Come home to DTH new

23 October 2004

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Direct-to-home offers more channels to viewers, better reception and freedom from
cable operators. Tanmoy Mitra reports

Over 1.5 lakh subscribers across India already have Direct-to-Home (DTH), a viable
technology option for consumers dissatisfied with the service dished out by cable TV
operators. The Subash Chandra-promoted ASC Enterprises LTD, has invested Rs200
crore for expansion of the DTH service in India.,

His son, Punit Goenka, CEO, ASC, has seen his company being awarded the first DTH
licence in India, and has joined hands with Chandra's better-known ZEE Telefilms to
launch India's first KU-band DTH service, Dish TV.

Currently Dish TV is the sole DTH provider in India, transmitting over 100 channels
from its platform, covering the most popular channels. After signing an agreement with
BT Broadcast Services (BTBS), in August 2004, which will help European and American
broadcasters to tap the Indian market, ASC is broadcasting a host of international
channels. This service is also providing value-added services that include radio channels,
teletext, dual audio for channels, parental control and electronic programme guide (EPG).

What is DTH?

‘Direct-to-Home (DTH) is a wireless digital audio / video service delivered to a

consumer through satellite. DTH transmission is received directly on the consumer's TV
set through a small dish antenna unlike with a regular cable connection. The encrypted
transmission is decoded by a 'set-top box' (STB).

A DTH connection offers immense opportunity to both broadcasters and viewers as it

eliminates the local cable operator and puts the broadcaster directly in touch with the
consumer. Besides transmitting numerous channels over a single platform, the technology
allows the broadcaster to introduce a large number of interactive applications like
broadband Internet connections, gaming, and video-on-demand in the television market.
A user can scan up to 700 channels.

Will DTH work in India?

About five years back the estimated cost of a DTH-transmitted bouquet of channels
would have been Rs700 and with the addition of value-added services like gaming,
internet, the cost would have been higher. Moreover, to receive this technology, a user
had to buy a set top box that costs between Rs7,000 and Rs12,000.

But today, with the government pushing for this technology, the situation is different.
Prices of the dish and the set-top box have crashed and the overall investment in putting
up a DTH infrastructure has dropped considerably.

A few years ago, a DTH platform would have required an investment of between Rs2,000
and Rs2,500 corer (Rs20-25 billion). Now, a similar infrastructure would cost Rs250
corer (Rs2.5 billion). Consumers will enjoy better tariffs with the prices of STBs coming
down to Rs4, 000 and a monthly package of Rs300 for being able to view 100 or more
channels.

The failure of CAS

The increase in monthly rentals, high cost STBs and technical complications are among
the main reasons associated with the failure of the conditional access system (CAS).

Under CAS the STB is attached to individual TV sets that directly link the TV to the
software installed at the cable operator's control room. The software is programmed to
accept only signals from those channels, which the viewer has subscribed for.

DTH scores over CAS

Unlike CAS, the DTH technology can reach the remotest of areas since it is a wireless
technology and digital signals are received directly by the DTH dish from the satellite.

There are four players in the field as of today - ASC Enterprises with Dish TV, the Tata-
Star combine's Space TV, NSTPL (a group company of Dr J K Jain-promoted Jain
Studios Ltd) and Prasar Bharati. Of the four, only Dish is up and transmitting at the
moment.

Doordarshan, the public broadcasting terrestrial channel run by Prasar Bharati, is

planning to launch its direct-to-home service, DD Direct Plus, by November. DD Direct
Plus is a unique service, as Doordarshan would not be charging any subscription fee from
the viewers, making it the first free-to-air DTH service in the world.
.
The government's cable and broadcast regulator, Telecom Regulatory Authority of India
(TRAI), has issued a draft on interconnection agreement, which bans exclusive
programming to direct-to-home (DTH) satellite. Under the agreement all broadcasters,
DTH operators and multi-system operators (MSOs) are required to deliver all channels to
their viewers. This will ensure subscribers have access to all channels regardless of the
satellite or cable TV supplier they subscribe to.

DTH is becoming the technology that will drive the future of broadcasting industry in
India. In a country of more than 1 billion people, it is no surprise that global broadcasters
have set their eyes on the world's largest open market for DTH satellite television
services. According to a survey conducted by Star TV, there will be around 2 million
DTH subscribers in India in three years.