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Teleport biz set to grow 35%
Ashish Sinha / New Delhi Oct 13, 2009, 00:36 IST

With nearly 500 television channels operating in the country and more expected to be launched, the business of teleport operations — uplink and technical support for launching and maintenance of television channels — is set to grow over 35 per cent this year, almost double that of 2007-08.

Currently, the estimated size of the business is Rs 200-220 crore for the private operators who undertake teleport operations for around 200 of the 500 permitted TV channels. These third-party teleport operators include HFCL Satellite Communications, Essel Shyam, Lamhas, VSNL and others. However, national broadcasters like Zee, Eenadu, NDTV and STAR News, among others, manage their own teleport operations.

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Teleports are the permanent satellite uplink infrastructure from where television channels are beamed to satellites for transmission over a fixed geographical area. As all television broadcast is only allowed on C-band (4-7 Ghz frequency), the broadcasters have to tie up with a teleport operator before applying for an uplink and downlink licence from the government.

According to sources, there are at least 70-80 new channels pending necessary government approval, while over two dozen media and non-media companies are looking to enter the broadcasting space. This is expected to drive the growth of these private teleport operators.

STAR TV India is also set to shift its teleport operations from Hong Kong to India soon. “The work towards shifting the operations has begun. We are looking for a business partner or we may decide to set up the entire operations in-house,” a senior executive of STAR India said.

Commenting on the growth of teleport operations, Sanjay Maloo, head of HFCL Satellite Communications, said: “Though the base is still small, we have seen tremendous growth in our teleport operations. This is primarily driven today because of the channel boom in southern India.” HFCL Satellite Communications, a company that currently uplinks 18 television channels, may add 12-14 new channels in the next six months, say company insiders. It also provides outdoor broadcasting vans to various news channels and broadcasters like TV Today, Eenadu TV, Sahara TV and Asianet, among others.

According to experts, a broadcaster need only pay Rs 6-8 lakh a month for availing the services of a teleport operators. For the operators, the margins are anywhere between 40 and 45 per cent. But the business is not without challenges.

Says Ajay Jain, CEO of Lamhas Satellite Services Ltd, another private teleport operator: “The market has immense growth potential. But availability of C-band transponders on the satellite is a major challenge. Unless the existing broadcasters upgrade to higher compression technology (MPEG-4) from MPEG-2, the business will continue to face spectrum issues.”

Lamhas undertakes teleport operations for 8-10 channels, including occasional uplink facility to channels like Sanskar TV, PTC News, Jaya TV and Peace TV.

Sources say a slew of foreign companies operating in the business are also eyeing an entry in to India. “Players like Globecast, Singapore Telecomk and Indigo Telecom are also keen to offer their services in the country. However, they are waiting for further dilution of the existing foreign equity cap from 49 per cent to 74 per cent at least,” a senior executive in a teleport company said.

What are teleport operators?

Teleports are permanent satellite uplink infrastructure from where television channels are beamed to satellites for transmission over a fixed geographical area. As all television broadcast is only allowed on C-band (4-7 Ghz frequency), the broadcasters have to tie up with a teleport operator before applying for an uplink and downlink licence from the government.

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