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We are grateful to The Hon'ble Telecom Regulatory Authority of
India for giving us the opportunity to express our views related
to issues raised in aforesaid consultation note (no.3 of 2004).
We represent the views of the cable service providers who have on
their own individual and private investment contributed in the setting
up of the cable industry without any governmental aid.
Before responding to the said issues and giving any suggestion,
we feel important to mention in brief the conditions prevailing
in the cable industry, which necessitates the effective implementing
of CAS after regulating the pay TV broadcasters.
WHY CAS IS REQUIRED
The pay channel Broadcasters increased the rates of TV Channels,
within two years by more than 400%. As of August 2002 the total
rate of bouquet of pay channels was Rs. 219.50 (Rupees Two Hundred
Nineteen and Fifty paisa only) per subscriber per month. The cable
service providers pleaded that the subscribers are not willing to
pay the full amount for Pay Channels, since that they do not watch
all the pay channels hence why should they pay Rs. 219.50 for pay
channels plus networking overheads, delivery cost, basic cable service
charges and taxes to the cable service providers amounting to Rs.
360/- (Rupees Three Hundred Sixty only) P.M/ Subscribers.
The pay channels were arbitrarily increasing the subscription
rate and forcing the Cable TV service providers to pay for subscriber's
base than they actually have, almost every three months. The pay
channel rates have increased by over 1200% in last five years. In
the year 2003,January the Star TV and ESPN Star Sports announced
an increase of another 50% in their subscription rates.
There was no price regulation from the government at all. Encouraged
by the orphan like treatment of the Cable TV service providers,
by the Indian government, the foreign based pay channels exceeded
limits of abusive domination over the Indian Cable TV industry.
The pay channels continuously raised the bogey of under-declaration
of subscribers' base by the Cable TV operators, yet they were the
ones, who were and are still trying their best to stall the implementation
of the mandatory conditional access system for the pay TV channels.
This system would ensure 100% complete declaration of number of
subscriber watching these pay TV channels of these foreign broadcasters
and will also eliminate and prohibit unauthorized screening of pirated
films by Cable TV networks.
Pay Channels were also not willing to link the subscription payments
to the TRP rating, or agree to Conditional access system, to avoid
accountability to the public for the quality and acceptability of
their contents. Payments for watching pay TV channels are linked
to viewer ship, which would be possible only by deploying conditional
access system as is done world wide. In the absence of Conditional
Access Systems (CAS), Television Rating Points (TRP) is the best
possible measure of assessing and determining a channel's viewer
ship and the chargeable subscription rate on the connectivity thereon.
All viewers in all regions do not view all channels at all times
and therefore the demand to full declaration by the pay channels
is unfair, improper and unjustified. It is similar to subscribing
to The Times of India, Delhi edition but being forced to
pay for all the newspapers and publications published by the Times
of India Group irrespective of your choice, need or demand. The
consumer in Cable TV industry has no choice but to pay for channels
thrust on him by these pay TV channels and their associated agents.
Several Pay Channels are openly flaunting the Indian value system,
by showing nudity, excessive violence and corruption of the most
humane values of honestly, integrity and fidelity. However, today
the total lack of control on electronic media is now being cited
(for exploitation of natives' value systems by foreign invader's
of Indian values). The government knows this and is doing nothing
to protect the consumer and regulate these broadcasters. Conditional
Access System would solve this problem once and for all, but the
government has failed in taking measures to make mandatory the Conditional
access system for these pay TV broadcasters.
The pay channels do not pay any license fee, registration fee or
entertainment taxes. The Cable TV service providers pay all. The
pay channels that actually entertain are not asked to pay the entertainment
taxes and whereas the Cable distribution system, which has no control
over content of programs, is being taxed. Why are these pay channels
being given preferential treatment when it is well known that in
guise of buying foreign program content they are sending valuable
foreign exchange abroad? Hard-earned money of the middle and lower
class is being siphoned out of India while the Indian government
restricts itself to taxing only the consumers and the Indian Cable
TV industry.
On December 31 2002, Presidential assent was given to a key amendment
to the Cable Network (Regulation) Act 1995 mandating provision of
pay TV channels only through a set top box. Popularly known as Conditional
Access System (CAS), the amendment was brought in essentially to
empower the viewer to select and pay for only channels that he really
wished to view at a price acceptable to him.
The amendment was brought in to end an era of forced bundling of
channels by pay TV broadcasters who had indulged in frequent price
rises, forced bundling of channels and frequent switching off of
its channels to cable service providers and MSOs to extort more
and more money from an unwilling viewer base.
The CAS regulations had been brought in on the basis of exhaustive
deliberations of a multi dimensional task force consisting of consumer
groups, broadcasters, cable service providers and multi system operators
which unanimously recommended the bifurcation of TV channels into
free to air channels (FTA) basic tier and pay TV channels.
WHY PAY CHANNEL BROADCASTERS ARE AGAINST IMPLEMENTATION OF CAS
A high-voltage media campaign by a strong lobby of pay TV broadcasters
against the Conditional Access System (CAS) was launched, designed
to obstruct the implementation of CAS. This attempt was to raise
public anger against the CAS mandated by the Indian Parliament that
was designed to regulate the cable TV industry in the interest of
its consumers.
The CAS regime is threatening the pay TV broadcaster's advertising
revenues in the short run, as it will expose the true extent of
their viewer-ship to the advertisers. It is also threatening the
lucrative pay-TV subscriber revenues, which these broadcasters are
virtually 'extorting' from the Cable service providers on most unreasonable
terms.
For example, channels have been 'bundled' into bouquets of channels
and the Cable service providers and the consumers have to buy all
or nothing. As of January 03, the Star bouquet consisting of 8 channels
is priced at Rs.60/- per subscriber. The Sony discovery bouquet
consisting of 8 channels is priced at Rs.55/- and the Zee turner
bouquet consisting of 16 channels is priced at Rs.55/- per customer.
ESPN-Star Sports bouquet of two channels is priced at Rs.32/- per
subscriber. Other bouquet of Pay channels distributed by Modi Entertainment
Network is priced at Rs.27/-and B4U at Rs.10/- Total of all these
comes to Rs.240/-.(Per subscriber per month)
To this, one needs to add the entertainment tax and service tax
being charged by the State and Central Government on an average
comes to Rs.40/-. After accounting for the operating expenditure
of the Cable service provider, copyright charges and collection
charges the total cost of service amount to around Rs.460/-. The
average subscription charge for Cable TV in the four Metros is in
the region of Rs.175/- to Rs.275/- inclusive of all taxes. This
results in a totally losing proposition for the Cable service provider,
which is being subsidized by the service provider who understands
the market and how much a consumer can afford to pay for cable TV
service. The broadcasters argue that the operators under-declare
their subscriber numbers whereas it is the same broadcaster owned
MSOs that highly under declares subscriber base to make there own
business model viable and earn unaccounted profit margins.
This mounting attack on the CAS proposal is well orchestrated by
a powerful lobby of pay TV channels like Star, Sony, ESPN-Star Sports
and others. These foreign-owned broadcasters have immense clout
in the media because of cross-ownership between the entertainment
channels and the news channels. They command immediate attention
in the print media because of vast amounts of money the broadcasters
spend on advertising in newspapers and magazines.
These pay TV broadcasters can hardly be expected to protect the
interest of the common Indian consumers. In whatever devious manner
these broadcasters try to camouflage it, the CAS dispute is not
about public interest. It is about control, private control of airwaves
in India's entertainment space and also over the Cable TV distribution
system.
Public memory is short and the broadcasters are taking advantage
of this. They need to be publicly reminded of the 1995 judgment
of the Supreme Court of India, where the Court has held that "the
airwaves are public property. The use has to be controlled and regulated
by an independent autonomous public authority in the interest of
the public and prevent the invasion of their (people's) rights".
The attack on the GoI's proposal for introduction of CAS was being
done under the guise of helping the consumer. The common man is
being frightened by saying that they would have to pay much higher
subscriptions if CAS was to be introduced. The reality is quite
different. After CAS, the consumer will have a choice of deciding
which of the pay channels he wishes to watch and pay extra for after
subscribing to the basic cable TV service {consisting of minimum
of 30 FTA channels}
Further a bogey was raised on the channels itself "that the
Digital Set-Top-Box (a device to regulate Pay TV at the consumer's
premises) would cost Rs 7, 000/- which is false as the cost would
not exceed Rs 4000. This totally ignores the fact that analogue
boxes would cost much less than Rs 2700. If the total number of
pay channels is about 60. In reality, the consumer would have a
choice such as renting the same, buying it on hire purchase, buying
it outright; depending on each one's financial capacity. "Those
too only if he wishes to subscribe to niche pay TV channels".
The Set-Top-Box is only an attachment to enable him to choose and
pay for premium channels that he chooses to watch.
The orchestrated criticism of CAS, using the services of pliable
editors, Members of Parliament, Consumer Action Group, a Media Research
Agency from Hong Kong (Home of Star), a Rating Agency in India which
feel threatened by the CAS regime, etc., were being used in a spate
of misinformation in the Indian print media in order to save the
pay broadcasters from losing advertisement and pay revenues.
These broadcasters know fully well that CAS is the only acceptable
method of running Pay TV services in other countries, particularly
in the West. They submit to the discipline in those jurisdictions
without murmur. In India, they are behaving like colonialists by
telling the 'natives' what to do and to pay up without asking any
questions for their services. If the GOI succumbs to this pressure,
it will ensure the demise of the independent Cable TV operation
in India and the control of the same will pass into the hands of
these pay TV broadcasters who have shown their clout in manipulating
news to suit the agenda of their Western masters.
Due to lack of standard regulations, absence of any regulatory
authority and above all the unquestioned and abusive monopoly of
pay channel broadcasters and their final onslaught to actively invade
the ground cable distribution has sounded the death knell of independent
cable service providers. Now in addition to broadcasting signals
from abroad, the foreign Pay channels have also set up their agents
on the Indian soil who operate Cable TV distribution networks. These
agents act on the dictate of these foreign pay TV broadcasters and
these collaborations have resulted in vertical monopoly. These foreign
pay TV channels through their joint venture Cable TV networks have
usurped the power of the Indian government of controlling and regulating
the distribution of signals of the pay TV channel in India at the
cost of consumers and still not in consumer interest.
These pay TV broadcasters have also gradually spread their tentacles
into the Cable TV distribution business in India by buying out substantial
chunks of Cable distribution networks in major cities like Mumbai,
Delhi, Bangalore, Hyderabad and Chennai, etc. {TRP Cities} These
broadcasters are now trying to gain domination, both of TV content
as well as the distribution activity of Cable TV. Their clear intention
is to create a vertical monopoly that benefits their vested interest.
Till the time basic guidelines, terms and regulations on issues
related to conditional access system and day to day functioning
of the industry are being defined, issues like, pay TV price regulation,
unbundling of bouquets, content regulation, must provide and must
carry content, and above all cross media restriction cannot be neglected.
In a large democracy like ours, pay channel broadcasters have been
permitted to control the print media by way of advertisements to
them and have directly come into ground distribution. With launch
of DTH, pay channel broadcasters will have the capacity of transmitting
directly to any desiring viewer in this country. There are no cross
media restrictions on the pay channel broadcasters and this becomes
a sensitive issue and a matter of national concern, when we understand
and learn that the signals of the pay channel broadcaster originates
from abroad and outside the territorial, legislative jurisdiction.
One single wrong and unwanted broadcast from abroad can have far
reaching implications for the unity of our country. Cross media
restrictions are important to check the hold of pay channel broadcasters
over cable distribution, DTH, print media and other delivery mediums.
The independent Multi-System Operators and medium and small Cable
service providers in different towns and cities of India are being
squeezed by broadcasters like Star TV, Sony, Zee and ESPN star sports
who want to control and dominate the Cable distribution business
as well. These Pay TV broadcasters have formed a cartel and are
denying access/ switching off Cable service providers on the pretext
of non-payment of their ever-increasing pay channel charges or under
declaration knowing fully well that the Cable service providers
are losing money heavily in order to meet the demands of these pay
channels but are still continuing to provide the entertainment to
the masses at an affordable price.
Today, the cable service providers have been forced either to join
the ground distribution company of pay channel broadcasters or close
down business.
The above are certain broad concerns to which we request TRAI to
look into and consider while laying down regulations for broadcasting
and cable.
Further, we have endeavored to respond to various issues raised
under section II of the above mentioned Consultation Note as also
give some suggestions as under:-
1. Till date the step taken has been to fix the price/ rate of
free to air channel [basic cable service]. The same has been done
arbitrarily and without taking into consideration the actual cost
and expenses incurred by the cable service providers. The free to
air (basic service charges needs to be revised to minimum Rs175
per month per subscriber "otherwise a low and unreasonable
basic service charge will result in deficiency of service to the
end consumer"
2. The pricing of the pay channels or ceiling rates for pay channels
has been left untouched. We should learn from the experiences of
Pakistan, China and others where the pricing of the pay channels
were fixed after due consultation. We are annexing herewith the
paper by which the proposed tariff for pay channels was fixed in
Pakistan. The contents therein throws light on the methodology and
the logic which should be adopted at the time of fixing of tariff
of pay channels, on bundling etc. and periodic revision of rates.
These rates once fixed by TRAI should be uniform for the CAS
and non-CAS areas same as for the rate of "Basic cable service"
there can be some variation in rates payable in metros, smaller
cities / towns and villages.
3. We strongly feel that the rates of the channels should be uniform
in CAS and non-CAS areas or otherwise there would be chaos in monthly
charges and pay channel broadcasters will continue to monopolize
and extort money from the cable service providers by arbitrarily
hiking subscription rates. There is continued direction required
for freezing the rates in non-CAS areas, till CAS is made operative
there. Any change in monthly cable charges in CAS or non -CAS areas
should only be permitted with the permission of TRAI which must
see there are sufficient reasons for any hike and the maximum percentage
change to be allowed at one time in Basic service charges, Pay channel
charges and applicable Taxes.
4. Cable service providers have from their own investment laid
down cables, maintain it, bear infrastructure costs for providing
cable services, pay salaries, taxes, service charges, maintain SMS,
raise individual invoices, collect subscription, maintain accounts
and upgrade technology periodically for the same. The pay channel
broadcasters must be asked to pay to cable service providers delivery
cost, carriage and margins for usage of cable distribution plant,
its maintenance, infrastructural cost and cost of collection and
billing incurred on their behalf for, on the basis of per subscriber
of the pay channel services. " Internationally the norm
is to share 50:50" as distribution and collection cost.
5. It is important that strict regulation must be laid down for
the pay channel broadcasters for stopping transmission of services/
channels to any cable service providers. It must be regulated that
any broadcaster can only stop transmission to any cable service
providers after due permission from TRAI. This regulation could
be drawn in the lines of regulation contained in the Delhi co-operative
societies Act for cancellation of membership of co-operative society.
6. In order to make any party liable for payment of compensation
or sharing of any compensation it is pertinent to find out who have
or are responsible for any omission or commission. Till date, the
pay channel broadcasters have never stood accountable and responsible
to their viewers for their own channels though they have earned
billions from them. In fact, in all the service contracts between
the pay channel broadcasters and a cable service provider, the pay
channel broadcasters have stated that they have no privity of contract
with the viewers and the consumers and they are in no manner responsible
and accountable to any third party other than the cable service
provider. Pay channel broadcasters have blatantly overlooked the
fact a common man has been watching and subscribing to pay channels
ignorant or oblivious of the arrangement between the cable service
provider and a pay channel broadcaster. They in pursuit of their
profits and to abusively dominate the cable service providers have
wrongly been treating the contracts with cable service providers
as strictly commercial contract and have ignored the public interest
attached thereto. "TRAI should also ensure that "Uniform,
balanced service contracts/ agreements are executed between the
parties"
7. Bundling of pay channels should not be allowed as a viewer thereof
losses his right of choice and often is thrust upon contents he
does not desire to watch. Individual pay channel should not cost
more than the bouquet. For pay channels bouquet pricing, the individual
channel should not be priced individually in a manner that the individual
rate of the channel exceeds unreasonable the bouquet price example:
5 channels for Rs 50 per subscriber / per month in CAS or non- CAS
area, so 1 channel cannot be Rs 25, if 4 channels are subscribed
the price should not be charged beyond Rs 40.
8. The proposed terms and conditions for sale/rental of set top
boxes and for refund of charges deemed appropriate; conditions under
which consumers may return set top boxes sold or rented to them
by service providers and ask for a refund could be as mentioned
in annexure -B. " Maximum time for refund as per the refund
policy of the service provider should be specified and adhered to"
9. The broadcaster, cable service providers and other parties in
the cable and broadcast industry can be made liable to pay compensation
individually or together depending on whose end the fault lies.
In case of interruption the broadcaster or cable service provider
or even the consumer can be responsible. However, to remove difficulty
and problems regarding disconnection/ interruption the pay channel
broadcasters must be directed to continue their services to a cable
service provider until it takes permission from TRAI. " Cable
service provider can only be in a position to compensate the consumer
if the basic service charges are reasonable/ viable [Rs. 175/ Per
month]. TRAI can issue guidelines for the permissible interruptions
in case of system outrage or permissible interruption in service
due to periodic network up gradation and maintenance being conducted
only after notifying the consumers. (Refer to our Annexure-C-"Proposed
operational standards for Service Provider" Clause-10 (2) and
(3))
10. Further, pay channel broadcaster in the past have been refusing
to provide services to cable service providers for many reasons
which has finally affected the consumer. Most Broadcasters targeting
Indian TV Audience also have their own/Joint venture Cable TV Head
End Control rooms. These Cable TV control rooms of broadcaster owned
MSO (Multi system operators) have been monopolizing the Cable TV
Market in India as "Satellite Decoders" which are required
for receiving and re-distributing Pay channels of these pay TV broadcasters
are not provided/sold to Independent Indian Entrepreneurs in the
Cable TV business, but provided to their joint venture MSO's. This
led to Independent Indian Entrepreneurs in the Cable TV business
closing down or selling away or forcibly operating as the franchisees
of such MSOs and has resulted in creation of monopoly and reduction
of options available to the consumers.
11. In favour of these monopolistic practices, the pay channel
broadcasters argue that all Independent Indian Entrepreneurs and
MSOs in the Cable TV business are under declaring connectivity &
viewer ship details. In fact, it is their own joint venture partners
who after gaining major control over ground distribution are under
declaring and earning unaccounted profit margins in connivance with
their broadcasting partners. However even after the Indian Governments
initiative to Pass a bill and make CAS- Conditional Access System
Mandatory for pay Channels; the broadcasters have been pursuing
the same monopolistic practice, and are denying to provide/sell
"Satellite Decoders" to Independent Indian Entrepreneurs
in the Cable TV business who are willing to implement CAS and provide
service to the consumers falling in the are dominated by the MSOs
such as Hathway/ Win and Siti Cable. Broadcasters sell/provide these
"pay channel receiving Satellite Decoders" for their Pay
channels either directly or through a distributor network to avoid
legal hassles. These distributors on verbal orders from the broadcasters
do not sell/provide the pay channel access device," Satellite
Decoders" and tell (only verbal, nothing in writing) the Independent
Indian Entrepreneurs in the Cable TV business to operate as a franchise
of the broadcaster owned MSO instead. This combination of Broadcasters
- Distributor - MSO all related to each other have in the past few
yeas grown in size purely using this monopolistic practice for their
growth and in the few years have grown from 0% of market share to
over 70% of Urban India's Cable Subscribers.
12. The rural Cable TV industry do not provide all pay channels
as pay channel broadcasters to maintain their profits offer (rural
bouquets/ packages) containing only popular channels in the bouquet
at lower prices compared to the bouquets made available in urban
India, However the MSO have been making inroad to rural markets
too now, and once these broadcaster owned MSO's with the help of
their locally dominant distributors get their foothold in the rural
markets by denying pay TV content and extending exclusive patronage
to chosen / favourite distributor/ operator who can guarantee them
maximum returns. If this not timely checked rural viewer will also
face onslaught of arbitrary price hike in cable TV subscription
and frequent blackouts of popular pay TV channels.
13. TRAI must now ensure the end of such Monopolistic Practice,
by either Implementation and enforcement of CAS or by way of regulating
the pricing for pay TV channels with the emphasis that the individual
pay channel should be proportionately priced as compared to the
price of bouquet which will discourage forced bundling and "bouquetization"
as practiced by the pay TV broadcasters. TRAI should ensure that
all broadcasters provide their pay TV content access device "satellite
Decoders" to any business that implements CAS irrespective
of the number of the subscribers attached to the cable network,
as CAS mandates that consumer shall pay for the content he subscribes
to watch using a addressable Set-Top-Box. Pay channel broadcasters
must be directed to provide services to all desiring cable service
providers upon fulfillment of minimum conditions, which can be finalized
by this Hon'ble TRAI. Directions should be given to the broadcasters-
both pay TV and free that they must provide services/ content to
all cable service providers. In no condition whatsoever, the
consumer should be denied any content.
14. Laying down and ensuring the standards of quality of service
to be provided by the cable operators / Multi Service Operators
/ Broadcasters and for ensuring the quality of service can be done
with the help of standards already laid by Bureau of Indian Standards;
periodic survey by committees/ commissioners appointed by TRAI.
We have drafted " Proposed Operational standards for Cable
TV Service Providers of India" - ANNEXURE-C- The said
draft contains provisions which are relevant to address various
issues touching the day to day functioning of this industry which
have not been taken into account by BIS {Bureau of India standards}
while formulating standards for the cable industry.
15. Cross media restrictions must be imposed to facilitate competition.
"Must carry" and "Must provide" content, clause
and fixing of tariff of pay channels like in Pakistan will promote
and encourage wider consumer affordable choice in the operation
of Broadcasting and Cable services so as to serve consumer interests.
Prices/ monthly basic service charges and Pay TV charges must be
fixed in the CAS, non CAS areas and also rural and remote areas;
16. Guidelines laid down by the Prasar Bharati must be followed
regarding maximum advertising time on TV channels. TRAI must differentiate
among popular pay channel content, premium pay channel content and
FTA [Free TO Air] content. Accordingly, Cap on advertisement should
be put: For reference we can take example of Prasar Bharati {Doordarshan}
where maximum 3 minutes of FCT [free commercial time] is allowed
in 30 min of program, so we can impose cap for FTA channels as same
on the lines of Prasar Bharati. For popular pay TV channels it is
automatically lower than FTA channel. On premium pay TV channels
no advertisement should be permitted at all as they are priced high
and generate enormous subscription revenue. It is pertinent to mention
that the popular pay TV channels are those which are coveted by
viewers the most and their absence or blackouts creates the most
of the hue and cry among consumers.[ e.g. STAR PLUS, ZEE TV, SONY
TV and SPORTS channels when cricket is being telecast] Premium pay
channels are those which are priced high but targeted at a selective
audience. [e.g. HBO, STAR MOVIES, AXN, Sports channel showing live
boxing, etc.] We understand that premium pay channels like HBO have
never been provided as FTA as the content they air is acquired for
telecast as pay TV, the content acquisition price is much higher
if these channels are aired in clear [FTA] mode.
17. It is requested that some sports events such as National sports
and cricket be provided in clear as FTA to the Indian Masses. {As
done in Australia} as enormous revenue is generated through sponsorships
and advertising on sports events that has no advertising or very
minimal advertising can only be popular Pay TV or Premium Pay TV.
In fact, there should not be any advertisement permitted on premium
pay TV channels. {As followed by Canadian Government} Even in non-CAS
areas advertisement should not be permitted on the pay channels.
Since the pay channels are generating crore by beaming advertisements
and sponsorships they ought to charge reasonable subscription rates
from the Indian consumers in the interest of citizens of the country
and the low per capita income. The pay channels in their pursuit
to make more profits conveniently ignore this fact.
18. The entire Hue and Cry among consumers is for Star Plus, Zee
TV, Sony TV and whenever there is popular sports or cricket event
on the sports channels. That is so b'coz people have become habitual
of watching serials, which they have been following for last few
years. There is lot of advertisement on these channels same is with
cricket events, something should be done in consumers interest to
make these channels / programs available in the basic tier. We feel
inclined to invite the attention of TRAI to the fact that popular
soap operas like Santa Barbara and The Bold & the Beautiful
are telecast and provided in the Basic cable service in USA since
they are popular and being watched for more than a decade. Unfortunately
popular soap operas here like KyunKi SAAS bhi Bahu Thi, Jassi etc,
contribute to the high TRP and viewer ship and increased advertisement
revenue for the respective pay TV broadcaster to the detriment of
the consumers/ viewers
19. All Pay broadcast channels unlinked from abroad should be licensed
like any other service provider so as to bring them in the Indian
regulatory fold.
20. Cross Media Restrictions should be imposed, for example a broadcaster's
stake should be restricted in cable or DTH or any other mode of
delivery.
21. Today DTH services are not under the realm of service tax or
entertainment tax. This must be done to create a level-playing field.
Since cable TV is a Small Scale Service & Business Enterprise,
it should be adequately protected from competing services like DTH,
broadband delivery etc. In fact, the last mile of all broadband
services should be the responsibility of cable service providers.
22. Cable TV as an industry has been created with private investment
of individuals with no support or subsidy from the Government. The
Government of India has declared it a Small Scale service &
Business Enterprise but still no help has been provided by any Government
Agency. All other industries which have been declared small scale
are protected from competition by big industries and given benefits/barriers
in form of tax holidays, subsidies etc. Some protection has to be
given to the Indian Cable TV industry.
23. The above is a brief response to the consultation note and
some pertinent suggestions for the consideration of TRAI. We strongly
feel that the time has come when the regulations in the broadcast
and cable industry urgently needs to be defined, and CAS must be
implemented or the pricing for the pay TV channels must be regulated/
fixed and also regulations regarding norms for advertisements on
pay TV channels be defined and the same are in the interest of all
the parties concerned and above all in the interest of the Indian
consumers at large.
24. At this stage, where there are almost no regulations in the
cable industry and when DTH has been launched, we feel a beginning
has been made to regulate the industry. Empowering of the Hon'ble
Telecom Regulatory Authority of India to regulate the cable industry
is a welcome and long awaited step.
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