September 02, 2010

This report takes an in-depth look at the Indian regulator's (TRAI) proposed timeline for switching off analogue cable signals. The pros and cons of its (regulators) recommendations, the possibility of a 2013 switch off being approved by the government, and the opportunities that the ASO offers for both foreign and local players alike are all examined.

At end 2009, India's analogue cable base stood at 83m subscribers - accounting for approximately 80 per cent of India's total pay TV base. A direct result of having widespread presence, and domination, of analogue cable in India has been on reported subscriber numbers. In the analogue medium, addressability of subscribers is often near-impossible, with only the last mile operators knowing exactly how many subscribers are connected to their networks.

In a bid to rectify this situation, TRAI has recommended a fast track approach for cable analogue switch off (ASO). The blueprints of the plan reveal an ambitious 2013 ASO deadline, and incentives for operators in the form of income tax waivers and waiver of import duties on digital set top boxes and head-end equipment.

However, although there is an industry-wide consensus on the needs for replacing analogue cable with addressable digital cable, both the industry and the government's Information and Broadcasting (I&B) ministry are sceptical about the possibility of a 2013 switch off. Moreover, the regulator's recommendations are also shy on crucial details such as subsidies for the underprivileged and information campaigns targeting consumers and local operators, informing them of the needs for digitisation.

With TRAI recommending lifting caps on foreign investment and given that a significant level of consolidation will take place on account of digitisation, we believe that there will be significant opportunities for foreign players to enter the market.

Tables and charts included:

• Set Top Box Price And Capex Model
• Indian Cable TV ARPU

Pages: 8

Tables & charts: 2

Tags: