The Information and Broadcasting (I&B) Ministry is wondering if it needs to contain the number of satellite channels and has sought an opinion from the Telecom Regulatory Authority of India (TRAI). On its part, TRAI has circulated a consultation paper to obtain opinion from various stakeholders.

The I&B Ministry has permitted 423 TV channels to uplink from India, primarily Indian broadcasters, and an additional 76 foreign broadcasters have been allowed to downlink to India. There are six DTH operators, two HITS operators, and 61 permitted teleports. All these operations are hungry for satellite transponder space. While operators can go for C band transponders to either the Department of Space (DoS) or foreign operators, Ku band transponders can only be provided by the DoS.

Satellite transponder space is rapidly becoming an area of concern, particularly in the Ku band used by DTH operators, and while the DoS has planned a number of satellite launches in the next four years to meet the projected demand, the Government needs to modify its policy of restricting KU band transponder availability to DoS. There is also a need to have a policy framework that encourages DTH operators to migrate from MPEG 2 to MPEG 4 compression technology, which would enhance channel handling capacity of transponders by one and a half times.

Overall, the solution lies not in restricting the number of channels but in making more Ku transponder space available rapidly and encouraging MPEG 4 technology. HDTV is also around the corner and this technology platform is also transponder hungry.

Meanwhile, HITS appears to have run into problems. The Essel Group has written to the I&B Ministry stating that the absence of clear-cut policy guidelines is a hindrance to the continuation of its HITS services, which have become economically unviable for the group and its business partners. The possible exit of the Essel Group could be a setback to the nascent HITS business that promises a way forward for cable operators, and digitalization in the cable TV industry.