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The price point for IPTV is now similar to DTH services
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#1
What are the growth drivers for IPTV in the country today?
We feel that we will have two to three lakh subscribers by the end of this fiscal. The main driver for IPTV is that the price point is the same as DTH. It is different and much better than the current DTH services being offered. There is broadcast TV, where IPTV can provide any number of channels instead of a specified number of channels like in cable system. We are able to offer a number of options like different movies, music, etc, in the on-demand section and a lot of Internet enabled services like email, e-commerce as well as information enabled services. We plan to have 3 mn subscribers by the end of 2012.

How are your services different from your competitors?
We have priced our services very competitively. A subscriber has to pay only Rs 2,000 for installation, set-top box and free channel viewing for three months. The price points are roughly similar to what DTH offers. We would be launching our services in fifty-four cities. As of now we are actively marketing in NCR and eastern Uttar Pradesh. Also, we would be launching our services in Hyderabad, Kolkata, Bengaluru, Pune, and Ahmedabad.

What are the major challenges you are facing in the market?
Awareness is the biggest challenge since plain advertisement is not enough. We are planning to conduct a number of roadshows at RWAs and local markets to educate the customers. This would be supported by advertisements. Besides this, IPTV should be able to offer content which is different from what broadcast channels offer. We have tied up with content developers like Diamond Comics, UTC, and Shemaroo for offering innovative content to our customers.

What is your investment plan?
We have already invested around Rs 60 crore in setting up infrastructure, network, etc. We would be investing around Rs 30-35 crore by the end of FY 2009-10. It will take us three to four years to break even.

How do you think the market is likely to evolve in the next couple of years?
We believe that the prices will remain competitive and the end user will have better quality and more choice. Like DTH helped the customer to move from analog to digital, IPTV will help in taking this movement even further.

What kind of revenue is likely to be generated from advertisements?
There is a lot of potential. For instance, advertisements can be targeted according to the cities. Globally, around 20% of the revenue comes from advertisements. In the long run, more the revenue comes from advertisements, cheaper will be the services for the subscribers.

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#2
I am having one doubt in IPTV. Suppose if my broadband connection doesnt work will it affect my IPTV viewing? Can any one please explain me???
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#3
I thnk mr. satish can gave u better explanation.
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