IPTV services in India were introduced some two years ago, but have so far failed to match the success of DTH or cable. Industry experts feel that this is due to the limited launch of the service and a lack of focused marketing efforts.

Bharti and Reliance Communications have launched services only in Delhi and Mumbai, respectively. And although government owned BSNL and MTNL have together launched services in 54 cities, their marketing efforts have only recently started showing results.

Akshoptifiber (iControl) and Smart Digivision (MyWay) together have garnered more than 70,000 customers so far. Smart Digivision plans to offer IPTV services to between 1.6 million and 1.7 million broadband subscribers of BSNL and MTNL in these selected 54 cities which comprise 80 per cent of the country’s broadband subscriber base. Bharti Airtel is also finalising plans to expand services in the top eight cities of the country.

Despite low levels of penetration right now, the future of IPTV is bright. This is clearly evident from the amount of interest shown by biggies such as Google, Cisco, UTStarcom, and CopperGate etc.

Consumer Behaviour

Ericsson’s ConsumerLab recently conducted a study called Multi Screen Media Consumption 2010. Data was collected in China, Germany, Spain, Sweden, Taiwan, the UK and USA. The sample in the study is representative of more than 300 million consumers.

The study says, “At least once a week, 93 per cent are still watching scheduled ‘linear’ broadcast TV, but the role of broadcast TV is changing owing to the introduction of new distribution channels. More than 70 per cent of consumers surveyed are streaming, downloading or watching recorded broadcast TV on a weekly basis, and 50 per cent are using internet based on demand TV or video, every week”.

While this study has been conducted in other countries, it does give a glimpse of what consumer behaviour will be like. This clearly shows a preference for time shift capability, in which IPTV has the unique capability that enables continuous recording of channels without the user’s intervention.

In India as well, consumers are showing interest in IPTV services. According to a survey by KPMG, 18 per cent people want to retain their landline connection in anticipation of future services such as IPTV. This is a very big number given the fact that IPTV awareness level is very low in the country.

IPTV can not only help check negative growth of the landline business, it can also push up the broadband penetration in the country manifold. Himanshu Sahu, director of sales and engineering, UTStarcom, says, “Availability of TV sets in the country is much higher than that of PC or laptop, and IPTV’s ability to offer internet access can be leveraged to get more broadband customers.”

He added, “IPTV can also be used to provide a whole host of other services like tele education, tele medicine etc. because it enables interactivity.”

Internet over TV, as a concept, is so lucrative that Google has jumped in to provide this technology by introducing Google TV, for which it has collaborated with DISH in the USA, and will offer online TV and a web platform.

Cisco has also recently purchased a Canada-based company ExtendMedia, a provider of software based content management systems (CMS) that manage the entire lifecycle of video content through monetisation for pay media and ad supported business models, which will help Cisco offer solutions to service providers for delivering multi screen offerings.

Lack of Broadband

Limited availability of fixed line broadband in the country is a limiting factor for the launch of mass market IPTV services. But this limitation will be addressed by set top boxes, which use wireless broadband access to deliver IPTV.

Himanshu Sahu of UTStarcom says, “If we can have 2Mbps or more through wireless access, we can provide IPTV service. And both WiMax and LTE standards provide speeds much greater than 2Mbps.”

Akshoptifiber has already showcased a wireless set top box in India, and though the cost is currently three times that of the normal set top box, it will come down drastically once service providers start rolling out services.

Internet through IPTV

UTStarcom is already testing the integration of Google’s Android platform with its set top boxes, which will enable users to enjoy experiences similar to a PC, on the TV. The company has already added services such as online ticket booking through TV.

There are currently 22 million digital TV homes in India which, according to a report by equity research firm IDFC Securities, are set to grow to 86 million by 2015.

These numbers reflect a large user base specially because unlike a laptop or a mobile phone which is more of a personal gadget, a TV set is a shared resource in a home and is used by the entire family. And as Sahu puts it, it is not as complex to use as a PC or a laptop and can therefore be used by elderly as well as technologically naive users.

There are other benefits such as video chats which will provide much better user experience on TV sets thanks to the bigger screen size compared to a conventional PC or laptop.

For a price sensitive market such as India, integrating PC into a TV will mean investment protection for families. TV sets are comparatively cheaper, with conventional cathode ray tube TV prices coming down to below Rs 10,000 for a 29 inch TV.

While IPTV cannot replace a full fledged computer, it can provide capabilities that a cloud based thin client computer can provide which, for most first time users, is more than sufficient.

Applications though IPTV

IPTV not only has the capability of providing net access, it can also be used to push value added services and applications. Gaming is already included in the currently available services. This can be improved by introducing more interactive gaming, for which service providers can charge a fee.

Video conferencing is another area which can be of interest not only for consumers but also for enterprises.

Similarly, TVs can also be used to provide applications similar to what we see on smartphones today.

Source: afaqs! Telecom Yatra

New Delhi: MyWay, the IPTV solutions provided by Smart Digivision is planning to ramp up its business in a big way and said it would invest around Rs 400 crore in the next three to four years to expand its business.

The company started its operations in 2007 but launched its services commercially only in July 2009 and has a customer base of around 20,000.

“We have already invested $25 million in this business and would pump in another $85 to$90 million in the next 3-4 years,” MyWay’s Director Mr. G. D Singh told Telenewz.

He said that the customers are not moving to IPTV platforms from the traditional TV-watching platforms because the current IPTV players do not have much differentiator from their cable or DTH counterparts.

“We feel, besides the quality of picture and sound, we need to offer more utility based applications to our customers on IPTV platforms to see the real change,” he added.

The company which has a broadband tie-up with BSNL and MTNL to make it a pan-India player is coming out with a plethora of applications to offer its customers.

“In the coming days our IPTV users would get to enjoy a host of utility services besides getting world class video and crystall clear audio,” MyWay’s Marketing Head Kapil Gupta said.

The IPTV player is planning to offer access to Gmail,Facebook, Twitter on their TV. It is also planning to offer railway ticket reservation facility through their TV set.

“We are already offering checking of your PNR status on your TV on our IPTV service, but very soon you can book your train tickets sitting comfortable on your sofa,” Gupta added.

It has also entered into partnerships with ICICI bank to facilitate internet banking through the IPTV platform.

“Just imagine, when you or you family members can use the TV just not for watching some programs but for accessing mail, various bill payments, ticket reservations, practising yoga the way you want, selecting pizzas and ordering it, the so called idiot box is going to be the smartest box around your home,” Mr. Singh said.

MyWay which has around 20,000 customers and gets ARPU of around Rs 200 hopes to achieve around 1 million customers by 2012 and 3 million by 2014.

“We hope to be EBITDA-positive by the end of 2012,” added Mr. G. D Singh

Source: Telenewz.com

At the recently concluded annual India Satellite Industry Forum organised by CASBAA in New Delhi, a high powered gathering of domestic and international officials, delegates and media spoke on the theme of “On the Digital Edge – Where Broadband HITS the Streets”.

Among the main points discussed was a government commitment to the long-awaited harmonisation of the multiple taxes and tariffs affecting India’s satellite, DTH, cable TV and IPTV sectors, which broadcasters, operators and technology vendors believe is essential if India is to achieve its goals of industry-wide digital networks.

During a keynote address, Uday K Varma, Special Secretary, Ministry of Information & Broadcasting, Government of India, said the time frame for digitisation needs to be “staggered” in view of the number of TV homes and players in the market. Digitisation, he said, is essential if the need for greater transparency and accountability for investment is to be met.

Most recent data shows some 84 million (overwhelmingly) analogue cable TV homes, with 18 million DTH households. There are less than 7 million digital cable and IPTV homes in India.

A second high-value address to the meeting came from Andrea Appella, Director of Legal, Competition and Regulatory Affairs for News Corp in Asia & Europe, who picked up on the theme of viable regulatory frameworks, noting that rapid pay-TV market growth follows the implementation of light-touch regulatory policies. Governments should reserve intervention in wholesale TV markets for cases where market failure can be proven, he said.

During panel discussions the industry leadership highlighted that digital sports content will be one of the most effective tools for promoting advanced services such as broadband-based IPTV, HDTV and digital cable.

“The introduction of 3G and HDTV along with the staging of the Commonwealth Games in October will boost new media growth,” said Jawahar Goel, President of the Indian Broadcasting Federation (IBF) and MD of DTH provider Dish TV. “Regional areas where billions of subscribers need broadband services are the silver lining for this industry.”

Rajesh Sawhney, President, Reliance BIG Entertainment said, “IPTV is a sexy technology and along with HDTV and 3G it will change the future of our industry. On the content side, conditions are just right.. If we digitise, we will see around 500 channels in India with more regional channels.”

Despite issues yet to be addressed for the India’s communications sector, regional satellite operators are still very optimistic with the local business opportunities.

“There is vast potential for satellite services in this market. But we also need a regulatory environment that enables more spectrum that can propel HD platforms,” said Terry Bleakley, VP, Commercial Operations, Measat.

“I see India as a most dynamic market. There is a huge demand for satellite services in military, DTH and many other services in India, and I believe that this productive demand will keep rising. However, easy access technology for Internet growth is still required,” said Srini Prasanna, VP, Business Development & Regulatory Affairs, Asia Broadcast Satellite.

“India needs to follow a road map that is pro-consumer supported by a pro-industry approach. Service providers can provide best services for everyone only when the environment for them is conducive and profitable,” said Simon Twiston Davies, CEO of CASBAA. “A light handed approach to regulation is necessary for a robust growth of the sector.”

Source: Voice and Data – CIOL

BANGALORE: Utiba, a mobile commerce platforms supplier has partnered with MyWay IPTV for its electronic top up solution.

This association highlights the capability of utilising a retail presence enabled by electronic media to distribute or collect payment for an electronic commodity, the company said in a statement.

MyWay IPTV is the brand from Smart Digivision, which has entered into long term contract with BSNL and MTNL to provide interactive video services to customers in 54 cities across India.

MyWay IPTV COO Kapil Dev Kumar said, “Association with Utiba enables us to provide our customers easy recharge option so that they can enjoy hassle-free, seamless service. We chose Utiba because they have domain knowledge, technology and a focused attitude towards mobile financial transaction domain.”

Utiba co-CEO Justin Ho added, “With our association with MyWay IPTV we have taken Electronic top up beyond the telecom infrastructure. We have witnessed success for this model with some of our installations in other countries. This is one step short of the customer eventually using his own wallet to make such transactions.”

Founded in 2007, MyWay IPTV Service is offered to customers of fixedline telecom BSNL and MTNL, through their broadband network.

Source: Indiantelevision.com

Aksh Optifibre Limited, the pioneer in Internet Protocol Television (IPTV) in India, which is targeting a subscriber base of 100,000 subscribers by September 2010, has plans to expand its services in Punjab as well.

The company is eyeing 60-70 per cent of the total broadband penetration in Punjab as its potential subscribers for IPTV in coming years.

Having already launched its services across six regions in the state, the company is eyeing more districts this year.

At present Aksh Optifibre Limited has its presence in Jalandhar, Amritsar, Ludhiana, Chandigarh, Patiala and Ferozepur. The company is planning to launch its service from Sangrur as well in couple of months.

Regional Head, Aksh Optifibre Limited Karun Dhawan said the company, that was planning to cover 20 more cities across India by the end of 2010, was looking to add 5- 6 towns in Punjab.

Dhawan said the company was eyeing share in the rural markets of Punjab too. Dhawan maintained Aksh Optifibre Limited intended to increase the subscriber base through aggressive marketing strategy and planned to strengthen its operations in Punjab by expanding its partner ecosystem.

Source: Business Standard

Both state-run operators-MTNL and BSNL-are looking up to games-on-demand (GoD) as they are both experimenting with compelling gaming strategies to attract broadband users.

BSNL Chennai Telephones has recently rearranged its pack of online games, and is now even providing it as a freebie on few monthly plans. The games-on-demand service enables DataOne users to choose and play from a catalog of over 300 games without ever needing to purchase any of the games. Games are being offered either as freebie on select plans or on monthly rental.

The catalog features international gaming addictions such as Need for Speed, FIFA, BattleField, Age of Empires II, Brian Lara’s Cricket, Lara Croft Tomb Raider and Hitman. The premium package also contains over fifty educational games. It has also proposed to add new games every month.

Last December, MTNL introduced a new high speed unlimited broadband plan with unlimited games-on-demand service at Rs 1,350 with 752 Kbps speed. The two operators have tied up with Indiatimes for the gaming services. Though these services have not yet clicked with the Indian broadband users, but the operator strategy is well timed. Indian gaming industry is bound to grow in two-digits in 2010. The PC and online industry is expected to clock a CAGR over 36% between 2009-13. The primary growth drivers for PC games in India are the growing broadband subscribers, multi-functional nature of PCs, and availability and price points of PC game titles.

Gaming is likely to come up in a big way in India. This is why even the DTH players, like Reliance BIG TV, want to take a share from it. Reliance BIG TV has inked an agreement with Indiatimes to introduce DTH gaming services.

The focus on gaming will help PSUs compete with private broadband service providers, but conditions apply. Over the years, both operators have failed to market their services rightly. Close competitors like Reliance Communications, Bharti Airtel and Tata Teleservices too have their gaming packages.

While BSNL has about 20% share in the broadband market, MTNL has been recording remarkable growth in this space. Designing freebies and low price packages may give them some more speed growth.

Though the initial response to the present schemes has been lukewarm, but if sold smartly the operators can hope to kick start some action on the gaming front.

Source: CIOL Network

The Indian arm of the US-based UTStarcom hopes to reach out to cable operators to sell more of its Internet protocol television (IPTV) solutions. In India, a bulk of the 100,000 IPTV connections — from Bharti Airtel’s to BSNL’s — have UTStarcom at the back end. However, Vijay Yadav, managing director, South Asia, UTStarcom, says calling it IPTV has held back growth of the technology that helps data or video to move over internet protocol networks. Currently IPTV solutions form 15 per cent of its undisclosed India topline and broadband forms 80 per cent. Vanita Kohli-Khandekar spoke to Yadav about the possibilities for IPTV in the structurally-flawed Indian TV market. Edited excerpts:

What is the scope for Internet protocol television (IPTV) in a market where cable TV is strong (103 million homes) and direct-to-home (DTH) is doing well (18 million and counting)?
We don’t envisage IPTV to reach the same numbers (as cable). We never viewed it as a service that competes with cable and DTH, it complements them. When a cable user moves to digital, we are very happy because he has moved up the value chain, he understands digital and will therefore understand the value of IPTV. We have started offering IPTV to last mile cable operators (LCOs) in Mumbai on an experimental basis. We are encouraging them to offer it in two TV homes, not for the TV, but for the interactive services.

Why would a cable operator want to offer IPTV?
The cable operator doesn’t want me to touch the broadcast part (read TV), that is his bread and butter. And in any case in broadcast, IP technology offers no differentiation since everyone (cable, DTH, IPTV) has the same channels on offer. It is in the interactive part where there is a value addition. So he can keep sending the broadcast signals over his cable wires and we add the interactivity bit. We are calling it (IPTV) by the wrong name. It is not about the TV but about TV messaging, gaming, TV as education, time shift TV, internet, search — essentially fulfilling all the elementary functions of a home PC. Earlier the thinking was that IPTV was a subset of broadband, but we realise now that IPTV can drive broadband.

What you are doing is stripping the TV from IPTV and selling only broadband…
No. I am selling only the interactive TV part. If this were to happen (cable operators buy into the idea of offering interactive services along with their basic offering) then declaration would improve and so would prices.

In an over-served market like India would there be an appetite for interactive services?
I agree there is the problem of plenty in India. Time shift TV is the killer app(lication) in IPTV precisely because it addresses the problem of plenty. That means you can watch any show that you have missed in the last seven days at a time convenient to you. However till we are able to get an application that makes IPTV an information device, it will remain a premium service. An IPTV subscription costs Rs 249 to Rs 999 against the average of Rs 150 a month for cable and DTH. Over the next three to five years we expect 5-10 million homes to be IPTV-enabled.

Source: Business Standard

Couch surfing has become more than passive television viewing over the past decade. Indian TV sets now have DVD-like picture quality with loads of value add-ons thanks to new technologies like DTH, CAS and IPTV.

Idiot box goes digital

The country has about 130 million television households, including 96 million Cable & Satellite (C&S) homes. As per TAM, average time spent watching television per day was 153 minutes in 2008

Direct-to-home (DTH): DTH consumers receive digital TV channels’ signals through satellite on their dish antennae which are then transmitted to TV through a set top box (STB)

There are seven players and an estimated 20 million subscribers. Dish TV is the market leader; the others are Tata Sky, Sun TV, DD, Big TV, Airtel digital television and the latest entrant, Videocon’s D2H.

The industry expects at least 40% C&S homes to turn DTH subscribers by 2015

DTH offers pay per view where consumers get access to the latest movies for just Rs 75-100

Conditional Access System (CAS)& digital cable: Cable operators use CAS to compete with DTH, where content is beamed to consumers through STBs. But it is limited to parts of New Delhi, Mumbai and Kolkata. The government is yet to come out with a policy to extend it to other cities

The cable industry remains fragmented. Large multi system operators include WWIL, Hathway and Incablenet besides new generation firms, DEN and Digicable

The government recently announced a headend-in-the-sky policy, allowing MSOs to send signals to local operators through satellite. While it will expedite digitalisation, there are still some loose ends

IPTV: Internet Protocol Television allows subscribers to get television content through broadband internet. MTNL, BSNL and Bharti Airtel are offering this service. IPTV is also a digital service offering more channels and interactive services. It is yet to catch up in India

ET Comment

Connect the dots

Several countries have switched to digital television signals, which is where India still has a long way to go. The government needs to encourage faster digitalisation with clear policies on technologies like CAS. The television viewer will eventually benefit as he will get access to better picture quality, a larger number of channels and more control over what he wants to watch. But the big question is, how long will DTH and cable companies survive on the relatively lower levels of ‘average revenue per user’? Indians’ average monthly spend on pay television services is $3.5 compared to $15 spent by Americans.

Source: The Economic Times