A ?dashing? entry into the market, tremendous initial response from consumers, emotional outbursts by cable operators, and now a lawsuit?it would not be an exaggeration if one described Sun TV Group?s foray into the direct-to-home (DTH) business as dramatic.

Sun Direct?s entry was announced two years ago, but it could be rolled out only after the successful launch of Insat-4CR early this month. The company had booked 6 Ku band transponders in the satellite.

Though the launch was anticipated, its foray on September 21 was a bolt from the blue for cable operators in the state. Priced at an attractive rate of Rs 75 a month for 75 free-to-air television channels and 15 radio channels in digital form, the package comes with a free dish and set-top box. Consumers who book before October 31, get two months? subscription free.

Sun Direct was launched throughout Tamil Nadu and consumers were asked to pay Rs 100 to book the service, with a ?window period? of six months for the equipment to be installed. The service attracted wide public interest and the switchboard of the Sun Direct office was clogged with enquiries from the public as well as dealers.

This sent a chill down the spines of cable operators because Sun Direct?s foray into the market was expected to shatter cable TV business in the state. Cable operators took to the streets. Delegates met chief minister M Karunanidhi requesting him to act in the interests of cable operators and save their livelihood.

Finally, The Tamil Nadu Cable TV Operators Association filed a lawsuit against Sun Direct on September 28, claiming that the company was putting up a fake show to squander public money. Kayal RS Ilavarasu, one of the delegates of the association, alleged, ??None of the distributors have any equipment to show to the public. Sun Direct is planning to cheat people with a false claim. Let them come out in public and display their equipment.?? Sun Direct authorities were not accessible for response to these allegations.

Obviously, cable TV operators are not philanthropists fighting for public good. The state cabinet passed a resolution in August to start the Arasu Cable TV Corporation, apparently to check subscription rates.

Allegations and protests apart, the commercial viability of Sun?s business model has also been questioned by some quarters. The company?s key competitor, Tata Sky, says as the fourth player in the market (after Dish TV, DD Direct and Tata Sky), Sun would have been forced to enter with an ??early-bird offer??. However, it has to answer questions regarding the business viability of its model, it adds.

While Tata Sky charges about Rs 3,000 for a set-top box and Rs 1,000 for installation, activation and warranty, Sun gives it for free (for customers booking before October 31). Vikram Kaushik, managing director and chief executive officer, Tata Sky, says, ??DTH players will also have to share up to 10% of their revenue with the government and pay taxes. Sun will have to endure the risk of customers not paying subscription.??