WWIL stands to gain from HITS system; stock up 9 pc

MUMBAI: The Cabinet approval for an Information & Broadcasting ministry proposal to issue policy guidelines for putting up headend-in-the-sky (HITS) system boosted shares of Essel Group���s Wireless and Wireless India. At present, only Wire and Wireless India Ltd and Noida Software Technology Park Ltd have permission to offer HITS services.

Following the development, shares of Wire &Wireless India were trading at Rs 22.25, climbing 9.07 per cent on the BSE.

HITS technology enables the broadcast of numerous TV channels from a single satellite system after aggregating them on ground from different satellites. The aggregated signals are uplinked to a single satellite for further distribution to cable operators directly or through multi-system operators. HITS will allow better access to rural areas and is likely to have a major impact on the way television audience is measured.

This will allow transparency in subscription base for the government and cable operators will be able to install a small device costing about Rs 2-3 lakh that can download these signals and distribute digital signals to subscribers through the existing cable network. This system is expected to bring down the cost of set-top boxes besides cutting down on capital investment and operational costs.

Another recommendation by TRAI that has been accepted by the Cabinet is the restriction on cross-media holding of 20% of the total paid-up equity for various segments of broadcasting services. Any person or entity holding more than 20% equity in a HITS licence shall not hold more than 20% equity in any other broadcasting company and/or DTH and vice versa.