A shortage of Ku-band transponder (used for communication, and particularly for broadcast services) capacity is looming large on the horizon for direct-to-home service providers. With an increasing number of TV channels and many standard definition channels getting converted into high definition ones, DTH players have to juggle with regional and national channels to retain their subscriber base

As of now, there are over 800 satellite channels in India. Recently, the Government had mandated cable operators to raise their head-end capacity to accommodate 500 channels. But, DTH operators have a capacity to take on hardly 350 channels. This prevents all the DTH players from carrying many regional channels, which is important to retain their subscriber base, particularly in rural markets.

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