Stalemate over India's new pay TV system continues

Wednesday, 02 July 2003, 19:30 IST
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NEW DELHI: Even as the deadline for implementation of a new pay cable TV regime is approaching fast, an impasse continues over the modalities for introduction of what is touted as a consumer-friendly system. With the government, broadcasters and service providers yet to prepare a common ground for transition to the Conditional Access System (CAS), media observers say the rollover would not be a smooth affair for consumers. The government plans to start CAS in New Delhi, Mumbai, Kolkata and Chennai on July 15, ahead of a phased nationwide implementation. But the implementation has run into rough weather for more than one reason. Under the new system, television viewers will pay for an imported set-top box, a flat rate for a group of free-to-air channels and extra for pay channels. Currently cable viewers pay a flat fee ranging from 100 to 300 per month to watch all 70-80 pay and free-to-air channels. "The implementation of CAS in the four metros has turned into a big joke. Till date there is no agreement among all the stakeholders in the industry over its introduction," said N. Bhaskar Rao, director of the Centre for Media Studies. "The deadline for introducing CAS is running out fast and yet nobody is sure how it will be implemented," Rao told IANS. "While the government says it is determined to introduce CAS from July 15, the differences between broadcasters and cable service providers are still far from resolved." Information and Broadcasting Minister Ravi Shankar Prasad held a meeting with broadcasters Monday. STAR's Peter Mukerjea and Sameer Nair, Sony's Kunal Dasgupta, Discovery's Deepak Shourie and Zee's Jawahar Goel, among others, attended the meeting. The government maintains that the consumer would not have to pay more than 200 after CAS is introduced. Analysts however say the cost of the set-top box rental and the free-to-air channels plus the tax add up to 110. In that case, having a minimum of 10 pay channels can increase the cost sharply above 200. Uncertain about the availability of set-top boxes, needed to access pay channels post-CAS, the information and broadcasting ministry now proposes to introduce CAS through a "dual feed" system. Under this, people can continue with the existing system until adequate boxes are available in the market without the threat of penal provisions in the CAS legislation while those who have opted for CAS can switchover. If the "dual feed" system is accepted by all stakeholders, those opting for CAS will be able to access pay channels only through set-top boxes at the new rates offered by broadcasters. Others can continue to watch cable television for existing rates. According to the expert, as much as 70 percent of the six million cable homes in the four metros are not expected to buy set-top boxes. "Conditional access rollout should lead to dislocation and blackouts. Without a satisfactory supply of set-top boxes we wish to protect consumer interest foremost," said Prasad. Even as the government indicated that the "dual feed" option would be actively considered, cable operators were quick to reject it saying it was not technically feasible. "The government is trying to make a fool of everybody," said Roop Sharma, president of the Cable Operators' Federation of India. "We have already invested so much money in the introduction of CAS and now it is taking about dual feed...this is not at all acceptable to us. Technologically also this system will not be feasible," she added. Cable service providers say if CAS is not implemented on July 15 they would be forced to hike the current subscription charge sharply as they have invested a huge amount on the infrastructure for the new system.
Source: IANS