Reliance Gets Go Ahead for DTH

Anil Ambani's Reliance-ADAG has reportedly received the letter of intent (LoI) from the Ministry of Information and Broadcasting (I&B) to foray into the direct-to-home (DTH) broadcasting service in the country. Reliance Communications, however, declined to comment on this development. The government has reportedly asked the company to complete formalities, including bank guarantee and license fee. The company will now submit fees for the license, which it expects to procure within four to six weeks. Subsequently, the service will be launched within six to eight months. Reliance-ADAG had applied for license to enter DTH services about a year ago when the two Ambani brothers reached a settlement on the issue of ownership of the Reliance Group. The service will be called "Reliance Blue Magic," and Reliance will be the fifth operator to enter the DTH arena after Zee Group's Dish TV, Star TV and Tatas' Tata Sky, Prasar Bharati's DD Direct Plus, and Kalanidhi Maran-promoted Sun TV. Meanwhile, Reliance-ADAG's entry into DTH is seen as the group's strategy to include the entire range of delivery systems through which content can be delivered to customers.