ZEE TV YET TO DECIDE ON ASIASAT 3S SHIFT;
RISING SHARE PRICE BEING PROBED

Even as Star TV announced the migration of its channels from Asiasat 1 and Asiasat 2 to Asiasat 3S, Zee Network, the driver of the Asiasat-1 platform in India says it has yet to decide on its shift to the new satellite. The Zee Network runs a bouquet of channels including Zee TV, Zee India TV, Zee Cinema off Asiasat-1 and Music Asia off Panamsat-4.

"If we find the terms on Asiasat-3S attractive, we will move the Zee channels to it," says Zee TV spokesperson Ranjan Bakshi. "Currently, we have not made up our minds."

He says a decision, however, has to be reached by the end of the month as Asiasat-1 is at the fag end of its life. The network has been in talks with Panamsat, Thaicom, Singapore Telecom and Intelsat for transponder leases, apart from Asiasat. "We are looking at both digital and analogue delivery of our signals," says Bakshi.

A parting of ways between Zee TV and Star TV from a common platform - should it occur - could have a short-term impact on the latter. The reason: Indian cable TV operators may prefer to point their dishes towards any satellite that the Zee Network hops on to. This would result in a drop in homes tuned into the Star TV network. Some may also be loath to buy a new dish for the Star TV Network, though it is not too expensive.

Meanwhile, the Zee Telefilms Ltd (ZTL) share surged to a new high of Rs 1,522 on the Bombay stock exchange over last weekend on the back of reports that it would go ahead and merge its international operations with it. The rapid rise has brought with it an allegation from a broker that the price of the ZTL share is being manipulated on the stock exchanges. The stock market regulator, the Securities Exchange Board of India (Sebi), is investigating the allegation.

The central bank, the Reserve Bank of India, had earlier announced that the foreign institutional investor (FII) investment limit in ZTL had touched 28% and hence brokers should accept no more orders from FIIs.