Hotels now allowed to tap DTH, MSO & cable operators directly

The hospitality industry may save some extra bucks following a recent directive from the Telecom Regulatory Authority of India (TRAI). Hotels will now have the freedom to choose from different distribution platforms such as direct to home (DTH) broadcasting and cable TV . Earlier, they were dependent only on broadcasters for television channels they could offer their guests.

As per the regulation, commercial subscribers, which include all hotel categories, will have to obtain television services from distribution platforms like DTH (Dish TV, Tata Sky etc), multiple system operator or MSO (DEN Network, Hathway etc) and local cable operator or LCO. Earlier, bouquets of channels were contractually obtained from broadcasters like STAR, Sony, Zee etc and transmitted through a hotel's private distribution system.

Now with the amendment's implementation being fine-tuned for compliance, a potential market is up for grabs.

"There are over 1 lakh hotel rooms in India and so far, only 1% of the total pool has DTH connections. The rest of the market is untapped and hence the potential. With the new government in place we are positive that tourism will increase multifold, giving revenues to allied industries as well," said Salil Kapoor, COO, Dish TV.

The change in how TV channels will be consumed in hotels could mean a cost reduction in that category by a third, analysts said.

Nikhil Sharma, COO, Red Fox Hotels agreed. "The running cost that hotels incur for provisioning of TV channels will be hugely reduced. Popular channels that earlier commanded a premium rate for commercial viewing will now be more affordable and therefore, accessible to all," he said.

Both DTH service providers and cable operators are actively negotiating terms for tying up with hotels.

While the move could benefit hotels and their guests, broadcasters'monopoly in the area would be minimized.

"Overall however, it is good news for the hotel industry as distribution network bottlenecks will be mitigated. Also, this implies a greater number of TV channels for guests,'' according to Puneet Singh, GM, Kempinski Ambience Hotel.