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DTH aspirants find path to Indian homes not-so-direct

Amberish K Diwanji in New Delhi

The direct-to-home satellite television (or simply DTH) issue remains a hotly debated subject in the capital, oscillating from official disfavour to favour every time a new minister takes charge at the information and broadcasting ministry.

The present incumbent, Pramod Mahajan, has said the government would welcome DTH. His predecessor, Sushma Swraj, went on record that DTH would not be let in till the Broadcast Authority of India was set up.

Media industry analysts said global media baron Rupert Murdoch favours DTH. His STAR TV network has a full-fledged team in India devoted to DTH operations.

Analysts hinted at the government being pressured to introduce DTH in India.

"The government just wants to earn some money, hence the sudden change in policy," claims Sudish Pachauri, a media analyst and author of books on India's television operations. "The Bharatiya Janata Party had promised to table a bill on the percentage of equity to be allowed to be held by foreign partners before allowing them in, but is no longer speaking about that."

The cable operators are opposed to DTH. They fear a loss in income since DTH bypasses them completely. "The fear of the cable operators is somewhat unfounded," said a media watcher, "because never has one medium completely obliterated another medium. Television did not wipe out print, video did not kill movies, cable did not kill videos and DTH will not kill cable. But, yes, there will be a shakeout."

In Scandinavia and the United Kingdom, where DTH systems function, cable and satellite networks continue to co-exist, he added.

DTH can offer up to 200 channels of very high quality (much better than what is received at present) and will be subscription-driven because the advertisement pie is not large enough to support all the channels.

DTH, at least in the initial years, will be purchased only by the rich and the upper middle class as the subscription channels will be more expensive than cable television. This will also help advertisers get a focussed market for high-end products such as cars, analysts said.

Moreover, DTH decoders will help track the programmes watched and for how long, letting advertisers know the popularity rating of the various programmes broadcast. "This will be an advertiser's delight, but it can also be used by the government," said N Bhaskara Rao, chairman of the Centre for Media Studies, New Delhi.

One major complaint is that with programmes going directly to home, there will be no control over what the viewers will be able to watch. Those opposed to DTH have alleged that it can and will be used by people to broadcast anti-India programmes. In fact, the United Front government banned DTH saying it could pose a threat to national security.

However, Mahajan is keen to allow uplinking directly from India. Currently, most satellite television services uplink from Hong Kong, Kathmandu or Singapore. By allowing uplinking from India, the government will be able to keep a watch over the programmes.

Another complaint is that with high investment, only commercially viable programmes will be broadcast, not public service programmes. It is also for this reason that various groups have demanded that some regulation be put in place before DTH is allowed.

There is a fear that DTH could well lure away advertisements from the government's national television network Doordarshan.

"Today, DTH is made out to be a monster that will change everything. And regarding advertisements, right now, Doordarshan garners 70 per cent of all revenue. DTH is just a mechanism to help collect revenue from the customer," Urmila Gupta of News Television (India) Limited, the company that owns STAR TV, told a seminar recently.

With DTH, multiple channels of news and views would be available. "With that happening, it is for the national broadcaster (Doordarshan) to play the role of public service. The problem with Doordarshan is that it is trying to be everything," she added.

Given that DTH will offer capacity for several channels, the government can ask broadcasters to spare a few channels for public service programmes, said Devinder Sharma, senior vice-president, Loral Space Systems, manufacturer of DTH decoders now waiting for the Indian market to open up.

DTH being a pay-and-watch system, there will be local offices to collect revenues. "In fact, DTH will necessitate centralised operations to collect subscription charges. The government can easily control their activities. But how many of the cable operators can it control today, all of whom are so spread out?" asked a media watcher.

Sharma of Loral talked of another aspect: that initially the decoders will be expensive for the poor (the price range quoted for a decoder today varies from Rs 5,000 to Rs 10,000). "Yet, the price can only come down, especially with competition."

In fact, media watchers believe that once DTH is allowed, Murdoch might be willing to sell DTH decoders at a cheaper price or on interest-free loans in a bid to grab market.

One of the fears in the market is that a decoder sold by one brand may not be useful for another brand, thus forcing customers to view the programmes of only one brand, like say either STAR or Zee. "The customer can always change the alignment of his DTH dish antenna to receive whatever he wants," said Gupta.

This fear of customers losing out has raised a demand for a regulatory authority. "The onslaught of technology is inevitable," said Rao. "DTH will come in sooner or later. There must be laws in place before we open up the skies."

For, as Gupta said, whenever the government interfered, it only spoilt everything. "The government controls telephone operations and today there are only ten million lines all over India. The government was unable to control cable and satellite television. In a span of just nine years, there are 20 million C&S television watchers."

A lobby working against the DTH entry comprises existing television channels who are not yet ready for the new system. In the media industry, the first entrant in a new area always retains the edge over others who follow. Example: Zee TV that debuted in the C&S segment in 1992.

Today, the only network ready for a DTH launch is STAR. It has an office in place to sell the decoders and collect subscriptions. Zee TV, according to media reports, claims that it is ready for DTH operations.

"Technology is changing much faster than regulations can keep pace with," points out Sharma. He agrees that some companies are better prepared than others, but adds, "You cannot wait for everyone because by then, the entire situation might change."

Sharma is confident that DTH can be used to take television to each and every home in India as the cost will decrease over the years. "Doordarshan, being terrestrial, is too expensive and C&S is limited to urban areas. Only DTH holds the promise of reaching every rural home."

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