This document provides an overview of the Indian cable television industry and challenges faced by Multiple System Operators (MSOs). It discusses how new technologies and the increasing demand for quality viewer experiences are creating opportunities for MSOs. However, MSOs face challenges like competition from other distributors, a shortage of set-top boxes, and low average revenue per user. The document recommends that MSOs adopt new business models and technologies like video on demand and over-the-top services to remain competitive in the evolving market.

1. A thought leadership paper on Multiple System
Operators (MSO) providing an overview of the
Indian cable television industry’s future trends,
technologies and challenges faced by them along
with a new era of possibilities available in the
wake of an increased demand for quality viewer
experience.
August 1st
2013
http://www.dikshatech.com
Multiple System Operators in India
An Industry Perspective

2. Contents
Foreword
Introduction 2
Multi System Operators (MSO’s) 3
Telco’s & MSO’s 4
The Indian Scenario 5
Indian MSO’S 6
Regulatory And Policy Intervention 6
DTH Leading Digital Distribution 7
New technologies and future trends 7
Personal Video Recorder (Digital Video Recorder) 8
Video on demand 9
The Digital Trends 9
Over-the-Top (OTT) 9
Challenges faced by the MSO’s 9
A New Era of Possibilities 9
Beyond Triple Play 9
More Than Residential 9
The Way Forward 9

3. “This report does not constitute professional advice. The
information in this report has been obtained or derived from
sources believed by Diksha Technologies to be reliable but does not
represent that this information is accurate or complete. Any
opinions or estimates contained in this report represent the
judgment of Diksha Technologies at this time and are subject to
change without notice. Readers of this report are advised to seek
their own professional advice before taking any course of action or
decision, for which they are entirely responsible, based on the
contents of this report. Diksha Technologies neither accepts or
assumes any responsibility or liability to any reader of this report in
respect of the information contained within it or for any decisions
readers may take or decide not to or fail to take.”

4. Foreword
P a g e | 4
As telecom experts, Diksha and our consultants
have had the privilege of working with many
global telecommunications giants. We have
witnessed the evolution of the telecom industry
over the years and have helped our clients
navigate through many challenges.
Telecommunications is a rapidly evolving industry
with new service models and value propositions
being generated on a continual basis. The Indian
telecommunications industry is one of the fastest
growing in the world. Government policies and
regulatory framework implemented by Telecom
Regulatory Authority of India (TRAI) have
provided a conducive environment for service
providers. This has made the sector more
competitive, while enhancing the accessibility of
telecommunications services at affordable tariffs
to the consumers with improved quality.
In the last two decades the Indian Telecom Sector
has caught the imagination of India by
revolutionizing the consumer experience through
a wide range of services. The Multiple System
Operators, in particular, has undergone a drastic
change with recent digitalization measures taken
by TRAI. Almost every section within the media
and entertainment network is getting impacted
by digitalization in a significant way. The
Government’s push towards digitalization and
addressability for cable television by 2014, is
expected to provide a stimulus to DTH and digital
cable growth. The convergence between
entertainment, information and
telecommunication is increasingly impacting the
overall media and entertainment industry. The
recent recommendations of TRAI for the
implementation of digital addressable cable
system in India will witness a paradigm shift in
the broadcasting sector and unlimited growth
potential for the industry.
The future of India’s media and entertainment
landscape looks extremely promising with
changes such as analogue cable sunset date by
2014, and players in the overall media value
chain attempting to provide improved content to
viewers through effective marketing and delivery
strategies.
Abhinav Mishra
Head Global Strategy & Operations
Diksha Technologies

5. P a g e | 5
Introduction
An aim to identify and assess the opportunities
and challenges of the Multi System Operator’s
(MSO’s) in India has driven us to prepare this
thought leadership paper on "Multi System
Operators - An Industry Perspective". It
provides insights regarding the potential
solutions available and the impending conduit
ahead.
The MSO’s have lately been facing hurdles in
driving their revenue growth since their
traditional business models have become
outdated and new entrants are posing a
serious challenge to these once dominant
players. The cable Average Revenue Per User
(ARPU) in India is one of the lowest globally at
Rs. 173, compared to Rs. 3360 in the United
States.
While the residential customers are demanding
a world filled with unlimited high-speed
services, such as broadband Internet access,
broadcast-quality video, and video-on-demand
(VOD), the commercial customers are seeking
unique voice and IP solutions with strict
Service-Level Agreements (SLAs). These
opportunities present the daunting task of
efficiently and reliably incorporating these
new, high-bandwidth services into existing
cable networks.
This paper provides a background to the MSOs
existing structure and the way in which new
technologies are evolving to elevate and enrich
the viewer experience. India’s growing middle
class, rising disposable incomes and high
volume of content consumption hold
significant growth potential for all segments
within this Industry. But competition, shortage
of Set Top Boxes (STBs), unfavorable
regulations, carriage fees, low ARPUs are
preventing the likely growth potential in this
sector.
India is at the helm of a revolution in digital
and HD adoption where the Ministry of
Information & Broadcasting has recently
validated TRAIs recommendation on increasing
the FDI for DTH & IPTV sectors to 100%. These
recommendations are positive steps towards
the objective of digitalization.
This is why perhaps traditional products served
well in the past, but may not serve well in the
current situation. The cable MSO digital
penetration today stands at 5 million. To meet
the deadline of 2014, cable service providers
have to sell about 90 million set-top boxes to
their consumers.
Sudheer Velatt
AVP – Technology
Diksha Technologies

6. P a g e | 6
Multi System Operators (MSO’s)
The cable industry has come a long way since the first cable operations were established in the late
1940s. Originally designed to be able to provide television signals to remote areas, cable operators have
developed a complex system of services which now includes television, internet, telephone, and wireless
services. As the services have expanded, so has the competition, resulting in an industry which is in a state
of flux.
Cable television came into existence in India in 1983 when Doordarshan started its services on cable
networks in rural areas of Rajasthan. In 1989 few entrepreneurs setup small Cable TV Networks and
started local video channels showing movies & music videos catering to a small neighborhood. Satellite
television was introduced in India during 1991 with the live coverage of the Gulf War by CNN and spread
through the launch of channels from Zee and STAR groups.
While the media & entertainment market (M&E) in India is relatively small when compared with other
countries, India has the third largest television market, in terms of number of viewers after China and the
US. Television continues to dominate the M&E sector followed by print and filmed entertainment. The
television sector in India has
grown at ~12%p.a. (2007-2010)
and is estimated to continue
this strong growth, owing to
healthy advertising spends and
increased penetration in semi-
urban and rural areas, mainly by
DTH. By the end of 2011, the
industry is estimated to reach US$ 7.1 billion, a growth of ~14% over 2010. Over 2011-16, the total market
size is expected to rise at a CAGR of 14.9 per cent to USD30.4 billion. The next five years will see digital
technologies increase their influence across the industry leading to a sea change in consumer behavior
across all segments.
This paper will examine the future trends in the Multiple System Operators (MSO) industry and the
challenges they are faced with.
A multiple system operator is an operator of multiple cable television systems. Although the FCC (Federal
Communications Commission) defines a cable system as a facility serving a distinct community making
virtually every cable operator a – MSO, the term is generally reserved for the major industry players.

7. P a g e | 7
Recently, Multiple System Operators (MSOs) have been on the defensive. Traditional business models are
becoming outdated while dominant players are finding themselves under attack by new entrants. MSOs,
realizing the need to evolve, have begun to focus on other areas to drive revenue growth. Not only are
they beginning to offer new services, but they are also exploring new business models so that they remain
competitive. Recent changes in technology, consumer behavior and non-traditional service offerings such
as over-the-top (OTT) content, peer-to-peer networking and content provision by new players are starting
to erode even the most well-established revenue streams. Not only have these changes dramatically
altered the MSO’s competitive landscape, they also present numerous challenges to the position of MSO’s
as leading providers and aggregators of video content.
The Indian cable and satellite TV however has been drawing-in investors like a honey pot attracts bees.
Cable TV has grown significantly with the number of subscribing households increasing from just 410,000
in 1992 to more than 9.4 crore by the end of March 2012, says the TRAI consultation paper. Cable TV
subscribers constitute approximately 60 per cent of the total TV homes in the country, whereas the share
of DTH is about 35 per cent.
Cable MSOs are staring at the changing face of a convergent industry. It's a clash now of content versus
context, daily disruptions versus timely innovations, and "immersive" experiences versus "lean back"
viewing. With the digital evolution here to stay, enterprises must channelize information technology to
aid them in crafting a future where they deliver performance, delight and entertainment – in ways only
they can.
Telco’s Vs MSO’s
As MSOs penetrate the telecom industry, Telcos are gradually shifting to full service operations with IPTV
services based on ADSL/LAN/FTTx competing
for traditional TV subscribers. Top
communication companies are challenging
MSOs with a range of new options and
experiences for subscribers, which reflect the
rapidly efficient development paths of both
operators. The growth of mobile broadband
services has not only been explosive, but the
market gap is immense. Current trends
indicate that mobile broadband subscribers
will total 1.5 billion by 2014 according to the Huawei industry insights
.

8. P a g e | 8
The convergence of industries brings both opportunities and threats. MSOs are no longer satisfying the
market with triple services, and have to compensate for a lack of mobility with a bundle of TV, fixed,
mobile and broadband services. MSOs are now in a position to offer competitive prices and high quality
services through broadband/voice packages plus other services such as free TV, enterprise clusters, IM,
and integrated video.
The Indian Scenario
The MSO’s with the highest revenues and most subscribers can be found in North America, Europe and
the Asia Pacific. The majority of MSOs, however, have ploughed through the tough economic times with
tremendous growth. The advent of TV services such as interactive voting, online games, and reservations
and bookings for various activities,
aggressive promotional activities
have firmly brought value-added TV
to the public realm.
Broadcast & CableSat projects the
Indian broadcasting and cable TV
industry revenue will grow at a
CAGR of 12 percent to reach Rs.
54,720 crore (US$11.4 billion) by
2014. The continued digitization of
distribution infrastructure, the
demand for regional and niche content, and low TV penetration will drive growth in this segment. India is
the second-largest pay-TV market in the world, with 108 million subscribers and a reach of 48 percent of
Indian households. With more than 600 television channels, India's vibrant media and entertainment
(M&E) industry, at Rs. 64,600 crore in 2010, provides attractive growth opportunities for global
corporations.
Enticed by economic liberalization and the huge volume of demand for leisure and entertainment, many
of the global media giants have been present in the Indian market for more than two decades. The
majority of India's urban consumption comes from non-metro cities (referred as Tier 2 and Tier 3 towns) -
regional markets with distinct cultures, languages and content preferences. Many global film studios and
TV broadcasters have already entered these markets and are producing regional-language content.

9. P a g e | 9
Indian MSO’s
Some of the prominent national MSOs are Siti cable, Digicable,
Hathway Datacom, IndusInd Media & Communication Ltd. and
DEN Networks Ltd. Some of the prominent MSOs that are
operating in regional markets are ACT, Fastway, GTPL, KAL
Cables (Sumangali), Ortel, Asianet, Tamil Nadu Arasu Cable TV
(TACTV) Corporation Ltd., Manthan, JAK communications and
Darsh Digital. However, the majority of the remaining are small, local (city based) MSOs with a subscriber
base of a few thousand.
Policy & Regulatory Framework
Cable Television Services were brought under the Telecom Regulatory
Authority of India in 2004. Further organizing the telecom industry, the
government has formed a Telecom Disputes Settlement Appellate Tribunal
(TDSAT) which is now available for settlement of disputes between
broadcasters and MSOs /cable operators.
The Telecom Commission, the highest decision making body of Department of Telecom (DoT), on 02 July
approved 100% foreign direct investment in the telecom sector. There is also a talk of increasing the FDI
cap in DTH, MSOs and News Channels. However, it is learnt that Ministry of Home Affairs has raised some
security issues in hiking the FDI Cap in certain sectors. Improvements in the current taxation regime and
increased FDI limits could aid the goal of digitalization in India.
Cable Act of 1994 was amended in 2006 empowering TRAI to issue new customer friendly CAS
Regulations. TRAI issued three regulations in August 2006 to create a legal framework for smooth
implementation of CAS. These included a tariff order, interconnect and pricing regulation revenue share
methodology and process and QOS regulation.
With TRAI playing and important role in shaping-up the telecom industry, its recommendations and
guidelines will be governing the growth. Key recommendations by TRAI are:
 Restructuring of Cable Industry with a larger role for MSOs and Digitalization plan within five years
 Head end in the Sky (HITS) policy to be announced by Government, TRAI completes all
recommendations on this
Player
Hathway
WWIL
DEN 50 Cities
Digicable
Source: Company websites
Major MSO's subcriber base
Area of operation
13 Major Cities
54 Cities
46 Cities

10. P a g e | 10
 DTH policy on tariff and Quality of Services
 New recommendations on FDI policy in cable- upto74 % by TRAI
 Internet Telephony allowed for ISP’s.
 Non CAS tariff regulations for TV subscribers
 Cable Companies can provide IPTV. Recommendations cleared by Government. MSOs can consider
this opportunity, marketwise
 Ala carte choice of Channels by MSOs from Broadcasters in non CAS
 New Television Rating points (TRP), Television Audience Measurement (TAM) policy by TRAI.
 Greater emphasis laid on network digitization, increased addressability and to encourage voluntary
CAS
 Incentives prescribed to Multi System Operators (MSOs) to introduce total digitized networks
 The registration for cable TV operator to be replaced by a comprehensive and supportive licensing
framework
 Separate licensing frameworks for Cable TV operators (LCOs) and Multi System Operators (MSOs)
 Eligibility criterion made specific to identify the entities who can act as LCOs and MSOs
 Option and flexibility to choose Service area given both to LCOs and MSOs
 CAS extension to the remaining three metros and subsequently followed by digitalization of 55 cities
within a span of 3 years ( with addressability)
New Deadline For Cable Digitization
The Telecom Regulatory Authority of India (TRAI) has recommended a four-phase digitization process for
cable TV in India while setting a sunset date of 31 December 2013 for complete switchover to digital
cable.
However, the Ministry of Information and Broadcasting, after reflecting on the views of the industry,
revised these timelines to set the sunset date as 31 December 2014. Implementation is to be carried out
in four phases:

11. P a g e | 11
 Phase I: The four metros of Delhi, Mumbai, Kolkata and Chennai by 31 March 2012.
 Phase II: All cities with a population of over one million by 31 March 2013.
 Phase III: All other urban areas (municipal corporations/municipalities) across the country by 30
September 2014.
 Phase IV: The rest of India by 31 December 2014.
Conditional Access System – (CAS)
CAS or conditional access system is a digital mode of transmitting TV channels through a set-top box
(STB). The transmission signals are encrypted and viewers need to buy a set-top box to receive and
decrypt the signal. The STB is required to watch only pay channels.
The idea of CAS was mooted in 2001, due to a furor over charge hikes by channels and subsequently by
cable operators. Poor reception of certain channels; arbitrary pricing and increase in prices; bundling of
channels; poor service delivery by Cable Television Operators (CTOs); monopolies in each area; lack of
regulatory framework and redress avenues were some of the issues that were to be addressed by
implementation of CAS
It was decided by the government that CAS would be first introduced in the four metros. It has been in
place in Chennai since September 2003, where until very recently it had managed to attract very few
subscribers. It has been rolled out recently in the other three metros of Delhi, Mumbai and Kolkata.
As of April 2008 only 25 per cent of the people have subscribed the new technology. The rest watch only
free-to-air channels. As mentioned above, the inhibiting factor from the viewer's perspective is the cost
of the STB.
Ditalization Sunset Dates Set By TRAI
Phase Area Sugested
Revised Timelines
Recommended by TRAI
Proposed Dates by I&B
Ministry
Phase I
Four Metros of Delhi, Mumbai,
Kolkata and Chennai
31st December 2011 31st March 2012
Phase II
Cities with Population more
than one million
31st December 2012 31st March 2013
Phase III
All Urban Areas (Municipal
Corporation / Municipalities)
31st December 2013 30th November 2014
Phase IV Rest of India 31st December 2013 31st March 2015
Source: TRAI, Ministry of Information & Broadcasting

12. P a g e | 12
DTH Leading Digital Distribution
DTH accounts for 82 percent of all digital TV subscribers in India. DTH players are aggressively expanding
into cable-dark rural areas and areas served exclusively by analog operators. A rough estimate indicates
that the combined score of the six players of the DTH industry is 45.5 million subscriptions in November
2011.
India's Pay-TV Average revenue per user (ARPU) is one of the lowest globally at Rs. 173, compared to Rs.
3360 in the United States. Intense competition in the digital cable and DTH segments, fragmentation, and
underreporting in the analog segment, and a price-sensitive market have constricted ARPUs. However,
ARPUs are expected to increase, stimulated by the consolidation of analog TV operators and the growth
of premium digital TV services.
Challenges Faced By MSO’s
The challenges faced by this market include a slow regulatory process to define digitization deadlines for
cable MSOs and broadcasters, inadequate drive among stakeholders to increase investments in
digitization, rapidly changing technologies in recent times that slow Capital Expenditure (CAPEX) decisions
and legacy of content on tape across various verticals.
At present ISRO have 187 transponders from nine Indian communication satellites including transponders
of GSAT 12. It has taken 86.5 transponders on lease basis from foreign operators through its marketing
arm, Antrix Corporation Ltd. ISRO plans to increase the transponder capacity by building and launching
communication satellite GSAT-9, GSAT-10, and GSAT-11. ISRO will need to speed up the satellite launches
in order to meet demand.

13. P a g e | 13
One of the biggest challenges is the legacy of tape and the requirement of rapid digitization, along with
efficient asset management solutions.
Competitive pressures have further intensified with clearance of licenses for 75 new channels. These are
further in addition to the already cluttered Indian television broadcasting space with around 600 channels
as on date, where broadcasters are already fighting an intense battle for viewership and struggling to
retain its share of the advertising pie. But now the entry into the broadcasting sphere has been made
more stringent. This will go a long way in
keeping away non-serious channels.
The Carriage Fee: The Indian TV distribution
industry is dominated by analog cable
operators, which is highly fragmented and
includes about 60,000 LCOs and 1,000 multi-
system operators (MSOs). Around 78.5
percent of cable & satellite (C&S) homes in
India are connected through analog cable
while the rest are connected through DTH/
digital cable, which provides a near
monopoly power to the analog cable in
terms of last mile connectivity.
India's growing middle class, rising
disposable incomes, high volume of content consumption and a conduced regulatory environment hold
significant growth potential for all segments of the broadcasting industry. Digital adoption will create
additional opportunities for global companies to cater to a new generation of digital consumers. In order
to succeed, companies need to understand and adapt to economic and cultural nuances and invest in
content and services tailored for local and regional markets. The ongoing structural and regulatory
reforms and the development of corporate governance norms will surely mitigate threats including local
competition, fraud, corruption and piracy.
Unfavorable regulation: TRAI is suggesting a cap of INR 250 on monthly cable charges. With digitization
requiring investments to the tune of INR 400 billion, capping the monthly cable charges to an upper limit
will only lengthen the recovery of the investments made by the industry. This will in turn make them want
to continue on the existing analogue cable as far as possible and may delay the digitization process.

14. P a g e | 14
Shortage of Set Top Box’s (STBs): It is estimated that 65 million STBs will be required in the next three
years to complete the proposed process of digitization. At the customer’s end, there are presently delays
of installation. Any delay at the procurement end will result in user inconvenience. One of the most
important components for digitalization is currently being largely imported. As per the industry experts,
local sourcing in short to medium term is not possible as there are no sufficient manufacturing capabilities
in India due to following reasons-
 No manufacturing capability & lack of readiness: Local manufacturing is in a nascent stage and
have limited designing and manufacturing capability for STBs especially for development of
software which is the most important part of STB. With the present capability nearly 85% of
components and chips will have to be imported from outside India.
 Import Duty: Government to incentivize local manufacturing has levied a Customs Duty of 5%,
which is currently being absorbed by the sector as part of subsidy to the end consumer.

15. P a g e | 15
New Technologies And Future Trends
There is an increasing demand by viewers for more features and better content from the TV channels and
cable operator’s lately. New technologies like Internet Protocol television (IPTV), Personal Video Recorder
(PVR), Over-the-Top (OTT) and video on demand are revolutionizing the viewing experience.
Video on demand
Video on demand allows viewers to order movies available in service providers’ library. The movies can be
downloaded for a fee. With more than 1000 movies produced in India, Video on demand offer lucrative
business opportunity for the cable operators.
IPTV
Internet Protocol television (IPTV) is a system through which television services are delivered using
the Internet protocol suite over a packet-switched network such as the Internet, instead of being
delivered through traditional terrestrial, satellite signal, and cable television formats.
Over-the-Top (OTT)
Another trend that is fast catching up and is likely to
change the dynamics of digital media in the Indian
subcontinent is OTT or multimedia video consumption.
Over-The-Top Content (OTT) describes broadband delivery
of video and audio without a multiple system
operator being involved in the control or distribution of the
content itself. With over 100 million Internet subscribers
and about 900 million mobile subscribers, India portrays a
high usage of broadband/mobile-delivered content,
prodding several content companies to capitalize on this
media. However, OTT video delivery requires an efficient
set of technologies and infrastructure to facilitate seamless
delivery, along with a growing emphasis on online
advertising and video analytics. The video content delivery networks market globally is expected to cross
US$ 540 million in 2011 and grow at a healthy CAGR of nearly 30 percent from 2011 to 2015, while online
video advertising market is expected to cross US$ 4 billion in 2011 and quadruple by 2015, globally. The
media industry in India is rapidly changing, new technologies are being deployed across the board - from
media capture to media storage and management, to broadcasting global content to the Indian audience;
the Internet is playing a pivotal role in changing the industry dynamics.

16. P a g e | 16
Personal Video Recorder (Digital Video Recorder)
PVRs facilitate viewing of channel while simultaneously recording the program running in another
channel. PVRs allow the viewer to pause, re-wind and re-play live TV.
The Digital Trends
India is at the cusp of a revolution in digital and HD adoption, with content companies and broadcasters
evaluating new media and content delivery alternatives as well as planning significant capital
expenditures to upgrade their infrastructure over the next 3-5 years.
The conversion from analog to digital television broadcasting will pave the way for broadcast equipment
manufacturers, television broadcasters and broadband service providers. Newer ways of distribution of
content including IPTV and mobile TV are creating further opportunities for growth.
The world digital asset management market is expected to cross US$ 530 million in 2011 and grow at over
20 percent CAGR from 2011 to 2016. Cloud-based services are a fast-growing segment within this market,
and Indian companies such as Tata Communications, Prime Focus Technologies, and Airtel are eyeing this
space for future prospects.
FDI In Television Industry
India’s Television industry experienced a remarkable upturn with the initial FDI flow in broadcasting in
early 1990s. Today, as the industry looks forward to embark on the journey towards digitalization, the
role of FDI remains as important as during the initial wave.
In the Broadcasting Sector, the 2013 FDI Policy has raised the FDI cap to 74% for Direct to Home services
and Cable Networks (Multi System operators (MSOs) operating at National or State or District level and
undertaking Upgradation of networks towards digitalization and addressability. Investment up to 49% will
be allowed in the automatic route whereas for investment beyond 49%, approval of the government will
be required.
Content Production 100 % (FIPB)
Up-linking a Non-news & Current Affairs TV Channel 100 % (FIPB) (for their entertainment content)
Up-linking a News & Current affairs TV channel 26% (FIPB) (FDI+(FII) (for their news channel)
Down linking of TV channel 100 % (FIPB)
DTH 49% (FIPB) (FDI+FII) (FDI will not exceed 20%)
Cable 49% (FIPB) (FDI+FII)
HITS 74% (FIPB) (FDI+FII)
Content Production
Broadcasting
TV Distribution
Source: Industry Estimates

17. P a g e | 17
With respect to foreign investment in the broadcasting services, the Government has introduced several
security conditions and terms including:
i) Mandatory requirements for key executives of the Company,
ii) Security clearance of personnel,
iii) requirements related to infrastructure, network and software’s,
iv) monitoring, inspection and submission of information, and
v) National Security Conditions.
A New Era of Possibilities
Beyond Triple Play
Cable operators are no longer seen as just the “cable guys”. They have built a world-class reputation as
reliable multi-service-operators (MSOs). The development of modern hybrid fiber-coaxial (HFC) networks
has enabled cable operators to rapidly respond to residential customers varied demands, from state-of-
the-art HDTV to video on demand and high-speed internet access. But the MSOs world should not and
indeed does not end here.
More Than Residential
MSOs now have access to much wider market opportunities and are well-positioned to compete with
traditional Telcos for business Ethernet and mobile backhaul services. As MSOs continue to increase their
network capacity and drive fiber closer to their customers, their competitive landscape rapidly broadens.
Strengths & Weakness of Various TV Distribution Channels
Strengths Weakness
Analogue Cable
 No further special infrastructure
requirement
 Limited capacity to carry channels
 Poor picture quality
 Lack of addressability
 No interactive services
Digital Cable
 High capacity to carry channels
 Voice and Data Carrying Capability
 Possibility of Interactivity
 Good picture quality
 High cost of infrastructure
 Placement of CPE
 High cost of laying new cable/fiber
to reach subscriber (if required)
DTH
 Enhanced picture quality
 Bypass the constraints of terrestrial
transmission
 Last mile connectivity directly to the
home of the subscriber through satellite
 Lack of return path
 High Cost of start-up infrastructure
 Placement of CPE
 Effect of weather on transmission

18. P a g e | 18
The Way Forward
The cable sector is emerging as a very attractive space owing to the TRAI recommendations and the clear
edge of digital cable over its competition like DTH and IPTV. The difference lies in offering a larger number
of channels, greater reliability even in adverse weather conditions and easier access to cheaper after-sales
and customer services. Globally, India is the third largest player in the cable TV space. Even though DTH
Technology is emerging as a competition to Cable in India, globally Cable has been resilient to such
technologies and even in developed countries like US; Cable has a 70% market share within In-home
Entertainment. Industry experts expect cable TV industry to consolidate and corporatize in the near
future, this will lead to economies of scale, higher efficiency and also easier access to capital.
Television industry in India is on a transformation path. Multiple channels in each genre competing with
each other for TRP, increasing pay TV penetration, expanding yet fragmented local as well as overseas
viewership of Indian channels, demand for more specific content has clearly set the stage for the next
level of growth and transition for players across the television value chain.
The government's mandate to digitize cable networks will bring a significant transformation to the TV
industry and positively impact broadband penetration.
Ministry of Information and Broadcasting and TRAI have been taking care of issues in this sector. Not
addressing crucial issues confronting this sector and the absence of an independent authority to oversee
it could take digitization off-track. There is an urgent need for the government to work with the
ecosystem and create a solution to address these challenges.
The cable MSO digital penetration today stands at 5 million. To meet the deadline of 2014, cable service
providers have to sell about 90 million set-top boxes to their consumers. While complete digitization may
or may not happen within the given timeframe, even ensuring a 60-percent digitization will enable India
move a step forward to be on par with the developed economies in the sector.
India’s M&E industry is expected to get double in size to Rs.1.66 trillion (US$ 28.72 billion) by 2017, from
Rs.82, 000 crore (US$ 14.19 billion) in 2012, which would be a compounded annual growth rate (CAGR) of
15.2 per cent, according to the Indian Media and Entertainment Industry Report 2013 by KPMG with an
industry body..

19. P a g e | 19
Acknowledgements
This paper would not have been possible without the commitment and
contribution of the following individuals.
Durga Prasad
Key Accounts Manager
OSS/BSS Solutions
Diksha Technologies
Malcolm Santosh Kumar
Research Analyst
Diksha Technologies

20. Singapore
About Diksha Technologies
Diksha Technologies is a professional services and product development organization catering to IT and
telecom companies for over 13 years. With offices in India, USA, Australia and Singapore we are currently
servicing major SI’s and Telcos across the globe. With a strong team on OSS/BSS, CRM & Enterprise
Solutions, Diksha is one of the strongest telecom technology service providers in the telecom services
market.
The Diksha stack of products is developed with Diksha’s expertise in telecom consulting. These products
are easing-off day-to-day challenges faced by companies operating in an environment which requires
billing engines to charge their end customers. Considering this focus of products, the intended customers
for Diksha Products would be the Telecom Operators and Consulting Companies across the globe along
with the Banking and Financial Services sector, due to their need of billing technology in operations.
5
th
Floor, JP Square,
#190, Sankey Road, Sadashiv Nagar
Bangalore - 560 052, Karnataka
Phone: +91 80 4333 6222
Fax: +91 80 4333 6245
401/14 Shoreline Drive,
Rhodes, NSW 2138
Phone+61451045975
3223, Route 38,
Suite 202, Mount Laurel
New Jersey 08054, USA
Voice: 856-206-0472
No. 120, Telok Ayer Street,
Singapore (068589)
Phone: +65 62426533
Level 15, 215, Lambton Quay, Wellington
Central, Wellington- 6011
Phone: +644 9203070
New Zealand
USA Australia
Corporate Office - India
www.dikshatech.com
https://www.facebook.com/Diksha.Technologies
https://twitter.com/DikshaTech