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ContentsList of Figures..........................................................................................................................5List of Tables............................................................................................................................5Chapter 1...................................................................................................................................6

Research Methodology:................................................................................................................6Research Objective:...............................................................................................................................................6

Primary Objective:.............................................................................................................................................6Secondary Objective:.......................................................................................................................................6

Research Design:....................................................................................................................................................6Data Collection & Sources:..................................................................................................................................7

Chapter 2...................................................................................................................................8Introduction.......................................................................................................................................8

Product Profile.........................................................................................................................................................8Definition..............................................................................................................................................................8DTH Service.........................................................................................................................................................9

Product History......................................................................................................................................................10Global Market....................................................................................................................................................10Indian Market....................................................................................................................................................18A Practical Perspective..................................................................................................................................21Substitutes Of The Product...........................................................................................................................23Product Technology And Service Processing.........................................................................................32Industry Life Cycle...........................................................................................................................................37

Chapter 3..................................................................................................................................39Global Scenario..............................................................................................................................39

Global........................................................................................................................................................................39Global Players........................................................................................................................................................39

Total Companies Profiled: 72 (Including Divisions/Subsidiaries - 80)............................................39Global Major Players.......................................................................................................................................40

Cable Vs. DTH - An Overview Of The World Scenario..............................................................................41PPV (Pay-Per-View)...............................................................................................................................................47Opportunities For Indian Vendors...................................................................................................................49

Chapter 4..................................................................................................................................50Financial Analysis..........................................................................................................................50

Revenue Structure:..............................................................................................................................................50Cost Structure:......................................................................................................................................................51

Chapter 5..................................................................................................................................54PEST Analysis:.................................................................................................................................54

Political Factors.....................................................................................................................................................54Opposition By Political Parties:...................................................................................................................54Regulatory Role Of Government.................................................................................................................55Rules For Licensing.........................................................................................................................................55FDI Cap In DTH To Go Up To 74%..............................................................................................................58Government Stability......................................................................................................................................58

Economic Factors.................................................................................................................................................60

S. V. Institute of Management, KADI 2008-10

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Currency Stability............................................................................................................................................60GDP (Gross Domestic Product)...................................................................................................................61Inflation Rate.....................................................................................................................................................62GDP Based On PPP..........................................................................................................................................63Interest Rate:....................................................................................................................................................64Budget Impact On DTH Industry.................................................................................................................65

Social Factors.........................................................................................................................................................66Consumer Attitudes And Opinions.............................................................................................................66Brand, Company, Technology Image........................................................................................................66Buying Access And Trends...........................................................................................................................67Age Distribution And Lifestyle Trend........................................................................................................67Family Form And Population Shift..............................................................................................................68Cultural Implications Of DTH........................................................................................................................68

Technological Factors.........................................................................................................................................70DTH Technology...............................................................................................................................................70Govt. Course Of Action Towards Technology.........................................................................................71Technology Incentives...................................................................................................................................72About Ku-Band..................................................................................................................................................73Satellite Introduction......................................................................................................................................77Satellite Footprint............................................................................................................................................77Multi Dwelling Unit..........................................................................................................................................81

Michel Porter’s Five Force Analysis......................................................................................83Threats Of New Entrants....................................................................................................................................83

Access To Distribution Net-Work:...............................................................................................................83Advertising & Marketing Activity:...............................................................................................................83Regulation & Norms:.......................................................................................................................................83Capital Requirement:......................................................................................................................................84Cost Design:.......................................................................................................................................................84Industry Growth:..............................................................................................................................................84Government Policy:.........................................................................................................................................84

Threats Of Substitutes........................................................................................................................................86Determinants Of Substitution Threat........................................................................................................86Costs Of Switching To Substitutes:............................................................................................................86Availability Of Substitute Products:...........................................................................................................87

Bargaining Power Of Suppliers........................................................................................................................88Satellite:..............................................................................................................................................................88Set-Top Box:......................................................................................................................................................88Backward Integration:....................................................................................................................................89Supplier Switching Cost:................................................................................................................................89Forward Integration:.......................................................................................................................................89

Bargaining Power Of Buyers.............................................................................................................................90Buyer Switching Costs:..................................................................................................................................90Brand Awareness:............................................................................................................................................91Availability Of Substitute Products:...........................................................................................................91Buyers’ Purchase Frequency:......................................................................................................................91Innovative Services:........................................................................................................................................91

Inter Firm Rivalry..................................................................................................................................................93No. Of Player In Industry:..............................................................................................................................93Market Share:....................................................................................................................................................94Industry Growth:..............................................................................................................................................95Untapped Market:............................................................................................................................................95Promotional Activities:...................................................................................................................................95Exit Barrier:........................................................................................................................................................96

Chapter 6..................................................................................................................................98


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Driving Forces.................................................................................................................................98Internet Technology Applications:..................................................................................................................98Long Term Industry Growth:.............................................................................................................................98Product Innovations:............................................................................................................................................98Technological Changes:.....................................................................................................................................98Regulatory Influence:..........................................................................................................................................99Changing Societal Concerns, Attitude & Lifestyles:.................................................................................99

Key Success Factors...................................................................................................................100Innovative Services:..........................................................................................................................................100Distribution:..........................................................................................................................................................100Innovative Marketing:.......................................................................................................................................101Technology:..........................................................................................................................................................101

Strategic Factors:........................................................................................................................102Exploit Bottlenecks:...........................................................................................................................................102Move First:............................................................................................................................................................102Exploit Market Niche:........................................................................................................................................102

Chapter-7...............................................................................................................................104Portfolio Models...........................................................................................................................104

BCG Matrix............................................................................................................................................................104Strategies Of Players:...................................................................................................................................105Suggested Strategy:.....................................................................................................................................108

GE9 Cell Matrix.............................................................................................................................111Industry Attractiveness:...................................................................................................................................113Business Strength:.............................................................................................................................................114

ADL (Arthur D. Little) Matrix..................................................................................................116Competitive Position..........................................................................................................................................116Industry Maturity................................................................................................................................................116

Diamond Model.............................................................................................................................119Government..........................................................................................................................................................119

Rules For Licensing:......................................................................................................................................119Trade Restrictions And Tariffs...................................................................................................................120Foreign Direct Investment:.........................................................................................................................121Government Stability....................................................................................................................................122Government Policy:.......................................................................................................................................122

Firm Strategy, Structure And Rivalry...........................................................................................................123No. Of Players And Market Share:............................................................................................................123Industry Growth:............................................................................................................................................123Untapped Market:..........................................................................................................................................123Promotional Activities:.................................................................................................................................124Exit Barrier:......................................................................................................................................................124

Demand Condition.............................................................................................................................................124Related And Supported Industry...................................................................................................................125

Related Industry:............................................................................................................................................125Supporting Industry:.....................................................................................................................................126

Factor Conditions................................................................................................................................................128Geographical...................................................................................................................................................128Investment.......................................................................................................................................................129Raw Material:...................................................................................................................................................129Implication:......................................................................................................................................................129

Value Chain Of Industry...........................................................................................................130


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Value Chain Analysis:........................................................................................................................................130Value Chain...........................................................................................................................................................131

OT Analysis.....................................................................................................................................135Opportunity:.........................................................................................................................................................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................................................................................................................................141TRAI Regulation............................................................................................................................141

Bibliography...................................................................................................................................150


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List of FiguresFigure 1 Arther C. Clarck Model for DTH service.....................................................9Figure 2 A Worldwide Major DTH Service Provider MAP by Pro Brand International Inc.........................................................................................................................10Figure 3 Arthur C. Clark: futurist and author........................................................11Figure 4 An IPTV Connection Diagram of BSNL IPTV Service................................28Figure 5 DTH Industry Life Cycle (2003-2009)......................................................37Figure 6 A Worldwide Broadcasting Service Area of Major Players.......................41Figure 7 Revenue Structure, data taken from ACE Equity application Software. Which Show Major portion of Subscription............................................................50Figure 8 Cost Structure of the industry playes (approx.)......................................51Figure 9 Exchange Rate........................................................................................60Figure 10 GDP (Gross Domestic Product).............................................................61Figure 11 Inflation Rate........................................................................................62Figure 12 GDP based on PPP.................................................................................63Figure 13 Interest Rate.........................................................................................64Figure 14 Zee Network Satellite Service Area......................................................78Figure 15 SUN Network Service Area....................................................................79Figure 16 The Multi Dwelling Unit Service to Multiuser.........................................81Figure 17 BCG Matrix..........................................................................................104Figure 18 Industrial Life Cycle.............................................................................116Figure 19 ADL (Arthur D. Little) Matrix...............................................................117Figure 20 Michel Porter’s Diamond Model..........................................................119Figure 21 DTH Service Supply System................................................................131

List of TablesTable 1: Global Players..........................................................................................................................39Table 2 : Market Share...................................................................................................................94Table 3: Players Subscription Figures....................................................................................104Table 4: GE9 Cell Matrix Position.............................................................................................113Table 5: No. Of Players And Market Share...........................................................................123


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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.


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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

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 Have Indian Management Control With The Majority Representatives On The Board As Well As Chief Executive Of The Company Being Resident Indians.

S. V. Institute of Management, KADI 2008-10Figure 1 Arther C. Clarck Model for DTH service.

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Product History

Global Market

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


Figure 2 A Worldwide Major DTH Service Provider MAP by Pro Brand International Inc.

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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 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


Figure 3 Arthur C. Clark: futurist and author

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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.

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 Satellite-Delivered 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).


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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.

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


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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 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


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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, "....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.


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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 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.


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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 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


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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 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.


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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 (Ku-Band) Till A Comprehensive Broadcast Law Is Passed.

November 1997:Gujaral Government Falls.


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December 1998: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:


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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.

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.


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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.

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


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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 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


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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 Product1.1CABLE OPERATOR

Definition

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


http://en.wikipedia.org/wiki/Multi-family_residential

http://en.wikipedia.org/wiki/Cable_television

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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 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.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 Internet-Based 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 Customer-Premises-Equipment (CPE)

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


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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:

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-


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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, 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.


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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).

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 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


Figure 4 An IPTV Connection Diagram of BSNL IPTV Service

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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 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


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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.

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.


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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

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


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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 Bharati Infrastructure Can Also Be Shared With Mobile TV Service Providers For The Benefit Of Both.

Product Technology And Service Processing18

Television Receive-Only


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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.

Direct To Home Television


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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


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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 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


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LNB Passes The Amplified, Filtered Signal To The Satellite Receiver Inside The Viewer’s House.

The Receiver

Further Information: Set-Top Box (STB)

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

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


YearSubscribers (In Millions)

2003 0.002005 1.002007 4.002009 18.70

Figure 5 DTH Industry Life Cycle (2003-2009)

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Rs 5,000, But Make It Up By Asking Customers To Fork Out A Steep Rs. 700 A Month For The Basic Bouquet On DTH. But The Fall In Box Prices Have Helped In Offering The Services At An Attractive Price, Which Is Expected To Start From As Low As Rs. 100 For 38 Channels Going Up Depending On The Quality Of The Channels Shown.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 3Global 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 11Canada 5Japan 2Europe 23 France 4 Germany 1 U.K. 5 Italy 1 Spain 1 Rest Of Europe 11Asia-Pacific (Excluding Japan) 28Middle East 2Latin America 8Africa 1Total 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 UnitedBroadcasting 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

USA


Figure 6 A Worldwide Broadcasting Service Area of Major Players

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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 Either To Jointly Commercialize The


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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.


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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.


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The Challenges, However, Facing The African DTH Market Can Be Identified By A Lack Of Funds, Technological Discrepancies Or Government Intervention.

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


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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.

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.


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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 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 Pay-Per-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


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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.

Globally, Pay-Per-View Has Emerged From Being An Ancillary Segment Of Film Business To A Full-Fledged 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-Per-View Market. Korea Is


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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 Low-Cost 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.

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


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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 4Financial Analysis

Revenue Structure27:

Data Source: ACCEQUITY

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.

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


Revenue DriversPercentage (%)

Sales 1.29%Subscription Income 79.94%Processing Charges/Service Income 1.80%Other Operational Income 16.96%Total 100.00%

Figure 7 Revenue Structure, data taken from ACE Equity application Software. Which Show Major portion of Subscription

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Around 17%. After That Processing Charges/ Service Income And Then Sales Take Place From Recharges And All Other Things.

Cost Structure:

Cost DriversPercentage (%)

Raw Material Consumed 1.42%Power & Fuel Cost 0.24%Employee Cost 4.33%Production Expenses 57.03%General And Administration Expenses 4.90%Selling And Distribution Expenses 29.03%Miscellaneous Expenses 3.05% 100.00%

Data Source: ACCEQUITY

Implication:


Figure 8 Cost Structure of the industry playes (approx.)

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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.


1S. V. Institute of Management, KADI 2008-10

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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. Political2. Economic3. Social4. 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


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Man, Finally All The Political Parties Agreed Upon Allowing DTH Technology In India.


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Regulatory Role Of GovernmentInformation & 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


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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.

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:


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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 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.


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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 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


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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 StabilityThe 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

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

Neutral Favorable

Political Parties √


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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 StabilityExchange Rate:28

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.


YearExchange Rate (INR/US$))

2001 47.052002 48.502003 46.422004 44.872005 43.792006 44.982007 40.952008 42.532009 47.88

Figure 9 Exchange Rate

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The Overall Impact Of This Exchange Rate Will Mix, As The Rate 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

YearGDP Growth Rate (%)

2000-01 4.402001-02 5.802002-03 3.802003-04 8.502004-05 7.502005-06 9.402006-07 9.602007-08 9.002008-09 6.702009-10 (1st

Q.) 6.10

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.


Figure 10 GDP (Gross Domestic Product)

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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 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

Inflation Rate(Consumer Prices) (%)

2000 6.72001 5.42002 5.42003 5.42004 3.82005 4.22006 4.22007 5.32008 6.42009 8.3

Source: Indexmundi.Com


Figure 11 Inflation Rate

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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 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

YearGDP Based On PPP Valuation Of Country GDP ($)

2001 1618.052002 1719.192003 1876.54


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2004 2096.092005 2357.802006 2673.592007 3007.902008 3297.842009 3528.61

Source: Indexmundi.Com

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%.

Interest Rate:

YearInterest Rate (%)

2001 6.662002 5.882003 4.88


Figure 12 GDP based on PPP

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2004 4.542005 4.962006 5.712007 6.002008 5.922009 3.41

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.

Budget Impact On DTH Industry Union Budget 2008-09 Has Brought Some Positive Highlights For The DTH Industry.


Figure 13 Interest Rate

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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 √


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 OpinionsConsumer 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 ImageNow 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


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Different Company Provide Greater Satisfaction To Consumer. Dish TV Is Able To Convince Consumer. And To Say Quality Wise Tata Sky.

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: 24.9yearsFemale: 25.8years

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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.

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 ShiftImplication:

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.


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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.

The Effect Of Social Factors On DTH Service Industry

Factors Unfavorable

Neutral Favorable

Consumer Attitudes And Opinions

√

Brand, Company, Technology Image

√

Buying Access And Trends √Age Distribution And Lifestyle Trend

√

Family Form And Population Shift

√

Cultural Implications Of DTH √



1


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 TechnologyAs 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.


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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 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 TechnologyTRAI 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.


1

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.

Technology IncentivesThe 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 Multi-Channel 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 Signals4. The Set Top Box Decodes The Signal And Sends It To TV Set

Implication:


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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-Per-View) 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.

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.


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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"). 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.


1

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 : DownlinkFixed Satellite Service: 11.7 - 12.2ghzBroadcast 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.

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.


1

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. 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-


1

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


1

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.

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_Home4 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.org7 Wikipedia.com http://en.wikipedia.org/wiki/iptv8 Sag.org http://www.sag.org/content/new-media-glossary9 http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm10 www.mumbai.mtnl.net.in/iptv/index.html11 http://mumbai.mtnl.net.in/iptv/index.html12 http://www.calcutta.bsnl.co.in/iptv/index.php13 http://www.rcom.co.in/iptv/14 www.mumbaispace.com15 http://www.indiabroadband.net/direct-home-satellite-cable-iptv/15016-airtel-iptv.html16 http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm17 http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm18 http://en.wikipedia.org/wiki/Satellite_television edited...19 TV VEOPAR JOURNAL/ April 2009/ Page No:4020 http://www.apexinfotech.co.in/technology.html21 http://voicendata.ciol.com/content/service_provider/106050106.asp22 http://www.strategyr.com/DTH_Satellite_TV_Services_Market_Report.aspx23 http://www.researchandmarkets.com/reportinfo.asp?report_id=600090&t=t&cat_id=24 http://www.indiantelevision.com/special/sperep1.htm, Posted on 5 June25 http://www.indiantelevision.com/dth/dth12.htm26 http://www.tvnext.in/news/155/ARTICLE/1760/2008-12-01.html December 1st, 200827 Source: ACCEQUITY Financial and Statistical database software.28 www.tradingeconomics.com29 Macroeconomic and Monetary Developments Second Quarter Review 2009-1030 www.indexmundi.com31 www.cia.gov/library/publications/the-world-factbook/geos/in.html


http://en.wikipedia.org/wiki/Direct_To_Home

http://en.wikipedia.org/wiki/Direct_To_Home

http://www.dreamsatellite.com/

1

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-BANDAbs-1 Eurobird - 2 Eutelsat - W5 Express-Am2 Insat-3b,4a Insat4bIntelsat 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.

32 Antenna: An electrical device that sends or receives radio or television signals33 DTH: Direct from government: The Indian Express Mrs. Ila Patnaik Posted: Dec 28, 200534 http://pib.nic.in/focus/foyr2001/fomar2001/dth_glines.pdf35 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


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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 Zee Punjabi Are Located


Figure 14 Zee Network Satellite Service Area.

1

In London, 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 (Sun Network) Has Also

S. V. Institute of Management, KADI 2008-10Figure 15 SUN Network Service Area

1

Technology Initiative For Broadcasting By Their Satellite Service 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


1

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.

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

38 http://www.indiantelevision.com/satreckon/satelliteindia/satellitesoverindia.htm39 http://www.zeetelevision.com/html/AboutZee.asp?Content=1440 Sun Direct official website www.sundirect.com41 http://www.lyngsat-maps.com/maps/in4b_ecc.html42 http://www.dishtv.in/mdu.aspx


Figure 16 The Multi Dwelling Unit Service to Multiuser

1

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 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 √


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Productivity Improvements √



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.


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So, The Threat From New Entry Is Moderate To Low.

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.

43 Project report on “Sales and Distribution Effectiveness: A Comparative Study of Tata Sky & Airtel DTH.”44 http://www.dishtv.in/mdu.aspx


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Threats Of New Entrants

The Effect Of All Above FactorsFactors Low Moderat

e To Low Moderate

Moderate To High

High

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)

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 ThreatIn 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 SubstitutesThe Effect Of All Above Factors

Factors Low Moderate To Low

Moderate

Moderate To High

High

Determinants Of Substitution Threat (Low)

Costs Of Switching To Substitutes (Low)

Availability Of Substitutes (Moderate To High)

Summary:


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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.

The Overall Threat Of Substitutes Is Moderate To High.

Bargaining Power Of Suppliers

DTH Industry Relies On Three Major Suppliers:1. Customer Premise Equipment (CPE)2. Comprising Of The Satellite Dish3. 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:

45 http://sivasundaram.com/wp-content/uploads/2007/08/dth-industry-in-india.pdf


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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 $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.46 DTH cos call for licence fee cut, 2 Jan 2009, Meenakshi Verma Ambwani, Economics Times


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So, Bargaining Power Of Supplier Is Moderate To Low.

Bargaining Power Of SuppliersThe Effect Of All Above Factors

Factors Low Moderate To Low

Moderate

Moderate To High

High

Backward Integration (Low)

Supplier Switching Cost (Low)

Forward Integration (Low)

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


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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.

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.


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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 FactorsFactors Low Moderat

e To Low Moderate Moderat

e To High

High

Buyer Switching Costs (Low)

Brands Awareness (High)

Availability Of Substitute Products (High)

PurchaseFrequency (High)

Innovative Services (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. Company Name Brand Name Launch Date:1 Doordarshan (Prasar Bharti) DD Direct+ 20012 Zee Entertainment Enterprise Dish Tv Oct’20033 Tata Group And Star Group Tata Sky Aug’064 Sumangali Publications Private

LimitedSun Direct Dec’07

5 Bharti Telemedia Ltd. Airtel Oct’086 Reliance BIG TV Limited Bigtv Aug’087 Videocon Ltd. Videocon 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,


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1985.Sun Tv Also Provide Video Quality 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 31.62Tata Sky 4.50 24.04Sun Direct 4.30 22.98Airtel 2.00 10.68

47 business Standard News Paper Monday 9th November 2009 page no.2


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Big TV 2.00 10.68Video Con NA NADD Direct NA NA

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.


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.


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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.

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 FactorsFactors Low Moderat

e To Low

Moderate Moderate To High

High

Competition Between Companies (High)

Industry Growth (High)

Untapped Market (High)

Promotional 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 6Driving 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.


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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.

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.


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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.

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.


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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.

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.


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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.

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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Industry

Growth

Rate

R& A

Chapter-7Portfolio Models

BCG MatrixTable 3: Players Subscription Figures

Industry Growth Rate = 30%48

Relative Market Share High

10%

Low 10

1 0.1


Company's Name

Subscribers (In Millions)

Market Share

Relative Market Share

Dish TV 5.92 31.62% 1.32Tata Sky 4.50 24.04% 0.76Sun Direct 4.30 22.97% 0.73Airtel Digital TV 2.00 10.68% 0.34Reliance Big TV 2.00 10.68% 0.34Videocon D2h NA NA -

Total 18.72100.00%

Figure 17 BCG Matrix D T S

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(Here, D= Dish TV; T= Tata Sky; S= Sun Direct; R=Reliance Big TV; A= Airtel Digital TV)

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"


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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.

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


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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. 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.


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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. 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 TVBig 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.


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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.

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.


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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:

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:


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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.

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

Weight Dish TV Tata Sky

Sun Direct

Airtel Digital Big TV

Videocon D2h

48 Business Standards News Paper, 9-11-2009


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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 0.50Financial 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 0.80Brand 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 0.90Distribution 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 0.66Advertising 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 0.60Ability 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 8.057.58

7.26

6.54

6.60

4.11

Industry Attractiveness

DTH Service Industry

Industry Attractiveness

Weight

Rating Score

Current Market Size 0.20 8.00 1.60Regulatory Environment 0.15 7.00 1.05No. Of Competitors 0.12 6.50 0.78Barriers To Entry 0.10 7.00 0.70Market Growth Rate 0.13 7.50 0.98Industry Profitability 0.15 8.00 1.20Technology Change 0.15 7.50 1.13 1.00 7.43


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R

Business Strength

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


D T VS A

I ndus

t ry

At t

rac

t I vene

sss

10

6.6

7

3.33

0

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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.

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


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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.

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.


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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) MatrixBusiness Strength Weight Dish TV Tata Sky Sun Direct

Airtel Digital Big TV

Videocon D2h

Rating ScoreRatin

gScor

eRatin

gScor

eRatin

gScor

eRatin

gScor

eRatin

gScor

eMarket 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 0.50Financial 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 0.80Brand 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 0.90Distribution 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 0.66Advertising 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 0.60Ability 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

Competitive Position

Industry Maturity


Year Subscribers (In Millions)2003 0.002005 1.002007 4.002009 18.70

1

10

7.5

5

2.5

0

R


Industry MaturityEmbryonic Growth Mature Aging

Competitive Position

Dominant

Strong

Favorable

Tenable

Figure 19 ADL (Arthur D. Little) Matrix

D

T

S

A

V

Figure 18 Industrial Life Cycle

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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.


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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

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

49 http://www.valuebasedmanagement.com


Figure 20 Michel Porter’s Diamond Model

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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.

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:

5. 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;

6. 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.

7. 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.

8. 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.


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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 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.


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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.

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.

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.


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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: Subscriber (Million) Market Share In (%)Dish TV 5.92 31.62Tata Sky 4.50 24.04Sun Direct 4.30 22.98Airtel Digital 2.00 10.68Big TV 2.00 10.68Videocon D2h NA NADD Direct 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.


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

50 Business Standard News Paper Monday 9th November 2009


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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 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


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ACTIVE With Help This Consumer Make Bank Transaction With ICICI Bank. Tata Sky Also Provides Active Service On Wheel And Mobile.

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 IndustryRelated 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.


1

2. IPTV:

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 IndustryMedia 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.


1

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

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

51 http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/media-entertainment.htm52 http://www.naukrihub.com/india/media/overview/categories/television/


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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.

Factor Conditions

There Are Some Factors Which Are Very Important For Any Industry. For, DTH Service Industry It Is Given As Below:

GeographicalTo 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


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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 Resources1. 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.

InvestmentIn 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.


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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 Subscription-Based 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.

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 Transfer Signals To Subscribers Set-Top-Box


Figure 21 DTH Service Supply System

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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.


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Build An Appropriate Content OfferThis 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 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.

InstallationGenerally 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.


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All Of These Will Lead To Improve The Performance. So, All Of The Players Have To Develop This.

Human Resource Management:-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 ServicesCable 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


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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: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


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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. This Can Be Justified Because India Has A Varied Geography And Population Distribution. So Cable Television Is Not Available Everywhere, Particularly In


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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


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DTH Operators Cannot Alter The Subscription Package During The First 6 Months, Or Till Validity Expiry, Of A Subscriber's Enrollment, Etc.

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


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Conscious About Their Technological Development And Market Expansion By The Innovation In Technology As Well As With The Innovative Products. The 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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AnnexureTRAI 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, 2009No. 3 Of 2009

TELECOM REGULATORY AUTHORITY OF INDIANOTIFICATION

New Delhi, The 12th March, 2009

F. No. 16-2/ 2009 - B&CS.---- In Exercise Of The Powers Conferred By Section 36, Read With Sub-Clauses (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


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Operator.(2) The Direct To Home Subscribers Who Have Acquired The Direct To Home Customer Premises 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 HomeOperator; 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 SubscriptionCharges 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.


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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 ModifiedSubscription 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 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


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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 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 HasDecided 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 AsUnder:-


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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-La-Carte 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 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.


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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 PackageThe 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 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.


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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 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.


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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 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


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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.

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


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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, AsThe Case May Be) Has Expired. Accordingly, A Prior Notice Of Fifteen Days Has Been Mandated For Change In Composition Of A Subscription Package.


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Bibliography

Reference BooksJr., A. A. (Special Indian Edition). Crafting And Executing Strategy. Tata Mcgraw Hill Pub. Co. Ltd.

Jr., O. C. (5th Edition). Marketing Stretegy. Tata Mcgraw Hill Pub. Co. Ltd.

Philp, K. (13th Edition). Marketing Management. PEARSON.

News PapersEconomic TimesBusiness StandardFinancial ExpressTimres Of India

Search EngineGoogleYahooMSN

MagazinesTV Veopar JournalFortune IndiaBusiness WorldCapital MarketMarketing Mastermind4p’sPitchBrand Reporter

Web SitesWww.Mib.Nic.In Www.Dishtv.InWww.Tatasky.ComWww.Sundirect.InWww.Airtel.In/DigitaltvWww.Bigtv.Co.InWww.Videocond2h.ComWww.Indiabroadband.NetWww.Indiatelevision.Com Www.Indiainbusiness.Nic.InWww.Strategyr.Com


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