Technology: The MPEG-4 compression technology used by Sun Astro and RCOM and to be used by Bharti is more advanced than the MPEG-2 compression technology currently being used by incumbent players Dish TV India and Tata Sky. RCOM and Bharti would also benefit from the synergies with existing technology and billing platforms and service support systems in their telecom business.
Distribution network: Dish TV has a decent but fast-growing distribution network. For the quarter ending 30 June 2008, Dish had 38,000 dealers covering 4,500 towns. Bharti and RCom will leverage on existing wireless distribution network.
Content advantage/experience: Dish TV scores above the competition on this metric. We expect Dish TV to benefit from its parent company Zee's long and strong pedigree in content generation.
Brand strength: We note that Tata Sky has built a strong brand image due to its heavy promotional activity in the past year. Bharti and RCOM are established pan-India wireless players and their execution track records imply impressive DTH service roll-outs, in our view.
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