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Digitization

According to the IAMAI report, the total number of Internet users in India has crossed the 100 million mark in November 2011, which embarks the digitization wave in the country. Another feather in the cap to this achievement is the acceptance of the recommendations of TRAI for implementation of digital addressable cable television systems in India by the Information and Broadcasting (I&B) ministry.

With Digitization, the ultimate beneficiary will be the customer who will get an enhanced television viewing experience. Leading DTH players like Videocon d2h, Tata Sky, Dish TV and Airtel would also be largely benefited by this as the analog Cable TV subscribers are likely to switch to any of these BIG DTH players which will in turn help significantly in increasing the ARPU (Average Revenue per User). The Broadcasters also will be able to get the accurate number of their subscribers through this digitization, which is not possible with an analog cable thereby increasing their subscription revenue.

The Bill seeks to digitize the analog cable sector in the country by 31st Dec, 2014. The plan is to digitize the cable television in the 4 metros by June 30, 2012. After this, the target will be cities with a population above 10 lakh and finally the rest of India. Experts believe that this digitization process will require investment to the tune of Rs. 40,000 Rs. 50,000 crore.

Now since the bill is passed, DTH players are not leaving any stone unturned to attract consumers to switch from analog cable to digital DTH Services. DTH players like Videocon d2h, Tata Sky and Dish TV are also focusing to digitize the whole building instead of single apartments which are called Multi Dwelling Units (MDU). The benefits of Videocon d2h's MDUs are clutter free terrace, systematic wiring, no line of sight issue, one single antenna and the cost.