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Reliance Communcations BIG TV DTH Rollout

March 2, 2008

RCom will be rolling out nationwide direct to home (DTH) TV services before 1QFY09. India’s TV-broadcasting industry is in an exciting growth phase. Advertising expenditure, driven by growing consumerism and spending power, is estimated to result in a 15%+ Cagr in FY08-11CL, while the subscription revenues face structural changes with expansion of DTH services and upgradation of cable services on the back of conditional access system (CAS).

Three DTH players Tata Sky, Dish TV and SUN have already launched DTH services with an aggregate of 4.2m subscribers, while RCom and Bharti are expected to start within the next six months. We believe in the event that CAS is rolled over even in phases, in the remaining metro areas and 55 cities across India it would be a tremendous boost to the prospects of the DTH industry proving an upside to our forecasts.

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