Telenext Labs endeavors to bring the fruits of convergence to the masses. The value for money proposition offered in this context is the convergence of information, communication and entertainment from a single source there by making the bouquet more economical arid affordable to the consumer. MSOs can play a greater role in this context, as happening in the developed wodd. Cable operators should also be major benefactors for supporting the last mile connectivity, support and maintence The Information angle will be more relevant in the Indian context where the computer penetration continues to be very Iow. Telenext SDP can bridge the information gap, significantly.

Market Analysis

Market Research
The total number of cable households in India is estimated to be between 38-45 million. JP Morgan/cable quest analysts believe that the correct number is likely to be somewhere in between, around 42 million. Of this, about 14 per cent or Rs10.6 billion accrues to the broadcasters on an overall basis. ESPN-Star Sports, which has the largest penetration, claims a reach of around 6.5-7 million homes. The growth in cable homes has been exceeding total TV home growth. This has been primarily driven by the fact that cable programming is much superior in content to what is available on terrestrial channels (which is what a consumer gets if not connected through cable, through antenna's). There are no major STB production units in India. All the existing solutions providers are importing the ready product from the global manufacturing bases. The market is growing, and in the domestic CAS market, there are no end-to-end solutions avai!able as of Current information. There are around 7 international players, and three to for domestic players vying for the market.

Market Segments
The Premium TV viewing category, belongs to the lower middle class and above are the primary market for the addressable Conditional Access Box. Telenext plans to target this market through the MSOs. Once the middle class and above are saturated, the pay-TV would penetrate into majority of the TV viewers in the cities, and eventually to large villages.