Press release from Business Wire India
Source: Frost & Sullivan
Wednesday, October 31, 2012 05:37 PM IST (12:07 PM GMT)
Editors: General: Consumer interest, Economy, People; Business: Business services, Information technology, Major diversified industrial groups; Technology
Frost & Sullivan Bullish on Digital Cable Opportunity, but Metros Far from 100 percent Digitization
An in-depth insight on Digitization Services of TV in India published by Frost & Sullivan

Mumbai, Maharashtra, India, Wednesday, October 31, 2012 — (Business Wire India) — India stands strong as the third largest in cable TV penetration in the world with 85 percent of total TV households, and 126 million cable subscribers. The tightening of Government rules for cable TV digitization, along with possible increase in foreign direct investment (FDI) inflows and consolidation will prod over 30 percent growth for digital cable till 2015.

However, it is noted that several cable multiple-system operators (MSOs) in India are more than likely to miss the Government-proposed October-November 2012 digital deadline, which mandates use of set-top boxes (STBs) in metros. Frost & Sullivan estimates the current penetration rate at a little over 25 percent, or 77 lakh subscribers. According to Ms. Vidya Nath, Research Director, Frost & Sullivan, “The current shortfall will require an investment of INR 3,000 Crore, at least, in metros. Though current digital penetration data reports from the Ministry of Information and Broadcasting are implausible, we are bullish on the future growth potential of the cable TV market in India.”

Cable digitization in India holds immense business potential in terms of service and investment. It will unlock new revenue streams for the TV industry, with positive impact on the broadband market as well due to upcoming TV-Internet services. Multiple service offerings, spectrum efficiencies, and transparent system operations are expected to bring about a revolution in digitization of television services in India, at the same time creating an advantage for broadcasters, MSOs, STB manufacturers, consumers, and stakeholders.

“While strong Government hand in regulatory mandates will drive faster penetration, the cable industry needs to take initiatives from within to speed-up implementation,” observes Nath. “Digitization bodes well for the cable and the broadcast industry in the long term. A more thorough path of evangelism and consolidation is what is required to encourage transition toward digitization through the local cable operators’ (LCOs’) network.”

At present, investment requirements for digitization are very high in India and hence the process requires extensive subsidies to produce and purchase equipment, which eventually compels local cable operators to consolidate. According to Frost & Sullivan, FDI in digitization would result in higher returns and rise in broadcast, cable, and direct to home (DTH) services in India. Also, it will leverage the opportunity for technology support, subscriber acquisition, and strengthen smaller players.

Another area where Frost & Sullivan identifies prospect for digitization is the approach toward switchover. The transfer process should be executed strategically, as the technology used for switchover in the first phase would act like a barometer and help determine quality of switchover in the entire region. In India, the transition process in areas that solely rely on Digital Terrestrial Television (DTT) should preferably begin with low-population densities. The switchover policy in India is expected to occur in four phases, with the final phase due for completion by December 31, 2014.

Frost & Sullivan has published an in-depth insight on Digitization Services of TV in India, if you are interested in more information, please send an email with your contact details to Caroline Lewis/Akshata Mhatre, Corporate Communications, Frost & Sullivan, at [email protected]/[email protected], with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

About Frost & Sullivan

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Caroline Lewis, Corporate Communications – South Asia, Frost & Sullivan, +91 98217 37935, [email protected]
Akshata Mhatre, Corporate Communications – South Asia, Frost & Sullivan, +91 (22) 6607 2020, [email protected]
Nimisha Iyer,Corporate Communications – South Asia, Middle East and North Africa, Frost & Sullivan, +91 98200 50519, [email protected]


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