Telecom companies and internet service providers are ramping up efforts to transition India's 120 million cable TV households to Internet Protocol Television (IPTV). IPTV, which delivers television content via the internet, is being positioned as a modern alternative to traditional cable and direct-to-home (DTH) services. Leading players such as BSNL, Bharti Airtel, Tata Play, and Excitel are betting on this technology to drive the next wave of home entertainment services, particularly among households yet to embrace streaming platforms.
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Ramping Up IPTV Efforts in India
However, industry experts warn that low fibre connectivity to homes and resistance from cable operators could impede progress, according to an ETTelecom report.
"Telcos are trying to offer it (IPTV) as an option which is comprehensive for all home needs and affordable. But we have not seen much penetration because of its heavy dependency on strong access network technologies," said Vinish Bawa, partner and leader telecom at PwC, as quoted in the report. "It's imperative to have a robust network to support unicast services while it reaches customers for consumption."
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IPTV to Disrupt Traditional DTH and Cable Services
Bawa reportedly said he expects IPTV to emerge as a major cause of churn for traditional DTH and cable services in the near future, driven by its advanced features and flexibility.
Prashant Singhal, TMT emerging markets leader at EY Global, noted that TV consumption patterns have changed. "We do not need 500 channels anymore. Unless IPTV offers a better viewing experience at a lower price point, customers would not want to switch," he added, as per the report.
Role of Broadband Infrastructure
The report also cited a recent EY study, which found that fixed broadband penetration in India stands at just 2.85 per 100 people—nearly a quarter of the global average. Only 13 percent of households currently have broadband access, underscoring the scale of infrastructure investment required to support IPTV.
The primary challenge for cable providers is upgrading coaxial networks to last-mile optical fibre—a process demanding significant capital expenditure—due to the high-speed, reliable connections streaming requires, which remain poorly penetrated at the household level, according to the report.
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Excitel Targets Major IPTV Set-Top Box Rollout
“MSOs (multi-system operators responsible for transmitting cable TV) are losing customers at 3 percent per month, and these viewers aren’t coming back," Vivek Raina, cofounder at Excitel, a Delhi-based home broadband provider, was quoted as saying in the report, Excitel is targeting 2 million Android-enabled IPTV set-top boxes over the next 18 months.
"The only way to reverse this trend is to offer something better, not by charging more, but by replacing existing cable set-top boxes with IPTV boxes at no cost to the customer," he reportedly said.
Raina added that although this requires investments, there are also opportunities to cut costs while leveraging the existing cable operator base. "We spend Rs 1,500-2,000 per broadband sale. With this (conversion to IPTV boxes), we simply give the operator the boxes and ask them to replace the old ones. My sales cost drops to zero," the Excitel co-founder was quoted as saying.
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MSOs Face Customer Losses
Historically, cable TV operators have been reluctant to upgrade to internet TV, as their earnings per connection dropped sharply from Rs 200–250 to just Rs 20–30. According to the report, this decline followed decisions by major broadcasters like Sony and Star to stop working directly with MSOs.
"For years, we have witnessed local cable operators cut fibre every time telcos tried to get into the business," said the founder of a Mumbai-based service provider.
Opportunities for IPTV in India
With partnerships in place with OTT platforms like JioHotstar and Zee5, Excitel is also extending tie-ups to traditional broadcasters, aiming to offer a bundled IPTV experience. "It's a natural progression and this shift has to happen sooner or later," Raina was quoted as saying in the report.
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