DTH firms HITS out at multi-system operators

DTH majors and multi system operators (MSOs) are now engaged in a spat over the new digital delivery system — headend in the sky (HITS). DTH players like Tata Sky and Bharti Airtel have told telecom regulator Trai that MSOs who provide this service must do so only through cable operators and not directly to the end-subscriber.

They have argued that if MSOs are allowed to offer this service directly to the end-user, there would be no differentiation between DTH and HITS platform. On the other hand, MSOs are of the view that they must be permitted to offer this service to both cable operators and also directly to customers.

Bharti has told Trai that those HITS service providers should not be allowed to provide signals directly to end-consumers, while adding that the distinction between HITS operator and DTH should be maintained.

Reliance Bluemagic, which is set to launch its DTH operations soon, as well as currently operational Tata Sky has suggested to Trai to follow a technology neutral policy. This implies that if HITS operator is allowed to service the end-consumers in addition to cable operators, then DTH players (who currently service only end-users) must also be permitted to share their signals with the local cable operator (LCOs).

The MSOs on the other hand maintain that while they be allowed to service both segments — LCOs and end users — any amendment allowing DTH operators to do the same would result in the MSO industry being put out of their jobs. Hinduja promoted Incablenet has said that DTH should be remain a direct-to-home concept and should neither be allowed to use LCOs to reach consumers. Moreover, DTH operators should also not be allowed to set multiple-dwelling units and society-based units, it added.

Endorsing the same line, MSOs like Essel promoted WWIL and Mumbai-based Hathway has asserted that the HITS systems should be allowed to reach the consumers directly and act as the last mile operator (LMO). Justifying the move, they said that since HITS would operate in the C band it will not compete with DTH operator.

They also said that investments made in DTH operations are similar to HITS, therefore the latter should also be allowed similar revenues. This is because, if the HITS operator is not allowed to reach consumers directly, the operator would have to give a revenue cut to the LMOs unlike DTH operators which enjoy 100% revenues, they added.

HITS works as follows. The infrastructure provider downlinks all the pay channels and decodes it. These signals are then scrambled according to the requirement after going through the conditional access system. They are multiplexed and uplinked again to a satellite which acts as a ‘headend in the sky’ and beams these signals to all the headends at the local cable operator’s end.

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 the programmes of her choice but also watch them at a time convenient to her. With HITs, one can also access other facilities such as running searches, pay-per view and blocking programming by title, channel or rating.

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