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Strategic Impact of IT in DTH industry

Group 13

Abhay Kesarwani (401) Arjun A V (413) Ayush Garg (417) ugga! (4"4)

#aurabh Gupta (4$1)


io nth e

Content Pg.

1. History o% &n'ian te!e(ision an' )roa'*asting &n'ustry 3 a. +he ,ar-et .!ayers 4 ". /0isting &+ in%rastru*ture at +ata #-y $

3. Va!ue 1hain Ana!ysis


4. &n'ustry ana!ysis using .orter2s 3i(e 3or*es


a. +hreat o% #ubstitutes

b. &n'ustry 4i(a!ry
10 *. /ntry )arriers 10 '. )argaining power o% )uyers 11 e. )argaining power o% #upp!iers 11

5. &'enti%i*ation o% pri5e obje*ti(es an' 1#3s to a*hie(e those


a. Vision b. 6bje*ti(es c. 1#32s

13 13 14 "

6. 1#3 +ree 7. #trategi* 7se o% &+ 8. 4e%eren*es

17 18 "0

History of Indian Television & Broadcasting Industry

&n'ian +e!e(ision was !aun*he' in 19$99 with the intro'u*tion o% the nationa! te!e(ision networ- oor'arshan. 3ro5 there on the te!e(ision in'ustry grew without !oo-ing ba*-. A%ter !ibera!i:ation in 19919 the broa'*asting in'ustry saw the in%!ow o% a !ot o% %oreign *hanne!s an' a!so (arious 'o5esti* sate!!ite *hanne!s *roppe' up in &n'ia. ;ith so 5any *hanne!s an' pri(ate p!ayers entering the business9 there was a new set o% 5e'iators that *a5e into being < these were the =!o*a! *ab!e operators>. +hey were responsib!e %or pro(i'ing the networ- ser(i*es to the *!ients an' generation o% re(enues %or the *hanne!s. )ut this *o5p!e0 syste5 ha' its %!aws. +he *ab!e operators reporte' a !ower nu5ber o% *onne*tions9 in or'er to a**u5u!ate pro%its. 6n the other han'9 the broa'*asters 'e5an'e' a higher rate. +his !e' to an a5en'5ent in the 1ab!e +V networ-s (4egu!ations) A*t in "00"9 an' in "0039 a new syste5 *a5e into being9 *a!!e' the =1on'itiona! A**ess #yste5 (1A#)> &n the 5eanti5e9 in "0019 the ban on the use o% the Ku ban' %or !i%te' an' +4A& issue' gui'e!ines %or operating it in the *ountry. +H usage was

+H i5pro(ise' on the ?ua!ity o% ser(i*e being o%%ere' in the broa'*asting in'ustry. A!though9 there were a %ew te*hni*a! g!it*hes9 su*h as %a'ing o% signa! 'ue to rain9 these were re'u*e' by pro(i'ing a better antenna with a water proo% *oating an' in*reasing the trans5ission power. +e!e(ision an' entertain5ent in'ustry is about =e0perien*e>. An' this is what is the 'i%%erentiating %a*tor that +H *an pro(i'e to its *usto5ers an' hen*e has a huge s*ope o% rep!a*ing its *o5petitors !i-e 1ab!e +V @ &.+V. As rea*h o% +H is in*reasing9 so is its share in broa'*asting in'ustry. Market s are of players in t e Indian television industry



1ab!e +errestria! +H

T e Market Players
+he &n'ian +H in'ustry has three 5ajor p!ayers at presentC<

1. < ire*tDC 6wne' by .rasar )harti ". ish +VC 6wne' by the Eee +V Group 3. +ata #-yC A joint (enture a5ong +ata an' 4upert ,ur'o*h2s #-y +V

&n these 5ajor p!ayers9 < ire*tD is a *!ear winner in the nu5ber o% peop!e it ser(es with its 33 3+A *hanne!s an' 1" A!! &n'ia 4a'io *hanne!s9 %o!!owe' by ish +V9 whi*h is the o!'est pri(ate +H ser(i*e9 starte' in "004.


< ire*tD $3B 3"B ish +V +ata #-y

DTH Market S are. Source! T"M #Television "udience Measurement$ Peoplemeter Survey

6ther up*o5ing (entures in 1. ". 3. 4.

+H 5ar-et in*!u'eC<

#un ire*tC )y #un Fetwor4e!ian*e )!ue ,agi*C )y 4e!ian*e A AG )harti +e!e5e'ia Vi'eo*on &n'ustries A

%&isting IT infrastructure at Tata Sky .

Interactive programming! +he F # Vi'eoGuar' *on'itiona! a**ess so!ution pro(i'es superior broa'*ast se*urity an' enab!es +ata #-y to o%%er 5u!tip!e progra55ing an' pri*ing pa*-ages. F #Gs ,e'iaHighway 5i''!eware an' Va!ue +V intera*ti(e in%rastru*ture wi!! a!!ow +ata #-y to o%%er intera*ti(e ser(i*es to its *usto5ers. +he p!at%or5 wi!! o%%er it2s the *usto5ers a (ariety o% progra55ing *hoi*es with intera*ti(e %eatures a!ong with superior pi*ture an' soun' ?ua!ity. C'M! #iebe!2s 14, so%tware has been se!e*te' to support *a!! *entre an' %ie!' operations9 *usto5er or'er 5anage5ent9 pro'u*t *on%iguration an' 'ea!er 5anage5ent. Billing! 1o5(erse2s Kenan 3H bi!!ing so%tware is use' %or bi!!ing %or resi'entia!9 institutiona! an' *o55er*ia! *usto5ers. +he so%tware has been *usto5i:e' spe*ia!!y to support pre<pai' bi!!ing *apabi!ity9 whi*h is a %irst in the in'ustry9 to a!!ow *usto5ers to ha(e a 5ore *on(enient an' %!e0ib!e pay5ent options. Kenan bi!!ing so%tware o%%ers the %o!!owing %un*tiona!itiesC

eposit ,anage5ent 4e(enue Assuran*e )i!! 3or5atter .roo% o% e!i(ery .ay5ent Gateway 4ea! ti5e ba!an*e *a!*u!ator .a*-age 1on%iguration +oo!

%'P! #A.2s /4. app!i*ation suite9 has been se!e*te' to support the *o5pany2s 5ateria!s 5anage5ent9 sa!es an' 'istribution9 %inan*e an' *ontro! an' hu5an resour*es re?uire5ents. Servers! #un ,i*rosyste5s pro(i'es the te*hno!ogy in%rastru*ture to he!p the 7

*o5pany run its &+ app!i*ations. +he ser(ers ensure 5a0i5u5 up<ti5e9 %au!t re*o(ery an' !oa' 5anage5ent. #un a!so pro(i'es +ata #-y with insta!!ation9 engineering e0pertise an' support.

Digicomp! +ho5son an' Hu5a0 'e!i(er 'igi*o5ps *usto5i:e' %or the &n'ian 5ar-et. +he te*hno!ogy a!!ows 'e!i(ery o% 5u!tip!e progra55ing9 pri*ing pa*-ages an' intera*ti(e ser(i*es to the *usto5ers. Systems Integration! +1# is a syste5s integration partner %or +ata #-y. &t supports &+ operations in the areas o% bi!!ing9 /4. an' other *usto5er *are an' e5p!oyee re!ate' interna! app!i*ations. +1# an' +ata #-y 'e*i'e' on a ser(i*e<oriente' ar*hite*ture %or the *o5pany2s &+ nee's an' &), was se!e*te' %or *reating the #6A p!at%or5. &),Gs /nterprise #er(i*e )us (/#)) he!pe' +ata #-y in 'esigning a #6A to *onne*t the 'i%%erent syste5s whi*h a!!owe' 5u!tip!e app!i*ations to inter*onne*t an' pro*ess in%or5ation %aster thus sa(ing ti5e an' 5oney. +he #6A %ra5ewor- pro(i'e' a 5o'e! to *onne*t an' *ontro! the un'er!ying &+ syste5s. Service Support! +ata )usiness #upport #er(i*es (+)##)9 pre(ious!y -nown as #er;i:#o!9 pro(i'es +ata #-y with three *a!! *enters o%%ering roun'<the<*!o*support in 11 'i%%erent !anguages. (ogging and )roadcast monitoring! ,e'ipro0yGs /nig5a (A broa'*ast so!ution enab!es a**urate 5onitoring an' !ogging ser(i*e %or +ata #-y2s +H ser(i*es. &t a!so a!!ows a !arge nu5ber o% users to si5u!taneous!y a**ess 5u!tip!e *hanne!s o% !i(e an' ar*hi(e' *ontent on !o*a! networ-s an' the &nternet.

*alue C ain "nalysis of T"T" Sky .

3ro5 the re*ent a'(ertise5ent *a5paign o% +A+A #-y it *an be in%erre' that +A+A #-y is trying to 'i%%erentiate in ter5s o% ?ua!ity an' *ontent e0*!usi(ity with Aa5ir -han as it2s bran' a5bassa'or. &n the %o!!owing 'is*ussion we wou!' try to e!aborate how +A+A #-y a*hie(es 'i%%erentiation an' how &+ app!i*ations he!p with that. ;e wi!! use the (a!ue *hain ana!ysis %ra5ewor-.

*alue C ain for T"T" Sky

+A+A #-y *an a'' (a!ue to its pro'u*t by a''ing (a!ue at e(ery stage o% the (a!ue *hain whi*h *an he!p it by *reating a superior high ?ua!ity pro'u*t or by 9

'i%%erentiating in *ost. 3ro5 the supp!ies re?uire' %or +A+A #-y we *an see that there is not 5u*h (a!ue that +A+A #-y *an a'' at the inboun' !ogisti*s as it has to 'epen' on &#46 %or !easing out its %a*i!ities to re*ei(e the signa! as we!! as trans5it it to its *usto5ers. At the operations stage +A+A #-y *an a'' (a!ue through better *o'ing an' s5art use o% intera*ti(e 5e'ia !i-e ga5es an' stu'y too!s %or -i's. A!so at this stage it *an use 'i%%erent *o'ing %or 'i%%erent *usto5ers %or 'i%%erentiating its o%%erings an' thus *reating 5ore (a!ue. At the outboun' !ogisti*s stage +A+A s-y o%%ers e?uip5ent to its *usto5ers ( ish antenna9 #et top bo0 an' a**ess *ar') an' the *usto5er re*ei(es the signa! %ro5 &#462s sate!!ite. At this stage +A+A #-y *an ensure high ?ua!ity e?uip5ent as it has high bargaining power with the supp!iers o% the e?uip5ent. +A+A #-y has *reate' a bran' with higher re*a!! by using *reati(e a'(ertising an' using superstars !i-e Aa5ir Khan an' Hrithi- 4oshan an' ban-ing on the bran' i5age o% the na5e +A+A. +his has !e' to a high per*ei(e' (a!ue o% the bran' +A+A #-y in the 5ar-et. At the a%ter sa!es ser(i*e stage +A+A #-y *an ensure high 'i%%erentiation %ro5 its *o5petitors through better ser(i*e.

Ho+ IT applications

elp at various stages

In)ou nd (ogist ics

,peration s

,ut)ound (ogistics

Marketing & Sales


1. F # Vi'eo Guar' ". F #Gs ,e'ia Highway ,i''!eware 3. +ho5son an' Hu5a0 'igi*o5ps

1. 14,

1. 14,

1. 14, ". 1o5(erse2s Kenan 3H bi!!ing 3. +ata )usiness #upport #er(i*es

". ,e'ipro0yGs /nig5a (A broa'*ast so!ution


IT applications at various stages of t e value c ain

+he abo(e !iste' &+ app!i*ations ha(e he!pe' +A+A #-y a*hie(e 'i%%erentiation by he!ping pro(i'e superior *ontent ()etter *o'ing an' better pa*-aging o% ser(i*es) by F # (i'eo guar'9 F # 5e'ia highway 5i''!eware an' +ho5son an' Hu5a0 'igi*o5ps. ,e'ipro0y2s /ng5a (A broa'*ast so!ution has enab!e' +A+A #-y to pro(i'e superior pi*ture ?ua!ity a!so +)## (+A+A business support ser(i*es) ha(e ensure' superior ser(i*e. A!so there are 5any &+ app!i*ations that support the (a!ue *hain su*h as /4.. +1# a!so pro(i'es syste5s integration %or +ata #-y. &t supports &+ operations in the areas o% bi!!ing9 /4. an' other *usto5er *are an' e5p!oyee re!ate' interna! app!i*ations. A!so +A+A #-y an' +1# ha(e opte' %or #6A ar*hite*ture whi*h has enab!e' the5 to share their in%or5ation %aster an' easi!y thus spee'ing the supp!y *hain.

Industry analysis using Porter-s .ive .orces .

T reat of Su)stitutes
+he +H te*hno!ogy is re!ati(e!y new in the &n'ian +V 5ar-et whi*h has been 'o5inate' by 1ab!e +V. +he nu5ber o% 1ab!e +V househo!'s in &n'ia a**ount %or 71 5i!!ion o% a tota! o% 130 5i!!ion +V househo!'s in &n'ia. +he +H operators are positioning the5se!(es as an a!ternati(e to 1ab!e +V. ;hether +H wou!' be ab!e to substitute 1ab!e *an be ana!y:e' by !oo-ing atC

1. )uyer2s .ropensity to substituteC +he buyer has (ery !ow propensity to

substitute to +H %ro5 1ab!e +V as tria!s are not possib!e in *ase o% +V subs*riptions an' 'e*ision to swit*h *annot be re(erse' easi!y. )ut with 1A# being 5an'ate' in so5e parts o% the *ountry the *onsu5er wou!' be 5ore wi!!ing to swit*h to +H p!at%or5.

2. .ri*e per%or5an*eC +he 5onth!y subs*ription rates o% 1ab!e +V (ary %ro5 100
to "$0. +he a(erage 5onth!y subs*ription is about 4s. 1"$ I. +he a(erage 5onth!y subs*ription %or +H *an be assu5e' to be 4s. "00. .er%or5an*e *an be 5easure' in ter5s o% %o!!owing para5etersC a) Fu5ber o% 1hanne!sC 1urrent!y with 5ajority o% &n'ia (iewing 1ab!e +V un'er un*on'itiona! a**ess the nu5ber o% *hanne!s a(ai!ab!e to a (iewer is 5ore in *ase o% 1ab!e +V. b) Jua!ity o% #er(i*eC +he ?ua!ity o% ser(i*e is better in *ase o% +H operators as they o%%er superior (iewing e0perien*e (,./G<4 *o5pression whi*h 11

o%%ers V pi*ture ?ua!ity) an' better *usto5er support with 'e'i*ate' ser(i*e *enters an' *usto5er he!p!ines. ;e assu5e that Fu5ber o% *hanne!s is a 5ore *riti*a! para5eter %or &n'ian (iewers so the .ri*e<.er%or5an*e proposition is better in *ase o% 1ab!e +V.

3. #wit*hing 1ostsC +he swit*hing *osts are signi%i*ant as the *ost o% en'<user
e?uip5ent (#et<top bo09 a**ess *ar'9 an' 'ish) is trans%erre' to the user. 1urrent!y the up%ront *osts are aroun' 4s. 3000<4000. +he signi%i*ant swit*hing *ost is one the biggest %a*tor ha5pering the growth o% +H in &n'ia. &nno(ati(e s*he5es are being o%%ere' by +H operators to *ounter the high up%ront *osts. 4. .ro'u*t 'i%%erentiationC pro'u*ts in ter5s o%C +H operators are trying to 'i%%erentiate their

a) 1ontent i%%erentiationC /0*!usi(e progra55ing through *o!!aboration with 5ajor broa'*asters9 ,o(ies on e5an'. b) Va!ue A''e' #er(i*esC /0*!usi(e!y 'esigne' intera*ti(e ga5es9 tutoria!s9 ?ui:9 astro!ogy.

c) 1usto5er #er(i*eC

+H operators o%%er *usto5er 'e'i*ate' ser(i*e *enters an' *usto5er he!p !ines.

support through

+hese 'i%%erentiating %a*tors are not strong enough %or *usto5ers to swit*h to +H %ro5 1ab!e +V. +hus ti!! *usto5er2s see so5e 5ajor 'i%%erentiating %a*tors they wou!' be re!u*tant to swit*h. 3ro5 the abo(e points we see that 1ab!e +V is sti!! a 5ajor %or*e in &n'ian +V househo!'s an' it wou!' be 'i%%i*u!t to penetrate in this 5ar-et un!ess +H operators 'i%%erentiate their pro'u*ts. +hus9 threat o% substitutes is VERY HIGH.

Industry 'ivalry
+H !i*enses ha(e been o%%ere' to 7 p!ayersC 1. +ata #-y ". 3. ish +V ire*t igita! +V

4. Airte! $. #un +V

A. 4e!ian*e )!ue<,agi* (A AG) 1"


Vi'eo*on &n'ustries

+ata #-y an' ish +V are the 5ajor p!ayers *urrent!y with ish +V ha(ing 5ore than 3.4 5 subs*ribers an' +ata #-y about ".7 5i!!ion subs*ribers. #o5e o% the p!ayers !ine' up to enter this 5ar-et areC ;ith the entry o% e0pe*te' p!ayers the in'ustry is going to be %ier*e!y *o5petiti(e be*ause o% the %o!!owing %a*torsC a) #i:eC +he si:e o% the p!ayers is (ery !arge with p!ayers be!onging to biggest business houses o% &n'ia. .!ayers with 'eep po*-ets wou!' 5ean %ier*e *o5petition to gain 5ar-et share. b) /*ono5ies o% #*a!eC )y gaining a *onsi'erab!e 5ar-et share9 the operators wou!' be ab!e to e0er*ise a si:eab!e a5ount o% power on supp!iers an' wou!' be ab!e to re'u*e their *osts signi%i*ant!y. A!so they wou!' be ab!e to e0er*ise power on a'(ertisers an' broa'*asters on the basis o% 5ar-et<share.

c) Growth o% &n'ustryC +he in'ustry is e0pe*te' to grow at a (ery %ast pa*e with
nu5ber o% subs*ribers growing to 40 5i!!ion by "01$ %ro5 about 8 5i!!ion *urrent!y. ') /0it )arriersC /ntry into +H arena re?uires huge in(est5ent in !easing o% transpon'ers an' !i*ense %ees. Huge e0pen'iture is a!so in*urre' in 5aintaining o% *usto5er ser(i*e *enters.

%ntry Barriers
;ith the entry o% the e0pe*te' p!ayers9 the +H spa*e wou!' be*o5e (ery *row'e' with 7 5ajor p!ayers. Fon<a(ai!abi!ity o% transpon'ers an' broa'*aster power wou!' a*t as another 5ajor entry barrier. +hese %a*tors wou!' 5a-e the entry o% new p!ayers a!5ost i5possib!e. +hus9 the entry barriers are VERY HIGH.

Bargaining Po+er of )uyers

+ra'itiona!!y buyers ha' just one option o% 1ab!e +V but with the !aun*h o% +H an' &.+V9 buyers ha(e !arge nu5ber o% options a(ai!ab!e to the5. +he subs*ribers are genera!!y re!u*tant to swit*h to these new te*hno!ogies be*ause o% the %o!!owing reasonsC 1) 7p%ront 1osts o% /?uip5ent is to be borne by the user 13

") Fo signi%i*ant bene%its in swit*hing to these p!at%or5s in ter5s o% *osts or ser(i*es 3) Ka*- o% awareness about these te*hno!ogies +H operators nee' to 'i%%erentiate their o%%erings in or'er to 5a-e *usto5ers swit*h %ro5 1ab!e +V to +H9 unti! then the )argaining power o% )uyers with respe*t to +H operators is HIGH.

Bargaining Po+er of Suppliers

+H operators re?uire 3 -in's o% supp!iesC 1) /?uip5entC +his in*!u'es 'ish9 set<top bo0 an' a**ess *ar' ") +ranspon'ersC 4e?uires Ku )an' transpon'ers in the sate!!ites 3) 1ontentC )roa'*aster *ontent an' (a!ue a'' ser(i*es !i-e ga5es9 5o(ie on 'e5an' et*. /?uip5entC Genera!!y re%erre' to as 1./ (*usto5er pre5ise e?uip5ent)9 the e?uip5ent is pro*ure' %ro5 5anu%a*turers in Korea an' Lapan. ;ith the in*reasing (o!u5es o% +H subs*ribers the bargaining power o% e?uip5ent 5anu%a*turers is LOW. +ranspon'ersC +he transpon'ers are !ease' %ro5 spa*e organi:ations. 1urrent!y &#46 !eases transpon'ers to +H operators through its *o55er*ia! wing *a!!e' Astrix. +he a(ai!abi!ity o% transpon'ers is going to be a 5ajor issue with the in*rease in nu5ber o% p!ayers an' in*rease in *ontent. /a*h transpon'er *an support about 1$ *hanne!s. +H operators wou!' ha(e to approa*h e0terna! spa*e agen*ies %or !easing o% transpon'ers. +his 5a-es the bargaining power o% supp!iers VERY HIGH. 1ontentC 1urrent!y there on!y $ 5i!!ion +H subs*ribers out o% a tota! o% 73 5i!!ion .ay +V subs*ribers9 so the 5ar-et power o% +H operators is 5inis*u!e as *o5pare' to the )roa'*asters. +he pri*ing an' *ontent is 'e*i'e' by the )roa'*aster so the bargaining power o% broa'*asters is HIGH. )ut +ata #-y is *o!!aboration between +A+A group an' #+A4 +V networ-9 so it *an !e(erage the e0*!usi(e #+A4 +V *ontent to e0er*ise greater 5ar-et power. +he *ontent in ter5s o% (a!ue a''e' ser(i*es is outsour*e' an' the !arge nu5ber o% supp!iers a(ai!ab!e 5a-es the bargaining power o% supp!iers is VERY LOW. 6n the who!e9 we *an say that the bargaining power o% supp!iers is ?uite HIGH.


.ig! Porter-s five forces Model for DTH industry

Identification of prime o)/ectives and CS.s to ac ieve t em ..

+ata #-y ai5s to re(o!utioni:e &n'ian entertain5ent by o%%ering superior ?ua!ity pi*ture an' 1 ?ua!ity soun'. +ata #-y en(isionsC V 1$

=1onne*ting e(ery te!e(ision ho5e e5powering e(ery te!e(ision (iewer 4e(o!utioni:ing ho5e entertain5ent>

a) 'eac ing out to ma&imum num)er of customers! +ata #-y has set a target subs*riber base o% 8 5i!!ion by "01" whi*h 5eans 8 %o!' growth in ne0t 4 years. espite the e*ono5i* s!ow'own in the g!oba! in'ustry9 the Asia pa*i%i* 5ar-et see5s to be in better hea!th.

b) ,ffer superior 0uality of ca)le service to customer! DTH in'ustry has its *o5petitors in *ab!e in'ustry9 oor'arshan an' &.+V. &t *an on!y presu5e to su**ee' in the te!e(ision ser(i*e pro(i'er in'ustry i% it pro(i'es better ?ua!ity o% ser(i*es. igiti:ation o% ser(i*es he!ps in pro(i'ing better ?ua!ity o% pi*ture an' soun'. +hus hea(y in(est5ent is re?uire' in a*?uiring state o% the art te*hno!ogy an' to support the in%rastru*ture re?uire' to pro(i'e 'igita! trans5ission. igita! trans5ission is the -ey to pro(i'ing better pi*ture ?ua!ity an' soun' ?ua!ity an' wou!' be a *riti*a! su**ess %a*tor in 'eter5ining su**ess%u! run o% +ata #-y in +H in'ustry.

*) %mpo+er Indian vie+er +it c oice1 control and convenience! 3or !ong &n'ian +V in'ustry has been 'o5inate' by oor'arshan. ;ith the onset o% +H p!ayers househo!'s wi!! be pro(i'e' with 5ore *hoi*e an' *ontro!. 1on(enien*e o% !arger nu5ber o% *hanne!s to *hoose an' pay %ro59 re*or'ing o% +V seria!s an' shows9 %a*i!ity o% or'ering 5o(ies an' p!aying a*ti(e ga5es o%%ers (arious *hoi*es %or the *onsu5er who was a (i*ti5 to the unstru*ture' nature o% the in'ustry.

CS. %or %o!!owing obje*ti(es 19 " @ 3C

2. 'eac ing out to ma&imum num)er of customers

a) Country +ide infrastructure and tec nology! +o rea*h e(ery noo- an' *orner o% the *ountry to *apture the une0p!ore' 5ar-et that has been strongho!' o% oor'arshan so %ar. oor'arshan is wor!'2s !argest +errestria! broa'*aster with o(er 1400 trans5itters an' *o(ering 88B o% &n'ia 1A

geographi*a! area. +hey o%%er igita! ser(i*e in *o!!aboration with ))1 resour*es. +his wi'e rea*h an' !ow *ost approa*h has he!pe' it *apture !arge *hun- o% the in'ustry. A'opting the sa5e approa*h by sharing resour*es *an he!p +ata #-y *apture this 5ar-et be*ause o% its better pro'u*t an' ser(i*es.

b) Due importance to price sensitive customers! &n &n'ia a !arge portion o% the popu!ation sti!! *o5es un'er 5i''!e a(erage in*o5e group. +he pro'u*t o%%erings ha(e to be so 'e(e!ope' that they are a%%or'ab!e by the !arge portion o% the popu!ation. +his is possib!e through o%%ering (arious pa*-ages %or 'i%%erent (iewer seg5ent with seg5entation being 'one on the basis o% in*o5e as we!! as interest o% the *usto5er group. #o %ar ish +V has the !ea' in pro(i'ing ser(i*es at !ower *osts be*ause o% the %irst 5o(er a'(antage but with ti5e these *osts sha!! re'u*e.

*) 3se of media for promotion! 1o!!aboration between 5e'ia p!ayers su*h as pro'u*tion houses an' +H ser(i*e pro(i'ers is a goo' e0a5p!e o% in*reasing synergies between the p!ayers. /5p!oying a*tors %ro5 the entertain5ent wor!' i.e. a*tors %ro5 5o(ies as we!! as te!e(ision seria!s *an he!p a great 'ea! in pro5otion o% +ata #-y. +his *an be seen as 'ua! a'(ertising strategy where te!e(ision seria!s as we!! as +ata #-y wou!' be pro5ote' through the sa5e a'(ertise5ent.

') Hig 4uality of service to customers! A''ressing *usto5er grie(an*es as we!! as #er(i*e #upport is one o% the -ey %a*tors in retaining -ey *usto5ers in ti5es o% !ow swit*hing *osts an' presen*e o% other p!ayers. =#er;i:#o! pro(i'es +ata #-y with three high<en' *a!! *entres o%%ering roun'<the<*!o*support in 11 'i%%erent !anguages at .une9 Hy'eraba' an' ,oha!i.>

e) Improvement in customer relations ips! +his again be*o5es i5portant in %a*e o% !ow swit*hing *osts. +his is a ser(i*e in'ustry an' !i-e any other ser(i*e in'ustry in(o!(es 'ire*t *usto5er intera*tion. +his e0perien*e o% the *usto5er 'e*i'es the %uture business. 5+ata #-y has se!e*te' #iebe!9 !ea'ers in 1usto5er 4e!ationship ,anage5ent (14,) so%tware9 to support operations a*ross the areas o% *a!! *entre an' %ie!' ser(i*e operations9 *usto5er or'er 5anage5ent an' pro'u*t *on%iguration.> A!so +ata #-y has estab!ishe' an e0tensi(e *usto5er ser(i*e networ- a*ross the *ountry. =&t has engage' a %ie!' %or*e o% appro0i5ate!y 3000 ser(i*e engineers who are *o5p!e5ente' by high<en' "407 *a!! *enters9 5anne' by 5u!ti<!ingua! *usto5er ser(i*e 17

asso*iates9 traine' to so!(e a!! *usto5er prob!e5s. +ata #-y ta-es 'ire*t responsibi!ity %or insta!!ing an' ser(i*ing the har'ware at e(ery subs*riberGs ho5e9 thereby ensuring the highest !e(e!s o% *usto5er ser(i*e.> %) Billing facilities! &t has been 'i%%i*u!t in the in'ustry to !at*h on to the en' *usto5er 'atabase be*ause o% the inter5e'iate ser(i*e pro(i'ers. +hey ha(e the in*enti(es not to 'is*!ose in%or5ation as we!! as re(enue %ro5 +H an' *ab!e p!ayers. ;ith proper bi!!ing syste5 in p!a*e9 ensuring (arious a!ternati(es to the *usto5er whi*h *ou!' be tra*e' ba*- to the en' *usto5er9 higher pro%its %or the *o5panies as we!! as !ower *osts to the en' *usto5ers is 5a'e possib!e. =+ata #-y has *hosen 1o5(erseGs Kenan 3H bi!!ing so%tware to support bi!!ing %or a!! resi'entia!9 institutiona! an' *o55er*ia! *usto5ers. +he Kenan so%tware has been enhan*e' spe*i%i*a!!y %or +ata #-y9 to support pre<pai' bi!!ing *apabi!ity that pro(i'es subs*ribers with the *on(enien*e o% paying as re?uire'. #i5i!ar to the prepai' 5obi!e phone *ar's9 re*harge *ar's are a(ai!ab!e in !ea'ing *onsu5er e!e*troni* stores a*ross the *ountry. +hey o%%er *onsu5ers the *on(enien*e o% *he*-ing their subs*ription 'etai!s (ba!an*e an' usage) through 5onth!y e<5ai! state5ents9 by *a!!ing their he!p!ine an' e(en on their own te!e(ision sets through on<s*reen 5essages (a!erts).>

6. ,ffer superior 0uality of ca)le service to customer

a) Investment in ig end tec nology in communications. .or eg!7 antennas1 T* dis ! &n(est5ent in state o% the art te*hno!ogy *an ensure higher ?ua!ity o% trans5ission i.e. higher ?ua!ity o% pi*ture as we!! as soun' an' hen*e a better e0perien*e %or the (iewer. +his *an he!p a great 'ea! in 'rawing *usto5ers %ro5 oor'arshan as we!! as 1ab!e +V sin*e these ser(i*e pro(i'ers sti!! !a*- a goo' 'ea! in pro(i'ing ser(i*es o% g!oba! stan'ar's. =+ata #-y has partnere' with F #9 the !ea'ing pro(i'er o% te*hno!ogy so!utions %or pay te!e(ision. F # syste5s has p!aye' a -ey ro!e in the en'<to< en' syste5 ar*hite*ture an' !aun*hing the nationwi'e 'igita! ser(i*e. +he F # Vi'eo Guar' *on'itiona! a**ess so!ution pro(i'es superior broa'*ast se*urity.>

b) Investment in )road)and8)and+idt i.e. in transponders! Ki5ite' ban'wi'th is o%%ere' to the in'ustry p!ayers ta-ing into *onsi'eration the tota! a5ount o% ban'wi'th that is a(ai!ab!e. +hus in(esting in 5ost a'(an*e' 18

an' high powere' sate!!ite wi!! gi(e a 'e%inite e'ge to +ata #-y. 5+ata #-y has !ease' a!! 1" Ku<)an' transpon'ers on &#462s &n'ian sate!!ite9 &F#A+ 4A9 the 5ost a'(an*e' an' high<powere' K7<)an' *o55uni*ation sate!!ite in the region9 'e(e!ope' -eeping in 5in' !o*a! re?uire5ents. +he sate!!ite enab!es +ata #-y to o%%er superior pi*ture an' soun' ?ua!ity with a wi'e range o% *hanne!s.>

9. %mpo+er Indian vie+er +it

c oice1 control and convenience

a) Control and C oice! +his in(o!(es o%%ering (ariety o% pa*-ages an' s*he5es to %it the nee's o% 'i%%erent seg5ents o% (iewers. i%%erent *usto5er seg5ents ha(e 'i%%erent nee's. 4ea!i:ing those nee's an' then o%%ering pro'u*ts a**or'ing!y *an he!p boost re(enues to a greater e0tent. 3or e0a5p!e there is a separate *usto5er seg5ent %or (iewers with a taste %or 'ra5a seria!s9 !i-ewise %or sports9 news9 *artoons et a!. with a (ariety o% pro'u*t o%%erings it wou!' be easy to !ure 'i%%erent seg5ent o% *usto5ers through the sa5e 5e'iu5. +ie ups with other broa'*asters to pro(i'e a brea'th o% port%o!io o% *ontent ranging %ro5 sports9 'ra5a seria!s9 *artons9 news et* as we!! as 'i%%erent *hoi*e o% broa'*asters !i-e #ony9 #tar p!us et a! wi!! he!p in gaining !arge nu5ber o% *usto5ers.

b) Convenience!

.ri*eC 3irst!y there shou!' be 'i%%erent *usto5er *on(enient pay5ent options through whi*h pay5ent *an be 5a'e. #e*on'!y9 there shou!' be (arious pa*-age options to ser(i*e the nee' o% e(ery seg5ent o% *usto5ers in*!u'ing pri*e sensiti(e seg5ent a!so. #er(i*eC e'i*ate' *a!! *entre wor-%or*e to a''ress *usto5er grie(an*es an' %or ser(i*e support. A%ter sa!e ser(i*e o% *usto5ers is a!so (ery i5portant be*ause o% !ow swit*hing *osts in the in'ustry an' hen*e in(est5ent is nee'e' in this area.


1onstru*tion o% 1#3 tree %or +ata #-y in in'ustry9 &n'ia .


CS. Tree

6bje*ti(eC +o rea*h 8 5i!!ion subs*riber 5ar- by "01"


1ontentM Jua!ity o% #er(i*e

1usto5er #er(i*e

ea!er Fetwor-

&'enti%y *usto5e r #eg5ent s

6%%er the 5ost re!e(ant bou?uet o% *hanne!s an'

e!i(er high ?ua!ity *ontent %or both (i'eo an' au'io

4esp onse +i5e

Jua!ity o% ser(i*eM response

/0pan'i ng an' 5anagi ng 'ea!er networ-

1on(enien*e o% pay5entM


,a-e re!e(ant

#trategi* 7se o% &+ to a*hie(e 1#3 .

1. Data :are ouse! A 'ata warehouse is nee'e' %or 5aintaining a!! the 'ata
re!ate' to *usto5ers9 'ea!ers9 operations9 5ar-eting9 %inan*e an' other %un*tions. +his wi!! a*t as the base %or 5ost o% the &+ syste5s in the *o5pany.

2. Data mining tool! +he 'ata 5ining too! *an ha(e 5u!tip!e bene%itsC
a. 1usto5er #eg5entationC Kogs o% *hanne!s wat*he'9 subs*ribe' pri*ing pa*-ages9 !o*ation et* *an he!p in seg5enting the *usto5ers. ata 5ining too! *an %in' patters in su*h 'ata that *an he!p in this regar'. b. 4e!e(ant bou?uet o% *hanne!s an' ser(i*esC +he 'ata 5ining too! *an i'enti%y patterns that *an he!p in i'enti%ying 5ost re!e(ant ser(i*es an' *hanne!s to be o%%ere' to a parti*u!ar seg5ent o% *usto5ers. *. Va!ue .roposition to broa'*asters an' a'(ertisersC ata 5ining *an pro(i'e a 5ore *o5prehensi(e pi*ture o% user pre%eren*es an' *an he!p in progra55ing an' a'(ertising. '. 1usto5er #er(i*eC .atterns in *usto5er %ee'ba*-M *o5p!aints *an he!p in i'enti%ying the root *ause o% the prob!e5 an' thereby he!ping in 'e!i(ering better *usto5er ser(i*e.

3. Customer 'elations ip Management! 14, o%%ers 5u!tip!e bene%itsC

a. 1usto5er #er(i*eC ,ost 14,s o%%er *a!! *entre so%tware an' he!p 'esso%tware that *an he!p in 'e!i(ering better ser(i*e ?ua!ity to the *usto5ers.


b. 4etaining *usto5ersC 14, *an he!p pro(i'e spe*ia! !oya!ty s*he5es su*h as a''itiona! *hanne!sM ser(i*es (ou*hers that he!p in retaining *usto5ers. *. /%%e*ti(e .ro5otion *a5paignsC 14, *an he!p in 5a-ing rea! ti5e re!e(ant an' persona!i:e' o%%erings to *usto5ers. +hey *an a!so he!p in i'enti%ying the right *hanne!s to use to rea*h the *usto5er. '. ,ar-eting ana!ysisC +he 14, too! *an assess the e%%e*ti(eness o% the 5ar-eting *a5paign. &t *an a!so i'enti%y areas %or i5pro(e5ent an' *reate 5ore re!e(ant o%%erings.

4. Billing Soft+are! +his o%%ers the %o!!owing bene%itsC

a. ,u!tip!e bi!!ing optionsC +he bi!!ing so%tware 5ust be ab!e to o%%er 5u!tip!e pay5ent options to the *usto5er su*h as pre<pai'M post pai'9 internet pay5ent9 5obi!e pay5ent et*. b. 1usto5i:e' o%%eringsC +he bi!!ing so%tware 5ust be ab!e to generate *usto5i:e' bi!!ing %or *usto5ers 'epen'ing on the ser(i*es use'9 *hanne!s subs*ribe' et*. ,oreo(er9 *usto5ers shou!' be o%%ere' the %!e0ibi!ity to swit*h their *hanne! bou?uet s*he5e at wi!!.

5. Marketing! 7se o% &+ in 5ar-eting *an be 'one in %o!!owing waysC a. &nternet ,ar-etingC ;eb *an be use' as an e%%e*ti(e too! to 5ar-et +H as the (a!ue proposition o% +H is higher in urban areas where the penetration o% &nternet is higher an' *usto5ers are te*h sa((y. &nternet *an a!so be use' to *ounter the e5erging threat o% &.+V as an a!ternati(e. b. &'enti%ying %o*us groupsC &+ *an he!p in i'enti%ying seg5ents where +H has an a'(antage o(er other %or5s o% .ay +V9 su*h as re5ote or hi!!y areas where 1ab!e +V or +errestria! +V is not %easib!e.


4e%eren*es .

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