The DTH industry has the potential to grow, provided Isro releases more Ku-band
The growth in regional language channels and the number of players in the DTH market — six at the last count — has increased the demand for more Ku band (Kurtz-under band, which is mainly used for satellite telecast). In this context, Antrix Corporation, the marketing arm of Isro, had planned to lease transponder capacities (full or partial) on foreign satellites for Indian users. A request for proposal was floated in December 2014 to look for space segment capacity, from non-Isro sources.
Ball in Isro’s court
Recent studies on satellite capacity by various industry bodies stressed on the ‘Open Sky’ policy, citing Isro’s inability to keep pace with the demand for transponders from DTH players. That said, if Isro or Antrix can work out bandwidth availability with a foreign satellite provider whose satellite has been coordinated with Isro, DTH operators can receive transponder space fast and easy.
This is important especially in the context of Prime Minister Narendra Modi’s vision of Digital India. And that means business as well. The increase in TV and paid TV (via DTH) penetration, along with the growth in advertising revenues, is expected to boost the television industry. Additional growth drivers such as increasing regionalisation of content and FDI (subject to policy) will lead to further expansion in the number of TV channels in India. There is no doubt that India is a rich market for satellite TV services.
With ineffective cable competition and lack of terrestrial alternatives, DTH players have a great opportunity to build strong, sustainable businesses. With these driving factors, India has the potential to accommodate more than 1,500 licensed channels by 2017; of these, 80-90 per cent are expected to be operational soon.
An important indicator of the latent demand is the high number of TV license requests pending approval with the ministry of information and broadcasting — 300 and growing. Also, in line with other international markets and technology development, the adoption of high definition (HD) channels is expected to increase in the country.
The ramp-up in demand for Ku-band capacity used by Indian DTH operators is expected to be high, driven by their need to match digital cable operators and accommodate more HD channels. Very soon there will be pressure on operators to launch ultra high definition (UHD 4K) services and thus more demand for bandwidth. Thus, the minimum number of primary Ku-band satellite transponders required by the Indian DTH players is expected to rise to over 250 (including higher regional content channels) in the coming years. In this context, it is unlikely that any single satellite operator will be able to fulfil immediate or future demand for satellite capacity.
Challenges and constraints
There are challenges placing practical restrictions on leasing transponder capacity from foreign satellite operators. Key hurdles include procedural requirements, and short contract durations, leading to uncertainty for both Indian players and outside investors such as satellite operators. From the point of view of Indian DTH players, short contract durations with satellite operators is not a technically and commercially viable solution.
The capacity crunch in DTH as a result of supply bottlenecks could restrict the launch of local regional channels and special interest pay channels, leading to constrained consumer choice. Ku-band capacity constraints can lead to distortion of competitive balance: DTH players would not be able to match the channel counts of digital cable operators; it is also possible that many channels would not be carried by DTH operators, weakening business for them.
There is a need to look at the use of the full spectrum of the available frequencies in the so-called fixed-satellite service and broadcasting satellite service bands. Complimentary measures include endorsing Indian DTH operator agreements with the transponder operator to lease additional space, lengthening the terms of satellite transponder lease contracts, improving publicly-available market information from the government and ensuring adequate availability for coverage across the country.
G TIRUMALA RAO
The writer is a former ISRO scientist
Satellite telecast cramped for bandwidth | Business Line
The growth in regional language channels and the number of players in the DTH market — six at the last count — has increased the demand for more Ku band (Kurtz-under band, which is mainly used for satellite telecast). In this context, Antrix Corporation, the marketing arm of Isro, had planned to lease transponder capacities (full or partial) on foreign satellites for Indian users. A request for proposal was floated in December 2014 to look for space segment capacity, from non-Isro sources.
Ball in Isro’s court
Recent studies on satellite capacity by various industry bodies stressed on the ‘Open Sky’ policy, citing Isro’s inability to keep pace with the demand for transponders from DTH players. That said, if Isro or Antrix can work out bandwidth availability with a foreign satellite provider whose satellite has been coordinated with Isro, DTH operators can receive transponder space fast and easy.
This is important especially in the context of Prime Minister Narendra Modi’s vision of Digital India. And that means business as well. The increase in TV and paid TV (via DTH) penetration, along with the growth in advertising revenues, is expected to boost the television industry. Additional growth drivers such as increasing regionalisation of content and FDI (subject to policy) will lead to further expansion in the number of TV channels in India. There is no doubt that India is a rich market for satellite TV services.
With ineffective cable competition and lack of terrestrial alternatives, DTH players have a great opportunity to build strong, sustainable businesses. With these driving factors, India has the potential to accommodate more than 1,500 licensed channels by 2017; of these, 80-90 per cent are expected to be operational soon.
An important indicator of the latent demand is the high number of TV license requests pending approval with the ministry of information and broadcasting — 300 and growing. Also, in line with other international markets and technology development, the adoption of high definition (HD) channels is expected to increase in the country.
The ramp-up in demand for Ku-band capacity used by Indian DTH operators is expected to be high, driven by their need to match digital cable operators and accommodate more HD channels. Very soon there will be pressure on operators to launch ultra high definition (UHD 4K) services and thus more demand for bandwidth. Thus, the minimum number of primary Ku-band satellite transponders required by the Indian DTH players is expected to rise to over 250 (including higher regional content channels) in the coming years. In this context, it is unlikely that any single satellite operator will be able to fulfil immediate or future demand for satellite capacity.
Challenges and constraints
There are challenges placing practical restrictions on leasing transponder capacity from foreign satellite operators. Key hurdles include procedural requirements, and short contract durations, leading to uncertainty for both Indian players and outside investors such as satellite operators. From the point of view of Indian DTH players, short contract durations with satellite operators is not a technically and commercially viable solution.
The capacity crunch in DTH as a result of supply bottlenecks could restrict the launch of local regional channels and special interest pay channels, leading to constrained consumer choice. Ku-band capacity constraints can lead to distortion of competitive balance: DTH players would not be able to match the channel counts of digital cable operators; it is also possible that many channels would not be carried by DTH operators, weakening business for them.
There is a need to look at the use of the full spectrum of the available frequencies in the so-called fixed-satellite service and broadcasting satellite service bands. Complimentary measures include endorsing Indian DTH operator agreements with the transponder operator to lease additional space, lengthening the terms of satellite transponder lease contracts, improving publicly-available market information from the government and ensuring adequate availability for coverage across the country.
G TIRUMALA RAO
The writer is a former ISRO scientist
Satellite telecast cramped for bandwidth | Business Line
