The recently released data by TRAI declared a massive 286.86 million subscribers in the wireless domain. Total number of telephone connections has reached 325.78 million making the overall tele-density to 28.33 percent. In spite of such an encouraging report the downside is that in the wire-line segment, the subscriber base has decreased to 38.92 million in Jan’08 from 39.05 million in May’08.
This is a point to ponder. It depicts how our wired market is behaving. Unfortunately, come what may, it is the wired segment that will lead us to the new generation networks of tomorrow rather than the wireless segment which may be easy to establish but difficult to sustain in the future because of its bandwidth limitations. Wireless is good to fillup the communications divide but not the broadband divide.
TRAI, very rightfully, has recognized this fact and issued their recommendations on ‘Restructuring of Cable Television Services’ last month. The recommendations recognize the potential of HFC networks of cable operators delivering cable TV services becoming the next generation networks for the converged services of the future. Our copper networks of the telcos used for telephony and ADSL, particularly those belonging to MTNL and BSNL have not proved very efficient in carrying large bandwidth of 2MBPS or more required for services like IPTV or VOD. This is the main reason for the dwindling wireline connections and low penetration of broadband in the country. The NGNs require gigabit speeds which are yet a dream in India.
Cable networks carrying services to 78 million house hold do promise the future but need a lot of upgrades.
What the telcos and MSOs must do is to use the expertise of cable operators in laying HFC networks and help them extend the fiber to the homes in the local markets where they are the masters. That will make our networks future proof and bring in many new sources of revenue generation.
TRAI has also brought the cable TV services under three types of licenses; citywide, district-wide and national. This will clearly define the responsibilities of LCOs, Independent MSOs and large MSOs and help introduce more organized services.
TRAI has also released draft recommendations on the TRP system suggesting self regulation by an industry body with an overseeing by the government. Not a bad idea to start with but, many stake holders don’t seem to be happy with government intervention and wish to represent.
Last month also saw two new trends in the market; first, the launch of India’s first government run cable network company in Tamilnadu and the second, the launch of Asia’s first HITS platform by WWIL. Both projects are marred with many teething problems but their success will change the face of Indian cable TV industry in times to come.
Wish you all a happy Independence Day
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