On key features of your DTH service

We currently have 230 TV channels and unique features like 21 cinema channels, a 12-screen preview feature called MOSAIC, ccomplete flexibility to choose the channels you want to watch; personalized favorites-list, Zapper Guide that tells you about the current on-air programme, subscription-based module for watching Hindi and Regional films on the PPV channels.

We launched BIG TV across 6,500 towns through a network of over 100,000 retail outlets and supported that with a team of around 8,000 highly trained technicians. We have one of the world's latest and best DTH platforms, with a capacity to increase the number of channels from the current 200 to over 300. BIG TV has two network operating center's (NOC) - one in Mumbai and a redundant NOC in Bangalore. We have 100,000+ retail outlets and two call centers capable of handling over 50,000 calls per day, in 11 languages. These are some of the key differentiators that Big TV has from its competition.

On your expansion plans in 2010

The Indian DTH sector is expected to see 100 percent growth over the next two years as the subscriber base is expected to more than double from the current 17.5 million, to over 32 million DTH connections by 2011.

The industry has decisively shifted its focus towards Value Added Services (VAS), as they are the next revenue generators for all DTH players. The industry's average customer acquisition cost is as much as Rs. 4,600, while the return on this investment ranges between Rs. 85 and Rs. 280, the monthly average revenue per user.

The prime revenue has been subscription but now the focus is shifting towards VAS. We currently have six interactive services on our platform Stock, Cricket, News, Cooking, Games and Astro. We plan to introduce various interactive services in the next quarter; notable among those would be the interactive feature that would help investors to perform real-time tracking of their portfolios, as we will be providing live feeds from both BSE and NSE as a part of this feature. We are also committed towards enhancing user-friendliness and are currently testing feature enhancements like Electronic Programme Guide (EPG) in multiple languages.

Currently, we have 2.1 million subscribers and aim to reach 3 million by end of this fiscal. One of the key drivers of this growth will be the shift from cable operator service to DTH service, driven by increasing number of LCD and LED television sets in households, as prices of these LED/LCD television sets are expected to head southwards. With nearly 35 percent drop in LCD prices expected over the next two years, these television sets will emerge as a preferred option over color TV sets. While the LCD wave will be predominantly urban-led, a gradual shift to tier-II and tier-III cities is also expected.

With adoption of LCD TV's rapidly increasing, the value expectation of the viewers will head north. The viewer expectation will be related to functional as well as content propositions. With cable operator services still being largely analog-based, consumers will shift to DTH services offering digital clarity, enhanced audio-quality and a wide variety of content options which a cable operator cannot offer.

India is heading towards a revolution in HD, both in terms of hardware and software. While a lot of channels are gearing up to beam HD content, television manufacturers like Sony, LG, Samsung, Philips, etc., have already started selling HD TVs. Only MPEG 4 technology used by DTH operators can support HD content and Reliance BIG TV was the first operator to adopt MPEG-4 technology on a pan-India basis.

On estimated shortage of transponders

2008-09 will be remembered as the year of DTH. Three new DTH operators started service in this year doubling the available option for DTH users from three to six operators. This unprecedented jump has caused a shortage in the space-capacity in Indian skies.

With the forthcoming Commonwealth games, 2010 will be remembered as the year when HD transmission began in India. The HD content-needs is six to eight times capacity as compared to any average standard definition channel. With the launch of HD services this shortage will become more acute. With 400-500 channels possessing downlinking license to operate, most private DTH players are able to carry 150 to 190 channels only. To carry 300+ channels and 8-10 HD channels, each operator needs to increase their capacity by 120 percent to 140 percent. It takes minimum of about two-and-a-half to three years to build and launch a satellite once the decision to build is taken. This means the shortage in space-capacity will be limiting the choice of channels that the platforms can carry, for some time to come.

On footprints in India

The satellite capacity can be used in many ways viz. VSAT, remote sensing, broadcasting, trunking, etc. Each application uses different configurations at the receiving station to suit the signal strength available at the receiving site.

DTH application uses consumer-grade receiving hardware to reduce the cost to the subscriber. This means transponders suitable for DTH operation are specially designed, keeping in mind the size and shape of our country so as to conserve the signal by not wasting it over sea. We have sufficient power available across the Indian geography, for our citizens to enjoy the service of their choice using the small (60 cm) antenna and the STB.

On the growth of transponders

We believe that the real benefit of digital signals of DTH is the quality of the signal and the wider choice available to the customers. We strive to provide the widest possible choice to our subscriber by genre, language, quality (HD/SD) and choice of interactive applications. In short, service which is easy to choose, easy to use and provides enhancements over the existing TV viewing experience. We are working with ISRO, our space-capacity provider in the Indian skies and our satellite operator so that our roadmap for growth in capacity is planned in advance and is made available as soon as we need it, to expand the range and depth of our services. We believe our choice of MPEG-4 technology will help us use the available capacity efficiently and will help us fulfill our customers wish for quality, choice, variety and the overall viewing experience.

On the future of satellite transponder space in India

We are sure our government and DOS have taken note of the current squeeze in capacity for DTH Networks. However, like mobiles, DTH touches people in every geography and every strata of society. We are confident that suitable steps will be taken so that all our citizens can enjoy world class DTH services offered by any Indian operator. Unlike mobile, where the same frequency can not be used by another operator because the transmission is in all directions, DTH receive-antenna is highly directional and same frequencies can be reused by the satellites that are more than three degrees apart. Therefore, in principle, the problem can be solved. Long lead-time to build the capacity will create some challenges that can be resolved through advance planning.

On the marketing strategy

As part of its aggressive sales and marketing strategy, Reliance Big TV is betting big on sales through MDU commercial agreements. RBTV has recast its entire sales operations into two divisions - retail and institutional. While the retail division will focus on driving sales through its nationwide retail network and channel associates, the newly formed institutional division will focus on high-ticket MDU deals. The company is targeting a market share of 40 percent in the MDU segment within the first year of operation.

The MDU strategy will be an integral part of RBTV's focus to achieve leadership position in the Indian DTH sector. The MDU is a customized DTH solution targeted at tapping various sections of society, commercial complexes, and new township, where a single dish-antenna can provide the DTH connection to multiple households. This circumvents the need for installing individual dish antennas for every household connection. Such MDU agreements are expected to contribute nearly 15 per cent of volumes in a circle. BIG TV has already installed MDUs at over 1500 locations, and close to 5000 other locations are in process.