Several customers are a bit apprehensive over the replacement of their MPEG2 decoders with MPEG4. There are still many subscribers out there who have not received the letter and it has made them wonder whether they will ever get the new decoder. However as stated in the previous post all subscribers who are presently receiving all HBO channels and Star Movies will receive the new decoder.

According to information being received the letters are being sent in batches and replacements are done according to the reply to the letters.

We are also getting information of a new agreement that is being signed at the time of replacing the decoder. According to this new agreement the decoder is the property of Dialog TV. This means that the decoder should be accompanied with a lifetime guarantee. We are unable to confirm this information presently.

It is likely that the September 1st changeover of Star Movies and all HBO channels may not take place if Dialog TV is unable to replace all decoders beforehand. Dialog TV may run a MPEG2 and MPEG4 version of these channels until all the decoders are replaced and then remove the MPEG2 version. However at the present rate it will at least take till the second week of September for all decoders to be replaced.

Here are the results of the poll "Will you move to another Pay Television Operator if Dialog TV does not improve its services".

• Yes - 185 (82%)
• No - 38 (17%)

An overwhelming majority of subscribers are prepared to move if Dialog TV does not improve. So this MPEG4 changeover is very crucial and if Dialog TV does not improve hereafter the Telekom Malaysia can say goodbye to their investment.

Recently certain subscribers are complaining about the Indian influence on many channels. This is due to the close proximity of Sri Lanka to India and getting Asian feeds of these channels can be prohibitively expensive resulting in an increase in a significant increase in the monthly subscription. Only certain channels such as HBO, Star Movies, AXN allow Asian feeds to Sri Lanka for an increased subscription value. Certain networks do not allow the Asian feed to be used in the subcontinent (for example : Star World) and even if they allow the subscription value will be greatly increased. However we believe as the pay television market in Sri Lanka grows and channel operators notice the potential of the business in Sri Lanka, Asian feeds will enter the country.