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Q. What exactly is DTH?
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A.
DTH (direct-to-home) basically is a distribution platform
for multichannel TV programmes on Ku (high frequency
of 11.7 to 14.55 Gigahertz) band by using a satellite
system that will be transmits directly to subscriber
premises.
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Q. What is the difference between Ku-band and
the present form of cable transmission in India?
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A.
The basic difference between Ku-band and the present
C-band transmission (3.4 to 6.65 GHz.) lies in the fact
that Ku-band signals require a very small dish antenna
of 30 to 48 cm (12 to 18 inch) diameter while lower
C-band requires a large dish antenna of 2.4-to 4.9 metre
(8 to 16 feet) diameter. The Ku-band DTH service offers
greater and direct connectivity to the viewer providing
over 100 channels through a small dish antenna, doing
away with intermediaries like cable operators. Moreover,
this will have a better control over the revenue.
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Q. What is the USP (unique selling point) of
the service?
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A.
The subscribers can directly receive and view an array
of channels available globally, doing away with intermediate
cable-operators.
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Q. Is the direct-to-home broadcasting legal in India?
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| A.
After the removal of the existing three-year ban DTH broadcasting
has been made legal from November 3, 2000 in India. The
government has approved the service, reversing the 1997
prohibition of instituting measures for regulation of
content and prevent monopoly. |
| Q.
What will be the cost for an end-user?
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| A.
The users will not have to pay much to view channels of
their interest. A nominal investment of approximately
Rs25,000 will link them to the multi-channel platform.
This will include a pizza-sized 30 to 48 cm (12 to 18
inch) dish antenna for Rs.10,000 along with the TV set-top
box, a digital decoder, for Rs. I5,000. Users will be
provided with 'channel cards' which will act as pre-paid
debit cards. |
| Q.
What amount a subscriber will have to pay for the service? |
| A.
All channels will be 'pay' channels and the subscriber
will have to pay the fee to the service provider. Since
DTH is now legal in India, the companies will recover
the cost from the revenue accumulated via the 'channel
cards'. |
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Q. What is the entry fee for DTH? |
| A.
The applicants are bound to pay an initial deposit of
Rs. 100 million beside Rs. 400 million as the bank guarantee
for a licence from the government to provide DTH service.
Out of this a minimum of ten percent of the total revenue
collected by the platform owner will be shared with the
government. |
| Q.
Do we have the same investment policy for the foreign
applicants? |
| A.
Foreign investment in DTH companies has been capped at
49 per cent, which includes 20 per cent foreign direct
investment. NRIs, FIIs and OCBs can invest up to 29 per
cent. Broadcast and cable companies cannot own more than
20 per cent equity. |
| Q.
What are the other terms and conditions that need to be
followed? |
| A.
The licencee will have to establish the uplink Earth Station
in India within 12 months of issue of licence. It is mandatory
for all the DTH service providers to get registered under
the Indian Company Act (ICA) and the Indian Management
Control (IMC) with majority representatives from the Indian
board. The CEO should be an Indian resident. The companies
will have to preserve the recordings for at least 90 days
so that any complaint filed could be checked out. |
| Q.
How many and for how long will the licence be issued? |
| A.
At present there exists no restriction on the number of
licences issued by the I&B (Information and Broadcasting)
ministry for a period of ten years. Thus the licence issued
will need to be renewed only after ten years from its
issue date. |
| Q.
Who all will be the DTH broadcasters? |
| A.
From the current indications it appears that other than
Doordarshan the other TV broadcasters such as Star TV,
Zee TV, ESPN etc., are keen to join the direct-to-home
bandwagon. But this will be subject to the regulatory
supervision on the account of security concerns. |
| Q.
What will happen if a broadcaster violates DTH notification?
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| A.
In case of violation of rules, apart from the cancellation
of licence issued the company will have to shell out a
penalty of Rs. 500 million. |
| Q.
What is the future of the DTH broadcasting in India? |
| A.
Its too premature to comment on the conditions prevailing
but it is true that DTH is definitely a step towards convergence.
DTH has definitely got more power than Pokhran. |
