Headend-in-the-Sky (HITS) is the revolutionary technology that has the capability to take the digital television to the next level. Gradually, the content as well as the subscribers will rise over the HITS platform. When the regulation by Telecom Regulatory of India (TRAI) comes into picture, as an operator it would be much easier to increase the content ratio. Currently the channels are very adamant in providing their content over the HITS platform, which is expected to change soon.

Further, HITS platform will also prove beneficial for the subscribers as they will experience a better picture quality while viewing the digital channels. The subscribers will have wider option to choose from the available channels and pay accordingly. It also facilitates easy reach to the rural areas of the nation. It is expected that the cost of the set-top boxes will decrease. It will also lead to further consolidation of the cable market.

Proposal Approved. The Union Cabinet on November 12, 2009 approved the proposal of Ministry of Information & Broadcasting to issue policy guidelines for Headend-in-the-Sky operators. The policy guidelines provides for a framework within which the HITS Service providers has to provide services in the country. The policy does not mandate for either the cable operators or subscribers to necessarily obtain signals from a HITS platform/network, the subscribers and cable operators can continue with the existing system. Hence the cable operators have liberty to switch over to HITS provider network if so desired. Thus it has a basic difference from the areas notified for CAS (Conditional Access System) which is mandatory.

HITS serves the whole country providing its signals through satellite to many Multi System Operator/cable operators who can further send the signals to the customers using their network. The essential difference between a HITS operator and a Multi System Operator (MSO) is that the former transmits the bundle of channels to the cable operators using a satellite, whereas the latter does the same through cable. HITS is a digital delivery mode of distribution of TV channel and it would speed up the process of digitalization of cable services located in Non-CAS areas of the country. HITS would not only help increase the penetration of cable market further into rural areas where it has been absent because of un-viability but will also help in further reduction of prices of set top boxes and will also lead to further consolidation of the cable market.

HITS would help a subscriber with a wide choice of digital channels, better picture quality and value added services at affordable price. HITS would provide greater channel capacity from the present limited capacity of channels placed in prime/non prime band. Salient features of the HITS policy approved are:

• It provides for an enabling regulatory environment for operators.
• HITS services are allowed in both C-band and Ku-band.
• HITS operators can uplink from Indian soil only and will have to install SMS and encryption system.
• They are not permitted to provide signals directly to the subscribers. However, if HITS operator is also MSO/Cable Operator, he can do so through his distribution network.
• Total direct and indirect foreign investment including FDI is allowed up to 74 percent. Prior FIPB approval will be required if the FDI in beyond 49 percent.
• The cross media holding restriction of 20 percent of total paid up equity has been prescribed for various segment of broadcasting services.
• There is no restriction on number of permissions.
• Existing permission holders of HITS will have to comply and migrate to new policy regime within three months failing which their permission shall be cancelled.
• Sufficient provisions exist under the guidelines for monitoring of content, inspection and national security related issues.

At present, only WWIL, the cable company of the Essel group, has a licence for HITS. It has conducted trials in several towns. Several large cable companies like Digicable, DEN and Incable have expressed their interest in applying for a HITS license once the policy is implemented.