(5 February 2008 5:25 pm)

MUMBAI: In a bid to ramp up subscribers, direct-to-home (DTH) service provider Tata Sky has dropped its hardware prices including set-top box (STB) by 50 per cent to Rs 1,499.

Tata Sky has, thus, decided to drastically reduce the entry cost for its subscribers which have already crossed 1.5 million. The company says that a rapid subscriber ramp-up in a short span of 16 months has resulted in a large costs savings for the company, a portion of which it is has decided to pass on to its customers.

The Tata and Star joint venture company is also launching a personal video recorder (PVR) this year which will help subscribers pause live television, record multiple programmes and enjoy true video-on-demand.

Tata Sky Ltd MD and CEO Vikram Kaushik said, "It is the confidence shown by the customers in our service that has helped us achieve the unparalleled feat of 1.5 million connections within 16 months of launch. Hence, it is more than fair that we share the benefits of this feat with them. With our hardware priced at Rs 1,499, our world-class service will now be affordable for consumers across all strata of the society."

Tata Sky is available in almost 5,000 towns and has also added recently launched channels like 9X, NDTV Imagine, UTV Bindass, NDTV MetroNation, taking its offering to over 150 TV channels and services. "Actve Darshan," "Actve Learning" and "Actve Stories" are amongst the recently launched interactive services.

With Reliance ADAG and Bharti Airtel readying to launch, the DTH market is expected to see price warfares. Zee Group's Dish TV, however, has said that it was not considering any reduction in its hardware pricing.