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India's Leading Source for Broadcasting & Broadband Information - CableQuest Magazine
HomeArticlesEditorialsIncrease in Rural India income will help increase ARPUs
Thursday, 01 February 2018 06:38

Increase in Rural India income will help increase ARPUs

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The budget is out and as usual, there are mixed reactions from people of the industry. However, in general, everyone accepts that the budget is completely designed to lure farmers and poor people who have been protesting so far for not getting their due from the government. The Modi Government will face the Lok Sabha Elections in 2019 and does not want to leave a large chunk of the population in anguish. The health insurance for the poor people and higher MSP for the farmers are the main highlights of the budget. 

There is nothing much for the industry which is in turmoil at the moment. However, efforts to raise the standard of living in rural areas may improve the subscription revenue of telecom and broadcasting companies. 

Although, FM has made the budget to increase adoption of digital technologies, increase in import duty to boost up indigenous manufacturing will make televisions, mobile phones, STBs and network equipment costlier, further increasing the stress on broadcasting and telecom sectors. The boost in indigenous manufacturing will only be felt after some time, once all the budget schemes are implemented in their true spirit.

Imported STBs which are the main stay of cable and DTH industry, becoming costlier will hamper digitalization in the immediate future, putting extra burden on already stressed DPOs.  Indigenous industry has not yet picked up as there is no demand from large players. Local manufacturers may not still be able to compete with the pricing and quality of imported equipment as international manufacturers enjoy a huge economy of scale. 

The Parliamentary Standing Committee on IT in its Annual Report has pulled up the MIB for its lackadaisical way of implementing digitization particularly in Tamil Nadu. It has also pointed out many other short comings like incomplete report on STB seeding in the MIS of the Ministry, indigenous manufacture of STBs going slow, too many ads on TV channels, no action on monopolization and cross media holdings etc. 

Launching of ISROs’s PSLV C-4Q with Cartosat 2 Satellite and 30 more satellites has taken India miles ahead in space science. We may soon have all DTH transponders on Indian Satellites in the next few years. 

Last month the Cable TV Show in Kolkata was held for the first time in Salt Lake City in a bigger space. The show had a good footfall in spite of change of the venue, much far away from the city ceentre.

Convergence India 2018 will be organized in the first half of the next month and we all should be prepared to visit India’s largest event for telecom and broadcast industry to get the latest knowledge on technology and solutions for our business.

—— Lt. Col. (Retd.) K K Sharma

Editor

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