Sky had dropped its base pack price last year from Rs 240
to Rs 180 amid stiff competition from the other DTH operators.
digital TV is also expected to follow suit. However, Bharti
Airtel CEO of DTH/ Media Shashi Arora did not want to comment
on the issue.
route Videocon would take could not be confirmed as its CEO
Anil Khera was not available for comment. Videocon d2h, which
manufactures its STBs, plays the volume game and has the fastest
growth in incremental subscribers.
Direct, the Sun Group DTH company, will have less of competitive
pressure to hike prices as the tendency (like Dish TV) is
to leave the South India packs untouched. The south market
is very price sensitive and Sun has based its rapid subscriber
growth on low ARPUs.
The move by DTH operators comes at a time when the sector
is facing slow volume growth compared to the last few years
of explosive subscriber expansion. In FY'12 the sector is
estimated to have mopped up 9.5 million, down from 12 million
in the previous year. Industry estimates peg the DTH sector
to add up less than 9 million subscribers this fiscal.
time has come for the industry to balance between volumes
and price points. We were waiting for the rupee to appreciate
but there are no signs of it yet. The cost of STBs has been
affected by 17-18 per cent, says a Dish TV official.