The CEO of Indian DTH company Tata Sky, Harit Nagpal, is becoming increasingly frustrated about the delay in obtaining additional capacity from the Indian Space Research Organisation (ISRO).
In an interview with local newspaper Business Standard in…
The CEO of Indian DTH company Tata Sky, Harit Nagpal, is becoming increasingly frustrated about the delay in obtaining additional capacity from the Indian Space Research Organisation (ISRO).
In an interview with local newspaper Business Standard in mid-June, Nagpal said that the company might consider taking legal action against ISRO to secure more access to transponders.
Tata Sky, one of India’s six DTH platforms, signed a satellite capacity deal with ISRO in 2005 using INSAT-4A. In 2007 it asked for 12 more transponders.
But Nagpal claims the space agency has so fair failed to provide additional capacity, although it is required to do so within two years of receiving a request.
As a result, Tata Sky is unable to provide more channels and its CEO fears it may lose customers and revenues.
Other Indian DTH operators have expressed similar concerns. About a year ago, the DTH Operators Association of India, headed by Nagpal, complained about technical snags suffered by ISRO satellites and delays in launches, which, in turn, impacted the supply of TV services.
GSAT-10, which was scheduled to be launched in early 2012, was finally placed into orbit in late September that year.
At the time, the association also called for a relaxed satellite policy that would allow companies to use capacity from foreign satellites in order to expand their television offering.
Some operators, including Dish TV and Airtel Digital TV, have already switched to foreign spacecraft.
But this decision comes at a cost and Nagpal told the Business Standard that if Tata Sky decided to provide services from another satellite, the operator would have to manually direct the antennae of 10 million customers towards the new bird.
The only solution would be for Tata Sky to provide services using GSAT-10, which is in the same orbital slot as GSAT-10, the CEO said.
The satellite broadcasting sector in India has seen the number of DTH subscribers expand rapidly in recent years, jumping from 25 million in 2010 to 48.1 million in June 2012, as India’s mobile population gain increasing spending power.
The sector is tipped as ripe for consolidation with several operators, including Airtel, Reliance Digital TV and Sun Direct contemplating M&A deals.
Meanwhile, Tata Sky has been reportedly planning an IPO in order to raise approximately Rs25bn (US$466.2m). Proceeds would be used to pay off debt and fund expansion within India.
Videocon, another satellite TV company, has also been considering listing a 25% stake in itself.
