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

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Presentation on theme: "Broadcast telecom CONVERGENCE ….The Journey Begins !!! BES Expo and Conference’ 2007; 1 st to 3 rd Feb’2007 ================================================================"— Presentation transcript:

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

2 Indian Broadcast Industry 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 MSOs across Country 6 Number of Cable operators On path of digitalisation Head-end in the Sky (HITS) under consideration No. of FM Channels 192 Additional 233 stations (Private) operational byMay’07

3 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 In year 2000, this figure was just 2%

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 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 !!


8 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) Evolution of TV Broadcasting 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 Photography Publishing Broadcasting IT system Images Voice Fax Newspaper Audio/Video Internet

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

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 …Device Driven APPLICATIONS …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


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

21 Content REGULATORY CONSUMER 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 End-user device( STB) specifications & interoperability Quality of service – efficient SMS Consumer Rights protection

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 Commercial practices and innovations Technology would make the Convergence scenario possible and inescapable ….. But challenges stand on the face !!

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 Ad Avoidance Phenomenon Initiative BBC World study of advertising avoidance

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

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


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

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