Seen huge rise in demand; ARPUs to improve ahead: Dish TV

Written By Unknown on Rabu, 31 Oktober 2012 | 15.45

The deadline for complete switchover to digitization in the four metros ends today . The percentage of digitization in the four Metro cities--Delhi, Mumbai, Chennai and Kolkata - has reached 85 per cent and only 15 per cent is remaining, said the latest government data.

In an interview to CNBC-TV18, Salil Kapoor, COO, Dish TV said that the company has seen massive demand in the last few days. "Our numbers have gone up 10 times in Delhi and 6-7 times in Mumbai." The demand is expected to rise further once the analog connection is totally disconnected.

Dish TV's overall base market share is about 28 percent and month on month basis till August-September, it is about 22-23 percent.

Its average revenue per user (ARPU) increased from Rs 131 in 2010 to Rs 159 in Q2 this year. "ARPUs are expected to boost going ahead. The price increase made six months ago has been easily absorbed. Stability in prices will also help us to increase ARPU," he added.

Below is the edited transcript of Salil Kapoor's interview with CNBC-TV18.

Q: At your end how does it look, more or less covered all the cities in terms of digitisation?

A: We are seeing a huge demand already. In the last about 10 days our numbers have gone up 10 times in Delhi and 6-7 times in Mumbai. We are expecting further increase in numbers because the actual black out is going to happen now.

This is just the tip of the iceberg; there is lots to be done in these four cities. Our main job right now is to arrange as many installers we can from various neighbouring states to meet the demand.

Q: With regards to incremental market share you gained during the entire digitisation process, so in the current metros, which are currently finishing phase I, what about Dish TV's market share stand at vis-à-vis before digitisation and now post digitisation?

A: There is nothing like post digitization. Digitisation is happening it has not ended on or it is not going to end today. There is only a small set of customers who have stepped out to buy the boxes. We have seen 10 times demand growth here. But the actual demand is going to come up when we will see this real switch -off happening.

Real switch-off which will happen tonight, is going to get those people. It will take us some more time to cover up all the demand. What the market share is going to be can only be said after we are through will the process. It will take one month to meet all the demand.

Q: What is the current market share that Dish TV has?

A: The overall base market share is about 28 percent and on a month on month basis till August-September, we are about 22-23 percent. A newspaper article today has stated Dish TV stands to gain maximum and it is on top of the consumer choice as far as buying process during digitisation is concerned, it is the most preferred brand. We look forward to huge demand coming in the next few days.



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