Anil Ambani group set to enter DTH service

Mumbai: The Anil Ambani-controlled Reliance-ADA Group is all set to enter direct-to-home (DTH) service, with the government giving an in-principle approval for it, a Reliance Communications spokesman said.

The information and broadcasting ministry has issued a letter of intent (LoI) to the Reliance-ADA Group company Blue Sky Magic for the group's foray into DTH. The ministry is understood to have asked the company to complete formalities, including the bank guarantee and licence fee.

The Reliance-ADA Group had applied for a licence to enter the DTH service business after the settlement between the Ambani brothers Mukesh and Anil over ownership of the Reliance group operations, about a year ago. Sources said the Reliance-ADA group would complete the formalities by next month.

As of now, there are four service providers vying for a share of the DTH market. While government-owned broadcaster Doordarshan and the Essel group-promoted Dish TV have already established their presence, the Tata group has entered the DTH business with Tata Sky, a joint venture with Rupert Murdoch's Star group.  Reliance-ADAG's entry is expected to spice up the DTH market further.