The IPTV Revolution by MTNL

Chancing upon NDTV Profit this morning, I saw a special feature on MTNL's latest offering (to get back at the telecom mega-giants really) - the IPTV.
Apparently, its a service backed by fibre optics providing television, internet and telephony - all in the same line. It offers exciting features like time-view T.V. which is the ultimate answer to perhaps a VCR. As the claims go, the MTNL server is capable of recording over a million hours of telecast - meaning a whole 30 days store of perhaps the 100 channels they currently have. So one can go back to any date in the past month and see any programme from any timeslot they chose, eliminating the need for VCR's or even to stay back home to watch your favorite show.
The Video on Demand service seems sparkling gold as well. As the interview revealed, watching a movie on the VoD will be as cheap as Rs.5 compared to the Rs.30 the DTH service usually charges.
The price for this amazing service will range from Rs.160 - Rs.950 - which is great, because usually the internet service alone costs more than that - leave aside the telephone and the DTH/Cable service.
The only downside to this right now, perhaps, is that this service is limited to cities where MTNL has its reach - meaning primarily Delhi and Mumbai. I wonder how Zee and Tata are going to retaliate to that!