Scope of DTH

SCOPE OF DTH MARKET IN WADALA

EXECUTIVE SUMMARY

In order to achieve the organization goal we should first determine the needs

and wants of target customer so that we can give the desired satisfaction

more effectively and efficiently. The marketing concept states that the

services provider first determines the needs and expectation of the

customers, organize input to deliver the service and achieve customer

satisfaction and earn ultimately profit. The other marketing definition focus

on the relationship and promises of service business activity – marketing

means to establish relationship by giving promises , maintain an enhance

relationship with customer so that the objectives of the organization meet.

The type of research design used in this project is explorative that data is

explored with the help of questionnaires. The population means the customer

(DTH subscriber in Wadala) which is but the sample size of the survey

conducted is 30-40. The survey brought very important issues in to the light

which is that the company does not provide quality network to the customers

and hence the customer face the network and re-top problem. The company

should improve its network quality in order to retain the existing customers

and attract the new customer. The researcher decided to focus on the

customer satisfaction of the DTH customers to give possible findings and

suggestions, if any.


CHAPTER 1

OBJECTIVE OF THE STUDY


OBJECTIVE OF THE STUDYCustomer is the king of the market in this competitive world. The success of

any company depends upon the satisfaction of its customer. Especially in the

service industry Due to the unique features of the service it is very difficult

to measure the satisfaction and benefits derived from the service by the

customer. So the researcher has decided to undertake this topic ‘Scope of

DTH’and special server undertook at Wadala.

Hence the primary objectives of the study are as follows.

1. To find out the extent of customer satisfaction of DTH.

2. Research design of DTH

3. To find out the difficulties they are facing while using the service.

4. To give suggestion and recommendation to DTH company service

provider in the country if any.

5. To understand the customer’s perception and expectation regarding the

service they use.

6. To get knowledge about the DTH in India.


CHAPTER 2

INTRODUCTIONOF THE TOPIC


RESEARCH DESIGN Research is a systematic and intensive study directed towards a more

complete knowledge of subject studied. More formalized means of obtaining

information to be used in making decisions.

Meaning of research design

“A research design is the arrangement of conditions for collection and

analysis of data in manner aims to combine relevance to the research

purpose with economy in procedure.” In fact the research design is the

conceptual structure within which research is conducted; it constitutes the

blueprint for the collection, measurement and analysis of data. As such the

design includes an outline of what the researcher will do from writing the

hypothesis and its operational implication to final analysis of data.

Need for research design

Research design is needed because it facilitates the smooth sailing of

the various research operations, thereby making research as efficient as

possible yielding optimal information with minimal expenditure of effort,

time and money. Just as for better, economical and attractive construction of


a house, a blueprint is needed (or what is commonly called the map of

house) well thought out and prepared by experts architect, similarly a

research design or plan in advance of data collection and analysis is needed

for the research project. Research design stands for advance planning of

methods to be adopted for collecting the relevant data and techniques to be

used in their analysis, keeping in view the objective of the research and the

availability of staff, time and money. Preparation of research design should

be done with great care as any error in it may upset the entire project.

Type of research design

Research design in this project is experience survey which is a

method under the explanatory research studies.

Explanatory research studies Explanatory research studies are also termed as formulative research

studies. The main purpose of such studies is that of formulating problem for

more precise investigation or of developing the working hypothesis from an

operational point of view. The major emphasis in such studies is on the

discovery of ideas and insights. As such ‘the research design appropriate for

such studies must be flexible enough to provide opportunity for considering

different aspects of a problem under study’. In built flexibility in research

design is needed because the research problem, broadly defined initially, is

transformed into one with more precise meaning in explanatory studies,

which fact may necessitate changes in the research procedure for gathering


relevant data. The method in the context of research design for such a study

is:-

Experience survey

Experience survey means the survey of people who have had practical

experience with the problem to be studied. The object of such a survey is to

obtain insight into the relationship between variables and new ideas relating

to the research problem. For such a survey people who are competent and

can contribute new ideas may be carefully selected as respondent to ensure a

representation of different types of experience. The respondents so selected

may then be interviewed by the investigator. The researcher must prepare an

interview schedule for the systematic questioning of informants. But the

interviewer must ensure flexibility generally; the experience collecting

interview is likely to be long and may last for few hours.

Hence it is often considered desirable to send a copy of the questions

to be discussed to the respondents well in advance. This will also give an

opportunity to the respondents for doing advance thinking over the various

issues involved so that at the time of interview they must enable the

researcher to define the problem more consciously and help in formulation

of research hypothesis. This survey may provide the practical information

about the practical possibilities for doing different types of research.

Population


The service provider has a 3.7-million subscriber base and hopes to touch 4 million in next couple of months.

Sample size

Sample size refers to the number of items to be selected from the

population to constitute a sample. The sample size should be optimum. The

sample size of the survey conducted is 30.

Study methodology

Researcher has used the primary data to study on the topic. A well

structured questionnaire was formed and the DTH customer are selected on the

basis of the researcher convince. The questionnaire has given with the option for

each question to the customer and feedback or the opinion has been taken.

Interpretation and graphs are drawn on the basis of the feedback and opinion to

make a conclusion and give suggestions. The researcher has also used the

secondary information to understand the background of the topic from the various

websites, magazine and books.


Limitation faced during the project

During the data collection & during the distribution of questionnaire;-

Information that the project demanded was that how the customer feel about the service

they use i.e. DTH service. The researcher has faced many problems during the collection

of data and distribution of questionnaire.

Some of them are as follows

i) Some of the customers who are not happy about the service are not ready to

discuss about the DTH service. The researcher has convinced them and requested

them to participate.

ii) During the distribution of questionnaire some of the people thinks that it is just

waste of time as they are not getting anything in return. Some of them also told

that the researcher should give some token or gift to them. The researcher has

convinced them by telling that is not for commercial purpose is just for academic

purpose only. The researcher will not sell this information to the third party.


iii) Due to lack of time some customers did not ready to mark the option honestly so

the searcher has given the questionnaire to them to take feedback and collected on

the next day.

iv) The researcher has faced the problem while selecting the customer so the

population has selected on the basis of convenience to the researcher.

CHAPTER 3

LITERATURE REVIEW


INTRODUCTION

Direct To Home (DTH) is a distribution platform for multichannel TV

programmes on Ku band (high frequency of 11.7 to 14.55 Gigahertz) by using a

satellite system which transmits signals directly to subscriber premises.

The term predates DBS satellites and is often used in reference to services

carried by lower power satellites which required larger dishes.

Following are the simplified steps on how DTH works:

1. Broadcaster Sends the signals

2. The satellite receives the signals at Ku Band

3. The Dish Antenna at subscriber’s home receives the signals

4. The set top box decodes the signal and sends it to TV set


History of Indian Television

History of Indian Television dates back to the early 1980s with the only channel

Doordarshan.

The prestigious history of Indian television has envisioned the development

of audio visual media in the nation. During the 1980s Indian small screen

programming began and at that time there was only one national channel

Doordarshan, which was government owned. The Ramayana and Mahabharata

were the first major television series produced. This serial reached the zenith of the

world record viewership numbers for a single program. By the late 1980s more and

more people started to buy television sets.


Television in India has been in existence for about four decades. For the first

17 years, it spread haltingly and transmission was usually in black and white. The

thinkers and policy makers of the country, which had just been liberated from

centuries of colonial rule, though television to be a luxurious element that Indians

could do without. In 1955 a Cabinet decision was taken disallowing any foreign

investments in print media which has since been followed religiously for nearly 45

years. Sales of TV sets, as reflected by licences issued to buyers were just 676,615

until 1977.

The rapid expansion of television hardware in India increased the demand

for developing more program software to fill the broadcast hours. Program

production, previously a monopoly of Doordarshan, the government-run national

television system in India, was then opened to the group of aspiring artists,

producers, directors, and technicians. Most of the talented individuals got

connected with the television industry. Highly popular television soap operas

began with Hum Log in 1984-85, evoked a programming revolution at

Doordarshan. The main lesson learned from this experience was that an indigenous

television program could attract and build a large loyal audience over the duration

of the serial, generating big profits. The advertising carried by Hum Log promoted

a new consumer product in India, Maggi 2-Minute Noodles. The public rapidly

accepted this new consumer product, suggesting the power of television

commercials.


Hum Log, one of the most popular Hindi serials, was quickly followed by

Buniyaad, a historical soap opera about the partition of British India into India and

Pakistan in 1947. In 1987, Ramayana, a Hindu religious epic, attracted smash

ratings, to be then eclipsed by the phenomenally successful Mahabharata in 1988-

89. In the 1990s, serials were in large numbers on Doordarshan. Huge hits included

historical serials such as The Sword of Tipu Sultan and The Great Maratha,

religious serials such as Jai Hanuman, Shri Krishna, and Om Namah Shivay,

fantasy serials like Shaktimaan, and family serials like Shanti, Hum Raahi, and

Udaan. These popular television programs attracted large audiences, and generated

vast advertising earnings for the Indian government through Doordarshan.

Advertisers quickly understood the advantages of advertising their products on a

medium that reached a huge national audience.

Television has come to the forefront only in the past 21 years and more so in

the past 13. There were initially two ignition points in the history of Indian

television. The first in the eighties when colour TV was introduced by state-owned

broadcaster Doordarshan (DD) timed with the 1982 Asian Games which India

hosted. It then proceeded to install transmitters nationwide rapidly for terrestrial

broadcasting. In this period no private enterprise was allowed to set up TV stations

or to spread TV signals. The second turning point in the history of Indian television

came in the early nineties with the broadcast of satellite TV by foreign

programmers like CNN followed by Star TV and a little later by domestic channels

such as Zee TV and Sun TV into Indian homes. Before this, Indian viewers had to

make do with DD`s regulated fare which was non-commercial in nature and

directed towards only education and socio-economic development. Entertainment

programmes were few and far between. And when the solitary few soaps like Hum

Log (1984), and mythological dramas like Ramayana (1987-88) and Mahabharata


(1988-89) were televised, millions of viewers stayed glued to their sets. When,

urban Indians learnt that it was possible to watch the international affairs on

television, they gradually bought dishes for their homes. Others turned

entrepreneurs and started offering the signal to their neighbors by connecting cable

over treetops and verandahs. From the large metros satellite TV delivered through

cable moved into smaller towns, spurring the purchase of TV sets and even the

upgradation from black and white to colour televisions. Doordarshan responded to

this satellite TV invasion by launching an entertainment and commercially driven

channel and introduced entertainment programming on its terrestrial network. This

again fuelled the purchase of sets in the remote regions where cable TV was not

available.

In the mid-1960s, Dr Vikram Sarabhai, a farsighted technocrat and founder

of India`s space program, began arguing in policy-making circles that a nationwide

satellite television system could play a major role in promoting economic and

social development. At Sarabhai`s initiative, a national satellite communication

group (NASCOM) was established in 1968. Based on its recommendations, the

Indian government permitted the concept of "hybrid" television broadcasting

system consisting of communication satellites as well as ground-based microwave

relay transmitters. Sarabhai envisioned that the satellite component would allow

India to leap multiple steps into the state-of-the-art communication technology,

speed up the development process, and take advantage of the lack of infrastructure

(until 1972, there was only one television transmitter in India, located in Delhi).


Eventually, satellite television was introduced in India after surveying the

constant popularity of Indian television. Satellite broadcasting fits naturally with

India`s immense size, and with the ability of satellites to overcome natural barriers

to television signals like mountains. A satellite in this geo-stationary orbit is

believed to be a perfect platform for television broadcasting. The footprint of the

television signal would cover almost one-third of the earth`s surface. Essentially,

satellite communication removes the cost of distance in transmitting television (or

telephone) messages. The initial success of the channels had a snowball effect.

More foreign programmers and Indian entrepreneurs flagged off their own

versions. From two channels before 1991, Indian viewers were exposed to more

than 50 channels by 1996. Software producers came up to cater to the

programming boom almost overnight. Some talent came from the film industry,

some evolved advertising and some also from the field of journalism.

More and more people set up television cable networks until there was a

time in 1995-96 when an estimated 60,000 cable operators existed in the country.

Some of them had subscriber bases as low as 50 to as high as in the thousands.

Most of the networks could relay just 6 to 14 channels as higher channel relaying

capacity demanded heavy investments, which cable operators were unable to

make. The multi-system operators (MSOs) started buying up local networks or

franchising cable TV feeds to the smaller operators for a typical fee. This

phenomenon led to resistance from smaller cable operators who joined forces and

started functioning as MSOs. The net outcome was that the number of cable

operators in the country fell to 30,000. The rash of players who rushed to set up

satellite channels discovered that advertising revenue was not large enough to

support them. Gradually, at least half a dozen either folded up or aborted the high-


flying plans they had drawn up, and started operating in a restricted manner. Some

of them also converted their channels into basic subscription services charging

cable operators a specific carriage fee.

The first private network to capitalize on the opportunity provided by direct

broadcast satellite (DBS) was STAR-TV, headquartered in Hong Kong. "STAR"

stands for Satellite Television for the Asian Region. The network, originally owned

by the Hutch Vision Group of Hong Kong, was founded in 1991, and then acquired

for $871 million by Rupert Murdoch`s gigantic News Corporation in 1995. While

STAR-TV was the catalyst for direct satellite broadcasting into India, its path was

rapidly followed by Indian-owned private networks like Zee-TV, and by foreign-

owned broadcasters like Sony. By the late 1990s, more than 40 private television

channels were available to Indian audiences.

It was estimated that by 2000 India would have the world`s largest cable and

satellite markets with cable connectivity to 35 million homes, comprising some

150 million cable viewers.

The government started taxing cable operators in a proposal to generate

revenue. The rates varied in the 26 states that go to form India and ranged from 35

per cent upwards. The authorities moved in to regulate the business and the Cable

TV Act, which was passed in 1995. The Supreme Court passed a judgment that the

air waves are not the property of the Indian government and any Indian citizen

wanting to use them should be permitted to do so. The government made efforts to

get some regulation in place by setting up committees to propose what the

broadcasting law of India should be, as the sector was still being governed by laws


which were passed in 19th century India. A broadcasting bill was drawn up in 1997

and that was introduced in parliament. But it was not passed into an Act. State-

owned telecaster Doordarshan and radiocaster All India Radio were brought under

a combined company called the Prasar Bharati under an act that had been gathering

dust for seven years, the Prasar Bharati Act, 1990. The Act served to give

autonomy to the broadcasters as their management was left to a supervisory board

consisting of retired professionals and bureaucrats.

A committee headed by a senior Congress (I) politician Sharad Pawar and

few other politicians and industrialist was set up to analyze the contents of the

Broadcasting Bill. It held discussions with industry, politicians, and consumers and

a report was even drawn up. But the United Front government fell and since then

the report and the Bill was not brought under consideration. But before that it

issued a ban on the sale of Ku-band dishes and on digital direct-to-home Ku-band

broadcasting, which the Rupert Murdoch-owned News Television was threatening

to start in India. In 1999, a BJP-led government has been threatening to once again

allow DTH Ku-band broadcasting and it has been talking of dismantling the Prasar

Bharati and once again reverting Doordarshan`s and All India Radio`s control back

in the government`s hands.

The year 2000 will be remembered for a single show in the history of Indian

television. The Indian television industry went on to switch the fortunes of some


promising media companies. Kaun Banega Crorepati, the Amitabh Bachchan

hosted game show based on Who Wants to be a Millionaire, not only became the

most-watched programme on private satellite television but also catapulted Star

Plus into an incredible popular position. On the foundation of the success of Star

Plus, Rupert Murdoch built his media empire. If Subhash Chandra had tasted

success all through these years since Zee launched, 2000 was a turning point in Zee

TV`s history as well.

In recent times, Indian television is said to be in close amalgamation with

the private channels that offers all kinds of entertainment and educational shows in

a perfect dazzling presentation. The Indian television or the small screen has

achieved strata of indispensability. Life without the audio visual media is imagined

to be a standstill one. The glamour packed soaps and serials, reality shows, talk

shows and other entertainment packages encompass a major section of Indian

lifestyle.


CHAPTER 4

DTH Industry in


India

In earlier days there was only one TV channel in India the “Doordarshan”,

Channel doordarshan was owned and operated by government of India. In those

eras every home which had a TV set used to have its own antenna to capture the

signals.

The Cable Television Ordinance Law was passed in January 1995. This

enabled cable operators to feed channels and later on private companies were

allowed to air their own channels and this led to the explosive growth in number of

TV channels and number of cable operators.


India has a total television population of close to 135 million, out of which

80% have access to cable and satellite (i.e. 108 million). The total DTH subscribers

are close to 22 million. Thus the DTH has a market share of approximately 20%.

The subscriber base for DTH in 2006 was meager 1 million. Now for an industry

which is just 5 years old, it is a great achievement.

Let’s have a look at how the DTH industry has grown in these 5 years. In

2005 Dish TV was the only player in the DTH industry and was registering

subscriber growth mainly in the areas where cable TV was not available. The

subscribers were not ready for the cost of set top box. In 2007 CAS mandate was

introduced in selected metro cities, where users had to invest in a set top box.

Though the initiative was not very successful, it gave a wider acceptance to

the DTH and consumer became ready to pay for the set top box. Spotting the

opportunity Sun Direct launched its services in 2007 with a drastically low one

time cost involved for DTH subscriber. Followed by this Reliance, Big TV and

Air-Tel and Videocon launched their services. The market became competitive.

Every player came with innovative offerings, Dish TV offered Movie on Demand

free worth the cost of set top box, Air-Tel and Big TV offered free subscription for

first few months etc. All these things were coupled with aggressive marketing

campaigns. Tata Sky gained the maximum subscribers during this period.

The growth of TV channels & cable operators created a big industry and

market opportunities. Until few years back there were as many as 1,00,000 cable


operators across India. However the services provided by cable operators were

poor. The strikes, increase in tariff plan, selective broadcast and poor services were

major cause of dissatisfaction among the customers. This has created an

opportunity for DTH, which serves an immediate threat to the high-end cable

networks. Some of the key players in the industry are DishTV by Zee group,

TataSky joint venture of Tata & Star TV, Big TV by Anil Dhirubhai Ambani

Group, Digital TV by Bharati Telemedia, SUN Direct from the promoters of Sun

TV. There are some other companies who are contemplating to start their own

DTH like Videocon.

There is an immense opportunity for DTH in the Indian market. The

opportunity in India almost 10 times that in developed countries like the US and

Europe. For every channel there is a scope for broadcasting it in at least ten

different languages. So every channel multiplied by ten, that is the kind of scope

for DTH in the country.


DISH TV

Dish TV is a DTH satellite television provider in India, using MPEG-2

digital compression technology, transmitting using NSS Satellite at 95.0. Dish Tv's

managing director and Head of Business is Jawahar Goel who is also the promoter

of Essel Group and is also the President of Indian Broadcasting Foundation.

DTH service was launched back in 2004 by launching of Dish TV by Essel

Group's Zee Entertainment Enterprises. Dish TV is on the same satellite where DD

Direct+ is. Dish TV started its service in Pakistan with the collaboration of Budget

Communication.

Dish TV was only DTH operator in India to carry the two Turner channels

Turner Classic Movies and Boomerang. Both the channels were removed from the

platform due to unknown reasons in March 2009.


Satellite link

Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17

December, 2002 by European-based satellite provider, New Skies. Dish TV

hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the

satellite was to increase the channel offering as NSS 6 offered more transponder

capacity.

Sun Direct DTH

Sun Direct (Tamil) is a DTH satellite television provider in India, using

MPEG-4 digital compression technology, transmitting on INSAT 4B at 93.5°E.

and MEASAT-3 at 91.5°E. It is the country's first MPEG-4 technology DTH

service provider. It is No 2 in South Asia with a customer base of 5.8 Million

Sun Direct is a DTH service in India, with its headquarters in Chennai,

Tamil Nadu. Sun Direct is a 80:20 joint venture between the Maran family and the

Astro Group of Malaysia. Sun Direct TV was registered in February 16, 2005.

However, the failed launch of INSAT 4C resulted in a lack of transponders,

delaying the launch. The service was finally launched on 18th Jan 2008 after

availability of transponders from INSAT 4B.


Sun Direct offered subscribers a satellite dish and Set-top box for free and

basic monthly plan as low as ₨.75 (approximately). Because of this it achieved 1

million subscribers in 200 days. Currently basic monthly plan costs ₨.110

(approximately).

On July 07, 2010 a power glitch in the INSAT 4B satellite turned down the

DTH system partly and SUN Direct announced that the service will be free till

whole services are restored. The partial service was restored on INSAT 4B with

193 channels and meantime SUN Direct is now transmitting 173 channels on

MEASAT-3 for uninterrupted transition of its customers from INSAT 4B at

93.5°E. to MEASAT-3 at 91.5°E.

Sun Direct HD

Sun Direct is also the first to provide high-definition television services in

India. It broadcasts the HD beam from Measat 3 at 91.5.Starting with two HD

channels (National Geographic Channel HD and Tamil / Telugu HD Service).It is

the first DTH service provider to show IPL 3 in HD format and has tie up with

SET MAX.

Currently it's HD package has,

National Geographic Channel HD

Discovery HD

SUN TV HD * Upscaled

Colors HD * Upscaled

Tamil HD Service


Telugu HD Service

i-Concerts HD Test

Rapid Growth

Because of the lowest pricing of any DTH in India, Sun Direct spread rapidly all

over the country. In December, Sun Direct was launched in Mumbai and

announced its pan India launch. By 2009 it became the leading DTH provider with

3 million subscribers. This makes it the second largest DTH service provider of

India. And In April 2010 it became the No. 1 DTH service provider of India with

5.8 million subscribers; Sun Direct officially launched its HD service in India.

Tata Sky

Tata Sky is a DTH satellite television provider in India, using MPEG-2

digital compression technology, transmitting using INSAT 4A at 83.0°E.

It is a joint venture between the Tata Group, that owns 80% and STAR

Group that owns a 20% stake. Tata Sky was incorporated in 2004 but was launched

only in 2006. It currently offers close to 264 channels (As of August 2010) and

some interactive ones; this count includes some numbers off HD channels offered

by Tata Sky (as Tata Sky - HD) and interactive services also.

The company uses the Sky brand owned by British Sky Broadcasting. In

October 2008, Tata Sky announced launching of DVR service Tata Sky+ which

allowed 90 hours of recording in a MPEG-4 compatible Set Top Box. The remote

is provided with playback control keys and is being sold with special offers for


existing subscribers. In 2008, Singapore-based Temasek Holdings picked up 10%

stake in Tata Sky from the Tata Group. This has diluted Tata's stake in the venture

to 75%.

STAR’s parent company, News Corporation, owns an International group of

DTH businesses that include Sky Italia in Italy and Foxtel in Australia.

Tata Sky+

Tata Sky HD was launched on June 14, 2010, and has channels in their

native resolution of 1080i or 720p. The STB is compatible with 5.1 CH surround

sound as well. Starting with three HD channels National Geographic Channel HD,

Discovery HD, Showcase HD (Pay Per View) more channels such as Star Plus HD,

Star Movies HD and other popular sports channels in HD format are expected to be

added soon. The High Definition DVR was launched in July 2010.

Certifications and Honors

ISO 27001:2005 accreditation

In March 2009, Tata Sky became the first Indian direct-to-home (DTH)

service provider to be awarded the ISO 27001:2005 accreditation, the benchmark

for information security. ISO 27001:2005 is an international standard that provides

specifications and guidance for the establishment and proper maintenance of an

Information Security Management System (ISMS). The assessment for the

certification was conducted by Intertek Systems Certification, the management

systems business unit of Intertek Group. This certification confirms that every

transaction carried out through Tata Sky’s IT systems are highly secure.


SUPERBRAND 2009 – 2010

Tata Sky was selected as a SUPER BRAND for the year 2009-2010 by an

independent and voluntary council of experts known as Superbrands Council. It is

the only Indian DTH to have won this distinction

BIG TV

Reliance BIG TV limited is a part of Reliance Communications Ltd., a

subsidiary of Reliance Anil Dhirubhai Ambani Group founded by the Late

Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil Ambani.

BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIG

Ho" ("If you have a TV, make it BIG"). It currently offers close to 240 channels

and many interactive ones, 32 cinema halls (i.e Pay Per View Cinema Channels) as

well as many Radio channels. The company plans to increase the number of

channels in the near future to 400 and begin High Definition (HD) broadcast. It is

the first Pan-India DTH provider that uses MPEG-4 for broadcasting. There are

also plans to introduce services like i-Stock, i-News and other such interactive

services in the future.


Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing

the consumer with quality and enriched home entertainment service at value-driven

pricing.

The available opportunity today is huge considering the fact that India has an

existing population of 225 million TV households out of which 130 million are

C&S households and 16.5 Million are DTH households. When Reliance BIG TV

was launched, the overall DTH penetration was just about 4 million households.

The pre-launch surveys showed that the biggest stumbling block in the growth of

DTH was the accessibility to the product coupled with the fact that the existing

players were charging anywhere between Rs. 3,000 to Rs. 4,000 per connection.

Even at that price the quality of product being given to subscribers was not up to

the mark.

This understanding gave them the roadmap to launch Reliance BIG TV. They

deployed superior technology to deliver a good quality product, established a vast

network to be able to reach out to consumers and finally a good pricing-packaging

strategy to attract the subscriber.

Reliance BIG TV's launch in August was probably the biggest roll-out in home

entertainment ever. They deployed the most advanced MPEG4 technology that

enabled them to deliver best quality digital audio-video to the consumer. That

apart, it also got prepared for the future when Hi-Definition TV will be launched in


India because only MPEG4 technology can support HD TV and not MPEG2 which

is used by the earlier entrants in the DTH industry.

The MPEG4 technology also gave them advantage of broadcasting at least 50%

more channels compared to the competitors. The superior compression technology

of MPEG4 helps them to broadcast up to 35 to 40 channels per transponder and

with 12 transponders in hand gave them the unique edge of being able to broadcast

over 400 channels. They are currently utilizing only 8 of their transponders to

broadcast over 200 channels. They are offering Channels in various packages like

Value Pack, Bronze Pack, Silver Pack, Gold Pack, Diamond Pack and Platinum

Pack and Reliance BIG TV announces 3 New Packages w.e.f from 16th Feb 2010

which are New Value Pack, Bronze Plus Pack and Silver Plus Pack.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns

in India. This was literally unheard of in the DTH industry. They had effectively

out-stripped the competition here. When it came to pricing – packaging, their

introductory offer stood at Rs. 1,490/- with 3 to 6 months of free subscription.

They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH

player. Not just that, while other players made subscribers pay for each movie,

Reliance BIG TV introduced the unique concept of Subscriber-Video-On-Demand

(SVOD) under which the subscriber paid a monthly subscription of Rs. 50/- to get

a 24 x 7 access to the 21 PPV channels showing Hindi and Regional Films. We

were also the first to introduce dedicated PPV channels for Marathi, Gujarati and

Bhojpuri films.


Airtel digital TV

Airtel Digital TV (Hindi: एयरटेल डि�जिटल टीवी ) is the brand name for Bharti

Airtel's DTH (Direct to Home) service in India. It uses MPEG-4 digital

compression with DVB-S2 technology, transmitting using INSAT 4CR 74°E.

Airtel digital TV service was launched on 8 October 2008. It currently has over 3.5

million subscribers.

Technical information

Airtel digital TV's standard definition broadcasts are in MPEG-4 with Interactive

Service (ITV) and 7-day EPG (electronic programme guide). Interactive Service

(ITV) of Airtel digital TV includes an add-on service that allows a user to shop,

book movie tickets etc. A universal remote is included in the package that can,

over IR frequencies, control both the TV and the DTH box. Like other DTH

service providers, it also provides a Video on demand interactive service that

includes a catalogue of movies in Hindi, English and other regional languages that

can be ordered on demand.

DD Direct+


DD Direct+ (Hindi) is a free Direct to Home (DTH) service that provides satellite

television and audio programming to households and businesses in the Indian

subcontinent. Owned by parent company Doordarshan, DD Direct Plus was

launched on December 16, 2004.

It competes with cable television and other DTH Service providers such as Dish

TV, Tata Sky, Sun Direct, Airtel digital TV, Big TV and Videocon D2H

throughout India.

There are now 37 private channels.

Today the market shares of various players are as follows

DTH Industry Market Share

Brand Promoter Market Share

Dish TV Zee group 30%

SUN Direct Sun by SUN TV 25%

Tata Sky Tata Sons & Star TV 22%


BIG TV Anil Dhirubhai Abani

Group

13%

Airtel Bharati telemedia 8%

D2H Doordarshan 2%

Dish TV : 30%

Sun Direct: 25%

Tata Sky: 22%

BIG TV : 13%

Airtel : 8%

D2H : 2%

PRODUCT LINES AND CONSUMER BEHAVIOUR

Range of products

Set-Top-Box.

Head-Antenna.

Cable

DVD

Remote


LCD TV/PLASMA TV/CATHODE RAY TV/LED TV

Product description

SET-TOP-BOX:

The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.

Head-antenna:

Antenna which receives signals directly from satellites,

Cable:

Cable connects antenna to the set up box.

DVD:

One of the recent entrants into DTH industry is Videocon. This came with set top

box with DVD.

ACCESS CARD:


The access card is another important thing in the set top box setup where the access

card will receive the signals directly from satellite trough head top antenna.

LCD TV:

Some companies are offering the whole set of LCD TV with DTH connection. And

in the case of cathode ray tubes and in case of PLASMA

Remote:

A compactable remote for both SET UP BOX and TV is used in operating both TV

and Set top box.

Complimentary Goods

LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic

and paper which are used for recharge cards.

Substitutes

Local Cable Operators, Inter-Net which is bringing many facilities like live TV

channels, along with the net browsing, Theaters, radio stations, I pods.


CHAPTER 5


CHALLENGES FACED BY

DTH INDUSTRY

1. POLICY AND REGULATION

Being a nascent industry, there are lots of teething issues with the current policy

framework and the way it is regulated in reality. Some of the notable changes faced

are as below:-

Lack of excusive content

In the global DTH market, competition is mostly on providing niche content.

In India, TRAI does not allow a broadcast to offer content exclusively to a specific

player. Hence content differentiation as a USP is not possible currently in the India


scenario. TRAI has clearly indicated that exclusivity can be provided only when

DTH market matures and there is prefect competition in the market place. But

DTH operators are feeling that without content differentiation, the competition can

only be on price which may even cannibalize the industry.

The rule of “Must Carry”

DTH operator is obliged to carry all the channels provided by every

broadcaster on a non-discriminatory basis. However, with the capacity constraints

in place, this on a feasible. So in cases, where the operator is willing to broadcast

only the popular channels, the broadcasters either deny giving the entire bouquet or

charge prices for the complete bouquet. The litigations shows the extent of

problems cropping up due to this clause.

Operators like Dish who have more transponders and operators who have a

cable company backing like Sun Direct are supporting the “Must Carry” clause

where as transponder-scarce new entrants like Bharti Airtel are against this clause.

Cap on Foreign Investment

As per the current policy, the total foreign equity including

FDI/NRI/OCB/FII cannot exceed 49% and within that FDI component cannot

exceed 20%. This would reduce the interest of foreign investors as they cannot get

a controlling stake in the company in spite of a heavy investment. On the contrary,

up to 74% of foreign equity, with no limit on FDI, is allowed in the Cable industry.


With DTH being a capital intensive industry, these limitations hurt the expansion

plans of the cash constrained operators

Cap on Cable Company/Broadcaster Investment

In order to ensure a fair competition, the current regulations restrict the cap

on Broadcasting/Cable company investment in the DTH venture to 20% and also

prevent the DTH firm to hold more then 20% in a Broadcasting/Cable company.

As one can see, DTH operators are able to overcome this challenge by spinning of

new companies. But removing this would reduce the bureaucracy involved and

also reduce the content cost for an operator due to the synergies created between

him and the Broadcaster.

Interoperability issues

TRAI mandates an open architecture for STBs to ensure technical

interoperability but in reality this is not being implemented. However, with

increasing consumer awareness, the dilution of this rule would soon be corrected.

In addition, in the recent consultation paper, TRAI also wants out the commercial

interoperability (The ability to return a purchased STB or lease a STB) route.

Although this is good from the consumer point of view, DTH operators cannot

build a switching cost for the end user


2. Non-availability of Transponders

A ku transponder can be used for12 to 20 channels depending on the

compression (MPEG 2 or MPEG 4) technology used in the satellite. A DTH

operator will at least need 5 to 8 transponders to compete in the market.

Right now, ISRO has INSAT 4A and INSAT 4B in the orbit with 12 Ku

transponders each. The next in the line is INSAR 4CR due in September 2007,

which will up another 12 Ku transponders. INSAT 4G was launched in 2009-10

with a capacity of 18 Ku transponders. Also with the launch of INSAT 4G, ISRO

would have used up the entire spectrum that was allotted to it by WARC, ITU.

Even with 54 transponders by 2010, with 7 operators, the demand-supply gap is

huge with each operator getting approximately 150 channels. Also if any of these

launches fail like INSAT 4C, it may spoil the plans of DTH operators.

Current regulation stipulates a DTH operator to use only Indian satellites or in

case of foreign satellites, they have to be approved and leased by ISRO.

3. Quality of Service Issues

There are couples of QoS issues which currently affect the DTH operators.

They are

Technical Glitch – Rain Fade

By definition, Ku band signals get weakened by rain and snow. This results

in reduced image clarity and sometimes total cutoff. This is a fundamental problem

with the design of the transmission frequency. In India, people are glued to their


TV soaps and sports events like Cricket matches. So even a tiny service disruption,

during these events is seen as a major weakness of the DTH platform.

Poor Levels of Service

A search on India’s popular consumer forum Mouthshut.com reports that

only 28% recommend Dish TV and 57% recommend Tata Sky. Even with the

skew for errors and incorrect data, this shows the low satisfaction levels of

consumers. Some of the glaring complaints are Poor after-sales support, Removal

of channels off air without notification, Open-ended contractual agreements

favoring the operators and Lack of grievance cells.

CHAPTER 6


COMPETITION IN

MARKET

The structure of the DTH industry in India can be categorized as an

“Oligopoly”. The word Oligopoly is derived from the Greek for few (entities with

the right to) sell. An oligopoly is a market form in which a market or industry is

dominated by a small number of sellers (oligopolists).


An oligopoly is a market dominated by a few large suppliers. The degree of

market concentration is very high. Firms within an oligopoly produce branded

products and there are also barriers to entry.

Key characteristics of “Oligopoly” are following:

Few larger supplier dominates the market

Interdependence between firms

Each firm produces branded products

Significant entry barriers into the market in the long run which allows firms

to make supernormal profits

Each oligopolist is aware of the actions of the others.

Analysis of Indian DTH industry:

Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+

was launched since DD Direct+ is non commercial and free DTH hence we would

focus our discussion on private players in the industry.


As of now Dish TV, Tata Sky, Big TV, AirTel Digital TV, Sun Direct are in

the industry. There are some other players like Videocon, who want to join this

highly lucrative industry. Since there are only 3 major players and the market

concentration is very high Indian DTH industry is oligopolistic.

Entry Barriers in DTH industry

The DTH industry is a high tech industry and it requires lot of capital

investment. The initial cost of setup for the company itself is very high, it requires

tranponders and other high tech equipment. The following entry barriers exist in

DTH industry

1. High initial setup cost of satellite, transponder and other higtech

equipment: The initial cost of setup for broadcaster is hugh so this acts as a

big entry barrier.

2. DTH is a low margin and high volume industry: DTH though is a

lucrative business however it is a low margin and high volume industry. For

a new entrant to succeed it has to ensure that it builds customer base soon

other wise it will not be possible to make profit.


3. Cost of a set top box: The cost of setup box installed in a home is still very

high and the cost of a set top box is a significant entry barrier. Higher

number of subscriber can bring down the cost incrementally.

4. Pricing has to be competitive versus cable: For a new entrant to be

successful it is going be very difficult as they entrant will to compete with

local cable operators as well as existing DTH service provider. There are

already established players in the market and the price war has already

started.

5. Differentiation through content: There are hundreds of TV channels in

India and as per the industry reports there are close to 150+ channels waiting

for approval, this take the numbers to 400 different TV channels. So

providing the right content to the right consumer will also play a critical role

in success of new entrant, differentiation through content is must.

6. Customer Service: The quality of customer service will be a key

differentiator. As Indian consumer are habitual of calling the cablewalah

whenever there is some issue. A new entrant will face challenges in two

fronts; One to ensure that it is providing better customer service than local


cable operators and on the other hand it has to provide better customer

service than existing DTH service provider.

7. Multicultural & Multilingual Geography: India being a multicultural,

multrilingual society it is very important for the new entrant to ensure that it

maintains a fine balance between the regional and nation flavor.

8. Long gestation and break even period: It takes lot of time to for a new

entrant to stabilize and grow in this industry. Even achieving the break even

period is comparatively high. The Dish TV from Zee which was launched in

2003 will reach break even in 2009(6 years) and Tata Sky launched in 2006

hopes to break even in 5-7 years. This long break even period is a significant

barrier for new entrant.

9. High Cost of content: The cost of content is high in this industry and poses

a serious challenge for the service provider.


CHAPTER 7

AREA

WADALA

Wadala (also spelled Vadala, formerly spelt Wuddala) is a residential central

suburb of the city of Mumbai. Wadala Road is a station on the Harbour Line of

Mumbai's railway network.


Overview

Wadala has several schools and some renowned institutions like Veermata

Jijabai Technological Institute (V.J.T.I), The University Institute of Chemical

Technology (formerly The University Department of Chemical Technology

(UDCT)) and Khalsa College, located near one another. SNDT Women's

University, Dr. Ambedkar Commerce & Law College also has a campus in Wadala

West. The local college of wadala is SIWS near to wadala station.

It also houses one of India's best eye hospitals, Aditya Jyot Eye Hospital

along with the BPT Hospital and the Ackworth Leprosy Hospital. The Ackworth

Leprosy Hospital was established during British rule, and part of its complex is

now given to an AIDS awareness organisation as well. The world's first methane

generation plant was set up in the Ackworth hospital complex.

Wadala used to be considered as a central suburb of the city of Mumbai, but

is now well within the city limits. The area is bordered by Dadar on the West,

Matunga on the Northwest, and Sewri on the South. The western areas of Wadala

are covered by salt pans, which are on the shores of the Thane creek. On the

Eastern border of Wadala, MMRDA has planned to construct a truck terminus,

spread over 115 hectares (1.15 km2). Mumbai will have for the first time a centralized facility for

the transport of goods by road.


Matunga Sion

Dadar Salt Pans, Thane creek Wadala

Parel Sewri

Landmarks and architecture

IMax Wadala is the world's largest IMAX dome theater.

Vidyalankar Institute of Technology.

Our Lady of Dolours Church Wadala. The church is situated inside the

campus of St. Joseph's High School, Wadala.


Wadala has a large number of old temples, university campuses and is also

home to the world's largest IMAX dome theater. It is also home to the Vidyalankar

Educational Campus, whose building design has won an international award viz.

Designshare's Honour award. The BEST Transport Museum is also located at

Wadala’s Anik Bus depot. It features amateur mini models of BEST buses and the

ancient trams.

Wadala (East) houses two cemeteries - the Bahá'í Cemetery and the Chinese

Cemetery. These cemeteries were laid out in Wadala a long time ago, for the same

reason that the Ackworth Leprosy Home was built at Wadala viz. Wadala was

considered a distant suburb of the city.

A number of housing colonies exist in Wadala. Some of them are Bhakti

Park, Dosti Acres, Eucress and Lloyd's Estate. Wadala East also has the BPT (now

MBPT housing colony), a large sprawling colony for the port workers complete

with a hospital. Near Antop Hill, the government of India established the

Intellectual Property Office responsible for Controlling General of Patents,

Designs and Trademarks in India.

Over the years, slum development had started in Wadala adjacent to the

railway tracks and a large colony started to settle. In 2006, the state government

took action and cleared the area of slums.


Utilities

Wadala is supplied electricity by BEST. Wadala experiences very few

electricity cuts in a year, if at all. There are a number of schools, colleges and

hospitals. There are police stations in both Wadala West and East. The Voice of

Wadala is the neighbourhood newsletter, in print since 1988. One of the concerns

for residents of Wadala is that it does not have any malls or supermarkets. For

shopping, one has to use local shops, or travel to Matunga or Dadar.


CHAPTER 8

DATA ANALYSIS &

INTERPRETATION


Scope of DTH Market in Mumbai, Wadala.

Questionnaire

1. Name:

2. Gender?

ANS. O Male O Female

3. . Do you known about DTH?

ANS. O YES O NO

2. Which DTH service do prefer? Why?

ANS. O Dish TV O Sun direct O Airtel O Big TV O Tata sky O Others.

3. Are you satisfied with the service? Why?

ANS. O YES O NO

4. Do you think that DTH is easy to use/operate?

ANS. O YES O NO

5. Is DTH more convenient as compared to cable service?


ANS. O YES O NO

6. Is DTH service satisfactory compare to cable service?

ANS. O YES O NO

7. If you are given chance to switch to DTH from your local cable operator will you?

ANS. IF O YES, Why

IF O NO, Why

8. Does other members of your family like the DTH service?

ANS. O YES O NO

9. What are the drawbacks found in DTH service?

ANS.

10. If using cable service, why not DTH?

ANS.


CHAPTER 9

FINDINGS


FINDINGSFrom the survey conducted following findings have come into the light. The

findings are mentioned below:-

1. Many of the customer/people are aware DTH connection and

majority in the customer are head of the family who had purchase it.

2. Majority of customer have chosen DTH because their friends i.e.

positive word of mouth and friend’s recommendation and ad’s seen in

television are using.

3. Majority of the customer’s are satisfied with the product, due to the

picture quality, function, extra features, etc.

4. Many of the customer said that DTH is easy to operate but on the

other hand customer said that it is not so easy.

5. Majority of the consumer’s feels DTH is more convenient then cable.


6. DTH service is more satisfactory as compare to cable service,

according to the majority of the customer’s s.

7. Majority of the customer are ready to switch to DTH service from

cable service if they again given a chance.

8. Still the majority of the people feel that the customer care department

could be made much better. This means that the customer care

departments are not up to the mark as per the customers’ expectations.

9. Majority of the customer who are using DTH service their other

members in the family also like the service.

10. Majority of the customer faced the problem recharging the service

and reset of the channels.

11.Majority of the customer refuse to answer of this question and some

has given the negative feedback to this.


12.Majority of the customers feel that the overall service provided by the

operator is satisfactory.

CHAPTER 10

SUGGESTIONS &

RECOMMENDATION


1. It is found that majority of the customer uses the DTH due better picture

quality as compare to Cable

2. It is found that around half of the customer have chosen DTH because their

friends so the DTH company should focus on the important of positive

words of mouth and feedback of the customers by building the relationship

with them. Even single dissatisfied customers can spread negative word of

mouth to his hundreds of his friends and relatives.

3. The maximum customers spend between 200 to 400 rupees monthly which

indicate the price of all channel is very reasonable.

4. The major problem of DTH is network and recharge facilities which is core

service in the service industry, so DTH should keep this in mind and do their

marketing and planning strategy.


5. There are some people who get the manual response from customer care

after a long time. So DTH must find out the problem and should employee

more customer care, centers.

6. There is some percentage of people whose problem is solved after 2 to 3

days. So it should find out where the things have gone wrong during the

solving of problem.

7. Majority of the customers said customer care would be made much more

better, means they should find out the weakness, so that they can deliver

their hundred percentage to the customer.

8. The image of postpaid service is very bad in the customers find, so the

company should improve this by giving proper service in addition to the

attractive plans.

9. Majority of the people are waiting for the number portability proposal. Even

the satisfied and the happy customers also enthusiastic about this. The

company may give better service and special package to the customer and

make them feel better about service. They should work hard to make each

and every customer honest.


CHAPTER 10

CONCLUSION


CONCLUSION

In this competitive world customer is the king of market. The expected

service of the customer should be match with the delivered service of the

company.

With the effecting and proper communication and marketing strategy a

company can built and maintain the positive relation with its customer and

will probably results in to a successful customer relationship which is

essential for organizational success and developments. DTH is one of

booming sector, company should force on there customer relation and

marketing planning. Customer positive attitude play important role in

organizational success and development.


CHAPTER 11

BIBLIOGRAPHY


WEBSITE

www.Google.com

www.sundirect.in

www.airtel.indigitaltv

www.dishtv.in

Books and magazine

India today’s

Economic Times


Documents

Scope of DTH