Tata sky “isko laga dala toh life

jhingalala”

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In India it has taken DTH 5 years to get to 6 million plus subscribers!

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0

0.5

1

2

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0.5

1

1.5

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2.5

Aug-06

Oct-06

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Mill

ion

s (S

ub

s.)

And Tata Sky crossed 2 Million subscribers in And Tata Sky crossed 2 Million subscribers in 20 months… the fastest subscriber ramp-up 20 months… the fastest subscriber ramp-up ever by a DTH platform ever by a DTH platform

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The Indian Telecom miracle took 6 years to reach half the DTH number

Wireless Subscriber Growth

Source : COAI Data4

0.06 0.18 0.751.925

4.8

9.8

15

20.9

26.1

30.4

33.8

36.237.6

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Subsc

ribers

(M

illio

ns)

2007 to 2015…Growth of 683 %

Source : MPA report , March 2007

The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

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In 5 years…We have managed to overtake Japan

as the largest DTH market in Asia

And in the next 5 years (by 2012) we will be

able to add another 30 million subscribers

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Playing the volume game… DTH in India

Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their monthly income on cable

services

Globally, consumers spend 3 - 4% of their monthly income on pay television services

While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of

scale to fully exploit the market potential

This clearly is expensive business(At least in the short-medium run)

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• Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 – 2007)

Source: NCAER

• Appetite for Entertainment is growing

$25 Billion being spent annually by Indians on travel

45 Million credit card subscribers growing at 35% annually

10 Million color TVs sold annually

125 Million TV homes ….have doubled in last 6 years

• Rapid adoption of new technologies by Indians

5 - 6 Million mobile phone subscribers are added every

month 350,000 Satellite TV subscribers added every month

But , the Indian market is changing

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DTH …congruence of interests for all stakeholders

Consumers

Consistent and professional service Superior video / audio quality Multiple channel packages to choose from Interactivity Access to niche content Movies on pay-per-view – 800 films produced in India every year Ability to move anywhere across India w/o buying a new STB Extensive rural reach

Broadcasters

Transparent / auditable platform with no under-declaration New revenue stream Convenience of dealing with a single operator rather than with multiple

MSOs Will minimize piracy

Government

Plug the tax leakage through declaration

Additional source of revenue – license fee payable by DTH operators

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With its proven, superior technology, value

added services & professional customer

service

Along with the ability to offer all India coverage at low incremental per subscriber

cost

(upgrading cable infrastructure across India will need huge

investments & appeal of Broadband service will be

limited to metros & large cities) DTH is set to win…

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Finding the perfect mix for DTH

Monetizing volumes. Improving ARPU.

Reach1

Brand Building

VAS2 Customer Service3

• National coverage (Urban & Rural)

• Subscriber Mgmt

Payment, Renewals, Recoveries

• Focus on Interactive Services

• PPV• Alerts • Red Button

promos• New

Innovations

• Outstanding Customer Service at all Touch Points

24/7 Call CenterLanguage supportEngineering

support

Value4

• ‘Value’ for money brand

• Quality content• Relevant

packaging• Exclusive / Niche

content

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Innovation

Tata Sky’s Approach

Execution

Tata Sky…setting new standards

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DOING IT DIFFERENTLY

• “To get to the bottom of the pyramid, start at the top”

• Make technology aspirational to early adopters

• 1 Mn subscribers in 1 year… fastest ever in the world

Upper

Middle

Low

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24x7 Call Centres, Over 800 associates, supporting 11 languages

Technology…partnerships with global leaders

3000 engineers across India

Professional installations across the country

EXECUTION

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Partnership with Global Partnership with Global Leaders…Leaders…

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the dish will also have a different look

Tata Sky+Tata Sky+……taking digital TV taking digital TV to the next levelto the next level

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DTH in India…key imperatives

Reduction in License Fees

Level playing filed with Cable /CAS rollout

Content exclusivity

Burdensome Tax structure

FDI Norms and investment restrictions

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Play the volume gameAddress the mass market with a volume-led strategy

Value based pricing will be the key to success

Innovate to differentiateAdoption of global success…Red button applications

Payment modesInteractive programming

New VAS & Products ( PVR)

Execute Effectively Address market complexity

Rapid scale up

To Make Most Of This Opportunity, we need to…

Engage and advise the government / Regulator Develop a pragmatic regulatory framework

Correct current policy anomalies

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In Sum

What is important to recognise is this is a transitory phase

Many players means lots of investment And only lots of investment will help to grow the market

In the shorter run though competition may trigger lower tariffs

and increase SAC & Cash burn

The need is to focus on :

• Creating Reach to build volume• Offer affordable pricing

• Innovation to create customer value & increase ARPU

• Outstanding execution to keep & gain new customers

And

Lots of patience! 19

Thank you

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