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SCOPE OF DTH MARKET IN WADALA

EXECUTIVE SUMMARY

In order to achieve the organization goal we should first determine the needs
and wants of target customer so that we can give the desired satisfaction
more effectively and efficiently. The marketing concept states that the
services provider first determines the needs and expectation of the
customers, organize input to deliver the service and achieve customer
satisfaction and earn ultimately profit. The other marketing definition focus
on the relationship and promises of service business activity – marketing
means to establish relationship by giving promises , maintain an enhance
relationship with customer so that the objectives of the organization meet.
The type of research design used in this project is explorative that data is
explored with the help of questionnaires. The population means the
customer (DTH subscriber in Wadala) which is but the sample size of the
survey conducted is 30-40. The survey brought very important issues in to
the light which is that the company does not provide quality network to the
customers and hence the customer face the network and re-top problem. The
company should improve its network quality in order to retain the existing
customers and attract the new customer. The researcher decided to focus on
the customer satisfaction of the DTH customers to give possible findings
and suggestions, if any.
SCOPE OF DTH MARKET IN WADALA

CHAPTER 1

OBJECTIVE OF THE
STUDY
SCOPE OF DTH MARKET IN WADALA

OBJECTIVE OF THE STUDY


Customer is the king of the market in this competitive world. The success of
any company depends upon the satisfaction of its customer. Especially in the
service industry Due to the unique features of the service it is very difficult
to measure the satisfaction and benefits derived from the service by the
customer. So the researcher has decided to undertake this topic ‘Scope of
DTH’and special server undertook at Wadala.

Hence the primary objectives of the study are as follows.

1. To find out the extent of customer satisfaction of DTH.


2. Research design of DTH
3. To find out the difficulties they are facing while using the service.
4. To give suggestion and recommendation to DTH company service
provider in the country if any.
5. To understand the customer’s perception and expectation regarding the
service they use.
6. To get knowledge about the DTH in India.
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CHAPTER 2

INTRODUCTION
OF THE TOPIC
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RESEARCH DESIGN
Research is a systematic and intensive study directed towards a more
complete knowledge of subject studied. More formalized means of obtaining
information to be used in making decisions.

Meaning of research design


“A research design is the arrangement of conditions for collection and
analysis of data in manner aims to combine relevance to the research
purpose with economy in procedure.” In fact the research design is the
conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. As such the
design includes an outline of what the researcher will do from writing the
hypothesis and its operational implication to final analysis of data.

Need for research design


Research design is needed because it facilitates the smooth sailing of
the various research operations, thereby making research as efficient as
possible yielding optimal information with minimal expenditure of effort,
time and money. Just as for better, economical and attractive construction of
a house, a blueprint is needed (or what is commonly called the map of
house) well thought out and prepared by experts architect, similarly a
research design or plan in advance of data collection and analysis is needed
for the research project. Research design stands for advance planning of
SCOPE OF DTH MARKET IN WADALA

methods to be adopted for collecting the relevant data and techniques to be


used in their analysis, keeping in view the objective of the research and the
availability of staff, time and money. Preparation of research design should
be done with great care as any error in it may upset the entire project.

Type of research design


Research design in this project is experience survey which is a
method under the explanatory research studies.

Explanatory research studies

Explanatory research studies are also termed as formulative research


studies. The main purpose of such studies is that of formulating problem for
more precise investigation or of developing the working hypothesis from an
operational point of view. The major emphasis in such studies is on the
discovery of ideas and insights. As such ‘the research design appropriate for
such studies must be flexible enough to provide opportunity for considering
different aspects of a problem under study’. In built flexibility in research
design is needed because the research problem, broadly defined initially, is
transformed into one with more precise meaning in explanatory studies,
which fact may necessitate changes in the research procedure for gathering
relevant data. The method in the context of research design for such a study
is:-
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Experience survey

Experience survey means the survey of people who have had practical
experience with the problem to be studied. The object of such a survey is to
obtain insight into the relationship between variables and new ideas relating
to the research problem. For such a survey people who are competent and
can contribute new ideas may be carefully selected as respondent to ensure a
representation of different types of experience. The respondents so selected
may then be interviewed by the investigator. The researcher must prepare an
interview schedule for the systematic questioning of informants. But the
interviewer must ensure flexibility generally; the experience collecting
interview is likely to be long and may last for few hours.

Hence it is often considered desirable to send a copy of the questions


to be discussed to the respondents well in advance. This will also give an
opportunity to the respondents for doing advance thinking over the various
issues involved so that at the time of interview they must enable the
researcher to define the problem more consciously and help in formulation
of research hypothesis. This survey may provide the practical information
about the practical possibilities for doing different types of research.

Population

The service provider has a 3.7-million subscriber base and hopes to touch 4
million in next couple of months.
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Sample size

Sample size refers to the number of items to be selected from the


population to constitute a sample. The sample size should be optimum. The
sample size of the survey conducted is 30.

Study methodology
Researcher has used the primary data to study on the topic. A well
structured questionnaire was formed and the DTH customer are selected on the
basis of the researcher convince. The questionnaire has given with the option for
each question to the customer and feedback or the opinion has been taken.
Interpretation and graphs are drawn on the basis of the feedback and opinion to
make a conclusion and give suggestions. The researcher has also used the
secondary information to understand the background of the topic from the various
websites, magazine and books.
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Limitation faced during the project

During the data collection & during the distribution of questionnaire;-

Information that the project demanded was that how the customer feel about the service
they use i.e. DTH service. The researcher has faced many problems during the collection
of data and distribution of questionnaire.

Some of them are as follows

i) Some of the customers who are not happy about the service are not ready
to discuss about the DTH service. The researcher has convinced them and
requested them to participate.

ii) During the distribution of questionnaire some of the people thinks that it is
just waste of time as they are not getting anything in return. Some of them also
told that the researcher should give some token or gift to them. The researcher has
convinced them by telling that is not for commercial purpose is just for academic
purpose only. The researcher will not sell this information to the third party.

iii) Due to lack of time some customers did not ready to mark the option
honestly so the searcher has given the questionnaire to them to take feedback and
collected on the next day.
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iv) The researcher has faced the problem while selecting the customer so the
population has selected on the basis of convenience to the researcher.

CHAPTER 3

LITERATURE
REVIEW
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INTRODUCTION

Direct To Home (DTH) is a distribution platform for multichannel TV


programmes on Ku band (high frequency of 11.7 to 14.55 Gigahertz) by using a
satellite system which transmits signals directly to subscriber premises.

The term predates DBS satellites and is often used in reference to services
carried by lower power satellites which required larger dishes.

Following are the simplified steps on how DTH works:

1. Broadcaster Sends the signals

2. The satellite receives the signals at Ku Band

3. The Dish Antenna at subscriber’s home receives the signals

4. The set top box decodes the signal and sends it to TV set
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History of Indian Television

History of Indian Television dates back to the early 1980s with the only channel
Doordarshan.

The prestigious history of Indian television has envisioned the development


of audio visual media in the nation. During the 1980s Indian small screen
programming began and at that time there was only one national channel
Doordarshan, which was government owned. The Ramayana and Mahabharata
were the first major television series produced. This serial reached the zenith of the
world record viewership numbers for a single program. By the late 1980s more and
more people started to buy television sets.
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Television in India has been in existence for about four decades. For the first
17 years, it spread haltingly and transmission was usually in black and white. The
thinkers and policy makers of the country, which had just been liberated from
centuries of colonial rule, though television to be a luxurious element that Indians
could do without. In 1955 a Cabinet decision was taken disallowing any foreign
investments in print media which has since been followed religiously for nearly 45
years. Sales of TV sets, as reflected by licences issued to buyers were just 676,615
until 1977.

The rapid expansion of television hardware in India increased the demand


for developing more program software to fill the broadcast hours. Program
production, previously a monopoly of Doordarshan, the government-run national
television system in India, was then opened to the group of aspiring artists,
producers, directors, and technicians. Most of the talented individuals got
connected with the television industry. Highly popular television soap operas
began with Hum Log in 1984-85, evoked a programming revolution at
Doordarshan. The main lesson learned from this experience was that an indigenous
television program could attract and build a large loyal audience over the duration
of the serial, generating big profits. The advertising carried by Hum Log promoted
a new consumer product in India, Maggi 2-Minute Noodles. The public rapidly
accepted this new consumer product, suggesting the power of television
commercials.
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Hum Log, one of the most popular Hindi serials, was quickly followed by
Buniyaad, a historical soap opera about the partition of British India into India and
Pakistan in 1947. In 1987, Ramayana, a Hindu religious epic, attracted smash
ratings, to be then eclipsed by the phenomenally successful Mahabharata in 1988-
89. In the 1990s, serials were in large numbers on Doordarshan. Huge hits included
historical serials such as The Sword of Tipu Sultan and The Great Maratha,
religious serials such as Jai Hanuman, Shri Krishna, and Om Namah Shivay,
fantasy serials like Shaktimaan, and family serials like Shanti, Hum Raahi, and
Udaan. These popular television programs attracted large audiences, and generated
vast advertising earnings for the Indian government through Doordarshan.
Advertisers quickly understood the advantages of advertising their products on a
medium that reached a huge national audience.

Television has come to the forefront only in the past 21 years and more so in
the past 13. There were initially two ignition points in the history of Indian
television. The first in the eighties when colour TV was introduced by state-owned
broadcaster Doordarshan (DD) timed with the 1982 Asian Games which India
hosted. It then proceeded to install transmitters nationwide rapidly for terrestrial
broadcasting. In this period no private enterprise was allowed to set up TV stations
or to spread TV signals. The second turning point in the history of Indian television
came in the early nineties with the broadcast of satellite TV by foreign
programmers like CNN followed by Star TV and a little later by domestic channels
such as Zee TV and Sun TV into Indian homes. Before this, Indian viewers had to
make do with DD`s regulated fare which was non-commercial in nature and
directed towards only education and socio-economic development. Entertainment
programmes were few and far between. And when the solitary few soaps like Hum
Log (1984), and mythological dramas like Ramayana (1987-88) and Mahabharata
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(1988-89) were televised, millions of viewers stayed glued to their sets. When,
urban Indians learnt that it was possible to watch the international affairs on
television, they gradually bought dishes for their homes. Others turned
entrepreneurs and started offering the signal to their neighbors by connecting cable
over treetops and verandahs. From the large metros satellite TV delivered through
cable moved into smaller towns, spurring the purchase of TV sets and even the
upgradation from black and white to colour televisions. Doordarshan responded to
this satellite TV invasion by launching an entertainment and commercially driven
channel and introduced entertainment programming on its terrestrial network. This
again fuelled the purchase of sets in the remote regions where cable TV was not
available.

In the mid-1960s, Dr Vikram Sarabhai, a farsighted technocrat and founder


of India`s space program, began arguing in policy-making circles that a nationwide
satellite television system could play a major role in promoting economic and
social development. At Sarabhai`s initiative, a national satellite communication
group (NASCOM) was established in 1968. Based on its recommendations, the
Indian government permitted the concept of "hybrid" television broadcasting
system consisting of communication satellites as well as ground-based microwave
relay transmitters. Sarabhai envisioned that the satellite component would allow
India to leap multiple steps into the state-of-the-art communication technology,
speed up the development process, and take advantage of the lack of infrastructure
(until 1972, there was only one television transmitter in India, located in Delhi).
SCOPE OF DTH MARKET IN WADALA

Eventually, satellite television was introduced in India after surveying the


constant popularity of Indian television. Satellite broadcasting fits naturally with
India`s immense size, and with the ability of satellites to overcome natural barriers
to television signals like mountains. A satellite in this geo-stationary orbit is
believed to be a perfect platform for television broadcasting. The footprint of the
television signal would cover almost one-third of the earth`s surface. Essentially,
satellite communication removes the cost of distance in transmitting television (or
telephone) messages. The initial success of the channels had a snowball effect.
More foreign programmers and Indian entrepreneurs flagged off their own
versions. From two channels before 1991, Indian viewers were exposed to more
than 50 channels by 1996. Software producers came up to cater to the
programming boom almost overnight. Some talent came from the film industry,
some evolved advertising and some also from the field of journalism.

More and more people set up television cable networks until there was a
time in 1995-96 when an estimated 60,000 cable operators existed in the country.
Some of them had subscriber bases as low as 50 to as high as in the thousands.
Most of the networks could relay just 6 to 14 channels as higher channel relaying
capacity demanded heavy investments, which cable operators were unable to
make. The multi-system operators (MSOs) started buying up local networks or
franchising cable TV feeds to the smaller operators for a typical fee. This
phenomenon led to resistance from smaller cable operators who joined forces and
started functioning as MSOs. The net outcome was that the number of cable
operators in the country fell to 30,000. The rash of players who rushed to set up
satellite channels discovered that advertising revenue was not large enough to
support them. Gradually, at least half a dozen either folded up or aborted the high-
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flying plans they had drawn up, and started operating in a restricted manner. Some
of them also converted their channels into basic subscription services charging
cable operators a specific carriage fee.

The first private network to capitalize on the opportunity provided by direct


broadcast satellite (DBS) was STAR-TV, headquartered in Hong Kong. "STAR"
stands for Satellite Television for the Asian Region. The network, originally owned
by the Hutch Vision Group of Hong Kong, was founded in 1991, and then acquired
for $871 million by Rupert Murdoch`s gigantic News Corporation in 1995. While
STAR-TV was the catalyst for direct satellite broadcasting into India, its path was
rapidly followed by Indian-owned private networks like Zee-TV, and by foreign-
owned broadcasters like Sony. By the late 1990s, more than 40 private television
channels were available to Indian audiences.

It was estimated that by 2000 India would have the world`s largest cable and
satellite markets with cable connectivity to 35 million homes, comprising some
150 million cable viewers.

The government started taxing cable operators in a proposal to generate


revenue. The rates varied in the 26 states that go to form India and ranged from 35
per cent upwards. The authorities moved in to regulate the business and the Cable
TV Act, which was passed in 1995. The Supreme Court passed a judgment that the
air waves are not the property of the Indian government and any Indian citizen
wanting to use them should be permitted to do so. The government made efforts to
get some regulation in place by setting up committees to propose what the
broadcasting law of India should be, as the sector was still being governed by laws
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which were passed in 19th century India. A broadcasting bill was drawn up in 1997
and that was introduced in parliament. But it was not passed into an Act. State-
owned telecaster Doordarshan and radiocaster All India Radio were brought under
a combined company called the Prasar Bharati under an act that had been gathering
dust for seven years, the Prasar Bharati Act, 1990. The Act served to give
autonomy to the broadcasters as their management was left to a supervisory board
consisting of retired professionals and bureaucrats.

A committee headed by a senior Congress (I) politician Sharad Pawar and


few other politicians and industrialist was set up to analyze the contents of the
Broadcasting Bill. It held discussions with industry, politicians, and consumers and
a report was even drawn up. But the United Front government fell and since then
the report and the Bill was not brought under consideration. But before that it
issued a ban on the sale of Ku-band dishes and on digital direct-to-home Ku-band
broadcasting, which the Rupert Murdoch-owned News Television was threatening
to start in India. In 1999, a BJP-led government has been threatening to once again
allow DTH Ku-band broadcasting and it has been talking of dismantling the Prasar
Bharati and once again reverting Doordarshan`s and All India Radio`s control back
in the government`s hands.

The year 2000 will be remembered for a single show in the history of Indian
television. The Indian television industry went on to switch the fortunes of some
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promising media companies. Kaun Banega Crorepati, the Amitabh Bachchan


hosted game show based on Who Wants to be a Millionaire, not only became the
most-watched programme on private satellite television but also catapulted Star
Plus into an incredible popular position. On the foundation of the success of Star
Plus, Rupert Murdoch built his media empire. If Subhash Chandra had tasted
success all through these years since Zee launched, 2000 was a turning point in Zee
TV`s history as well.

In recent times, Indian television is said to be in close amalgamation with


the private channels that offers all kinds of entertainment and educational shows in
a perfect dazzling presentation. The Indian television or the small screen has
achieved strata of indispensability. Life without the audio visual media is imagined
to be a standstill one. The glamour packed soaps and serials, reality shows, talk
shows and other entertainment packages encompass a major section of Indian
lifestyle.
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CHAPTER 4

DTH Industry in
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India

In earlier days there was only one TV channel in India the “Doordarshan”,
Channel doordarshan was owned and operated by government of India. In those
eras every home which had a TV set used to have its own antenna to capture the
signals.

The Cable Television Ordinance Law was passed in January 1995. This
enabled cable operators to feed channels and later on private companies were
allowed to air their own channels and this led to the explosive growth in number of
TV channels and number of cable operators.
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India has a total television population of close to 135 million, out of which
80% have access to cable and satellite (i.e. 108 million). The total DTH subscribers
are close to 22 million. Thus the DTH has a market share of approximately 20%.
The subscriber base for DTH in 2006 was meager 1 million. Now for an industry
which is just 5 years old, it is a great achievement.

Let’s have a look at how the DTH industry has grown in these 5 years. In
2005 Dish TV was the only player in the DTH industry and was registering
subscriber growth mainly in the areas where cable TV was not available. The
subscribers were not ready for the cost of set top box. In 2007 CAS mandate was
introduced in selected metro cities, where users had to invest in a set top box.

Though the initiative was not very successful, it gave a wider acceptance to
the DTH and consumer became ready to pay for the set top box. Spotting the
opportunity Sun Direct launched its services in 2007 with a drastically low one
time cost involved for DTH subscriber. Followed by this Reliance, Big TV and
Air-Tel and Videocon launched their services. The market became competitive.
Every player came with innovative offerings, Dish TV offered Movie on Demand
free worth the cost of set top box, Air-Tel and Big TV offered free subscription for
first few months etc. All these things were coupled with aggressive marketing
campaigns. Tata Sky gained the maximum subscribers during this period.

The growth of TV channels & cable operators created a big industry and
market opportunities. Until few years back there were as many as 1,00,000 cable
operators across India. However the services provided by cable operators were
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poor. The strikes, increase in tariff plan, selective broadcast and poor services were
major cause of dissatisfaction among the customers. This has created an
opportunity for DTH, which serves an immediate threat to the high-end cable
networks. Some of the key players in the industry are DishTV by Zee group,
TataSky joint venture of Tata & Star TV, Big TV by Anil Dhirubhai Ambani
Group, Digital TV by Bharati Telemedia, SUN Direct from the promoters of Sun
TV. There are some other companies who are contemplating to start their own
DTH like Videocon.

There is an immense opportunity for DTH in the Indian market. The


opportunity in India almost 10 times that in developed countries like the US and
Europe. For every channel there is a scope for broadcasting it in at least ten
different languages. So every channel multiplied by ten, that is the kind of scope
for DTH in the country.
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DISH TV

Dish TV is a DTH satellite television provider in India, using MPEG-2


digital compression technology, transmitting using NSS Satellite at 95.0. Dish Tv's
managing director and Head of Business is Jawahar Goel who is also the promoter
of Essel Group and is also the President of Indian Broadcasting Foundation.

DTH service was launched back in 2004 by launching of Dish TV by Essel


Group's Zee Entertainment Enterprises. Dish TV is on the same satellite where DD
Direct+ is. Dish TV started its service in Pakistan with the collaboration of Budget
Communication.

Dish TV was only DTH operator in India to carry the two Turner channels
Turner Classic Movies and Boomerang. Both the channels were removed from the
platform due to unknown reasons in March 2009.
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Satellite link

Dish TV uses NSS-6 to broadcast its programmes. NSS-6 was launched on 17


December, 2002 by European-based satellite provider, New Skies. Dish TV
hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the
satellite was to increase the channel offering as NSS 6 offered more transponder
capacity.

Sun Direct DTH

Sun Direct (Tamil) is a DTH satellite television provider in India, using


MPEG-4 digital compression technology, transmitting on INSAT 4B at 93.5°E.
and MEASAT-3 at 91.5°E. It is the country's first MPEG-4 technology DTH
service provider. It is No 2 in South Asia with a customer base of 5.8 Million

Sun Direct is a DTH service in India, with its headquarters in Chennai,


Tamil Nadu. Sun Direct is a 80:20 joint venture between the Maran family and the
Astro Group of Malaysia. Sun Direct TV was registered in February 16, 2005.
However, the failed launch of INSAT 4C resulted in a lack of transponders,
delaying the launch. The service was finally launched on 18th Jan 2008 after
availability of transponders from INSAT 4B.

Sun Direct offered subscribers a satellite dish and Set-top box for free and
basic monthly plan as low as ₨.75 (approximately). Because of this it achieved 1
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million subscribers in 200 days. Currently basic monthly plan costs ₨.110
(approximately).

On July 07, 2010 a power glitch in the INSAT 4B satellite turned down the
DTH system partly and SUN Direct announced that the service will be free till
whole services are restored. The partial service was restored on INSAT 4B with
193 channels and meantime SUN Direct is now transmitting 173 channels on
MEASAT-3 for uninterrupted transition of its customers from INSAT 4B at
93.5°E. to MEASAT-3 at 91.5°E.

Sun Direct HD

Sun Direct is also the first to provide high-definition television services in


India. It broadcasts the HD beam from Measat 3 at 91.5.Starting with two HD
channels (National Geographic Channel HD and Tamil / Telugu HD Service).It is
the first DTH service provider to show IPL 3 in HD format and has tie up with
SET MAX.

Currently it's HD package has,

• National Geographic Channel HD

• Discovery HD

• SUN TV HD * Upscaled

• Colors HD * Upscaled

• Tamil HD Service
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• Telugu HD Service

• i-Concerts HD Test

Rapid Growth

Because of the lowest pricing of any DTH in India, Sun Direct spread rapidly all
over the country. In December, Sun Direct was launched in Mumbai and
announced its pan India launch. By 2009 it became the leading DTH provider with
3 million subscribers. This makes it the second largest DTH service provider of
India. And In April 2010 it became the No. 1 DTH service provider of India with
5.8 million subscribers; Sun Direct officially launched its HD service in India.

Tata Sky

Tata Sky is a DTH satellite television provider in India, using MPEG-2


digital compression technology, transmitting using INSAT 4A at 83.0°E.

It is a joint venture between the Tata Group, that owns 80% and STAR
Group that owns a 20% stake. Tata Sky was incorporated in 2004 but was launched
only in 2006. It currently offers close to 264 channels (As of August 2010) and
some interactive ones; this count includes some numbers off HD channels offered
by Tata Sky (as Tata Sky - HD) and interactive services also.

The company uses the Sky brand owned by British Sky Broadcasting. In
October 2008, Tata Sky announced launching of DVR service Tata Sky+ which
allowed 90 hours of recording in a MPEG-4 compatible Set Top Box. The remote
is provided with playback control keys and is being sold with special offers for
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existing subscribers. In 2008, Singapore-based Temasek Holdings picked up 10%


stake in Tata Sky from the Tata Group. This has diluted Tata's stake in the venture
to 75%.

STAR’s parent company, News Corporation, owns an International group of


DTH businesses that include Sky Italia in Italy and Foxtel in Australia.

Tata Sky+

Tata Sky HD was launched on June 14, 2010, and has channels in their
native resolution of 1080i or 720p. The STB is compatible with 5.1 CH surround
sound as well. Starting with three HD channels National Geographic Channel HD,
Discovery HD, Showcase HD (Pay Per View) more channels such as Star Plus HD,
Star Movies HD and other popular sports channels in HD format are expected to be
added soon. The High Definition DVR was launched in July 2010.

Certifications and Honors

ISO 27001:2005 accreditation

In March 2009, Tata Sky became the first Indian direct-to-home (DTH)
service provider to be awarded the ISO 27001:2005 accreditation, the benchmark
for information security. ISO 27001:2005 is an international standard that provides
specifications and guidance for the establishment and proper maintenance of an
Information Security Management System (ISMS). The assessment for the
certification was conducted by Intertek Systems Certification, the management
systems business unit of Intertek Group. This certification confirms that every
transaction carried out through Tata Sky’s IT systems are highly secure.
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SUPERBRAND 2009 – 2010

Tata Sky was selected as a SUPER BRAND for the year 2009-2010 by an
independent and voluntary council of experts known as Superbrands Council. It is
the only Indian DTH to have won this distinction

BIG TV

Reliance BIG TV limited is a part of Reliance Communications Ltd., a


subsidiary of Reliance Anil Dhirubhai Ambani Group founded by the Late
Dhirubhai Ambani, the Indian business tycoon and owned by his son Anil Ambani.
BIG TV started operations from 19 August 2008 with the slogan "TV ho Toh BIG
Ho" ("If you have a TV, make it BIG"). It currently offers close to 240 channels
and many interactive ones, 32 cinema halls (i.e Pay Per View Cinema Channels) as
well as many Radio channels. The company plans to increase the number of
channels in the near future to 400 and begin High Definition (HD) broadcast. It is
the first Pan-India DTH provider that uses MPEG-4 for broadcasting. There are
also plans to introduce services like i-Stock, i-News and other such interactive
services in the future.
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Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing
the consumer with quality and enriched home entertainment service at value-driven
pricing.

The available opportunity today is huge considering the fact that India has an
existing population of 225 million TV households out of which 130 million are
C&S households and 16.5 Million are DTH households. When Reliance BIG TV
was launched, the overall DTH penetration was just about 4 million households.

The pre-launch surveys showed that the biggest stumbling block in the growth of
DTH was the accessibility to the product coupled with the fact that the existing
players were charging anywhere between Rs. 3,000 to Rs. 4,000 per connection.
Even at that price the quality of product being given to subscribers was not up to
the mark.

This understanding gave them the roadmap to launch Reliance BIG TV. They
deployed superior technology to deliver a good quality product, established a vast
network to be able to reach out to consumers and finally a good pricing-packaging
strategy to attract the subscriber.

Reliance BIG TV's launch in August was probably the biggest roll-out in home
entertainment ever. They deployed the most advanced MPEG4 technology that
enabled them to deliver best quality digital audio-video to the consumer. That
apart, it also got prepared for the future when Hi-Definition TV will be launched in
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India because only MPEG4 technology can support HD TV and not MPEG2 which
is used by the earlier entrants in the DTH industry.

The MPEG4 technology also gave them advantage of broadcasting at least 50%
more channels compared to the competitors. The superior compression technology
of MPEG4 helps them to broadcast up to 35 to 40 channels per transponder and
with 12 transponders in hand gave them the unique edge of being able to broadcast
over 400 channels. They are currently utilizing only 8 of their transponders to
broadcast over 200 channels. They are offering Channels in various packages like
Value Pack, Bronze Pack, Silver Pack, Gold Pack, Diamond Pack and Platinum
Pack and Reliance BIG TV announces 3 New Packages w.e.f from 16th Feb 2010
which are New Value Pack, Bronze Plus Pack and Silver Plus Pack.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns
in India. This was literally unheard of in the DTH industry. They had effectively
out-stripped the competition here. When it came to pricing – packaging, their
introductory offer stood at Rs. 1,490/- with 3 to 6 months of free subscription.
They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH
player. Not just that, while other players made subscribers pay for each movie,
Reliance BIG TV introduced the unique concept of Subscriber-Video-On-Demand
(SVOD) under which the subscriber paid a monthly subscription of Rs. 50/- to get
a 24 x 7 access to the 21 PPV channels showing Hindi and Regional Films. We
were also the first to introduce dedicated PPV channels for Marathi, Gujarati and
Bhojpuri films.
SCOPE OF DTH MARKET IN WADALA

Airtel digital TV

Airtel Digital TV (Hindi: एयरटेल िडिजटल टीवी) is the brand name for Bharti Airtel's
DTH (Direct to Home) service in India. It uses MPEG-4 digital compression with
DVB-S2 technology, transmitting using INSAT 4CR 74°E. Airtel digital TV
service was launched on 8 October 2008. It currently has over 3.5 million
subscribers.

Technical information

Airtel digital TV's standard definition broadcasts are in MPEG-4 with Interactive
Service (ITV) and 7-day EPG (electronic programme guide). Interactive Service
(ITV) of Airtel digital TV includes an add-on service that allows a user to shop,
book movie tickets etc. A universal remote is included in the package that can,
over IR frequencies, control both the TV and the DTH box. Like other DTH
service providers, it also provides a Video on demand interactive service that
includes a catalogue of movies in Hindi, English and other regional languages that
can be ordered on demand.

DD Direct+

DD Direct+ (Hindi) is a free Direct to Home (DTH) service that provides satellite
television and audio programming to households and businesses in the Indian
SCOPE OF DTH MARKET IN WADALA

subcontinent. Owned by parent company Doordarshan, DD Direct Plus was


launched on December 16, 2004.

It competes with cable television and other DTH Service providers such as Dish
TV, Tata Sky, Sun Direct, Airtel digital TV, Big TV and Videocon D2H
throughout India.

There are now 37 private channels.

Today the market shares of various players are as follows

DTH Industry Market Share


Brand Promoter Market Share
Dish TV Zee group 30%
SUN Direct Sun by SUN TV 25%
Tata Sky Tata Sons & Star TV 22%
BIG TV Anil Dhirubhai Abani 13%
Group
Airtel Bharati telemedia 8%
D2H Doordarshan 2%
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• Dish TV : 30% Market Shares


• Sun Direct: 25%
Dish TV
• Tata Sky: 22% Sun Direct
• BIG TV : 13% Tata Sky
• Airtel : 8% BIG TV
Airtel
• D2H : 2%
D2H

PRODUCT LINES AND CONSUMER BEHAVIOUR

Range of products

• Set-Top-Box.

• Head-Antenna.

• Cable

• DVD

• Remote

• LCD TV/PLASMA TV/CATHODE RAY TV/LED TV


SCOPE OF DTH MARKET IN WADALA

Product description

SET-TOP-BOX:

The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.

Head-antenna:

Antenna which receives signals directly from satellites,

Cable:

Cable connects antenna to the set up box.

DVD:

One of the recent entrants into DTH industry is Videocon. This came with set top
box with DVD.

ACCESS CARD:

The access card is another important thing in the set top box setup where the access
card will receive the signals directly from satellite trough head top antenna.
SCOPE OF DTH MARKET IN WADALA

LCD TV:

Some companies are offering the whole set of LCD TV with DTH connection. And
in the case of cathode ray tubes and in case of PLASMA

Remote:

A compactable remote for both SET UP BOX and TV is used in operating both TV
and Set top box.

Complimentary Goods

LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic
and paper which are used for recharge cards.

Substitutes

Local Cable Operators, Inter-Net which is bringing many facilities like live TV
channels, along with the net browsing, Theaters, radio stations, I pods.
SCOPE OF DTH MARKET IN WADALA

CHAPTER 5

CHALLENGES FACED BY
DTH INDUSTRY
SCOPE OF DTH MARKET IN WADALA

1. POLICY AND REGULATION

Being a nascent industry, there are lots of teething issues with the current policy
framework and the way it is regulated in reality. Some of the notable changes faced
are as below:-

Lack of excusive content

In the global DTH market, competition is mostly on providing niche content.


In India, TRAI does not allow a broadcast to offer content exclusively to a specific
player. Hence content differentiation as a USP is not possible currently in the India
scenario. TRAI has clearly indicated that exclusivity can be provided only when
DTH market matures and there is prefect competition in the market place. But
DTH operators are feeling that without content differentiation, the competition can
only be on price which may even cannibalize the industry.

The rule of “Must Carry”


SCOPE OF DTH MARKET IN WADALA

DTH operator is obliged to carry all the channels provided by every


broadcaster on a non-discriminatory basis. However, with the capacity constraints
in place, this on a feasible. So in cases, where the operator is willing to broadcast
only the popular channels, the broadcasters either deny giving the entire bouquet or
charge prices for the complete bouquet. The litigations shows the extent of
problems cropping up due to this clause.

Operators like Dish who have more transponders and operators who have a
cable company backing like Sun Direct are supporting the “Must Carry” clause
where as transponder-scarce new entrants like Bharti Airtel are against this clause.

Cap on Foreign Investment

As per the current policy, the total foreign equity including


FDI/NRI/OCB/FII cannot exceed 49% and within that FDI component cannot
exceed 20%. This would reduce the interest of foreign investors as they cannot get
a controlling stake in the company in spite of a heavy investment. On the contrary,
up to 74% of foreign equity, with no limit on FDI, is allowed in the Cable industry.

With DTH being a capital intensive industry, these limitations hurt the expansion
plans of the cash constrained operators

Cap on Cable Company/Broadcaster Investment

In order to ensure a fair competition, the current regulations restrict the cap
on Broadcasting/Cable company investment in the DTH venture to 20% and also
SCOPE OF DTH MARKET IN WADALA

prevent the DTH firm to hold more then 20% in a Broadcasting/Cable company.
As one can see, DTH operators are able to overcome this challenge by spinning of
new companies. But removing this would reduce the bureaucracy involved and
also reduce the content cost for an operator due to the synergies created between
him and the Broadcaster.

Interoperability issues

TRAI mandates an open architecture for STBs to ensure technical


interoperability but in reality this is not being implemented. However, with
increasing consumer awareness, the dilution of this rule would soon be corrected.
In addition, in the recent consultation paper, TRAI also wants out the commercial
interoperability (The ability to return a purchased STB or lease a STB) route.
Although this is good from the consumer point of view, DTH operators cannot
build a switching cost for the end user

2. Non-availability of Transponders

A ku transponder can be used for12 to 20 channels depending on the


compression (MPEG 2 or MPEG 4) technology used in the satellite. A DTH
operator will at least need 5 to 8 transponders to compete in the market.

Right now, ISRO has INSAT 4A and INSAT 4B in the orbit with 12 Ku
transponders each. The next in the line is INSAR 4CR due in September 2007,
SCOPE OF DTH MARKET IN WADALA

which will up another 12 Ku transponders. INSAT 4G was launched in 2009-10


with a capacity of 18 Ku transponders. Also with the launch of INSAT 4G, ISRO
would have used up the entire spectrum that was allotted to it by WARC, ITU.

Even with 54 transponders by 2010, with 7 operators, the demand-supply gap is


huge with each operator getting approximately 150 channels. Also if any of these
launches fail like INSAT 4C, it may spoil the plans of DTH operators.

Current regulation stipulates a DTH operator to use only Indian satellites or in


case of foreign satellites, they have to be approved and leased by ISRO.

3. Quality of Service Issues

There are couples of QoS issues which currently affect the DTH operators.
They are

Technical Glitch – Rain Fade

By definition, Ku band signals get weakened by rain and snow. This results
in reduced image clarity and sometimes total cutoff. This is a fundamental problem
with the design of the transmission frequency. In India, people are glued to their
TV soaps and sports events like Cricket matches. So even a tiny service disruption,
during these events is seen as a major weakness of the DTH platform.

Poor Levels of Service

A search on India’s popular consumer forum Mouthshut.com reports that


only 28% recommend Dish TV and 57% recommend Tata Sky. Even with the
skew for errors and incorrect data, this shows the low satisfaction levels of
consumers. Some of the glaring complaints are Poor after-sales support, Removal
SCOPE OF DTH MARKET IN WADALA

of channels off air without notification, Open-ended contractual agreements


favoring the operators and Lack of grievance cells.

CHAPTER 6

COMPETITION IN

MARKET
SCOPE OF DTH MARKET IN WADALA

The structure of the DTH industry in India can be categorized as an


“Oligopoly”. The word Oligopoly is derived from the Greek for few (entities with
the right to) sell. An oligopoly is a market form in which a market or industry is
dominated by a small number of sellers (oligopolists).

An oligopoly is a market dominated by a few large suppliers. The degree of


market concentration is very high. Firms within an oligopoly produce branded
products and there are also barriers to entry.

Key characteristics of “Oligopoly” are following:


SCOPE OF DTH MARKET IN WADALA

• Few larger supplier dominates the market

• Interdependence between firms

• Each firm produces branded products

• Significant entry barriers into the market in the long run which allows firms
to make supernormal profits

• Each oligopolist is aware of the actions of the others.

Analysis of Indian DTH industry:

Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+
was launched since DD Direct+ is non commercial and free DTH hence we would
focus our discussion on private players in the industry.

As of now Dish TV, Tata Sky, Big TV, AirTel Digital TV, Sun Direct are in
the industry. There are some other players like Videocon, who want to join this
highly lucrative industry. Since there are only 3 major players and the market
concentration is very high Indian DTH industry is oligopolistic.
SCOPE OF DTH MARKET IN WADALA

Entry Barriers in DTH industry

The DTH industry is a high tech industry and it requires lot of capital
investment. The initial cost of setup for the company itself is very high, it requires
tranponders and other high tech equipment. The following entry barriers exist in
DTH industry

1. High initial setup cost of satellite, transponder and other higtech


equipment: The initial cost of setup for broadcaster is hugh so this acts as a
big entry barrier.

2. DTH is a low margin and high volume industry: DTH though is a


lucrative business however it is a low margin and high volume industry. For
a new entrant to succeed it has to ensure that it builds customer base soon
other wise it will not be possible to make profit.

3. Cost of a set top box: The cost of setup box installed in a home is still very
high and the cost of a set top box is a significant entry barrier. Higher
number of subscriber can bring down the cost incrementally.
SCOPE OF DTH MARKET IN WADALA

4. Pricing has to be competitive versus cable: For a new entrant to be


successful it is going be very difficult as they entrant will to compete with
local cable operators as well as existing DTH service provider. There are
already established players in the market and the price war has already
started.

5. Differentiation through content: There are hundreds of TV channels in


India and as per the industry reports there are close to 150+ channels waiting
for approval, this take the numbers to 400 different TV channels. So
providing the right content to the right consumer will also play a critical role
in success of new entrant, differentiation through content is must.

6. Customer Service: The quality of customer service will be a key


differentiator. As Indian consumer are habitual of calling the cablewalah
whenever there is some issue. A new entrant will face challenges in two
fronts; One to ensure that it is providing better customer service than local
cable operators and on the other hand it has to provide better customer
service than existing DTH service provider.

7. Multicultural & Multilingual Geography: India being a multicultural,


multrilingual society it is very important for the new entrant to ensure that it
maintains a fine balance between the regional and nation flavor.
SCOPE OF DTH MARKET IN WADALA

8. Long gestation and break even period: It takes lot of time to for a new
entrant to stabilize and grow in this industry. Even achieving the break even
period is comparatively high. The Dish TV from Zee which was launched in
2003 will reach break even in 2009(6 years) and Tata Sky launched in 2006
hopes to break even in 5-7 years. This long break even period is a significant
barrier for new entrant.

9. High Cost of content: The cost of content is high in this industry and poses
a serious challenge for the service provider.

CHAPTER 7
SCOPE OF DTH MARKET IN WADALA

AREA

WADALA

Wadala (also spelled Vadala, formerly spelt Wuddala) is a residential central


suburb of the city of Mumbai. Wadala Road is a station on the Harbour Line of
Mumbai's railway network.

Overview

Wadala has several schools and some renowned institutions like Veermata
Jijabai Technological Institute (V.J.T.I), The University Institute of Chemical
Technology (formerly The University Department of Chemical Technology
(UDCT)) and Khalsa College, located near one another. SNDT Women's
SCOPE OF DTH MARKET IN WADALA

University, Dr. Ambedkar Commerce & Law College also has a campus in Wadala
West. The local college of wadala is SIWS near to wadala station.

It also houses one of India's best eye hospitals, Aditya Jyot Eye Hospital
along with the BPT Hospital and the Ackworth Leprosy Hospital. The Ackworth
Leprosy Hospital was established during British rule, and part of its complex is
now given to an AIDS awareness organisation as well. The world's first methane
generation plant was set up in the Ackworth hospital complex.

Wadala used to be considered as a central suburb of the city of Mumbai, but


is now well within the city limits. The area is bordered by Dadar on the West,
Matunga on the Northwest, and Sewri on the South. The western areas of Wadala
are covered by salt pans, which are on the shores of the Thane creek. On the
Eastern border of Wadala, MMRDA has planned to construct a truck terminus,
spread over 115 hectares (1.15 km2). Mumbai will have for the first time a
centralized facility for the transport of goods by road.

Matunga Sion

Salt Pans, Thane


Dadar Wadala creek

Parel Sewri
SCOPE OF DTH MARKET IN WADALA

Landmarks and architecture

IMax Wadala is the world's largest IMAX dome theater.

Vidyalankar Institute of Technology.

Our Lady of Dolours Church Wadala. The church is situated inside the
campus of St. Joseph's High School, Wadala.

Wadala has a large number of old temples, university campuses and is also
home to the world's largest IMAX dome theater. It is also home to the Vidyalankar
Educational Campus, whose building design has won an international award viz.
Designshare's Honour award. The BEST Transport Museum is also located at
Wadala’s Anik Bus depot. It features amateur mini models of BEST buses and the
ancient trams.

Wadala (East) houses two cemeteries - the Bahá'í Cemetery and the Chinese
Cemetery. These cemeteries were laid out in Wadala a long time ago, for the same
SCOPE OF DTH MARKET IN WADALA

reason that the Ackworth Leprosy Home was built at Wadala viz. Wadala was
considered a distant suburb of the city.

A number of housing colonies exist in Wadala. Some of them are Bhakti


Park, Dosti Acres, Eucress and Lloyd's Estate. Wadala East also has the BPT (now
MBPT housing colony), a large sprawling colony for the port workers complete
with a hospital. Near Antop Hill, the government of India established the
Intellectual Property Office responsible for Controlling General of Patents,
Designs and Trademarks in India.

Over the years, slum development had started in Wadala adjacent to the
railway tracks and a large colony started to settle. In 2006, the state government
took action and cleared the area of slums.

Utilities

Wadala is supplied electricity by BEST. Wadala experiences very few


electricity cuts in a year, if at all. There are a number of schools, colleges and
hospitals. There are police stations in both Wadala West and East. The Voice of
Wadala is the neighbourhood newsletter, in print since 1988. One of the concerns
for residents of Wadala is that it does not have any malls or supermarkets. For
shopping, one has to use local shops, or travel to Matunga or Dadar.
SCOPE OF DTH MARKET IN WADALA
SCOPE OF DTH MARKET IN WADALA

CHAPTER 8

DATA ANALYSIS
&
INTERPRETATION
SCOPE OF DTH MARKET IN WADALA

Scope of DTH Market in Mumbai, Wadala.


Questionnaire

1. Name:
2. Gender?

ANS. O Male O Female

3. . Do you known about DTH?


ANS. O YES O NO

2. Which DTH service do prefer? Why?

ANS. O Dish TV O Sun direct O Airtel O Big TV O Tata sky O Others.

3. Are you satisfied with the service? Why?

ANS. O YES O NO

4. Do you think that DTH is easy to use/operate?

ANS. O YES O NO
SCOPE OF DTH MARKET IN WADALA

5. Is DTH more convenient as compared to cable service?

ANS. O YES O NO

6. Is DTH service satisfactory compare to cable service?

ANS. O YES O NO

7. If you are given chance to switch to DTH from your local cable operator
will you?

ANS. IF O YES, Why

IF O NO, Why

8. Does other members of your family like the DTH service?

ANS. O YES O NO

9. What are the drawbacks found in DTH service?

ANS.

10. If using cable service, why not DTH?

ANS.
SCOPE OF DTH MARKET IN WADALA

CHAPTER 9

FINDINGS
SCOPE OF DTH MARKET IN WADALA

FINDINGS
From the survey conducted following findings have come into the light. The
findings are mentioned below:-

1. Many of the customer/people are aware DTH connection and


majority in the customer are head of the family who had purchase it.

2. Majority of customer have chosen DTH because their friends i.e.


positive word of mouth and friend’s recommendation and ad’s seen in
television are using.

3. Majority of the customer’s are satisfied with the product, due to the
picture quality, function, extra features, etc.

4. Many of the customer said that DTH is easy to operate but on the
other hand customer said that it is not so easy.
SCOPE OF DTH MARKET IN WADALA

5. Majority of the consumer’s feels DTH is more convenient then cable.

6. DTH service is more satisfactory as compare to cable service,


according to the majority of the customer’s s.

7. Majority of the customer are ready to switch to DTH service from


cable service if they again given a chance.

8. Still the majority of the people feel that the customer care department
could be made much better. This means that the customer care
departments are not up to the mark as per the customers’ expectations.

9. Majority of the customer who are using DTH service their other
members in the family also like the service.

10. Majority of the customer faced the problem recharging the


service and reset of the channels.
SCOPE OF DTH MARKET IN WADALA

11. Majority of the customer refuse to answer of this question and


some has given the negative feedback to this.

12. Majority of the customers feel that the overall service provided
by the operator is satisfactory.

CHAPTER 10

SUGGESTIONS
&
SCOPE OF DTH MARKET IN WADALA

RECOMMENDATION

1. It is found that majority of the customer uses the DTH due better
picture quality as compare to Cable

2. It is found that around half of the customer have chosen DTH because
their friends so the DTH company should focus on the important of
positive words of mouth and feedback of the customers by building
the relationship with them. Even single dissatisfied customers can
spread negative word of mouth to his hundreds of his friends and
relatives.
SCOPE OF DTH MARKET IN WADALA

3. The maximum customers spend between 200 to 400 rupees monthly


which indicate the price of all channel is very reasonable.

4. The major problem of DTH is network and recharge facilities which


is core service in the service industry, so DTH should keep this in
mind and do their marketing and planning strategy.

5. There are some people who get the manual response from customer
care after a long time. So DTH must find out the problem and should
employee more customer care, centers.

6. There is some percentage of people whose problem is solved after 2 to


3 days. So it should find out where the things have gone wrong during
the solving of problem.

7. Majority of the customers said customer care would be made much


more better, means they should find out the weakness, so that they can
deliver their hundred percentage to the customer.
SCOPE OF DTH MARKET IN WADALA

8. The image of postpaid service is very bad in the customers find, so the
company should improve this by giving proper service in addition to
the attractive plans.

9. Majority of the people are waiting for the number portability proposal.
Even the satisfied and the happy customers also enthusiastic about
this. The company may give better service and special package to the
customer and make them feel better about service. They should work
hard to make each and every customer honest.
SCOPE OF DTH MARKET IN WADALA

CHAPTER 10

CONCLUSION

CONCLUSION
SCOPE OF DTH MARKET IN WADALA

In this competitive world customer is the king of market. The expected


service of the customer should be match with the delivered service of the
company.

With the effecting and proper communication and marketing strategy a


company can built and maintain the positive relation with its customer and
will probably results in to a successful customer relationship which is
essential for organizational success and developments. DTH is one of
booming sector, company should force on there customer relation and
marketing planning. Customer positive attitude play important role in
organizational success and development.
SCOPE OF DTH MARKET IN WADALA

CHAPTER 11

BIBLIOGRAPHY

WEBSITE

 www.Google.com
SCOPE OF DTH MARKET IN WADALA

 www.sundirect.in
 www.airtel.indigitaltv
 www.dishtv.in

Books and magazine

 India today’s
 Economic Times

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