As per Gartner recent research, “Lack of digital business
competence will cause 25 percent of businesses to lose competitive ranking by
2017.”
The above research finding
was not made exclusive to MSO Cable Industry in India, but it has relevance for
it as well.
GOI has paved the way for
growth for Cable /MSO players by putting Regulation on Digitization of Cable TV
services in India in 2012.While policy makers are refining the ground rules
regularly, it has given an opportunity for Indian MSO to embark into the
journey of providing services likes of leading service providers in the world, and
bench marking their service like Industry leaders across the world-Comcast, Time Warner, Dish TV etc.
Though India being the late
entrant in the journey of digitization, in last three years MSO Industry has
seen many hurdles in putting the processes, laying uniform policies, strengthening
the Cable TV value chain (MSO-LCO), defining tax regime and so on, but the core
objective remain unlocking the potential of industry to lead and build better
customer services.
Phase-1 and Phase-2 of Digitization
saw few leaders from MSO industry being the early movers in putting system in
place through modernization of IT systems. However the larger benefits goes to
STB suppliers and manufactures in cashing the digitization opportunity, which
saw many analyst and investors putting their money into the market. I would
term this phase as Digitization 1.0,
which would be attributed to STB supplier or manufactures, thus enabling MSO to
put STB at homes. This phase did not see much changes in service differentiation
to end consumers, which is eminent from even after phase-1/phase-2 completion,
end users are yet to get personalized services and many MSO/LCO hasn't started
giving monthly subscription bills/invoices to end consumers.
.
With the extended Digitization deadline
across India now, Digitization 2.0
seems to be shaping the MSO Industry for next leg of digitization. This would
largely be focused toward completion of pending digitization for phase-3 and
phase-4.These phases cover majorly rural and small town/cities across India. Phase-3/Phase-4
consumers are more cost sensitive than the consumers of Phase-1/Phase-2. With
the “Digital India” or “Make in India” initiative now by GOI, Digitization 2.0
should see more focus of local STB manufacturing, this curbing the cost of STB’s,
with “made in India” stamp on STBs
put in Indian houses now.This should also lowers the burdun on end customer
while transitioning into digital system.
Digitization 3.0 would foresee many MSO
realizing the next generation services, Industry
consolidation and higher business value for MSO. This phase would pertain to
the real transformation for MSO Industry in India. This seems to be a distinct
possibility in near future, however the foundation has been laid and early steps has been taken by all stakeholders( Government, Industry Players, Investors
etc.), a focused and sustained effort might see this happening in three to
five years time!!