DTH operators are likely to add 8-9 million subscribers per year

Over the next three years, direct-to-home operators are likely to grow their subscriber base by taking 8-9 million subscription per year.

As per the PTI report, two listed operators Dish TV and Videocon d2h will benefit the most from India's digital conversions.

The leading news agency quoted a Deutsche Bank report, which stated that "A 70 million analogue subscribers' opportunity will unfold over the next few years as voluntary conversions continue."

"Regardless of the digitization deadline dates, DTH (Direct-to-home) companies will probably keep adding 8-9 million subscribers a year over the next three years," according to a Deutsche Bank report.

The government has declared phase-wise deadline to complete the digitization process. For phases 1 and 2, which covers the metros and 38 large cities (cities with over over million population) are already over. While the Phase 3 deadline (all urban areas) is December 31, 2015 and the Phase 4 deadline (the rest of India) is December 31, 2016.

According to the report, "Looking at the progress of cable companies towards digitization, it looks likely that the deadline will be extended. We do not factor in any uptick in subscriber addition till FY17 on account of digitization," the report said.

The report added that through internal cash generation, Dish TV and Videocon d2h can add 2.5 million and 1.8 million subscribers, respectively. "According to our estimates, Dish TV will generate free cash flow of Rs 360 crore in FY17, while Videocon d2h will turn free cash flow positive by FY17," it said

Source: http://www.in.techradar.com