http://www.financialexpress.com/news/Indian-digital-cable-TV-mkt-to-rank-2nd-in-Asia/326533/

Indian digital cable TV mkt to rank 2nd in Asia
Soma Das
Posted online: Tuesday , June 24, 2008 at 2155 hrs

New Delhi, Jun 23 In four years time, India will overtake Japan and
three other countries—Australia, Hong Kong and South Korea —to emerge
as the second largest digital cable TV home market (after China) in
the Asia-Pacific region, according to reports of independent media
research firms, Informa Telecoms and Media group and Media Partners
Asia (MPA).

However, in terms of digital cable TV penetration of TV homes, India
will still lag behind China, Singapore, Australia, Japan among others
at 7% in 2012 from the current 1%.

The modest pace of digital upgrade in India is attributed by the MPA
report to lack of investment, regulatory barriers and last mile
fragmentation. MPA forecast indicates that total digital cable
subscribers will grow to 154 million by 2012 in the region and to 209
million by 2017. This implies that close to 60 % of the region's cable
homes will have at least one Set-top-box by 2017.

China will lead the market with 165 million digital cable subscribers
forecasts by 2017, observes the report. Digital cable home volumes is
expected to expand in India to over 12 million in 2012 (almost double
the number of subscribers in Japan) and 22 million digital cable
subscribers by 2017. This will still represent less than 20% share of
total cable subscribers. Korea and Japan together will account for 16
million digital subscribers by 2017 with Japan reaching 100%
penetration by 2014.

According to Cable and Satellite Broadcasting Association of Asia
(Caasba), India, "Digital television and broadband adoption is slow in
India because of restrictive regulations. Cable consumers are
increasingly marginalised, digital divide continues to remain big and
the contribution from digital broadband to the economy is lacklustre."

According to Caasba, to reach growth potentials, Indian policy-makers
must abide by the path charted out by the prime minister's office,
Planning Commission and Trai in particular and implement
'lighter-touch' regulations that are appropriate for the digital age.

In terms of digital pay TV subscribers, India will cross Japan by 2012
to reach over 38 million subscribers and 56 million subscribers by
2017 from the 6-million mark today. The report notes that aggressive
competition from DTH players, slow but steady flow of capital,
emergence of large and acquisitive MSOs will boost the market for
digital pay TV.

As per a Casbaa report, "Pay-TV's future growth in India and in Asia
generally is largely dependent on digitisation, a transformational but
capital-intensive process set to unlock substantial value for
consumers,economies and industry stakeholders."

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