Tata Sky targets 30% savings

Rose Major

India’s Tata Sky has embarked on a cost-cutting drive in contracts with vendors and distributors which is seeing the operator target operational cost savings of 30%.

Tata Sky’s CEO Vikram Kaushik told The Hindu newspaper that the company has had a programme called Slim Fit running for 4-5 months which aims to reduce costs “drastically”. Contracts will be renegotiated and many services including subscriber installation are being outsourced.

All five of India’s DTH operators are chasing subscribers aggressively, but despite the large numbers signing up (Tata Sky now has 4 million subs, compared with Dish TV’s 5.5 million), costs and taxes remain high and profitability remains some way off.