As per Telecom Regulatory Authority of India (TRAI)’s new tariff regime, selecting new channel packs through cable operators is a tedious process for customers. Many were therefore drawn to the convenience offered by DTH operators.
As compared to Cable TV operators, DTH players were well equipped to handle the additional load, on account of the à la carte channel selection option with subscriber management systems & customer support functions.
TRAI report states that there were 72.44 Lakhs DTH subscribers across the five DTH service providers (Tata Sky, Dish TV, Airtel Digital, Sun Direct and Reliance Digital TV) in the January-March 2019 a growth of 2.8% (or 1.95 million subscribers) in the first quarter of 2019, compared to only one percent growth in the previous two quarters.
The growth has been spotted not only in the subscriber base, but also in terms of revenue and the average revenue per user (ARPU).
After the new tariff regime, MSOs /Cable TV operators have lost market share to DTH players owing to two major reasons. ARPU for DTH has come largely in line with the MSOs. Furthermore, the delay from MSOs’ end in implementing New Tariff Order (NTO) due to a lack of cooperation from local cable operators is making subscribers switch to DTH as per TRAI.