RCom books four transponders

Firming up its plans to rollout direct-to-home (DTH) television services, telecom firm Reliance Communications (RCom) has booked capacity on Malaysian satellite system, MEASAT-3. The deal size could not be confirmed, while it is understood that the deal is signed for around 15-20 years.

RCom has booked four transponders, with an option to add four transponders after a year on MEASAT-3. The booking of transponders, a short form for a transmitter-responder that is an automatic device that receives, amplifies and retransmits signals on different frequencies, will help the Anil Ambani group company offer high definition TV services in the country.

The company was planning to launch fully-digital DTH services by end of this fiscal through its brand Big TV. The capacity created through this move will enable RCom to provide DTH services to over 10 million subscribers in India and offer feed to over 15 million TV households.

The company had earlier booked 4 transponders on the satellite system under the KU band, which supports DTH services, a source close to the development said. When contacted an RCom spokesperson declined to comment on the specifics of the deal, but added that the DTH venture was one of the future growth vehicles for the group.

According to an analyst, the satellite capacity (which is similar to spectrum 2.0 in mobile communications) will provide RCom's DTH venture with a strategic advantage over competitors.

Most of the competitors are either waiting for satellite capacity, which is scarce, or awaiting the launch of new satellites. RCom is looking at introducing services on an advanced MPEG-4 version, compared with the existing usage of MPEG-2 technology.

Chennai-based Sun Group, Sunil Mittal-owned Bharti Group and Tata Sky are other firms that have DTH services in the country.