Reliance DTH

Reliance Comm aims at leading DTH market

Reuters

Reliance Communications Ltd said on Tuesday its new satellite television operation can grab a market-leading 40 percent share in a year on expected strong overall demand for direct-to-home (DTH) services.

Big TV, launched on Tuesday by India's second-biggest mobile services provider, will compete with Dish TV, state-owned Prasar Bharti's DD Direct, Sun TV's DTH arm and Tata Sky, a venture of the Tata Group and News Corp.

Top mobile operator Bharti Airtel Ltd and Videocon Industries Ltd also aim to enter the market, which is forecast to expand to 25 million subscribers by 2012, according to research firm Media Partners Asia.

"There is a huge opportunity, as less than 5 percent of all TV homes in India are DTH," Big TV chief executive Arun Kapoor told a news conference, saying the sector should add 11-12 million subscribers over the next year to its current base of around 6 million.

"As more players enter, the market will grow and there is enough room for everyone to grow profitably."

While there was opportunity in urban markets that have a high penetration of cable TV, the real growth would be in smaller towns and villages that lack cable services, Kapoor said. Reliance Communications will also launch Internet Protocol TV shortly.

Big TV will initially roll out in 6,500 towns, offering a set-top box and three-month subscription for 1,490 rupees ($34). Kapoor said the bulk of Big TV's initial costs would be subsidising set-top boxes, without specifying details.

Revenues for the India's television industry are expected to more than double over the next four years, but price controls and regulations such as content-sharing for DTH operators will cap profits and force consolidation, Media Partners Asia has said.

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Source: http://www.dishnews.info