According to Frost & Sullivan, Videsh Sanchar Nigam Limited (VSNL) should got with a partner for its project Direct-To-Home (DTH) project. VSNL is expected to take a decision on this over the next 4-6 weeks.
Any DTH project involves a large investment from the customer’s end and VSNL doesn’t posses adequate experience in the area of providing content, said VSNL director for finance R S P Sinha. According to him VSNL may tie-up with a broadcaster or a potential investor.
According to VSNL officials the single most important deterrent to DTH has been the fact that it involves a substantial investment from the subscriber’s end. It was in November last year that Indian Government decided to permit DTH service in Ku band.
The guidelines from the government allows DTH in three categories – those that have only TV/Video channels as content, interactive services employing downstream Internet and two-way Internet using satellite dishes. It is predicted that DTH by itself will establish a subscriber bas of three million by 2003 along with revenues to the extend of Rs 1800 crore.