UK set-top box maker Pace is in talks with a satellite provider to launch a new digital service in India.
The discussions are believed to be with pay-TV operator Tata Sky, a joint venture between Indian conglomerate Tata and News International-owned Star TV.
Analysts say the deal will not lead to a rush of sales of its products but bodes well for the future.
Ian Robertson of Seymour Pierce said: “While we are urging caution in terms of the direct impact, this news should serve as a reminder to the market that there are new and growing markets for the products that Pace supplies.”
The company bought US technology firm 2Wire in July to broaden its customer base beyond satellite and cable and into the rapidly expanding internet TV market.
Pace has seen sales of its boxes rocket as HD TV services have moved to the mainstream.