Tata Sky may get a boost with TTSL deal

By packaging broadband and DTH, Tata Sky could have an edge over its rivals

Tata Sky may have a chance at building a communications ecosystem if Tata Group decides to combine the fixed-line and broadband businesses of Tata Teleservices (TTSL) with the former’s direct-to-home (DTH) business. While no decision has been taken yet, the move, if taken could mean a leg up for Tata Sky in terms of services, said sector experts.

While announcing the sale of its mobile consumer business to Bharti Airtel last week, Tata Group had hinted at combining its enterprise business with Tata Communications and its fixed-line and broadband businesses with Tata Sky.

“What a lot of cable digital companies are banking on is the convergence of broadband and cable services. If the broadband business (of Tata Tele) is merged into Tata Sky, then the DTH operator has the chance to expand the scope of its services,” said an analyst.

TTSL’s latest annual report said that the company provides its range of products and services to about 42 million wireline and wireless subscribers. While it may not mean direct customer acquisition for Tata Sky, it would still increase its chances of getting new customers through packaging services.

For Tata Sky, this could be the opportunity to cast a wider net, especially with phases three and four of digitisation, where many cable-dark and broadband-dark territories could be reached. By packaging broadband and DTH services, the company could have an edge over its competitors such as Dish TV from Essel Group. It could also give Tata Sky an edge over DD Free Dish, the DTH service of the public broadcaster, which has been attracting consumers with its extremely competitive pricing.

Reliance Jio has a similar strategy with its telecom ecosystem and entertainment services. While consumers have the option of buying Jio SIM cards like any other telecom service provider, the company has launched portable internet devices which have 4G data service. Jio along with other telcos such as Vodafone and Airtel is also building a content library for its media and entertainment apps.