(26 November 2007 6:00 am)

MUMBAI: Subhash Chandra's satellite project will soon come alive. Agrani Satellite Services Ltd, promoted by Essel Group, has tied up with ProtoStar Ltd. for a satellite that would cost in the region of $200 million (around Rs 8 billion) and boost Dish TV's capacity to pack in more channels for its direct-to-home (DTH) subscribers.

The satellite will have 14 Ku-band and 12 C-band transponders. It is scheduled to launch in May 2008.

"There are other equity investors besides Essel Group. The funding has been completely tied up," Essel Group director corporate Amitabh Kumar tells Indiantelevision.com. He, however, refuses to divulge the name of the other shareholders.

The satellite, developed by ProtoStar, will launch from Kourou in French Guyana, adds Kumar.

This will be ProtoStar's first satellite. The company has already announced that it would be leasing out five C-band transponders to PlanetSky Ltd. of Limassol, Cyprus.

So how has ProtoStar leased out the C-band transponders? "We are not on lease but on ownership terms for the satellite with ProtoStar. We are interested in the Ku-band transponders. It is a joint arrangement with ProtoStar," clarifies Kumar, but refuses to give further details.

ProtoStar Ltd, a Bermuda corporation, is funded by a clutch of venture firms - New Enterprise Associates, VantagePoint Venture Partners and RedShift Ventures. The satellite services company acquires, launches and operates high-power geostationary satellites for DTH satellite television in the Asia-Pacific region.

According to Kumar, Essel Group has already approached the Indian Space Research Organization (Isro) for their approval. Isro needs to clear foreign satellites for the Indian DTH users.

With the DTH market going to be toughly fought between Tata Sky, Kalanithi Maran's Sun Direct, Anil Ambani's Reliance and Bharti's Airtel, Dish TV believes it will have a distinct advantage by owning a satellite. "It will allow us to offer more channels and add to our advantage of being an early mover," says a senior Dish TV executive.

Dish TV, Zee's demerged DTH company, has already pocketed over 2.3 million subscribers. In an aggressive marketing push to mop up more subscribers, the DTH service provider has roped in actor Shah Rukh Khan this year as its brand ambassador.