RE: TRAI may regulate HD channels'subscription charges
sagar.patnaik said:
This is to Prateek1987,
Since you are not aware about the DTH Industry, I ll tell you why companies are in red. Mods can come up if I am wrong anywhere.
Lets discuss the cost of acquiring a customer.
Set top Box - $18(Rs 1150)
Antenna - Rs 350
LNB - Rs 250
Cable - Rs 100
Installation - Rs 150
Total - Rs 1900
They give you one month free subscription .
They charge u Rs 999. So straight Rs 900 loss at the time of acquiring a subscriber in todays market scenario. I hve not included logistics.
DTH companies have to pay entertainment tax, MSOs dont pay. 10% as license fee which MSOs dont pay. They pay to acquire tp sapace in satellites which msos dont.
I would suggest you to read some articles before jumping the gun. If you think cable wala cheating is good then i cannot explain it to you and the companies are not running a charity. People who want free entertainment can chose DD free dish. People who can afford a little less they hve cheaper packs. Dont ask Mercedes to to cut prices coz poor people can pay for nano.
dude which dth new connection is at rs. 999 first u shud get ur facts right n accurate. cost of acquiring is if 1900 rs then who is paying 900 rs. loss as i have checked each n every dth website no one is asking to pay rs. 999. u r wrong or else gimme a dth company name in which i can get a new connection at just rs. 999.
secondly have u heard any thing about subsidies as dth companies are getting subsidies from the govt. but mso r not allowed to take i.e. y the cost of each stb in mso r much higher as compare to dth companies stbs.
dth hd stb is at around 2000rs but mso r asking for more than 4000 rs for hd set top boxes n also every stb is need to be replaced within couple of years.
very cheap quality stbs.
second tell me y there is no portability if they r honest n they have dignity as well as integrity towards its customers as well as to the nation so they shud have agreed to the portability as mobile companies were agreed at the start of the millennium.
they don't provide that option to its customers y?????
each n every dth minimum plan is at 230 rs. / month but services r different so there r more than 75% probability that their customers r not getting their value for money.
third for ur kind information i am a finance guy who understands things very well. so tell me dish tv always reported their quarterly results n they have been in loss since the inception. after nearly abt ten years of its incorporation they will take atleast another couple of years to touch the break even point.
so who asks other dth companies to come n join n become a part of the race because for the 2nd onwards u always have the 1st to judge whether the industry is gud or not.
every dth must have done their calculations b4 coming n participating in the race.
they r the national companies so they r working on a pan india level i still cudn't understand y they come forward n want to avail losses rather than reaping profits.
forthly bro du u know their are hire purchase rule also, rent rule also so any customer can avail any offer if he wants to pay on hire basis or rent basis he can choose that also.
n lastly entertainment tax is being levied by state govts so whether u r a
dth or mso u have to pay the entertainment tax n service tax is being charged by the central govt.
e.g. i live in delhi ncr area in u.p.
i m paying both the taxes to den. if u have any doubt google it out or call to den network cc they will help to get u understand.
thats y i m saying if they r not doing any charity then y the hell they r in loss.
its better to have all the information b4 putting .............
