The remaining channels will form part of the DTO package in the second phase of operations which will be around June-July. The network will have a minimum bouquet of 11 channels by then with the launch of the two English channels and the Gujarati channel in February.

Zee is also negotiating with foreign channels which it wants to distribute in the country. It has already roped in Nickelodeon, a kid's channel from the Viacom stable. The additional channels, if roped in, will be brought under the DTO package in the second phase.

"We have not decided yet which of the channels will be offered in the first lot," Singh said.

Zee is creating its own subscriber management system and conditional access. "We are continuing with Star TV at the moment. But we will be ready with our system before we launch ourDTO service," Singh said.

The network is also examining the possibility of changing the name of Music Asia to Zee Music. "We may bring it under the Zee brand. There may be no need for a stand-alone brand," Singh said. The network has introduced two brands in the market - Zee and Alpha (for the regional channels).

Zee's DTO service, which was scheduled for launch in mid-November, has been delayed due to technological reasons. "The tests are going on. We are also being content ready," said Singh.

Zee is yet to obtain the ministry clearance for uplinking from Noida in Uttar Pradesh. But it can uplink from Singapore and Hong Kong. "This is not the reason for delay," Singh said.

Zee is yet to have a proper pricing for the Nickelodeon channel and is test marketing the product. "We have a limited supply of decoders. We are soon sorting out that problem. We will come to an adequate pricing policy as we get the decoders," Singh said.

Zee will package its channels and have a slab-based pricing structure. Thechannels will be exclusive to the package but not to any cable network.E-Connect, Zee's wholly-owned subsidiary, will launch its Internet service in Bangalore, Mumbai and Delhi in February. "We will go to five new cities in March. But it could be dial-up or cable modem. We have not decided yet," Singh said.

Zee, which was the first media empire to be built on convergence technologies, wants to exploit its assets in content creation and ground distribution. It has already made an entry into all forms of media. "With the prospects of convergence happening, we will be able to further consolidate and expand our cable network," said Singh.