The JP Morgan report states that the key reasons for this scenario are :
o The 20 per cent foreign direct investment (FDI) limit makes financing options difficult.

o The cross-holding regulations (limiting cross-ownership to 20 per cent) make it unattractive for media companies. There is a perception that the government is not looking at changing these regulations in the near term.

o The open architecture of the DTH STB desired by regulations is not a commonly-used technology. This would also lead to a delay in procuring such STBs.

o The prices of DTH STBs are much higher than CAS STBs.

o The headstart that CAS would obtain would limit the success of DTH. Additionally, the HITS model of CAS, which is very similar to DTH (in C-Band), would eat into the target market of DTH.

o In the absence of the distribution franchise of DTH, as opposed to cable networks, the distribution of STBs could be an issue.