Cable TV firms add IPTV to retain subscribers

Ihe cable distribution companies such as Hinduja TMT and Zee's WWIL are offering Internet Protocol TV (or IPTV) services in select cities of Gujarat, Maharashtra and Madhya Pradesh, in an attempt to provide interactive television with niche channel offerings.

"While Hinduja TMT may launch their IPTV business through IndusInd Media & Communications (IMCL), some others, including Wire & Wireless India from Zee, are also looking at foraying into IPTV services," sources said.

By venturing into the Internet Protocol TV space, cable companies aim to retain subscribers who might otherwise subscribe to direct-to-home (DTH) services or IPTV services offered by telecom companies.

"Since IPTV will be a niche service catering to the demands of a limited subscriber base, it makes business sense for big cable companies to foray into this area", a cable industry expert said.

"For example, IPTV services can cater to consumers in Baroda who want to interact on an international channel for the Gujarati community, or a view-on-demand service for Gujarati movies", he added.

IPTV offers the consumers digital quality television (voice, data and video) through telephone lines, using broadband internet instead of the usual cable wires. It also provides interactive services, including time-shift TV (recorded live telecast that can be played at any time at the press of a button).

Only telecom operators, Bharti and RCom, have announced plans for IPTV services so far. The IPTV service by state-owned MTNL hasn't really succeeded. MTNL has managed to register merely 2,000 subscribers in Delhi, a far cry from the target of 1,00,000 subscribers it had set to achieve within a year of the launch in July 2006.

Experts suggest that cable companies are keen to explore the IPTV option to capitalise on the headstart they have over telecom operators.

"Cable companies already offer broadband internet which can be used for the IPTV service," according to a technical expert with a media company.

"The current analogue cable headends have to be converted into digital headends at a cost of Rs 2-3 crore each. Additional investments of Rs 5,000-Rs 7,000 per subscriber will be required for network infrastructure and IPTV set top boxes."

It will be a more expensive proposition for telecom companies offering IPTV services as they would have to invest in new digital headends at the rate of Rs 5-6 crore each. Each digital headend can carry 16-25 channels.

In addition to the infrastructure and network expenses, there will also be costs involved in getting subscribers to opt for the services, said industry sources.

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MULTI-TASKING

Cable TV providers are worried about losing subscribers to DTH providers and telecom companies

IPTV services are a cheap extension for cable companies, unlike for telecom companies

MTNL has not managed to attract very many subscribers for its IPTV service in Delhi