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Digital Option
In a large and fragmented market such as India, HITS may be one of the technologies to digitize cable operations
Monday, September 10, 2007

HITS (headend in the sky) is a satellite-based delivery platform for multi channel television signals to cable operators across the country. It is capable of delivering TV signals in digital form. In HITS, the operator uplinks signals of TV channels of different broadcasters to HITS satellite in the sky. Cable operators across the country then downlink these TV channels from this HIT satellite for further distribution to subscribers through their cable network in digital form.

The difference between HITS and other digital formats such as CAS and DTH is that it is an interactive system where the viewer can use the same infrastructure (set-top-box) to not only watch programs of their choice but also watch them at a convenient time. With HITs, one can also access other facilities such as running searches, pay-per view, and blocking program by title, channel or rating.

HITS could, theoretically, digitize cable transmission in the whole country with a capital expenditure of Rs 1,215 crore

Regulator's Speak
Telecom regulator TRAI, when launching a consultation process on HITS, said that in a large and fragmented market such as India where 60,000 cable operators service 70 mn cable homes, this technology may be one of the efficient means to digitize cable operations in India. TRAI further said "HITS could, theoretically, digitize cable transmission in the whole country with a capital expenditure of Rs 1,215 crore and a recurring cost of Rs 50 crore per annum, as against the capital expenditure of more than Rs 15,000 crore for conventional terrestrial digitalization."

TRAI's consultation process on HITS seeks views from all stakeholders on various policy issues including scope of HITS operation, spectrum band for its operations, FDI limit and entry fee, annual and spectrum fees. The consultation paper has also asked suggestions on up-linking and cross-holding restriction.

Options to Look for
Possibly the most important feature of HITS is that it can provide effective choices of channels to consumers throughout the country through the cable operators at one go by virtue of the fact that HITS satellite would have country-wide footprints.

At present, such features are available only to a limited number of cable subscribers residing in conditional access system (CAS) notified areas of Delhi, Mumbai, Kolkata, and Chennai, as well as to subscriber of DTH services. TRAI is also of the view that HITS has the potential to spread digitalization and conditional access feature in cable services across the country at an accelerated pace.

Industry Consensus
Activities have already started building an industry consensus where most stakeholders agree in principal for HITS to be an ideal solution in the prevailing conditions, but another side of the story is that HITS model is facing opposition from multi system operators as they have demanded a neutral player (like Doordarshan) as the provider of HITS as opposed to any private company. Siticable has already submitted an application to the Ministry of I&B to seek permission for the project. Since the project will mean comparatively very low subscription for subscribers, they have full hope that it would be accepted soon. In the meantime, Siticable has installed a demo set up of the trans modulator system at their office in New Delhi for anyone to see the system working.

Sandeep Budki
sandeepb@cybermedia.co.in

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