The Hindu Business Line : DTH: Reliance Blue Magic to get space this year

Growing demand
If capacity is available on foreign satellites, then it will be offered
Videocon, yet another aspirant, has made inquiries.

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Bangalore Feb. 27 The DTH space is getting hot and the Indian Space Research Organisation (ISRO) says it can clear the backlog for at least two new players not before end-2008 on its own satellites.

In the queue now as the country's fifth and sixth DTH entrants are Anil Dhirubhai Ambani Group's Reliance Blue Magic and the Sunil Mittal-promoted Bharti subsidiary, Bharti Telemedia. Both hold LoIs from the I&B Ministry.

"We are trying to satisfy the existing customers by the end of 2008 on (ISRO's) Insat satellites," said Mr S.B. Iyer, Director, Contract Management and Legal Services, ISRO. The alternative could be a clutch of foreign regional satellites with India beams, some already in orbit. "If capacity is available on foreign satellites, then it will be offered," Mr Iyer told Business Line.

ADAG and Bharti have each sought eight transponders to start with. Blue Magic would be accommodated on Insat-4CR, due around July this year; Bharti Telemedia would get space on Insat-4G, which is planned towards 2008-end. This should take the Indian DTH tally to 49 transponders.

More aspirants

India is already said to have the largest number of four DTH operators and two more are coming. Videocon, yet another aspirant, has made inquiries.

"DTH demand is dynamic and difficult to measure (as channels expand.) The immediate need is for at least 16 Ku-band transponders," Mr Iyer said. Two mishaps in the past seven months set back Indian region DTH plans.

In July 2006, ISRO lost 12 Ku-band transponders when Insat-4C was destroyed at launch.

The Dutch-owned NSS-8 mishap in January 2007 meant a loss of another eight India-beaming transponders. Each mishap can mean 1-3 years' slide for a satellite operator such as ISRO, which is replacing 4C with 4CR.

Each transponder lease costs the promoter (of DTH/VSAT) Rs 4.8 crore a year, or around Rs 58 crore through the satellite's 12-year lifespan besides other formalities.

According to Mr Iyer, Insat pricing would be 15-20 per cent lower than others.

For now, the national space agency has begun the count down for the launch of 4B on March 10. Seven of 12 transponders on 4B are booked for Sun Direct, which was waiting for almost months since the 4C disaster.

Existing players

Meanwhile, the three current DTH players take up 26 Ku-band transponders: Tata Sky has 12 on Insat-4A; the Subhash Chandra-owned Dish TV has nine and DD Direct has 5, both on NSS-6. Once 4B is in place a couple of months from launch, DD Direct is to take up the remaining capacity on it.