There are 147m television homes of which 127m are pay TV homes of which 46m homes are digital (41m satellite TV + 5m digital cable). In December 2011 the Indian government approved the mandatory digitization ordinance and has decided on December 2014 as the sunset date for analog cable. Over the next three years all of the ~89m analog homes have to convert to digital platform (satellite TV or digital cable).
While we do not believe the time line is achievable, this provides a strong thrust towards digitization which is positive for most stake holders including broadcasters, distributors (DTH, MSO), government and consumer. Local cable operators’ revenue would be under risk.