Prepared byRAHUL KAUSHAL

Proposal for Providing Dedicated Infrastructure for IPTV Services

1. About iSmart TV

2. Business Highlights

3. Industry Analysis

4. Technological aspect

5. Business model

6. Market analysis

7. Competitor analysis

8. Pricing strategy

9. Financial analysis

Agenda:

Name: iSmart TV

LOGO:

Location: Pune

Tagline: One Solution for Multiple Screens….

Mission: Discover the magical experience of digital entertainment with iSmart TV. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on iSmart TV.

Vision: By 2020 iSmart TV will be the most loved brand, enriching the lives of millions.

Core values: Content of the highest quality and integrity Fair treatment of employees based on respect,

accountability and standards of excellence.

Business highlights:

In its first phase iSmart TV started providing IPTV services to customers in 2012 and started operations in Pune .

It offers triple play advantage of telephony, broadband and TV, Video‐on‐Demand, Time shift TV, and Interactive 2.0 (includes options like freedom of ordering pizzas and movie tickets from TV set)

Organization Structure

CEO/DIRECTOR

LEGAL ADVISOR

TECHNICAL ANALYST

NETWORKING

ENGINEER

SYSTEM SUPPORT

ADMINISTRATOR

BUSINESS ANALYSIS

QUALITY ANALYST

HR/ADMIN

OFFICE BOY

MARKETING MGR

MARKETING EXE.

MARKETING EXE.

FINANCE MGR

ACCOUNTANT

Industry analysis:

India has the world’s third largest TV market after China and USA. During the year 2010-11, the TV households in India have grown from 136 million to 143 million.

The market size of India’s TV industry increased from Rs 25,700 cr. in the year 2009 to Rs 29,700 cr. in the year 2010, registering a growth of 15%.

Cable DTH IPTV

Growth in number of Cable TV subscribers (in millions):

Growth of DTH sector in terms of the subscriber base (numbers in million): 

Growth of Satellite TV Birth of

HDTV

Rise of digital cable

TV

IP TV

Television - The Changing Landscape

Technological aspect:

Business Model:

IPTV current status: Subscriber base: Over 21,000 (as of August 2011) Broadband subscription in India: 9.59 million (as of

February 2012) Service providers offering IPTV: BSNL and MTNL (under

the MyWay TV brand), Bharti Airtel, RCOM, etc. Technologies deployed: ADSL2+, VDSL, metro Ethernet etc. Services/Content offered: Multicast, VoD, time shift TV Road map for the future: Introduction of FTTH, broadband

growth at 5 million per year, high definition TV, blended services through proposed next-generation networks and service delivery platforms.

Future Outlook for IPTV in India

Growth of IPTV is depending upon broadband subscription growth and IPTV penetration within broadband subscribers.

Competitor analysis:

India's first IPTV deployment took place in 2006, when Mahanagar Telephone Nigam Limited (MTNL) rolled out IPTV services in Mumbai over its digital subscriber line (DSL), asymmetric DSL and ADSL2+ network infrastructure.

BSNL: BSNL, the country's largest IPTV player, launched its nationwide IPTV network in January 2009, adopting a franchisee model by tying up with the Smart TV Group and Aksh Optifibre. The company's IPTV portfolio comprises over 140 TV channels in addition to value-added services such as movies-on-demand.

BSNL is reportedly targeting over 3 million IPTV subscribers in 93 cities over the next two years.

MTNL: MTNL introduced its IPTV services in Delhi in 2006. At present, it offers telephony services, broadband and IPTV using a single connection.

Airtel: The early-2009 launch of Bharti Airtel's IPTV service, At present, the company offers plans ranging from Rs 399 per month to Rs 1,899 per month.

Reliance Communications: In November 2007, RCOM entered into a strategic partnership with Microsoft to deliver its IPTV service, powered by the Microsoft Mediaroom IPTV software platform.

Aksh Optifibre: Aksh Optifibre, a pioneer in IPTV in India, utilizes the copper-line infrastructure of MTNL and BSNL for rolling out its TV services. It intends to expand its presence in 20 other cities by end-2012, and is accordingly planning investments worth Rs 1.5 billion.

iSmart TV Pricing Strategy:

The company's IPTV portfolio comprises over 150 TV channels in addition to value-added services such as movies-on-demand and offers plans ranging from Rs 399 per month to Rs 1,899 per month.

subscribe to a weekly pack for Rs 20 per channel’s and Rs 10 for a day.

Data charges are additional and are charged at 10 paise per 10 KB.

PROMOTIONAL STRATEGY:

Advertisements Pamphlets Holdings Radio Newspaper camps e-advertisements social media etc.

Advantages of iSmart TV over DTH Plus  

iSmart TV DTH Plus

Maximum Simultaneous Recording

All Programs 2 programs

Maximum Recording Time Limit

10,000+ hours Max. 90 hours

Can I records during Power-cut

Possible Not Possible

Forward/Rewind All Programs Only recorded program

Pause when STB Memory Full

Possible Not Possible

iSmart TV OPEX cost:

OpEx for network in operation: Telco-specific continuous cost of infrastructure (shared; two-

phased scheme) maintenance (shared; activity-based costing) reparation (shared; activity-based costing) service provisioning (direct; directly allocated) pricing and billing (shared; directly allocated) operational planning (shared; activity-based costing) marketing (direct; directly allocated)

OpEx associated with setting-up the network: up-front planning (shared; two-phased scheme) first-time installation (shared; two-phased scheme)

Classification of CapEx costs for Telco:

Network infrastructure (shared; two-phased scheme)

e.g. equipment Network software (shared; two-phased scheme)

e.g. network management system Non-telco specific infrastructure (common; not

straightforward)

e.g. land and buildings

36%

64%

DISTRIBUTION OF FUNDS- 2011

CAPEX OPEX

16,034,200

Rs. 2,080,645

Profit and Loss Statement

Net Profit FY 2012-13: -3,264,868 FY 2013-14: 5,373,110 FY 2014-15: 10,602,198

THANK YOU