MTNL launches IPTV to boost broadband base

Mahanagar Telecom Nigam Ltd (MTNL) is looking at major growth in broadband penetration amongst its 4 million landline subscribers as it launches IPTV(television which utilises the broadband fibre network).

The telecom PSU has set a target of 5 lakh broadband users by the end of the financial year in both Delhi and Mumbai circles.

Currently, the company has about 3 lakh broadband subscribers and a waiting list of 18,000 in Mumbai and 8,000 in Delhi. It has 1.6 million and 2.2 million landline subscribers in Delhi and Mumbai respectively.

In order to expand its broadband network and enable customers to subscribe to IPTV, MTNL has already placed orders for 1 million modems (which are needed to enable broadband on the fibre optic line).

This number could swell to 2 million (which represents half it landline customer base). The company has earlier had to face shortage of modem supply to broadband applicants.

"We are looking at maintaining our fixedline subscribers, and with IPTV also on offer, subscribers will have telephone, internet and TV all through a single connection. The idea is to increase the subscriber base," RSP Sinha, chairman and managing director, said.

Subscribers, however, need to have a broadband and fixed line connection to avail IPTV facilities. The effort has been towards reducing the surrender rate of landlines which had hit 1 lakh last year.

MTNL's IPTV will offer about 200 channels. The company is in talks with 3-4 channel content providers. It is also looking at providing video-on-demand where production houses and producers can premiere their films or offer special films to subscribers who pay for them.

Set-top boxes are priced at about $100-200, but is expected to come down once market competition comes into force as IPTV services start rolling out. However, MTNL said that it will not offer its broadband network to other IPTV service providers.