| Interview with Siticable head Jawahar Goel |
| |
|
"There
is a conscious effort on the part of vested interests to misguide
the consumers"
-
Jawahar
Goel
|
 |
|
| Posted on 16 April 2003 |
|
His
reputation as a street fighter precedes him. His style of functioning
may be debatable. His spoken language is not as savvy as those who
sit in corporate houses' air-conditioned rooms and travel in snazzy
cars. But these things don't worry him. And why should it?
When media czar Subhash Chandra wanted to bring Zee Telefilms back
on track last year, it was Jawahar he turned to, along with a few
other chosen people. Because his street smartness and debatable
style of functioning are what were needed to re-establish Zee as
the numero uno in India's cutthroat world of media business, Chandra
thought.
Jawahar
Goel, one of Chandra's three brothers, knows all this, but is not
ready to take his place under the sun. For him, he is a small fry
in a big business and is only there to protect his family's business
interests. Goel also doesn't believe in publicity, if occasional
quotes in the media are discounted. Entrusted with SitiCable, the
cable arm of India's largest vertically integrated media company
Zee Telefilms, Goel has slowly, but surely, managed to consolidate
its position and embark on new projects with least fuss.
There is a tale that a former chief executive of Star India has
to tell about Goel that bears testimony to the man's skills. During
the days when the Rupert Murdoch-controlled Star and Zee were business
partners in the biggest cable and television market in Asia, India
(China had not opened up by then), at a board meeting Jawahar Goel
(then also heading SitiCable, before he was shunted out to other
businesses of Chandra) had the 'goras' (white men) totally stumped
because of his language and stridency.
But
recount this to Goel and he'll smile. He is most likely to shoot
back that such tales were a figment of media's imagination as none
of the media guys were present during such meetings.
In
this rare interview with indiantelevision.com's Anjan
Mitra,
Jawahar Goel discusses various aspects of the controversial implementation
of conditional access that may redraw the rules of the cable industry,
which is estimated to be anywhere between Rs 50 billion to over
Rs 100 billion. While dwelling on CAS, Goel also does some competition
baiting with gay abandon. Excerpts:
|
| |
|
How will you describe the present CAS scenario?
I
think everbody, at least most of us, are preparing for the implementation
of CAS in the country. But I also feel that a section of the industry
is not ready to accept the changes and is trying to wriggle out
of everything or get the implementation of CAS delayed. Such people
must accept the changes that are happening. The positive side of
CAS is that there is a (government-piloted) task force that is keeping
watch over everybody and the implementation process.
|
| |
|
Do you really feel that the task force would be able to effectively
monitor the implementation of CAS?
I
have no doubt about that. The task force has been formed after Parliament
gave its assent to CAS and the panel is carrying out its constitutional
work. I don't think anybody should doubt the effectiveness of the
task force, which anyway has representation from all sections of
the industry.
|
| |
|
Going
by the division in the task force, do you feel that the 14 July
deadline for CAS rollout would be met?
Division?
What division?
|
| |
|
There
have been serious voices of dissent on the price of basic tier of
cable service, for example. Isn't that proof enough of division?
Arre
bhai, give me one instance where there are no differences of opinion
when it concerns matters as important as CAS.
|
| |
|
| "A
section of the industry is not ready to accept the changes and is
trying to wriggle out of everything or get the implementation of CAS
delayed. Such people must accept the changes that are happening." |
|
| |
|
How optimistic are you of meeting the deadline?
The
set-top boxes (STBs) would be made available to the consumer when
they need it. But the rest depends on the preparedness of others,
the whole industry, including the government. Everybody in the industry
is trying to do his bit. I am optimistic about the deadline.
|
| |
|
One hears that lack of ready availability of boxes was discussed
in a task force meeting. How far is this correct?
I
haven't heard anything of that sort and I do attend the task force
meetings pretty regularly.
|
| |
|
The cable operators especially are upset with the pricing of the
basic tier and have threatened to go on a dharna. What happens then
to the CAS rollout?
The
pricing of the basic tier was done by the government (the finance
ministry, to be precise) after taking various aspects into consideration.
The costing committee went into the issue and came up with a figure.
A majority of the task force members don't have any problems with
the price of Rs 71.33 ($1 = Rs 47.36) for the basic tier as the
task force has suggested to the government.
|
| |
|
You
are trying to evade the question as to how come a major constituent
of the industry, the cable ops, are feeling low because of the low
price of the basic tier? Isn't their agitation justified?
The
government has its own way of functioning and the pricing was arrived
at based on certain parameters. I would agree that the parameters
were not very clear, but you cannot do such things and also keep
everybody happy. The cable industry has a fair amount of representation
on the task force and has the right to object as it has done so
also. Their suggestions were looked into and the government then
revised the rates upwards from the earlier Rs 45.90.
|
| |
|
| "The
pricing was arrived at based on certain parameters. I would agree
that the parameters were not very clear, but you cannot do such things
and also keep everybody happy." |
|
| |
|
You are speaking like a true representative of a broadcasting company.
A broadcaster would like the basic tier to be low, so that pay channels
can be accommodated within the budget of an average consumer.
Of
course, the broadcasters would like the cost of the free to air
channels to be low. Who's denying that? But to oversee such issues
so that everybody gets justice, arbitrators are appointed and in
this case the task force is also the arbitrator. It has done some
good work until now. But as said earlier, you cannot make everybody
happy and still bring in change.
|
| |
|
How ready is SitiCable for implementing CAS?
Without
divulging anything to competition, I'd say we're pretty much on
track. Whenever the consumers start demanding the boxes, they'll
get it.
|
| |
|
Though
SitiCable may be ready, but are your franchisees or joint venture
partners in the cable business ready for CAS?
That's
why, I said a lot will depend on the preparedness of the whole industry
and not on any individual segment of the industry. I presume that
cable operators are preparing for life after CAS. And to solve a
bit of their financial problem we have this project called headend
in the sky or HITS, which will reduce the investment of a cable
operator for CAS.
|
| |
|
Has SitiCable placed the orders for the STBs?
Yes
we have. When the market is ready, the boxes would be made available.
Be assured of that.
|
| |
 |
"I'd
say we're pretty much on track. Whenever the consumers start
demanding the boxes, they'll get it." |
|
| |
|
How many boxes have you ordered for, considering in the four metros
there are about 6 million cable subscribers?
Without
going into specifics, there would be adequate number of boxes from
SitiCable in the market.
|
| |
|
Can you be more specific on the number and what would be the cost
of the box?
If
you insist, SitiCable would have access to about 500,000 boxes and
that's the target only for the first four months. A digital STB
being brought in by us would cost $ 45.
|
| |
|
Do
you really feel that a consumer would invest in a box?
At
the moment the consumer is getting his cable service, so he's not
bothered about it. When he'll stop receiving the service, he'll
feel the need for a box and then would come the demand for the STBs.
I feel, initially, the demand for boxes would be low, especially
before 14 July. As days pass, and CAS rollout happens, the demand
for boxes would get more aggressive.
|
| |
|
Has SitiCable placed the orders for the STBs?
Yes
we have. When the market is ready, the boxes would be made available.
Be assured of that.
|
| |
|
But
don't you feel that the average consumer needs to educated on CAS?
Of
course, he needs to be. There are people who are doing that. Still,
I feel all this education should be in the right direction. You
should not start misleading consumers in the name of education.
Tell the consumer the truth.
|
| |
|
You feel some people in the industry are misleading the consumers
on CAS?
I
think so. There is a conscious effort on the part of vested interests
to misguide the consumers with an effort that the average consumer
becomes hostile.
|
| |
|
| "SitiCable
would have access to about 500,000 boxes and that's the target only
for the first four months. A digital STB being brought in by us would
cost $ 45" |
|
| |
|
Why don't you cite some examples of this 'misguidance'?
The
truth is there for everybody to see on some channels. If the consumer
is told that a STB (in a post CAS regime) would cost up to Rs 7,000
which is about $ 100, then it's misleading the consumer. These people
are trying to create doubts in the minds of people about CAS, about
the government decision about everything about CAS. That is not
done.
|
| |
|
Is that why SitiCable or its parent company Zee not participating
in the education process?
We
cannot be party to something that would amount to misleading the
cable consumer.
|
| |
|
Will
your company undertake some exercise in educating the consumer?
(Laughs)
That is why I am giving this interview. So that you can disseminate
our views on CAS that would be showing the right path to the consumers
and the industry.
But
what I cannot understand is the reason for sowing doubts in the
minds of consumers. The government has approved the whole process.
Before Parliament okayed CAS, the industry's viewpoint had been
taken. After that a task force has been formed that has representation
from all segments, including consumer activists. I don't understand
why should anybody complain now?
|
| |
|
So, you mean some broadcasters are misleading the consumers? Can
you name them?
Though
I would not like to name anybody, but I think some misguidance is
on. Tell me, where in the world manufactures of STBs are quoting
a price of Rs 7,000 per box? Especially when it is told to them
that India boasts of 40 million cable homes and the number is growing.
All such manufacturers see business in volume and are quoting low
prices.
|
| |
|
So, why don't you agree there is division in the industry, which
does not have an united front?
As
I said, you cannot make everybody happy.
|
| |
|
There
seems to be some confusion regarding the pricing of the channels
in a post CAS regime that I thought was all about doing away with
bouquet system. Now people are suggesting newer bouquets and tiering
of the cable service. What are your comments?
That's
where vested interests come in. Now if tiering of cable service
is done, then a consumer will have to buy the basic tier of FTA
channels, the basic pay tier, the premium pay tier and a tier separately
for movies. If he is a sports lover, then he'd have to buy the sports
channel over and above these. The consumer will have to pay more
and will become unhappy. If the consumer is unhappy, the cable operator
would be unhappy, which, in turn, will make MSOs and broadcasters
unhappy. TIERs of cable service would bring TEARS to the eyes of
everybody.
|
| |
|
Why does a consumer have to buy various tiers to get sports channels?
Can't he choose and buy?
No
he cannot. Or that is what is being sought to be done through tiering.
|
| |
|
But the government said CAS is all about a la carte offering of
channels. This way the consumer would feel cheated, contrary to
what had been promised by the government?
A
la carte price would be more costly per channel. If a consumer wishes
to take the basic tier and some pay channels, then the individual
price of those pay channels would be quoted very high.
|
|
|
| "TIERs
of cable service would bring TEARS to the eyes of everybody" |
 |
|
| |
|
But isn't this taking the consumer for a ride. Especially since
CAS was brought about in the name of bringing choice to the consumer
at affordable prices?
Let
us see how things unfold in the future.
|
| |
|
How much is SitiCable investing in the implementation of CAS and
HITS ?
There
you go again. The investment that is necessary would be made. But
I cannot reveal exact investment figures as it would not be in our
business interests.
|
| |
|
Lastly, if the implementation of CAS gets delayed, who would stand
to gain - the broadcasters, the cable ops, MSOs or the consumers?
All
those who have committed investments (related to CAS equipment)
would certainly not gain. All the effort being put in by the government
in man hours spent on making the policy on CAS and other meetings
too would go waste. Consumers too may not get the relief promised
to them. So who gains (if CAS rollout is delayed)? Probably those
who are misleading everybody.
|
|
|
| Click
for archives |
| |
|
|