Consumer verdict: DTH, way ahead of digital cable

SERVICE OVER PRICE: Consumers seem to have given their verdict to demystify the digital cable versus DTH debate.

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Keywords: Consumers, Service

New Delhi: Consumers seem to have given their verdict to demystify the digital cable versus DTH debate.

The consumers choose service over price. DTH, which requires an initial investment of about Rs 3000 is way ahead of digital cable, which has an activation charge of just Rs 250 and a monthly rent of Rs 200-300.

Since January 2007, digital cable has managed to convert about 15 lakh subscribers to go the set-top box way, whereas the two private DTH players, Tata Sky and Dish TV have together got more than 40 lakh subscribers.

“We have invested about Rs 250 crore in educating the consumers,” says Jawahar Goel, MD, Dish TV.

Where the DTH industry is adding more than 2 lakh customers month on month, CAS through digital cable is seeing additions of only 5000 subscribers every month.

However, soon there will be another digital option to choose from, HITS (Headend In The Sky). It is a satellite based digital platform, with several add-on features. It will enable its consumers to watch their favourite soaps at a time convenient to them, pay per view and even block programming by title channel or rating. However, it’s basic objective is the digitalization of cable tv network across the country.

TRAI has already sent its recommendations on the policy and licensing framework for HITS to the I&B Ministry. However, one has to see if government can create enough digital action in 2008.

TRAI recommendations: HITS operator will provide digital signals of TV channels only to the registered MSOs/cable operators and not directly to subscribers. To enable fast digitalization of cable services, no restrictions regarding transmission frequency band for HITS operation should be imposed. Uplinking from outside India should also be permitted at the option of HITS operator. Foreign investment upto 74% recommended in line with the telecom sector. Entry fee of Rs 10 crores and minimum net worth requirement of Rs 40 crores have been recommended to ensure that only serious players get HITS license. Condition for rolling out the service within a period of one year is recommended.