January 2010

DIGITAL INNOVATION WILL SPEARHEAD A SUPERLATIVE INDIAN CABLE INDUSTRY

The Indian cable television industry has witnessed a major development in the last 15 years. Today, with cable reaching over 97 million cable and satellite Indian homes, it is the third largest and one of the most exciting cable markets in the world! The potential for growth is almost twofold with the introduction of new and innovative cable technologies like digital cable, and IPTV services. If marketed properly, they can positively help bridge the gap that keeps it from being the top in the world!

With increasing globalisation, the Indian consumer is far more abreast with global technological advancements. Following suit from the very vibrant international cable business, he knows exactly what to expect and demands the best! For this, interactive and innovative digital cable technologies have been established. These have opened up a whole new world for the consumers giving them enhanced choices to make. The growth of new and improved technology in the digital cable industry offers customers a chance to shift to viewing over 170 channels with outstanding picture quality and stereophonic sounds - a vast improvement from their previous networks.

Digital cable technology has given an impetus to the growth of the cable industry and stands out clearly as the future of Indian television. In India, there are currently 2.2 million digital subscribers. The number of digital cable subscribers is set to increase dramatically, with MPA projecting that digital cable will reach 13.3 million subscribers by 2013 and 21.1 million subscribers by 2018. Cable will continue to be India’s dominant platform for Pay TV distribution and from this point on, there is absolutely no looking back.

It not only offers a greater number of channels, but also provides them at a more reasonable rate. Digital cable has greater reliability in unfavourable climatic conditions. The ferocious Indian monsoons don’t affect digital cable as it does not require any dish set-up. It’s a hassle free option to provide world class picture and sound quality to the deserving Indian viewer. It also provides for simpler access to cheaper after-sales and customer services.

Further to that the customer benefits from several value-added services such as interactive games that are built-in to the set top box itself for people across all age groups. In addition to that, on demand content like movies, music videos and TV reruns can be made available at a nominal fee. Thus, going forward the consumer shall be the winner as he will have all the possible facilities available to him to enjoy his favorite movies through his digital cable in his living room. Indian consumer need not worry about missing out on his favourite TV show because it slipped his mind is only a thing of the past! With an interactive program guide which helps scan through schedule of programs for few forthcoming days & even pop-up reminders that a viewer can set, to ensure that he does not miss his favourite show. It gets even easier when each member in the family can have a favourites section with their favourite channels available one after the other in the order of their preference! Such innovative features are the need of the hour for Indian cable industry.

Of course, the transition from analog to digital cable homes cannot be undertaken in one go. Lack of infrastructure and more importantly inadequate awareness among the masses makes it compulsory to exercise a clear-cut structured process. Currently, cable TV transmission in India is predominantly analog and the task of digitising cable is an enormous one. However, with the help of several supportive regulations from Telecom Regulatory Authority of India (TRAI) like Interconnect regulations, Tariff Orders, Pricing regulations & Revenue Share methodology and process; this daunting task seems more achievable today.

The digital cable industry is poised to reap benefits of the new TRAI recommendations for increasing digitisation and broadband penetration. Previously, foreign investors shied away from the Indian cable industry due to lack of suitable regulations. However, with Foreign Direct Investment cap on cable being increased from 49 per cent to 74 per cent and recently introduced TRAI measures to regulate the industry, this scene is fast changing.

On account of all of the above, the cable industry is expected to provide unmatched services and grow further. Consolidation in the industry i.e. the scattered cable TV operators coming together to form meaningful corporate entities, is also attracting private equity players. Given the recent support of the regulators, the cable industry is modernising, going digital, adopting new technologies and for the first time seeing a future with good profitability. Cable strength in India is tremendous and with proper implementation of new technologies, it can only grow from strength to strength.

For digitisation to happen the environment has to be right and this is the perfect time for India to move into the digital market, given the huge potential and growth opportunities that this industry has been witnessing. India is now on the threshold of becoming one of the prime cable markets of the world. If all goes well, there will be no stopping India from becoming Numero Uno!!! n