DTH industry wants duty free import of set top boxes

The direct-to-home (DTH) industry is demanding a duty free regime for imported set top boxes as the industry feels that import duties on these are resulting in increase in cost being borne by the consumer and hence slowing the pace of expansion of the industry. A similar demand has also been made by the cable TV industry.

Economists argue that such a move will have a positive impact on government’s revenue on a net basis as reduction in cost of installation will increase business in both the DTH as well as the cable segment.

Even the information and broadcasting ministry (I&B) has argued that it is in the government’s own financial interest to eliminate all import duties for at least the next five years on digital set top boxes for both cable and direct-to-home segments. The ministry has raised the issue before the finance ministry in the pre-budget consultations which are currently going on for the Union budget for FY10.

At present, imported digital set top boxes attract a special additional duty at the rate of 4% as well as a countervailing duty at 8%. Together these two raises the cost of set top boxes by 12%. The I&B ministry feels that both the duties should be cut for the next five years which will help boost growth of the industry.

Videocon to launch DTH service on June 20, 2009

Videocon, the domestic consumer electronics major, is planning to launch its direct-to-home (DTH) service in Kolkata at proposed date June 20, 2009. Bharat Business Channel (BBCL), a subsidiary of the Videocon Group will handle DTH service. The company will market its DTH services through around 30,000 dealers. The company will sell its DTH service under the brand name D2H+.

Videocon will roll out colour television will in built set-top box in a price range of Rs 8,000. The company will manufacture the set top boxes at its Aurangabad factory, which will be priced at Rs 4,000.

Under DTH services segment, company plans to create customer base of 2 million subscribers in the current fiscal. Later in FY 2010-11, it plans to reach 5 million customers. The company has set a target for itself of reaching 1 crore houses, within a period of five years.

On August 15, 2009, the company plans to launch its GSM mobile service in Chennai. Videocon will handle its mobile service segment through its subsidiary Datacom.