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The recently launched Digitization and
Mobility: Next frontier of growth for M&E ,
report by Deloitte states, “One year into the
implementation of digitisation, the cable and
broadcast sector is still trying to iron out
creases and get systems in place. The key goal
of digitisation was addressability, which was
expected to plug leakages in the system. While
cable subscribers have been increasing,
rampant under-declaration meant, Multi-
System Operators (MSOs) that transmitted the
signals to cable operators earned little from
the large subscriber base.”
In 2014, Deloitte predicts that the digital TV
distribution space – both digital cable and
Direct-to-Home (DTH) would find ample room
for growth given the catalysing effect of
digitisation and the headroom for growth
provided by non-TV households in the country.
The report prepared for the ASSOCHAM annual
M&E meet says about 12 million set-top boxes
have been seeded and 80 per cent consumer
application forms have been received as of
December 2013. The Telecom Regulatory
Authority of India (TRAI) claims 100 per cent
digitisation in DAS phase II.
TRAI has also said recommendations on the
new DTH licences would be brought out very
soon.
HITS licenses which have been issued to two
players, is expected to enable digitisation in
phase III and phase IV markets.
Meanwhile, the report notes, “Complaints have
poured in against set-top boxes. People in the
city are complaining about digital set-top
boxes installed in their houses and offices.
Visual and sound disturbances coupled with
channels going off air from time to time have
left viewers unhappy.”
It also notes that “in the haste to install set-
top boxes in the city, cable operators have
overlooked a crucial step - that of filling in the
Cable Access Form (CAF) before installation of
the device. The purpose behind mandating DAS
was to identify the actual number of cable
viewers in the country. But with most
customers not filling in the form, the purpose
still remains defeated.”
“With penetration of TV in India standing at
approximately 65 per cent, at present, the
country has close to 80 million non-TV
households, which presents a key opportunity
for the television distribution players. This low
level of penetration holds a great potential for
players to increase their subscribers and
revenues. Drivers such as rising incomes,
decreasing household size, multi TV
phenomenon and rising urbanisation would
only provide a further fillip.”
Noting that the government’s digitisation
mandate is “slowly but steadily progressing
towards its target,” the report says the
television distribution space is abuzz with
prospects, albeit it would call for investments
and improvements, especially from the digital
cable players. All metros except Chennai have
been largely digitised and the phase II of
digitisation, which covers 38 cities, is also
nearing completion. Phase III and IV of
digitisation targets December 2014 for their
completion. This would mean digitisation of
additional 40 to 50 million households in the
balance towns.”
The report also says that phase III aims to
focus on digitisation of all urban areas
(municipal areas). Given the extensive coverage
of MSOs and LCOs in such areas, digital cable
is expected to make the most in the relatively
densely populated areas, notwithstanding the
churn of subscribers to DTH. In the first phase
of digitisation, DTH operators were able to
grab 20 per cent of subscribers converting
them from analog to digital.
Phase IV aims to focus on digitisation for the
rest of India, which predominantly aims at
rural areas and tier II cities. DTH is expected
to gain the most in areas with sparse
population and inadequate cable infrastructure.
Digitisation phases, scope and affected
subscribers
Digitisation phase Scope
Subscribers affected (million)
Phase I Delhi, Mumbai,
Kolkata, Chennai 8-10
Phase II All cities with
population > 1 million 12-14
Phase III All urban areas
(Municipal areas) 30-35
Phase IV Rest of India
22-25
Source: Industry discussions
DTH, as a sector, had started off by
concentrating on rural areas, which were
deprived of cable infrastructure and gradually
also entered the urban markets. However, they
are still strong in rural markets.
Given the complexity of the exercise across the
country and the rate at which television
penetration is growing (MPA expects India to
have 183 million pay-TV homes by 2020); the
scale of undertaking of digitisation will be a
big challenge.
But it says analysts and sector professionals
agree the future looks promising with the
lessons learnt from phases I and II. Digitisation has failed to show increase in ARPUs: Deloitte | Indian Television Dot Com
Mobility: Next frontier of growth for M&E ,
report by Deloitte states, “One year into the
implementation of digitisation, the cable and
broadcast sector is still trying to iron out
creases and get systems in place. The key goal
of digitisation was addressability, which was
expected to plug leakages in the system. While
cable subscribers have been increasing,
rampant under-declaration meant, Multi-
System Operators (MSOs) that transmitted the
signals to cable operators earned little from
the large subscriber base.”
In 2014, Deloitte predicts that the digital TV
distribution space – both digital cable and
Direct-to-Home (DTH) would find ample room
for growth given the catalysing effect of
digitisation and the headroom for growth
provided by non-TV households in the country.
The report prepared for the ASSOCHAM annual
M&E meet says about 12 million set-top boxes
have been seeded and 80 per cent consumer
application forms have been received as of
December 2013. The Telecom Regulatory
Authority of India (TRAI) claims 100 per cent
digitisation in DAS phase II.
TRAI has also said recommendations on the
new DTH licences would be brought out very
soon.
HITS licenses which have been issued to two
players, is expected to enable digitisation in
phase III and phase IV markets.
Meanwhile, the report notes, “Complaints have
poured in against set-top boxes. People in the
city are complaining about digital set-top
boxes installed in their houses and offices.
Visual and sound disturbances coupled with
channels going off air from time to time have
left viewers unhappy.”
It also notes that “in the haste to install set-
top boxes in the city, cable operators have
overlooked a crucial step - that of filling in the
Cable Access Form (CAF) before installation of
the device. The purpose behind mandating DAS
was to identify the actual number of cable
viewers in the country. But with most
customers not filling in the form, the purpose
still remains defeated.”
“With penetration of TV in India standing at
approximately 65 per cent, at present, the
country has close to 80 million non-TV
households, which presents a key opportunity
for the television distribution players. This low
level of penetration holds a great potential for
players to increase their subscribers and
revenues. Drivers such as rising incomes,
decreasing household size, multi TV
phenomenon and rising urbanisation would
only provide a further fillip.”
Noting that the government’s digitisation
mandate is “slowly but steadily progressing
towards its target,” the report says the
television distribution space is abuzz with
prospects, albeit it would call for investments
and improvements, especially from the digital
cable players. All metros except Chennai have
been largely digitised and the phase II of
digitisation, which covers 38 cities, is also
nearing completion. Phase III and IV of
digitisation targets December 2014 for their
completion. This would mean digitisation of
additional 40 to 50 million households in the
balance towns.”
The report also says that phase III aims to
focus on digitisation of all urban areas
(municipal areas). Given the extensive coverage
of MSOs and LCOs in such areas, digital cable
is expected to make the most in the relatively
densely populated areas, notwithstanding the
churn of subscribers to DTH. In the first phase
of digitisation, DTH operators were able to
grab 20 per cent of subscribers converting
them from analog to digital.
Phase IV aims to focus on digitisation for the
rest of India, which predominantly aims at
rural areas and tier II cities. DTH is expected
to gain the most in areas with sparse
population and inadequate cable infrastructure.
Digitisation phases, scope and affected
subscribers
Digitisation phase Scope
Subscribers affected (million)
Phase I Delhi, Mumbai,
Kolkata, Chennai 8-10
Phase II All cities with
population > 1 million 12-14
Phase III All urban areas
(Municipal areas) 30-35
Phase IV Rest of India
22-25
Source: Industry discussions
DTH, as a sector, had started off by
concentrating on rural areas, which were
deprived of cable infrastructure and gradually
also entered the urban markets. However, they
are still strong in rural markets.
Given the complexity of the exercise across the
country and the rate at which television
penetration is growing (MPA expects India to
have 183 million pay-TV homes by 2020); the
scale of undertaking of digitisation will be a
big challenge.
But it says analysts and sector professionals
agree the future looks promising with the
lessons learnt from phases I and II. Digitisation has failed to show increase in ARPUs: Deloitte | Indian Television Dot Com
