There was a ‘Yet Another World’s cheapest’ post on Tata Group a while back regarding Tata Swach water purifier, and guess what, here is another of the same kind. Tata Sky DTH Set top box is now priced at only Rs.999, which was at Rs.1599 before. Tata Group has some un-canny knack to bringing these price wars to the Industry’s they are in. It was Tata Sky back in 2006 that raised the price war by introducing a much cheaper DTH to fight the then only commercial DTH, Dish TV. Few years back, it was Tata Nano, the World cheapest car, Tata Swach, world cheapest Water purifier and then it was Tata Docomo that bought a change in the system on how the Telecom industry functions by introducing the revolutionary 1 paisa per second offer.
Now this decrease of Tata Sky DTH Set top box price to Rs.999 is sure to make its ripples felt by other players. This price of Rs.999 includes the hardware and Installation costs. It’s bank of over 5.5 million subscribers, second highest in India after Dish TV, should go even higher now.
Note that this only applies to normal Tata SKY DTH set top box, but not to Tata SKY Plus or HD set top boxes’.
The DTH industry in India is quite different from other places, say in United States. There, the Set top boxes are provided for free when a user wants to subscribe to a Satellite TV service. Since the ARPU (Average revenue per user) levels are much higher, service providers are able to afford to give STB’s for free. When it comes to India, it’s a complete U Turn, the ARPU (average revenue per user) is extremely less and hence the Hardware is being charged by providers.