FORECAST

INDIAN

CABLE TELEVISION

INDUSTRY

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 Table of Contents
1. Introduction

2. Executive Summary
2.1 Growth Trajectory
2.2. How cable TV spread and began in India
2.3. Key Drivers
2.4. Outlook for the Indian Television Industry

3. Cable Television – A Challenge

3.1. Snapshot
3.2. Development factors – Cable television industry
3.3. Custom Solution to Indian Market
3.4. Changes in Doordarshan

4. Cable Television Networks

4.1. List of MSO’s (Multi System Operators)

5. HITS
5.1. Introduction to HITS
5.2. India on HITS
5.3. How HITS works?

6. CAS (Conditional Access System)

6.1. CAS in India
6.2. Importance of CAS
6.3. Distribution Network for cable TV system
6.4. CAS providers in India
6.5. How Cable TV-CAS works

7. Competitive Landscape (CATV)

7.1. Home Cable Entertainment India Pvt. Ltd.,
7.2. Indusind Media & Communications Ltd.,
7.3. Wire & Wireless (India) Ltd.,
7.4. Digicable Pvt. Ltd.,
7.5. Hathway Cable & Datacom Pvt. Ltd.,
7.6. DEN Networks Ltd.,
7.7. Arasu Cable TV Corporation Ltd.,
7.8. Sumangali Cable Vision (SCV).

8. Market Trend Predictions

9. List of tables
8.1. Projected growth of Indian television industry
8.2. Projected growth of Indian television industry
8.3. Statistics – State wise cable television industry
8.4. CATV Architecture – Diagrammatic Representation
8.5. Stats – Cable households year wise
8.6. HITS Architecture – Diagrammatic Representation .
10. Bibliography

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 1. Introduction:

Community Antenna Television (CATV) more commonly referred to as cable TV, got its start in the United States in
the 1940’s as solution for providing better reception of broadcast channels in rural areas, it has since become a global
phenomenon. Poor television, after all, knows no borders.

Today, there is an estimation of over 300 million cable subscribers worldwide. Nevertheless, CATV, as an application
and as a market, has become as diverse as the world it covers, phenomenon that is readily seen in Asia, which boasts
the most rapidly growing cable TV markets in the world.

Cable Television in India has its roots in late seventies. Apart from the state owned broadcaster Doordarshan was
offering, Indian television viewers were looking for more entertainment options. India, now the third largest
subscriber base for cable television in world today with around 80 million cable television homes in its stake.

2.0. Executive Summary

2.1. Growth Trajectory of Cable Television

2.2 How Cable TV began and spread in India

Television in India has been in existence for nigh on four decades. For the first 17 years, it spread haltingly and
transmission was mainly in black & white. Sales of TV sets, as reflected by licenses issued to buyers were just
676,615 until 1977.That came their way with the import and manufacture of videocassette recorders permitted
domestically. There was a veritable boom in videocassette recorder sales during this period. Enterprising individuals
in apartment blocks placed a video in their homes or their garages and started offering a cable TV service to people
who opted for it.

The impetus for its spread came in 1990 with the advent of the Gulf war. Ted Turner's CNN started beaming news
reports of the bombing of Kuwait by Saddam Hussein and sparked off a demand for satellite dishes. Only the affluent
could afford them. Some cable operators who had been running their Hindi and English movie channels added dishes
and started relaying CNN into homes. This spurred demand for cable TV, making it a lucrative business and it
attracted more individuals to the industry.

The second spark came in the early nineties with the broadcast of satellite TV by foreign programmers like those that
CNN followed by Star TV and a little later by domestic channels such as Zee TV and Sun TV into Indian homes.
Prior to this, Indian viewers had to make do with DD's chosen fare, which was dull, non-commercial in nature,
directed towards only education and socio-economic development.

The launch of Star TV and Zee TV further fuelled the spread of cable TV. In the first half of 1992, almost 4,500
households were being cabled up daily. That figure increased to 9,450 homes daily in the second half of the year,
according to a study conducted by market research firm - Frank Small for Star TV: on how many homes could receive
its service. (If one considers that almost all Indian cable homes can receive Star TV because it shares the same
platform as Zee TV then the numbers would be a fair representation of the total number of C&S homes at that time
because Zee TV has almost 100% penetration in cable homes.)

From a mere 412,000 urban households in January 1992, the number of cable homes went up to 1.2 million by
November 1992. The number of homes estimated in 1993 was 3.3 million according to the Frank Small study. This is
estimated to have gone up to 7.3 million by January 1994, according to one estimate. Frank Small once again
surveyed the market in end-1994 and the firm placed the number of cable & satellite homes at 11.8 million out of a
total of 32.4 million TV owning homes.
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India has over 130 million homes with television sets, of which nearly 76 million have access to cable TV. The
overall Cable TV market is growing at a robust 8-10%.The cable TV industry exploded in the early 1990’s when the
broadcast industry was liberalized, and saw the entry of many foreign players like Rupert Murdoch's Star TV
Network in 1991, MTV, and others. The emergence and notification of the HDVSL (High definition video over
subscriber line) standard as a homegrown Indian digital cable standard is likely to open an era of interactivity on cable
networks.

2.3. Key Drivers (Media & Entertainment)

 Economic growth of the country in general and rising disposable income levels in particular
 Gradually liberalizing attitude of the government
 Greater interface with international companies
 Privatization and growth of the radio industry
 Advancement in Technology
 Favorable regulatory initiatives
 Liberalized foreign investment regime

2.4. Outlook for the Indian Television Industry 2009-2013

The Indian television industry is projected to grow by 11.4% over the period 2009-13 and is projected to reach an
estimated Rs. 420 billion in 2013 from the present estimate of Rs. 245 billion in 2008. No significant shift is projected
within the relative shares of the television distribution and television advertising industry over the next five years.
Hence, television distribution is projected to garner a share of 60% in 2013; on the other hand, television advertising
industry is projected to command a share of 36% in 2013 (34% in 2008). The relative share of the television content
industry is expected to remain constant at around 4% though in respect to growth, the television content industry is
expected to grow at a CAGR of 13.8%.

Television distribution industry is expected to reach Rs. 250 billion in 2013 from the current estimated size of Rs. 150
billion in 2008, which translates into a growth of 12.2% on cumulative basis over the next five years. The growth in
the television distribution industry is expected to be contributed by both subscription spending, by Pay TV subscribers
as well as growth in the Pay TV homes (cable and DTH). While the dominant mode of distribution will continue to be
cable (80 million households at CAGR 2.4%), DTH households will grow to 35 million at a CAGR of 31.2% for the
next 5 years.

Television advertising industry is expected to reach Rs. 150 billion in 2013 from the current estimated size of Rs. 84.2
billion in 2008, which translates into a growth of 12.2% on cumulative basis over the next five years. The television
advertising industry growth is expected to slowdown because of the economic crisis the world is going through.
Inspite of the slowdown in growth, India spurred on by domestic demand is still expected to have among the highest
growth rates in television advertising along with China.

Television content industry is projected to maintain a growth rate of 11.4% over the next five years and is expected to
reach Rs.20 billion in 2013 from its present size of Rs.10.5 billion, fuelled largely by the continued increase in the
number of television channels in the country. Moreover, audience fragmentation is expected to further intensify,
which will result in greater need for quality content. This will benefit the television content industry. The growth in
the television distribution industry is expected to be contributed by both subscriptions spending by pay TV subscribers
as well as growth in the pay TV homes. The pay TV homes are projected to increase from 80 million in 2008 to 115
million in 2013. Currently, cable TV homes command a penetration of 89% of the pay TV homes in 2008. This is
projected to come down to 70% by 2013, largely in favor of the emerging DTH homes.

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Cable homes are projected to increase from 71 million in 2008 to 80 million households in 2013. This growth is
projected to be largely from semi-urban and rural areas. DTH homes are projected to grow to 35 million in 2013 from
9 million in 2008, thus increasing their penetration from 8% of the television homes in 2008 to 26% in 2013. Overall,
pay television homes are projected to increase from 80 million in 2008 to 115 million by 2013 at a growth rate of
7.5% over the next five years.

Table 8.1. Projected growth of Indian Television Industry

CAGR
Rs in billions 2008 2009f 2010f 2011f 2012f 2013f 2009 -
2013
Television 150.0 165.0 185.0 205.0 225.0 250.0
Distribution 10.8%
% Change 9.9% 10.0% 12.1% 10.8% 9.8% 11.1%
Television 84.2 91.0 100.0 112.0 130.0 150.0
Advertising % 12.2%
Change 7.9% 8.1% 9.9% 12.0% 16.1% 15.4%
Television 10.5 11.5 13.0 15.0 17.0 20.0
Content 13.8%
% Change 11.7% 9.5% 13.0% 15.4% 13.3% 17.6%
Total 244.7 267.5 298.0 332.0 372.0 420.0 11.4%
% Change 9.3% 9.3% 11.4% 11.4% 12.0 12.9%

Table 8.2. Projected growth of Indian Television Industry

2008 2009f 2010f 2011f 2012f 2013f CAGR

In millions 2009 -
2013
TV 118.0 120.0 125.0 130.0 132.0 135.0
Households 2.7%
% Change 2.6% 1.70% 4.2% 4.0% 1.5% 2.3%
Pay TV 80.0 87.0 94.0 100.0 107.0 115.0
Households % 7.5%
Change 8.8% 8.7% 8.0% 6.4% 7.0% 7.5%
Cable TV 71.0 72.0 74.0 75.0 77.0 80.0
Households 2.4%
% Change 1.4% 1.4% 2.8% 1.4% 2.7% 3.9%
DTH 9.0 15.0 20.0 25.0 30.0 35.0
Households 31.2%
% Change 157.1% 66.7 33.3% 25.0% 20.0% 16.7%

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3. Cable TV: A challenge

The cable TV industry is developing under the direction of pay-TV broadcasters, MSO’s and independent cable
operators. The industry is clearly divided into CAS-ready networks, non CAS-ready networks, semi-urban networks,
urbanized rural networks and rural networks. The challenge for cable exists in rural areas where installation and
Application are extremely cost prohibitive; nearly three quarters of India is designated rural territory. This has created
an opportunity for DTH, which serves an immediate threat to the cable networks. Despite DTH’s suitability for
remote clusters, high initial costs limit entry into semi urban and rural homes. Anticipating the need for a cost-
effective solution in India, NDS introduced VideoGuard Express® in October 2007. Video-Guard Express® is a cost-
effective CA solution for smaller operators migrating from analog to digital broadcasting. By offering a standard
configuration pre-integrated to a set top box (STB), NDS, VideoGuard Express® is able to reduce both the cost and
time required to deploy a digital pay-TV system, delivering content and service protection to ensure steady cash flow
without the threat of piracy.

 Cable’s big advantage is the return path. A cable box is highly interactive and subscribers can give commands
for content that can be fetched from the server instantaneously.
 The cable box does not require a dish set up. Cable can be received even in high rise buildings and basements
 Cable Pay TV CAS also works through a set top box but operates on conventional cable lines and involves
the intervention of the local cable operator to activate or deactivate a pay channel

3.1. Snapshot of Indian Cable Industry

The below statistics gives the insight view of the market status of the Indian Cable Industry:

 3rd Largest Cable TV Market Worldwide

 India Has More Cable TV Homes than All Europe Combined!
 Follows European Standards: Germany's PAL B/G Color System, 240 VAC
 Cable TV Growing At 9% to 12% Annually
 As of now 30,000 registered cable operators & 30,000 unregistered cable operators
 Over 3 million digital cable users inclusive of 1.3million CAS (Cabled Conditional Access – Digital)
customers
 Wide market for all levels of products ranging from SA-BARCO and GI to Chinese and local brands
 Most CATV networks migrating to Fiber
 Indian cable networks typically provide 56 channels (550 MHz) to 106 channels (862 MHz) 1310 nm and
1550 nm Bi-Directional CATV fiber optic systems being deployed

3.2. Development factors – Cable Television Industry

The cable TV industry is developing under the direction of pay-TV broadcasters, MSO’s and independent cable
operators. The industry is clearly divided into CAS-ready networks, non CAS-ready networks, semi-urban networks,
urbanized rural networks and rural networks. The challenge for cable exists in rural areas where installation and
Application are extremely cost prohibitive; nearly three quarters of India is designated rural territory. This has created
an opportunity for DTH, which serves an immediate threat to the cable networks. Despite DTH’s suitability for
remote clusters, high initial costs limit entry into semi urban and rural homes. Anticipating the need for a cost-
effective solution in India, NDS introduced VideoGuard Express® in October 2007. Video-Guard Express® is a cost-
effective CA solution for smaller operators migrating from analog to digital broadcasting. By offering a standard
configuration pre-integrated to a set top box (STB), NDS’s VideoGuard Express® is able to reduce both the cost and
time required to deploy a digital pay-TV system, delivering content and service protection to ensure steady cash flow
without the threat of piracy

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  Cable’s big advantage is the return path. A cable box is highly interactive and subscribers can give commands
for content that can be fetched from the server instantaneously.
 The cable box does not require a dish set up. Cable can be received even in high rise buildings and basements
 Cable Pay TV CAS also works through a set top box but operates on conventional cable lines and involves
the intervention of the local cable operator to activate or deactivate a pay channel

3.3. Custom solution for Indian market

The cable companies have to consider the existing solution in Indian companies that can provide solution that is less
expensive and affordable even by small MSO. This is just a starting point where the companies can invest in R&D
effort to built head ends for Indian market. Considering the evolution of open standards and future it’s very easy,
effective and economical if some rich Indian company like Reliance / Zee puts some effort to develop the head end,
which would be a great revenue stream for them.

Table 8.3. Statistics – State wise cable television industry

Households TV owning TV C&S C&S Penetration

States in million households penetration Households (%)
in million (%) in million

Andhra Pradesh 19.1 12.6 65.7 11.5 59.9

Assam 5.7 1.9 33.8 0.5 9.4
Bihar 16.4 3.6 22.2 0.8 4.8
Chhattisgarh 4.6 1.8 38.5 0.8 16.9
Delhi 3.3 3.0 90.5 2.6 78.1
Gujarat 11.4 6.3 55.5 3.9 34.3
Jharkhand 5.4 1.6 28.9 0.7 13.0
Punjab/HP/Chandiga 6.6 5.3 80.1 2.6 38.7
rh
Haryana 4.5 3.3 73.7 2.0 44.1
Karnataka 12.0 7.9 66.5 6.6 55.4
Kerala 7.5 5.2 68.6 3.6 47.8
Madhya Pradesh 12.6 5.0 39.8 2.4 18.7
Maharashtra/Goa 22.9 14.5 63.1 8.3 36.3
Meghalaya 0.5 0.3 60.4 0.2 39.2
Orissa 9.1 3.4 37.9 1.6 17.7
Rajasthan 10.7 4.9 46.3 1.8 16.7
TamilNadu/Pondich 16.5 11.1 67.3 10.3 62.1
erry
Tripura 0.7 0.3 44.9 0.2 26.3
Uttar Pradesh 29.5 10.5 35.7 2.9 9.8
Uttaranchal 1.8 1.0 57.2 0.4 19.8
West Bengal 18.2 7.9 43.1 4.9 26.6
Total 219.2 111.6 50.9 68.4 31.2

Public broadcaster Doordarshan launched its mobile TV pilot project in 2007 with handset major Nokia, there were no
other significant developments in this front since then. However, there have been numerous initiatives by TV

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Broadcasters for bringing re-purposed television contents on to mobile handsets, in-anticipation of growth in Mobile
TV services. These include Star TV’s launch of the PLUS application and the Essel Group DMCL collaboration with
BSNL to launch a mobile application. In 2009, Doordarshan released an Expression of Interest to hire a consultant for
developing a roadmap for ‘Public Private Partnership’ for the growth of DD’s mobile TV service.

Fig.8.4. CATV Architecture – Diagrammatic Representation

Fiber/Coax Hybrid
Cable

Satellite CATV Head-end & Trunk Amplifiers,

Laser Transmitter Splitters & Splices

Serving Area

Laser/Optic
Internet Service Provider
al Receiver
Copper
Router Switched Cable
Hub

Network Bridge Amplifiers,

Management Power Inserters & Line
Systems Extenders

Frequency
Translator

In-Home Cable Splitter

Cable Cable Box &

Modem& PC Television

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The architecture of the futuristic CATV network using hybrid fiber-coax cable structure is shown in above diagram.

Signals are sent from the Satellite (or any other source of Data / Information) to the CATV head-end, which also
comprises the Laser Transmitter and the modulator. The Laser Transmitter converts the Radio Frequency (or RF)
signals to Optical or Photo signals. The signals will be carried through a hybrid cable comprising of Fiber Optic Cable
and Co-axial Cable. Currently the cabling used is entirely coaxial (by all Indian networks and most International
networks), but more and more firms will be moving towards the hybrid combination.

The complete cable network is classified as “Trunk Network” and “Bridge Network”. The “Trunk Network” is the
long-range cable network, and the part of network that branches off into the local serving area is called the “Bridge
Network”.

The equipments used in the (Hybrid) Trunk network are AGC Trunk Amplifier, Thermal Trunk Amplifier, and
Optical Connectors, Splitters and Splices. Once the signal is split, it is once again amplified and transmitted, and is
received by the Laser / Optical Receiver, which converts the photo signals back into RF signals.

From here, the signals are transmitted through copper cable into the home (while the more forward looking firms are
looking at fiber connections right till the home), where a cable splitter branches the cable into two parts – one for the
Personal Computer and one for the Television. The part that goes to the PC goes through a Cable Modem and the
Television signals pass through a Cable Box to the TV. The CATV systems currently in use in India are bi-
directional, meaning that they can carry signals in either direction.

3.4. Changes in Doordarshan:

The government of India and Prasar Bharti in general has realized the importance of TV channels and has improved
the quality of programs and doordarshan is in the process of transforming itself as multi channel provider. Currently
Doordarshan offers 59 channels & 21 Radio channels in various languages. Doordarshan is currently in progress of
increasing their channels to 100 numbers. However, inspite of its best effort Doordarshan is struggling to regain its
old glory.

4. Cable Television Networks

India’s Cable TV networks are a blend of hybrid fiber coax, run by the largest CATV providers or MSO’s in top
metropolitan areas, and lower-bandwidth copper networks mixed with satellite service in the rest of the country. The
subscribers in India receive rich domestic and foreign television content on 439 channels until date (130 channels
waiting for down linking approval) with more channels to be entitled soon in the Indian Television frame.

The CATV market in India does have some similarities to the United States, in that MSO’s generate trade or purchase
content. However, there are far fewer MSO’s— Fewer than 10, concentrated in metropolitan areas—in India, and
significantly greater number of franchisers, numbering in ten thousands and delivering the last mile of service to
millions of Indian cable subscribers

To name some of the major players in the current cable television industry are Home Cable Entertainment India Pvt.
Ltd., IndusInd Media & Communications Ltd., Wire and Wireless (India) Ltd., Digicable, Hathway Cable & Datacom
Pvt. Ltd., Den Networks Ltd., Arasu Cable TV Corporation and SCV (Sumangali Cable Vision) A Sun Network
Venture. Sun TV (India) launched in 1992 as the first private channel in South India. Today it has 20 television
channels in the four South Indian languages - Kannada, Malayalam, Tamil and Telugu. Channels of the Sun TV
network are also available outside of India. Recently Sun TV launched a DTH service.

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4.1. List of MSO’s (Multi System Operators)

1. Home Cable Entertainment India Pvt. Ltd.,

2. Indusind Media Communications Ltd.,
3. Wire & Wireless India Ltd.,
4. Hathway Cable & Datacom Pvt. Ltd.,
5. DEN Networks Ltd.,
6. Digicable Pvt. Ltd.,
7. Arasu Cable Corporation Ltd., (A government of TamilNadu Enterprise)
8. Sumangali Cable Vision (SCV). A Subsidiary of SUN TV Network
9. IN- Cablenet a venture of Hinduja group

Table 8.5. Following stats show the increase in households cabled from year 1992 to 2009.

Year Number of households Cabled

January 1992 412,000
November 1992 1.2 million
1993 3.3 million
January 1994 7.4 million
December-1994 11.8 million
1995 15 million
1996 18 million
1999 22 million
2008 71 million
2009 76 million

5. HITS

5.1. Introduction of HITS

What is HITS? – Head end in the Sky (HITS), a digital distribution platform. A satellite multiplex service that
provides cable channels to cable television operations. “Headend in the Sky”, provides a complete array of digital
video and audio programming needed for a comprehensive programming strategy.

The networks are grouped to efficiently address different market needs. As a programming and service provider,
HITS affiliates need only to make one phone call to change their lineup or to seek help resolving service questions

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5.2. India on HITS

HITS serves the whole country by providing its signals through satellite for many Multi System Operator (MSO)
/cable operators who can further send the signals to the customers using their network. The essential difference
between a HITS operator and a Multi System Operator (MSO) is that the former transmits the bundle of channels to
the cable operators using a satellite, whereas the latter does the same through cable.

In India, total direct and indirect foreign investment including FDI (Foreign Direct Investment) which is allowed up to
74%. Prior FIPB (Foreign Investment Promotion Board) approval will be required if the FDI is beyond 49%.

There is no restriction on number of permissions. All those found to be eligible and fulfill the terms and conditions
could apply for license to the Government in the Ministry of Information & Broadcasting.

HITS are a digital delivery mode of distribution of TV channel and it would speed up the process of digitalization of
cable services located in Non-CAS areas of the country. HITS would not only help increase the penetration of cable
market further into rural areas where it has been absent because of un-viability but will also help in further reduction
of prices of set top boxes and will also lead to further consolidation of the cable market.

5.3. How HITS works?

The technology requires a HITS operator to use a satellite as his/her head-end. All required channels are down linked
on a ground station, encrypted and sent up to a selected HITS satellite. This satellite beams the channels back to the
earth to be picked up by an MSO or a cable operator for distribution of his/her network.

Like in an ordinary digital head-end, these channels are not processed individually but in groups as beamed by a
satellite transponder. The processing equipment is called transmodulator that converts the QPSK modulation of the
group of digital channels to QAM modulation required for cable TV distribution and sends them to the set-top box
placed at the customer’s end. Advantage of this technology is that the distribution cost per channel reduces
tremendously as a group of 12-15 channels processed together.

In addition, the HITS operator at the national level implements the CAS (Conditional Access System) and the SMS
(Subscriber Management System) thereby reducing the cost by a fraction.

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Fig 8.6: HITS Architecture – Diagrammatic representation

HITS ARCHITECTURE

Coax

Satellite Satellites
Satellite
Locally
Digitized
Channels Coax

C
O Hub
M
HITS B
I Hub
Receive Unit
N Post
Master Digital Head Amplifier
end E
R
Optical RX
HITS HEADEND

SMS (Subscriber
Management
System)
Set top Box & TV

Optical Node

6. CAS (Conditional Access System)

CAS, as defined is the protection of content by requiring certain criteria to be met before granting access to this
content. CAS refers to Conditional Access System where you will be able to pay only for those channels that you
watch.

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6.1. CAS in India

In India, this concept is really becoming more and more popular as it gives a freedom of choice. The process works in
the same way as the signals are digitalized through set-top box (STB). Indian audience can acquire many benefits
from CAS. The best part of it is that people will be able to pay for the channels that they watch. Apart from users, it is
beneficial for broadcasters, cable operators and advertisers. Overall, it is one of the better things that are happening in
India in terms of TV entertainment. However, there is only one concern, which is the high price of STB. So, if there
will be some reduction in prices pertaining to STB then you can say that CAS is a better option to go instead of DTH
and other such like options.

6.2. Importance of CAS (Conditional Access System)

Recently I&B Ministry made Conditional Access System (CAS) a mandatory for MSO’s. The news pushed share
prices of companies like Sun TV (which sell CAS) to upper circuits. Few days later, I&B Ministry reverted that order.
With the present new guidelines, it is not compulsory for cable operators, MSO’s to switch to HITS, and they can
continue with their existing system.

The idea of CAS was mooted in 2001, due to a furore over charge hikes by channels and subsequently by cable
operators. Poor reception of certain channels; arbitrary pricing and increase in prices; bundling of channels; poor
service delivery by Cable Television Operators (CTO’s); monopolies in each area; lack of regulatory framework and
redress avenues were some of the issues that were to be addressed by implementation of CAS

Well, the country is migrating slowly to Digital Transmissions and systems like HITS that are both cost friendly and
high quality are real boon to the end users.

To brief about CAS, Conditional Access System has two goals:

 Enable legitimate subscribers access to view content.

 Prevent unauthorized viewers from accessing content

Conditional Access Systems work by scrambling the video signal using a set of secret keys. Those secret keys are
protected using encryption. Conditional Access Systems are used is satellite, cable, and DSL television distribution
networks.

6.3. Distribution network of the Cable TV system

 Telecom Regulatory Authority (TRAI)

 Broadcaster
 Multi Service Operator (MSO)
 Local Cable Operator (LCO)
 Viewer

6.4. How Cable TV-CAS works?

For CAS to be functional in Cable TV system, the viewers need to buy a set top box, which can be either digital or
analog. The set top boxes can be bought from the MSO or taken on a rental basis. However, when the viewers shift
home, if the new locality is not covered by the same MSO then the same set top box cannot be used. MSO’s install
devices known as Subscriber Management System (SMS), which store all details about the subscriber for e.g. Name,
address, channels subscribed to, etc.

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Implementation of CAS also needs the MSO’s to connect their ‘head ends’ in a ring structure via optic fibers and the
LCO’s need to change the last mile cable from the normal RG11 to hybrid fiber coaxial network.

Under CAS, the pay channels signals will be encrypted at the MSO ‘head end’ and transmitted along with the
encryption code. At the subscriber end, set top box will decrypt the signal using the decryption code. Thus the viewers
will be able to watch only those pay channels that they have subscribed to. The FTA channels will directly reach the
television set bypassing the set top box. Therefore, FTA channels can be received even without a set top box while the
box is essential for watching pay channels.

6.5. Conditional Access Systems providers in India:

 VideoGuard (Product of NDS)

 Irdeto
 Mediaguard
 Viaccess
 Conax
 NDS

7. Competitive Landscape: CATV (Cable television)

7.1. Home Cable Entertainment India Pvt. Ltd.,

 Home Cable, one of the nation's most experienced cable service provider, has managed cable television
systems since 1991
 Home Cable operates cable systems that have an estimated market value of over Rs. 25 Crores
 An increased capacity of more than 400 channels (Currently 121 Channels) upgraded from the previous
120 channels.
 Providing service of over 15 years in the Indian television market
 More Information can be obtained from http://www.homecableindia.com/main.php

7.2. IndusInd Media & Communications Ltd.,

 Only MSO to have an extensive owned pan-India fiber network

 Their estimate of homes passed on their network is 16.8 million homes with 6.5-7 million homes
connected.
 Over 1200 employees and 2,400 affiliated local cable operators—LCO typically services the customer
 Around 0.5 million digital cable homes of IMCL across 12 cities
 Over 250 channels being telecasted through Digital cable and over 90 channels in analog cable
 More information can be obtained from http://www.indigital.co.in/abt/default.html.

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7.3. Wire and Wireless (India) Ltd.,

 Wire and Wireless (India) Limited is a part of the Essel Group, which is amongst India’s most
prominent business houses with a diverse portfolio of assets in media, packaging, entertainment,
technology-enabled services, infrastructure development and education.
 One of the India’s largest Multi System Operator (MSO) and first company in India to launch Head end-
in-the-Sky (HITS)
 With 73 analogue and 5 digital head ends
 Provides network to 10 million cable and satellite homes in 189 cities of India, 400 centre’s and 4000+
Franchises
 WWIL has been in the business of providing content through analog cable system from the broadcaster to
the Local Cable Operators (LCO’s) since inception
 Popularly known as SITI cable as it is marketed under the SITI brand Umbrella
 For more information visit: http://www.wwil.net/

7.4. Digicable Pvt. Ltd

 Digicable is one of the largest Cable distribution company with a strong emphasis on quality of service
and content
 Having subscribers in 125 locations in 46 cities and 14 states across India
 Uses Fiber optic as the backbone across its networks and state-of-art distribution set-ups
 Service offerings in analogue cable, Digital cable & broadband services
 100+ channels at their disposal serving across its networks in India
 For more information visit: http://www.digicable.in/

7.5 Hathway Cable & Datacom Pvt. Ltd.,

 One of the largest Cable TV services company in India since its establishment in 1995
 Hathway provides quality Cable TV services in thirteen cities across the nation.
 Hathway has 3 broad service areas: Digital Cable TV, Hathway Broadband Internet and Entertainment (
Cine Channel (CCC))
 Over 150+ channels at its entity
 Like Tata Sky, Hathway has its part of broadcasting services with News Corporporation
 For more information visit: http://www.hathway.com/

7.6. DEN Networks Ltd.,

 Delhi-based company is now a leading cable television company with a pan-India presence.
 Within a short span of 2 years, it has spread its reach to 1 crore households across 77 cities, mainly by
buying out smaller cable TV operators
 The MPA Report 2009 estimates that its cable television services have reached approximately 10 million
homes and that they had 300,000 digital cable television subscribers as of December 2008.
 In analog DEN delivers 100 channels, while the digital offering , Digitelly, comprises over 180 channels
and other value added and interactive services. DEN proposes to migrate a significant majority of analog
consumers to digital environment
 For more information visit: http://dennetworks.com, http://www.digitelly.in/

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 7.7. Arasu Cable TV Corporation Ltd.

 A government of Tamil Nadu undertaken

 Now the service is free (FTA) and they are planning to get 5million set top boxes in two or three years.
 They have started their services in Thanjavur (Tamil Nadu) but yet to roll out their services in other parts
of Tamil Nadu.
 For more information visit: http://www.elcot.in/arasucable/homeMore.html

7.7 SCV (Sumangali Cable Vision) a Sun TV group

 A venture of Sun Network, India's largest media conglomerate with the reach of more than 95 million
households in India
 Offering over 150 channels to its subscribers in Chennai and Coimbatore
 For more information visit: http://www.sunnetwork.org/scv/

8. Market Trend Predictions

Subscribers are new to the cable TV, Satellite & IPTV war. By the time they understand the advantages of each
solution we can assure that the users would turn to the most effective and affordable solution. Which means cable can
regain the customer base even if the DTH & IPTV craze has market for next couple of years.

Cable market is in need of leaders to build hardware and software solutions

While there are varying estimates that, who will capture the digital arena in next five years, it is quite clear that there
will be an even battle between Digital Cable & DTH while IPTV will begin its mark in a couple of year’s time.

A few things are assured in the Indian television industry even in the face of paradigm shifts. 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 & Cable TV is here to stay and will play role
in bringing television to mass around the world.

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10. Bibliography

 Telecom Regulatory Authority of India: http://www.trai.gov.in

 Ministry of Information and Broadcasting: http://mib.nic.in/
 Doordarshan India: http://www.ddindia.com
 Zee Television Corporation (A Zee Network): http://www.zeetelevision.com
 The Financial Express: http://www.financialexpress.com/
 Satellite & Cable TV: http://www.scatmag.com
 News Corporation: http://www.newscorp.com
 Digital Video Broadcast: http://www.dvb.org
 Electronics Corporation of TamilNadu: http://www.elcot.in
 ITV (Indian Television): http://www.indiantelevision.com/

-------------------------------------------------THANK YOU-----------------------------------------------------

By Karthick Sekar
18 MAY 2010

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