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LUCKNOW: Telecom Regulatory Authority of India (TRAI)'s of March 31 deadline for installing set-top boxes in 38 cities including Lucknow seems a distant dream for the city with more than half of cable viewing population yet to be provided set-top boxes.
If cable operators are to be believed, out of the total 6 lakh cable viewing households in Lucknow, less than 3 lakh have actually switched over to digital set-top boxes including the DTH. The huge gap can be filled only if operators install around 30,000 set-top boxes everyday. But the fact is that only around 3,000 set-top boxes are being daily installed in Lucknow, given the extreme shortage in supply countrywide.
Operators claim the demand across 38 cities for the device has suddenly grown manifold with the deadline approaching. The demand far exceeds the manufacturing capacity. At the moment, a large chunk is being imported from China, a minuscule percentage manufactured in India in Noida, Bangalore and Pune.
Jeevan Khanna, joint partner of Digicable Lucknow Nine and director in UP said, "Our consignments from China are taking more than 60 days to reach us while it should ideally take 40 days. Chinese companies are not able to accommodate burgeoning demand from across 38 cities in one go. Also, the excise and custom formalities in both countries take another 20 days. All these challenges are making it difficult for us to meet the deadline."
In Lucknow, two prominent players are operating in the set-top box market. One is Delhi-based 'Den' which operates through three networks BM Magic, Den Mahavir and Den Enjoy, the latter enjoying about 60% market share. The other player is Digicable Lucknow Nine.
Another difficulty faced by operators is that even after receiving set-top boxes, they are not getting activated in time. It takes just a few minutes for activation but the operators complain that recently installed boxes are taking 3-4 days for activation.
Harishankar Mishra, an operator from the Den Mahavir network, said, "I had placed an order of 5,000 boxes in early February but have received only 54 till date. Also, they take more than three days to get activated." He said the companies are taking Rs 799 (now Rs 999) as activation charges, even then the consumers are not getting pre-activated boxes and have to wait for it. "What is this money meant for if operators have to activate it at their own end and also deal with consumer complaints everyday?" questions Mishra.
The market leader Den Enjoy claimed they are not facing much difficulty in supply as they had placed a bulk order of 4 lakh units early anticipating the situation ahead. Sanjeev Dixit, JV partner with Den Enjoy said "Since March 15, we have installed around 1 lakh set-top boxes. We need 10-15 more days to complete our target after March 31." He said after the deadline, around 35% households would still be left out from getting digitised.
Cable operators had 10 days back written jointly to district administration to streamline the process while taking care of the existent demand-supply gap, to which the administration had responded by mandating a pro forma to be filed by MSOs (multiple system operators) and LCOs (local cable operators) giving supply details and also prices on which the boxes are being provided. Anil Upadhyay, president of UP cable operators welfare association, said, "As on March 6, the demand was to install more than 25,000 set top boxes everyday but today, it has risen to about 50,000 boxes, given the poor supply."
There are 6 lakh cable viewing households in Lucknow, less than 3 lakh have switched to set-top boxes till date including DTH.
Need for more than 30,000 set top boxes to be supplied everyday to meet the deadline
In reality, less than three thousand set-top boxes are being daily installed in Lucknow.
Activation is taking longer time than usual, around 3-4 days.
Operators and MSOs claim it is difficult to meet deadline as there is huge supply shortage at manufacturing end.
A large chunk of boxes are being imported from China while a minuscule percentage is being manufactured in India, Chinese companies unable to cater to burgeoning demand.
Consignment is taking around 60 days to reach India from China, excise formalities in both countries consume another 20 days.
Population of around 1 lakh in Lucknow is viewing cable through DTH connection which is about 15-20% of total cable viewing households here. With deadline approaching, buyers of DTH are gradually increasing as the cost disparity between installing an ordinary set-top box (operated through optical cable) and a DTH (receives signals through satellite) has reduced. Dealers claim that DTH is slightly expensive than an ordinary set-top box and the basic recharge of DTH is at par with monthly rental of cable operator. Hence, a lot of people now prefer DTH over normal digital connection.
Operators struggle to bridge demand-supply gap - Times Of India
If cable operators are to be believed, out of the total 6 lakh cable viewing households in Lucknow, less than 3 lakh have actually switched over to digital set-top boxes including the DTH. The huge gap can be filled only if operators install around 30,000 set-top boxes everyday. But the fact is that only around 3,000 set-top boxes are being daily installed in Lucknow, given the extreme shortage in supply countrywide.
Operators claim the demand across 38 cities for the device has suddenly grown manifold with the deadline approaching. The demand far exceeds the manufacturing capacity. At the moment, a large chunk is being imported from China, a minuscule percentage manufactured in India in Noida, Bangalore and Pune.
Jeevan Khanna, joint partner of Digicable Lucknow Nine and director in UP said, "Our consignments from China are taking more than 60 days to reach us while it should ideally take 40 days. Chinese companies are not able to accommodate burgeoning demand from across 38 cities in one go. Also, the excise and custom formalities in both countries take another 20 days. All these challenges are making it difficult for us to meet the deadline."
In Lucknow, two prominent players are operating in the set-top box market. One is Delhi-based 'Den' which operates through three networks BM Magic, Den Mahavir and Den Enjoy, the latter enjoying about 60% market share. The other player is Digicable Lucknow Nine.
Another difficulty faced by operators is that even after receiving set-top boxes, they are not getting activated in time. It takes just a few minutes for activation but the operators complain that recently installed boxes are taking 3-4 days for activation.
Harishankar Mishra, an operator from the Den Mahavir network, said, "I had placed an order of 5,000 boxes in early February but have received only 54 till date. Also, they take more than three days to get activated." He said the companies are taking Rs 799 (now Rs 999) as activation charges, even then the consumers are not getting pre-activated boxes and have to wait for it. "What is this money meant for if operators have to activate it at their own end and also deal with consumer complaints everyday?" questions Mishra.
The market leader Den Enjoy claimed they are not facing much difficulty in supply as they had placed a bulk order of 4 lakh units early anticipating the situation ahead. Sanjeev Dixit, JV partner with Den Enjoy said "Since March 15, we have installed around 1 lakh set-top boxes. We need 10-15 more days to complete our target after March 31." He said after the deadline, around 35% households would still be left out from getting digitised.
Cable operators had 10 days back written jointly to district administration to streamline the process while taking care of the existent demand-supply gap, to which the administration had responded by mandating a pro forma to be filed by MSOs (multiple system operators) and LCOs (local cable operators) giving supply details and also prices on which the boxes are being provided. Anil Upadhyay, president of UP cable operators welfare association, said, "As on March 6, the demand was to install more than 25,000 set top boxes everyday but today, it has risen to about 50,000 boxes, given the poor supply."
There are 6 lakh cable viewing households in Lucknow, less than 3 lakh have switched to set-top boxes till date including DTH.
Need for more than 30,000 set top boxes to be supplied everyday to meet the deadline
In reality, less than three thousand set-top boxes are being daily installed in Lucknow.
Activation is taking longer time than usual, around 3-4 days.
Operators and MSOs claim it is difficult to meet deadline as there is huge supply shortage at manufacturing end.
A large chunk of boxes are being imported from China while a minuscule percentage is being manufactured in India, Chinese companies unable to cater to burgeoning demand.
Consignment is taking around 60 days to reach India from China, excise formalities in both countries consume another 20 days.
Population of around 1 lakh in Lucknow is viewing cable through DTH connection which is about 15-20% of total cable viewing households here. With deadline approaching, buyers of DTH are gradually increasing as the cost disparity between installing an ordinary set-top box (operated through optical cable) and a DTH (receives signals through satellite) has reduced. Dealers claim that DTH is slightly expensive than an ordinary set-top box and the basic recharge of DTH is at par with monthly rental of cable operator. Hence, a lot of people now prefer DTH over normal digital connection.
Operators struggle to bridge demand-supply gap - Times Of India
