Saturday, June 7, 2008

War For DTH Spoils Intensifies - June 7, 2008

Mumbai: Even before the battlefield is joined by more fighters —- specifically, the Reliance Anil Dhirubhai Ambani Group and the Sunil Bharti Mittal camp —- the war for direct to home (DTH) television spoils is intensifying.

Segment leader Dish TV had attacked Tata Sky for putting out wrong claims when it advertised offering set-top boxes for Rs 1,500 along with a subscription rate of Rs 200; and Tata Sky recently went to court over Dish TV’s ‘free set-top box’ advertisements.

Tata Sky filed a complaint before Monopolies and Restrictive Trade Practices Commission, New Delhi against Dish TV stating that Dish TV’s ads talked about offering “free set-top boxes,” but in actuality, the money was being recovered through rentals.

Dish TV counters that it is currently running three schemes out of which, the set-top box is given free only under the Rs 3,990 scheme.

This has also been very clearly brought out in its advertisements, the company said.

Tata Sky then filed a writ in the Delhi High Court over the same issue, but only to withdraw the petition.

Dish TV said in a statement to DNA Money that “the high court, on hearing the parties, decided that at present there was no relief required to be granted to Tata Sky, and ordered Tata Sky to withdraw the petition since it was inclined to dismiss it.”

Tata Sky, however, said the writ was withdrawn to peruse all remedies as per law and no observations have been made by the court.

Meantime, the Monopolies and Restrictive Trade Practices Commission will hear the case on July 11.

Dish TV sources said Tata Sky had mentioned in its petition that because of the ad campaign the sales of Dish TV have doubled compared with its own.

A Tata Sky spokesperson refused to comment on this.

Analysts Shubham Majumder and Nitin Mohta of Macquarie Research Equities said in a report in end-March that for the last financial year, Dish TV’s subscriber base would be around 3.1 million, which tantamounts to an almost 60% market share, while Tata Sky’s subscriber base would be 1.7 million.

The report also states that Dish TV, a part of Subhash Chandra’s Essel Group, was adding more than 1,00,000 subscribers a month.

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