This document summarizes the growth of DTH (direct-to-home) television platforms in India, with a focus on Tata Sky's success. It notes that Tata Sky reached 2 million subscribers in 20 months, the fastest growth ever for a DTH platform in India. It predicts that DTH subscriptions in India will grow to over 30 million by 2012 and potentially 165 million households by 2015. The document outlines Tata Sky's strategy of focusing on volume, affordability, innovation, and excellent execution and customer service to drive their rapid growth in the Indian market.

1. Vikram Kaushik
Managing Director & CEO
Tata Sky Ltd.

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

3. 0
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Millions(Subs.)
And Tata Sky crossed 2 Million subscribers in 20And Tata Sky crossed 2 Million subscribers in 20
months… the fastest subscriber ramp-up ever by amonths… the fastest subscriber ramp-up ever by a
DTH platformDTH platform

4. The Indian Telecom miracle took
6 years to reach half the DTH number
Wireless Subscriber Growth
Source : COAI Data

5. INDIA… 165 Mn Pay TV HHs by
2015
46%
61%
84% 90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2006 2011 2015
Pay TV Penetration/TV HH
• Penetration will double
• Revenues will quadruple
Source :
MPA report, March 2007320%18.44.3USD Bn.
Grow th20152005
PAY TV REVENUES
320%18.44.3USD Bn.
Grow th20152005
PAY TV REVENUES

6. 0.06 0.18 0.75
1.925
4.8
9.8
15
20.9
26.1
30.4
33.8
36.2
37.6
0
5
10
15
20
25
30
35
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Subscribers(Millions)
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!

7. 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
(which is about the same as the population of
Belgium, Portugal and Greece put-together!)

8. DTH is a nascent category in its growth phase

9. 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)

10. • 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

11. 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

12. 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…

13. Finding the perfect mix for DTH
Monetising 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 Center
Language support
Engineering support
Value4
• ‘Value’ for money
brand
• Quality content
• Relevant packaging
• Exclusive / Niche
content

14. Innovation
Tata Sky’s Approach
Execution
Tata Sky…setting new standards

15. 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

16. 24x7 Call Centres, Over 800 associates,
supporting 11 languages
Technology…partnerships
with global leaders
3000 engineers across India
Professional installations across
the country
EXECUTION

17. CUSTOMER SATISFACTION…best
in class performance scores
Durable Sector Telecom Sector
Norms
Best In
Class
Norms
Best In
Class
eQ Index 75 86 74 86
Commitment
Share
66 62
Vulnerable
Share
9 9
Tata Sky
88
88
3
Comparison with global industry norms & global best in class scores
Source :
AC Nielsen Customer Satisfaction study , April 2007

18. Partnership with Global Leaders…Partnership with Global Leaders…

19. the dish will also have a
different look
Tata Sky+Tata Sky+……taking digital TV totaking digital TV to
the next levelthe next level

20. 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

21. Play the volume game
Address the mass market with a volume-led strategy
Value based pricing will be the key to success
Innovate to differentiate
Adoption of global success…Red button applications
Payment modes
Interactive 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

22. 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!

23. Thank you