It seems direct-to-home (DTH) operators have decoded the method to capture high volumes, which will lead to faster break even period and at the same time make DTH connections more cost effective for consumers. The DTH segment, with its latest multi dwelling unit (MDU) offering, aims to achieve both.
This service is applicable to high rise buildings, hotels and corporates. A single common dish antenna is installed for the building or the tower which cater to all the flats or rooms or offices through multi switches and amplifiers. However, each television set will get an individual set top box (STB). DTH players are tying up with real estate builders to ensure that a multi storied building can be made DTH ready by means of MDU. Given that the gestation period in the DTH business is long, operators have always said that only high volumes can bring in break even faster.
Also, MDUs are most cost-effective for multi-television homes as under this scheme, one doesn?t need to buy separate connections and can just connect the same amplifier to as many television sets. In homes which doesn?t fall under MDU services, one needs to buys separate connections for each television set.
Recently, Anil Dhirubhai Ambani Group?s (ADAG) Big TV launched its MDU offering and now Essel Group?s Dish TV is following suit. Industry experts say it becomes logistically easier for the company and aesthetically for the tenants as the terrace doesn?t get cluttered with dishes and tuning gets easier too signals are clearer and stronger.
Mahesh Prasad, president, Reliance Communications, said, ?MDUs are a natural extension of a DTH service. As part of our marketing and sales strategy, the MDU service will help generate volumes in residential clusters.?
While the size of individual DTH connection antenna is 60 cm, MDU antennas come in two sizes, 90 cm and 120 cm depending on the number of connection. For 10-12 connections 90cm antennas are used, for anything more than that, 120 cm antennas are used. The cost of installation of MDU antennas is anything between Rs 1200-1500 and is currently borne by DTH operators, who in return are getting multiple subscribers. Despite the common dish antenna being installed, each household will have the freedom to choose their own channel package including the free regional pack offered with the inaugural channel pack. Currently, DTH operators are importing these special antennas from China , Taiwan and Portugal and some from Korea .
Dish TV, which has currently 4.6 million subscribers and enjoys around 40% market share in the DTH sector, offers MDUs to only residential buildings. Salil Kapoor, COO, Dish TV, said, ?It gives us a huge number of subscribers in a single area. It is also beneficial for the builders and subscribers as they do not need to buy individual connections.? While Kapoor says that the cost of installation varies from project to project, the minimum requirement to install Dish TV MDU is 100 flats. The company has already tied with 1300 buildings including Hiranandani projects in Delhi and Sun City Heights in Gurgaon.