The direct-to-home (DTH) space, which has so far been witnessing a price war owing to stiff competition, will soon see prices going up by as much as 15%. This is because the weakening rupee against the dollar may increase the cost burden of set-top boxes (STBs), which are imported by DTH operators. Operators, in turn, may increase their prices, which will come into effect from the first week of December. Industry sources said that market leader Dish TV is planning to increase monthly subscription by about 12-12.5%. Since the past few months, all DTH operators have been absorbing the burden of taxes, which may now be transferred to the customers. The price rise comes at a time when most DTH operators are considering introducing high definition (HD) services in India. This would require DTH operators to buy hi-end MPEG4 enabled STBs. The price rise may now force DTH operators to delay the plans of launching HD enabled STBs in the near future.
Tata Sky which has already introduced its personal video recorded (PVR) service is currently charging a high premium for the service. Dish TV had plans to start selling its high definition (HD) STBs by December 2008. BIG TV plans to launch its HD services by Q4 of current fiscal. BIG TV is currently evaluating two variants for its HD service.
3.12.08
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