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Dishtv announces price hike
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#1
New Delhi: Dishtv, a prominent direct-to-home company, recently announced a price hike of Rs 100 on its Set Top Box owing to the increase in customs duty on the import of STBs from Nil to 5%. The price hike will be effective from July 20, 2009 onward.

Speaking on the occasion, Salil Kapoor, COO, Dishtv, said that, “It was a necessary step due to increase in input cost as there has been an escalation in the cost of Set Top Boxes due to 5% increase in customs duty on the import of STBs. The business model of DTH is based on subsidy and the component cost has also gone up considerably due to the rise in dollar exchange rate in the last one year”.

“We have tried to minimize the effect on consumers by absorbing these rising input costs over the year, but the trend is on a constant rise and we have reached a level where absorbing the entire cost internally seems to be a tough proposition. The increase in the cost still maintains Dishtv's value for money proposition,” Kapoor added.

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#2
So only subsribers has to suffer,dishtv gains profit in this business.for a set top box the price may be 1000-1500Rs+5%tax=75/-Rs.they r charging Rs100/-net profit is Rs 25/- HaHaaa!Smile
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