50,000 IPTV users anticipated in 18 months’ time

Internet Protocol TV was launched by MTNL in July 2007. A month later, subscribers now number less than 1,000 but the company is hoping for a high conversion rate as broadband connections grow to a target of 500,000 each in Mumbai and Delhi. Currently, MTNL has 225,000 broadband lines out of a total of 4.5 million fixed line subscribers in the two cities.

The company anticipates that IPTV takeoff will be faster than the 1,000 connections getting done per day in broadband. To enable transport of high-density video content, MTNL is using compression technologies that can zip as much as 3 megabits per second.

Currently, a subscriber has to pay a lifetime payment of Rs 3,500 for a set-top box, and a monthly rental of 120 rupees for 52 channels in Delhi. Some 100 channels are expected in a month’s time.

Aksh Optifibres, the partner company that arranges the content for MTNL, estimates that, in 18 months as the target of 50,000 subscribers is reached, set-top boxes may be free and monthly subscription may undergo a change.

MTNL has increased the accessibility of IPTV in a 3 km radius from each telephone exchange, from the initial 800 metres each, and plans to start to implement within eight weeks fibre optic cables that will reach 20 km from the nearest exchange. MTNL has invested $120 per subscriber to enable the IPTV service, and anticipates that interactivity to view desired programmes and convenience of viewing to be the distinguishing features for attracting new subscribers.

MTNL was set up in 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for the telecom development needs of India’s key metropolitan cities, Delhi and Mumbai. In the past 20 years, the company has emerged as India’s leading telecom operating company.