http://www.business-standard.com/india/news/star-to-uplink-local-channelsindia-insteadhk/367931/


STAR to uplink local channels from India, instead of HK

Ashish Sinha / New Delhi August 24, 2009, 1:37 IST

After nearly two decades of operating its entire Asian broadcasting
infrastructure from Hong Kong, STAR TV will soon shift a part of its
uplinking operations to India. This includes those of all India feeds,
from here instead of Hong Kong.

This move will make STAR India responsible for uplink and downlink of
all Indian channels instead of STAR’s Hong Kong office. So, STAR India
will have to apply for an uplink licence for its channels to the
ministry of information and broadcasting (I&B). More, experts say the
move may lead to STAR India becoming the hub for a lot of back-office
work for STAR’s Asian operations, which so far were being done from
Hong Kong. These include research work for content and technical
support, among others.

So far, STAR India has only got the landing rights (downlink
permission) for its channels in India, as the uplinking happens from
Hong Kong. For getting an uplink licence, STAR India will have to
apply afresh for both uplinking and downlinking to the I&B ministry, a
first for it since its inception in the early 90s.

This comes after the recent announcement made by Rupert Murdoch’s News
Corporation of dividing its Asian broadcast business into three
distinct entities – STAR India, STAR Greater China and Fox
International Channels. News Corp has already initiated the process of
scaling down its operations in Hong Kong and the restructuring
exercise may be complete by December.

For STAR India, it means channels like STAR Plus, and the India feed
of English channels like STAR Movies, STAR World and the various
regional channels will be uplinked from within the country instead of
Hong Kong. This may also result in an increase in local content on the
English channels, thereby helping STAR India expand its revenue
stream, sources say. Currently, STAR India is the most profitable arm
among News Corp’s Asian operations, generating revenues of over $440
million (over Rs 2,200 crore).

So far, only India-centric channels will be shifted from Hong Kong to
India for uplink, company sources say. However, once STAR India
establishes an uplink hub in the country, it may be used for uplinking
other channels too, sources say.

Uplink of television channels involves beaming these from an earth
station to a satellite for distribution over a particular geographical
area. Uplink involves seeking several permissions from the country of
origin. In India, the various clauses laid down in the uplinking
licensing conditions include maintaining the foreign investments in
the local company under 49 per cent for non-news channels, home
ministry clearances for key executives on the board and maintaining
minimum net worth criteria, among others.

For STAR, this move may lead to savings of 20-25 per cent of the
operational costs. STAR is estimated to spend over $20 million
annually on uplink of over 35 channels from Hong Kong, including
channels for China, India, Malaysia, Taiwan and Hong Kong, among other
countries. “India will become a complete independent business entity,
post the restructuring exercise. Subject to regulatory and government
approvals, we will relocate uplinking of our channels to India from
Hong Kong. This may lead to creation of some jobs, too,” Uday Shankar,
chief executive of STAR India told Business Standard.

Industry sources say STAR TV India may form a separate division to
undertake the uplinking of channels, a move that could lead to
additional creation of up to 200 jobs for STAR India, that currently
employs around 800 people.


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