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Dish TV plans to add 30,000 high-def subscribers this fiscal

Dish TV, which is a market leader in the direct-to-home service, launched its high definition service, Dish Tru HD, in May.

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Dish TV India Ltd is targeting to add around 30,000 subscribers for its high definition direct-to-home service in the current financial year that ends March, managing director Jawahar Goel said on Monday.

Dish TV, which is a market leader in the direct-to-home service, launched its high definition service, Dish Tru HD, in May. It charges consumers Rs 2,990 per set-top box.

The company hopes to see a 33% growth in its total customer base in 2010-11 and end the fiscal with 10 million subscribers, Goel said.

Asked whether Dish TV was looking at getting more foreign direct investment, Goel said the company had currently no such plans but may look at getting foreign funds in 2012-13 when it plans to look for acquisitions to ramp up its subscriber base.

“We will require funds in case we are looking at an acquisition in 2013,” Goel said.

Dish TV at present has 3.4% FDI, excluding 5.7% held by foreign institutional investors.

Currently, DTH companies have an FDI limit of 49%, which may change after recommendations made by the Telecom Regulatory Authority of India to increase the limit to 74%.

Goel said consolidation was bound to happen in DTH space given the huge investments needed to run the business, increasing competition among service providers and current low levels of average revenue per user.

He said the company’s cash holding is currently at a comfortable Rs 650 crore, while it will get another Rs 250 crore from internal accruals during the year.

Goel said the company spends around Rs 2,500 for adding every new subscriber. “With 2.5 million subscriber addition expected by the end of the financial year and an approximate subscriber acquisition cost of 2,500 rupees, we will require to spend Rs 625 crore this year,” Goel said.

NewsWire18

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