[Satellite TODAY Insider 12-20-10] PakSat is optimistic that the DTH market in Pakistan will see some movement in 2011, as the operator gets ready to launch its Paksat-1R satellite. However, generating this pay-TV movement may require a complex strategy, PakSat CEO Usman Bajwa told Satellite TODAY Insider.
    “With the upcoming launch of Paksat-1R, potential DTH players have conveyed interest in reserving capacity on the satellite,” said Bajwa. “We are very hopeful to see DTH projects being announced in 2011. We look forward to development of a robust domestic DTH market, as it is one of the key segments that is expected to drive the growth of Ku-band market in the medium term which is an important consideration for our plans to launch additional satellites.”
    One of the most important challenges for PakSat to overcome is piracy. According to Bajwa, a significant number of Pakistani households already rillegally receiving Indian DTH services. 
    “There is a gray market for Indian DTH in Pakistan. Our industry estimates range from 200,000 to 350,000 boxes. Indian DTH has basically filled a vacuum over a period of last seven to eight years, because of the unavailability of Pakistani DTH platforms. This, of course, is an issue for upcoming DTH platforms, and with renewed interest in the launch of DTH in Pakistan, there is now increasing demand from the industry to take appropriate legal and regulatory measures to address this issue,” said Bajwa.
    While gray market operators will charge premiums for services, Bajwa believes that Pakistani DTH operators can convert this grey market to their advantage through intelligent packaging and stronger regulatory enforcement.
    “The tremendous growth in India for DTH services underscores the potential need for such services in Pakistan. India today has seven DTH operators and over 25 million DTH subscribers. The Indian experience demonstrates that there is a need for such a service in our region and also highlights the competitive challenge from incumbent cable operators in terms of pressure they put on DTH ARPUs, which suggests that DTH business is a long term commitment, and companies having the holding power will be able to reap the rewards,” said Bajwa.

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