Will you have this dish?

Dishtv claims to have got off to a flying start on the DTH route. But has it really?

Dishtv got its license to promote direct to home (DTH) services in India 18 months ago. Today, it is still trying hard to create a buzz around it. With higher installation prices and lack of content, can dishtv show cable viewers the much-hyped DTH route?

Sunil Khanna, CEO, dishtv, sounds positive. He ignores the PricewaterhouseCoopers 2005 study that states, India's pay TV industry is still in favour of cable operators. "Satellite can go where cable can't," argues Khanna, adding, "Our aim is to penetrate into the rural market."

The Essel Group-promoted dishtv began its operations in October 2003 and Khanna claims that the company has already tapped 6 lakh subscribers across India. His explanation, "DTH is not an alternative to cable. Both compliment each other."

We don't think so. For starters, it's expensive. At Rs 4,000 (after subsidisation) it is costlier than normal cable television. The content is not attractive and there's a glitch: with competition between broadcasters like Star, Zee and Sony, the viewer is the loser. For instance, if you want to watch your favourite serial on Star TV, you have to compromise on the Zee TV bouquet.

It's a glaring defect and Khanna admits, "When popular content is not available on the DTH platform, we do stand a chance to lose."

Then what's egging him on? Khanna seems confident of the notification by Telecom Regulatory Association of India (TRAI) that was announced early this year.

The notification stated that broadcasters (television channels like Star, Sony and Zee, in this case) will have to provide their channel signals to pay TV operators including cable operators, direct to home operators, multi system operators and sky operators.

"Dishtv has already spoken to Star and Sony television and we will resolve the issue," promises Khanna.

To lure a sizeable number of viewers, dishtv is launching its interactive TV and movies-on-demand through the DTH route in early 2006. While viewers can watch movies listed on dishtv's menu, personal video recordings can also enable subscribers to record programmes of their choice and view them at their convenience.

In April, dishtv dropped installation prices from Rs 8,000 to Rs 4,000 and spruced up the number of channels from 40 to 135. "We are adding one lakh subscribers every month," says Khanna confidently.

Dishtv has introduced packages for viewers at Rs 60 per month. "We are selling 3,000 dishtv sets per day," he adds.

Khanna says he is tapping 40 million households in remote cities and villages that depend on the DD channel. However, according to sources, Doordarshan with its DTH of 30 channels is already doing well in rural India.

Despite few takers for DTH right now, Khanna says, "Other players have taken the plunge; DTH will see better days." Khanna may be optimistic; we'd prefer to wait and watch.

Ready for it?

What is DTH: Five years ago, the government approved Direct to Home investments (DTH) in India. This involves transmission over satellite of programming directly into small receiving antennas located at viewers's homes.

Why DTH: The transmission quality of DTH is better than that the cable system. It even manages to penetrate remote areas where installing cable systems is difficult

The providers: Subhash Chandra-promoted Essel Group's dishTV; Space TV (yet to arrive), NSTPL promoted by Dr JK Jain, and Prasar Bharati

The glitches: It's expensive and for now content is poor