MUMBAI: Reliance-Anil Dhirubhai Ambani Group‘s Bluemagic will use Measat-3 satellite and is planning to launch its direct-to-home (DTH) service in the last quarter of this year.

Reliance has signed a deal with the Indian Space Research Organisation (Isro) for using the foreign satellite from the Astro Group, a source close to the company says. Measat had made its Ku-band transponders available and Isro was studying it technically to make an internal evaluation.

Isro has in principle agreed to allow Measat offer its Ku-band transponders to Indian DTH operators, the source confirms. Reliance wants Measat‘s eight Ku-band transponders, he adds.

When contacted, Isro contract management and legal services director SB Iyer refused to comment. He had, however, told Indiantelevision earlier that the coordination with Measat was in the final stages and Isro would take a decision after a month.

Reliance‘s Bluemagic will be using MPEG-4 compression technology which will allow it to pack in more channels per transponder. While Kalanithi Maran‘s Sun Direct has gone in for the same technology, existing DTH operators Dish TV and Tata Sky have gone in for MPEG-2 compression.

Bluemagic will be using Nagravision‘s conditional access solutions and the set-top boxes (STBs) will be from multiple vendors, the source adds. Nagravision, part of the Switzerland-based Kudelski Group, is a leading player in the field of conditional access for digital TV and broadband internet.

Bluemagic is also tying up with US-based OpenTV, the provider of enabling technologies for advanced digital television services. Zee Group‘s Dish TV has also entered into a multi-year license agreement with OpenTV which enables it to deliver a variety of advanced interactive television services, including PVRs (personal video recorders), to its subscriber base.