The Hindu Business Line : Reliance broadband network in test phase

Mr Subhash Chandra, Chairman, Essel Group, Mr Mukesh Ambani, Chairman & MD, Reliance Industries, and Mr Y.K. Modi, President, FICCI, at the valedictory session of the Frames 2004 in Mumbai on Wednesday. — Paul Noronha

Mumbai , March 17

THE Reliance Group, which is emerging as an important stakeholder in the Indian entertainment industry, should be rolling out its digital distribution platform - the broadband network - in 12 to 24 months.

"We are in an intensive phase of testing. We have completed the alpha testing and are now at beta stage," Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said at the concluding session of the three-day conference, FICCI-Frames 2004, here today.

He spoke of setting up a `Broadband Bharat'. In the process of installing a digital distribution platform, the Reliance Group will look at partnership with content creators, Mr Ambani said on the sidelines of the conference.

The recent acquisition of the US-based Flag Telecom will boost its broadband efforts. Reliance Infocomm Ltd, mandated to realise the Group's broadband plans, is setting up a high capacity optic fibre network that will be 80,000 kilometres long and covering over 1,100 towns and cities.

"It is evolving as a platform for repositories of knowledge and tools for collaboration available to all Indians," Mr Ambani said.

According to him, the country's entertainment industry has before it a wealth creating-opportunity. He estimates the global media and entertainment industry at $1 trillion. "Although, India has the most depth and diversity in entertainment today, we are nowhere in dollar terms," he said.

Of the $1 trillion, US accounts for about half the market. The US makes about 450 movies a year and earns $32 billion (around Rs 1,44,704 crore). In contrast, India makes 800 movies a year but earns $0.5 billion (around Rs 2,261 crore). A similar scenario exists in other segments of the entertainment industry. Mr Ambani feels that digital technology will drive the Indian entertainment industry to grow almost 100 times to $200 billion in 20 years time.

Mr Subhash Chandra, Chairman, Zee Telefilms Ltd, invited for the special address at the valedictory session of FICCI-Frames 2004, said that elimination of piracy could result in Rs 20,000 crore increase to the industry's revenues. "Currently, pirates of Indian content make about Rs 2,000 crore every year," he said.

Mr Chandra maintained that addressability would become a reality when consumers demand it. "The cable industry will be forced to go digital with competing technologies and that will drive addressability," he said.

Though conditional access system (CAS) did not take off, television viewing will continue to be an integral part of Indian homes. "My belief is, there won't be another war fought on territorial disputes but there will be, on who controls mindspace," Mr Chandra said.

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