1. CONVERGENCE broadcast telecom ….The Journey Begins !!!
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BES Expo and Conference’ 2007; 1st to 3rd Feb’2007

2. Indian Broadcast Industry
MSOs across Country 6
Number of Cable operators
30000
On path of digitalisation
Head-end in the Sky (HITS)
under consideration
Indian Broadcast Industry
No. of FM Channels 192
Additional 233 stations (Private) operational byMay’07
Television Reach 112 million homes
Cable & Satellite Homes 68 million homes
DTH Subscribers estimated at 5 million
Radio reach 99.13% of population
Number of Radio sets 145 million
Number of Radio sets with FM 86 million
Broadcasting mix of Govt. & Private
All broadcast activity under Regulation
Digitalisation & Newer technological applications on way
DTH Operators 03
2 more to follow
Subscriber base fast
catching up

3. Indian Telecom Boom Tele-density over 15% rising from 2% in 2000
In year 2000, this figure was just 2%
Indian Telecom Boom
Tele-density over 15% rising from 2% in 2000
Mobile telephony opened in 1995; subscriber base 130 6mn per month
Land (Wired) phones 40 million
Fastest growing market in Asia
Both CDMA and GSM technologies in practice
Overall revenue rise to Rs. 86,720 Cr
Three Telecom companies estimated in first 10 biggest companies

4. Internet Scene
Internet penetration is alarmingly low …does not find relevance with the global scenario as well as the national economy.
Countries like Macau, Poland, Iceland and Israel are far ahead than India
India’s broadband penetration is below 3% in urban sector; whole India penetration is less than 0.5%.
Estimated 60% of internet users depend on more than 10,000 cyber-café
ISP –389; Internet subscriber less than 8mn
Revenue in is Rs 492 cr
Internet subscribers is projected to touch 18million figure by the end of 2007

5. Indian Market Scenario
Indian Media industry growing at 15%; faster than National Economy in last few years
Trend continues --Business Optimism Index for first half of this year is higher by 14% than last year
Media expenditure increases across– Radio 24%, Internet 35% and Television 19% in the year ending 2005.
E-Sales/Commerce activities on rise – increase by over 95% in last one year
Telecom revenue rising by around 21%
Global figures much higher…. Europe during similar times showed 230% rise

6. INDIAN MEDIA CONSUMER CHARACTER
Late Starters
Varied Tastes
Conservative in approach
Cautious Regulatory Eye
Non-Tech Savvy Viewers
Discouraging personal economy
Result: Delayed Technological
applications & acceptance !!

7. INDUSTRY
EVOLUTION

8. 25 years; Plurality of Television Alternatives;112 mn viewer homes
Evolution of TV Broadcasting
Single TV channel
- Single Platform (Terrestrial)
Multi TV Channel Bouquet
- Wired Platform (Cable)
Multi TV Channel bouquet; few niche channels
- Multi Platforms options
( both wired & Unwired)
25 years; Plurality of Television Alternatives;112 mn viewer homes

9. Evolution of Telecom Sector
Started 125 yrs back by Private company, in Govt. hand in between & now mix of both.
Phase 2 >> Wired Telephone  Service provider Market Rare Long-distance calls
-- Long queue for connections
Phase 3 >> Advent of STD/ISD facility – PCO rains
--Talking culture cultivation, Employment/Business scene
Phase 4 >>Mobile Telephony Arrival – Talking revolution
-- New era of telecom
-- Multiple options User market
125 years; Multiple Telephony Options; 170mn users

10. Evolution Of Data Service
Internet an imaginary concept a decade ago
Development of infrastructure –670,000Km of
fibre laid
-Enhancement of Connectivity
- Lowering of cost
Huge dependence on networked Information
(Education to Business to Entertainment)
Internet/Broadband penetration still quite low
10 years; Life’s essentiality;
Over 7mn Internet users; 389 ISPs; More than 10,000Cyber cafe

11. The Consumer Behavior Evolution
Trend towards Mecasting/Egocasting
Zero Tolerant
Looks for alternative solutions
Wants more value of money
King of the aspects

12. Business Mandates… Edge out competitors Value added deliverables
Enhanced Profitability & Valuation
Relevant Result –
Telcos incorporate Video/audio in their product
&
Broadcasters/Distributors tempted to provide Voice & Data service

13. Evolution of Functionalities
Telephony
Voice Fax
Photography
Images
Publishing
Newspaper
Broadcasting
Audio/Video
IT system
Internet

14. Thus..Arrives Convergence !!! …with Spirit of Intercativity.
Evolution of Functionalities
Images
SERVER
WITH
STORAGE
Voice
Distribution
Platform /
Application
Text Information
Thus..Arrives Convergence !!!
…with Spirit of Intercativity.
Broadcasting
IT system

15. Convergence Drives Use of Office PC for watching TV Channels
Possibility of TV Receivers at Home to access internet
Value added services like Radio Data services
Interactive Broadcasting --- User participation
Optimisation of business models

16. Factors Driving Evolution
Enhancing Economy … increased spending power
Market competitiveness calling for value-add on by the service providers
Technological advancements… creating enhanced solutions & applications
Consumer behavior…more demanding
Social Values -- changing life-style owing to reducing average age & increasing literacy levels

17. Convergence TECHNOLOGY APPLICATIONS …Device Driven …Operator Driven
Multiplay Workstations & TV Sets
Mobile Ph with FM/
MP3/ GPRS and now TV
Mobile Operators providing
video services
DTH/Cable Operators providing Voice/data and interactive services

18. TECHNOLOGY SUPPORT Efficient Compression algorithm H.264(MPEG4/AVC)
Efficient Modulation techniques
Advanced Connectivity Modes like Wimax
High speed & reliable Network design tools
Strong Internet Protocol (IP) formats
Low cost and reliable Storage
Sensitive and user friendly receivers
Return path techniques –DVB(RCS),Internet,VSATs

19. Networked Life Source of Products & Services VIEWS E-SHOPPING NETWORK
NEWS
INFORMATION
TELE-EDUCATION
MARKET
TELE-MEDICINE
NETWORK
ONLINE BOOKING
SURVEILLANCE
MOBILE
DELIVERY

20. Functional Scene Regulation/ Policies Technology OPERATIONS MODEL
Market/
Competitors

21. REGULATORY Content Distribution Platforms Operating License
Copy Rights Issue
View Tariff
Format standardisation
Content Code adherence
Technical standards
Performance and
Quality parameters
Distribution Rights
Tariff
Spectrum allocation
and discipline
REGULATORY
End-user device( STB)
specifications & interoperability
Quality of service – efficient
SMS
Consumer Rights protection
Content
Distribution
Platforms
CONSUMER

22. Market Demands Customised and processed content
Synergised revenue return streams
Increased competitiveness calls for the operator to be innovative
Co-existence of competitive platforms
Strategic tie-ups and consolidations

23. Technology Aspects Technology identification and standardisation
Integration with the existing services
Cost of the hardware and software applications
Coping with the technology dynamics scene
Return Path techniques
Maximising product values

24. Challenges Regulatory guidelines Content protection and customisation
Technology would make the Convergence scenario
possible and inescapable
….. But challenges stand on the face !!
Regulatory guidelines
Content protection and customisation
Commercial practices and innovations

25. Regulatory Issues Need for an Umbrella Regulator Cross-Media ownership
Licensing process..both forward and return path
Content Monitoring
Spectrum planning
Level Playing Fields – Telecom Service Providers & Broadcast Operators
Customs Duities parity between IT & Broadcast sectors
Service tax anamoly on subscription for cable/DTH and Telecom service
FDI limit is different for IT/Telecom and Broadcast sector

26. Commercial Concerns Fragmentation of advertising revenue
No service provider has pure domain
Content Piracy and copyright issues
Low ad-spend at 0.34%of GDP – much lower than global average
Ad-avoidance phenomenon

27. Initiative BBC World study of advertising avoidance
Ad Avoidance Phenomenon
Initiative BBC World study of advertising avoidance

28. Intense Competition Multiple options, Consumer is King Broadcasting
The User Perspective --
Broadcasting
Intense Competition
Multiple options,
Consumer is King
Telecom
Internet/Data

29. Consumer Centric Business
…Immediate Implication
Consumer controlled content
--- Interactive Broadcasting
Content– Anywhere, Anytime
End product is Value Rich
Better service at lower cost
Expansion of Market size

30. A WIN-WIN SITUATION FOR ALL OF US
CONVERGENCE
A WIN-WIN SITUATION FOR ALL OF US

31. This is just the Beginning…!!
THANK YOU
ALL