tech_genie
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Budget hopes: Make set-top boxes cheaper
Cable infrastructure providers and DTH players, who have seen demand for set-top boxes shoot up, want more benefits in the Budget. Hathway Cable, Den Networks, Dish TV, Tata Sky, Airtel Digital TV and Videocon, among others, pay a 5 per cent customs duty on set-top boxes and want this to be brought down to nil.
Most of these boxes are imported and the demand for this equipment has risen after the telecom regulator mandated digitisation of cable networks for the metros and 30 large cities.
The deadline for the former has already passed, while the latter is slated for March this year.
Cable operators are targeting more than 20 million subscribers, who currently receive analogue TV signals, on the back of the digitisation mandate which would bring in substantial demand for set-top boxes.
If the proposal to cut customs rate is accepted in the Budget, subscriber acquisition cost, which ranges from Rs 2,200 to Rs 2,500 across players, would come down significantly. After the cancellation of 2G licences by the Supreme Court and a failed auction of spectrum, the Government has fallen short in its attempt to raise Rs 40,000 crore in revenues from telecom players. Auctions have raised only Rs 9,400 crore.
Top players such as Bharti Airtel and Vodafone bid selectively, while Idea Cellular bid only for those circles where its licences were cancelled.
Many new players, such as Uninor, Sistema and Videocon, among others, would terminate operations.
Fresh attempts to raise money will be made next fiscal, with the targets laid down in the Budget.
But though the base price has now been reduced for the 2G airwaves, it is unlikely that incumbent players, who are smarting under the heavy sums they paid for the 3G auction, would oblige.
The newer players too may bid selectively as the top 5-6 operators already corner most of the subscriber and revenue market share, leaving little scope for players who make up the bottom of the pile.
Source: Business Line : Features / Investment World : Budget hopes: Make set-top boxes cheaper
Cable infrastructure providers and DTH players, who have seen demand for set-top boxes shoot up, want more benefits in the Budget. Hathway Cable, Den Networks, Dish TV, Tata Sky, Airtel Digital TV and Videocon, among others, pay a 5 per cent customs duty on set-top boxes and want this to be brought down to nil.
Most of these boxes are imported and the demand for this equipment has risen after the telecom regulator mandated digitisation of cable networks for the metros and 30 large cities.
The deadline for the former has already passed, while the latter is slated for March this year.
Cable operators are targeting more than 20 million subscribers, who currently receive analogue TV signals, on the back of the digitisation mandate which would bring in substantial demand for set-top boxes.
If the proposal to cut customs rate is accepted in the Budget, subscriber acquisition cost, which ranges from Rs 2,200 to Rs 2,500 across players, would come down significantly. After the cancellation of 2G licences by the Supreme Court and a failed auction of spectrum, the Government has fallen short in its attempt to raise Rs 40,000 crore in revenues from telecom players. Auctions have raised only Rs 9,400 crore.
Top players such as Bharti Airtel and Vodafone bid selectively, while Idea Cellular bid only for those circles where its licences were cancelled.
Many new players, such as Uninor, Sistema and Videocon, among others, would terminate operations.
Fresh attempts to raise money will be made next fiscal, with the targets laid down in the Budget.
But though the base price has now been reduced for the 2G airwaves, it is unlikely that incumbent players, who are smarting under the heavy sums they paid for the 3G auction, would oblige.
The newer players too may bid selectively as the top 5-6 operators already corner most of the subscriber and revenue market share, leaving little scope for players who make up the bottom of the pile.
Source: Business Line : Features / Investment World : Budget hopes: Make set-top boxes cheaper
