IPTV likely to eat into DTH market

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Mumbai, Jun 27 : The new kid on the block, IPTV or Internet Protocol television, could prove to be a serious threat for direct-to-home (DTH) companies, say industry players, but given the low speed penetration of broadband in the country, DTH players argue otherwise.

Recently, Aksh Optifibre rebranded its IPTV business as I-Control and has launched its services extensively in both Mumbai and Delhi (through Bharat Sanchar Telephone Nigam). The MTNL I-Control subscription is Rs 199 for Delhi with 120 channels including Sony Television, Star Television, Zee Television and so on. The subscription for Mumbai is Rs 100 which includes 100 channels and the company will soon increase the number. The company also plans to enter Northern India including Himachal Pradesh, Rajasthan, Haryana , Jammu and Kashmir and so on. Analysts feel that considering the low tariff plan that Aksh is offering, they may soon eat into the DTH business and not so much of the cable business.

Devi Prasad Ghosh, vice-president, marketing, Wire and Wireless India Ltd (WWIL), said, “Even cable operators have packages as low as that and so I do not think cable operators are really threatened. IPTV doesn’t have high speed penetration in this country and that will happen only with the broadband penetration.” WWIL is also planning to get into the IPTV business but that is at least 5-6 years away. “I think IPTV will eat up into the DTH area,” said Ghosh.

But DTH players are not wary about it. Jawahar Goel, managing director, Dish TV said that DD Direct is already showcasing 50 channels and 20 radio stations for free. They will soon increase it to 70 channels and 22 radio stations. Dish TV has a Rs 100 tariff plan which includes 80 channels. “So if it is the free-to-air channels that everybody is showing then it won’t affect our business,” said Goel.