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| indiantelevision.com's Breaking News |
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| Swaraj sets 6 month timeline for CAS
rollout |
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Indiantelevision.com
Team
(14 January 2003 1:00 pm) |
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| NEW DELHI: India's information and broadcasting
minister Sushma Swaraj today asserted that the rollout of conditional
access in the first phase should be done by 14 July, six months from
the date of notification of the amendments relating to CAS in the
Cable TV Networks (Regulation) Act, 1995. |
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In a meeting with multi-system operators and cable
operators today (reported earlier by indiantelevision.com), the minister
conveyed that the government has done its job - it is trying to get
the notification out today itself - and now it is for the industry
to respond suitably by getting its act in order.
In the meeting, attended by 20-odd people from the cable fraternity,
Swaraj also asserted that the process for acquiring hardware for the
rollout of CAS should be started, while simultaneously the costing
committee, headed by Rakesh Mohan, joint secretary (broadcasting)
in the I&B ministry, would decide the pricing of the basic tier of
free to air channels as also the minimum number of channels to be
included in the basic tier.
"The industry should start looking out for hardware and tie-up other
issues, as the costing of the basic tier of service would be finalized
simultaneously," Swaraj is reported to have told the representatives
of the MSOs and cable operators.
"The minister looked very positive and is upbeat about CAS implementation.
The industry will have to act swiftly and not indulge in dilly-dallying,"
a senior representative of an MSO told indiantelevision.com after
the meeting.
Added Vicky Chowdhry, president of National Cable & Telecom Association,
"The minister made her mind clear in no uncertain terms that by mid
July, CAS should start getting implemented in the four metros, if
not more cities - an issue which the government is examining whether
such a mandate is implementable as additional cities will mean more
set-top-boxes(STBs)."
Those who attended the meeting included representatives from Hathway,
Siti Cable, RPG, INCablenet/HTMT, Ortel and Sun Network which runs
cable networks in some cities of South India, apart from a clutch
of big independent cable operators like Rakesh Dutta and Roop Sharma.
Swaraj also assured the cable fraternity that she has petitioned the
finance minister to go in for a duty reduction on import of STB components
in his next Budget slated to be announced on February 28.
"The minister said that the government is looking at the possibility
of making the duty reductions effective much before 1 March," one
of those who attended the meeting said. However, the industry, by
and large, does not foresee this happening before the Budget.
Though the minister was in a `talking' mood, according to those who
were at the meeting, she also spent some time listening to various
issues that were brought up by the cable operators.
One cable operator is reported to have suggested that in the interim,
till CAS rollout is started, the government should mandate that the
pay channels would not increase their prices - an issue which is niggling
the cable fraternity as it fears Sony Entertainment TV may push up
its price as the days draw closer to the World Cup cricket at South
Africa.
Another cable operator is reported to have asked what happens in a
scenario where he has got his hardware in place for the rollout of
CAS and most pay channels turn free to air. Yet another person in
the meeting brought up the issue of cartelisation where broadcasters,
who also have interest in cable distribution, may give preferential
treatment to cable subscribers of their cable associate a post-CAS
regime.
Star India has a 26 per cent stake in the Rajan Raheja-controlled
Hathway, while the biggest MSO in the country Siti Cable is a subsidiary
of Zee Telefilms. To such and many other suggestions and observations,
Swaraj is understood to have said redressal can be had from other
organizations like MRTPC in case of cartelisation and preferential
treatment.
Now comes the big question: how prepared is the industry to rollout
CAS within the designated period? The industry is unanimous that initially
STBs have to be imported and brought into the country in SKD (semi-knocked
down) form to be assembled here.
"If we presume that the four metros where CAS is being sought to be
implemented in the first phase has five-odd million C&S homes, then
even if 25 per cent of this number goes in for STBs, it'd mean good
business, " a senior executive of Siti Cable said.
It is estimated that amongst the four metros, Mumbai has the highest
number of C&S homes (about 2.3 million), followed by the likes of
Delhi ( 1.2 million) and Kolkata (about one million). It has also
been pointed out that delivery of STBs could be had between six to
eight weeks from the date of placing the order. The likes of Siti
Cable and Hathway are already in buying mode, it is learnt.
See related story -
Siti
pushing HITS plan for CAS; Swaraj calls meeting with cable ops next
week
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