Availability.


Geographical, Export, Import:
Fed Up With Poor, Unpredictable Cable Television Across Small Towns And Cities, People
Are Switching Over To DTH Entertainment For Their Television At The Speed Of Light.
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
This Can Be Justified Because India Has A Varied Geography And Population Distribution.
So Cable Television Is Not Available Everywhere, Particularly In Remote Hills, Villages, Farmhouses
Etc. These Are The Places Where The Demand For Satellite Television Is Rising.


Industry Or Lifestyle Trends:
India Has A Total Of Almost 90 Million Households Which Have Television. Out Of These,
Cable Television And DTH Services Are Accessed In About 45 Million (Half).

In The Next Few Years, It Is Set To Increase By Another 10. This Will Then Make The Indian
Market The World’s Biggest Cable Television Market.

The Changing Life Style And Choice May Positively Affect To This Industry.
Implication:
DTH Industry Is At Growth Stage. Industry Has Huge Opportunity And Growth. Government Is
More Concentrating On This Industry. As They Reduced Import Duty On STB And Also Reduced
License Fee. Out Of Six Players, Two Companies Have Own Cable Subscriber. This Could Be
Benefit To Companies. As Companies Are More Focusing On Advertising Activity, Awareness
About DTH Services Is Increasing In The Market. There Is Huge Untapped Market. Existing
Companies Provides Innovative Services And Schemes. So, DTH Companies Have Benefit To Cover
That Market.
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Threats

Substitutes
 Internet Protocol Television (IPTV) Is An Upcoming Threat To DTH, But Still In The Nascent
Stage.
 CAS, If Regulated And Implemented Properly, Could Pose A Threat To DTH Players In Future.
 IPTV And CAS Is Main Substitute Of DTH Industry. They Are Coming With New Technology And
When It Implemented Right Way Then They Become Threat For DTH Industry.

New Technology In The Market:
 New Technology Accepted By TRAI Is Headend In The Sky (HITS). HITS End- User Is A Cable
Operate Who Delivers The Singles To The End Consumer.
 HITS Technology Directly Connect To Cable Operate And DTH Contact To Consumer. So, This
Technology Will Become Harmful To DTH Industry.

Low Switching Cost:
 There Is Not More Difference Between Package Price Charge By DTH And Its Substitute.
 Service Provides By DTH And Its Substitute Is Almost Same. So One Can Transfer From One To
Another.
So, Here Switching Cost Is Low For The Customers About The DTH Service.
 Government Policy/Regulations:
 TRAI And Information & Broadcasting Ministry Is The Governing Body Of DTH Service Industry.
DTH Service Covered Under The Direct To Home Broadcasting Services (Standards Of Quality
Of Service And Redressal Of Grievances) Regulations, 2007.
 Government Has Imposed Strong Rules Like No Visiting Or Repair And Maintenance Charges
Against DTH Equipment During Warranty Period, The DTH Operators Cannot Alter The
Subscription Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's
Enrollment, Etc.
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
IT Developments:
The Biggest Threat To The DTH Industry And Also To The Television Industry Is From The Growth
Of The Internet And Other IT Developments Which May Enable Viewers To Enjoy Their Daily Sops,
News Etc. Direct Through Internet.

Competitor Intentions:

After The Higher Charges On License And Availability Of The Capital, It Is Very Easy To The
Firm To Enter In The Industry.

The Deductions And Relieves Provided By The Government May Also Attract The New
Players.

This May Make The Competition Stiffer For The Existing Players.

Seasonality, Weather Effects:

The Major Obstacle Faced By The Industry Is Lack Of The Proper Signals In Bad Climate.

Therefore, In Hilly Or Rainy Areas The Industry Is Unable To Provide The Services At Its
Best.

Lack Of Possibility Of Growth:

At Present The Industry Is At Growth Stage, Numbers Of Peoples Are Still Remaining To Be
Covered By The DTH.

But After Covering The As Many Numbers Of The People As It Can, There Is No Scope For
The Industry To Grow Further In The Same Market

Even It Would Be Difficult To Attract The Users From One Service Provider To The Other
Because Of The Lack Of The Difference In The Core Competency.
Implication:
DTH Substitutes Will Become Strong By Adopting New Technology Nearby Future. And HITS
(Head End In The Sky) New Technology Comes In To Market If It Successful Than The It Is Harmful
To DTH Industry. Competitors Are More Conscious About Their Technological Development And
Market Expansion By The Innovation In Technology As Well As With The Innovative Products. The
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Climate Plays Vital Role To Affect The Service. The Improvement In The Technology Affect To The
DTH Industry. Above These Factors Can Become Threat For DTH Industry In Future.
Summary:
From The OT Analysis, The Opportunity For The Players To Enter As Well As To Envelop The
Market Because The Market Is Untapped And The Policies From The Government Are Much More
Liberal For The DTH Service Providers Provide To The Customers. So, It Is The Win-Win Situation
For Both The Parties Like, DTH Service Providers And Customers. There Are Also Some Threats For
The DTH Service Providers By The Improvements In The Technology, Climate Condition,
Substitutes Also Affect To The Rivals Of The Industry Because The Cable Operator Already
Covered Market.
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Annexure
TRAI Regulation
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART III, SECTION 4
THE DIRECT TO HOME BROADCASTING SERVICES (STANDARDS OF QUALITY OF
SERVICE AND REDRESSAL OF GRIEVANCES) (AMENDMENT) REGULATIONS, 2009
No. 3 Of 2009
TELECOM REGULATORY AUTHORITY OF INDIA
NOTIFICATION
th
New Delhi, The 12 March, 2009
F. No. 16-2/ 2009 - B&CS.---- In Exercise Of The Powers Conferred By Section 36, Read With SubClauses (I) And (V) Of Clause (B) Of Sub-Section (1) Of Section 11 Of The Telecom Regulatory
Authority Of India Act, 1997 (24 Of 1997), Read With Notification Of The Government Of India, In
The Ministry Of Communication And Information Technology (Department Of
Telecommunication) No.39
(A) Issued, In Exercise Of The Powers Conferred Upon The Central Government Under Clause (D)
Of Sub-Section (1) Of Section 11 And Proviso To Clause (K) Of Sub-Section (1) Of Section 2 Of The
Said Act, And
(B) Published Under Notification No. S.O.44 (E) And 45 (E) Dated The 9th January, 2004 In The
Gazette Of India, Extraordinary, Part III, Section 4,
The Telecom Regulatory Authority Of India Hereby Makes The Following Regulations To Amend
The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redressal Of
Grievances) Regulations, 2007 (8 Of 2007), Namely:1. (1) These Regulations May Be Called The Direct To Home Broadcasting Services (Standards Of
Quality Of Service And Redressal Of Grievances) (Amendment) Regulations, 2009.
(2) They Shall Come Into Force With Effect From The Date Of Their Publication In The Official
Gazette.
2. In The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redressal Of
Grievances) Regulations, 2007
(A) After Regulation 4, The Following Regulation Shall Be Inserted, Namely:“4A. Obligation Of Direct To Home Operator To Provide Repair And Maintenance Of Direct To
Home Customer Premises Equipment.
(1) Every Direct To Home Operator Shall Provide A Warranty In Respect Of Direct To Home
Customer Premises Equipment Which Has Been Acquired By A Direct To Home Subscriber On
Outright Purchase Basis From Such Direct To Home Operator.
(2) The Direct To Home Subscribers Who Have Acquired The Direct To Home Customer Premises
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Equipment On Outright Purchase Basis Shall Not Be Required To Pay Any Sum As Charges
(A) For Repair And Maintenance Of The Direct To Home Customer Premises Equipment; Or
(B) For Visiting The Premises Of Such Direct To Home Subscriber For The Purpose Of Carrying Out
Repair And Maintenance Of Direct To Home Customer Premises Equipment
During The Period Of Validity Of Such Warranty.”
(B) After Regulation 9, The Following Regulations Shall Be Inserted, Namely:“9A. No Change In Composition Of A Subscription Package During First Six Months Of
Enrolment Or During The Period Of Validity Of Subscription Paid In Advance.(1) No Direct To
Home Operator Shall Change The Composition Of A Subscription Package Which Has Been
Subscribed To By A Direct To Home Subscriber, So As To Discontinue Exhibition Of Any Particular
Channel In That Subscription Package,
(A) During The Period Of Six Months From The Date Of Enrolment Of The Subscriber To Such
Subscription Package In The Case Of A Subscriber Who Pays His Subscription Amounts Under
Such Subscription Package By Recharging Or By Making Payments Periodically To The Direct To
Home
Operator; Or
(B) During The Entire Period Of Validity Of The Subscription Package If The Subscription Amount
In Respect Of Such Subscription Package Has Been Paid In Advance By The Direct To Home
Subscriber Or In Instalments As Per Offer Of The Direct To Home Operator,
If Such Channel Continues To Be Available On Its Direct To Home Service On Its Platform:
(2) If Any Particular Channel Included In A Subscription Package Which Has Been Subscribed To By
A Direct To Home Subscriber Subsequently Becomes Unavailable On The Direct To Home Service
Of The Direct To Home Operator On Its Platform, The Direct To Home Operator Shall Reduce The
Subscription
Charges For Such Subscription Package On A Proportionate Basis From The Date Of
Discontinuance Of The Channel From The Direct To Home Service Of The Direct To Home
Operator Till The Expiry Of A Period Of Six Months From The Date Of Enrolment Of That
Subscriber, Or Till The Expiry Of The Contracted Period Of Subscription For Which The Amount Of
Subscription Has Been Paid In Advance Or In Installments As Per Offer Of The Direct To Home
Operator, Whichever Is Later.
Provided That, Instead Of Proportionately Reducing The Subscription Charges For Such
Subscription Package On Account Of Non-Availability Of Such Channel, The Direct To Home
Operator May, At Its Discretion, Introduce In Such Subscription Package Another Channel Of The
Same Genre And Language As The Channel Which Has So Become Unavailable On The Direct To
Home Service Of The Direct To Home Operator.
Provided Further That The Direct To Home Operator Shall Give An Option To Each One Of Its
Direct To Home Subscribers, Who Have Subscribed To Such Subscription Package, An Option To
Choose From The Modified Subscription Package With Charges Reduced On Proportionate Basis
And The Modified
Subscription Package With The Removed Channel Replaced By Another Channel Of The Same
Genre And Language, And The Direct To Home Subscriber Shall Be Free To Exercise The Option
For The Period From The Date Of Discontinuance Of The Channel From The Direct To Home
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Service Of The Direct To Home Operator Till The Expiry Of A Period Of Six Months From The Date
Of Enrolment Of That Subscriber, Or Till The Expiry Of The Contracted Period Of Subscription For
Which The Amount Of Subscription Has Been Paid In Advance Or In Installments As Per Offer Of
The Direct To Home Operator, Whichever Is Later.
Explanation: For The Removal Of Doubts, It Is Hereby Declared That The Amount Of Reduction On
Proportionate Basis In The Subscription Charges, On Account Of Removal Of A Channel From A
Subscription Package, Shall Be Calculated By Dividing The Amount Of Subscription Charges For
The Original Subscription Package By The Number Of Channels Included In The Original Package.
9B. Notice Before Change In Composition Of A Subscription Package.
Every Direct To Home Operator Shall Give Prior Notice Of Fifteen Days To Its Direct To Home
Subscribers Subscribing To Any Subscription Package Before Changing The Composition Of That
Subscription Package.”;
(C) In Regulation 10, The Following Provisos Shall Be Inserted, Namely:“Provided That A Direct To Home Operator May Not Discontinue The Direct To Home Service To A
Direct To Home Subscriber At The Request Of Such Direct To Home Subscriber, If Such Request
For Suspension Of Subscription Is For A Period Which Comprises Part Of A Calendar Month.
Provided Further That Every Direct To Home Operator Shall Suspend The Direct To Home Service
To A Direct To Home Subscriber At The Request Of Such Direct To Home Subscriber, If Such
Request For Suspension Of Subscription Is For A Period Of A Calendar Month Or Multiple Of
Calendar Months And The Requested Period Of Suspension Does Not Exceed Three Calendar
Months.”.
(R. N. Choubey)
Principal Advisor (B&CS)
Note.1-----The Principal Regulations Were Published Vide Notification F. No. 4-55/2007 - B&CS
Dated 31st August, 2007.
Note.2-----The Explanatory Memorandum Explains The Objects And Reasons Of The Direct To
Home Broadcasting Services (Standards Of Quality Of Service And Redressal Of Grievances)
(Amendment) Regulations, 2009.
EXPLANATORY MEMORANDUM
Background
1.
The Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redressal
Of Grievances) Regulations, 2007, Were Issued On 31st August, 2007. These Regulations Were
Issued To Lay Down The Standards Of Quality Of Direct To Home Services And To Protect The
Interests Of Direct To Home Subscribers. At The Time Of Issue Of These Regulations, Only Two
Direct To Home Operators Apart From Doordarshan Were Providing Direct To Home Services In
The Country. Since Then, Three New Direct To Home Operators Have Started Commercial
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Operations And The Number Of Direct To Home Subscribers Has Also Risen To About 11 Million.
With The Evolution Of The Direct To Home Segment And The Increase In The Number Of Direct To
Home Subscribers, New Issues Relating To Quality Of Direct To Home Service Have Arisen. In
Order To Address These Issues The Authority Has
Decided To Amend The Direct To Home Broadcasting Services (Standards Of Quality Of Service
And Redressal Of Grievances) Regulations, 2007.
Consultation Process
3.
Sub-Clause (V) Of Clause (B) Of Sub-Section (1) Of Section 11 Of The Telecom
Regulatoryauthority Of India Act, 1997 (Hereinafter Referred To As The TRAI Act, 1997),
Provides For The Authority To “Lay Down The Standards Of Quality Of Service To Be Provided By
The Service Providers And Ensure The Quality Of Service And Conduct The Periodical Survey Of
Such Service Provided By The Service Providers So As To Protect Interest Of The Consumers Of
Telecommunication Services”. Sub-Section (4) Of Section 11 Of The TRAI Act, 1997 Requires The
Authority To Ensure Transparency While Exercising Its Powers And Discharging Its Functions.
Accordingly, The Authority Decided To Go In For A Consultation Process Before Amending The
Direct To Home Broadcasting Services (Standards Of Quality Of Service And Redressal Of
Grievances) Regulations, 2007.
4. The Process Of Consultation Was Initiated By Circulating A Consultation Paper On The Quality
Of Service Issues For Cable TV Services In Non-CAS Areas And For DTH Services On 1st
December, 2008 Inviting Inputs From The Stakeholders. Responses Were Received From 26
Stakeholders/ Representatives. An Open House Discussion Was Also Held On The 6th
February, 2009 In Kolkata With Representatives Of Stakeholders To Further Deliberate On
Various Issues Raised In The Consultation Paper.
Issues For Consultation
The Issues Which Were Raised For Consultation In The Consultation Paper Are As
Under:i) Whether The DTH Operators Should Be Specifically Prohibited From Dropping Of Channels
From A Subscription Package For A Subscriber For Six Months From The Date Of
Enrolment Of That Subscriber, If The Channel Continues To Be Available On Their
Platform.
ii) Within This Period Of Six Months, In Case The Channel Ceases To Be Available On A
Particular DTH Platform, Then Whether It Would Be Appropriate To Have A Mechanism
Of Reducing The Subscription Charges By An Amount Equal To The Wholesale A-LaCarte Rate Of That Channel. Alternatively, Can You Suggest Any Other Methodology
For Such Compensation To The Subscriber? Should Such Compensation Be
Paid/Adjusted Even When One Channel In A Package Is Dropped, And It Is
Replaced/Substituted By Another Channel So That The Total Number Of Channels In
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That Package Is Not Affected?
iii) Whether The Subscribers Should Also Be Required To Subscribe To Any Channel/ Package
For A Certain Minimum Subscription Period As In CAS Areas. If Yes, What Should Be
Such Minimum Subscription Period?
iv) Whether There Is Any Justification For Visiting Charges For “No Signal” Complaint By The
Subscribers? If Yes, Should There Be A Ceiling On Such Visiting Charges For Complaints
Of “No Signal”?
v) Similarly, Should Any Ceiling Be Placed In Respect Of Visiting Charges For Repair And
Maintenance Of CPE For DTH Services? Alternatively, Should DTH Operators Be
Required To Offer Annual Maintenance Contracts (Amcs) To Their Subscribers?
vi) Can You Suggest Some Form Of Amcs For DTH Service Covering All Aspects Such As Repair
& Maintenance Charges For CPE, Visiting Charges, Attending “No Signal” Complaints,
Etc.?
vii) Whether The Service Providers Should Be Required To Make Available Toll-Free Numbers
For Recharge Calls For Prepaid Accounts?
viii)Whether The Request For Suspension Of Service For Full Calendar Months Only Should Be
Entertained?
ix) Whether Tariff Plan Or Subscription Package Changes Requested By The DTH Subscriber
Should Be Accepted And Implemented Immediately Or From The Start Of Next Billing
Cycle For DTH Subscriber.
x) Whether Advance Notice Of Minimum 30 Days Should Be Given By DTH Operators To A
DTH Subscriber Before Terminating His Existing Tariff Plan Provided That No Tariff Plan
Can Be Terminated Within The Contracted Period, If Any, For That Package Or Within
Six Months Of Enrolment Of That Subscriber To That Package.
Analysis Of The Responses Received During The Consultation Process
Dropping Of Channels From A Package
The DTH Operators Have Suggested That The Freedom Of Adding/ Dropping The Channels Should
Be With The DTH Operator. On The Other Hand The Consumers Have Demanded That Protection
Should Be Available Not Only For Six Months, But For The Entire Contract Period Of Subscription
Package, If Such Period Exceeds Six Months, So Long As Advance Payment Has Been Made By The
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Subscriber. The DTH Operators Have Expressed A View That There Need Not Be Any Reduction In
Subscription Charges In Case Of Any Channel Being Withdrawn From A Subscription Package.
However, The Consumers Have Taken A Stand That In Case Of Any Channel Being Withdrawn
From A Subscription Package, The Subscribers Should Be Compensated By Way Of Reduction In
Subscription Fee. Further,
Some Consumers Have Demanded That In Case A Channel Is Substituted By Another Channel, The
Choice Of Subscribing To The New Channel Or To Get A Reduction In Subscription Fee Should Be
With The Subscriber. Minimum Subscription Period.
The Broadcasters And The DTH Operators Have Favoured Imposition Of A Minimum Subscription
Period For Any Channel/ Package Similar To The 4 Month Period Prescribed In Quality Of Service
Norms For CAS. However, The Consumers Are Divided On The Issue And While Some Of The
Consumers Agree With The Concept Of Minimum Subscription Period, Others Have Opposed It.
Maintenance Of Customer Premises Equipment.
The Issue Of Visiting Charges Payable By The DTH Subscribers For Visits Made By Personnel Of
DTH Operators For Repair And Maintenance Of CPE Also Divided The Consumers. While Some
Consumers Opposed Visiting Charges Or Wanted A Ceiling On The Visiting Charges, Others Did
Not Agree With Them. It Was Pointed Out By An Individual That “…Warranty Does NOT Include
Transporting Charges For Individuals And Hardware. Therefore For Customers Of All Categories,
Itemized Bills Must Be Issued Detailing The Breakdown Of Payments Sought. …”. The DTH
Operators Did Not Favour Any Kind Of Regulation Of Visiting Charges.
Almost All The Stakeholders Were Of The View That The DTH Operators Should Offer Annual
Maintenance Contracts For Maintenance Of CPE To Their Subscribers. Different Suggestions Were
Also Received Regarding The Form Of Annual Maintenance Contracts. Onedth Operator Has
Suggested That All DTH Operators Must Have Their Own Annual Maintenance Contracts. Toll Free
Number For Recharge Calls.
The Proposal Has Been Opposed By The DTH Operators And The Consumers Have Unanimously
Favoured The Proposal. Only One DTH Operator Has Suggested That All DTH Operators Should
Make Provision For Toll-Free Numbers For Calls Made For Recharging Their Prepaid Accounts.
Suspension Of Service Or Change Of Plan On Request Of Subscribers.
All The DTH Operators Have Suggested That The Request For Suspension Of Service For Full
Calendar Months Only Should Be Entertained. It Has Been Pointed Out By The DTH Operators
That The Broadcasters Are Paid On The Basis Of Calendar Months And Accordingly, Any
Suspension Of Service For Part Of The Month Results In Financial Burden On The DTH Operator. It
Was Also Suggested By An Operator That “…Either It Should Be Done From The Calendar Month
Or The Operator Should Be Allowed To Charge A Service Fees For Extending This Service…”. The
Consumers Were Divided On The Issue.
As Regards Timeframe For Carrying Out Changes In Tariff Plan Or Subscription Package On The
Request Of A DTH Subscriber, The DTH Operators Wanted To Be Permitted To Levy
Administrative/ Additional Charges For Such Changes. Further, It Was Pointed Out By Some DTH
Operators That Any Upgradation Is Possible With Immediate Effect, But Downgradation Of A
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Package Can Be Done From Next Billing Cycle Only As The Broadcasters Have To Be Paid For
Supply Of Content. The Consumers Were Divided On This Issue. Some Of The Consumers
Suggested That The DTH Subscribers Should Be Billed On Pro Rata Basis But There Should Not Be
Any Administrative Charge. Notice Period For Termination Of A Tariff Plan.
Most Of The Consumers Wanted A Notice Of Minimum 30 Days To Be Given By DTH Operators To
A DTH Subscriber Before Terminating His Existing Tariff Plan. Some Of The Consumers Wanted A
60 Days Notice, While Others Suggested That The DTH Subscriber May Be Warned About Such A
Change 15 Days In Advance Of Exhaustion Of Credit Limit. The DTH Operators Opposed Any Such
Notice.
Rationale For Making Amendment To The Direct To Home Broadcasting Services (Standards Of
Quality Of Service And Redressal Of Grievances) Regulations, 2007
The Authority Noted That A Large Number Of Complaints Have Been Received From The Direct To
Home Subscribers Regarding Dropping Of Channels From Subscription Packages Offered By DTH
Operators. In Case Of Subscription To DTH Services, A Subscriber Subscribes To The Service On
The Basis Of Specific Channels Included In The Subscription Package. If Any Channel Is Taken Out
Of A Subscription Package And It Is Replaced By Another Channel Then The DTH Subscriber May
Be Getting The Same Number Of Channels As Earlier, But Will Be Deprived Of Viewing The
Particular Channel Which Has Been Removed. In Case The Channel Which Is Removed Is Offered
To The Subscriber As An Add-On Package Then The Subscriber Ends Up Paying More For Viewing
That Channel Which Was Earlier Included In His Subscription Package. This Subverts The Tariff
Protection Provided To DTH Subscribers By Regulation 9 Of The Direct To Home Broadcasting
Services (Standards Of Quality Of Service And Redressal Of Grievances) Regulations, 2007.
Further, The Authority Has Also Noted That The DTH Operators Are Offering Annual Or Fixed
Period Subscription Contracts Also To DTH Subscribers. To Protect The Interests Of The DTH
Subscribers Who Have Entered Into Annual Or Fixed Period Subscription Contracts With The DTH
Operators, It Is Necessary To Ensure That The Channels Offered To The Subscriber At The Time Of
Entering Into The Subscription Contract Are Not Removed From The Package During The Validity
Of Subscription Contract.
However, On The Other Hand It Must Be Recognized That The DTH Operators Have To Tailor Their
Packages According To The Changing Demands Of Their Subscribers. Accordingly It Was Not
Considered Advisable To Completely Prohibit The DTH Operators From Making Changes To Their
Subscription Packages. To Balance The Interest Of Service Providers And Subscribers, The DTH
Operators Have Been Prohibited From Changing The Composition Of Any Subscription Package
For A Minimum Period Of Six Months From The Date Of Enrolment Of The Subscriber For Such
Subscription Package, If The Channel Continuous To Be Available On Their DTH Service Platform
From The Broadcaster In Any Other Subscription Package. In Cases Where The Existing
Subscription Contract Between DTH Subscriber And The DTH Operator Is For A Period Longer
Than Six Months, Such Prohibition Would Apply For The Complete Term Of The Subscription
Contract.
In Case Any Channel Has To Be Removed From A Subscription Package By The DTH Service
Provider During The Contracted Period Of The Subscription Or Six Months Whichever Is Later Due
S. V. Institute of Management, KADI 2008-10
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To The Channel No Longer Being Available On The DTH Service Platform In Any Other Package,
Then The DTH Operator Would Be Required To Compensate The DTH Subscriber By Way Of
Proportionate Reduction In The Subscription Charges For A Minimum Period Of Six Months From
The Date Of Enrolment Of The Subscriber For Such Subscription Package Or For The Remaining
Period Of Subscription Contract Whichever Is More. However, The DTH Operator May Replace
Such A Channel By Another Channel Of The Same Genre And Language In The Subscription
Package Without Reducing The Subscription Charges. This Will Enable The DTH Operators To
Include More Popular Content In Their Offerings And Package The Content To Suit The Needs Of
Their Subscribers. However, The Option To Choose The Modified Subscription Package With
Reduced Charges Or The Modified Subscription Package With The Replaced Channel Shall Remain
With Direct To Home Subscriber. Further, It Has Been Mandated That The DTH Operators Should
Give Prior Notice Of Fifteen Days Before Changing The Composition Of Any Package To All The
Subscribers Who Have Subscribed To That Package.
Presently There Is No Restriction On The Direct To Home Operators About Offering Any Channels/
Packages On Quarterly/ Annual/ Any Other Basis. The Direct To Home Operators Have Been
Designing Their Packages As Per The Demand Of Customers And Terms And Conditions Of Their
Interconnection Agreements With The Broadcasters. Accordingly, The Authority Is Of The View
That Currently There Is No Need To Bring In Any Regulation Requiring The Direct To Home
Subscribers To Subscribe To Any Channel/ Package For A Certain Minimum Subscription Period As
In CAS Areas. The Direct To Home Operators Have Also Been Mandated To Offer Warranty For
CPE Acquired By Their Subscribers On Outright Purchase Basis From Them. Although Offering Of
AMC By DTH Operators Is Not Being Mandated, It Is Expected That Some Competition Among The
Direct To Home Operators Would Ensure That The Repair And Maintenance Services Are Available
To The DTH Subscribers. Even Presently, Some Of The DTH Operators Are Already Offering Amcs
For DTH CPE.
Presently, Some Of The Direct To Home Operators Are Not Charging Any Visiting Charges For
Repair And Maintenance Of CPE While Some Are Charging. The Authority Is Of The View That
Market Forces Will Take Care Of This Issue. The DTH Operators Have To Compete With Cable
Networks And No Such Charges Are Levied By Cable Operators. Further, There Are Five Pay DTH
Operators In The Country And Therefore There Is Some Level Of Competition Among DTH
Operators Also. Hence It Was Not Found Necessary To Prohibit, By Way Of Regulation, The Direct
To Home Operators From Charging Any Visiting Charges After The Warranty Period Is Over, As It
Was Felt That Competition And Market Forces Will Work On This Issue To Ensure That The
Interests Of Direct To Home Subscribers Are Protected.
The Authority Has Decided Against Mandating The Direct To Home Operators To Make Available
Toll-Free Numbers For Recharge Calls For Prepaid Accounts. The Main Reason For This Decision Is
That Ultimately The Cost Of Operational Expenses Of Providing Direct To Home Service Gets
Passed On To The Direct To Home Subscribers. Any Additional Expenditure By Direct To Home
Operators In Making Available Toll-Free Numbers For Recharge Calls For Prepaid Accounts Will
Result In Increase In The Subscription Charges In The Long Run Negating The Benefits From The
Toll Free Number. However, It Is Expected That The Telephone Number Provided For Recharge
Calls For Prepaid Accounts Should Not Have Premium Charges.
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The Direct To Home Operators Have To Pay The Broadcasters On The Basis Of Number Of Viewers
For The Entire Calendar Month. Any Suspension Of Service For Part Of The Month Puts A Direct To
Home Operator At A Loss Because Even Though The Direct To Home Subscriber Is Not Required
To Make Payment For The Period Of Suspension, The Broadcasters Have To Be Paid For The Entire
Calendar Month. Accordingly, The Direct To Home Operators Have Been Permitted Not To
Entertain, At Their Discretion, Any Request For Suspension Of Service For Part Of Calendar
Months. However, It Has Also Been Mandated That The DTH Operators Should Entertain
Requests For Suspension Of Service For A Period Which Does Not Comprise Part Of A Month And
Which Does Not Exceed Three Calendar Months.
The Issue Of Change Of Tariff Plan Or Subscription Package On The Request Of A Direct To Home
Subscriber Is Also Linked With The Payments That A Direct To Home Operator Is Required To
Make To The Broadcasters. Accordingly, Any Downgradation Of Subscription Package Entails
Discontinuance Of Supply Of Certain Channels To The Direct To Home Subscriber. However, The
Broadcasters Whose Channels Have Been Discontinued Have To Be Paid For The Entire Month/
Billing Cycle. Therefore, Such A Downgradation Is Normally Done From The Next Billing Cycle. The
Authority Has Noted That The Upgradations Are Done By The Direct To Home Operators
Immediately. Therefore, No Regulation Is Being Brought In Regarding This Aspect.
The Issue Of Advance Notice To A Direct To Home Subscriber Before Terminating His Existing
Tariff Plan By The Direct To Home Operator Is To Be Seen In The Context Of Tariff Protection
Being Made Available To The Direct To Home Subscriber. The Present Amendment Regulations
Have Extended The Protection Available To The Direct To Home Subscriber Regarding
Composition Of A Subscription Package For Six Months From The Date Of Enrolment Or
Contracted Period, Whichever Is Longer. However, An Advance Notice Will Enable The Direct To
Home Subscribers To Make An Informed Choice Out Of New Subscription Packages Available
Once The Existing Package Is Discontinued After The Period Of Tariff Protection (Six Months From
The Date Of Enrolment Or Contracted Period, As
The Case May Be) Has Expired. Accordingly, A Prior Notice Of Fifteen Days Has Been Mandated
For Change In Composition Of A Subscription Package.
S. V. Institute of Management, KADI 2008-10
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Bibliography
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Jr., A. A. (Special Indian Edition). Crafting And
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Business Standard
Financial Express
Timres Of India
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Yahoo
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S. V. Institute of Management, KADI 2008-10
Magazines
TV Veopar Journal
Fortune India
Business World
Capital Market
Marketing Mastermind
4p’s
Pitch
Brand Reporter
Web Sites
Www.Mib.Nic.In
Www.Dishtv.In
Www.Tatasky.Com
Www.Sundirect.In
Www.Airtel.In/Digitaltv
Www.Bigtv.Co.In
Www.Videocond2h.Com
Www.Indiabroadband.Net
Www.Indiatelevision.Com
Www.Indiainbusiness.Nic.In
Www.Strategyr.Com
150
Source Addresses
1 Dream Satellite TV Shanghai Service Center (www.dreamsatellite.com) product FAQ’s.
2 Wikipedia.com http://en.wikipedia.org/wiki/Direct_To_Home
3 Wikipedia.com http://en.wikipedia.org/wiki/Direct_To_Home
4 http://www.satelliteretailers.com/dish_installation.html (by Harry W. Thibedeau, edited by Alex Breckon)
5 http://www.indiantelevision.com/dth/dth12.htm (Posted on 7 April, 6:00 PM)
6
http://fjallfoss.fcc.gov/edocs_public/attachmatch/FCC-07-189A1.txt through Wikipedia.org
Wikipedia.com http://en.wikipedia.org/wiki/iptv
8
Sag.org http://www.sag.org/content/new-media-glossary
9
http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm
10
www.mumbai.mtnl.net.in/iptv/index.html
11
http://mumbai.mtnl.net.in/iptv/index.html
12
http://www.calcutta.bsnl.co.in/iptv/index.php
13
http://www.rcom.co.in/iptv/
14
www.mumbaispace.com
15
http://www.indiabroadband.net/direct-home-satellite-cable-iptv/15016-airtel-iptv.html
16
http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm
17
http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm
18
http://en.wikipedia.org/wiki/Satellite_television edited...
19
TV VEOPAR JOURNAL/ April 2009/ Page No:40
20
http://www.apexinfotech.co.in/technology.html
21
http://voicendata.ciol.com/content/service_provider/106050106.asp
22
http://www.strategyr.com/DTH_Satellite_TV_Services_Market_Report.aspx
23
http://www.researchandmarkets.com/reportinfo.asp?report_id=600090&t=t&cat_id=
24
http://www.indiantelevision.com/special/sperep1.htm, Posted on 5 June
25
http://www.indiantelevision.com/dth/dth12.htm
26
http://www.tvnext.in/news/155/ARTICLE/1760/2008-12-01.html December 1st, 2008
27
Source: ACCEQUITY Financial and Statistical database software.
28
www.tradingeconomics.com
29
Macroeconomic and Monetary Developments Second Quarter Review 2009-10
30
www.indexmundi.com
31
www.cia.gov/library/publications/the-world-factbook/geos/in.html
32
Antenna: An electrical device that sends or receives radio or television signals
33
DTH: Direct from government: The Indian Express Mrs. Ila Patnaik Posted: Dec 28, 2005
34
http://pib.nic.in/focus/foyr2001/fomar2001/dth_glines.pdf
35
Satellite: Man-made equipment that orbits around the earth or the moon
36
Ku Band: key-you Band Satellite
37
http://www.tech-faq.com/ku-band.shtml which is taken from Ku-Band Satellite TV: Theory, Installation and Repair
38
http://www.indiantelevision.com/satreckon/satelliteindia/satellitesoverindia.htm
39
http://www.zeetelevision.com/html/AboutZee.asp?Content=14
40
Sun Direct official website www.sundirect.com
41
http://www.lyngsat-maps.com/maps/in4b_ecc.html
42
http://www.dishtv.in/mdu.aspx
43
Project report on “Sales and Distribution Effectiveness: A Comparative Study of Tata Sky & Airtel DTH.”
44
http://www.dishtv.in/mdu.aspx
45
http://sivasundaram.com/wp-content/uploads/2007/08/dth-industry-in-india.pdf
7
S. V. Institute of Management, KADI 2008-10
151
46
DTH cos call for licence fee cut, 2 Jan 2009, Meenakshi Verma Ambwani, Economics Times
business Standard News Paper Monday 9th November 2009 page no.2
48
Business Standards News Paper, 9-11-2009
49
http://www.valuebasedmanagement.com
50
Business Standard News Paper Monday 9th November 2009
47
51
52
http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm
http://www.naukrihub.com/india/media/overview/categories/television/
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