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As the June 30 deadline for the first phase of mandatory digitisation in metros draws closer, several multi-system operators are clamouring for extension.
The buzz is that the Government may extend the deadline by a few weeks. “I do not see any reason why,” says Mr Harit Nagpal, President, DTH Operators Association of India, saying that the perception he got from his discussions with TRAI and the Ministry of Information and Broadcasting, was that the deadline was sacrosanct. Excerpts from an interview:
Is the DTH industry fully geared up to the challenge of digitising all metro homes in the next 30-plus days?
Yes, 100 per cent. As I see it, there is no problem from the infrastructure perspective. All of us have national footprint with necessary infrastructure – be it the distribution network or the back-end infrastructure, which was developed over the last several years.
Is there enough awareness among people about mandatory digitisation?
Now, one cannot watch any television channel for fifteen minutes without seeing an ad on ‘digitisation'. All of us have stepped up our campaign and it pays.
Market reports tell us that 80 per cent of the households are aware of the fact that they have to switch to digital mode.
But you had said that there was no remarkable growth in subscriber addition in the last two months?
Yes. Despite our efforts, we know… that people are going to wake up on July 1 and say we want a set-top box immediately. We expect that. And, extending the deadline is not going to change this behaviour.
Given that there are 6 million analogue homes in the four metros, is it physically possible to digitise all homes in such a short time period?
First of all, there is no clear figure so far. The number of cable TV homes has always been an under declared thing in this market. Assuming that there are more than six million analogue households, we are well equipped with necessary manpower, set-top boxes and other equipment.
But, if all of them wake up on July 1 and say I want one, then it will be a problem. But, all of us are recruiting more people for installation and other works and expanding distribution network too.
Is that on a temporary basis?
No. We anyway need manpower to provide after-sales service to the increased subscriber base. July 1 is only the first phase of it. By the end of 2013, more than 38 cities are to be covered and the rest of India, by December 2014.
How long will it take for a person to get a DTH connection installed?
Maximum four hours.
Do you see another round of price war in the DTH industry?
No. There is enough room for all of us to grow. Moreover, the weakening rupee has increased our cost of acquisition by around 20 per cent. So, I do not foresee any price war.
We have been hearing that cable operators are planning to offer all channels for around Rs 250 a month. Would DTH industry be able to compete with them?
If anybody can offer all the channels for a particular price, we can also do it.
So, can we expect cheaper packages from DTH players?
I do not want to give irrational hopes. In this case, I cannot speak on behalf of other players in the industry. As the Managing Director of Tata Sky, I would say that if some cable operators can afford to offer lower prices, so can we.
If we cannot, no one can, on a sustainable basis. The only difference is that DTH pays a 10 per cent license fee which the MSOs don't. However, they have a revenue share with the LCOs, which more than compensates for that.
http://www.thehindubusinessline.com/industry-and-economy/marketing/article3476872.ece?homepage=true&ref=wl_home
The buzz is that the Government may extend the deadline by a few weeks. “I do not see any reason why,” says Mr Harit Nagpal, President, DTH Operators Association of India, saying that the perception he got from his discussions with TRAI and the Ministry of Information and Broadcasting, was that the deadline was sacrosanct. Excerpts from an interview:
Is the DTH industry fully geared up to the challenge of digitising all metro homes in the next 30-plus days?
Yes, 100 per cent. As I see it, there is no problem from the infrastructure perspective. All of us have national footprint with necessary infrastructure – be it the distribution network or the back-end infrastructure, which was developed over the last several years.
Is there enough awareness among people about mandatory digitisation?
Now, one cannot watch any television channel for fifteen minutes without seeing an ad on ‘digitisation'. All of us have stepped up our campaign and it pays.
Market reports tell us that 80 per cent of the households are aware of the fact that they have to switch to digital mode.
But you had said that there was no remarkable growth in subscriber addition in the last two months?
Yes. Despite our efforts, we know… that people are going to wake up on July 1 and say we want a set-top box immediately. We expect that. And, extending the deadline is not going to change this behaviour.
Given that there are 6 million analogue homes in the four metros, is it physically possible to digitise all homes in such a short time period?
First of all, there is no clear figure so far. The number of cable TV homes has always been an under declared thing in this market. Assuming that there are more than six million analogue households, we are well equipped with necessary manpower, set-top boxes and other equipment.
But, if all of them wake up on July 1 and say I want one, then it will be a problem. But, all of us are recruiting more people for installation and other works and expanding distribution network too.
Is that on a temporary basis?
No. We anyway need manpower to provide after-sales service to the increased subscriber base. July 1 is only the first phase of it. By the end of 2013, more than 38 cities are to be covered and the rest of India, by December 2014.
How long will it take for a person to get a DTH connection installed?
Maximum four hours.
Do you see another round of price war in the DTH industry?
No. There is enough room for all of us to grow. Moreover, the weakening rupee has increased our cost of acquisition by around 20 per cent. So, I do not foresee any price war.
We have been hearing that cable operators are planning to offer all channels for around Rs 250 a month. Would DTH industry be able to compete with them?
If anybody can offer all the channels for a particular price, we can also do it.
So, can we expect cheaper packages from DTH players?
I do not want to give irrational hopes. In this case, I cannot speak on behalf of other players in the industry. As the Managing Director of Tata Sky, I would say that if some cable operators can afford to offer lower prices, so can we.
If we cannot, no one can, on a sustainable basis. The only difference is that DTH pays a 10 per cent license fee which the MSOs don't. However, they have a revenue share with the LCOs, which more than compensates for that.
http://www.thehindubusinessline.com/industry-and-economy/marketing/article3476872.ece?homepage=true&ref=wl_home
