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According to sources, the surveyor will be selected by the information
and broadcasting ministry and is likely to begin work by the weekend
or early next week. The names of agencies which cropped up during
the over three - hour meeting today include- PriceWaterhouse Coopers,
ORG-Marg and a Tata company, according to task force sources.
The survey, having a specified time frame of four-five days, would
be carried out in Delhi and Kolkata.
The finance ministry earlier had come to the conclusion that the
cost of the basic tier of free to air channels in a post CAS regime
would be Rs 45.90 (exclusive of local and entertainment taxes).
The cable operators in the task force and elsewhere had dubbed
the figure "too low" and disputed the parameters used to arrive
at this cost, which were said to be "far from the ground reality."
For example, one of the most contentious parameters was a cable
network's coverage area where the finance ministry used the parameter
of a radius of 7.5 km with 32,000-odd homes passed through by the
cable. These parameters were used to determine the cost incurred
by a cable operator in providing the cable service.
The cable fraternity, in turn claims, that no individual cable
network in India covers over 30,000 cable TV homes and that the
radius should be 4.8 km.
At today's meeting, where most of the time was taken up by discussions
on this topic, the government representative, who heads the panel,
is also said to have asked the broadcasters whether they are ready
with the maximum retail price of pay channels in their respective
bouquet and whether there is a chance of any pay channel turning
free to air.
According to sources, the broadcasters' lobby said that individual
companies are internally studying the situation and would come up
with the relevant information soon.
Meanwhile, the cable operators across the country, especially those
in the four metros where CAS is being sought to be implemented in
the first phase, are trying to put up a semblance of unity as they
feel threatened that a low price of the basic tier would ultimately
kill their business.
According to Rakesh Dutta, a task force member and a Delhi cable
operator, a resolution, signed by 1,500-odd cable ops from cities
like Delhi, Chennai, Mumbai and Bangalore and Kolkata states that
cable operators would be unable to carry on their business if the
price of the basic tier is below their cost of operation.
The relevant part of the resolution, submitted to the government
today, reads, "We unanimously declare we shall be unable to carry
on our business at a price which is below our cost of operation,
which stands at Rs. 180 per month (per subscriber), as already submitted
(earlier) to the members of the task force."
The chairman of the task force today criticised the agitation,
including dharnas and press conferences (held yesterday under
the aegis of the Cable Operators United Front in Delhi), being organised
by a section of cable operators having so-called allegiance to a
particular MSO, saying that shouting slogans against the task force
or the government would not solve any problem.
Still, it is learnt that the venue of today's task force meeting
was besieged by a sizeable number of cable operators who are not
members of the task force, but want their voice to be heard and
also get first hand information of what transpired behind closed
doors.
The next meeting of the task force would depend on the outside
agency's report and feedback on various aspects of cable business.
(1$ =Rs 47.73 )
See related story :
Finance
ministry moots Rs 46 FTA price
CAS
task force formed; to meet 7 Feb
Basic
tier task force compositon to be fixed today
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