Dish TV caught in bad transmission signals

The market moves in strange and mysterious ways and this is evident in the recent reasoning being applied to Dish TV. The recent slide in stock price is being attributed to investors being a bit ‘uneasy’ about bad transmission signals on DTH service during monsoon.

Investors believe people will move away from ‘direct-tohome’ technology because of ‘frequent interruption’ and ‘unclear picture’ . Dealers maintain that the market is tired of waiting for CAS notification. There is also talk in the market that Dish TV is giving a lot of promotional offers that can negatively impact its bottomline in the coming quarters. “There is a minimum loss (say two hours in a year) of transmission due to varying climatic conditions, which is an accepted case in DTH technology,” said a Dish TV spokesperson.

“As far as schemes are concerned, DTH is still a new technology and needs product promotion to increase adoption. Consequent to our promotional activities, we are getting good response from our customers,” the spokesperson said. Shares of Dish TV ended about 2% lower at Rs 95 on the BSE. The stock has fallen 8% over the past one month.