Enter Airtel DTH

The Indian DTH market is going to get Bigger with the country’s largest mobile services company Airtel ready to launch their own DTH service. This will be the second high profile launch in the DTH market after the Reliance Group led by Anil Ambani launched their Big TV DTH services just a few months ago. The still developing Indian DTH market is unique in terms of quality and price, thus it throws up unique challenges. But in less than five years it is expected to enter 28 million homes across the country. Airtel wants to be ready for the DTH boom and this is the right time to enter the market.

What was once a two horse race is now expanding. Well established players like Tata Sky and Dish TV have had to brace for the competition not only from each other but also the Big TV service launched a few months ago. Market leaders Tata Sky have been shaken up with the entry of Big TV which is making steady progress on the back of eye capturing advertising and promotions.

With Airtel joining the mix, things get a lot more difficult for everyone already in the DTH market. We did note a few months ago that Airtel’s entry into the DTH industry will be a formidable turning point because unlike regional DTH providers like Sun TV and even the cable man, Airtel is a huge company sitting on sizeable profits earned under their Telecom brand.

And it is this telecom base which will set them apart because Airtel has the technology to offer a variety of services under their DTH scheme. Their internet and broadband advantage makes it easier to offer IPTV services which is similar to a mix of the television and the computer in one place .With the advent of 3G internet services in India and after having successfully bid for many  3G spectrums , Airtel can look to make this a reality .

For the time being, Airtel are marketing their DTH service by the name of ‘Airtel Digital TV’ and are offering 175 channels. Most of them will be free while some are paid channels. Airtel are unlikely to subsidize these paid channels and offer them free as the other DTH service providers are also charging for them. Image quality-wise their technology is similar to Big TV’s MPEG service.

The DTH war will however be won on the back of successful marketing campaigns and each company's ability to add newer consumers each month. Their Biggest challenge in this regard will be to come up with attractive pricing packages so that they can wrestle the consumer away from the hands of the local cable man who despite offering inferior cable services still prices his service cheaper.

What this also does is that it more or less establishes the major market players in this industry. The veterans Dish TV and Tata SKY and the new comers Airtel Digital TV and Reliance Big TV. The only other major player about to enter is the DTH service from the Videocon group.

As these companies slug it out, the viewer stands to gain.