F E A S I B I L I T Y R E P O R T

O N

C A B L E T V

Shop No. 6-A, Main Market,

G-8/2,
ABDUL-ARAB R o a d,
I S L A M A B A D.
Info-Tech Cable Network 2
Shop No. 6-A, Main Market,
G-8/2, Abdul-Arab r o a d,
I s l a m a b a d.
CONTENTS

Acknowledgment 04
History & Introduction of CATV 05
Vision, Mission & Objectives 06
Technical Feasibility 07
Economical Feasibility 12
Operational Feasibility 16
Marketing Plan 19
Future Plan 21
Organization Structure 22

Attached
Letter Head
Application Form
Billing Card
Promotional Letter

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 Acknowledgement

“Only that education deserves emphatically to be termed cultivation of the

mind which teaches young people how to begin to think”. (Mary
Wollstonecraft)

This project enhanced our innovative skills and practical knowledge of the
topic assigned to us. The report is a comprehensive note on Cable TV’s
feasibility that will help the reader to understand the core concept.

Writing a report starts with a vision, To bring that vision into reality takes
handsome efforts. We specially thank to Mr. Obaid, College Road, RWP,
who had helped us very much in completing this project successfully. We had
put great effort and sincerity to finish this project.

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Shop No. 6-A, Main Market,
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 The History of Cable Television
Cable television, formerly known as Community Antenna Television
or CATV, was born in the mountains of Pennsylvania in the late
1940’s. During this time, there were only a few television stations,
located mostly in larger cities like Philadelphia. People, who didn’t
live in a city, or in a location where signals could be received easily,
were unable to see television. John Walson, an appliance store
owner in the small town of Mahanoy City, had difficulty selling
television sets to local residents because reception in the area was
so poor.
The problem seemed to be the location of the town in a valley and
nearly 90 air miles from the Philadelphia television transmitters.
Naturally, the signals could not pass through the mountain, and
clear reception was virtually impossible, except on the ridges
outside of town. To solve his problem, Mr. Walson put an antenna
on top of a large utility pole and installed it on the top of a nearby
mountain. Television signals were received, and transported over
twin lead antenna wire down to his store. Once people saw these
early results, television sales soared. It became his responsibility to
improve the picture quality by using coaxial cable and self-
manufactured “boosters” (amplifiers) to bring CATV to the homes of
customers who bought television sets. And so, cable television was
born in June 1948.
Introduction of Cable TV
Cable TV is a relay kind of center, where different channels are
received and then broadcasted through personal networks called
Cable Networks.
Coaxial cable is used for Cable TV (CATV) network. Its properties
promote high bandwidth (speed), which is needed when sending

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Shop No. 6-A, Main Market,
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high-density information (like Video). Some CATV systems also use
fiber cable. Until recent the cable was costly, there was law against
CATV bringing data and there was little demand. But as the steps
initiated by government the laws loosened up, therefore its demand
increases and in near future the cable will get cheap.
Traditionally it is believed that cable is only use for watching TV.
But it is much more than that, these cables are future information
super highways. We can do a lot of things with these cables like;
TV, Internet, News, Education, E-commerce, Marketing, on demand
movies, CD quality audio and Pay utility bill etc. These coaxial
cables will replace old telephone lines and ultimately helpful in
setting up ATM (Asynchronous Transfer Mode). One thing should be
kept in mind that Cable TV is different from Web TV.

Info-Tech Cable TV Network

Info-Tech cable TV Network will be the name of the organization; it will start its
business in Westridge. The address is:
Shop No. 6-A, Main Market,
G-8/2, Abdul-Arab r o a d,
I s l a m a b a d.

Vision
To pave the path for development of ATM (Asynchronous Transfer Mode)

Mission
To provide cable network services all over Pakistan

Objective
Our objectives are to:

 Provide unforgettable entertainment at most economical price.

 Fulfill our customer’s desire for quality product worth price.
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  Serve the society with fervor, and act as model for its uplifts.
 Contribute in development & promotion of hi-technology in the
country.
 Provide High speed, 24 Hrs Unlimited Internet Access.
 Independent ONLINE Email Address.
 CD-quality audio (1.4 Mbps).
 Real Audio radio and broadcast.
 Net-meeting Communications that enable us to share applications with
others online.

Quality Policy

We will strive to exceed customer’s expectation through continuous improvements in

quality of our products and services.

TECHNICAL FEASIBILITY

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 ON

CABLE TV

Shop No. 6-A, Main Market,

G-8/2,
ABDUL-ARAB R o a d,

I S L A M A B A D.

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Technical Feasibility
For purpose of establishing Cable Control Center, different components will be used.
These equipments are available in local market, easy to handle, maintainable and can
be upgraded just on the cost of adding new components.

Dish Antenna receives signal from the satellite. It’s output goes in Small Combiner.
The output of this Small Combiner will then goes to the Satellite Receivers. Each
channel will be tuned on its own unique receiver. Now the output of Satellite
Receivers with other inputs like; SP-TV, Decoders, Radio channels as well as the
movie played with VCR will go to Big Combiner, here all channels are Multiplexed
(FDM; Frequency Division Multiplexing). This signal is then amplified through
Distributor Amplifier and become input of Splitter. These splitters split the
multiplexed signal in required lines and then distributed to Subscribers by following
Tree Topology. If the signal has to travel more than 305 M than a Repeater will be
added.

There is also another technology called Compress Unit, which includes 5 different
units in it. These units are Receiver, Audio Combiner, Receiver Combiner, Audio
Equalizer, and Modulator. But uptill now it has no repairing facility, if some thing
will go wrong then we have to replace the whole Compress unit.

Tree Topology

The signal is distributed by using Tree Topology with the help of Splitters. At each
Splitter 3DB of signal is loss. So in order to keep signal strength, Repeater will be
used after 305 M.

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 At each Splitter 3DB
of signal is lost

The Internet Connection

Each subscriber can get Internet Facilities via cable. Our cable company provides
and manages one or more direct connections—typically a T1 or T3 circuit—to the
cable headend. The available Base Bandwidth that is not used by the TV channels and
radio will be dedicated to COMSATS connection(s).

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 Shaheen
Antenna Repeater
After 305 M
After 305 M

Distributor Amplifier

Small
Combinor
Big
Combinor

Dish Receivers VCR/DVD

Decoder

Technical Feasibility for Dish Antenna

Technology Next
In future when the present cable network will turn around and other services can be
achieved via cable then an effective Open Access solution, however, must include
following key components:

Comprehensive Security Controls

Since cable networks are a shared communications medium, data and video services
for multiple subscribers ride on the same wire. Dynamic bandwidth management
guarantees that no single ISP or its subscribers can monopolize the shared medium at
the expense of all subscribers, and it ensures that subscribers receive consistent
service in accordance with the service level they “bought and paid for”.
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Shop No. 6-A, Main Market,
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Detailed Usage Monitoring and Reporting
Comprehensive security controls ensure privacy and accountability for shared
network usage by controlling access to all network management functions. It allows
cable operators to manage overall bandwidth usage, while giving ISPs control of the
bandwidth allocated to their subscribers. In addition, shared bandwidth monitoring
and reporting capabilities provide cable operators and ISPs with the essential tools for
capacity planning, billing, and subscriber management.

Technical Facilities
The cable operator is responsible for maintaining an adequate broadband connection
to each subscriber’s home. Since subscribers connect their modems directly to the
cable operator system, which could impact the operator’s core video services, the
operator has the option of disabling individual subscribers via CMTS. Typically this
would only happen in the case of a subscriber tampering with the cable system for
illegal access or abusive practices such as running prohibited protocols or services on
the cable network that are in direct violation of a subscriber’s cable service
agreement.
Subscriber management is primarily the responsibility of the ISP. Each participating
ISP has complete control of its subscribers and their service configurations, such as
mail servers, news servers, web hosting servers, chat servers, and specialized content
servers. The ISP controls the access to these services through passwords and other
security arrangements much like they do with dial-up service.

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Shop No. 6-A, Main Market,
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 ECONOMIC FEASIBILITY

ON

CABLE TV

Shop No. 6-A, Main Market,

G-8/2,
ABDUL-ARAB R o a d,

I S L A M A B A D.

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Shop No. 6-A, Main Market,
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I s l a m a b a d.
Economic Feasibility
Economic feasibility is of very importance. The concerned business must be able to
see the value of the investment it is pondering before committing to entire cable
system study. If long-term gains or reduction in operating cost overshadows short-
term costs, then the project should proceed any further. Keeping in view the

Economic Feasibility of Info-Tech Cable TV Network, it can be safely said that

the project will be profitable.

S.N Basis of
Description Cost %
o Estimated

1 Machinery & Equipments 275000 As Per Quotation 24.73

2 Furniture & Fixture 10000 As per Market Quotation 6.18
3 Crockery & Cutlery 6300 Estimated 2.17
4 Motor Cycle 50000 Actual Market rate 61.84
5 Contingencies 19250 5% of Total Fixed cost 4.78
6 License Fee 50000

Total Fixed Cost 410550 Total 100

Working Capital 64450
Total Project Cost 475000

Forecasted Income
Forecasted Income with comparison of equipment utilization for the period of the 5
years are given below:

Estimated Revenue

1500000

1000000

500000

0
1st Year 2nd Year 3rd Year 4th Year 5th Year

1st 2nd 3rd 4th 5th

Year Year Year Year Year

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Efficiency % 60 % 70% 80% 85% 85%
Revenue (Net) 757500 883750 1010000 1073125 1073125

Financial Plan
Financial Plan of Info-Tech Cable TV Network is as follows:

Rupee
Financial Plan
s
Owner’s Equity 300000
Loan from Financial Institutions @ 14.5% Citi Bank 175000
Total 475000

Prices of Equipments

Equipments (Single in quantity) Prices (Rs)

8 ft Dish Antenna 4800
LNB single 850
LNB double (horizontal, vertical) 1150
LNB C band 1050
Shaheen Antenna 1000
Cable RG-6 (1000 ft, 50 dB) 5500
CableRG11 (1000 ft, 40 dB) 8400
One time charges for use of PTCL Poll 10
Distributor Amplifier
Pacific- Model PDA 8636 6500
Signal Amplifier (Repeater)
Pacific- Model PDA 8635 2800
Satellite Receiver 3800
Protopia Model 950
Combinor (16 Pins) 3500
Splitter
2 way 85
4 way 180
Taps Off ½ (per 100) 150
Taps Off 1/8 (per 100) 1600
Connector RG-6 (per 100) 500
Connector RG-7 (per 100) 1000
Connector RG-11 (per 100) 2200

Type Decoder (Rs) Card (Rs)

Cinema Plus 13500 3500 (3 months)
Star Movie 25700 10000 (p.a)
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Star Sports 25700 10000 (p.a)

Selected System
We will use VHF system at Info-Tech Cable TV Network because it is more
reliable efficient and suitable for long term investment. The picture quality of VHF
system is much better than UHF.

Estimated Price Of
Type of System
Whole System
VHF Rs 275000
UHF Rs 180000

Breakeven Sales:
As per Licence requirement we are allowed to connect 1000 subscribers. Our
calculations are that with 60% efficiency level we will earn 7,57,500 in the first year.
With the increase in efficiency level it is estimated that revenues will be 10,73,125.

Calculations:

Breakeven Sales = Fixed Cost/ Contribution Margin Ratio

Fixed Cost = 4,75,000
Contribution Margin Ratio = Sales – Variable Cost / Sales
= 7,57,500-3,00,000 / 7,57,500 (3,00,000 Estimated)
= 60.4 %
Therefore
Breakeven Sales = (4,75,000/ 60.4) *100

Breakeven Sales = Rs.7,86,423

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Shop No. 6-A, Main Market,
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 OPERATIONAL FEASIBILITY

ON

CABLE TV

Shop No. 6-A, Main Market,

G-8/2,
ABDUL-ARAB R o a d,

I S L A M A B A D.

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Shop No. 6-A, Main Market,
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I s l a m a b a d.
Operational Feasibility
The organization will work under the name of Info-Tech Cable TV Network.
The Head Office/operational office will be located in the main Market Westridge.

PTA
Pakistan Telecommunication Authority is issuing licenses for cable TV in Pakistan.
The office is located in H-8. Before getting a license company has to register as a
firm, if the application is approved. License is provided for specific area. The
licensee locally purchases all the equipments and spread his personal own cable
network.

Application forms for the license can be obtained N.B.P Civic Center Islamabad by
depositing 500 pay draft in favor of PTA A/C# 24600-7. After completing all
necessary documents the application with the Rs 5000 Fee for checking is to be
deposited in the same account with N.B.P.
The concern authority is:

Sajjad Latif Awan

Director Licensing
CTRL Building H9/4
Ph: 051-456374, Fax 051-449913
www.pta.gov.pk

Services Marketing Environment & Analysis

Info-Tech Cable Network had carried out a special survey on CATV Market
analysis only for the purposes of accessing the customer potential. The survey teams
have evaluated on the bases of attitude, ability to pay choices, cultural &
environmental etc. The result plotted projected on the basis of percentage growth that
has been compiled, it is now available in this document.

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Operational Plans:
The area that the organization has selected for cable operations is Westridge,
Peshawar Road, Rawalpindi. It was selected keeping in view the:
 The purchasing power of the people.
 The demand for cable connection is higher in this area.
 The location and geographical distribution of this area makes installation of
cables and equipment easy.
 There is very nominal competition.

Subscribers have to pay the initial installation charges of Rs.1500 (for two
connections in one house Rs.1800). For first three months, fee is Rs.200 and
afterwards Rs.300. The Internet service will be provided with extra fee of Rs.100 and
the ‘COMSATS’ connection(s) will be used due to its speedy Internet access and high
byes in/out rate.

The firm has distributed 500 forms in the area and advertised through banners and
pamphlets. People gave the positive response and the firm received 396 forms. It was
forecasted by the organization that out of 500 the 87% connections would result in
profits.

Coaxial cables (RG-11) are of magnetic type and the signal gets weaker or distorted
due to other cables under ground i.e. telephone lines and electricity cables in some
areas. The connection between satellite dishes and compress units will be done
through cable RG-6. Same cable will be used for the input of Combiner, Splitter and
Amplifier. The main trunk cable i.e. RG-11 will be used through PTCL poles (on
payment of Rs 10 each) between the streets. From thereon connections between
houses will be done by RG-7. Taps will be used outside the houses, as terminators
used in Computer Networks.

For Internet connection the requirements are

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Shop No. 6-A, Main Market,
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 Cable Modem
 Line Card
 BNC Connector

Marketing Plan
As for marketing plan of our project we have tried to do our best in such a short time.
We believe that our efforts will not go in vain. And the success of this project is
definite, whether now or later as it is an era of digital media.

Key Elements of Marketing Plan

Market Research:
Marketing Research is the foundation of a marketing strategy for any firm or
business. Here we decide which sector of the market to cater to and also carry out
research on that particular segment in order to know their demands. The goal here is
to provide quality service even if it a small segment of the big market. We are not
trying to pursue subscriptions of a large number of customers but to offer them
excellent services.

Development of Sales
We have prepared our advertisements, sales literature, response letters, follow-up
system, forms, subscription procedures (on and offline both), payment options and
customer services facilities. Banners, flyers, advertisements in the local newspapers,
email facility for our customers etc. as per our plan we will keep our customers
informed via e-mail, about the forth coming movies that they can watch at our offered
channels, about their payments, and also send them weekly T.V guide. The guide
would be free of cost for first four weeks.

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• Quality Services
Services rendered by “InfoTech” would be one of the best cable services available
in town. There are 20 channels provision with particular channels for sports,
movies, music, cartoons and channels for special children as well, 24hr news channel,
educational assistance for illiterates etc.

Promotion

As the promotion strategies we have design Banners, Posters, Pamphlets and sales
promotion letters. Posters and banners are placed in university campus on different
six notice boards. There are four different offers for customers, which are; “Normal
offer, Silver offer, Golden offer and Platinum offer. (brochures attached).

People

Incase there is a need of further information or assistance the subscribers can contact
us by mail. There will be a separate section of e-mail; that will help people fix their
technical problems related to our services or connectivity instantly. Two-way
communication can help in building relationships with customers and result in more
closed set Targets. Customers are more than welcome to send us their suggestions
and comments.

Website
Info-Tech has also developed its website. Customers can download subscription
forms or can submit the form online. URL of website is:
www.infotech.com

Maintenance & Customer Care

We would be catering to the needs of experienced, highly trained staff that take pride
in customer satisfaction to meet Cable TV service and repair needs. Twenty-four hour
maintenance staffing supports Programming and maintaining a substantial on-site

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inventory of spare parts and maintenance materials will be additional help so failed
equipment can be quickly restored to service.

Particular attention will be given to ensure that each employee has the level of skills

needed to properly handle task assigned. To provide this level of competence, Info-

Tech Cable Network plans to hire individuals who would have a good working
attitude and understand the need for quality performance, reliability and excellent
customer service.

The setting up of this network requires a small manpower and it is decided that 1
CEO, 2 Managers (Technical and Finance), 1 Officer (Procurement & Purchase), 2
Technical Officers and 2 Technical Helpers are sufficient to start the operations.

FUTURE

Condition being that the business expands and is profitable:

As the business expands with the passage of time we wish to improve our services.
Our future tasks will include the following:

• Expand our network services to other areas in Rawalpindi, as well as the number
of channels and also add the ones that are more in demand.
• Improve quality of our service by installing the most advanced technology that
can be made available for the people of Pakistan.
• Play movies on demand (Like Pay-Per view).

New packages or offers may be introduced to attract more people to opt for our
services.

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 ORGANIZATIONAL STRUCTURE
Info-Tech Cable TV Network
Shop No. 6-A, Main Market,
Westridge, Peshawar Road,
Rawalpindi.

CEO
CEO

Technical
Technical Manager
Manager Finance
Finance Manager
Manager

Technical
Technical Officer
Officer
Officer Procurement
& Purchase

Technical Technical
Helper Helper

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Shop No. 6-A, Main Market,
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 ORGANIZATIONAL STRUCTURE
Info-Tech Cable TV Network,
Shop No. 6-A,Westridge, Peshawar Road,
Rawalpindi.

CEO CH. MAZHAR HUSSAIN

Technical Manager KASHIF NAVEED
Finance Manager IMRAN SAMAD
Officer Procurement RIZWAN HASSAN
& Purchase
Technical Officers MOHSIN ALI &
SALMAN AHMED

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