DTH services will bring an era of competition for cable TV operators and force them to improve quality. Users will have access to high quality programming on pay channels while persons in far-flung areas where cable operators are yet to reach will be able to use the dish antennas for receiving channels.
After a long pause, the Union Cabinet (government of India) has finally approved the much-awaited DTH (Direct-to-Home) broadcasting service. The service will become a reality in India in coming months. Without going deep into the notification issued by the government, let us answer the queries that may have popped up in your mind.
Q. What exactly is DTH?
A. DTH (direct-to-home) basically is a distribution platform for multichannel TV programmes on Ku (high frequency of 11.7 to 14.55 Gigahertz) band by using a satellite system that will be transmits directly to subscriber premises.
Q. What is the difference between Ku-band and the present form of cable transmission in India?
A. The basic difference between Ku-band and the present C-band transmission (3.4 to 6.65 GHz.) lies in the fact that Ku-band signals require a very small dish antenna of 30 to 48 cm (12 to 18 inch) diameter while lower C-band requires a large dish antenna of 2.4-to 4.9 metre (8 to 16 feet) diameter. The Ku-band DTH service offers greater and direct connectivity to the viewer providing over 100 channels through a small dish antenna, doing away with intermediaries like cable operators. Moreover, this will have a better control over the revenue.
Q. What is the USP (unique selling point) of the service?
A. The subscribers can directly receive and view an array of channels available globally, doing away with intermediate cable-operators.
Q. Is the direct-to-home broadcasting legal in India?
A. After the removal of the existing three-year ban DTH broadcasting has been made legal from November 3, 2000 in India. The government has approved the service, reversing the 1997 prohibition of instituting measures for regulation of content and prevent monopoly.
Q. What will be the cost for an end-user?
A. The users will not have to pay much to view channels of their interest. A nominal investment of approximately Rs25,000 will link them to the multi-channel platform. This will include a pizza-sized 30 to 48 cm (12 to 18 inch) dish antenna for Rs.10,000 along with the TV set-top box, a digital decoder, for Rs. I5,000. Users will be provided with 'channel cards' which will act as pre-paid debit cards.
Q. What amount a subscriber will have to pay for the service?
A. All channels will be 'pay' channels and the subscriber will have to pay the fee to the service provider. Since DTH is now legal in India, the companies will recover the cost from the revenue accumulated via the 'channel cards'.
Q. What is the entry fee for DTH?
A. The applicants are bound to pay an initial deposit of Rs. 100 million beside Rs. 400 million as the bank guarantee for a licence from the government to provide DTH service. Out of this a minimum of ten percent of the total revenue collected by the platform owner will be shared with the government.
Q. Do we have the same investment policy for the foreign applicants?
A. Foreign investment in DTH companies has been capped at 49 per cent, which includes 20 per cent foreign direct investment. NRIs, FIIs and OCBs can invest up to 29 per cent. Broadcast and cable companies cannot own more than 20 per cent equity.
Q. What are the other terms and conditions that need to be followed?
A. The licencee will have to establish the uplink Earth Station in India within 12 months of issue of licence. It is mandatory for all the DTH service providers to get registered under the Indian Company Act (ICA) and the Indian Management Control (IMC) with majority representatives from the Indian board. The CEO should be an Indian resident. The companies will have to preserve the recordings for at least 90 days so that any complaint filed could be checked out.
Q. How many and for how long will the licence be issued?
A. At present there exists no restriction on the number of licences issued by the I&B (Information and Broadcasting) ministry for a period of ten years. Thus the licence issued will need to be renewed only after ten years from its issue date.
Q. Who all will be the DTH broadcasters?
A. From the current indications it appears that other than Doordarshan the other TV broadcasters such as Star TV, Zee TV, ESPN etc., are keen to join the direct-to-home bandwagon. But this will be subject to the regulatory supervision on the account of security concerns.
Q. What will happen if a broadcaster violates DTH notification?
A. In case of violation of rules, apart from the cancellation of licence issued the company will have to shell out a penalty of Rs. 500 million.
Q. What is the future of the DTH broadcasting in India?
A. Its too premature to comment on the conditions prevailing but it is true that DTH is definitely a step towards convergence. DTH has definitely got more power than Pokhran.
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