[Satellite TODAY 03-07-13] CASBAA is expecting a significant increase in demand for satellite transponders required by television broadcasters and DTH operators in India. According to a new study released by the advocacy group, the demand would increase almost three times in the next five years.

   From 73 transponders required by the direct to home (DTH) industry in 2012, the study, "Easing India’s Capacity Crunch", showed that this number will increase to more than 220 in 2017 to meet customer demand. The growth is attributed the continued proliferation of pay-TV services and cable digitization, an expected increase of TV channels in India, and the entry of foreign players.

   According to the study conducted by CASBAA in association with PricewaterhouseCoopers (PwC), India can potentially have approximately 1,600 licensed channels by 2017, of which around 1,300 channels (80 percent) are expected to be operational. Additionally, the Indian Space Research Organization (ISRO) is planning to launch new satellites and procure additional spectrum to meet the increasing demand.

   However, the report indicates that demands would outpace domestic supply of transponders and that foreign satellite operators, interested in investing in capacity expansion in India, could face some challenges.

   "In spite of the urgent requirements for satellite capacity, there are challenges placing practical restrictions on leasing transponder capacity from foreign satellite operators by Indian players," John Medeiros, CASBAA’s chief policy officer said. "Key hurdles include procedural requirements and delays and short contract durations inducing uncertainty for both Indian players and outside investors."