‘Indian market is a tiered market and this tier will exist here’
What’s ST Microelectronics’ market share in the cable digitization segment of India?
In MPEG 2, we are predominantly on satellite and cable. 5197, an entry-level set-top box and MPEG 2 decoder, is the number one product in the Indian market. In Phase-I of cable digitization, we had 80% market share in cable set-top box market.
The company has supplied products to Chinese manufacturers—Skyworth, Coship, Chang Hong—and Indian manufacturers such as My Box and Indieon Technologies.
For MPEG 4, there are 6 operators. Five operators have moved to MPEG 4 and Dish TV is in the middle of migration from MPEG 2 to MPEG 4.
In MPEG 4, we have 70% market share in India, of which 90% in standard definition and less than 10% in high-definition. We have supplied our products to Skyworth, TechniColour, Videocon, Chang Hong, Coship, and Huawei.
In the gateway class of product, which is MPEG 4 HD, there is no volume production. Its deployment is planned for Q3, 2013, and it will help in deploying hybrid services which will support converged services between broadcast and broadband and will also help in monetizing their return path.
Presently, the product is in production and is being deployed in the Japanese market.
How much is the demand for MPEG 4 HD product in the Indian market?
Gateway is being driven by broadband market. Initially, in a year, it would be less than a million. The Indian market is a tiered market and this tier will exist in India.
How was phase-I and how well placed are you for phase-II?
Phase-I was delayed so we were in a position to support that market. It was a success and cable took a major share. We are very close with all the operators and with respect to forecasting, we will see a big increase in volume. We have the full capacity to meet the deadline of phaseII. We expect 25 mn boxes for cable and satellite and the break-up will depend on how the market evolves.
Is there a shortage of set-top boxes and do you promote portability in STB?
People want to order yesterday and ask us to deliver tomorrow. It takes 20 weeks to make a product. It is a worldwide phenomenon whereby the operator chooses to differentiate boxes and differentiate services. Nowhere in the world this kind of portability exists and it is the government who should take this initiative vehemently. For eg, the Cable Card initiative came from the US government.
pravinp@cybermedia.co.in