Ericsson ties up with Sun TV, Tata Sky2 min read . Updated: 26 May 2015, 11:38 PM IST
New technology from Ericsson will enable Sun TV to reach 95 million subscriber households with a higher quality broadcast
Communications technology and services firm Ericsson announced on Tuesday that it is eyeing a bigger share in the Indian television and content delivery market, which is growing at 12% year-on-year. Content delivery networks include cable, satellite, wireless and IP, or Internet protocol, the firm said.
Ericsson announced tie-ups with direct-to-home (DTH) operator Tata Sky and Sun TV, the broadcast arm of the Sun Group, for its video compression technologies. The new technology will enable Sun TV to reach 95 million subscriber households with a higher quality broadcast and will power all its 33 channels.
Similarly, Tata Sky has also upgraded and expanded its entire DTH platform to a new system encoder from Ericsson. This enables Tata Sky to increase its bouquet of channels with a higher-quality viewing experience. According to Harit Nagpal, chief executive officer, Tata Sky, “This new system encoder will allow us to enhance picture quality, offer increased volumes of channels and content and launch new services on the same platform."
S. Kannan, chief technology officer, Sun Group, said subscribers expect higher-quality broadcast services. “We are committed to providing the same to our consumers," he added.
Globally, according to a research report by Ericsson, there have been significant shifts in TV consumption habits. Some of these will be visible in India as well, thanks to the growing number of smartphones in the country, which will be the main drivers for the growth of mobile data traffic, the report said.
According to the report, by 2020, at least 50% of Internet traffic will be driven by video, globally. There will be 15 billion video-enabled devices. Similarly, half the consumption will be skewed towards on-demand content, compared with linear viewing. To meet changing consumer demands, operators must be able to offer new services, within the constraints of bandwidth, spectrum and networks, the firm said.
Research done by Ericsson also showed that the global pay TV subscriber market alone would be worth $460 billion by 2020. Adding on advertising revenues, licensing, merchandising and a whole host of TV-dependent sub-markets, it could well be a multi-trillion dollar business.
With the Indian market showing promise, the firm said it was building its capabilities, investing resources and looking at capturing 15% share in the Indian TV and content delivery markets by 2017. According to Ericsson, its expanded portfolio in India would include technologies for over-the-top platforms and integration services, among others. Speaking about the opportunities in the Indian market, Chris Houghton, head of India region, Ericsson, pointed out that the TV and broadcast industry in India had been undergoing dramatic changes with the transition to multi-platform, on-demand television. “Our global scale, service offerings and industry knowledge places us as a leading partner for our customers globally," he said.
Said Nishant Batra, vice-president and head of engagement practices, Ericsson India, traction in the TV space in India was only growing as more channels were waiting to be launched. This would only drive the need for superior-quality viewing and video compression, he added.