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#1
30-05-2008, 11:48 PM
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Ergen visits India
Ergen visits India
Rose Major and Chris Forrester, Charlie Ergen, chairman and CEO of US DTH operator Echostar (and pictured, left), has just been in Bombay and New Delhi – a guest of prospective DTH operator Videocon. As reported by Rapid TV News earlier in the week, Videocon is seeking a foreign investor as it ramps up to launch its DTH satellite TV platform. While Ergen’s visit has not been confirmed by the company, local reports put him at the offices of both Videocon and Zee-backed Dish TV. Videocon has put aside a reported Rs10 billion (US$233 million) for its platform, but that is not likely to be enough for the service to reach profitability. Zee’s Dish TV, which already has a platform up and running, and well etablished with 3 million subs, recently approved a capital raising of Rs12 billion (US$298 million) to help fund its expansion. That rights issue would be in addition to debt of Rs4 billion already lined up. Hence Videocon’s need for a deep-pocketed foreign investor. India’s DTH market is generally acknowledged to be about to boom, with a handful of new entrants lining up to compete with Zee TV’s Dish, TataSky and Doordarshan. But it isn’t just Ergen who’s in town. So are executives from AT&T, and reportedly have already visited Bombay, New Delhi and Chennai, and again looking at India’s DTH sector
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